New Technologies In Logistics

Ignacio Espinoza Valdivia, Supply Chain Manager at Westfalia Chile has 15 years of experience in logistics within national and international companies. Which also includes 12 years in managerial positions at the Beverage Division of Deutsche Post DHL (Gori Chile), number one logistics operator at global basis.

As the Gerente de Supply Chain at Westfalia Fruit, Chile, what according to you are the significant supply chain management strategies that can help companies monitor the delivery of their consignment of fresh produce and processed food products to regional and international markets?

In our industry it is especially necessary to monitor the shipments from origin to destination, as our products (fresh fruits) are perishable, where every day counts. Chile is a remote origin for fresh fruit exports, most of our destinations are between 3 and 5 weeks of transit time by ocean freight.

"In logistics, any technology that helps you save time and cost without sacrificing service is worth being considered, and the market has plenty"

Today there are various “shipping tracking platforms” at reasonable costs, which give you full visibility of the export-import logistics chain and allow you to upload the documents required. Giving access to our customers, these tools provide them visibility of their purchase orders, which can turn into a strong competitive advantage.

In addition, we must consider that in the export/ import business, time difference can make “conventional” communication difficult.

Therefore, the use of these tools should be part of the supply chain strategy.

What is your opinion on the latest advancements in logistics solutions that have the ability to make supply chain operations more efficient?

New technologies that provide full visibility throughout the journey, with relevant information and alarms, are a powerful tool to improve the level of response of our logistics. These platforms also calculate KPIs such as “On Time Arrival/Delivery” that help us to make better decisions on logistics services. In logistics, any technology that helps you save time and cost without sacrificing service is worth being considered, and the market has plenty.

What do you think are some of the new innovations in warehouse management that align fulfillment services and inventory operations with advanced storage methods that help ensure quality in food products meant for dispatch to far-off locations?

In the fresh fruit industry, the rotation of products must be fast, FIFO, and accurate. Those are the main drivers for warehousing management in this business. The idea is to work with a good WMS that helps us to reach high standards on those drivers.

Before your stint at Westfalia Fruit, what experiences empowered you to gain deep expertise in the development and implementation of tailor-made supply chain solutions for exporters, importers, and distributors and building efficient stock replenishment systems?

Most relevant experiences were (what is today) Hillibrand-Gori and SAAM Logistics.

In HG, which is a DHL Company, we developed several international logistics solutions for the wine industry. For example, in 2002 we set up a “wine consolidation center”, for Chilean and Argentinean wines, in the port of San Antonio. We brought from our operations in Italy, the latest technologies available in wine industry. A WMS with bar code reading for products, and a Track and Tracing System for shipments. At that time, it was something completely new in Chilean and Argentinean wine industry.

Then in 2015 I joined SAAM, when the company decided to turn the Logistics Division into a Logistics Operator. One of the solutions we developed for the retail industry was to revive the railway service from San Antonio and offer a full logistics service for their import containers from port to distribution center, passing by our intermodal terminal in Renca, Santiago. That service could also include unloading the containers and store the pallets in our warehouses. Then, they would be loaded in trucks and shipped as per customer requirements. Transport was tracked by a platform fed by GPS and warehouses used SAP WMS.

On an ending note, what is your advice for other senior leaders and CXOs working in the supply chain management space?

In my opinion, the mission of supply chain management in any industry can be summarized in one sentence:

“Keeps the business always running at competitive cost, service and quality.”

If you have that clear, you’ll know how to do it.