Automation is the key to optimizing logistics for JCL

JCL Logistics develops cost-effective solutions to help customers achieve their business goals and drive value growth through investment in new technology. The company is currently showcasing its first warehouse with automated equipment for enhanced operational efficiency – thanks to a tailored finance solution from DLL.

Who is JCL Logistics?

JCL Logistics is based in Baar, Switzerland, and has offices at 40 locations in seven countries as well as a global partner network of suppliers. The company provides tailored supply chain solutions for customers in retail, automotive, health and pharmaceutical, chemical, industrial, FMCG (fast moving consumer goods), and beverage industries.

Since its inception in 1938, the company has been committed to developing innovative products and services to meet changing market dynamics. This requires investments in the latest supply chain technologies to satisfy customer requirements and help them achieve their growth objectives.

JCL Logistics' General Manager, Thomas Cranen and Finance Manager, Mayk Soeter talk about the latest investment project, financed by DLL.

Realizing growth in a challenging market

JCL Logistics required a financial solution for the installation of an Elettric80 full-flex automated warehouse system in a newly expanded warehouse facility. Including an auto-loading system for trucks, the new warehouse would be responsible for the handling and distribution of goods for a leading global beverage company. This expanded, automated warehouse was key to satisfying their customer’s growth plans and guaranteeing supply at peak periods.

“Our client indicated they want to grow by five or six percent year-on-year,” said Thomas Cranen. “We therefore recognised the need to grow with them and expand our warehouse capacity to handle the expected volume increase and maintain supply.”

Large-scale expansion was necessary to enable JCL to supply the type of volumes required at peak times, such as during the summer months and for large sporting events. The only way to effectively facilitate increased demand was to expand warehouse capacity and automate process operations. An additional benefit to this was that robot technology would solve the problem of staff shortages, an increasing issue in logistics operations.

“We need robots to work when we can’t find the staff,” continues Cranen. “It is hard to find skilled operators in a competitive market, who are prepared to work at peak times and during unsociable hours – like overnight, for example. The solution is to use robots. The aim will be to use robots to carry out “housekeeping” during the night, when they can move pallets around and optimize warehouse space without humans present.”

This project represented a huge financial commitment for JCL, at an estimated cost of 11-12 million Euros, and there was no room for error. JCL turned to DLL for support to make informed investment decisions and optimize their operation.

Tailored financial solution for JCL

JCL Logistics was impressed by the positive attitude and personal service from DLL Intralogistics Sales Manager, Guido Guiking, and their mutually aligned thought processes.

Furthermore, representatives from DLL’s Credit and Asset Management teams visited the site in The Netherlands to gain a comprehensive understanding of the requirements of the customer, showing a genuine interest in JCL’s business needs.

“The co-operation from the beginning was very positive and DLL was thinking along the same lines as us,” commented Mayk Soeter. “They were keen to fully understand our business, and how they could add value, by providing the best financial solution possible. The relationship is a real partnership, and we really appreciate that.”

It was important for JCL to secure the right financial structure for its needs and to obtain a long-term operational lease. DLL offered a favourable financial solution and played a key role in ensuring the lease terms accommodated JCL’s contractual obligations with the customer. Furthermore, DLL’s existing relationship with the automated systems supplier, Elettric80, enabled a better understanding of the assets in accordance with JCL’s needs.

Improved operational efficiency

With the financial package secure, JCL will be expanding their operations to a neighbouring warehouse once the new equipment has been installed. The extra site represents a total capacity increase from 25,000 to 80,000 square meters.

“The biggest advantage with this additional capacity is that, despite current operational challenges, such as labour shortages, we can still deliver the required volume and load the trailers in time for delivery to the customer,” said Cranen. “Not only this, but we are also able to return empty goods back to the customer factory again so that production doesn’t stop.”

After an initial implementation phase, the team are expecting to see cost-savings and increased operational efficiency in the long-term.

The project is a showcase for the technology and its future application in industrial logistics and JCL has already hinted at further collaboration with DLL and Elettric80 on future projects.

Soeter said, “There are many considerations when using human labour in certain processes. The manufacture of heavier products, such as electric bikes, can result in a human cost to health, for example. With the experience gained on this project, we’ll be able to inform future customers about how to convert to robots. This automated system may also have potential for pharma logistics (i.e. when transporting pharmaceutical products).”

DLL’s Guido Guiking agrees there are exciting opportunities for future collaboration on automated systems. “We are very proud of this achievement and are excited to continue delivering exceptional value to our customers with unique solutions in the intralogistics market.”

Learn more about DLL’s intralogistics finance solutions and contact us to find out how DLL can help your company and support your growth strategy.