PERFORMANCE AND GROWTH DRIVING
TGW Logistics offers a comprehensive suite of end-to-end automated systems and modular technologies designed to overhaul fulfillment operations from the ground up and solve a variety of workflow challenges. Vice President of Business Development, Stipe Galic, tells us more
Writer: Ed Budds | Project Manager: Poppi Burke
Automation can be quantified as the use of machines or technology to perform tasks with a reduced need for human intervention, an innovative approach that looks to streamline processes, enhance efficiency, and reduce human error.
As a result, the use of automation is becoming increasingly prevalent across a plethora of different realms and domains.
Within this burgeoning landscape, TGW Logistics was created in 1969 when Ludwig Szinicz and his friend Heinz König transformed a small metalworking shop in Wels, Austria into what would become one of the world’s most renowned and trusted names in warehouse automation and logistics.
“Today, we’re widely considered a global leader in manufacturing, designing, implementing, and maintaining highly automated, futureproof fulfillment centers for a multitude of industries, including fashion and
apparel, grocery, and industrial and consumer goods,” opens Stipe Galic, Vice President of Business Development.
“Our comprehensive approach ensures that we deliver solutions designed to enhance performance, tackle complex supply chain challenges, and transform distribution centers into strategic assets that support and drive our customers’ growth in an increasingly unpredictable future,” he follows up.
ENHANCING YOUR GOODS-TO-PERSON SYSTEM WITH POUCH TECHNOLOGY
The rise of e-commerce has transformed warehousing and distribution (W&D) operations. Previously focused on bulk orders for retail, these facilities now handle complex sortations for online consumers who often order just one or two items.
GOODS-TO-PERSON CHALLENGES
The shift to goods-to-person (GtP) presents challenges, especially for sortation facilities that now manage tasks previously handled by retailers, like sorting item sizes and colors for B2C orders. Managing returns has become more complex, with e-commerce return rates reaching up to 60 percent. This reverse logistics process involves quality checks, relabeling, and repacking, increasing operational complexity and cost.
A basic GtP system can serve as an inventory buffer or picking system but requires additional configuration for post-picking processes like consolidation, sequencing and shipping. This is where a pouch system comes in, acting as a complementary consolidation buffer to the existing GtP setup without needing complicated reconfiguration.
POUCH SYSTEM SOLUTIONS
A pouch sorter is a conveyance system with hanging pouches that transport items like garments, shoes, and books along a rail. It is flexible and scalable and utilizes overhead space for sorting, buffering, and automating order handling and returns. Pouch systems optimize throughput and order consolidation, manage returns efficiently, and handle sequencing challenges by sorting fragile items last, improving overall efficiency in the returns process.
POUCH AS AN ENHANCEMENT TO GtP
Creating a business case for a new materials handling system varies with each GtP operation. It involves considerations of building type, product sizes, return levels, labor needs, capital expenditure (CAPEX), and operating expense (OPEX).
Pouch systems offer strong advantages, as they can be easily integrated into existing GtP setups, providing midto short-term storage and acting as a shipping buffer with automated sortation. They enhance reverse logistics and
can scale with the growing e-commerce market while supporting digitization for improved data insights and productivity.
Pouch as an enhancement to the existing GtP setup can add value by serving as a pick order consolidation buffer. It also provides the ability to sort and sequence the picked ship orders. Additionally, a pouch system can function as a temporary ship order buffer until ready for shipment.
Pouch technology has existed for decades but is now crucial in modern warehousing and fulfillment operations.
Pouch systems use overhead sortation to transport and sort products in bags or pouches, effectively managing the complexities of e-commerce. They excel in reverse logistics by reducing the costs and challenges of relabeling and repacking returned items for outbound shipment, often without storage.
REDUCING TOUCH POINTS
also leverage AI, ML, and analytics to optimize warehouse operations, predict issues, and support proactive decisionmaking.
BEUMER Group has launched the AutoDrop feature for its pouch system, enabling flexible and reliable automatic packing lines. This innovative design uses a shape-memory nickel-titanium alloy for automatic pouch unloading, reducing manual handling and processing by around 10,000 pieces per hour. Adjustable drop point positions optimize flexibility while minimizing space usage in distribution facilities, streamlining pouch handling, and saving time.
DIGITALIZATION
Integrating physical equipment with software and analytics in modern fulfillment operations is crucial. Software provides visibility, accurate forecasting, and better decision-making, helping manage complex logistics. A key goal is to minimize latency between fulfillment planning and real-life events.
A WMS is essential for digital transformation, streamlining goods flow and resource use. It integrates physical systems like pouch sorters and AMRs with technologies such as auto-ID and voice solutions, enhancing productivity. A WMS uses IoT sensors to track assets, monitor stock levels, and locate lost items. It can
Integrating equipment and software in a WMS can transform the W&D industry, driving full digitization and significant improvements in efficiency and performance. Central to this is the pouch warehouse management system (WMS), which digitizes inventory management and order consolidation. This digital approach enhances tracking, traceability, and control, enabling process optimization for improved fulfillment efficiency.
CONCLUSION
An existing GtP setup might not efficiently tackle post pick processes like order consolidation, pick order sortation or sequencing. Additionally, it may require the pick orders to be stored back into the inventory. This would lead to inefficient use of the storage buffer. A pouch system essentially solves these challenges my acting as an enhancement to the existing GtP setup.
Additionally, A pouch system can function as an excellent addition to automation capabilities to handle the returns shipment.
BEUMER Group can help identify the best opportunities for enhancing your existing setup to address improvement in fulfillment accuracy, reliability, and productivity.
NORTH AMERICA OUTLOOK:
DO YOU FIND THE AUTOMATION INDUSTRY AN EXCITING LANDSCAPE TO BE INVOLVED IN?
STIPE GALIC, VICE PRESIDENT OF BUSINESS DEVELOPMENT:
“Yes, I find it a super exciting sector to work in, and the reason why I fell in love with the automation industry is because I get to be involved with lots of big, exciting projects and work alongside some of the best brands in the world.
“Our work at TGW Logistics puts us in the room with executive teams of global retailers and brands, driving the future of supply chain innovation. Shaping what’s next alongside industry leaders? Now that’s the kind of game I love to play.
“At the same time, another exciting aspect of being involved in the industry is that when I walk into a store or go to order an item from somewhere like Amazon, I can fully understand the entire distribution process and what is going on behind the scenes across the whole value chain.”
TGW Logistics is a foundationowned company, still headquartered in Austria, and a trusted systems integrator with more than 50 years of experience.
Now boasting over 4,500 employees spanning Europe, Asia, and North America, TGW Logistics combines its wealth of expertise, innovation, and customer-centric dedication to help keep its clients growing and transform their warehouse logistics into a smooth and efficient operation.
“We are a one-stop solutions provider, offering not only cuttingedge technology for distribution centers but also the essential software to ensure seamless operations. Our focus extends beyond simply implementing technology – we strive to make life easier for operations teams by creating smooth, efficient, and user-friendly solutions.
“With our extensive global presence, we are able to provide this full range of technologies, services, and expertise in all our locations worldwide,” Galic prides.
INNOVATE, INTEGRATE, ELEVATE
TGW Logistic’s impressive array of solutions are delivered through three key business areas – Integration Business, Distributor Business, and Lifetime Services.
“As a systems integrator, we design, implement, and maintain fully integrated and highly automated warehouse systems, as well as modernize warehouses to make them future-ready – this is the biggest portion of our revenue streams,” says Galic.
“From concept and detailed planning to execution, we ensure a seamless experience from design to implementation and beyond. By analyzing our customers’ current and future needs, we match them with the right designs and solutions to drive efficiency.
“Our goal is to deliver best-in-class process flows that optimize cost per piece handled, because it’s not just about selling technology - it’s about creating smarter, more effective operations,” he furthers.
TGW Logistics expertly empowers businesses to move, store, and pick goods reliably, transforming operations with smarter, faster, and more adaptable processes that are prepared and ready for anything the future brings.
The second key portion of its operational umbrella is represented through its Distributor Business, which provides mechatronic technologies to other systems integrators.
“We partner with intralogistics system integrators to provide high-performance subsystems and leverage our deep industry expertise to navigate market opportunities together.
“By providing best-in-class technology, we empower integrators to deliver exceptional results for their clients,” Galic affirms.
The third key portion is Lifetime Services. TGW Logistics’ service packages ensure maximum warehouse availability, protecting investment with tailored support options – from essential spare parts to 24/7 virtual support to full-service on-site maintenance and more.
With guaranteed 98 percent system availability, real-time visibility, optimized operations, and reduced ramp-up times, businesses can focus on meeting service level agreements (SLAs) and growing their operations with confidence.
The best automation in the world is worthless if it isn’t reliable and doesn’t achieve the committed availability rates needed to meet SLAs,” Galic affirms.
SMARTER SUPPLY CHAINS, STRONGER BUSINESSES
One sector in which TGW Logistics
continues to play a pivotal role is the broader retail industry, a dynamic and rapidly evolving market shaped by shifting consumer expectations, technological advancements, and increasing pressure for operational efficiency.
Consumer behavior is changing at an unprecedented pace, influenced by digitalization, e-commerce growth, and the need for seamless omnichannel experiences. Retailers must continuously adapt their supply chain strategies to keep up with demand fluctuations, shorter delivery windows, and the rising preference for sustainable practices.
The industry also faces ongoing challenges in attracting and retaining skilled labor, further compounded by shifting workforce demographics and evolving job expectations. At the same time, rapid technological innovation requires businesses to stay agile, integrating new solutions that enhance efficiency and scalability.
Historically, many retailers primarily focused on product development and brand positioning. However, in today’s landscape, an optimized supply chain is no longer just a support function – it has become a key driver of strategic success. Efficient logistics and distribution networks are essential to navigating increasing complexity, meeting customer demands, and maintaining a competitive edge.
“THE BEST AUTOMATION IN THE WORLD IS WORTHLESS IF IT ISN’T RELIABLE AND DOESN’T ACHIEVE THE COMMITTED AVAILABILITY RATES NEEDED TO MEET SLAS”
– STIPE GALIC, VICE PRESIDENT OF BUSINESS DEVELOPMENT, TGW LOGISTICS
Recognizing this, TGW Logistics takes a holistic approach to understanding its customers’ supply chains, ensuring they remain agile and resilient in an ever-changing business environment.
“It is not enough to focus solely on warehouse automation – we must also consider the unique challenges of modern retail logistics and stay ahead of emerging trends,” explains Galic.
Beyond offering a diverse portfolio of automation solutions, TGW Logistics supports its customers with a dedicated team of industry experts who assist in identifying and implementing the right technologies to build adaptable and future-ready distribution strategies.
“Our commitment lies in helping businesses address these challenges by continuously researching industry trends and developing solutions that enable retailers to optimize their logistics operations,” he adds.
Automating a distribution center
involves the seamless integration of various systems and technologies, connecting operations from inbound processing to outbound fulfillment.
“We analyze the entire end-toend process to design the optimal combination of technologies that meet both current and future business needs. Our tailored automation solutions cover all critical processes within the distribution center, ensuring that software and systems work together to coordinate and manage operations efficiently.”
A VALUE-BASED FOCUS
In 2004, TGW Logistics’ co-Founder, Ludwig Szinicz, set out to transform his company into a foundation-owned organization with a bold mission.
“He believed that the company is not just a purely economic partnership of convenience, but a community of shared values driven by a purpose and follows the mission of its foundation,” Galic tells us.
Since its establishment, SINTEC US LIMITED provides a range of installation services of commercial and industrial equipment.
Each Client has their unique meaning of quality. We work closely with everyone to identify specific requirements and to accommodate each project’s needs on a very personal basis.
We are particularly knowledgeable of how international business is structured nowadays. With that in mind, and considering our experience in organizing international projects, we strive to support our Customers on a global scale.
Our offices in UK, US, Latvia and OAE provide more flexibility in fulfilling such standards.
“Each Client has their unique meaning of quality. We work closely with everyone to identify specific needs and to accommodate each project’s individual requirements. Once again, SINTEC has delivered quality workmanship, showed good technical expertise along with flexibility of working to ensure a successful delivery of the project.”
Paul Roman, Director of Controls and Operations Strategy TGW Limited
SERVICES
Our offered services are focused on thorough provision and impeccable implementation of any scale of the projects for our customers, with the aim of making the whole experience straightforward, consistent, and time/cost-efficient.
• Electrical Installation
• Electrical Design
• Procurement of Materials
• Estimation
• Inspection and Testing
• Commissioning Support
150+ 146
• Mechanical Installation
• IT and Fibre Optic
• Manufacturing of CP
• Internal / External / Process Lighting
• Project Management
• H&S Documentation
4
projects completed industry professionals offices in 4 countries
“This community enables personal and technical growth as well as entrepreneurial success. We believe our values-based culture will carry us into the future and foster continued growth – not just for our business but also those who drive our success,” he expands.
For TGW Logistics, this unwavering commitment to both employees and customers, paired with cutting-edge innovation in warehouse automation and logistics, makes anything possible.
Elsewhere, as the owner of TGW Logistics, the TGW Future Private Foundation safeguards the company’s long-term vision.
By reinvesting two-thirds of its profits into employees and the technologies of tomorrow, the foundation fuels innovation and creativity in the fields of warehouse automation and logistics.
TGW Logistics cannot be sold and cannot be bought, making it a reliable employer, financial partner, and pioneer in automated warehouse solutions.
In addition, 10 percent of its profits are dedicated to charitable projects, reflecting the company’s belief that thriving in this industry can and should make a meaningful impact on society.
TGW LOGISTICS CULTURE AND VALUES
HOW TO TREAT EACH OTHER –Show respect and appreciation for all colleagues, promote freedom from fear, and always exude friendliness and trust.
HOW TO LEAD – Promote passion and empowerment, set a good example for all, and win as a team.
HOW TO WORK – Be responsible, results-driven, proactive, and open-minded.
TGW LOGISTICS’ CORE MARKETS
FASHION AND APPAREL – Changing trends and fluctuating demand in the ever-evolving world of fashion requires fast, efficient, and flexible supply chains.
GROCERY – Food storage, material handling, and distribution must be seamless and adhere to safety and compliance regulations. For over half a century, TGW Logistics has been helping grocery companies automate their supply chains with state-of-the-art technology and innovative thinking.
INDUSTRIAL GOODS – The industrial sector demands high quality, exceptional service, and the fastest possible deliveries. To overcome supply chain challenges, companies need agile warehouse solutions that speed up distribution and support omnichannel environments.
CONSUMER GOODS – TGW Logistics’ solutions optimize efficiency and minimize downtime, ensuring seamless operations and complete transparency in all aspects of consumer goods logistics. Additionally, automated workflows help wholesale, retail, and e-commerce businesses reach their fulfillment goals.
“At TGW Logistics, success isn’t measured solely in numbers – it’s reflected in how we interact with one another, what our customers think about us, and profits through principles. We are here to make things possible and create strong supply chain backbones which allow businesses to navigate ever-evolving industry demands. Our core values form the foundation of our corporate culture, shaping our relationships, decisions, and approach to harnessing innovation,” outlines Galic.
“They empower us to create fulfillment solutions that push boundaries and inspire progress in warehouse logistics.”
Today, through a unique combination of business success and social responsibility, the company remains a leader in warehouse automation and a model of exemplary entrepreneurship.
“It’s how we ensure sustainable growth together – today, and for generations to come,” Galic finishes.
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Built to Fit Your Systems
Automation is transforming the way industries operate, and reliable packaging plays a key role in making these systems work. At Utz, we design reusable plastic totes, trays, and containers that work perfectly with robotic solutions and conveyors.
Whether you’re upgrading an existing system or starting fresh, our packaging is tailored to optimize your processes and increase productivity.
Reusable Packaging Solutions for Smarter Automation
At Georg Utz, Inc., we help businesses work more efficiently with innovative, reusable packaging solutions. For over 77 years, we’ve been creating durable, custom-engineered products that integrate seamlessly with automated systems.
With eight locations across three continents and a team of 36 specialized product design engineers, we’re here to support your automation needs.
Save Costs and Support Sustainability
Reusable packaging benefits both your business and the planet. By reducing waste and replacing single-use materials, our solutions help lower disposal costs while offering better durability and reducing product damage. This combination of savings and sustainability helps businesses meet their operational and environmental goals.
Custom Solutions for Unique Needs
Every business has different challenges, and we specialize in creating solutions to meet them. Our team works closely with you to design, prototype, and produce packaging that fits your operations perfectly. With decades of expertise and advanced manufacturing tools, we ensure your packaging is as efficient as your systems.
Collaboration That Delivers Results
We believe great outcomes come from working together. Our partnerships with system integrators and end-users have shown how collaboration leads to reliable, efficient systems. By combining your automation expertise with our packaging knowledge, we create solutions that drive success.
Experience the Utz Advantage
When you choose Georg Utz, Inc., you choose an experienced partner committed to your success. Our global expertise, technical innovation, and focus on sustainability make us the right choice for businesses looking to improve their automation with reusable packaging. Ready to see the difference?
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