ROHLIG SUUS Logistics

What are some of the major challenges and trends that have been impacting the Logistics Industry?

After two years of brakes in supply chains due to COVID-19 and the war in Ukraine, major issues for the logistics industry are costs and availability of warehouse space. Poland, as the largest reloading hub, is currently struggling with increasing rental costs caused by increased financial outlays related to the construction of the warehouse (cost of steel, other building materials, labour, etc.) and energy prices.

In addition, a significant slowdown in the global economy is expected as early as 2023. We are noticing reduced volumes moving through Europe. Most industries have been optimizing processes and looking for savings for months.

Definitely, ESG is finally gaining momentum. Rising costs of energy determine growing investments in renewable energy, but also more and more businesses understand their social and ecological impact and try to comply with European and UN sustainability goals.

As an international family company, for years we have ensured, that our business strategy is implemented in line with sustainable development goals. Our activities take into account the interests of employees, clients, contractors, and the social environment. Our ESG priorities comply with the perspective of our key stakeholders - employees, drivers, carriers, and customers.

We are very aware of that therefore, e.g. facilities that we use have received the BREEAM certificate for assessing buildings in terms of their environmental performance. We aim to reduce raw materials consumption as much as possible in all our business activities, also in warehouses when picking orders. For the first time, we calculated our carbon footprint and we feel, that this issue is more and more important for our clients.

However, not only environmental changes require fast adaptation of business processes. Security and technology solutions will be the competitive advantages, distinguishing leaders from laggards, and highly profitable companies from struggling businesses. This is why selection of the right tools for the rapidly changing environment, data management and being (quality)data-driven organization will speed up decision making processes, also for our clients’. But most importantly, data as the new oil, will create new business models.

What keeps you up at night when it comes to some of the major predicaments in the Logistics Industries?

First of all the high maintenance costs of our warehouses (electricity, gas), but also a shortage of drivers. These are the problems our industry is facing – hopefully they will be also factors speeding up the innovations.

Europe’s trucker shortage is the result of increased demand for transport, as well as the aging of the truck driver population. Additionally, increases in wages due to soaring driver shortages were a key factor for the increase in the operating costs of haulers across Europe.

“However, not only environmental changes require fast adaptation of business processes. Security and technology solutions will be the competitive advantages, distinguishing leaders from laggards, and highly profitable companies from struggling businesses.”

Energy prices and inflation that affected the whole of Europe are also something strongly influencing our business.

Swirling inflation and rising energy rates have triggered a cost-of-living crisis across Europe, not only for households but also for businesses for whom maintaining production and employment is increasingly challenging. Diesel costs have also risen sharply and so have become another driver of transport costs increase for carriers. We could call our industry's problems Big Supply Chain Raises.

Can you tell us about the latest project that you have been working on, and what are some of the technological and process elements that you leveraged to make the project successful?

Recently, we have implemented another project (VMI) Vendor Management Inventory for one of the automotive companies which have a production plant in Poland. VMI is a solution for large production and commercial companies who have their suppliers outside the EU e.g. in China or India and want to have production components close to their factories, but not necessarily own them.

Supply chains designed in this way allow time savings from call to delivery, reduce inventory and improve cash-flow, because of payment for the goods, customs, and tax duties only upon clearance and delivery. This solution is more and more often used due to supply chains crunch and limited availability of components.

To meet our clients’ needs, we primarily use our experience and tailor-made TMS and WMs, which allow for full track and trace of products and more. In our solutions, we also use AI elements and the platform (Client’s Portal), which is a tool designed specifically for our company to ensure the comfort of our customers in the area of custom experience.

What are some of the technological trends which excite you for the future of the logistics Industries?

Our industry is constantly looking for solutions to automate processes. Warehouse administrative processes even during recruitment processes. We automate repetitive work performed by employees. What excites us – especially considering the shortage of drivers – are autonomous cars. What we hope for is also fast adoption of 5G and Internet of Things, as it would help to speed up logistic operations and also increase Europe’s capability to compete in global markets.

How can bud and evolving companies reach you for suggestions to streamline their business?

We conduct webinars about the costs and designing logistic solutions but also how to optimize costs with customs warehouses. We invite you to our website, where you can submit an inquiry regarding our services.