Outsourcing logistics services is becoming increasingly popular. But how do you choose the right operator to handle distribution across Europe? What requirements should a good logistics company meet?
Running a business is a major undertaking, so it is worth relying on solutions that optimize the efficiency of its individual parts. Outsourcing, or moving part of your operations to an external entity, can be the best solution. This is especially true for logistics, which is very costly and particularly demanding in terms of professional knowledge and experience. How do you choose the right logistics operator if you want to distribute to European markets?
Extensive logistics network
One of the basic requirements for a good network is its proper location. Branches and transshipment points should be conveniently located in relation to transport infrastructure, commercial and industrial centers, as well as sales offices and customer delivery points. Proximity to transport hubs, motorways, expressways, or railway sidings optimizes the supply chain and transport costs.
– The Dachser European Logistics network is one of the best-developed on the continent, currently covering as many as 236 branches – says Grzegorz Lichocik, CEO of Dachser in Poland.
Entrepreneurs shipping goods domestically appreciate Dachser’s infrastructure in Poland. It is good for branches to be located near warehouses and customers, as well as close to roads. Due to the poorly developed road infrastructure in Poland, this can sometimes be difficult.
– Dachser has been operating in Poland since 2006. Our country has very quickly – mainly due to its central location in Europe and its proximity to the Czech Republic, Slovakia, Hungary, as well as Russia and Ukraine – become a logistics hub for the region and a place for transshipment between the west and east of the old continent – explains Grzegorz Lichocik.
For Polish exporters who trade most with their neighbors, distribution capabilities in Germany and France, as well as in the Czech Republic, Slovakia, and Hungary, are very important. Since Dachser originates from Germany, the highest density of its branches is in this part of Europe. The company currently has 77 branches there, and 63 in neighboring France. In Poland, Dachser currently has 8 branches, 8 in the neighboring Czech Republic, 4 in Slovakia, and 14 in Hungary.
IT system
An effective, well-functioning network should, above all, be consistent. This can be ensured by an IT system that enables efficient management of the entire network. Unlike other logistics companies, Dachser uses the same proprietary IT system everywhere to manage transport and warehouse logistics.
– Thanks to this, for example, a shipment sent in Poland will appear under one number in the system in every country where Dachser operates – says Grzegorz Lichocik. – This enables a high level of control and constant monitoring of transport and warehouse processes. In the event of any deviations from procedures, the system generates appropriate information for the relevant branch and the customer.
Using a single system allows for the optimization of routes and fleet utilization. It helps in both planning and executing tasks, as well as in reporting and analyzing logistics processes. It is worth paying attention to the possibility of connecting the operator’s system with the system used in your company.
– The IT systems in our company are based on modules that we are able to adapt to any company – says Grzegorz Lichocik. – For our clients, we also offer an EDI (electronic data interchange) system, which improves communication.
Procedures
The most important thing is that shipments arrive safely and on time at their destination. This is guaranteed by the procedures used by the operator and the communication system with the client. At Dachser, thanks to the use of organizational and functional procedures and the use of a single IT system, communication is exceptionally efficient.
– Transport in every country is the same because we have the same procedures, processes, and organizational structure everywhere. In case of any problems, employees react immediately and quickly explain their cause, and the customer is informed about it immediately – explains CEO Lichocik. – The same procedures applying throughout Europe also make work easier for our clients.
The best possible solutions
It is important that the logistics operator, based on its network and capabilities, can propose the most optimal and tailored solutions that maximize efficiency and minimize costs. For its clients, international companies operating in our part of Europe, Dachser proposes, among other things, a solution based on a central warehouse.
– It is beneficial for both the largest global corporations and smaller companies operating internationally that treat the Central and Eastern European region as one market where they offer the same products – says Grzegorz Lichocik. – It is based on optimizing storage costs. A central warehouse, located geographically in an optimal way in terms of distribution, handles deliveries to customers in the region. This solution can lower logistics costs, reduce the number of warehouses, administration, and inventory, while maintaining the delivery deadlines and high quality of services required by customers.
It is good if the operator is able to take on exceptionally difficult, complex orders.
– Due to the use of a single IT system, we are the right operator for tasks requiring the synchronization of many deliveries at the same time, e.g., to hundreds of stores of one retail chain across the country. We can rely 100% on our systems and procedures, which is why we successfully take on orders that may prove impossible for other logistics companies to fulfill – explains Grzegorz Lichocik.