Contents

1 Restmail sorting system for CTT SPPAL delivers innovative VarioSort Twin to Portuguese postal service

2 Editorial

3 Interview with Dionísia Ferreira New test center in Nuremberg

4 News China: Two-fold success · State-of-the-art machines for the Swedish postal service · Australia Post orders six flats sorting machines · arriva optimizes workflows with Siemens systems

6 Smooth flowing thanks to digitalization Tightly integrated logistics processes from Siemens

8 Siemens software garners award from Postal Technology Interna-tional “Parcel Handling Innovation of the Year” for Label Learning software

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Fast and reliableSolutions for seamless mail and parcel sorting processes

The goal is the same for courier, express and parcel or postal services: a quick, reliable and economical delivery of mail and parcels from sender to recipient. As a leading supplierof logistics solutions, we understand your business.

Our intelligent solutions boost your mail and parcel logistics. We enable you to create seamless processes for letters, flats and parcels from the first to the last mile. Drawing on experiences with projects all over the world, we work with

you to generate optimal solutions. Ultimately, our target isto enter into a partnership with you that makes your daily business easier and allows you to concentrate on your core strengths.

Our solutions help you reach the next degree of automation and improve productivity. Turn to the pioneers in mail and parcel solutions for your next project. Turn to Siemens.

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SILOG NewsSolutions for postal, courier, express and parcel services Issue May 2016

SPPAL delivers innovative VarioSort Twin to Portuguese postal service

Restmail sorting system for CTT

The heart of the system in the Cabo Ruvio logistics center in Lisbon is the new cross-belt sorter VarioSort Twin that processes especially small and lightweight parcels efficiently and reliably. As system inte-grator, Siemens designed the entire sys-tem for restmail sorting.

The rise in restmail – often small and lightweight parcels – is attributed par-ticularly to e-commerce with China.

The mail is delivered in trays and trans-ported to the five inductions via roller conveyors. There the parcels are coded and fed into the sorting system. The VarioSort Twin then takes over the fast and reliable sorting to the outlets.

>> Continued on page 2

The restmail sorting system delivered to the Portuguese postal service CTT – Correios de Portugal, S.A. – is a good example of how Siemens can help customers cope with the changing market and manage the complex mail mix.

VarioSort Twin helps CTT deal with higher parcel volumes

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The new VarioSort cross-belt sorter is at the heart of the Innovation and Test Center for Parcels Logistics. The sorter, which measures around 140 meters in length, consists of over 200 carriers and is capable of sorting approximately 13,000 parcels per hour. The test center also features a full-scale VarioSort Twin, one of the most efficient parcel sorting systems. Loading/unloading docks and standard-height chutes have also been incorporated into the periphery of both systems. As such, it is possible to repli-cate even more precisely conditions that customers know from day-to-day opera-tions. The service team in Nuremberg also tests intelligent tools for the main-tenance of logistics systems and for co-ordinating spare-parts requirements.

Spotlight on the customer

At the customer information center, the focus is on all aspects of parcels logis-tics. Here, customers can gain valuable insights into the competitive advantage they can achieve with SPPAL at their side. SPPAL’s new site represents a mile-stone on the company’s journey into the future. At the in-house think tank, SPPAL is continuously refining its inno-vative products and solutions. «

Innovation center for current and future projects

New test center in Nuremberg At the beginning of the year, Siemens Postal, Parcel & Airport Logistics (SP-PAL) opened its new Innovation and Test Center for Parcels Logistics in Nuremberg, which covers a total of 6,000 square meters.

VarioSort in the test center

>> Continued from page 1

Larger mail spectrum

A special technical feature extends the range of parcels that can be sorted: the sorting speed is two meters per second in standard mode, but it can be manu-ally reduced to 1.6 meters per second. This feature permits the processing of particularly lightweight parcels – with a weight under 20 grams these parcels would be literally thrown off course at higher speeds. At the end of the sort-ing process, the parcels are discharged

Editorial

Dear Reader,

In the fight for faster and more economical processes, highly mod-ern and cleverly controlled sorting facilities play an important role. An example is the VarioSort Twin from SPPAL. It has no problem dealing with the parcels typical of e-com-merce. The Portuguese postal ser-vice isn’t the only postal company that values VarioSort Twin’s ability to sort lightweight parcel in a flash – the flexible sorter also tackles par-cel flows at SF Express China in Chaoshan (p. 4) and is in use at the SPPAL test center in Germany (p. 3).

Room for improvement exists be-tween the many stations that make up a logistics chain. The goal is to more tightly organize the logistics network. The advantage of doing so is that goods can be transported more quickly. Digitalization (p. 6) and Label Learning (p. 8) are mak-ing a contribution.

Our customers’ opinions are impor-tant. Therefore, the editorial staff of SILOG News would like to learn more about the usefulness of the information we provide about SPPAL. We ask for your assistance: Please use the attached question-naire to let us know how you like our selection of articles and news. We look forward to your feedback!

Yours sincerely,

Remco Overwater Senior Vice President Systems & Solutions Division

via chutes into empty trays that are properly positioned by an efficient material-handling system.

Currently, the system can sort up to 6,000 parcels per hour. If required, the installed passive dummy carriers can be replaced with active ones to boost throughput to 10,000 parcels per hour. As such, the sorter is able to adapt flexibly and efficiently to CTT’s growth. «

Digitalization is transforming industries and, in specific cases, is even creating disruptive business models. The logistics sector is no exception. The constantly increasing business with e-commerce is changing the market land-scape and creating new challenges for all stakeholders – also for our company.

With its deep know-how, large installed base and unpar-alleled focus on R&D, Siemens Postal, Parcel & Airport Logistics is ideally positioned to support its customers with their digital transformation.

The innovative sorting system VarioSort Twin is exactly the right solution to efficiently sort the more and more

Fernando Pires Gonçalves, CEO of Siemens Postal, Parcel & Airport Logistics in Portugal

„

complex mix of products, to flexibly respond to market requirements and to increase productivity.

“

throughout the entire installation, the possibility to employ two different speeds, the web video-coding system and semi-automatic induction.

Further design features include the capacity for the gradual evolution of the equipment through progressive substitution of dummy carriers, the increase in the video-coding capac-ity and the fact that the solution is especially designed to support a wide range of parcel types.

In the end, the SPPAL team in Portu-gal played a decisive role. The expert team ensured that we received the so-lution best suited to our needs so that we can also fulfil the requirements of the e-commerce market in the future.

SILOG: Which aspects do you most value in your collaboration with Siemens?

Dionísia Ferreira: I would like to high-light the dedication, the focus on re-sults and the technical competency of the team. Through this we were able to meet the tight deadline! The hassle-free collaboration with the Portuguese supplier – a rarity in the postal sector – had clear benefits for the project. For example, communication between the technicians and the exchange of docu-ments were simpler and faster, just as was the identification of problems and their solutions.

Thank you for the interview.

SILOG: What was CTT’s objective with this investment?

Dionísia Ferreira: CTT has concluded a further stage of its modernization. Aside from increasing productivity, this investment allows for more pre-cise control of the mail flow, improves the quality of service, and reduces the physical strain on employees.

Above all, CTT has become better equipped to respond to the increase in packages and small parcels from the domestic and international e-com-i merce sectors.

By increasing efficiency and quality, this investment has also contributed to obtaining new customers within the e-commerce sector as well as improving existing client relationships. SILOG: What were the determining factors that led to Siemens being selected?

Dionísia Ferreira: The presented solu-tion fulfilled our demands and require-ments. It impressed us not just with its quality and advanced technology, but also with the high level of competitive-ness, which sets the solution apart from those from other suppliers. Thanks to the innovative strength and performance of the implemented solu-tions, Siemens has proven to be the best choice. Highlights are the trans-port system for empty and full trays

Interview with Dionísia Ferreira, Executive Member of the

Board of Directors at CTT

>> Continued from page 2

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China: Two-fold success Siemens Postal, Parcel & Airport Logistics (SPPAL) recently landed two orders from SF Express China.

The Chinese group is using technology from SPPAL to boost the efficiency of express airfreight handling. Operating costs are lowered while the quality of overall service increases. In the first project, a worldwide pilot featuring the Siemens VarioSort Twin Sorter is being kicked off at the Chaoshan site. The or-der comprises manufacture, installation,

commissioning, integration and project management, as well as training mea-sures, a test run and, of course, a war-ranty. By replacing manual sorting with automatic sorting, personnel resources can be improved. What’s more, the new system enables controllable and replica-ble data recording and visualization.

The second project involves the SF Ex-press National Hub in Hangzhou, which is being expanded using SPPAL technol-ogy. Siemens engineers are delivering

an up-to-date parcel sorting system that comprises design, manufacture and in-stallation, test operation and start-up. Integration of the supplied systems and components ensures that by the end of the project everything will be running like clockwork. The warranty also includes preventive maintenance and emergency service. During the test phase, service staff and the training of operating per-sonnel ensure that maintenance, inspec-tion and operation run smoothly.

At arriva, the largest regional mail ser-vice in the German state of Baden-Würt-temberg, two additional high-perfor-mance sorting machines of type CRS 3000 (Compact Reader Sorter) were put into service at the end of 2015. A pri-vately owned company, arriva sorts mail pieces for distribution to up to 3,000 de-livery districts every day. The extremely user-friendly machines make the task even easier thanks to their ergonomical-ly designed stackers and trays. As early as 2011, arriva was the first private mail carrier in Germany to invest in two high-performance sorting systems of the same type. In 2013, a further machine was added for the sorting center in Et-tlingen. The new systems are capable of throughput of up to 47,000 mail pieces per hour and boast a high level of accu-racy – exactly what is needed to deal with a steadily growing quantity of mail. Along with high throughput perfor-mance, the systems are flexible enough to handle mail pieces in formats up to C4, and they can process handwritten items with extremely high reading rates. A further advantage is the low noise level.

arriva optimizes workflows with Siemens systems

Australia Post orders six flats sorting machines

State-owned Australia Post, which deliv-ers 60 million mail pieces per week to more than eleven million addresses across the entire continent, has been looking to increase the efficiency of its mail centers. To get the job done, the managers in charge have opted for the Open Mail Handling System (OMS) from Siemens Postal, Parcel & Airport Logistics (SPPAL). Six of the sorting systems are being installed in Brisbane, Melbourne, Perth and Sydney, where they will effi-ciently sort flats, newspapers, open and plastic-wrapped magazines, and small parcels. One of the most important fea-

tures of the OMS is the high degree of automation for flats in an ergonomic en-vironment. The systems are equipped with barcode readers and printers. For the first time in a flats sorting system, a colour scanner is being used to produce high-quality pictures. “We evaluated dif-ferent machine types for flats processing and decided to go for Siemens’ advanced technology,” says Andrew Howlett, Gen-eral Manager, Postal Services at Australia Post. He also emphasizes that “the OMS processes a larger spectrum of mail types and formats than any other sort-ing system.”

The eight Culler Facer Canceller (CFC) machines from Siemens are being used for pre-sorting through to sequence sorting. Along with standard letters, they also can process flats all the way up to C4 format at the sorting centers in Alvesta, Arsta, Gothenburg, Malmö and Sundvall. The sorting machines were ordered by PostNord in 2013 and went into operation on schedule at the end of 2015.

The new CFCs have replaced the Siemens sorting machines that were in service for many years. Today, all functions are integrated into a single continuous mail flow, saving not only time but also space.

In addition, the weighing module allows dynamic weighing of standard letters and flats of up to 300 grams. For the purpose of revenue protection, items with insufficient postage are recognized fully automatically.

In 2010 and 2012, PostNord ordered twelve CFCs for its operations in Denmark and Sweden.

State-of-the-art machines for the Swedish postal service

6 SILOG News I Issue May 2016

Tightly integrated logistics processes from Siemens

Smooth flowing thanks to digitalization Products, markets and customer requirements are changing quicker than ever. In the fast-moving world of smartphones and the Internet, the end user is increasingly becoming the driving force behind new services and process changes. To keep pace, internal and external logistics processes must pick up on this dynamic and at the same time become more closely interlinked and transparent. Siemens Postal, Parcel & Airport Logistics (SPPAL) offers flexible, adaptable solutions to increase the degree of digitalization in the entire logistics chain.

Issue May 2016 I SILOG News 7

times. How can all parties involved ac-cess data effectively in real time? And how can the information be used for the targeted control and acceleration of processes? The solution is to use the data in the sorting center to predict when a certain shipment will arrive at the hub. Tophoven emphasizes: “To do this, the internal and external logistic chains must be tightly integrated.” On a global scale, this tight integration is part of digitalization and the digital transformation.

For quite some time, Siemens has been focusing on integrating not only the flows of physical letters and parcels, but also data flows along the entire process chain. SPPAL is now in a position to offer its customers solutions for an end-to-end integrated internal and external supply chain. Tophoven: “It is obvious that it is not simply a well-thought-out physical material flow that improves sorting re-sults. Today, software plays a more and more important role in the optimum ex-ploitation of valuable resources to meet delivery commitments.”

The digitalization wild cards from SPPAL

The cloud-based logistics platform AX4 is responsible for the external lo-gistics chain. A product of AXIT, a sub-sidiary wholly owned by SPPAL, the platform makes up for the lack of trans-parency in delivery flows on roads, rivers and in the air by introducing smooth, transparent processes. When everything seems to be speeding in one way or another to a single destination, it’s hardly surprising that people lose track of things – and also lose sight of the broader perspective. AX4 enables each party in the supply chain to simply hook up to the logistics platform and in a targeted manner pull out the informa-tion they need from the huge pool of data. This could be, for example, infor-mation on when a package or a ship-ment is expected at a hub, or which shipment is impacted by delays. This transparency at every stage of shipment handling is priceless, as it can often pre-vent or reduce search operations and idle times. It is also just as important for

The growing number of smartphone users who surf the Internet and shop wherever they happen to be demand short delivery times from companies – whether dealers, manufacturers or lo-gistics specialists. Today it is automati-cally assumed that end users want the fastest delivery possible – ideally at a given time of the day and to a location of their choosing. The range of goods and services on offer has also expanded. The business of sending fresh foods by post is booming. Logistics specialists are already taking on more parcel-related tasks, such as packing and addressing. “They are gradually becoming multi-pur-pose logistics operations,” says Uwe Tophoven, IT product manager at SPPAL. He points to the immense pressure CEP operators are under in an increasingly

*SCEM: Supply Chain Event Management, (controlling and warning system for processes in the logistics chain)

volatile and almost unpredictable market.

Lower logistics costs

Since the proportion of logistics costs to overall product costs is rising, logis-tics specialists are being called upon to reduce their process costs still further in order to safeguard profits. “This is only possible if processes can be quick- ly adapted to meet new requirements, and the associated administration and coordination expenditures are system-atically optimized using powerful infor-mation technology,” Tophoven admits. A look at transport and sorting net-works reveals there are still a number of issues to deal with. Although track-ing systems have become established in the trade and delivery market, they

are merely passive systems that only record when a given point is passed. Such systems, however, cannot opti-mize goods flows. Truck tailbacks at hub gateways or repeated trips to cus-tomer addresses also inhibit rapid de-livery processes and cost reductions. In the same way, inflexible sorting op- erations lead to more frequent peaks in demand.

Networking ensures timely delivery of data

It doesn’t take a clairvoyant to identify the cause of this unsatisfactory situa-tion. Usually, timely data is missing – whether it’s information relating to the transported items, such as volume, weight and parcel type, or knowledge about traffic disruptions and arrival

Advantages of cloud-based AX4 software • 50 percent reduction in expenditures for incorporating service providers such as forwarders

• Compatible with every IT system on site• Only one interface to the cloud, instead of bridging the gap with numerous individual links • No hardware and software investments on site• Standardization of documentation• Reports on transit, time and troubles at the touch of a button• User-friendly operation

The Hub Integration Platform focuses on internal logistics at the hub and is the counterpart to AX4 in the logistics hub. This internal communication platform bridges the information gap to AX4.

The Manufacturing Execution System is the process control system that forms an intermediate layer between the ma-chines and the individual software appli-cations. It offers the same advantages as AX4. The open IT architecture makes for (IT) hardware independence and al-lows the easy incorporation of systems from different manufacturers. After the sorting process, the delivery services take over and deliver the parcel to the proverbial final link in the chain – the customer. Here, too, everyone knows what is happening along the way – and can draw valuable conclusions for their own processes.

Uwe Tophoven sums it all up: “Digitaliza-tion and networking make it possible for a constantly changing value-added chain to become more effective by optimizing throughput times, and by using fewer resources efficiency is boosted. What’s more, flexible, adaptive control of opera-tional processes generates the speed demanded by today’s markets.” «

service providers that the cloud solution allows external logistics partners to link up with the platform without interface problems (see AX4 advantages).

The Production Planning & Control System is linked to the external supplier data pool. It plans, controls and moni-tors operative processes at the hub, from the arrival of the transporters through to unloading, sorting, loading and de-i parture.

The data from AX4, for example up-to-date information about shipments cur-rently on their way to the hub, in con-junction with a link-up to work areas enables fast collection of information relevant to planning and control. Build-ing from this, dynamic process and re-source utilization can be optimized and influenced swiftly.

SPPAL’s Dock & Yard Management System is also linked to AX4 and there-fore receives information early on about which goods are due to arrive at the hub’s yard on a given day. Information from the upstream supply chain and current data from the gates, as well as capacity and resource plans, helps to optimize sequences and processes.

• Flexible & agile software• Management of the logistics network• Process optimization

8 SILOG News I Issue May 2016

Published bySiemens Postal, Parcel & Airport Logistics GmbHLilienthalstrasse 16/18 78467 Constance Germany

info.logistics@siemens.com

www.siemens.com/logistics

Editor-in-chiefInsa SiglSPPALnews.logistics@siemens.com

Responsible for contentMonica Soffritti

© Siemens Postal, Parcel & Airport Logistics GmbH 2016 Printed in Germany

All rights reserved. No part of this publica-tion may be reproduced or used without express prior permission. Subject to tech-nical modifications.

“Parcel Handling Innovation of the Year” for Label Learning software

Siemens software garners award from Postal Technology InternationalAward-winning innovative skill is at the heart of the Label Learning software from Siemens Postal, Parcel & Airport Logistics (SPPAL). The software was recently recognized with an award from Postal Technology International magazine.

systems themselves to fit the current situation. “This solution offers the enor-mous advantage of being able to steadi- ly reduce the proportion of manual work,” Product Manager Dr Christoph Martin explains.

Up to 1,000 different labels

The label-learning process is carried out with the aid of images of individually scanned labels and those not recog-nized by the reading system. The specif- ic images are interactively processed on a separate computer using the Label Learning software. The various areas of the label are assigned a designation, for example, as a sender, address or bar-code field. Logos and other elements can also be assigned and classified with ease using existing structures. Aspects such as lines and overall size typically play a role in the process. The clearly structured user interface allows sample images to be loaded quickly and easily in order to identify the individual areas. Consequently, the software is capable of differentiating between up to 1,000

different labels. Label definition takes place in an interactive offline system; the recognition results are verified against a test batch of sample images.

Transfer via ORCA

The generated data is then available in a database and can be transferred to the sorting center’s reading system at any time via Siemens Open Reading Coding Architecture (ORCA), a modular system platform for all reading, video coding and image management applications.

Leading the field in the global competition

The advantages of the label-learning sys-tem for parcel carriers can be felt on a number of levels: to start, rapid adjust-ment to new label layouts leads to signif-icantly higher reading rates. In addition, the user can configure simple reading tasks and clarify conflicting barcodes if, for example, labelled cartons are re-used. International and third-party labels can also be recognized and processed effi-ciently and reliably. Michael Reichle un-derlines the significance of the SPPAL in-novation: “In the highly competitive CEP market, efficient label recognition is a must.” «

Michael Reichle, CEO of SPPAL (left) and Dr. Christoph Martin, Product Manager, present the award

In times of global e-commerce, sorting centers are increasingly being confronted with new and previously unknown labels. These labels differ greatly, depending on the supplier and country of origin. The addresses of the sender and recipient, logos, barcodes and other attributes can all be found in various positions on the label.

Parcels with labels that are not recog-nized by reader software must subse-quently be processed manually – which is costly and time-consuming. Help is at hand in the form of the Label Learning software from SPPAL.

Unfamiliar labels no longer a daunting prospect

Reading systems need to be able to adapt quickly to a wide variety of labels. The Label Learning software from Siemens allows users to assign fields and sub-fields to new label types quickly and easily, and therefore define a new pro-totype of shape recognition. This makes it easy for parcel carriers to modify their