Kill serial offenders, unleash profits
June 1st 2008 With internet retailing showing no sign of topping out, and consumers looking for best
price and fastest delivery, moving goods rapidly and accurately is paramount. TGW's Phil
Steeds says automation and mechanisation that meets current and (as yet unquantifiable)
future needs will sort the intra-logistical wheat from the chaff. Brendan Coyne reports
Once hidden behind integrators,
TGW decided last year the time was
right to enter the UK. Despite a
crowded market, the firm clearly believes a
UK arm makes strategic sense. So what sets
TGW apart from manifold competition? "We
have some unique niche products in the
area of order consolidation where we can
uncouple what are historically serial
processes and make them parallel
processes – and uncouple the difficult
manning issues that [uncoupling] can
otherwise bring," explains UK sales director,
Phil Steeds. "We have a niche product for
picking systems where we can provide high
speed, accurate picking systems for cartons
and/or totes and our miniload equipment is
genuinely 'best in class'. Across Europe we
average around 500 miniloaders a year
which is around 40 per cent of the market,
according to the FEM.
Flexibility
"With mechanisation or automation, the
key is ensuring flexibility. That's where we
have some distinct advantages," Steeds
continues. "We can uncouple the processes
of moving product from inside the
warehouse to the outside, so they become
flat, essentially independent of each other.
Therefore throughout the day you can
balance your working load optimally, move
people around as they become a limiting
resource, and use the technology to create
the buffers and selection processes needed
to achieve delivery times, or vehicle loading
within a given time slot. TGW is very good
at creating products that fit those niches."
e-tail therapy
Backed by its Austrian parent company, the
UK arm has already completed five projects,
and has another five in progress. Of these,
TGW's first project direct with Boots
(through its partner iForce) perhaps best
illustrates the requirements of the
developing e-tail market.
"Boots has been quietly putting its
products to the market via the internet –
everything from buggies to child car seats
to deodorants," says Steeds. "Pretty much
everything in store is being made
available online." Steeds says the growing
retail-to-etail trend is stretching home
delivery systems, increasing the need for
accurate picking and material flow to
avoid disproportionately high returns and
their botom line impact. For the retailers,
and their 3PL partners, the knowledge
that demand hasn't yet peaked can inhibit
their willingness to invest in advanced
automation/mechanisation systems. But
with a predominantly migrant labour pool,
throwing people at the problem isn't a
sustainable solution. Steeds says this is
where TGW, with modular solutions "and
one of the broadest start-to-finish-unit
handling ranges", can help.
"What's right today isn't necessarily right
for tomorrow so what we're doing with
Boots through iForce is a simple transport
and sort system because that is what's
required right now. Boots sees a benefit and
a rapid ROI and will move forward as and
when the market shows some stability."
He says TGW's modular approach enables
clients to add on what they need when
they need it – and get the best out of their
investment for the present. "Profiles change
throughout the year – barbecues don't
move until summer, mince pies don't sell
until Christmas. And retailers, behaving as
they do, put promotions on at any given
time that make products move very rapidly.
We are flexible in the solutions we put
forward so the client benefits regardless of
targeted SKU."
But it's not just retailers in TGW's sights.
Steeds says once working with a retailer,
the plan is to follow that supply chain, as it
has done successfully in Spain with
supermarket Mercadona.
Rapid deployment
As with its European projects, TGW UK
deploys expert technicians from its Austrian
central pool to undertake major projects.
"Globally, wherever a project is designed it
is handed to a team in Austria which then
works with the factory – so that when we
deliver it is to a layout drawing, which is
also a sequence of build," Steeds explains.
"When we arrive on site, our team and our
partners have an excellent understanding
of how the project will be delivered, and it
ensures an extremely rapid deployment."
Most of its projects in the UK so far have
been on brownfield sites, but by utilising its
central resources, Steeds says TGW has
been able to implement solutions to tight
schedules without interrupting business.
So who should consider approaching
TGW? According to Steeds, most businesses
that need goods delivered yesterday. "Any
firm facing pressure on their business for
highly reliable, responsive, rapid movement
of product: anywhere performing picking,
anywhere where you have to sequence
against time, where a very accurate
performance of your pass rate to market is
vital – be it a supplier of car parts to the
automotive industry or an e-tailer ensuring
goods are delivered the next day. That covers
a very wide spectrum but it's why so many
integrators have adopted TGW product into
their offering: it delivers high performance,
accuracy and longevity. And by dealing with
the OEM you protect yourself from
obsolescence. Not to mention any
disintegration to the relationship between an
integrator and supplier that may occur."
For details of TGW's tote and carton
conveyor systems, storage systems, pallet
conveyor systems and special applications,
see www.tgw-mechanics.com More articles from TGW Limited: | 
