When companies outsource logistical processes, they have to be willing to integrate an external partner deeply into their own value chain. Nagel-Group’s track record of consistently being a dedicated service provider and strategic advisor to its customers in this respect is evidenced by the many long-standing customer relationships it enjoys. Nagel-Group has run an in-house operating model with food manufacturer Unilever for more than 20 years, enabling both business partners to efficiently exploit their respective expertise.
For many companies, logistics traditionally comprised warehousing and transport in the main; nowadays it also embraces a wide range of other tasks such as order picking, display setup, co-packing and packaging. At the same time, market requirements are becoming more and more demanding: international supply chains, real-time tracking and shorter delivery times and intervals call for a high degree of specialisation. There are specific guidelines and laws that must also be compliance with throughout all logistical processes when handling food in particular, such as maintaining the cold chain, duration of transport and product-appropriate storage.
But for companies to take logistics into their own hands, they have to build up and commit resources and infrastructures in a business area that is beyond their own area of expertise. This is why it has become an economical and widespread business model to outsource the whole logistics function to a suitably qualified partner. Many Nagel-Group customers have also discovered for themselves how successful this form of cooperation can be. They not only benefit from extensive and long-standing expertise, but also from an unparalleled network in Germany, meaning they can react flexibly to market trends and expand their target markets.
OUTSOURCING IN-HOUSE LOGISTICS
Nagel-Group offers bespoke in-house solutions for customers who want to retain constant access to their logistical processes with all the benefits of outsourcing. The food logistics company has been working with Unilever on this basis since 1994. TLB GmbH, a subsidiary of Nagel-Group, is taking over the entire commercial and administrative handling at the food and consumer goods manufacturer’s Heppenheim and Wunstorf sites. “The frozen warehouses, with a combined capacity of around 87,000 pallet spaces, are dedicated warehouses owned by Unilever. Unlike the multi-user concepts that are also frequently used, the customer alone determines here if and how third parties are integrated into their processes,” explains Ilario Jultschy, Managing Director of TLB GmbH. “In this way, Unilever always retains authority over the available resources.” The client also provides the Extended Warehouse Management System (EWM) that TLB works with. This reduces interfaces, workflows become more efficient and the stakeholders are integrated in all activities.
All commercial processes relating to the storage and picking of fresh and frozen goods such as ice cream and other frozen foods, such as vegetables and fish, are in the hands of the service provider. Intralogistical processes such as incoming goods, outgoing goods and storage are managed independently by the logistics experts. TLB also takes over all staff-related tasks: “We organise all the recruiting, place job ads and conduct interviews. As is the case everywhere, recruitment is currently a significant challenge in our sector. We make sure that the right people are in the right place though,” Jultschy confirms. Other services such as packing and automated layer picking are included in the tasks that TLB takes on for their customer. A separate technical department with the necessary expertise in refrigeration technology also ensures that the sites are in perfect condition at all times to guarantee optimal operations.
PARTNERSHIP WITH ADDED VALUE
The long-standing cooperation between Unilever and Nagel-Group has developed over the years into a synergistic partnership in which both sides share a common aspiration: to constantly improve and optimise processes. This spirit of innovation can be experienced every day in Heppenheim: “We have implemented fully automated processing at the Heppenheim site from consignment acceptance to onward transport since it was commissioned in 1994. That’s more than 28 years,” says Ilario Jultschy. “The packages are fed directly from the truck to the high-bay warehouse via a rail system. The pick-up devices drive independently to the storage locations and deliver the packages to the transport.” Right from the start, layered order-picking has also been automated, adds Jultschy: “Our robots independently assemble the goods in layers according to the customer’s wishes. This saves us a huge amount of time and manual steps and makes the processing very efficient as a whole.” It is not only in online retail that smooth logistical processes have become a relevant quality feature. Reliable service providers with wide-ranging expertise are also much sought after in the food industry. The long-standing cooperation between Unilever and Nagel-Group is an excellent example of how manufacturers and logistics providers can develop future-oriented solutions in partnership and reap the benefit of valuable synergies.