E/D/E Packaging machine
The E/D/E packaging machine improves the performance of our logistics, measures the necessary package sizes and thus saves packaging material, increases delivery reliability and prevents transport damage. An important contribution to the satisfaction of the end customers.
Logistics: High and reliable availability of goods
One of E/D/E’s core tasks is to supply our members and their end customers quickly and reliably. Thanks to our efficient logistics services, we ensure a high level of product availability and a seamless shipping process for the industrial B2B sector.
Nevertheless, the limited availability of goods worldwide and the supply bottlenecks in 2022 continued to concern us. In addition to the extended delivery times, the prices for raw materials and packaging materials rose significantly. In addition, we recorded significant increases in freight rates and transport routes. As suppliers were increasingly forced to make partial shipments, deliveries arrived in the incoming goods areas with greater frequency. We expect disruptions in material supply to continue throughout 2023. The ongoing trouble spots and possible energy shortages continue to dampen the outlook further. However, the availability of cargo space in sea and road transport is expected to improve in the course of 2023.
Another key challenge in 2022 was the persistent shortage of skilled workers. It is true that we were able to deploy our staff more flexibly again after the relevant Coronavirus measures were lifted. However, eLCemployees still had to master the challenge of processing the high volume of packages with the usual speed and quality, despite limited resources. This led to extra workloads and overtime. It is now important to create sustainable solutions and attractive offers, in order to find qualified young people. However, social policy innovations such as “Bürgergeld” (citizen’s income) from January 2023 could contribute to a further aggravation of the situation.
Despite all prevailing circumstances, the eLC provides significant procedural and cost relief for E/D/E members and remains a reliable partner. The eLC’s warehouse turnover registered a new record of around EUR 280 million in 2022. At its peak, more than 10,000 parcels were sent per day. The number of parcels in 2022 was slightly below the previous year’s figure, but above the “pre-Coronavirus level”. At peak times, up to 90 percent of shipped packages were shipped directly to end customers, which is unique within the industrial B2B sector. This includes parcels sent to private households (B2C). We anticipate that the number of packages to be shipped on behalf of our members will remain stable in 2023.
Sustainable management and the idea of a future worth living are essential cornerstones of our entrepreneurial activities. Our packaging machine, for example, optimally measures the required package sizes. With more than 715,000 packages, we were thus able to completely dispense with filling material in 2022 and significantly reduce the carton volume. This facilitates handling and reduces disposal costs, as well as the number of transports required. In addition,-CO2 emissions were reduced. We have taken another important step towards sustainable process design together with our partner UPS. Since 1st July 2022, we have been shipping almost two million parcels per year with UPS in a CO2-neutral way. Every year, we offset around 2,800 tonnes of CO2 with the help of the UPS compensation programme, which is certified by Natural Capital Partners.
To increase warehouse stocks of critical items and to build up safety stocks will once again be among the key measures taken by E/D/E. The warehouse in the area of building fittings is currently being expanded. Door fittings, electric door openers and sliding door fittings from three new suppliers were included at the end of 2022. This was followed by the full range of another supplier in January 2023. In total, the number of items in these areas alone increased by more than 850, which can be ordered in the eLC with the usual simple processing, as well as transparent prices and additional costs. The building services warehouse, eLC II, will undergo strategic expansion in 2022. Due to the shift in demand from the sanitary to the heating sector, we are adjusting our storage capacities to market conditions. Besides this, we introduced new shipping software to provide a means of integrating new carriers quickly and flexibly. One other key step towards ensuring planning certainty for our members will be our new, standardised “Track & Trace” platform.