f+h Intralogistics 5/2016

Intralogistics
Trade magazine for material flow and material management
INTERNATIONAL
EDITION
5
December 2016
Jungheinrich celebrates 60 th
anniversary of reach truck
World trade of tomorrow — radical
change from quantity to quality
Process efficiency thanks to Continuous
SAP EWM Material Flow Control
5 tips on successful personalization in
the B2B shop
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EDITORIAL
Reachable any time
and everywhere?
My home is my castle, as they say. But increasingly the peace and tranquility of
that castle is being disturbed. By what, you may ask? Smartphone and friends are
the villains. On the one hand, our mobile devices accompany us day to day so we
can be reached at any time for business and social matters. On the other hand,
communication doesn’t stop at the moat, or rather the door to our houses. And so
we find ourselves often reaching for the smartphone to keep up with the communication
process. But sometimes we should also turn those devices off, or at least
be able to do so, although not infrequently many of us seem to forget that. At least
that’s the conclusion of the Yougov opinion survey institute. According to a recent
survey of market researchers, almost half of the labor force in Germany receives
business e-mails after hours. About a third of the respondents checked their
business e-mail account at least once during their
last vacation. And while that may not appear
dramatic at first, being constantly reachable does
have its dark side. This is confirmed by a study of
the German Initiative for Health and Work (Iga).
About a fifth of those surveyed felt that being
constantly reachable had negatively impacted their sleep or recreation time.
Possible downsides include health problems caused by stress such as high blood
pressure and mental-health disorders including depression. Given these consequences,
each of us would be well advised to see to it that our home remains our
castle – at least now and then. Ultimately your job will benefit from it.
Being constantly reachable
does have its dark side
Winfried Bauer
Editor-in-chief
(w.bauer@vfmz.de)

News and information from the
entire world of intralogistics
An overview of the overall dynamics
of the growth of logistics sector in
India
Beumer uses its CL-Systems
division to implement complex
conveyor solutions worldwide
Intralogistics
Trade magazine for material flow and material management
Visitors to CeMAT India can get
an initial impression of the
competence of Indian industry
A study gives an insight into existing
success models of strategic supplier
management
TABLE OF CONTENT
COLUMNS
Editorial
Worldwide news
Imprint
Product news
GLOBAL BUSINESS
World trade is experiencing radical
change – shifting from quantity to
quality
India’s logistics industry is poised for
huge growth
BULK MATERIAL
HANDLING
Conveying & Loading Systems:
a powerful global partner
CEMAT INDIA PREVIEW
Guest commentary:
CeMAT India – Intralogistics showcase,
embedded in industry
Product innovations
INDUSTRIAL TRUCKS
Jungheinrich celebrates
60 th anniversary of reach truck
WAREHOUSING
Process efficiency thanks to continuous
SAP EWM Material Flow Control
LOGISTICS MANAGEMENT
Study about strategic supplier
management for agile process
design
E-BUSINESS
5 tips on successful personalization
in the B2B shop
f+h Intralogistics 5/2016

More endurance. More performance.
16 hours with one single battery charge.
Learn more now at:
jungheinrich.com/2shifts
f+h Intralogistics 3/2016 5

1
2
WORLDWIDE NEWS
3
f+h Intralogistics 5/2016

1
2
Rhenus opens its first office in South Korea
The Rhenus Group opens its own business site in South Korea. The
logistics sercice provider also founded the national company known as
Rhenus Logistics Korea at the same time. The office in the South Korean
capital Seoul will organize sea and air freight operations, third-party logistics
and domestic transport services in future.
www.rhenus.com
Siemens extends service agreement with
Cathay Pacific Services Ltd
Siemens Postal, Parcel & Airport Logistics (SPPAL) has received an order for
the continued operation and maintenance of the cargo handling system of
the Cathay Pacific Cargo Terminal in Hong Kong. The extension of the
service agreement by several years is based on jointly defined key performance
indicators (KPIs) and ensures the highest standards throughout the
terminal. With a floor area of about 240,000 m 2 – the size of almost 34 soccer
fields – it is one of the world’s largest cargo terminals
www.siemens.com
4
3
Dunajska Streda Logistics Centre expands
The hub terminal operated by the HHLA rail company, Metrans, in
the Slovakian town of Dunajská Streda has become the heart of a trans-European
logistics center. A new rail connection to Trieste and the expansion
of the adjacent logistics areas are intended to ensure further growth.
The success of the hub terminal is based on centrally pooling container
shipments, which are regularly hauled by block train to the ports of Hamburg,
Bremerhaven, Koper and Trieste, or which come from there. Trucks
are usually used for transportation to or from the core markets of Slovakia,
Austria and Hungary.
5
www.hhla.de/en/home.html
4
Christophe Lautray at the head of FEM
The European Materials Handling Federation (FEM) elected
Christophe Lautray, Chief Sales Officer Linde Material Handling, as its new
President on the occasion of the Biennial Congress Bordeaux/France.
Previously, Lautray had served as Vice President. Following this election, he
will lead the European Materials Handling Federation for two years. The
FEM based in Brussels/Belgium represents manufacturers of materials
handling, lifting and storage equipment and their interests vis-à-vis the
European institutions and partners.
www.linde-mh.com
5
“The King of the Caribbean” −
Liebherr mobile harbour crane LHM 600
Liebherr Maritime Crane recently delivered the biggest mobile harbour
crane of the Caribbean to Kingston Wharves Limited in Jamaica. The new
Liebherr MHC, type LHM 600 high rise version is equipped with an
elongated tower extension that ensures high visibility into deep cargo holds.
With a maximum outreach of 58 meters, twin lift capability and a lifting
capacity of 104 tons, the LHM 600 is capable of servicing vessels up to 19
container rows wide and 9 container stacks high.
www.liebherr.com
f+h Intralogistics 5/2016

World trade is experiencing radical change
– shifting from quantity to quality
New production methods, comprehensive networking
solutions, and increasingly rapid flows of goods and
information are setting the parameters for world trade
of tomorrow. Logistics are not just part of these
changes but are driving them.
There’s something big in the offing for Hamburg! Mega-ships with
a capacity of more than 20,000 standard containers are headed
for one of the most important ports in northern Europe. Hamburger
Hafen und Logistik AG (HHLA) has already prepared berths 5/6 of
its container terminals for the arrival of the mega-freighters. Five of
the most modern tandem container bridges with their 74-meterlong
jibs will process the largest ships in the world, lifting a payload
of almost 100 tons.
According to HHLA’s estimates, when a 20,000 TEU ship docks,
between 11,000 and 14,000 TEU are handled at one terminal per
call. “The peak loads that must be handled are enormous, whether
it’s water-side handling, warehouse storage, or port-to-hinterland
transport,” says Jens Hansen, Managing Director of the Burchardkai
Container Terminal (CTB). Hamburg is an important hub on the
route between Asia and northern Europe, one of the world’s “trade
superhighways.” On the harshly competitive transport markets,
About Dachser SE
As one of the leading logistics specialists worldwide,
Dachser posted total sales of 5.6 billion euros in 2015.
Founded in 1930, the family business has 26,506
employees around the world at 428 locations. The
Dachser business model includes transport logistics,
warehousing and customer-specific services within two
business divisions: Dachser Road Logistics and Dachser
Air & Sea Logistics.
shipowners and port operators have to stay one step ahead of the
competition by implementing efficiency measures and managing
capacity utilization wisely.
While these container giants may seem like the prestigious
flagships of globalization, the environment in which they will be
operating is anything but simple. The container shipping industry is
battling overcapacity. But it isn’t just the volatility on the sea freight
market that is depressing the overall mood. The World Trade Organization
(WTO) just recently downgraded its growth forecast for
world trade: 2.8 percent are predicted for 2016. “The curve is moving
upward for world trade, but its speed is disappointingly slow,” says
Roberto Azevêdo, Director General of the WTO.
RUBRIK GLOBAL BUSINESS

As some of the reasons for this, the WTO mentions the cooldown of
the Chinese economy, the increasing unpredictability of the
financial markets, and low commodity prices. Nevertheless, Asia is
still leading the pack with 3.5 percent growth, followed by Europe
and North America at 3.1 percent.
Monday, April 18, 2016, Shanghai:
As a sales market, China is
constantly growing. This
means that the demand for
high-quality logistics services,
for example, warehousing and
contract logistics, is also
increasing
Edoardo Podestá,
Managing Director Dachser
Air & Sea Logistics
Asia Pacific
Yangshan port in Shanghai is bustling. It is one of the largest freight
terminals in the world, handling more than 33 million standard
containers every year. The cranes and container bridges are working
at full tilt, moving the huge steel boxes around like so many
colorful Lego bricks. China’s biggest gateway to world trade is just as
busy as ever. This afternoon, there’s no sign of a sluggish Chinese
economy. Edoardo Podestá, Managing Director Dachser Air & Sea
Logistics Asia Pacific, is not surprised: “Due to its dynamic nature
and its multifaceted potential, China is and continues to be a market
of superlatives—and people always have very high expectations
of it.” Dachser has been doing business in China since 1976; the first
stepping stone back then was an office in Hong Kong. Today, the
logistics provider not only has several offices in China but is represented
in Singapore, Taiwan, Bangladesh, India, Indonesia, Malaysia,
South Korea, Thailand, and Vietnam as well. The company has
roughly 1,500 employees at more than 55 locations in the APAC
region.
As a sales market, China is constantly growing. “This means that
the demand for high-quality logistics services, for example, warehousing
and contract logistics, is also increasing,” Podestá says.
Dachser has registered high growth rates in the intra-Asian
market. Trade routes have long since ceased to run solely between
the Old and New Worlds and China. Now emerging markets play a
major role in Asia’s economic development, too — for example,
when Chinese consumers furnish their bathrooms with fittings
from India or equip their homes and businesses with solar panels
from Taiwan, one of the largest producers of solar cell technology in
the world. In recent years, India, Bangladesh, and Thailand, in
particular, have established themselves successfully as locations for
industry and hubs for intra-Asian trade. In these three countries
alone, Dachser now has more than 700 employees.
“The complexity of our services has grown substantially,” Podestá
points out. “For example, these days we do more for automotive
OEMs and second- and third-tier suppliers than just import parts
from Europe: we offer them our entire range of logistics services.”
In the Asia Pacific region, Dachser is focusing particularly on multinational
companies and SMEs, who value having an experienced
partner like Dachser. According to Podestá, more and more
customers are interested specifically in a one-carrier strategy:
“They want to take advantage of Dachser’s tried-and-trusted quality
services in Asia, too – maximum transparency, integrated overland,
air, and sea freight networks, standardized IT systems, and
customer interfaces.”
Networked logistics leads directly from the water to the street
Reset button for reindustrialization
The Wall Street Journal detects a fundamental structural change in
the global economy. A glance at the foreign investments that result
in the outsourcing of jobs to emerging economies suffices. While in
2,000 these jobs were producing four percent of global economic
output, that figure is since down by 50 percent. “Internationalization
is not destiny,” the Wall Street Journal concludes; even trends
that seem set in stone “falter, sputter, or are reversed.”
All of this impacts the worldwide flow of goods. Imports into the
US reached their highest level in 2012 and have been declining ever
since. Additionally, the largest global economy is currently undergoing
a reindustrialization. Because, according to the Wall Street
Journal, China in its role as “workbench of the world” has recently
become increasingly expensive, North America has already recovered
a million jobs.
Thomas Straubhaar, professor of economics at the University of
Hamburg, believes that the “golden age” of trade in the sense of a
mass market is over. “As far as the quantity of trade is concerned, we
have reached—or passed—the peak. We have to pay far more attention
to quality than in the past and reflect this in the changes that
digitalization makes possible.” He concludes that it is imperative to
increase the intrinsic value of exports. According to Professor
Straubhaar, today, it is less about being world champion in the
volume of exports than in value creation.
Friday, April 29, 2016, Mexico City:
Guido Gries, Managing Director Air & Sea Logistics Dachser America,
has arrived from Miami and is on his way to the local Dachser
office. On one of the major arterials, he drives past a car carrier trailer,
its warning lights flashing, which is in the process of unloading a
truck-full of brand new mid-size cars and SUVs at a car dealership.
For the automotive industry, Mexico is a kind of El Dorado. In 2014,
3.2 million cars came off the assembly lines of Mexican automobile
Logistics is creating the
foundation for globalized
value chains, which, in turn,
create more growth
Guido Gries, Managing Director
Air & Sea Logistics
Dachser America
f+h Intralogistics 5/2016

GLOBAL BUSINESS
factories, thus leaving Brazil far behind. Today, with its production
of 3.5 million cars (2015), Mexico is the seventh largest automobile
manufacturer worldwide. They have their eye on the five million
mark by 2020, which would then make them the fifth largest automobile-producing
country in the world. Guido Gries and his team
want to make a contribution to this goal. “Logistics is creating the
foundation for globalized value chains, which, in turn, create more
growth,” he says. Most of Dachser’s customers—both large companies
and SMEs—want to make their mark on the attractive growth
markets in Latin America and the US. “We can support them in
Europe or Asia as they make their way there,” Gries says. As an international
logistics provider, Dachser Americas can score with
customers on markets in the Americas by providing end-to-end
logistics, tailored solutions, and comprehensive one-stop services.
For most of Dachser’s customers in Latin America, the US is their
number one trade partner because it is the largest global economy
and because an increasing number of US companies are relocating
their production facilities closer to their home markets, i.e., away
from Asia to the US and Latin America. “This so-called nearshoring
is a trend among US customers,” Gries says. Argentina, Brazil, Chile,
and Peru, which traditionally have had close trade relations with
Germany and Spain and are key trade partners of the US and China,
are also betting on this trend. “It’s an advantage for Dachser that it
already has a presence on these markets and can provide services
for the automotive suppliers, life sciences, and health care industries
as well as for industrial goods and civil engineering.”
Data that impact the world
A new quality of value creation is that the global economy is more
connected than ever. A recently published study by the McKinsey
Global Institute “Digital globalization: The new era of global flows”
shows that, for the first time, international data flows contribute more
to global economic growth than the classic goods trade. According to
the study, global flows of goods, capital, and data have increased
global economic output by ten percent overall. In 2014, this corresponded
to USD 7.8 trillion, of which USD 2.8 trillion resulted from
international data flows, while only USD 2.7 trillion was generated by
the movement of goods. In the international exchange of goods,
services, finance, people, and data, the United States, Singapore, the
Netherlands, and Germany top the global connectedness rankings.
“International connectedness provides substantial opportunities
for small and midsize companies,” the authors of the study
conclude. “They can develop new markets and customer groups
with relative ease using online platforms.” For example, around
50 million so-called micromultinationals are operating on Facebook.
Of all the start-ups examined in the study, 86 percent are
operating across borders. And 360 million people have already
made online purchases in another country.
Wednesday, May 4, 2016, Johannesburg, South
Africa:
A customer is visiting Dachser South Africa in Kempton Park. Econo-
Heat wants everything—the right thing at the right place at the right
time. For the Cape Town company, this is the formula that makes for
satisfied customers. Econo-Heat is one of the market leaders for wall
panel heaters and heating pads. Today, the company has twelve
branch offices worldwide, providing direct supply to its retailers. In
other countries, sales are being expanded through distributors.
For years, the heating specialist has been utilizing a combination of
Dachser Air & Sea Logistics and Dachser European Logistics. “Econo-
Heat especially appreciates the tracking & tracing option available in
European Logistics, which provides the company with precise information
about the supplied units,” explains Thomas Krüger, Managing
Director Air & Sea Logistics EMEA at Dachser. The units are delivered
throughout Europe from a warehouse in the Dutch town of Waddinxveen
in accordance with Econo-Heat’s requirements.
The task for the logistics experts is both exciting and challenging.
“As a result of the extremely volatile sea freight rates from Asia to
Europe, capacity has been removed from this market and utilized in
other markets instead, for example, transatlantic routes,” Krüger
explains. At the same time, the seasonal peaks, for example, around
the Chinese New Year, have recently been noticeably lower. According
to Krüger one reason is that the order cycles of the major importers
are changing. In the past, there were two customer catalogs,
one in the winter and one in the summer, which contained any special
offers. Today, there are usually four seasonal cycles, and special
offers sometimes change on a weekly basis. “Customer demand is
increasingly short-term, requiring logistics to be more and more
flexible,” Krüger says.
This is also noticeable in the air freight sector. “Customers are
steadily being forced to adhere to certain deadlines although their
production can’t keep up. For example, premium automakers don’t
order the leather for the leather seats until the vehicle has been
completely configured and ordered so that nothing more can be
changed. This is usually four weeks prior to delivery,” Krüger
explains. “As a result, the leather has to be shipped by air freight.”
New smartphone models are also shipped by air freight worldwide
on short notice because companies like Apple or Samsung want to
take advantage of the first rush on the new devices. “World trade is
moving closer and closer to customers and what they want,” Krüger
maintains. “And that’s a good thing. For decades, Beaujolais Nouveau,
a young French red wine, has been flown to its destinations in
full charters so that it is available in stores punctually on the third
Thursday in November when it officially goes on sale.”
The home factory isn’t happening
Where are digitalization and the possibilities that Industry 4.0
offers going to end up? Even though many economists are forecasting
that 3-D printing will change on-demand production
chains, especially in the automotive industry, and will eliminate
trade with certain goods, digitalization should bring positive
effects for the logistics industry. Cyrus de la Rubia, chief economist
at HSH Nordbank AG, is convinced that “digitalization will
enable value chains, in particular, to be made more efficient. In
other words, digitalization and trade are complementary to one
another.” In the long term, de la Rubia does not think that
consumers producing their own products with 3-D printers and
bailing out of customary supply chains will be a realistic option.
On the UPo Entrepreneur Platform, he estimated the demand for
imported goods and commodities to be undiminished, especially
for emerging nations; “We are noticing a reduction in container
transport in China, however, we see a moderate increase in bulk
carriers and tankers. So a widespread decline or an end of trade is
not likely by any means.”
Photos: lead HHLA, others Dachser SE
www.dachser.com
Customer demand is
increasingly short-term,
requiring logistics to be more
and more flexible
Thomas Krüger,
Managing Director Air & Sea
Logistics EMEA at Dachser
f+h Intralogistics 5/2016

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India’s logistics industry
is poised for huge growth
RUBRIK GLOBAL BUSINESS
Sushen Doshi
An overview of the overall dynamics of the logistics
sector in India, along with a short analysis of the top
Indian cities with high potential to be effective
logistics clusters and the effect of government’s latest
taxation policy that is aimed to create a big boom for
the industry.
In the recent times, India’s logistics sector has been transforming
constantly. With the country’s economy continuously expanding,
the growth of entire logistics network is absolutely essential in
assisting Government of India’s “Make in India” strategy. The logistics
industry plays a pivotal role in reducing costs by improving
efficiency and increasing competitiveness. The chemistry between
developing infrastructure, technological advancements and evolving
demand is likely to define how the logistics in India, is going to
help the companies in reducing costs. Interestingly, the change in
government taxation policies and regulation of logistics service providers
is going to be one of the most important factors in the process
of development of this industry.
Sushen Doshi, correspondent India for f+h Intralogistics
Logistics
Compared to the situation at the end of 1990s, the Indian logistics
sector has come a long way. The integration of the fragmented components
of the logistics sector such as services, transportation,
packaging, tracking and warehousing etc., has brought India’s logistics
industry to its current growth state. Shifting from its traditional
“godowns” to functional warehouses has surely made the logistics
sector much more efficient. To understand where India’s logistics
sector stands today, let’s take a look in comparison to United States
– developed economy and China – a market similar to India.
In the context of logistics costs as a percentage of GDP, India
stands at 13 %, United States roughly between 8-9 % and China at
18 %. If we split up the cost of logistics into 3 parts namely transports,
warehousing and miscellaneous, let’s see which of the parts
contributes more towards the overall logistics costs. In India’s case
the share of transport in the overall logistics cost stands to 63 %,
warehousing at 29 %, whereas the US has 67 % in transport and 22 %
in warehousing and China has 52 % and 45 % in transport and warehousing
respectively. Major industry sectors driving the logistics
market in India are Auto components, Cement, Pharmaceuticals
and textiles. Whereas the e-commerce along with food and beverages
drive the US market. China’s logistics market is driven mainly
by the metals, electronics and textiles due to its high exports. Major
challenges that India’s logistics companies face are inadequate road
and rail infrastructure, lack of inland waterways and huge waiting
times at the state-borders for inter-state taxation. The US has highly
sophisticated transport network from rail, road and inland waterways
as well, but the higher employee wages is a major challenge for
the Americans. While the employee cost in China is obviously not as
f+h Intralogistics 5/2016

high as America, but China will certainly be facing a shortage of
trained manpower in not so distant future.
When you compare the numbers with America and China, India
doesn’t seem to be far off. But this is not the case, although India’s
logistics sector has come a long way, it still has a lot more to achieve
in order to stand out in the global market. Primarily, there has to be
further more improvement of the transportation as well as warehousing
and storage.
A strong infrastructure is backbone of the country
India has the second largest road network in the world at 4.7 million
km. Transportation, the largest stakeholder in the logistics pie in
India, is primarily by roadways, with nearly 60 % of the goods transported
via road. Thus, India depends on the costliest mode of travel
(road) for majority of its domestic freight transfers. Although India
has the 2 nd largest roads network in the world after USA, in terms of
quality of road, its lags significantly behind others. However, a lot is
proposed in India for infrastructure development, Government of
India has earmarked an investment of $ 1 trillion for infrastructure
during the 12 th Five-Year Plan (2012–17). The construction of highways
had reached an all-time high of more than 6,000 km during
2015-16, and the increased pace of construction is expected to
continue for the coming years.
GST: bringing India under a single market without
any state borders
In the story of modern India, i.e. post liberalization of the Indian
economy in 1991, GST is the biggest reform in the country yet. GST
is the “Goods and Services Tax”, a comprehensive indirect tax on
manufacture, sale and consumption of goods and services throughout
India. Basically under the GST system, all the taxes from the
central government to the state government are amalgamated into
one. This would mitigate cascading or double taxation, facilitating a
common national market. This creates a more efficient, neutral and
a systematic tax system throughout the country. From the consumer
point of view, the biggest advantage would be in terms of a reduction
in the overall tax burden on goods, which is currently estimated
at 25 %. GST would replace most taxes currently in place such as
(Table).
Central government taxes
Central Excise Duty
Service Tax
Customs Duty
Central Sales Tax
Central Surcharges
State government taxes
Value Added Tax
Value Added Tax
Value Added Tax
Luxury Tax
Sales Tax
With the onset of GST, the physical state boundaries lose their significance
from the taxation point of view, supply chain dynamics
and market forces of demand would rule supreme. Free movement
of goods from one state to another without stopping at state borders
for hours for payment of state tax or entry tax would result in huge
improvement in efficiency and timely delivery of goods. The implementation
of GST would add 2-4 % to the logistics growth in India.
At present, a complicated tax regime with poor infrastructure has
resulted in exorbitant logistics costs in India. It is now 14 % of the
total value of goods as compared to 7-8 % in developed countries.
The reforms proposed in the GST will look at re-engineering the
supply chain architecture with fewer and larger strategically placed
distribution centers along with smaller warehouses for daily “to and
fro” runs. Apart from harmonization of warehousing space, companies
are also taking this opportunity to give high importance to
operational efficiencies and safety standards in the new warehouses
with the use of vertical racking, automated conveyor systems, fire
sprinklers, hydrant systems, etc. Thus, GST is expected not only to
optimize the supply chain networks, but also to bring in high-quality
international standard warehouses in the Indian market.
Warehousing
Storage and warehousing is the second most important component
in India’s logistics sector. The Indian warehousing sector is gradually
shifting from unorganized to organized mode, and more highquality
warehouse spaces are being developed. With the modernization
of the supply chain, warehousing has become a critical function,
and today, warehouses not only provide safe custody for
goods, but also offer value-added services, such as sorting, packing,
blending and processing. These high-quality warehouses require
automation and safety in operations and would be equipped with
vertical racking, reach trucks, automated conveyor systems, and fire
sprinkler and hydrant systems. Based on the type of goods stored,
storage and warehousing are categorized under five major heads:
Industry/Retail warehousing, liquid storage, Agri – warehousing,
Cold storage, Container storage.
Growth drivers for warehousing
In India, export/import (EXIM) cargo, agriculture and manufacturing
(textiles, auto and auto ancillary) have been identified as the traditional
growth drivers to the demand for warehouse space. Meanwhile,
new growth drivers such as organized retail including food and
beverage, telecommunications, pharmaceutical and healthcare can
be considered as high potential sectors. With the growth of these
sectors, coupled with the dawn of technological advancements, the
demand for organized and automated warehousing is set to increase.
The following are the major demand drivers in the warehousing
sector in India:
1. Consumption-led demand: With a 10 % increase in the per capita
income, the increased demand and consumption of fast moving
consumer goods is proving to be a huge growth factor for warehousing
industry.
2. E-commerce led demand: A Booming e-commerce industry set
to reach $ 20 billion by 2020. E-commerce is playing a major
role in increasing the demand for warehousing in India, especially
retail warehousing. As more customers rely on online
portals for buying goods, the demand shifts from traditional
retail space to warehouses. The e-commerce market has grown
at a rate of 57 % from 2009 until 2014. India’s internet penetration
is roughly around 20 % of the household in 2014 as compared
to more than 80 % in the US and 40 % in China. The future
growth potential in the e-commerce sector in India is going to
be exponential, as India is all geared up to catch on the Internet
penetration levels.
f+h Intralogistics 5/2016

GLOBAL BUSINESS
3. Manufacturing-led demand: The manufacturing
sector spends nearly 2-20 % of its revenue on logistics
depending on corresponding industry. But with the
manufacturing sector growing at a compound annual
growth rate of 7.3 % and further expected to grow even
faster, the demand for logistics and warehousing service
is set to grow at a massive rate. With policies like
“Make in India” further providing a big boost to the
manufacturing sector, the logistics, distribution and
supply chain management experts can find themselves
in an extremely sweet spot.
4. Agriculture-based demand: India is the second largest
producer of vegetables and fruits, due to lack of infrastructure
and fragmented cold chains, more than 20 %
of agri-produce are damaged before reaching the
consumer. According to a report by the Associated
Chambers of Commerce and Industry of India (ASSO-
CHAM), there is a shortage of more than 10 million
tons of cold storage for agri-produce in India.
5. Export – Import (EXIM) based demand: In 2015, all
major and non-major ports in India handled about 1050
Million metric tonnes of cargo. EXIM cargo is expected
to increase to 2,800 MMT by 2020. Container handling is
growing at about 11 %, creating huge demands for the
entire eco-system of port related logistics.
Logistics hubs and clusters
The primary logistics hubs in India based on three major
factors:
n Proximity to the sea: The locations are strategic being
in proximity to sea ports which can cater to the Export-
Import (EXIM) trade generated through the major
seaports in India.
n Proximity to consumption hubs: These locations are
able to cater to about 60 % of Indian demand within
12-hour drive time.
n Facilitator-led locations: These locations have highlevel
requirement of skilled manpower, support from
government policies, infrastructure availability and
presence of warehouse stock.
Based on these factors and their significant contributions
to the Indian economy, eight top cities including
Ahmedabad, Bangalore, Chennai, Delhi NCR,
Hyderabad, Kolkata, Mumbai and Pune can be considered
as the country’s primary warehousing and logistic
hubs. These eight hubs put together have a cumulative
supply of organized warehouses to the tune of 97 million
square feet in 2015, recording a remarkable 21 %
annual growth rate between from 2010-15. With majority
of the companies now realigning their supply chain
networks, the market for warehouse spaces is expected to
go northward in 2017 to around 120 million square feet.
Ahmedabad: is home to several manufacturing sectors,
including pharmaceutical and automobile and its
components. A moderately large consumer market itself
and a growing manufacturing base have made
Ahmedabad one of the warehousing hubs in India.
Ahmedabad’s connectivity to and location in the Delhi-
Mumbai Industrial Corridor (DMIC) has given an
impetus to the warehousing sector.
Mumbai: The two busiest ports of India, JNPT and
Mumbai port are major demand generators. The JNPT
area has evolved as a major warehousing location in
Mumbai because of its proximity to the port and availability
of large expanse of land. Multiple free trade warehousing
zones (FTWZs) are present here. Warehousing
locations in Bhiwandi, Mankoli and Padgha along
National and State Highway can be considered as the
most vibrant and largest warehousing areas in Mumbai.
Major supply of top class warehouses is available in this
area, with the presence of FMCG and e-commerce companies.
According to some statistics, the city offers more
than 23 million square feet of warehousing space.
Pune: Pune, just 160 kms from Mumbai, is also a huge
manufacturing base from automobiles to machinery and
equipment, food and beverage etc. The large consumer
bases in Mumbai – Pune region and affordable land prices
(compared to Mumbai) have helped Pune become a
major warehousing location. The Chakan – Talegaon area
in Pune, due to its proximity to large-scale manufacturing
units and easy connectivity with Mumbai, as well
as the presence of large organized warehousing parks
has helped positioned Chakan – Talegaon as the prime
warehousing area of the city. Pune has the presence of
players such as Mahindra Logistics, Nippon, Bosch. Nagar
Road and Shirwal are the two other warehousing corridors
in Pune, with the presence of major occupiers in
FMCG, engineering, auto accessories etc.
After the implementation of the GST, cities like
Belgaum, Kolhapur, Indore, Jaipur, Nagpur, Raipur, Patna
and Ranchi are set to emerge as important warehousing
locations.
International trade fair: CeMAT India 2016
When the world’s fastest growing large economy summons,
there is ample reason to pay attention to it. This
December that is exactly what the global as well as India’s
heavyweights in the field of logistics and supply chain
will do to drive themselves to the next level. On 1 st of
December with the arrival of a pleasant winter season in
Mumbai, the curtains will rise at the CeMAT India – one
of the most comprehensive industrial trade fair in the
country. The location of the trade fair in the city of Mumbai,
the economic capital of the country suits perfectly
well for all the stakeholders in this sector. The
Ahmedabad-Mumbai-Pune belt is one of the most highly
industrialized regions in the country. It is also a huge
consumer market with 30-35 % of India’s consumer market
share. This international exhibition focusing on the
logistics and supply chain sector in the heart of India’s
most promising region proves to be an excellent opportunity
to broaden the customer base, to promote new
products and equipment, new innovations and services
that add value to the entire logistics chain. This international
event is sure to attract decision makers from
diverse industry sectors and is the ideal place to catch a
glimpse of latest trends and technologies in Materials
Handling / Intralogistics, Storage Systems, Warehousing
and Logistic Services.
For global as well as domestic players it is vital to understand
the perspective about Indian customer’s requirements
and necessities. CeMAT India provides a unique
opportunity to gather this market intelligence and also to
demonstrate their presence in the Indian market. For
companies in the logistics and supply chain sector who
are hunting for fresh markets to drive their growth,
CeMAT-India offers an unparalleled access to the Indian
market with high growth prospects for immediate as well
as long term. This international trade fair attracts visitors
from all parts of the country creating a great chance to
strengthen relations with their existing customers and also
find local distributors and sales partners.
Photograph: Fotolia
f+h Intralogistics 5/2016

xxx
Increase your warehouse capacity
Buildings cannot always be extended at will to provide additional storage
space. Increasing storage density to release areas for production is often
difficult. When those situations exist, one should think about mobile racking.
With modern control concepts and well founded planning anything is possible.
If you are planning to build a new storage installation or to restructure an
existing one, please check the following system characteristics:
• 85% increase of storage capacity over the same surface area.
• 60% decrease in building volume if you are planning to build new.
• 40% increase in available space, without having to build a new facility.
We can help you with the planning and will find the most economic
solution for your logistic needs.
www.ssi-schaefer.com

Conveying & Loading Systems:
a powerful global partner
The Beumer Group uses its newly created Conveying &
Loading Systems (CL Systems) division to develop and
implement complex system solutions throughout the
world for different industries, such as mining and the
cement industry. The team is made up of experienced
staff from the branches distributed around the world
who work together on the projects. What they all have
in common is that they understand the user, which
means that they can develop tailor-made solutions.
About Beumer Group
The Beumer Group is an international leader in the
manufacture of intralogistics systems for conveying,
loading, palletizing, packaging, sortation and distribution.
Together with Crisplant a/s and Enexco Teknologies
India Limited, the Beumer Group employs 4,000 people
worldwide, and achieves an annual turnover of about 700
million Euros. With its subsidiaries and sales agencies,
the Beumer Group serves customers around the globe,
across a wide range of industries.
Dr. Andreas Echelmeyer, who has headed the Conveying and
Loading Systems division in the Beumer Group at its headquarters
in Beckum since August 2015, stated that: “We can use our
comprehensive expertise in system solutions to advise our customers
and provide them with complete plant systems. Each industry
poses its own unique challenges”. The most important point is to listen
carefully to the customer and then ask the right questions. This
can only be done locally. Employees positioned around the world
are therefore in close contact with the customer. They are familiar
with the specific customs of the particular country, understand the
language and are wise to the particular requirements of the market
and the customer. They identify appropriate potential and any possible
need for action. The operators for whom Beumer has successfully
commissioned conveying plants includes the TPI Polene Public
Company Ltd. The third largest cement producer in Thailand uses
this complex system solution to transport crushed limestone
from the quarry to the blending bed.
Difficult environment safely overcome
Echelmeyer: “The challenge lay in the nature of the ground between
the quarry and the cement plant. It was exceptionally demanding.
We had to make allowances not only for numerous obstacles but
also for a steep downhill section of the conveyor”. The team designed
a complex, but above all cost-effective, integrated system
MULTIMEDIA CONTENT
Learn more about the achievement
spectrum of the enterprise
RUBRIK BULK MATERIAL HANDLING
f+h Intralogistics 5/2016

comprising a total of eight belt conveyors covering a distance of
6,129 m. Beumer also supplied a PLC plant control system, transfer
stations, filter systems and foreign body collectors.
The system is designed for a conveying capacity of 2,200 t/h. The
key items in the limestone transport system are two downhill belt
conveyors operating in the generator mode followed by a troughed
belt conveyor with horizontal curves. The material passes from the
crusher discharge belt the first two troughed belt conveyors. The
material is then transferred to a long overland conveyor with a
speed of 4.5 m/s by an accelerator belt with a speed of 2.6 m/s.
Three more conveyors finally transport the material to the blending
bed.
Cost-effective operation guaranteed
One particular feature of the downhill conveyors is their power generation.
With a total of 640 kW/h generated energy that is fed into
the power grid they make a substantial contribution to the cost-effective
operation of the overall system. “We have a great deal of experience
with conveying systems that can negotiate horizontal and
vertical curves and operate in the generator mode”, explained
Echelmeyer. During the development it was necessary, for example,
to ensure safe and carefully controlled stopping of the large belt system
to avoid problems during unavoidable events, such as a power
failure.
Beumer supplied four further belt systems with a total length of
989 m to deal with the discharge from the blending bed and supply
the material to the raw mill feed hopper. The conveyors were all
built and installed in eleven months. The commissioning phase,
lasting three months, was followed by performance tests. The team
We can use our
comprehensive
expertise in system
solutions to advise our
customers and provide
them with complete
plant systems
Dr. Andreas Echelmeyer, Director
Conveying & Loading Systems,
Beumer Group
then handed over the entire plant to the customer. Echelmeyer
emphasized: “We supervised and monitored the installation and
commissioning to ensure long-lasting, trouble-free, operation. This
always forms part of our service. The standard scope of supply also
includes intensive training of the operating and maintenance
personnel”.
Through the middle of the rainforest
The CL Systems division has also been very successful in Indonesia.
The plant construction company Sinoma International Engineering
Co. Ltd. was awarded the contract by the Indonesian end customer,
Cemindo Gemilang, to supply a turn-key cement plant to Java. It
should reach a daily clinker production of 10,000 tons. Sinoma commissioned
Beumer with the design and supply of an overland conveyor
between the quarry and the plant.
The challenges in this project were not only the demanding topographical
routing but also the evergreen rainforest (Image). Joint
discussions were held between the Beumer team, Sinoma and the
end customer. The team worked various routes out and compared
them. “The very narrow corridor of land in addition to the tropical
The route of the overland conveyor for the end customer, Cemindo
Gemilang, passes through the middle of the rain forest
climate required a complex and sophisticated design”, explained
Echelmeyer. Among other things his team designed a solution with
tight horizontal curves that fitted optimally into the landscape.
The entire system now comprises six conveying plants with a total
of length of 7.6 km. Beumer also supplied acceleration and discharge
conveyors and a PLC plant control system.
Controlled loading ensured
The system is designed for a maximum continuous conveying capacity
of 3,000 t/h. The main component is a 7.4 km long overland
conveyor. Upstream of this troughed belt conveyor is an intermediate
hopper with a capacity of about 120 tones. The material passes
from this hopper via a variable-speed discharge conveyor to a
downstream acceleration belt that feeds the overland conveyor.
This controlled loading system ensures cost-effective operation of
the plant, especially during the start-up phase. It also has a favorable
effect in the dimensioning of drive components and the belt,
and reduces the operating costs.
The acceleration belt with a speed of 4 m/s protects the belt of the
overland conveyor and increases its service life. For further protection
there are also upstream units for collecting any iron and nonferrous
metals. The limestone is then transported to the blending
bed on short troughed belt conveyors.
The troughed belt conveyor has a width of 1,200 mm and a distance
between centres of 7,381 m. One tail drive and two head
drives are installed, each with a rating of 545 kW. The plant conveys
the material at a speed of 5 m/s and negotiates a height difference of
minus 188 m.
Protection of people and animals
The conveying system also runs past villages and for long sections
passes through rainforest that deserves to be protected. The CL Systems
team has taken numerous design measures to reduce the
noise impact on people and animals. “Among other things, we have
used low noise idler rollers and appropriately dimensioned protective
hoods at the drive station”, explained Echelmeyer. “This means
that the limestone passes through the rainforest in virtually silent
mode. The construction time lasted only one year”.
Photographs: Beumer Group
www.beumergroup.com
f+h Intralogistics 5/2016

RUBRIK CEMAT INDIA
CeMAT India –
Intralogistics showcase,
embedded in industry
Growing at an anticipated 7.5 percent in 2016, the Indian economy continues to go from
strength to strength. A lot has happened since the “Make in India” campaign was
launched in 2014. By investing in the country’s infrastructure and lowering corporate tax
rates, the Indian government has succeeded in attracting a growing number of international
investors. Today, India stands not just for services and IT, but also for a commitment
to modernizing the nation’s industry, with the goal of ramping up domestic
production.
Visitors to CeMAT India (1 to 3 December 2016 in Mumbai) can get an initial impression
of the competence of Indian industry, with well-known enterprises like Carlstahl Craftsman
Enterprises, Kompress India, Nash Robotics & Automation, Rajdlari Storage
Systems, Godrej & Boyce, Cascade and Jungheinrich as exhibitors there. Embedded in
the WIN India trade fair, these exhibitors will be demonstrating the key role played by
intralogistics in automated systems. Manufacturing industries currently constitute only
15 percent of India’s gross domestic product, with a concomitant huge potential for further
development. According to the latest information supplied by GTAI (Germany Trade
& Invest), private consumption in India is growing fast, resulting in above-average
demand for the types of machines needed by consumer-related industries like textiles,
chemicals, automotive and packaging.
Not surprisingly, online retailing has also been growing in India the last few years. Whereas
in 2013, Indian consumers bought some 10.7 billion US dollars’ worth of goods, one
year later the figure had gone up by 34 percent, for a total of 16.4 billion, according to
pwc. In 2015 sales had climbed to 22 billion dollars, with the curve continuing to point
upward. This growth also means higher demands on the supply chain – which brings us
to the intralogistics providers showcasing their comprehensive solutions at CeMAT India.
The organizers of WIN India are expecting a total of
some 200 exhibitors and more than 10,000 visitors at
the upcoming event, where there will also be a
wide-ranging program of forums on the latest
challenges and developments involving the
supply chain. The first day of the show will
feature a discussion on the topic of “The Supply
Chain in a Digital World”. On the second
day, presentations and discussions will include
techniques and strategies for minimizing
supply chain risks, as well as the role that
state-of-the-art technologies can play in the
modernization process.
I wish all of you a successful trade fair, with
numerous successful leads, inspiring talks
and outstanding business.
Krister Sandvoss
Project director “CeMAT Worldwide”
Deutsche Messe AG
Intralogistics
Trade magazine for material flow and material management
Imprint
Publisher:
Dipl.-Ing. Reiner Wesselowski (We)
Email: r.wesselowski@vfmz.de
Editor-in-chief:
Dipl.-Ing. (FH) Winfried Bauer (WB),
Email: w.bauer@vfmz.de
Editorial board:
Dipl.-Medienwirtin (FH) Marie Krueger (MK),
Holger Seybold (Sey)
Dipl.-Ing. Manfred Weber (MW)
Assistant editor:
Svenja Stenner
Design/layout:
Sonja Schirmer, Doris Buchenau,
Anette Fröder, Mario Wüst
Epaper designer:
Katja Rüdell, Mathias Göbel
Managing editor:
Dipl.-Ing. (FH) Winfried Bauer
Publishing house:
Vereinigte Fachverlage GmbH
Lise-Meitner-Str. 2, 55129 Mainz, Germany
Commercial Register No.:
HRB 2270, District Court of Mainz
VAT-ID:
DE149063659
Managing director:
Dr. Olaf Theisen
Publishing director:
Dr. Michael Werner, Email: m.werner@vfmz.de
Correspondent India:
Sushen Haresh Doshi M.Sc.
Advertising sales director:
Beatrice Thomas-Meyer
Email: b.thomas-meyer@vfmz.de
Advertising sales manager:
Andreas Zepig, Email: a.zepig@vfmz.de
Advertising representatives:
Austria
Heinz-Joachim Greiner
Email: verlagsbuero-greiner@vfmz.de
China, India
Andreas Zepig, Email: a.zepig@vfmz.de
France
Marc Jouanny, Email: marc-jouanny@wanadoo.fr
Great Britain, Ireland
Roberto Tondina,
Email: roberto@ts-communications.co.uk
Italy, Switzerland
Hermann Jordi, Email: info@jordipublipress.de
Sweden, Finland, Norway
Malte Mezger
Email: verlagsbuero-mezger@vfmz.de
USA, Canada
Bill Fox, Email: bfox@hfusa.com
Advertising Disposition:
Annemarie Benthin, Email: a.benthin@vfmz.de
In cooperation with:
Hannover Fairs International GmbH
Messegelände, 30521 Hannover, Germany
VDMA – German Engineering Federation
Trade Association Materials Handling and Intralogistics
Lyoner Straße 18, 60528 Frankfurt, Germany
Additional Partner:
Moskauer Deutsche Zeitung
Internet:
www.fh-intralogistics.com
8 th year (2016)
f+h Intralogistics 5/2016

Product News
User-friendly like a smartphone
The MX-1000 series terminals from Cognex offer companies a new
way to record data during inventory management and logistic
processes, amongst other things. The mobile data recording
terminal combines the user-friendly design, low costs and
flexibility of a smartphone with a robust, portable unit with an
integrated barcode scanner.
www.cognex.com
Stat Control now internationally certified
Statistical inventory counts offer significant advantages compared
with full inventory counts. They reduce the counting effort and
therefore the costs and warehouse closing times, as well as error
rates. Stat Control GmbH, a company specialising in inventory
software, now has
separate certifications
for Germany, Austria
and Switzerland for the
first time. Alongside
inventory management,
companies are increasingly
focusing on
monitoring stock during
the year. In contrast to
value-based inventory
counts, stock controls
are risk oriented and designed to secure processes, which is where
the systems currently offered by Stat Control provide manifold support.
The Software Starwarp, for instance, can carry out a riskbased
ABC analysis, which uses various factors to categorise stock
items into risk clusters.
www.statcontrol.net
Gaining an extensive overview over the
fleet of industrial trucks
www.id-systems.com
The business intelligence tool Powerfleet IQ
from I.D. Systems is an analytical
platform that can optionally be integrated
in the Powerfleet fleet management
system landscape. Data collected from
the fleet of industrial trucks,
especially from fleets across
several locations, is continuously
collated and visually prepared in
the KPI dashboard.
Click to read
previous issues.
Inspiration is just
one click away.
Full networking capability for easier
operation
Mosca meets the specific needs of the corrugated cardboard
industry with the fully automated UATRI-2 XT inline strapping
machine. This high-performance machine can be easily integrated
into automated high-speed
production lines for gentle,
fast and reliable strapping of
corrugated cardboard.
Thanks to full network
capability, these strapping
machine can be monitored
from a connected computer.
News about the following markets:
www.mosca.com
f+h Intralogistics 5/2016

Jungheinrich celebrates
60 th anniversary of reach truck
RUBRIK INDUSTRIAL TRUCKS
For 60 years reach trucks have been reliable workhorses
for transporting and stacking goods in warehouses
around the world. In 1956 Jungheinrich built the world’s
first reach truck – the “Ameise Stand Retrak”.
f+h Intralogistics 5/2016

Using the Retrak’s movable lift mast (Image 01),
goods could be pulled back between the front
and rear axle for transport purposes. As a result
the stacker was shortened, requiring less aisle
width between racks. This moreover improved
driving stability while reducing the weight of offsetting
counterbalances. This was a technological
milestone from Jungheinrich, involving the
development of an entirely new industrial truck
category 60 years ago.
As early as 1957 the Retrak was available not
just with a simple, telescopic or dual lift telescopic
mast, but even a triplex mast. Over the years numerous new technical
features were added, including ergonomic improvements and
an even more compact design combined with in part extremely
high lift heights of 13 meters for payloads of up to a ton.
02 For the anniversary the reach truck fleet was presented in a new
design
Broad product range to fit any customer requirement
Today Jungheinrich is one of Europe’s leading provider of reach
trucks, featuring numerous lift heights and lift capacity classes.
Special variations are available for special applications like multiway
stackers for outdoor applications involving payloads of up to
15 tons.
Since 1956 the company has continually set new standards in
throughput, thanks to faster acceleration as well as faster lift and
reaching speeds. These numerous technological innovations range
from the introduction of three-phase AC technology all the way to a
mast forward reach cushioning system to prevent mast vibrations
when storing and retrieving payloads. All vehicle components
as well as the software, motors and control systems
are produced in-house and are perfectly
compatible, offering maximum performance
at a minimum rate of energy consumption, for
example through energy recovery when braking. This is
why Jungheinrich guarantees that its reach trucks can work
for two full shifts with a single battery charge – in the form of
its special “2Shifts1Charge” warranty. This saves the customer
the expense of buying a second battery as well as the
cost of the battery changing equipment, special charging
stations and also the time needed to perform the battery
change. If a battery fails to hold its charge for two full shifts,
the company will deliver a second battery free of charge.
Distinctive and striking new design
Right on time for the anniversary Jungheinrich is presenting
its reach truck fleet in a completely new design
(Image 02). At the beginning of 2016 the company
introduced a new grey in addition to the familiar yellow
in a uniform colour distribution. All operating functions
and model markings are uniformly highlighted
striking accent green. And the “soloPILOT” and “multiPILOT”
operating elements as well as the colour display
showing the key reach truck operating data have
01 In 1956 Jungheinrich built the first
reach truck – the “Ameise Stand Retrak”
likewise been revamped. The new design visibly reinforces the technical
and ergonomic quality of the company’s products.
Advantages of lithium-ion technology now applied
to reach trucks
At CeMAT 2016 Jungheinrich is expanding its portfolio of selfdeveloped
lithium-ion batteries by a 48-V-battery with 360 or 480 Ah.
This means that this completely maintenance-free technology can now
also be used for reach trucks and counterbalance trucks. The lithiumion
batteries’ high-performance energy cells are characterised by extremely
short charging times. Even an interim charging time of just
30 or 45 minutes is enough to charge the battery to 50 percent of its
capacity. After two or 3.5 hours the battery is fully charged. And the
battery’s high efficiency coefficient enables energy savings of 20 percent
or more when charging and recovering braking energy.
To guarantee a maximum of efficiency, safety and convenience in
daily operations, the battery, charging device and vehicle are perfectly
coordinated. And the battery is also permanently monitored
by an innovative, integrated battery management system – with the
result that lithium-ion batteries have a product life of around three
times as long as conventional lead-acid batteries.
Photographs: Jungheinrich
www.jungheinrich.com
About Jungheinrich
Jungheinrich ranks among the world’s leading companies
in the material handling equipment, warehousing and
material flow engineering sectors. The company is an
intralogistics service and solution provider with manufacturing
operations, which offers its customers a comprehensive
range of forklift trucks, logistics systems,
services and advice. Jungheinrich shares are traded on all
German stock exchanges.
f+h Intralogistics 5/2016

Process efficiency thanks to continuous
SAP EWM Material Flow Control
SSI Schaefer has implemented a fully automatic
production and distribution system for frozen products
for the Belgian La Lorraine Bakery Group in the Czech
Republic. For the first time, five 2-mast devices from
the new storage and retrieval machine generation
Exyz are used to guarantee process efficiency in a
deep-freeze environment. SSI Schaefer’s SAP specialists
also developed the necessary dialog structures for
system and material flow control directly on SAP EWM.
Appropriate storage and picking of frozen food products is one of
the most challenging tasks in intralogistics, especially with
automated processes. Frozen products continually have to be kept
at a core temperature between -12 and -18 °C. They are stored at a
surrounding temperature of -25 °C. In order to ensure an uninterrupted
cold chain and hygienic standards according to Hazard
Analysis Critical Control Point (HACCP) guidelines, high quality
and performance requirements have to be met. Picking processes
within a deep-freeze environment also have to be concluded within
30 minutes at a maximum temperature of -5 °C. This represents a
great challenge in terms of system and material flow concepts,
performance of implemented system components and available
functions of software systems. With this in mind, La Lorraine Bakery
Group, one of the leading producers and distributors of frozen bakery
products for retail and gastronomy in Europe, decided to work
together with the intralogistics specialists of SSI Schaefer to plan
and execute their new fully automatic production and distribution
center at the Czech site of Kladno-Kročehlavy.
Comprehensive project competence
Based on an international tender, SSI Schaefer was awarded the
contract to implement the project as general contractor. The commissioned
scope of services ranged from drawing up the logistics
and material flow concept, carrying out implementation planning
and system equipment to establishing a communication structure
allowing to control the entire system directly from the SAP Extended
Warehouse Management (EWM). “Excellent references
throughout Europe, a comprehensive solution based on modern
systems of in-house production and the good organization of the
company in the Czech Republic were the decisive factors for placing
the order with SSI Schaefer”, Petr Kozojed, logistics manager of
La Lorraine at the production site of Kladno-Kročehlavy, explains
the choice of the supplier. “The effective implementation of the
project and the overall positive result have confirmed that we
made the right decision.”
RUBRIK WAREHOUSING
f+h Intralogistics 5/2016

The Belgian company group, which has won the “Entrepreneur of
the Year 2012” award in its home country, is one of the ten most
important producers of frozen bakery products in Europe. The company
has been present on the Czech market since 1998, and since
2008 under the name of La Lorraine. The 300 employees at this site
produce more than 23,000 tons of frozen bakery products in gastight
packaging per year. The sales territory extends from the Czech
Republic to Poland and Belgium, as well as to South European countries.
“Ensuring top product quality, production processes and
logistics are an integral part of La Lorraine’s philosophy”, says Kozojed.
Process optimization by SAP
Due to the fast growth of the company, its logistics was no longer
state of the art. “Our logistics approach was appropriate for the 90s”,
explains the logistics manager. “However, by now we handle more
than 400 different products and have to coordinate deliveries between
our customers and production sites in five different countries,
all of which entails an enormous expenditure in terms of processes,
time and costs. In order to reduce costs and optimize processes and
at the same time increase transparency and availability, we decided
to concentrate and modernize our storage and warehousing structures
by creating a central warehouse at the production site of
01 SAP software for controlling the fully automatic deep-freeze
storage system is a central aspect of the project
02 Before the storage, the incoming goods
pass an automatic contour and weight check
f+h Intralogistics 5/2016

Kladno-Kročehlavy, which would allow for further growth. In making
this decision, we were less intent on increasing performance than on
improving capacity, process efficiency and transparency and creating
a homogeneous IT infrastructure”, Kozojed adds.
In fact, the particular software architecture is one of the central
aspects of the project. La Lorraine Bakery Group has adopted SAP on
all company levels. As a consequence, the fully automatic deepfreeze
storage system was also to be based on a modern SAP EWM
platform. Special feature: Via an integrated material flow component,
the control of all manual and automatic processes within the
warehouse should be carried out directly from the SAP EWM system.
In cooperation with SAP Deutschland, the SAP specialists of
SSI Schaefer created the necessary communication structure for
controlling the automation and material flow components from the
SAP EWM system (Image 01). “This included a substantial development
effort”, explains Frank Hennermann, IT project manager of
SSI Schaefer. “On the one hand, this affected the design of the material
flow architecture. On the other hand, it was necessary to define
new standards, or so-called telegrams, for the communication
structure, in order to depict SSI Schaefer’s warehouse technology
and its processes in SAP EWM.”
Perfect communication between hardware and
software
Applying their technological know-how of hardware components,
the SAP specialists of SSI Schaefer started by creating communication
layers which allow direct and conflict-free activation and control
of the systems. Then the control system of all communication
and material flow processes was tested virtually and assessed in the
emulation environment. The high degree of standardization of the
automatic systems of SSI Schaefer made a fast program development,
systematization and provision of telegrams and dialog structures
to the cooperation partner possible. In this way it was possible
to integrate the complex communication layers for the system and
process control into the SAP standard. “Deadlines and budgets
were met and the communication was fast and efficient, which was
proof of a very constructive cooperation with our partner during
project implementation”, Hennermann sums up. “All these factors
led to an optimal result as regards the IT infrastructure as well as the
process and system control in the central distribution center of
La Lorraine.”
High efficiency in confined space
The uninterrupted cold chain is one of the distinctive features of this
intelligent material flow concept. The 5-aisle deep-freeze high-bay
warehouse with 27,300 pallet storage locations for a double-deep
storage of euro pallets and industrial pallets is the central element
of the whole system. In front of the high-bay warehouse there is a
structure for processing incoming goods from external suppliers
and from in-house production, as well as for picking and preparation
for the dispatch area.
Incoming goods first pass an automatic contour and weight check
on a conveying system (Image 02) at the zero level. Subsequently,
the conveying system transports the pallets to be stored towards
one of the two elevators available within the system. The elevators
lift the pallets onto a platform construction (Image 03) which serves
as storage and picking level. There the pallets are handed over to the
automated storage and retrieval machines (SRM) for storage. Based
on the information transmitted by the SAP EWM system, the conveying
system first distributes the pallets to five transfer locations.
From there the pallets are taken over by the SRMs, brought to the
storage locations and stored double-deep.
Another first in deep-freeze technology, five 2-mast devices of the
new SRM generation Exyz of SSI Schaefer (Image 04) are used, with
components designed especially for use in freezer environments. As
its name already implies, the SRM Exyz of modular construction is
WAREHOUSING
03 Elevators lift the pallets onto
the storage and picking level
f+h Intralogistics 5/2016

About SSI Schaefer
SSI Schaefer is one of the world’s leading supplier of
warehousing and logistics systems. The services it
offers range from concept design, warehouse fittings
with its own products to the implementation of complex
logistics projects as a general contractor. The pooling of
collective skills under the umbrella of SSI Schaefer lays
the foundation for the development of market-oriented,
industry-overlapping warehouse systems and for the
conception of complete intralogistics solutions.
designed with particular attention to minimum space requirements
and maximum efficiency: “E” stands for energy efficiency
and high performance as guaranteed by the SRM in all three dimensional
axes “X”, “Y” and “Z”. With 170 double cycles per hour,
the SRMs ensure that the processes within the storage cube meet
the requirements.
SAP ensures continuous material flow
The pallets are retrieved and placed on the working platform for
order picking. A short conveying system transports them to a
mobile carriage from where they are diverted onto 18 gravity roller
conveyors serving as the picking area. The operators use forklifts
to pick and transfer the order cartons from the source pallets to
the target pallets in a path-optimized way as indicated by the SAP
EWM system. Up to 70,000 cartons each month are picked according
to orders and in an error-free way thanks to the guidance by
the SAP EWM system. Once order picking has been completed,
the target pallets are handed over to an in-feed station from where
a conveying system transports them to the transfer stations of the
SRM for buffering and/or order consolidation within the high-bay
warehouse. Along this conveyor line, the pallets undergo an automatic
contour and weight check, as well as foil wrapping. Partially
processed pallets undergo the same process before being stored
again in the high-bay warehouse.
When the transport trucks dock at the ten goods-out gates,
retrieval of the order pallets from the high-bay warehouse is initiated
by SAP EWM. A conveyor and an elevator transport the
pallets down to zero level, from where a mobile carriage distributes
them to three retrieval lanes in the correct order/route
sequence for loading the trucks.
“Due to process guidance by the SAP EWM system and fully
automatic material flows, all storage, picking and retrieval processes
are completed on average within 15 minutes”, concludes
the logistics manager Kozojed. “This guarantees an uninterrupted
cold chain and a high quality of our products. As expected,
the concentration of goods at one warehouse location has
resulted in optimizing costs and handling. The homogeneous
SAP EWM solution offers us a maximum of transparency and
control of material flows, as well as a fast order processing. We
are very satisfied with the solution.”
Photographs: SSI Schaefer
www.ssi-schaefer.com
04 Five 2-mast devices from the storage and retrieval
machine generation Exyz guarantee process efficiency
f+h Intralogistics 5/2016

Study about strategic supplier
management for agile process design
The integration and management of suppliers is a key factor in the supply chain for all
manufacturing companies. The latest study “Agile Supply Chains – On the move in
industry 4.0?” from Candidus Management Consulting gives an insight into existing
success models of best practice companies, and shows how these shape their strategy by
stringent material and supplier classifications, risk management and “best country
sourcing.” Read more about the study.
LOGISTICS MANAGEMENT
Thus companies develop partnerships with suppliers as a key lever
for greater agility in the supply chain, without which they
could only remain competitive with difficulty or not at all in the
digital age and volatile markets. In 45 in-depth interviews, the Munich-based
management consultancy surveyed decision makers
(29 % CEO, 40 % COO, 31 % Head/VP of SCM/Logistics/ Purchasing)
from producing B2B and B2C businesses in the Germany,
It is advisable to define the
specific general conditions of
each market, customer and
product segment from end
customer to supplier
Stefan Treiber,
Managing Director, Candidus
Management Consulting
Austria and Switzerland region that have at least 100 million euros
annual sales. 78 % of surveyed participants included strategic supplier
management and integration among the top issues for the
sustainability of their businesses. Representatives from the fields
of engineering, optometry, automotive diagnostics, electronics,
cable, machinery, furniture, solar technology and rail industries
participated in the study.
The cornerstones of an optimized procurement
strategy
Using selected best-practice approaches, the study explains all the
necessary success factors for a strategic supplier management with
minimized supply disruptions and quality problems. “For me, the
core issue at this point is a partnership that represents a win-win
situation for both sides”, explained one participant, a representative
for a supplier in the rail industry, as his company’s objective in dealing
with suppliers.
Of central importance for all further steps towards a sustainable
collaboration is the consistent classification of suppliers and materials
on the basis of clearly defined criteria into standard, risk, core
f+h Intralogistics 5/2016

01
Purchasing strategy dependent on the supplier and material segment
MATERIAL CLASSIFICATION
Supply risk
RISK
MATERIAL
STANDARD
MATERIAL
STRATEGIC
MATERIAL
CORE
MATERIAL
Relevance: Purchasing structure
Strategic
Material
Core
Material
Supplier
development
/ change
Supplier
development
Supplier
development
/ change
OPTIMIZATION OF
PURCHASING STRATEGY
Supplier
development
SUPPLY CHAIN
PARTNERSHIP
UTILIZATION OF MARKET
POTENTIAL, THEN
PARTNERSHIP
SUPPLIER CLASSIFICATION
Supply risk
RISK
SUPPLIER
STANDARD
SUPPLIER
STRATEGIC
SUPPLIER
CORE
SUPPLIER
Risk
Material
Standard
Material
ASSURE CONSTANT SUPPLY
PROCURE
EFFICIENTLY
PRICE REDUCTION
Relevance: Strategic value
Standard Supplier
Risk Supplier
Core Supplier
Strategic Supplier
02
Esclation process for a supllier in the automotive industry
DEFINED ESCALATION PROCESS FOR RISK AND STRATEGIC SUPPLIERS IN REGARDS TO CORE AND STRATEGIC MATERIAL
0. GREEN (P1*)
1. YELLOW (P2*)
2. ORANGE (P3*)
3. RED (P4*)
P5* – BLOCKED
Objectives
achieved are
at least 98 %
stable
Ø Average objective
discrepancy in the
last 3 months:
from 2 % to 5 %
Ø Average objective
discrepancy in the
last 3 months:
from 5 % to 10 %
Ø Average objective
discrepancy in the
last 3 months:
> 10 %
manual
Regular contact
and positive feedback,
partnership if needed
Supplier
(Escalation)
Conversation
» Purchasing
» Joint determination
of action plan
Supplier Task Force
» Staff function of
purchasing
organization
» Joint improvement
of processes at
supplier‘s location
Resident
» External consultancy
support paid for by supplier
» Optimization project
conducted by supplier
Classification according to quality and logistical performance (Objective pyramid): P1 free, P2 development phase, P3 under observation, P4 unsatisfactory, P5 blocked
About Candidus
Candidus Management Consulting is a consulting
company in the field of performance improvement and
operations management, with headquarters in Munich.
The enterprise offers a clear focus on implementation
combined with the conceptual standard of a top management
consultancy. The Candidus hallmark holistic
approach is adapted to each customer situation, thus
offering precisely the right solutions. Internationally
experienced consultants with in-depth industrial and
methodological expertise work together with customers
towards measurable and significant performance
improvements for sustainable competitive enhancement.
and strategiwc groups. This forms the basis for a further process to
achieve the most efficient material procurement for standard materials
and deep, value-creating partnerships with highly reliable suppliers
of strategic materials (Image 01).
Consistent supplier classification with specific
objectives
However, increased supplier reliability must be worked towards
proactively: “The development of an integral supplier evaluation
and early warning system, as well as contractually anchored target
agreements, should be substantial components of any supplier
management,” emphasizes Stefan Treiber, CEO of candidus management
consulting. A best-practice company in the study has developed
a traffic light system: The degree of escalation is derived
from the supplier target deviation ratio within the last three
months (Image 02). Depending on which of the four escalating
levels the vendor is assigned to, different measures are defined to
improve cooperation – from an individualized optimization project
to building a partnership. Thus, the company ensures stringent
supplier classification with a clear objective.
Photographs: Candidus/Fotolia
www.candidus.com
f+h Intralogistics 5/2016

5 tips on successful
personalization in the B2B shop
Nowadays, the standard in business-to-consumer shops is for customers to receive
individual offers based on their personal interest profiles. Personalization and
individual customer service are also becoming increasingly important for business-tobusiness
commerce. Nevertheless, how exactly can B2B shop operators offer their
customers a personalized shopping experience? Which functionalities are essential?
The following five tips show how the personalization of a B2B shop can succeed and
ultimately serve as a means of lead generation.
RUBRIK E-BUSINESS
1 2
Get to know your customer
It is essential that you get to know exactly who
your customers are if you want to successfully
personalize your B2B shop. A CRM database
with information about the company, department
and position is just as much a part of the standard as a saved
order history, assuming the customer has already made a purchase
in the shop. Another way to collect customer data is so-called microtargeting.
Customers are divided into various target groups based on
specific characteristics. For example, is it a new customer or a key
account you’re already familiar with? What industry is the customer
from? Modern solutions also make it possible to assign a shop visitor
to a specific company before they’ve even logged in if said visitor is
already registered as a customer. This facilitates the ability to immediately
show relevant offers and information.
Thanks to the real-time documentation of visitor activities on the
shop pages, suggestions can be made about a customer’s interests
and needs: is the customer looking for general product information,
researching special replacement parts, or looking for special offers
on items that his or her company regularly orders? The shop visitor
can be assigned to a specific buyer persona group as a result of the
information saved and acquired in real time. In many e-commerce
or content management systems, functionalities for the subsequent
dynamic display of specific content for precisely the person viewing
the content are already an integral component. Companies that
collect and process the corresponding customer data can use said
data to provide increasingly more appropriate content and to make
individual and relevant offers to each customer.
2
Establish a solid database
A solid database is essential if you want to
have a complete overview of products, customers
and prices at all times − particularly
2
with regard to B2B commerce. Thus, from the
very beginning you should precisely define how you want to use
and organize the data. Take the time early on to reflect on the strategic
design of your B2B shop’s database. Questions you need to
answer: How should information about products be laid out? Which
system is leading the way? The shop system, CMS, ERP, or a Product
Information Management (PIM) system? How are data synchronized
between the systems? These points must be clarified, and it is
necessary to determine who maintains what data in which system.
A B2B shop can only be successfully personalized based on
complete and up-to-date data.
f+h Intralogistics 5/2016

23
Personalize content and view for
each visitor
Generally, the more relevant the content
shown is to the respective visitor or customer,
the greater your chances of acquiring and
retaining said visitor and increasing revenues. Once you’ve collected
data on customer behavior and segmented your contacts into
target groups, you’ll have a basis for personalized selection of content.
This may be, for example, information on products and services
that are interesting to the customer based on his or her industry,
location, or order history. You can also automatically generate and
display individual recommendations and special offers for each
customer: good CMS systems include the functionalities required
for this. Also consider integrating an evaluation function in the
shop: your customers can then evaluate and review the products
they’ve acquired, providing a point of orientation for other interested
parties. Many e-commerce systems already include this and
additional functions such as cross- and up-selling.
Furthermore, to ensure that your corporate customers feel “at
home”, you can offer them a customized shop view after they’ve
logged in. Additional features that allow you to offer your customers
a personalized shopping experience include quick access to
frequently ordered items, adjustable dashboards, customer-specific
shopping lists, and watch lists.
4
Support your customers’ processes
With regard to digital transformation,
numerous companies are faced with the
2
challenge of digitalizing the bulk of their
business processes. In terms of procurement,
you can effectively support your customers with this task by offering
them integrated processes. Whether it’s the display of individual
prices and volume prices, data transmission via EDI, invoicing with
eInvoicing, or a specially prepared annual overview of the orders
placed, learn what your customers need and offer them the corresponding
functions, processes and services.
25
Implement responsive web
design and mobility in a
user-oriented manner
Responsive web design and mobility play a
different role in the B2B sector than in B2C.
Here it is particularly important to adapt content for mobile
devices to typical usage situations. Special emphasis is given to
user friendliness. Thus, in many cases it is not enough to simply
facilitate the ability to view websites on mobile devices. Content
and functionalities must be adapted for typical uses. For example,
the architect on the construction site or the person responsible
for maintenance in the production hall wants to quickly and
easily find exactly the information that they need right then. This
means that complex product comparisons might not be necessary
for the mobile version of a website, whereas other functions
might be important – such as the ability to quickly find and order
a part or replacement part via an intelligent search function or a
dropdown menu.
Photographs: Fotolia, Diva-e
www.diva-e.com
B2B commerce providers that know their customers
can utilize a well-structured database, are
able to offer each customer precise, relevant content
and profit from loyal customers and increased
revenues. Because the better you know your customers‘
needs, the easier it is for you to offer precisely
the products and services that allow you to acquire,
excite, and retain customers.
About Diva-e
André Lähr, Expert Consultant at
Diva-e Digital Value Enterprise GmbH
The Diva-e Digital Value Enterprise GmbH with
headquarters in Berlin and 9 offices in Germany as well
as a partner office in Cincinnati/USA, offers the
complete solution portfolio for successful e-business
from a single source and helps companies plan,
implement and optimize their projects along the entire
digital value chain. Diva-e unites the strength of six
successful individual brands and creates a new
e-business dimension. With 45 million euros earned in
fees and more than 380 employees in 2015, they are
also among Germany’s leading service providers in
their segment.
f+h Intralogistics 5/2016