In Conversation with Tino Bierbamer, Operations & Services Delivery Director at LogiPoint
LogiPoint’s Success
The main drivers in today’s supply chain environment, amongst others, are Cost Effectiveness, Transit Times / Close to Market, and Cash Flow.
With these main drivers, the service offerings of LogiPoint are tailor-made to address these main drivers and offer a significant improvement to customers’ existing supply chains.
The Bonded Zone facility allows customers to “import” shipments without paying duties & taxes as well as VAT just yet. That only will come into place when these consignments are delivered into the Kingdom. That addresses the “close-to-market” requirement as well as facilitates the cash-flow improvement tremendously.
In addition to these factors, the service landscape allows customers to choose between the “industrial realtor” options, allowing them to operate themselves facilities within the bonded zone, as the “operator model,” allowing the customer to choose from various integrated solutions covering all their needs.
To “round off” these service landscapes, LogiPoint offers additional services such as Cross Border shipments (within the GCC countries), Value Added Services and Sea / Air and Air / Sea. The latter allows combining any mode of transportation for both in-& outbound flows of cargo. As for Value Added Services, LogiPoint offers labeling, re-packing, printing, and last-mile distribution throughout the Kingdom.
The rise of LogiPoint over the past couple of years is a combination of all the above indicated mentioned factors and services offered.
Operating during the COVID-19 pandemic
LogiPoint’s main and first objective during the pandemic was to keep everybody as safe as possible. We have re-designed our http://www.businesstoday.me/wp-content/uploads/2022/12/sample10.jpgistrative and operational office(s). We have re-designed and re-structured staff accommodation. We have implemented special teams (bubble approach), including transportation, shifts, and accommodation. In summary, we are trying to limit the exposure of individuals as much as possible. At the same time, however, we also needed to make sure that we maintained our service levels and standards and make sure that we adhered to agreed KPI’s with customers. Where possible, certain functions have been moved to “work-from-home” or different locations to reduce interaction and exposure further.
LogiPoint’s operation model was segregated into the following key areas:
– Extend/enhance service offerings to existing customers
– Constantly embark on new service offerings driven by customers and market requirements, ultimately driven by supply chain requisites
– Engage in potential customer discussions developing integrated service solutions, basically offering tailor-made solutions
Based on discussions with the existing customer and the portfolio of potential and interested customers, the outlook for 2020 was very positive. Amongst others, to increase our customer centricity and enhance our service offerings, LogiPoint had an ambitious IT project, implementing a single ERP platform throughout the organization.
Goals and Objectives during COVID-19
LogiPoint’s goals and objectives haven’t changed per say; it’s more of an adjustment of the present service landscape vs. changed requirements in the supply chain from our customers. Volumes in specific verticals have certainly dropped tremendously (Automotive for example), whereby other verticals had significant increases (Health & Pharma products, hygienic products, e-commerce business etc.).
Specific service offerings, driven by the pandemic, had to be put on hold due to imposed restrictions (Cross Border, Transit, Sea/Air & Air/Sea). On the other hand, due to lower turn-around times and longer sales cycles, the need for warehousing space has increased tremendously. LogiPoint came out stronger because a combination of the meeting changed customer requirements, instantly allowing them to conduct their business based on a drastic change in market conditions. Furthermore, even during lock-down, LogiPoint operated with “special permits,” during lock-downs allowing to execute shipments the same way as pre-covid, resulting in tremendous customer satisfaction.
Looking Beyond 2020
The main drivers for the years to come will be supply chain driven focus areas such as “close-to-market” and cash-flow, deferred payments. Furthermore, the trend which started already related to verticals and commodities (increase/decrease) will continue for the years to come. Some of the verticals that took a big hit triggered by COVID 19 will take years to recover (Automotive, Textiles, etc.). Other verticals as Pharma / e-commercial will rise even higher vs. predictions and forecasts established pre-COVID. Of course, certain potential and possible restrictions are driven by the pandemic that might change the picture even more. But beyond all, LogiPoint, with its customer centricity and “close-to-market” approach, will be ready for any potential change in the market. We will continue to offer integrated and flexible end-to-end supply chain solutions to our customers, contributing to Vision 2030 of making the Kingdom a Logistics Hub for decades and generations to come.
