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Quality as a "Unique Selling Point"

SHANGHAI, Nov. 25, 2013, /PRNewswire/ -- In its search for the most efficient in-house logistics for its Shanghai distribution centre, Schneider Electric selected Jungheinrich as its partner. Apart from quality, the Hamburg-based company was chosen on the basis of its efficient trucks and service-minded approach.

Jungheinrich rental truck ETV 214 running in Schneider Shanghai warehouse
Jungheinrich rental truck ETV 214 running in Schneider Shanghai warehouse

As a casual glance at a map will testify, distributing goods throughout the "Middle Kingdom" is no easy task. For this reason Schneider Electric, a global energy management specialist, has established a corresponding logistics network in China over the years. In 1999 it set up its first distribution centre in Beijing, and in 2014 the eighth centre of its type is scheduled to go up in the central Chinese city of Xi’an. By that time over 400 people will be working to ensure that Schneider Electric products are available throughout the country – transported safely and speedily from Urumchi in the west to Shanghai in the east.

While Schneider Electric’s various distribution centres – be they in Guangzhou, Wuhan or Chengdu – are responsible for their corresponding regions, the Shanghai distribution centre has an additional function: "We are also responsible for imports," explains Lei Leo Yang, Head of Logistics at the Shanghai distribution centre. "These goods, which according to customs regulations can only be stored at this single authorized location, are delivered from Shanghai to all other parts of the country." The Shanghai centre is also responsible for regional distribution of goods to eastern China for products delivered by domestic suppliers.

The Shanghai distribution centre was opened in 2000 – measuring a total of 12,000 square metres of storage space back then, while today storage space measures more than 22,000 sqm. Around 6,800 different products are stored here on some 25,000 pallet slots. Currently just under 160 people are employed at the Shanghai location, achieving sales of approx. EUR 600 million in 2012.

To ensure the smooth functioning of logistics at the Shanghai distribution centre, Schneider Electric selected Jungheinrich as its partner. Jungheinrich, whose head office in China is also located in Shanghai, offered not just efficiency, but also quality – not just in terms of its trucks, but also in terms of its service. "Jungheinrich’s reaction times are excellent," reports Lei Leo Yang. "So far they have never failed to keep their ‘4-hour promise’, which is definitely praiseworthy!"

A look inside the Schneider Electric warehouse makes clear just how crucial it is to have high-quality, reliable trucks. The 14 docking stations there are bustling with activity. Jungheinrich EJC 110 electric high-platform trucks zoom back and forth between the lorries being unloaded and the incoming goods area. Every now and then a hand pallet truck comes into the picture. "We are currently in the process of replacing all of these with electric high-platform trucks," says Yang, adding that efficiency alone was a key motivating factor.

The incoming goods are processed with the aid of computers. The barcodes on the goods are scanned and the resulting information fed into an in-house warehouse management system, which assigns the optimum storage slot for each item. Reach trucks then come to pick up the readied goods and transport them to one of the 60-meter long rack aisles, with racks up to 9 meters tall.

Quality also plays a role in storing and order picking the goods at the Shanghai distribution centre. Twenty Jungheinrich ETV 214 reach trucks guarantee not only smooth operations in the warehouse, but also efficient throughput. This series was introduced in 2011 at CeMAT in Hanover, Germany, the world’s leading fair for intralogistics. One of the key features of this generation of trucks is a roughly 10 percent higher throughput rate. "This is essentially the result of faster lifting and lowering speeds as well as substantially improved drive acceleration for this stacker," comments Alexander Oezbahadir, Managing Director of Jungheinrich Lift Truck (Shanghai) Co. Ltd. "Despite the higher throughput rate, we were still able to reduce energy consumption by a further 10 percent compared with the previous model, which was already extremely eco-friendly."

Safety First

A large percentage of Jungheinrich reach trucks at the Shanghai distribution centre are equipped with a special camera system which allows the operator to see the goods at great heights – the maximum racking bay height for this truck generation is 10.5 metres – and to accurately and above all safely deposit and pick the goods. "Even if environmental aspects run like a ‘green thread’ through our company, the issue of safety is naturally top priority at Schneider Electric!" reports Lei Leo Yang.

All Jungheinrich trucks employed at the Shanghai distribution centre are rental trucks. "Apart from the financial flexibility, there are a number of other arguments in favour of renting forklifts," states Mikinari Oki, Head of Rental and Used Equipment at Jungheinrich in China. As this manager explains it, the rental rate already includes factors like interest, depreciation, insurance premiums and servicing costs. And as the majority of trucks in the Jungheinrich rental fleet are less than a year old, the client always has access to the latest engineering advances. According to Oki: "Renting the trucks affords Schneider Electric complete planning security in terms of the costs and the individually definable contract lengths." By avoiding his own capital outlays, the client can put substantially more resources into other in-house investments, Oki reports.

100% Availability of Stacker Fleet

Schneider Electric has also signed a full-service contract with Jungheinrich. "This way the client can concentrate entirely on his core business," explains Alexander Oezbahadir, as the entire responsibility for stacker fleet availability now rests with Jungheinrich, he says. "Our after-sales service assumes any cost risk and the entire maintenance planning." A fixed monthly overall rate ensures the complete availability of the stacker fleet – including maintenance, any necessary repairs using original spare parts, safety inspections and much more. "If desired by the client, a full-service rate can even include a personal service engineer based permanently on-site."

While Schneider Electric did not opt for that service, it did have a special request: To ensure the safe and clean charging of the truck batteries, the client asked Jungheinrich to set up an external charging station. The station is equipped with two Jungheinrich SLT 100 battery charging devices designed for standard lead acid batteries. "These battery chargers allow the client to save more than eight percent on energy costs compared with conventional charging devices," reports Oezbahadir. He explains that this was based on the employment of pulse charging technology, which uses increased current levels in the recharging phase to facilitate the thorough mixing of battery acid. "The advantage of this is faster charging and reduced maintenance as a result of lower water consumption," he explains.

In the words of Oezbahadir: "We were delighted to fulfil this special request from our client Schneider Electric." The result: a battery charging station, located at the periphery of the Shanghai distribution centre – one of the most advanced in the entire region. "Maybe even in all of China!" adds Lei Leo Yang, with a grin.

Jungheinrich ranks among the world’s leading companies in the material handling equipment, warehousing and material flow engineering sectors. The company is an intralogistics service and solution provider with manufacturing operations, which offers its customers a comprehensive range of forklift trucks, shelving systems, services and advice. Jungheinrich shares are traded on all German stock exchanges.

Source: Jungheinrich Lift Truck (Shanghai) Co., Ltd.
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