Logistics Case:Globalization Expansion Strategy of BLG International Logistics

BLG International Logistics is a global logistics company that grew out of the BLG Bremen lagerhaus-gesellschaft, founded in 1877. This modern logistics provider networks the traditional business of an experienced terminal operator with specialized logistics competence. A large number of single and highly specialized companies and joint ventures work closely together under the conditions of an integrated company.

BLG International Logistics uses its own resources to develop competitive systems services. By doing so, it is committed to qualitization, fixed flexibility and enhanced employee motivation. As a reliable designer and main implementer in the logistics chain of activities, BLG International Logistics focuses on the development of a service network.

In terms of human resources, the service package of BLG International Logistics relies on personnel support. Personnel responsible for implementing complex logistics systems, team orientation and reliable service based on the smallest details are essential for success. For this reason, the company attaches great importance to continuous staff training and extensive mentoring. In this way, on a permanent basis, experienced and motivated employees are able to implement processes that contain centralized value-added activities, while long-term optimization and goals are achieved.

In terms of IT, a single logistics solution for each customer cannot be designed with standard software. Therefore, BLG International Logistics with its highly developed IT and software capabilities supports and enhances its core competencies.

Through its various services, BLG International Logistics pursues a strategy of global expansion. It responds to complex tasks and responsibilities with its competence, quality, resilience and incentives, and develops collaborations and expands the vertical scope of its value-enhancing activities by offering a wide range of value-added services to its customers.

II. Service packages

Service package elements: supply chain networks, development and implementation of IT integration solutions, supply of components to production and assembly sites worldwide, operation of distribution centers within Europe, implementation and management of complex distribution strategies and supply concepts, value-added services, packaging improvements, process management in multinational companies, establishment and application of special technical equipment, such as hardening and hardening of brittle parts of the automotive industry, and the use of special equipment for the automotive industry. hardening and corrosion protection of brittle parts of the industry and freight forwarding services.

III. Core Competencies

The core competencies of BLG International Logistics lie in the implementation of its automotive logistics, contract logistics (electronics, consumer and industrial products) and sophisticated turnke projects.

1. Automotive Logistics

The automotive industry is committed to worldwide sourcing, product strategy and distribution. Manufacturers are massively downsizing vertical production and single product ranges to focus on specific model lines. Suppliers are also increasingly focusing on improving their core competencies. Both parties are closely aligned with BLG International Logistics.

BLG integrates manufacturers and suppliers of component products into its system services, and they have absolute confidence in the availability of assembly lines in Europe and abroad. At the same time, a high degree of elasticity is indispensable for continuous market-oriented fluctuations in the production chart. However, the system specialized logisticians react to changes with resilience, forward planning and a high degree of competence.

Large automakers are increasingly focusing their activities on core businesses such as design, assembly, and sales. Suppliers are also concentrating their services in specific regions. As a result, BLG International Logistics is facing an increasing demand as a logistics provider, tasked with the smooth and reliable coordination of logistics.

A number of technical terms describe the complex transportation strategies and supply concepts in automotive logistics. Whether as SKD, CKD, PBP, JIT - specialized logistics must be able to manage the full set of building blocks if it wants to provide competitive system services to the automotive industry.BLG's services encompass the entire process of automotive logistics. In addition, it is able to establish multi-year partnerships with major manufacturers and suppliers.

This encompasses the transportation of spare parts and the packaging of valuable goods, as well as packaging improvements and zero inventory management. BLG is active worldwide with a full range of services: whether in Brazil, South Africa, Malaysia, Thailand, Egypt, or India, its sourcing and transportation services know no boundaries.

Production-related services are an important part of the service package of a modern logistics provider. Upfront assembly and full integration are just as much a part of BLG's competitiveness as the value-added services that complete the work and product.

The logistics centers and supply centers that BLG has around the world are the focal points for its system services. Many manufacturers are increasingly outsourcing activities in their production processes to specialized logistics providers, so-called value-added product services. Examples include the corrosion protection of brittle parts for assembling loose body parts and the initial assembly of system components. Currently, BLG is increasingly becoming an "extension bench" for the automotive industry.

BLG's extended vertical range of services is a flexible response to manufacturers' downsizing in the vertical range of production. In addition, in the framework of the increasing outsourcing, more and more packaging orders are contracted to the right system service provider, BLG International Logistics, which has been able to establish itself as one of the few providers in the world through specific skills in the specially demanded segments of the logistics sector.

2. Contract logistics

International sourcing and distribution requires a good total logistics strategy. Contract logistics involves services to manufacturers of consumer goods and e-consumption, the furniture industry, the beverage industry, industrial equipment and many other sectors. Regardless of how different the products are, they all have one **** in common: a single solution that meets the needs and suitability of each customer.

At first glance, contract logistics appears to be an area that can be clearly defined and managed. However, it encompasses not only single services that can be separated, but also complex service packages such as installation and implementation of closed logistics systems for the single needs of the respective customers.

BLG International Logistics assumes responsibility for the entire chain, such as overall purchasing or distribution logistics, with logistics centers and modern information and communication technologies. BLG's services emphasize close cooperation with the customer, process optimization of the agent's logistics, the design of customer-specific inventory capacity, and the appropriate organization of transportation to wholesalers and retailers, as well as logistics of back-up parts right up to the final customer. At the same time, these constitute persistent challenges for BLG.

Taking e-commerce as an example, BLG supplies the entire European market with office equipment, for example, centrally through its Bremen logistics center, and trades in fax machines and photocopiers with manufacturers operating in the office electronics industry worldwide. Technical configurations based on single customer orders, country-specific accessories and operating instructions are the basic equipment. Within a few hours, the equipment will be on its way to the customer.

The range of products that can be handled by a competent contract logistics professional is almost endless. Whether electric or electronic, single components or combinations, the distribution of different types of products with the help of logistics centers is the core business of BLG International Logistics.

In logistics, not all services can be centralized in one place. Therefore, BLG serves the needs of its respective customers. Currently, its network of logistics centers and proprietary equipment serves renowned principals in industry and commerce at more than 20 locations in Germany and abroad.

Take the furniture industry as an example. For a globally operating furniture giant, BLG provides a distribution warehouse in Erfurt with a capacity of 200,000 pallets.BLG's operations focus on warehouse logistics and order picking. Additional services include quality management and the planning and organization of transport workflows.

Take the example of consumer goods. A manufacturer of coffee and combination products offers its outlets and independent retailers an entire network via Bremen. Goods that are categorized according to demand and season are only available for a limited period of time and are constantly replaced by new options for products. Consequently, large quantities of goods, which are not only controlled but also processed frequently, make only a brief stop at the logistics center, where they are received by specialized warehouses and shipped on pallets according to the product order and then delivered.

Take the example of beverage logistics again. In the logistics center in New York, BLG provides bottling plant supply, storage, inventory management and order picking services for breweries. Zero inventory management, transportation management and commodity repackaging are beyond the scope of services.

3, Turnkey projects

Turnkey projects in logistics require specialized skills and long-term confidence. This begins with neutral consultation representing the interests of a single customer, and extends from the conceptual development of the site to the investment in new equipment, IT and human resources, to the way all systems are implemented, and ultimately to the initial start-up.

Take consumer goods, for example, where BLG is chasing a consistent and successful growth strategy across the portfolio. Increasing volumes of goods and changing product selection activities must be supported by fixed, fast and absolutely reliable logistics. Increasing demand creates the concept of centralization in one place.

BLG International Logistics was able to secure this project for Bremen. It invested around 75 million euros to build the most modern warehouse in Europe, centralizing the entire portfolio of logistics for customers who operate primarily internationally.

BLG has invested in close project cooperation with the customer, so that from conception to the actual construction phase and all modes of operation ensure a flexible adjustment to market requirements. The new centralized storage system controlled by intelligence and the handling of system figures in logistics tasks are prime examples of large-scale Turnkey projects.

In addition to innovative technology, unique resources and competence, the implementation of this project also required the centralized networking of professional logisticians with the customer and an investment in high capacity and convenience.