The art of customer-oriented logistics in times of crisis

In the fourth part of the series "Supply chains under pressure", Peter Galliker, CEO of Galliker Transport AG, explains how the pandemic, the war in Ukraine, the energy crisis and the shortage of drivers are affecting his company. In the interview, you can find out which strategies and measures the Swiss logistics company is actively supporting its customers with.

 

The German writer Otto Ludwig once said: "Every art includes a craft within itself; the craft of art is what I call the part that can be taught and learned; where the craft stops, that's where the real art begins." In the currently prevailing situation, is creativity required to a greater extent in order to secure your customers' supply chain?

Peter Galliker: "Just mastering the logistics craft is no longer enough. We have to react quickly and flexibly to the unprecedented challenges and develop creative solutions and provide them at short notice so that we can keep our customers' supply chains running as smoothly as possible."

What hurdles do you currently have to overcome?

Peter Galliker: "Due to the effects of the prevailing crisis situations - some. The acute shortage of drivers means that it is becoming increasingly difficult for us to accept new customers. For example, in our branch in Slovakia, we are strongly affected, because our Ukrainian drivers defend their homeland. The high price of fuel and energy, with the consequences that the cost of transportation as well as storage of goods will continue to increase. The longer delivery times also require forward-looking action. This is because it is almost impossible to make reliable statements about the timing of deliveries of ordered materials. We are also feeling the enormous volume variations that have always existed - sometimes more, sometimes less - but which are now much more pronounced than anything we have known before."

How are you responding to the impact of the crises?

Peter Galliker: "We have to look ahead, take the customer's point of view in order to operate successfully. At the moment, for example, we are particularly challenged with the task of providing storage space in our warehouses at short notice so that we can meet the high demand from our customers. However, we are increasingly lacking storage capacity for new customers. To counteract this, we are working flat out to create new warehouse space. In the short term, we are keeping our eyes wide open to rent warehouse space. The important thing is that we react immediately when an opportunity arises."

You need to find answers quickly ...

Peter Galliker: "...absolutely. It is virtually impossible to plan with any certainty at the moment, which is why we are constantly monitoring the situation and also acting at short notice. But due to our own fleet of vehicles, for example, we can absorb the volume variations to a large extent. So far, we have succeeded in meeting the majority of our customers' deadlines, so that there have rarely been any delays. This works mainly thanks to the support, assistance and flexibility of our highly motivated employees, on whom we can always rely even in times of crisis. We also adapt our procurement strategy to the circumstances. For example, we order new trucks earlier than usual because longer delivery times have to be expected. We have also adjusted our procurement strategies for operating supplies, such as engine oil or electricity, accordingly. To counteract the shortage of drivers, we will involve our Logistics Transport Academy even more than before. The aim is to train more lateral entrants as drivers and dispatchers. Another task of the Academy is to develop new ideas and concepts for optimizing process chains in cooperation with highly qualified employees and customers."

A task that certainly has a strong focus on the degree of digitization ...

Peter Galliker: "...indeed. It's true that we already have a high level of digitization at Galliker. But we certainly can't rest on our laurels. In order to continue to be successful in the future, the processes within a supply chain must become even more digital. For example, we need to make digital data exchange even faster and more secure as well as more transparent. With the founding of the Logistics Transport Academy, we have laid the foundation for developing new, creative, digitally controlled processes at a high level and in direct exchange with our customers, which will make our logistics performance and services even better. After all, with all the challenges we have to solve on a daily basis, we must not forget to constantly develop and continue to drive forward comprehensive networking. Likewise, the coordination of supply chains must be significantly improved. This, too, requires a sophisticated communications strategy as well as a functioning digital network ..."

... and maintain the tried and tested ...

Peter Galliker: "... that is our great strength. Long-standing relationships and mutual trust as well as respect for the other party are an important foundation for the success of the Galliker family business. We do not think in quarters, but in generations.  The younger generation in our company also lives this credo. We are completely open with employees, customers and suppliers and communicate honestly and straightforwardly. With the result that customers show understanding when the energy crisis necessitates measures, such as necessary cost increases. New inquiries are also examined and if we are unable to submit an offer ourselves, an alternative solution is sought together with the customer. I share the opinion of Alfred Miller, Managing Director DACHSER Food Logistics: only through partnerships shaped by sustainability we can maintain supply chains."

Thank you very much for this insightful interview.