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“If your service is poor, you become easy prey for your competitors”
Erich Schlenkrich is Industry Manager at TGW Logistics Group. In the interview, he explains how the challenges in spare parts logistics are changing, which role digitalisation will play in the future and why TGW is a reliable long-term partner for companies.
Mr Schlenkrich, manufacturers of vehicles or capital goods often spend a lot of money on cutting-edge distribution logistics. Why should companies also think about having sophisticated spare parts logistics?
Erich Schlenkrich: As a part of the after sales market, spare parts logistics can be an extremely profitable business. However, you have to know the right approach. Studies say that companies are currently only tapping into one quarter of the global sales potential in this sector. Unlocking this potential requires appropriate preparations and investments. There is one thing you have to keep in mind: If a company has a great spare parts service, it can establish a close relationship with its customers.
What are the consequences of poor spare parts management?
Digitalisation makes it possible to launch retail platforms in the blink of an eye. If your service is poor, you become easy prey for your competitors. This is how product clones start circulating. Product pirates who try to start illegal activities are a particular nuisance.
How do you distinguish yourself from your competitors?
Customers from the B2C segment are used to high quality and fast delivery. They expect the same in the B2B segment. This is why high availability and agile logistics matter. In other words: Only those who offer a high level of service will survive on the market.
What do today's customers expect from companies providing intralogistics solutions?
The providers have to view things from the end customer's perspective. The end customer expects easy ordering options on all channels, fast deliveries, short response times and high availability. This is because time is often worth a lot of money in the B2B sector. Let's take an example from agricultural machinery. If a chopper breaks down in the field, and the chopper is supposed to fill a dozen trailers of contractors with maize every hour, then one day of downtime due to an undelivered spare part will easily cost thousands of euros.
How can you meet the customers' expectations?
These days, a state-of-the-art logistics system has to feature the right degree of automation to ensure that the requirements for quick delivery can be fulfilled. Optimised processes and digitalisation create efficiency and transparency. But establishing high availability in distribution centres is not enough. Companies have to look at the entire supply chain, from one end to the other – and then, they have to optimise the network. And they also have to factor in the possibility that the chain will be interrupted – for example, by environmental disasters, strikes or a pandemic like Covid-19. You have to think through these situations in advance in order to have solutions ready when they actually happen. Ultimately, you need an elaborate network and communication system including excellent logistics providers that can also handle unexpected events – for instance, postponed deadlines. Digitalisation is the foundation for such a network.
What are the champions of spare parts logistics doing right?
They have established a global logistics network and global, structured inventory management. And the processes are digitalised.
What solutions does TGW have for providing support to companies?
Over the last fifty years we have accumulated comprehensive knowledge of key technologies in our core markets. We have used this knowledge to develop basic systems that allow us to meet the requirements of our customers. Our FlashPick® solution provides answers to general questions regarding efficiency and economy in a warehouse. Usually, the three most important questions of the customers are as follows: How can I respond to an unpredictable future and fluctuating demand? Second – how do I provide a customer service level that is both the highest and the most cost-effective? And third – how do I accomplish all this in view of the bottlenecks in personnel?
While every customer asks these questions, each of them has established business models and processes that are different in their specifics...
Exactly. And because of this, we individually tailor our solutions to the needs of each customer. Our basic systems are the foundation. They enable us to achieve a very high degree of detail and high quality within short time. Moreover, the companies have different resources and skills at their disposal. We take care of whatever the customer cannot provide.
Can you name some examples of that?
We utilise a whole array of state-of-the-art tools for maintenance and support. For example, we have been using smart glasses of the TGW EVOCALL type for years. They allow us to make information, images and data available to the on-site employees in a live stream in order to solve problems. Our maintenance management systems such as TGW CMMS are digitalised, of course, and we use condition-based monitoring. In this process, we use sensors to acquire status data for central components and compare them to the empirical values in our database. Then we create usage-based maintenance models from these data. We have an edge in terms of knowledge because we have been in this business for decades.
Where do you acquire data, for instance?
One example is that we measure the current draw in the KingDrive® rollers of our scalable conveying technology systems. If the actual value is different from the target value, we react promptly. Compared to conventional rollers, our high-performance rollers run nearly twice as long before they need replacement.
Availability and speed increase if a company puts a lot of money into a dense spare parts logistics network. How do you gain control over the costs?
Successful companies find a good balance between availability, speed and cost-effectiveness. Three issues are important here – reduction of the levels of storage, creation of an efficient hub structure and utilisation of high-performance logistics service providers in the various regions.
Whether it is MAN or Deutsche Bahn – many companies use 3D printing technology for their spare parts. Will centralised spare parts warehouses be history soon?
No. Technology indeed keeps improving, and there are a wide variety of materials that can be printed now. But there is always the question of whether 3D printing is also cost-effective or whether conventional manufacturing is more feasible. Therefore, all companies usually begin by calculating a business case for each part. It is clear that 3D printing will play an important role in the future for certain segments, such as discontinued spare parts. But, in my opinion, many fast-selling items will continue to be manufactured and delivered conventionally. In addition to cost-effectiveness, quality requirements are currently another reason to decide against 3D printers in some segments.
What challenges does TGW have to prepare for?
The world is changing, and it is changing rapidly. The current coronavirus crisis shows this very clearly. Some of the keywords are as follows: alternative drive technologies, autonomous vehicles, artificial intelligence. In addition, the customers' expectations are changing at the same time. This will also have an effect on spare parts logistics, which has to adapt to the new reality. As an example, let me refer to the self-diagnostics system that Tesla, the vehicle manufacturer, has recently launched.
What can the system do?
Tesla took established vehicle diagnostics – which are used by workshops to read out the current status data of the vehicle, for example – and made advancements so that they link up with communication technology and Big Data. As a result, the maintenance dates and spare parts requirements are transmitted immediately from the vehicle to networked service points. Such a strategy has a huge impact on spare parts management. On the one hand, it makes planning easier. On the other hand, all participants in the spare parts supply chain must be part of the information network.
How does TGW set itself apart from other intralogistics providers?
In multiple ways. First and foremost, we are a reliable and stable partner with more than fifty years of experience in intralogistics. And the TGW Future Private Foundation founded by Ludwig Szinicz has been the owner of TGW Logistics Group since 2004. Which means that, unlike some of its competitors, the company cannot be sold. For many customers, this is very important. They say, if I commission a system now, I still want to be able to talk to representatives of the company that I bought the solution from ten years from now. Because total-cost-of-ownership reviews indicate that the operating costs will exceed the initial investment in the course of time, support and maintenance are issues of enormous importance. For this purpose, we offer the ideal solutions for our state-of-the-art systems in the form of our comprehensive Lifetime Services.
Nulogy, a leading provider in supply chain collaboration solutions, and Kinaxis, a global leader in supply chain orchestration, have announced a partnership to develop cutting-edge solutions for brand manufacturing supply chain networks worldwide.
The new partnership aims to catalyze fast-moving consumer goods (FMCG) and life science brands and their supplier networks to work together more effectively through digital transformation solutions, thereby mutually improving costs, service and revenue. Combining the supply chain orchestration capabilities of Kinaxis with the collaborative external manufacturing specialization of Nulogy will enable customers to share forecasts and order information with suppliers and receive inventory capacity information faster.
Nulogy’s purpose-built multi-enterprise platform enables greater responsiveness in the supply networks of leading FMCG and life science brands, including L’Oréal, Colgate-Palmolive, and Church & Dwight, as well as their extended suppliers and hundreds of sites around the world.
“Given the speed and volatility of today’s global market, it is more important than ever for brand manufacturers to digitally synchronize with their supplier communities in order to respond with agility,” said Jason Tham, CEO at Nulogy. “Through our partnership with Kinaxis, we look forward to collaborations that will elevate the performance of supply chain networks around the world.”
Kinaxis Maestro is the AI-infused end-to-end supply chain orchestration platform for fast, intelligent decision-making. Trusted by renowned global brands to provide agility and predictability to help navigate volatility and disruptions, Kinaxis has been a leader in supply chain planning for over 40 years.
"Our partnership with Nulogy improves visibility, control and collaboration of the upstream network of critical suppliers, like contract manufacturers and co-packers, by integrating a variety of supplier data into Maestro,” said Bill Walker, Senior Director, Partner Solutions Extensions at Kinaxis. “Giving our customers the ability to better run simulations, digitize planning and connect in suppliers.”
Learn more about the partnership at ASCM Connect on September 9, 2024. Kevin Wong, Chief Operating Officer, Nulogy; Polly Mitchell-Guthrie, Supply Chain Thought Leader, Kinaxis; and German Vizcaya Leon, VP Global Planning, Colgate-Palmolive will discuss how Nulogy and Kinaxis’s solutions in Advanced Planning & Scheduling and Supplier Collaboration have played pivotal roles in interconnecting Colgate’s network.
FOR IMMEDIATE RELEASE
Contact: Sherri Bosslet
Title: Director of Customer Relations
Phone: 937.415.1715
Email: sbosslet@daytonfreight.com
Date: September 5, 2024
Web: daytonfreight.com
ULINE AWARDED DAYTON FREIGHT FOR EXCEPTIONAL PERFORMANCE
DAYTON, Ohio – Dayton Freight Lines, Inc., a leading provider of regional less-than-truckload (LTL) transportation services, was presented the 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award from Uline.
The 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award were presented to Dayton Freight’s Milwaukee and Hudson Service Centers, respectively. Both awards were given based on the following criteria: exemplary customer service, technological innovation and lastly, partnership and dedication.
Uline, a family-owned business, is the leading distributor of shipping, industrial and packaging materials to businesses throughout North America.
Dayton Freight’s Director of Customer Relations, Sherri Bosslet quoted, “We are incredibly proud of our Service Centers in Milwaukee and Hudson WI for receiving these awards. These accolades from Uline truly demonstrate the dedication and diligence of our Dayton Freight team. We look forward to a lasting partnership for years to come.”
Founded in 1981, Dayton Freight is a private, union-free, less-than truckload (LTL) freight carrier headquartered in Dayton, Ohio. Currently ranked as the country’s 12th largest LTL company, Dayton Freight has 70 Service Centers in 14 Midwest states, served by 6,000+ employees. Offering 1 or 2 day service to thousands of cities, Dayton Freight is known for its prudent growth, operational excellence, advanced technology and an unparalleled company culture known as The Dayton Difference.
Photo Caption: Jeremy Cutchens (Dayton Freight), Shelly Hofmeister (Dayton Freight), Ed VanGrouw (Dayton Freight), Eric Dreissig (Uline), LJ Groen (Uline)
Nulogy, a leading provider of supply chain collaboration solutions, is hosting a session during the Association of Supply Chain Management's ASCM Connect 2024. Nulogy, Kinaxis and Colgate-Palmolive executives will present “Orchestrating Digital Transformation: Nulogy & Kinaxis Empower Colgate-Palmolive’s External Network” on Monday, 9/9/2024, 3:45 - 4:45 p.m. CT in Ballroom E, Level 4.
In an era when digital transformation is paramount for sustainable growth, Colgate-Palmolive stands out as a leader in the consumer packaged goods space. With a strong digital transformation vision and strategic partners that tout the technical capabilities and expertise to bring it to life, Colgate and its extended supply network has been able to reap the benefits of digitally-infused agility, resilience and efficiency to outcompete in today’s marketplace.
The session will cover Colgate-Palmolive’s vision for transforming its supply chain planning and execution, highlighting the imperative to enhance supply chain synchronization and collaboration.
Nulogy and Kinaxis join Colgate-Palmolive in this talk to discuss how their best-of-breed solutions in advanced planning and scheduling and supplier collaboration have played pivotal roles in interconnecting Colgate’s network.
Speakers include:
Moderator: Christine Barnhart, CPIM Chief Marketing and Industry Officer, Nuology
Panelist: Kevin Wong Chief Operating Officer, Nulogy
Panelist: Polly Mitchell-Guthrie Supply Chain Thought Leader, Kinaxis
Panelist: German Vizcaya Leon VP Global Planning, Colgate-Palmolive
Check out the complete Colgate-Palmolive case study by visiting https://bit.ly/3z6xwPK.
Covington, KY — In a significant step toward redefining supply chain efficiency and boosting the local economy, Lakeshore Learning hired Zion Solutions Group, a trailblazer in advanced supply chain integration, to help implement a cutting-edge 1.2 million square foot distribution center in Garland, Utah. This collaboration is set to create over 500 jobs, showcasing an unparalleled commitment to innovation and community development.
“Our relationship with Lakeshore Learning, beginning in 2015, has been a testament to what visionary collaboration can achieve," stated Jim Shaw, President of Zion Solutions Group. “This is not just a collaboration; it’s a leap toward the future of supply chain management. By combining Lakeshore Learning’s vision with our technological expertise, we are set to introduce a distribution hub that exemplifies efficiency, sustainability, and economic growth for Garland."
Artin Ghazarian, Chief Supply Chain Officer at Lakeshore Learning, highlighted the project's ambition: "Our journey with Zion Solutions Group has been marked by a shared drive for excellence. This distribution center goes beyond expanding our logistical capabilities—it's a testament to our dedication to setting new industry standards for efficiency and environmental stewardship in supply chain management."
Jordan Frank, EVP & Co-Founder of Zion Solutions Group, emphasized the collaborative synergy: Our relationship with Lakeshore Learning is more than a partnership; it's a melding of minds aimed at redefining the future of our industry. We're not just optimizing logistics; we're crafting a model of innovation that leverages technology for smarter, more sustainable operations. Our goal is to inspire the sector by demonstrating how collaboration and technology together can create impactful solutions.”
The facility will harness the latest in automation and robotics to optimize both efficiency and scalability. Zion Solutions Group will play a crucial role in this evolution, meticulously shaping the project from its conceptual stages to its final form. This includes value-added engineering to support Lakeshore Learning’s specific needs, overseeing the procurement and engineering processes to ensure precision, and integrating advanced software solutions—including Zion Apex (WES)—for peak functionality. Beyond the project’s completion, Zion’s Customer Experience team will continue to support the operations team and provide optimization opportunities, ensuring the facility operates smoothly and evolves with technological advancements.
With an operational goal set for 2025, Lakeshore Learning’s Garland distribution center represents a major milestone in job creation and economic growth for the region. This initiative aligns with Zion's mission to drive sustainable innovation and cement its leadership in the market.
For more information about Zion Solutions Group and its groundbreaking projects, please visit https://thezsg.com/.
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About Zion Solutions Group
Zion Solutions Group, a leader in Supply Chain Integration, uses its 90+ years of knowledge to deliver memorable experiences and guide intelligent change. Specializing in material handling integration, Zion provides comprehensive services that include detailed data analytics, solution design, procurement, implementation, and post-implementation support. Our customer-centric approach and Project Lifecycle process ensure tailor-made solutions using cutting-edge technology, setting us apart in the industry. Zion, in support of its core purpose, “To Leave a Positive Impact on the Lives of Those We Touch,” is committed to driving success and sustainable growth for our partners and customers.
About Lakeshore—Products Designed with Learning in Mind®
Lakeshore Learning Materials is a leading developer and retailer of top-quality materials for early childhood education programs, elementary schools, and homes nationwide. Since 1954, Lakeshore Learning Materials has offered innovative learning materials distinguished by their quality, educational merit, and safety. To learn more, visit LakeshoreLearning.com.
Panel Built, Inc., a leading provider of modular offices, mezzanines, and custom-engineered structures, has announced plans to expand its primary facility, PB1. The expansion will include additional office and fabrication space, allowing the company to better accommodate its rapidly growing workforce and increasing demand for its innovative space solutions.
As Panel Built continues to experience significant growth in both personnel and market reach, this expansion marks a critical step in the company’s strategic development. The additional space will enable the company to enhance its operational efficiency and continue delivering high-quality products and services to its diverse client base. The expanded facility will also provide a more collaborative work environment for the Panel Built team, fostering innovation and reinforcing the company’s commitment to excellence.
"Panel Built has built a reputation for delivering modular solutions that meet the unique requirements of various industries, including commercial, military, government, and industrial sectors. The company's expertise in engineering, design, and installation has made it a trusted partner for organizations seeking efficient and customizable space solutions.
The Blairsville facility expansion is expected to be completed by early 2025. Panel Built is committed to maintaining uninterrupted service to its clients throughout the construction process, ensuring that all projects remain on schedule and meet the company’s high standards of quality."
- Mike Kiernan CEO
About Panel Built, Inc.
Founded with the mission "To Solve Our Customers' Space Needs With Excellence And Great Customer Service," Panel Built, Inc. specializes in modular construction, offering a range of solutions from modular offices and mezzanines to guardhouses and cleanrooms. With extensive experience in both public and private sectors, Panel Built is dedicated to delivering space solutions that meet the highest standards of quality, safety, and customer satisfaction.