Interview with SSi Schäfer's CEO

Martin Schrüfer,

"It is important that the direction is right"

materialfluss editor-in-chief Martin Schrüfer (l.) and SSI Schaefer's CEO Steffen Bersch in conversation. © SSI Schäfer

During Logimat, materialfluss editor-in-chief Martin Schrüfer spoke at length with Steffen Bersch, CEO of the SSI Schaefer Group.

Intralogistics is a dynamic industry with high demand and complex technological challenges. SSI Schaefer, a regular at the top of the materialfluss Top 25 system integrators ranking, believes it is well prepared for this and well on course for the future.

materialfluss: Mr. Bersch, you experienced your first Logimat since taking over the management of SSI Schaefer in early summer due to the corona break, what impression do you have?

Steffen Bersch: A very positive one! I was initially concerned about the number of visitors, but the response was really great. It shows that our portfolio meets customer needs. During the lockdown period, we naturally also had contacts and the projects continued, but we had to improvise a little.

mfl: You have been CEO of the SSI Schaefer Group for two and a half years. What is your balance sheet so far?

Bersch: For me, it was initially an introduction to a new industry, a very dynamic and, as I discovered, very demanding one. In the past, the importance of intralogistics was not perceived in the same way, but this is by no means the case today. We are talking about an industry with high demand and complex technological challenges. In terms of SSI Schaefer, I can say after my first two years that we are on a very good course and have taken important steps.

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mfl: What makes the industry so dynamic?

Bersch: The drive towards automation was already there before the pandemic, but this has accelerated it significantly. SSI Schaefer is one of the companies that can offer solutions for this and, in particular, is able to implement complex projects. This gives us a special role within this trend.

mfl: In February 2022, you also took over the chairmanship of the VDMA's Materials Handling and Intralogistics Association. Was the time ripe for this?

Bersch: Oh, you don't choose that. I was already active in the VDMA before in another trade association, so I'm not completely unknown there. I was happy to volunteer because I think that the VDMA gives the entire industry a voice. You should be part of that. We are very active in the field of digitalization and automation and try to create platforms. The VDA5050 interface is a prime example of this. We also have many topics that affect everyone, competition or not: how to inspire young people to work in intralogistics, for example.

mfl: What's coming up in your third year?

Bersch: First of all, we are focusing more strongly on technology and innovation as part of our corporate strategy. Essentially by promoting our own development activities, but also through partnerships. We are also taking the next steps in the area of sustainability, including the publication of our first sustainability report in August this year. There are numerous projects aimed at reducing our CO2 footprint. But we also want to make our business activities more sustainable. The topic of customer satisfaction is of central importance. We therefore measure very intensively how satisfied our customers are with us at the various touch points, such as sales and service. The satisfaction of our employees is also crucial. They have achieved a great deal in these difficult times.

mfl: Can you compare the impact of the pandemic with that of the Ukraine war? Is the latter worse for companies?

Bersch: I think so. We were able to find a kind of modus operandi for the pandemic. The consequences of the war in Ukraine, with increased energy costs and the disruption of supply chains, posed enormous challenges, especially for complex projects, which had to be managed properly.

mfl: Cutting back in view of the current situation?

Bersch: It is important that the direction is right. The top priority is to focus on customers and employees. Then come issues such as growth and profitability. Modern technologies and solutions are rightly demanded by the market and form the basis of our activities. As far as sustainability is concerned, this only takes a back seat because it is essential. Politicians have set far-reaching targets for companies that need to be addressed.

mfl: From the outside, the impression is that the number of departures at SSI Schäfer at prominent management level has decreased and calm has returned...

Bersch: There have been both departures and additions, which is not unusual in such a strong transformation phase. We have established a structure that is divided into business divisions and regions, plus the Group functions and the plants. All the top positions here are now competently filled.

mfl: Did the transformation at SSI Schaefer start too late?

Bersch: To be honest, that could have been done earlier. This is also completely normal for family-run companies that have established themselves well in a market sector. Here, transformation doesn't always take place continuously, but is initiated. That's the difference to capital market-oriented companies, which are completely transformed every two years, so to speak.

mfl: Let's talk about sustainability. What progress has been made since SSI Schaefer was included in the Top 50 Sustainability & Climate Leaders?

Bersch: The European Union's Green Deal requirements mean that companies above a certain size have to provide information about their sustainability. This also applies to us. As already mentioned, we will therefore be presenting a sustainability report for the first time in late summer this year. This will follow the GRI standards and will also be published widely. This is a big step for a company like SSI Schaefer, which traditionally does not publish figures.

mfl: Are there also numbers in there?

Bersch: Figures and targets for the coming years are also mentioned. You have seen that we have reported incoming orders and sales for the first time this year, at least in terms of the trend. That is a first. It shows that we are trying to communicate more openly to the outside world, and internally we are even doing this very openly. This can also be unusual for a family business, but it shouldn't be. Our employees deserve to know where their employer stands.

mfl: Is the primary goal of sustainability currently a secondary goal?

Bersch: In view of the major challenges, there is certainly a risk - but sustainability must remain a primary objective. In the short term, we thought it would be further down the agenda, but current developments surrounding energy shortages and rising energy costs have taught us otherwise.

mfl: Do you have too many strategic balls in the air?

Bersch: No, by no means, we have to deal with it. Crises are promoters for new topics. Our generation hasn't really had to experience that yet, it's different now.

mfl: In 2020, you mentioned growth and internal synergies as goals. What about the latter?

Bersch: You should never be satisfied, but in 2019, software, automation and component suppliers were perceived as more self-sufficient. Now the collaboration is working much better, and the effects are also reflected in the figures. Setting up a multinational company functionally - that was the way to go. Does this always happen as quickly as we would like? Not always, but the organizational form drives the synergies.

mfl: In what context can the founding of SSI Plastics be placed?

Bersch: This is not a foundation, but an internal carve-out. Previously, we managed the division in such a way that many different components were integrated into one company unit. We didn't find this very effective and so everything related to waste technology and the container business - whether it be plastic or steel - was set up as an independent subgroup. Now we want to see whether we want to continue to operate this area ourselves or possibly with a partner. Or sell it. No decision has been made yet. We have no time pressure in this regard. SSI Plastics presented itself independently for the first time at IFAT and the same will happen at Fachpack in Nuremberg. The sector is attractive, but has often not received the attention it deserves in concert with logistics.

mfl: Automation, Software, Plastics - is that the current three-way split?

Bersch: Roughly speaking, yes. We have Products & Equipment, i.e. the classic components business, Logistics Solutions, intralogistics solutions, the service business and Plastics.

mfl: What about acquisitions?

Bersch: We have acquired the company Swan, i.e. expanded our SAP activities, and are working on other topics in the areas of technology, automation and robotics.

mfl: In other words: everything except service (laughs).

Bersch: We are always looking for technologies, but we don't chase after pipe dreams. It's about technologies that we can trust and that have a certain degree of maturity. We saw many great technologies at Logimat, but they are still in their infancy. We support start-ups and gather experience, but whether we can then use this technology in large projects is another question.

mfl: Is robotics "the next thing" or is it the software?

Bersch: In the end, the robot also lives from the software that runs it. I'm convinced that the music is always played on the software side.

mfl: And in the warehouse? Conveyor technology or AGV?

Bersch: It depends on the application. We will see a strong development in AGVs, but not the death of conveyor technology.

mfl: The wave of consolidations continues unabated. Is SSI Schaefer big enough to sit back and relax?

Bersch: You can never be relaxed, you always have to know your position. That's a rather vague answer, but rest assured: We are constantly looking at the market and at development opportunities for us.

mfl: Mitsubishi would not have a partner yet ...

Bersch: I know others who don't have a partner. M&A is not an issue for us at the moment.

mfl: Will intralogistics SMEs still exist in 2032?

Bersch: I think so, because the market is so diverse that it is unlikely that a few big players will cover the entire market. In other sectors, the end of the midmarket has already been predicted, it just never happened. Certain customer groups and sizes want to work with certain supplier sizes and so on. Whether the market structure will look like it does today is another question. Size matters - large corporations will try to grow. Will that always bring synergies? I don't know, there will be good and bad examples.

mfl: Mr. Bersch, thank you very much for the interview.

The article appeared in materialfluss 8-9/22.

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