Contract logistics

How SMEs score points with global players

Even as a medium-sized logistics company, you can win over global players. With its expertise in contract logistics and e-commerce, pfenning logistics has expanded its business with well-known international customers in recent months.

© pfenning logistics

With new customers and the expansion of business with existing customers, pfenning logistics is able to continue its three-year growth trajectory this year. "It pays to be bold and invest in the future," says Matthias Schadler, Managing Director of the Baden-Württemberg logistics company since 2016, which is one of the top trade and contract logistics providers in Germany. Over the past two years, the company has invested in the expansion of its logistics network of 90 locations, in the expansion and modernization of its vehicle fleet and in the implementation of its digitalization strategy.

Increasingly automated processes - from order call-offs to shipment tracking and delivery documents - ensure lean and transparent business processes at the logistics provider. "As a logistics service provider, we want to keep pace with the increasing level of automation in the industry and help our customers to align their supply chains with the requirements of Industry 4.0," says Schadler. Signs of increasing automation and digitalization are ever shorter production cycles and delivery times.

The dynamics in warehousing and logistics processes have recently increased significantly due to digitalization. "Product and sales markets are turning at record speed," observes Schadler. "E-commerce is changing consumer habits and distribution channels, and products must be available anytime and anywhere."

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E-commerce expertise for baby products
pfenning logistics has been able to score points with international customers in recent months thanks to its logistics expertise in the field of e-commerce. For example, the logistics specialist has developed the company Cybex for the new Monsheim site, one of the global market leaders for baby carriages, child seats, high chairs and baby carriers. Cybex has been part of the listed Chinese parent company Goodbaby from Kunshan since 2010 and will be moving its entire product range to pfenning logistics' "multicube rheinhessen" in Monsheim at the beginning of next year. The new logistics property, for which the foundation stone was only laid in June, will become the company's European distribution center once it is completed.

The global player will occupy almost all of the 55,000 square meters of warehouse space. "We are delighted to have found the ideal logistics hub for supplying our dealer network in pfenning logistics' new location," says Lutz Müller, Managing Director of Columbus Trading-Partners GmbH, the distribution company belonging to Cybex. The product range of the multiple design and safety award-winning manufacturer of juvenile products comprises around 1,500 items.
"We are particularly pleased to have gained the trust of the global player Cybox with our expertise in complex logistics services," comments Schadler. With the multicube rheinhessen, the logistics service provider is creating optimal conditions for the storage and distribution of baby products, which will be managed by 200 employees.

High security of supply in the country
of the world logistics champion
Internationally active companies such as Cybex feel at home in the country of the world logistics champion. According to the Logistics Performance Index (LPI), it is the trade and transportation infrastructure that makes Germany so lucrative for foreign partners. As one of the leading retail logistics providers in Germany, which serves the branch structures of many well-known retail and food companies across the country, pfenning logistics reflects these structures. With a total storage area of almost 330,000 square meters and a fleet of 650 vehicles, the logistics company has sufficient storage and transport capacities. This ensures a high level of supply security, even in times of scarce loading space resources.

From 2019, the new logistics center in Monsheim will not only serve stationary retailers, but also online customers. As part of its comprehensive transport management, the service provider coordinates both the procurement and distribution side; pfenning logistics takes care of some of the transportation with its own fleet of trucks.
What does the medium-sized company's further expansion strategy look like? "We must ensure that the shortage of specialists and managers does not become a regulating factor for the growth of our industry," warns Schadler, who sees increasing personnel requirements for Germany's logistics companies as a result of digitalization. The IT skills of logistics specialists are becoming increasingly important and are presenting the industry with growing challenges: "Good IT specialists would rather go into IT than logistics," observes Schadler. Collaboration with international customers also requires increased language skills.

Taking responsibility as a
family business
With a nationwide employer branding campaign under the motto "Part of your Future", the company aims to strengthen its attractiveness as an employer and recruit talented young people for a career in logistics. "In the campaign, we are highlighting precisely those factors that make us attractive as a medium-sized company for our national and international customers," explains Schadler. "We are a family business". This idea ensures a high level of identification and motivation among employees. "The responsibility for each other and the obligations to each other - that's what makes us strong. Our customers feel that too."

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