VTG expands data offering

COOLING OFF

RESULTS • ECONOMIC SLOWDOWN IN EUROPE IN THE SECOND HALF OF 2019 HAS IMPACTED BERTSCHI’S EARNINGS BUT IT IS STILL FINDING GROWTH ELSEWHERE IN THE WORLD

SWITZERLAND-BASED INTERMODAL operator Bertschi has reported 2019 revenues of SFr 985m (€917m), a 1.3 per cent increase over 2018’s results. The results were impacted somewhat by the strength of the Swiss franc: in local currency terms revenues improved by 3.6 per cent.

Indeed, international operations were the primary drivers for growth, with Bertchi noting that its European business was “increasingly tepid”, particularly after the middle of the year, with what it calls “significant headwinds” in Germany in particular. However, the company notes, “In spite of the difficult economic environment, timely and resolute cost management enabled Bertschi to maintain earnings just about consistent with the previous year’s figures.”

BERTSCHI’S TRUCKTRACER APP IS ALREADY

One focus for Bertschi has been the implementation of complex supply chain solutions, allowing it to offer comprehensive concepts encompassing order management, transport, storage, product handling and goods distribution. Such concepts are also increasingly used in global logistics chains. “In-house hubs, such as the logistics centre in Singapore, play an important role in the storage, filling and distribution of liquid chemical products in south-east Asia,” Bertschi adds.

Another major element of its work during 2019 was the roll-out of the Bertschi TruckTracer app. “Our drivers and all company partners receive their order data through the app and then record every step of the transport chain on it,” says Michael Bächler, group CEO. “This data flows into the group’s transport planning system and from there on to customers through various interfaces. This real-time data is used to optimise internal transport planning, while customers benefit from visibility and more planning security in their delivery chains.” By the end of the year, Bertschi had been able to implement this transparency tool in 95 per cent of all European transports.

DIGITISATION AND SUSTAINABILITY Looking ahead to 2020, group CEO Jan Arnet is cautious: “Last year we saw a notable and steady cooling-off of the economy, and in Europe in particular important industry sectors have slid into recession. We expect this trend to continue in 2020, with corresponding effects on transport demand. I expect that our global orientation will allow us to offset regional sales declines to some extent. But we will continue to have a strong focus on cost developments in 2020 as well.”

In this challenging environment, the ongoing digitalisation strategy will continue. The objective of the digital transformation is to enable efficiency gains in business processes while simultaneously generating added value for customers. One component of this is the SmartTainer project, which will go into an initial implementation phase in 2020 following pilot testing last year. GPS and sensor technology in about 1,600 tank containers will enable parameters such as the position of the container and the temperature of the loaded product, to be recorded and monitored in real time. This will enable the company to set new standards in terms of customer service, safety and efficiency, particularly in intermodal transport chains.

Bertschi is also focusing strongly on sustainability. In Europe it conducts 90 per cent of all overland transport by intermodal rail and will continue to expand this service in 2020. Sustainable concepts are also being implemented in other areas, such as the development of completely recyclable transport aids for loose plastics (GreenLiner) and the campaign to replace non-recyclable flexibags and barrels with tank containers in the transport of liquid chemical products. www.bertschi.com

PLANNING PAYS OFF

REVIEW • 2019 WAS A TOUGH YEAR FOR MANY LOGISTICS OPERATORS, BUT AS THEY TAKE TIME TO REFLECT, THERE ARE SIGNS OF GROWTH AND RECOVERY IN EUROPE, AS RABEN GROUP EXEMPLIFIES

IT MAY WELL be the case that 2019 will go down in industry history as a year of uncertainty and challenging trade environments, but it still had its successes. Raben is certainly one business entering 2020 smiling after a strong – albeit turbulent – previous 12 months.

The main headline is that Raben generated €1.25bn of revenues during 2019, an 8 per cent increase on the previous year, but there was much more to celebrate than just numbers. Throughout the year Raben developed its European logistics network, expanded its connections with Germany, completed a two-and-a-half-year long expansion project and received several awards.

This was complemented by the completion of the expansion project in Eisenach, Germany, which received modern warehouses, a workshop with a truck wash and new offices. As a result of the €6.5m investment, Raben now has 40 per cent more warehouse capacity in Eisenach, comprising four logistics warehouses, two cross-dock warehouses and 74 loading docks.

Throughout 2019 there was also the development of many new direct lines from Raben Group countries to Germany. Connections to Romania, the Czech Republic, Slovakia, the Baltic States, Ukraine and the east grew dynamically throughout the year and are set to further regional growth across 2020. The addition of Bulgaria as a market in November 2019 means Raben now operates in 13 markets across Europe with a network of 150 depots.

Two-thirds of Raben’s European logistics operations now consist of road transport services; contract logistics accounts for 13 per cent, full truckload (FTL) for 8 per cent, fresh logistics for 8 per cent, and lead logistics provider services for 4 per cent, with the remaining 1 per cent representing sea and airfreight activities.

FUTURE AIMS Ewald Raben, Raben Group CEO, explains how the company has been working to provide quality and solutions for partners: “We have many long-term customers. Their business has been changing over the years and we are adapting to them. We are partners and together we solve problems which emerge. We also grow together. This constant development is inscribed in the DNA of our company.

“We are adding more and more locations and new countries to our European network,” Ewald Raben continues.. “Last year Bulgaria joined our family, we are also expanding our business in Germany and Italy. We already have many good domestic distribution networks, and the domestic network is like a human being. It’s the backbone which can support the whole body. This means we can run international business; we can offer sea freight, air freight and contract logistics. If there is no backbone of domestic distribution network in the country, we perceive it as a bad set-up.”

Additionally, Raben is aiming to standardise its cross-docks across Europe to enable the collection of goods from any location, provide deconsolidation of shipments and further redistribution as customers need it. The goal is for all cross-docks to have the same set-up, the same processes and IT systems. As Raben states: “For us and our customers, standardisation means optimisation and the highest quality of provided services”. www.raben-group.com