Space required!
The production of processed foods reaches new record highs every year despite the continued decline in population figures. And what consumers demand and the industry produces has to be transported to the point of sale – quickly, punctually and with the appropriate care food handling requires. For a network operator like DACHSER Food Logistics, more volume doesn’t just mean more vehicles, however.
DACHSER Food Logistics moved more than four million tonnes of foodstuffs last year; that was well in excess of 12 million pallets. Placed end-to-end, this corresponds to a chain that is almost as long as the American Cordilleras – from Tierra del Fuego to Alaska: more than 14,400 kilometres.
Most of the goods DACHSER transports are handled by the 25 domestic branches in the groupage network. Thousands of pallets from all over Europe arrive at the branches every night, ready to be forwarded to retail warehouses, gastronomic outlets or industrial enterprises for further processing. This kind of volume requires space, not only when it comes to transport, but also when it comes to transshipment. For a network forwarder, all roads lead to the transshipment terminal.
These days, expanding vehicle fleet capacities is far from simple. Freight space is rare and qualified drivers are also in short supply. Even acquiring new fleet equipment currently entails a wait of more than six months. These circumstances alone present operational staff in all branches with an enormous challenge. And when this short supply goes hand in hand with double-digit growth in tonnage, it is not difficult to figure out that a superhuman effort is necessary. The customer sometimes also feels the effects of this more than in the past – for example in the annual negotiations.
Space required!
Expansion and consolidation – DACHSER Food Logistics revs up
Adjusted for price, the production of processed foods rose by 2.2% in 2006 according to estimates by the Federation of German Food and Drink Industries (BVE). At DACHSER Food Logistics, tonnage increased by as much as almost 16% on a year-for-year basis. That is more than the long-term mean growth.
To enable it to focus on this ongoing organic growth trend, DACHSER is investing considerable sums in expanding its facilities across Germany, especially near major conurbation areas. This year alone, six Food Logistics terminals have been newly established or considerably expanded. Another five are planned for 2008. In terms of temperature-controlled transshipment area, the Food Logistics network will gain 45% (!) in these two years alone.
This is an enormous step forward; not only for securing growth, but also as regards efficiency and quality. More area means more space for goods; more bays mean more and simultaneous loading and unloading as well as fewer redocking manoeuvres. Incoming and outgoing processes are streamlined, the trucks have a faster turnaround. In short: more goods are transshipped in less time.
Unproductive times where drivers have to wait for a free bay and staff have to arrange the waiting trucks in the right order, are reduced. This is a decisive point when it comes to optimally exploiting the new legally permissible working and driving hours. As an added bonus, more space and improved structures also tend to minimize the risk of damage – at no extra cost.
All new buildings are constructed in accordance with building and air-conditioning standards, which are pioneering even for components suppliers. The latest generation of transshipment halls all feature eco-friendly cooling systems, interior gatehouses and loading bridges with sectional doors down to the ground. The driver does not even have to alight from the vehicle for docking; the tailgates are opened in the unloading area and no longer outside. This much faster processing greatly reduces uncontrolled temperature losses from the vehicle. And the heat induction previously caused by the exterior loading bridges being warmed up by the sun is now also a thing of the past; with the new technology, the bridges are located directly in the cold room. The icing on the cake as far as the energy balance is concerned are inflatable dock seals which automatically surround the vehicle wall after docking. What’s more, the system is also more hygienic: the doors close right down to forecourt level, meaning that no dirt can accumulate in and under the loading bridges.
Like this, DACHSER Food Logistics has added one more brick towards building a process organization that combines maximum food safety with economical use of resources.
Space required!
New warehouses totalling 56,000 square metres
DACHSER would not call itself a logistics provider if its logistics processes were limited to the transport and transshipment of goods. In the period under review, new temperature-controlled warehouses are being built at seven locations covering a total area of almost 56,000 square metres. The facilities feature improved goods transfers between the warehouse and the transport zone. This advantage makes itself felt in particular in Contract Logistics operations involving procurement, warehousing and distribution, which are growing at a disproportionately high rate and where the time factor is especially critical. The new facilities in Neuss and Neufahrn (near Munich) are already up and running.
The medium-term adaptation of structures to the growing demand – above all for chilled goods logistics – is by no means finished for DACHSER Food Logistics with the planning for 2008, although given an expansion of the transshipment area by a factor of 1.5, one could be forgiven for assuming so.
With growing frequency, consumers in Germany are also starting to reach for fresh and wherever possible natural and ready-to-eat convenience and organic products. Because they are free of all those unpopular preservatives, organic and above all chilled foods such as mixed salads, fresh juices and soups only keep for a short or at least shorter time than conventional products. It is therefore imperative that they be delivered especially fast and under temperature-controlled conditions. As yet, these products do not represent high-volume business. For the proffering supplier, therefore, this means that for distribution as well as for procurement the only option is to maintain his own vehicle fleet or use a network operator with an uninterrupted refrigeration chain and a high level of quality.
For the chilled food growth segment with sell-by dates of two to four days, DACHSER Food Logistics is also developing a distribution concept for all sales channels that can be adapted to the desired level of service. Including, if required, subsequent shelf service and product-related activities at the point of sale.
The positive reaction of growing numbers of discriminating customers over the past few years has made DACHSER confident that these services will also be welcomed by producers in this segment. After all, it is this encouragement that has made the investments in the infrastructure necessary in the first place.
Find out more about the range of services offered by DACHSER Food Logistics
eLetter overview 04/2007
