International machine manufacturer ENGEL has centralised its global spare parts logistics with cargo-partner, at the newly constructed iLogistics Center near Vienna Airport.
ENGEL Austria is an international manufacturer of injection molding machines and parts-handling automation with headquarters in Schwertberg, Austria. Seeking to optimise its worldwide spare parts supply, ENGEL turned to cargo-partner’s newly constructed iLogistics Center. As of 1 June 2018, ENGEL has entrusted international transport and info-logistics provider cargo-partner with the handling of its spare parts logistics.
Due to ENGEL’s rapid business growth over the course of the past year, the storage space at the three production facilities in Austria was no longer sufficient to accommodate the machine manufacturer’s high production volumes.
This neccesiated the movement of parts which had previously been stored at ENGEL’s own facilities were therefore moved to the cargo-partner iLogistics Center. ENGEL customers worldwide will now be supplied with spare parts from this new distribution centre – either directly, or via the intermediary hubs operated by ENGEL in the corresponding subsidiaries and representations.
By transferring its spare parts logistics to a central location in immediate proximity to an important delivery hub, ENGEL enables later pick-up by transport providers as well as later order placement by clients, cargo-partner says.
Shipments arriving from different production facilities can now be consolidated more efficiently, resulting in a more competitive cost structure. The reduction of short-distance transport also offers greater independence from potential service errors and delays. ENGEL intends to use the time gained in this way to provide a higher service level for the benefit of its customers.
ENGEL’s requirements with regard to processes and process areas were assessed over the scope of several planning workshops. The machine manufacturer’s sophisticated procedures require separate areas for goods receipt and acceptance, picking and packing, outgoing goods and dispatch, as well as quality control by ENGEL’s engineers.
Cargo-partner adapted the warehouse layout based on these standards and provides the required technical equipment. A specially assembled team of cargo-partner employees was specifically trained by ENGEL for the required processes. The skeleton crew was also defined in a separate workshop.
Harald Wegerer, vice president Customer Service Division at ENGEL Austria GmbH, says: “The cargo-partner iLogistics Center came at the right time in exactly the right place for us. In addition to the fortunate location near Vienna Airport, the comprehensive technical equipment and fine-tuned processes were decisive factors for our choice. Cargo-partner has fully convinced us with its competence in warehouse logistics and its flexibility in cooperation.”
A fast and efficient exchange of information is ensured by 20 interfaces between cargo-partner’s WMS (warehouse management system) and ENGEL’s ERP (enterprise resource planning) system. Cargo-partner’s IT project management team provides agility in dealing with uncertainty as well as quick adaptability to short-term changes in requirements. The go-live date of 1 June was successfully met, and the relocation of all small parts was completed three weeks before the scheduled deadline.
The cargo-partner iLogistics Center took up operations exactly one year after the ground-breaking on 1 June 2017. On a total area of 12,250 sqm, the modern logistics facility provides 24,500 pallet spaces, as well as a small parts store with 32,000 KLT bins. The award-winning timber construction enables easy temperature and humidity control, low operating costs as well as a considerable reduction of CO₂ emissions. A total of 4,200 cbm of timber was used in this innovative project – this corresponds to 4,200 tonnes of saved CO₂.