Press releases are provided by companies as is and have not been edited or checked for accuracy. Any queries should be directed to the company issuing the release.
“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.
September 24th, Charlotte, NC - HTL Freight, a rising leader in the third-party logistics (3PL), is pleased to announce the acquisition of CTS Logistics, a full-service managed transportation company (4PL) headquartered in Windham, NH. This acquisition, HTL Freight’s fourth major transaction since 2021, reinforces its commitment to delivering exceptional freight solutions across North America.
CTS Logistics, known for its managed transportation and brokerage services, has built a strong reputation since its founding in 1989 by Donald Leclair. The company’s family-oriented ethos has been carried forward by Leclair’s children—Alan, Keith, Brian, and Kim Garneau—who continue to play key roles in the business.
"Our decision to partner with HTL Freight was driven by their dedication to upholding the values that have defined CTS Logistics for the past 35 years. HTL Freight’s leadership shares our commitment to integrity and service, making them the ideal partner to carry forward our family’s legacy," said Alan Leclair, President of CTS Logistics.
As part of the acquisition, Keith Leclair has been appointed as Vice-President of LTL at HTL Freight. His extensive experience and leadership will be instrumental in expanding HTL’s Less-Than-Truckload (LTL) capabilities.
Finalized in February 2024, the acquisition has since led to a close collaboration between the two companies to ensure a seamless integration of operations, systems, and cultures. This collaborative process has preserved CTS Logistics’ strengths while enhancing the combined service offerings.
Founder Donald Leclair expressed confidence in CTS Logistics’ future under HTL Freight's ownership, stating, "The collaboration between our teams over the past few months has confirmed that HTL Freight is the right partner to continue serving our clients with the level of care and dedication they’ve come to expect."
This acquisition allows HTL Freight to further expand its geographic footprint and service offerings, positioning the company as a notable player in both the 3PL and 4PL sectors. Customers will benefit from enhanced transportation solutions, including increased brokerage capabilities and more robust managed transportation services, all supported by HTL Freight’s state-of-the-art technology platform.
"We are thrilled about the growth opportunities this acquisition brings to both our customers and our organization. The addition of CTS Logistics strengthens our ability to provide comprehensive, technology-driven solutions that enhance efficiency and deliver cost savings to our shipper partners," said Onu Okebie, CEO of HTL Freight.
About HTL Freight:
Founded in 1983, HTL Freight (htlfreight.com) is a supply chain management company providing an experience rooted in service, data-driven insights, and advanced technology for both shippers and carriers. Focused on customer service, operational excellence, and partnerships, HTL's mission is to consistently exceed expectations and "Go the Distance" for its clients by delivering reliable supply chain solutions.
Abu Dhabi, United Arab Emirates – Etihad Cargo, the cargo and logistics arm of Etihad Airways, is celebrating 20 years of operations in India, a milestone that reflects the airline's ongoing commitment to the Indian market since its first flight to Mumbai on 26 September 2004. Over the years, Etihad Cargo has expanded its presence in India, now offering belly hold capacity via nonstop services between Abu Dhabi and 12 major Indian cities, with plans for further growth.
Etihad Cargo handles over 46,000 tonnes of cargo annually ex India, connecting the country to over 100 global destinations via its Abu Dhabi hub via 588 widebody and narrowbody rotations each month. To meet the needs of specific sectors, Etihad Cargo has enhanced its product range, adding new features and launching new products. Key commodities handled include electronics, including mobile phones and semiconductors, garments, pharmaceuticals, perishables, e-commerce, automobile components and courier shipments, reflecting the diversity and strength of India's manufacturing and export sectors.
The carrier's IATA CEIV Pharma-certified PharmaLife product provides precise temperature control for the safe transport of high-value pharmaceuticals, a growing market in India. Etihad Cargo is exploring additional certified pharma trade lanes with key airline partners and has implemented stringent cargo screening for US-bound shipments from major Indian hubs, including Mumbai, Bangalore, Delhi, and Hyderabad. Etihad Cargo's pharma roadshows in India, launched in 2023, have helped double PharmaLife volumes by improving connectivity and frequencies. Additionally, the introduction of Etihad Cargo's IATA CEIV Li-batt-certified SecureTech product in 2024 has supported the growth of electronics shipments.
"As Etihad Cargo celebrates two decades of successful operations in India, the carrier's commitment to its customers remains strong," said Stanislas Brun, Vice President Cargo. "Etihad Cargo's continued investment in its network, product range, infrastructure, and digitalisation efforts ensures the carrier can provide efficient, reliable air cargo solutions that meet the evolving needs of customers in India and beyond."
The airline has invested in advanced technology to enhance its operations, including the use of customer relationships and cargo management systems like Salesforce and Sales Cockpit, as well as track and trace capabilities and automated warehouse management. The ongoing enhancement of Etihad Cargo's online booking portal, which now includes options for pets and dangerous goods as well as personalised dashboards, has improved the efficiency of the booking process. Currently, 93 per cent of the bookings made in India are made directly through Etihad Cargo’s booking portal.
As Etihad Cargo looks to the future, the airline will continue to innovate and expand its operations, remaining committed to evaluating its network and adding capacity where required to support its customers in this key market. With a focus on delivering efficient and reliable cargo solutions, Etihad Cargo is dedicated to meeting the evolving needs of the Indian market and cementing its position as the air cargo partner of choice for the Indian market.
Charlotte NC, September 23, 2024 (McLeod User Conference ) – HOPTEK, a global leader in AI-driven trucking and fleet transportation solutions, has been selected by Xtreme Trucking of Wisconsin, one of the U.S.’s leading technology-first transportation and logistics providers, for its Dispatch Engine® solution, a digital platform providing instant visibility and access to the spot load market, while matching available carrier capacity across thousands of possible options. HOPTEK’s “digital twin” will provide real-time visibility and enable Xtreme to boost operational efficiency and fleet utilization, while reducing driver turnover and deadhead miles, resulting in material cost savings and profitability.
Started as a small independent operation in 2006, Xtreme Trucking was formally established in 2009 to become a quality diversified transportation provider, with a growing revenue profile and extensive coverage across the United States. Through HOPTEK’s Dispatch Engine®, Xtreme has leveraged real-time data visibility and dynamic decision-making to drive operational velocity to achieve up to a 20% increase in both Revenue per Hour and Weekly Revenue Miles per Driver – a clear competitive advantage.
Travis Nelson, President and Founder of Xtreme Trucking said: “Between supply chain complications, market shifts, and driver shortages, the past several years have been a rollercoaster ride for our industry. Selecting HOPTEK’s Dispatch Engine solution addresses several seemingly intractable challenges, enabling us to optimize fleet utilization, increase driver satisfaction, and reduce deadhead empty miles. HOPTEK’s robust visibility platform enables us to make the best available decision, even as fleets remain dynamic, and routing and load scenarios shift constantly. We at Xtreme immediately recognized the value of HOPTEK’s strategic offering to our operation and how it would support the achievement of our goals.”
Transportation and logistics are the backbone of the U.S. economy. Xtreme fuels that economic growth by delivering best-in-class operations, innovative technology solutions, and a talented workforce. The company was seeking a solution that would address very specific issues related to driver miles, route efficiency, and utilization in one platform. Achieving these goals required a unique set of capabilities. HOPTEK’s Dispatch Engine® solution closes these gaps by creating dispatchable recommendations that consider the entire fleet, at any given moment. It gets critical information to dispatchers, planners, drivers, and other stakeholders in near real-time, supercharging efficiencies and profitability.
Balaji Guntur, CEO and Co-founder of HOPTEK said: “We’re excited and honored to have been selected as a long-term partner to Xtreme Trucking. Their keen eye for innovative technologies and solutions that genuinely add measurable value attests to why the industry will view Xtreme as a trend setter and leader in small to mid-size fleet tech adoption. We believe they have selected a solution that will enable them to achieve their technology goals, while at the same time supporting their efficiency mindset and profitability targets.”
About Xtreme
Xtreme Trucking LLC delivers superior reefer transportation and dedicated services across the United States. With a leading view on technology and a modern truck and trailer fleet, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe, and exceptional service. Moreover, Xtreme strives for leading on-time delivery and customer service, and as a technologically minded fleet, and remains deeply committed to promoting both customer and driver satisfaction. To find out how Xtreme Trucking Delivers, please visit: https://www.xtremetrucking.com/
About HOPTEK
HOPTEK was founded in 2021 when global strategy and management consultancy Kearney brought its transportation and tech expertise together to help transform the trucking industry. After HOPTEK’s AI-powered system helped a leading U.S. fleet solve major operational challenges and drastically boost their performance, the company opened that technology to fleets across the U.S. With transformational technology tools such as Fleet Scanner®, Freight Finder®, and Dispatch Engine®, trucking and logistics companies can actively analyze fleet performance, identify and reduce wasteful wait times, and optimize dispatching in responsive real-time. For more information, please visit: https://www.HOPTEK.ai/
About Kearney
Kearney is a leading global management consulting firm. For nearly 100 years, we have been the trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we help our clients break through. For more information, please visit: https://www.kearney.com/
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)