New tech plan to improve firms' logistics

Nov 10 2009 by Peter McCusker, The Journal

BUSINESSES in North East England are being encouraged to adopt new technologies to improve their performance in logistics, thanks to a new £1.27m initiative launched by One North East.

The ‘Logistics 2’ project will provide a package of support to more than 250 mainly small and medium sized enterprises (SMEs) across the region over the next two years. It will improve business operations, such as the acquisition, storage, transportation and delivery of goods, and bring cost savings in excess of £10m.

A key element will be the provision of technical support to companies intending to make the transition to technology based logistics operations, allowing them to gain a competitive advantage.

It will include an option of focused consultancy support with introductions to logistics, in many cases leading to expert interventions and the introduction of technologies to improve efficiency.

Experts will provide direct input on logistics processes and procedures for a range of key business operations such as inventory storage and tracing and supplier management. Follow on support will focus on the implementation of technology, ensuring staff are familiar with the use of new logistics processes.

The project is being part financed by the European Regional Development Fund (ERDF) 2007-13, securing £550,000 ERDF investment through One North East to add to £722,000 of the regional development agency’s Single Programme funding.

“The logistics work we’ve already done with regional companies has concentrated on internal processes and the ability to manage and measure internal performance, including management of orders and inventory within the business,” explained One North East head of business investment Dr Simon Goon.

“But few companies are looking at external influences such as the logistics transport issues and the environmental impact of their product distribution, all of which has a knock on effect on productivity and profitability. This can be managed much more efficiently by exploiting modern logistics technologies and a number of companies have highlighted this as an area in which they need assistance and wider logistics experience.