Do corporates need to rethink their approach to city logistics?
JLL, the leading provider of real estate professional and financial services, has released its latest report, The Fourth Industrial Revolution, outlining the trends that are shaping supply chains and driving occupier demand for logistics property in Europe. There is increasing demand for innovative types of logistics property in and around cities to meet both sustainability criteria and the requirements of online and omnichannel retailing, such as:
- establishment of multi-storey ramped logistics facilities which, although already very common in parts of Asia-Pacific, are almost without precedent in Europe
- changes in the type of warehouse facilities to meet requirements in last mile deliveries
- increasing use of shared user consolidation centres
- CEOs and CFOs who care about costs, customer service and corporate reputation need to think differently about traditional supply chains
Corporates need to better integrate their property and supply chain decision-making processes into broader business decision-making processes, to get the best out of their distribution property networks and provide customers with the best possible experience, whilst having better visibility over costs and benefits.
Big data and technology will have a huge impact on corporates’ ability to understand and anticipate customer demand. Used effectively, it will influence the necessary transformation of traditional production-led supply chains into consumer-centric demand chains, complete with improved visibility of demand, increased responsiveness of supply chain processes, and enhanced tracking of products. Big data will lead to lower demand for logistics facilities to hold stock, and higher demand for facilities to handle the movement of product back-and-forth along the chain.
Over recent years, interest in reshoring and nearshoring has increased owing to rising labour costs in China, hidden costs related to long supply chains, quality issues, and increasing supply chain risks. The EMEA region is likely to benefit from more reshoring and nearshoring, with segmented supply chains becoming the norm. Turkey, CEE and North Africa have become attractive locations for nearshoring to European markets.
Guy Gueirard, Head of EMEA Logistics & Industrial, JLL, says: “Global supply chains are facing their biggest shake-up in centuries. Corporate occupiers need to think differently about traditional supply chain logistics in order to future-proof their businesses, better manage costs and put customer service at the heart of what they do. Investors have an opportunity to tap into the changing landscape as demand for logistics property in the EMEA region grows, and as city logistics evolve and innovate to be fit for purpose in the age of the Fourth Industrial Revolution.”
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Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.