Contract Logistics in Cyprus Cyprus Geographical Location Cyprus fulfils the role of a hub for a number of key trading areas of world significance. Cyprus is a natural transhipment centre for Europe-Far East trade. The various shipping markets situated along the coasts of the Levant, North Adriatic and Black Sea can easily accessed from Cyprus and with minimum diversion from the main arterial route. Equally, Cyprus is a logical hub for other main-line deep sea trades traversing the Mediterranean and for inter-regional maritime traffic. Recently the government of Cyprus has come to an agreement for the building of the new airport. The agreement calls for a completion of the new airport by 2009. Such development will attract more transhipment business and will add an integral part in the countryâ€™s logistics infrastructure. The existing Larnaca airport has connecting flights to all major European destinations and to the Middle East on a daily basis.
Transforming Interesting Ideas into practical operational plans On May 2004 the Wall Street Journal said that Cyprus offers a strategic location, favourable tax environment, educated work force, excellent telecommunications, modern banking and legal infrastructure which make the country the perfect business bridge for the European Union and the Middle East. The accession into the EU has opened numerous windows of new opportunities; however the response from the business world has been merely bleak. You can have the greatest strategies in the world but without the right people developing and owning them you will get good-looking presentations but no real results. Getting the right people in the right jobs was as crucial as developing Eurofreight strategy. The level of commitment by the top management has fuelled an unmatched enthusiasm within the Eurofreight team and it has produced results surpassing the greatest of expectations. Eurofreight Logistics has put into use the strategic advantages of the geographical position of Cyprus by establishing a modern Logistics Hub connecting Europe, Middle East and Northern Africa. One of the first companies to realise the benefits of having a logistics hub in Cyprus is Intervet Middle East, an Akzo Nobel company. The Third Party Logistics agreement between Eurofreight and Intervet Middle East has been into effect since Jan 2005 and during the course of the year Intervet has achieved double digit growth in sales. The particular project can serve as a case study of how a European based company can penetrate the Middle East market by using Cyprus as a Hub. More details on this project and similar Logistics projects Eurofreight is implementing are found on the Case Studies part of this report. General information on Eurofreightâ€™s Multiple Purpose Logistics Centre Eurofreightâ€™s logistics centre is strategically located on the junction of the three major highways connecting all major cities of the island. It is a fully owned warehouse of 3,000sqm, with high capabilities for cross docking services and full scale logistics services. The facility fulfils all the requirements of a modern logistics centre in terms of buildings and equipment. The company considers technology a
key factor to the success of the logistics centre, and it has put tremendous emphasis in investing in technology and the continuous training of personnel. General Details on processes in the Eurofreight warehouse:
Receiving-Unloading: The receiving process is automated with RF scanners sending the data directly to our warehouse database and checking in real time quantities received with quantities expected. Reporting can be achieved in real time thus giving back to our customers all necessary information and reporting cases of non compliance in real time.
Loading-Unloading: Eurofreight’s logistics facility has three electronic ramps which make the loading and unloading process much more efficient and safe. There is also the necessary machinery, various types of Fork lifts and Reach trucks, which enhance the performance of the warehouse for the tasks of loading & unloading. Such kind of infrastructure is ideal for Cross Docking operations.
Delivery-Distribution: Offering total Third party logistics solutions involves the handling of re-exports in some cases, and the delivery to the final customer. Eurofreight has its own fleet of trucks and vans providing an efficient solution in terms of transportation. The proximity of the airport (only 5 minutes away) facilitates the re-export activities.
Storage: Eurofreight has in place a Warehouse Management System which can provide accurate reporting on inventory levels as per customer’s request. Reporting can be in real time or on a schedule as per the requirements of the customer and it can be accessible through a web report. Eurofreight is in position to offer specialized storage such as temperature control areas. For some of the current contracts Eurofreight offers Chill room storage ranging from 2 Celsius up to 8 Celsius, ambient storage of Max 20 Celsius and Areas for the handling of dangerous goods. All the locations are labelled and bar coded for the use of RF scanner technology during Putting and Picking or any other movement in the warehouse.
Order Execution-Picking: “The process is again fully automated and data flows in real time. Our warehouse management system utilizes RF technology thus automating the process and minimizing error margins. Reports can be generated for every process/transaction and can be forwarded to the customer as
requested. Packing & Labelling with all shipping and product information is produced as per the sales order.
Case Studies Intervet Middle East The pharmaceutical industry is dynamic and complex. Companies operating in this market require significant service and responsiveness to remain competitive. Increasing demands and pressure from the competition make it more imperative than ever for suppliers of pharmaceuticals to forge successful, long-term partnerships with a supply chain management provider. Intervet, an Akzo Nobel company, is in the business of veterinary pharmaceuticals. The Goal 他
Be close to their market and follow up on their market developments
Operate in a healthy business environment, with the additional benefits of favourable taxation
Reduce lead times
Bring logistics costs down, by concentrating all logistics activities under one roof; appointing a single logistics provider
Maintain the exceptional quality and service level of Intervet
The solution by Eurofreight ¾
An Intervet dedicated warehouse facility in Cyprus, operational since Jan 05
Solid logistics infrastructure; know-how, building, technology compatible
Continuous training, establishing familiarity with Akzo Nobel practices and procedures
Total logistics solutions under one roof; from receiving at port/airport to order execution and re-export
The results ¾
Reduced lead times. Goods can be shipped within 24hrs whereas the lead time for order completion was between 5 to 8 weeks. A good example is an order for Amman-Jordan. Customer may place his order by 10:00 hrs and order can be picked, packed and shipped the same day arriving at Amman at 23:15hrs
Significant service and improvement improvements
Adding value to their product
Increased customer satisfaction
The feedback from Intervet is that business has grown in double digits for the current year and it is anticipated this growth rate will last for the remaining of the year. Already talks for an expansion in the Hub facility are under way and expected to be finalised in December of this year.
Miele Co (Hellas) Following the trend of other multinationals to eliminate the middle person/agent and deal directly with their retailers, Miele decided to establish a 3PL partnership in Cyprus. The Miele product, one of the top brands in the household appliances market, had been overshadowed by huge logistics operations problems resulting in sales loses and furthermore customer disloyalty. The Goal 他 Research and assign a logistics partner for all Miele operations in Cyprus 他 A Logistics provider with tested capabilities for a diverse transportation solution 他 A logistics partner that can offer warehouse management solutions 他 A logistics partner that can handle all Miele deliveries to Miele retailers throughout Cyprus
The solution by Eurofreight Eurofreight emerged as the ideal 3PL partner for Miele and it has helped Miele in a very short time to set up their Cyprus operations. ¾ Eurofreight offers total transportation solutions ¾ It undertakes all activities from Miele warehouses in Greece to their assigned retailers in Cyprus ¾ Eurofreight, working together with Miele, has set up standardised delivery routes to facilitate the delivery of the Miele products ¾ Eurofreight helped Miele in it’s effort to create awareness among Miele retailers for fixed delivery routes and timely order processing The results ¾ Miele product has been upgraded in Cyprus ¾ Agreements with major electrical retail stores have been secured for Miele ¾ Excellent service and high responsiveness ¾ Decrease of logistics costs ¾ Eliminate unnecessary administrative work by establishing an efficient order processing system ¾ A revamped Miele brand Adidas Adidas Cyprus is currently launching a strong campaign for the promotion of the Adidas brand and this is creating the need for an efficient logistics operation. Traditionally logistics operations in Cyprus were outsourced; however the level of service was a liability in the course of any future expansion. The Goal ¾ Alleviate all the logistics related problems and ensure a smooth execution of our supply chain ¾ Assign a logistics provider that can streamline all operations; from receiving to order execution and customers invoice printing ¾ High flexibility for delivery ¾ Ability to manage product returns ¾ Decrease logistics costs
¾ Free up time and resources to invest in the ongoing Adidas promotional campaign The solution by Eurofreight ¾ A tailor made solution in terms of Warehouse Management System ¾ Same day execution for their pickings ¾ Efficient handling of the cross docking aspect of the business ¾ Delivery response within 48 hours ¾ Concentration of all Adidas inventory in the Eurofreight warehouse eliminating stock shortages ¾ Handling of all product returns The results ¾ Response rate to customers has significantly improved ¾ Adidas has total control and a clear picture of all inventory levels ¾ Product returns are utilised for local market replenishments or re-exports ¾ Cost efficiencies ¾ The launch of a massive marketing campaign has unfolded without any interruptions in the supply chain ¾ Strengthening of the Adidas Brand and the Adidas market share in Cyprus