Interview

At the side of a strong partner

DS Automotion has been developing AGVs since 1984 and is one of the most important suppliers in this segment. The company has recently acquired a strong partner: intralogistics specialist SSI Schäfer has acquired a stake in the Austrian company. Martin Schrüfer spoke to Rob Schmit, Executive Vice President Technology & Innovation at SSI Schäfer, and DS Automotion Managing Directors Manfred Hummenberger and Wolfgang Hillinger about the partnership, new products and common goals.

Making common cause: Manfred Hummenberger (l.) and Wolfgang Hillinger (r., both DS Automotion) take Rob Schmit, SSI Schäfer, in the middle. © SSI Schäfer

materialfluss : SSI Schaefer recently announced its investment in DS Automotion, but did not provide any direct details of the deal. What type of investment are we talking about?
Manfred Hummenberger: It is a strategic partnership in the form of a minority shareholding of 40 percent. It was important to us to ensure long-term cooperation through the financial investment. We wanted to forge closer ties and believe that this will result in considerable benefits for both companies.
Rob Schmit: That is the key point, yes. It was important for SSI Schaefer to develop further in the field of AGVs. DS Automotion is a leader in this field. Now we have the partnership with the possibility of expanding it further in the future.

mfl: How did the idea come about? What was the trigger?
Schmit: We are constantly reviewing our product portfolio in terms of what the market needs. Mobile robots and AGVs are a trending topic that we want to expand. So we thought about how we could expand our portfolio in this area. We were therefore one of the first providers in the industry to implement integrated intralogistics solutions with driverless transport systems in order to meet the increased customer requirements for barrier-free and flexible transportation. With the participation and subsequent acquisition of the Belgian start-up MoTuM NV, Mechelen, we pushed ahead with further research and development work in the areas of swarm intelligence and decentralized control technology from mid-2015. In concrete terms, this means working with smaller companies with a market presence in which we ideally have a stake. This is how the idea of cooperation came about. Through the competence partnership with DS Automotion, we are living up to our strategic orientation.

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mfl: What was the argument for giving up some of the autonomy, Mr. Hummenberger?
Hummenberger: We don't see the investment as giving up our independence, quite the opposite. We sought the partnership because we wanted to secure our very good business development to date and continued growth in the long term with a strong partner like SSI Schaefer. That was important to us. There is a lot going on in the market at the moment and the partnership opens up new opportunities for both sides. SSI Schaefer has around 70 branches worldwide. As a partner of SSI Schaefer, we can utilize and benefit from the company's know-how and presence in the local markets. This enables us to serve our customers in the best possible way, particularly in the continuously growing intralogistics business segment.

mfl: What other areas does DS Automotion cover?
Hummenberger: We are strongly represented in the automotive industry, where we focus on assembly systems. We are also active in the hospital logistics sector. Our expertise in large-volume AGV systems and our DS Navios software, the intelligence behind the solutions, are particularly noteworthy.
Schmit: These areas are very interesting for SSI Schaefer. The assembly line is not a core focus of SSI Schaefer, so we are organized in a complementary way.

mfl: What will result from the collaboration in terms of organization and personnel? Will everything stay as it is? Also as far as the location of DS Automotion is concerned?
Wolfgang Hillinger: Not much will change. We are coordinating strategically and want to serve the growing AGV market in the best possible and most efficient way. Other topics such as locations are not currently under discussion and can be ruled out at the present time. As you can imagine, the issue of finding employees is also difficult for us in Austria and the more centralized you become, the more complex it gets.

mfl: Will the DS Automotion brand name be retained?
Schmit: SSI Schaefer has already entered into cooperation agreements with financial participation in which the brand name has been retained. DS Automotion is a strong brand and we have absolutely no interest in changing it.

mfl: How do I imagine the two companies working together in practice?
Hillinger: There are regular coordination meetings - on site or via the web. We discuss customer inquiries and look for the best and most efficient solution. It is important to us that our solutions meet the market requirements so that SSI Schäfer can offer integrated logistics concepts together with our AGVs.

mfl: The press release talked about the integration of DS systems and further development, can you be more specific here?
Hummenberger: We are still at the beginning here and have ideas that we cannot yet present to the public. SSI Schaefer uses our solutions as a system integrator and SSI Schaefer's ideas for our products are being taken on board and developed further. One example is the best possible adaptation of our fleet management system to SSI Schaefer's Wamas warehouse management system. We are working intensively on the integration of vehicles and vehicle types; we will communicate concrete details at a later date. Our in-house T&E department is also constantly developing new technologies and vehicles.

mfl: I'm curious: will we see any of this at LogiMAT?
Hillinger: Yes, we can reveal that much. At the moment we are in an intensive exchange with SSI Schäfer.

mfl: Gentlemen, you are allowed to praise each other here. Mr. Schmit, what do you appreciate about DS Automotion?
Schmit: Not just because we're sitting here together: The cooperation with Mr. Hummenberger and Hillinger is very, very good. What we as a company also appreciate about DS Automotion is its many years of comprehensive product expertise. We also have the opportunity to penetrate new markets. These are wonderful opportunities. In addition, DS Automotion is not only able to realize extremely complex vehicles, but also to manufacture and deliver fleets with many vehicles on time. The majority of suppliers are currently unable to do this. They can deliver two vehicles, but putting together customized fleets of fifty to seventy vehicles is quite a challenge.
Hummenberger: I can only return the praise for the contacts at SSI Schaefer, especially Mr. Schmit. We talk at eye level and are very solution-oriented, which we like. What really impresses us about the SSI Schaefer Group is the flexibility and what SSI Schaefer has achieved in a short space of time in the field of automation. In addition, there is no rigid corporate mentality in the Group, and we also benefit from its internationality.
Hillinger: The chemistry between us is very good and working together is extremely pleasant.

mfl: Is intralogistics now complete at SSI Schaefer?
Schmit: You are never complete, the market is growing and developing and with it the need for new technologies and products. We are now somewhat more open to entering into partnerships with companies than in the past, yes. However, I cannot and do not want to reveal what the future holds here at this point and ask for your understanding.

mfl: AGVs are a trending topic in modern warehouse logistics. How and what do you want to develop further?
Hillinger: The development of product families and standardization are very important to us. Specifically, we will be launching a completely new product family called Amadeus in 2019, which relates specifically to driverless forklift trucks. For the production logistics sector, we will be launching a new generation of underride vehicles called Oscar omni. Both will be on display for the first time at LogiMAT, in our new signature design.

mfl: A double premiere ...
Hillinger: And with SSI Schäfer even a triple.

mfl: What trends do you see in the AGV market? Standardization has already been mentioned, as well as the ability to deliver large fleets quickly. What else?
Hummenberger: Not an easy question, admittedly. A lot is happening in this area at the moment. It's all about offering the right products with the right technology for the right application. We are not a start-up that is just trying things out. We are a company that offers well-functioning and reliable products. Continuous improvement is the goal; sensor technology and energy supply are recurring themes. The wheel is turning faster and faster. There is no specific area that attracts increased attention.

mfl: Gentlemen, thank you for your frank words and
the conversation.

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