to be the Leading Logistics Provider in Central and Eastern Europe
BUSINESS INTERVIEW
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Piotr Sedziak, Supply Chain Director at Orbico Group, discusses his company’s vision to be a digitally and operationally synchronised supply chain solutions provider across Europe. be the Leading Logistics Provider in Central and Eastern Europe
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rbico Group is a leading distributor of a diverse range of products, as well as being a 3PL provider, working across 20 different countries. Headquartered in Croatia, the company primarily focuses on the regions of Central and Eastern Europe. Piotr Sedziak, Supply Chain Director at Orbico Group, explains, “The distribution part is divided into two main streams – the first is related to FMCG goods, and the second relates to beauty products. We offer 3PL logistics services across all our geographies, with our main markets of Poland, Romania, Croatia, Bulgaria, and Slovenia, and with the aspiration to grow in the future. We are a three billion euro turnover company, spanning over 200,000 square metres, with more than 2,000 people inside our logistics organisation, and over 1,200 vans and trucks in our network.”
5 From a supply chain perspective, Orbico Group’s mission is to be a digitally and operationally synchronised supply chain solutions provider across Europe. Piotr continues, “Our vision is to deliver efficient supply chain solutions for our internal and external customers, supporting both distribution and development of the 3PL service. We have three strategic ambitions including excellence of the supply chain solutions for our internal and external customers, significant growth of the 3PL service scale, and development of the transport services across our organisation. This is the direction in which we are Ongoing.”the contract logistics development side, Orbico Group works across a number of different industries, from FMCG, beauty, tech and electronics, to tobacco, food and beverages, fashion and toys. Piotr says, “We
6 specialise in providing inventory management, value-added services, transport management, ecommerce, and complete supply chain solutions across these sectors. All services are supported by our IT solutions and reverse logistics solutions. If a customer does not have their own IT infrastructure, we can provide the complete IT infrastructure needed to realise their transport and logistics services. Combining the role of distributor and contract logistics provider for both internal and external customers is one of our challenges, but at the same time, it allows us to have synergies. A good distribution network, sharing the costs between distribution and with our 3PL customers, gives us the opportunity to offer our new customers a more competitive Asproposal.”farasautomation and infrastructure are concerned, Piotr elaborates, “It is important to understand that we have different levels of automation –we have software automation and we have hardware automation. The former has a high level of integration across the systems, with at least three different types of software including WMS, TMS and extended automation systems inside the warehouses. In the last year, we have launched solutions supported by automated software in both Poland and Bulgaria. Automated hardware includes conveyor systems, pick by cart,
7 and cargo systems. We are also looking into autonomous mobile robots and voice picking solutions to support the picking efficiency of our “Forwarehouses.me,thesoftware should be determined by well-designed process flow and act like the nervous system of the overall logistics. It must work efficiently and react quickly to any changes. The distribution part is more predictive than contract logistics, so the software must be flexible enough to support the changes Orbico Group supports its overall business strategy through five main pillars of development: orientationCustomer-centric1 Cost effectiveness2 People3 Automation infrastructureand4 Sustainability5
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“For us, it is important to get full profit from our regional presence. My vision is that we will be a leading logistics provider in Central and Eastern Europe, supporting any distribution request whilst providing general solutions based on the country or region”
Piotr Sedziak, Supply Chain Director
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orientation refers to Orbico Group’s 3PL distribution role, finding the right formula for supporting both streams of the business. Piotr says, “It is necessary to support different business models, as illustrated by the Covid situation, which saw huge pressure for the transformation of the logistics function from B2B to B2C. The challenge now is to create one network supporting B2B, B2C, wholesalers, modern trade, traditional trade, and
11 expected by the contract logistics customers. It is about creating a digital ecosystem, making sure all our systems across Europe are standardised and talking the same language, without the need for any manual transfer of data. We are working hard on extending our warehouse network, with new distribution centres in Poland and Bulgaria, both with automation in place. We are also planning a new site in Croatia, and implementing automated solutions, so it is fair to say the network is Customer-centricgrowing.”
“We encourage cooperation, and we are currently in talks with Stamh on how we can work together on other projects in the future”
12 all the different types of product. On top of the adaptation of the supply chain network supporting the different business models is quality management. This refers to the visibility of the operations for customers, and the consolidation of the software that is used to support Thethis.”main streams of activities related to cost effectiveness include operational excellence, productivity increase, and implementation.innovationsThelatter involves looking at what is available on the market, testing it, and implementing it if it has proven to have value. Furthermore, people is about making the workplace a safe place for Orbico Group’s employees, creating a culture of high performers, the feeling of being part of a team, and developing the reputation of being a competitive employer in the Themarketplace.finalpillar, but perhaps one of the most important, relates to sustainability. Piotr explains, “There are three reasons why sustainability is important right now. The first is the fact that we can all see climate change is happening and we need to react. We need to have some sustainability ambitions to meet ESG targets. The second point is that legislation is changing, which is imposing new regulations either now or in the future, so companies must be prepared to adapt. The third reason refers to customer expectations. Customers increasingly want companies to respond to sustainability challenges.”
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As a final point, Piotr shares Orbico Group’s vision for the future. He concludes, “For us, it is important to get full profit from our regional presence. My vision is that we will be a leading logistics provider in Central and Eastern Europe, supporting any distribution request whilst providing general solutions based on the country or region. Our future supply chain must be well-recognised in this part of Europe and synchronised, so as to be able to support the needs of the customers which expect a regional approach. We will create a strong logistics network comprising transport and warehousing, which will support our distribution activities and increase the 3PL part of the business.” For further information, visit www.orbico.com
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Two of Orbico Group’s partners include Stamh and Mach. Stamh was responsible for the implementation of the solutions in Orbico Group’s new logistics centre in Bulgaria, whilst Mach played a role in designing the distribution centre in Romania a few years ago. Piotr adds, “We encourage cooperation, and we are currently in talks with Stamh on how we can work together on other projects in the future.”
Piotr says the five pillars are helping to create a resilient, operationally and technically efficient supply chain for Orbico Group. The projects underpinning the pillars are now in their second year of execution, with several larger projects planned within this phase. So, how important is it to work with partners to maximise success? Piotr answers, “It is very important to work with partners given the demands of the marketplace. We are all facing shortages in the supply chain, longer delivery times, and greater costs. The right selection of partners and long-term cooperation are key to achieving the right level of support. Having a relatively extended network of partners can therefore help in realising the business strategies.”
“Mach played a role in designing the acentredistributioninRomaniafewyearsago”
16 www.orbico.com