A medium-sized company in the metal processing sector was faced with the challenge of adapting its logistics to strong growth. The company was considering outsourcing its logistics and setting up a new logistics center. The current interim manager was tasked with finding and implementing the best solution.
Logistics outsourcing quickly proved to be an uneconomical option
After the current interim manager had collected the necessary data and obtained quotes, it was clear that outsourcing the logistics processes would not be cost-effective. Therefore, on the recommendation of the interim manager, the management decided to set up its own logistics company. The interim manager was appointed as managing director of the company and initiated the necessary steps to set up the company, from personnel organization to selecting and equipping the location and integrating SAP into the holding company's network.
New personnel organization successfully negotiated with the works council
The workforce of the new company was to be largely recruited from within the group of companies. The interim manager coordinated the transfers to the new company, transfers to other divisions and staff departures due to early retirement with the managers involved. He also conducted negotiations with the employee representatives.
In all cases, agreement was reached on socially acceptable measures. For the employees who transferred to the new company, there was a transfer of operations in accordance with Section 613a BGB. Positions that could not be filled by the company's own employees were advertised.
Selecting and equipping the new logistics center
At the same time as the staffing process, the interim manager identified suitable rental properties for the new logistics center. After a multi-stage selection process and extensive discussions with the providers, a property was selected and the scope and costs of the necessary building conversions were determined.
Detailed planning for efficient processes from goods receipt to dispatch handling
After selecting the building, the interim manager took over the detailed planning of all processes from goods receipt to all internal processes to dispatch handling. As some equipment and systems were not available on the market in the required form, he had these technical systems newly developed by suppliers. This included, for example, the development of new picking vehicles with put-to-light displays and a new shipping system with automatic unloading to provide shipping units for CEP service providers.
The interim manager and his management team closely supervised all preparations and regularly communicated progress in steering committee meetings.
New logistics center goes into operation on time and on budget
Nine months after the decision to set up the new company, the new logistics center went into operation. The budget, schedule, effectiveness and running costs were in line with the specifications. The interim manager then pushed ahead with further improvements. For example, he introduced more modern scanner systems, ensured that the graphic displays for the order pickers were optimized and had a "store floor monitor" developed with a visual display of all relevant process data in real time.
Successful start-up is sold by the holding company for a profit
The new company developed very profitably under his management. Thanks to growing profits, the rates charged for logistics services were reduced several times. Ultimately, the company was so successful that the holding company of the group of companies sold the logistics center for a profit.
