In 2018 Nelt will invest 15 mil EUR in development of logistics services, as well as in strengthening the regional position. There are 1,400 people who are employed in the logistics sector in17 distribution centres in seven markets. . In Serbia, the company has been present in the field of logistics for 10 years, and now plans to position itself in the neighbouring countries.
Dragana Škrbić, Nelt Group Supply Chain Director , when speaking about future plans, explains that “the unique regional offer of integrated logistics services, through proven operational excellence and deep understanding of customer needs, is the right path for further development of logistics and the basis of the company’s growth strategy and performance in the Balkans market”.
In an interview for eKapija, Dragana Škrbić talks about achieved results, established partnerships, as well as development plans.
eKapija: You have announced regional strengthening of logistics operations. What has been done so far in the area of logistics in Nelt? What are your plans?
– In Nelt we have been dealing with distribution logistics for a long time, as well warehouse management and manipulation, freight forwarding, delivery, organisation of international and national transport. Today in the logistics sector, we employ 1,400 people in seven markets. We have organised operations through 17 distribution centres where we apply quality standards and innovative technologies, and every day we are able to reach 12,000 different delivery locations.
In Serbia, where we have been present in this segment for 10 years. This year we have exceeded our turnover plan by 24% and started cooperation with more than 120 new customers of logistics services. We opened and expanded the first private intermodal terminal in Belgrade. We became a member of the European Food Network (EFN). We also received the status of an Authorized business entity in Serbia, which simplified customs clearance procedures and guaranteed security and safety in the supply chain. We established operations in Montenegro by acquiring 80% of the ownership share in the company Montenomaks Control and Logistics, logistics leader in this market.
We are planning to continue at a similar pace. First of all, through continuous learning and investing in development of our people, understanding the market and its needs and building partnerships with our customers, and then through a strategy of differentiation of services, preserving the quality and efficiency of operations.
eKapija: You are also doing business in BiH. You have your own logistic capacities. What are your plans for this market?
– Our existing infrastructure in Bosnia and Herzegovina consists of 2,000 m2 of office premises and 7,500 m2 of storage space in an ambient, refrigerated and frozen regime. With an investment of 4 million EUR in the construction of a new warehouse, of a cabinet-ambient type, we plan to increase the capacity by 5,000 pallet spaces. The area of the new warehouse will be 4,600m2 with an additional 1,400 m2 of office premises. An extension of 700 m2 for rack storage and VAS services (Value Added Services) is planned, which Nelt has especially developed for its clients. These include services for reworking and adapting for packaging of all consumer goods, foodstuffs, pharmaceuticals and technical products-repackaging, labelling, forming commercial packaging, making promotional and special offer sets.
eKapija: In Montenegro, you have decided to buy a company. In addition to this acquisition, do you plan to make some other investments?
– This year Montenomaks became the 13th company within the Nelt Group. Listening to market demands and following global logistics trends, with the support of professional, responsible staff, have brought Montenomax C & L to the position it occupies today. The investment in the Distribution Logistics Center in Danilovgrad, within the scope of which the Customs Office Danilovgrad functions, has enabled the provision of an integrated service and the takeover of complete care about clients’ goods, which is why we are unique in the Montenegrin market. Before us is the expansion of Montenomax C & L centre in Danilovgrad in the area of warehouse and parking space.
eKapija: How satisfied are you with the results in Macedonia?
– In the Macedonian market, we are at the beginning of establishment of a logistics platform, such as the one on the Serbian market, which enables us to develop an integrated service provision system. Plans for 2018 include expansion of capacities in international transport, standardization and digitization of the process with the purpose of achieving even greater efficiency in operations. An organization that has already made its first successful steps in the organization of international transport has been established, which makes us very satisfied. We are continuing the implementation of the strategy in acquiring new services and using synergy with the existing successful distribution business.
eKapija: You announced new investments in the region. What exactly do you mean?
– By the middle of next year, we will invest 15 mil EUR in development of new services in the markets, construction of more than 20,000 m2 of warehouse and office premises in Belgrade and Sarajevo, and expansion of the vehicle fleet. After completing Pick by Voice technology in our warehouses in the Western Balkans, we continue with implementation of new software solutions in stock and transport planning. In 2018, we are planning further development of service logistics in Macedonia and Bosnia and Herzegovina, where we have already started field operations this year.
eKapija: You have distinguished yourself from the competition thanks to your own intermodal terminal. How satisfied are you with the business operations in this short period of time?
– Opening of the railway logistics terminal provides for safe and economical connection with the Adriatic, Greek and other ports throughout Europe. Cooperation with large shipping companies has been established such as COSCO, CMA CGM and MAERSK, the companies which have recognized the Nelt Intermodal Terminal as the reference hub in Southeast Europe thanks to its excellent location and infrastructure. In July 2015, the Government of the Republic of Serbia adopted a Regulation on stimulating measures aimed at improving combined transport, set to come into force on January 1, 2018. We believe that the country will keep its established course on this topic which is of great importance for development of economic flows.
eKapija: What other important partnerships did you accomplish in logistics?
– Cooperation with the company DACHSER, one of the leading global logistics companies, and the European Food Network, which DACHER is heading, is an important step in the development of Nelt’s logistics operations in the Balkans. With this cooperation, weekly delivery of food products is enabled from all over Europe to Serbia, Macedonia, Montenegro and Bosnia and Herzegovina through our logistics and distribution channels. We have become a part of the European network of groupage road food transport in the 0 to 4ᵒ C regime. The network covers 34 countries in Europe and has about 1.74 million square meters of food storage space at its disposal and about 10.500 cold storage trucks. This partnership is motivated by the ultimate goal of offering a sustainable alternative to the market in relation to existing solutions. The possibility of regular delivery of smaller quantities of goods reduces the costs of the supply chain starting from used capital to warehouse premises.
eKapija: What are the trends in the field of logistics? Where do you see the greatest potential for growth?
– The global trend for the companies that are engaged in production or marketing to focus on their core business, and to leave logistics, or some of its parts, to logistics companies, thereby achieving greater efficiency, better quality and lower operating costs. This trend has been gradually coming to our region, which is, in the segment of logistics services, in its development phase, with its specific challenges.
There is competition in the markets in which Nelt operates. Local LSP companies are present, competing with a broad portfolio of services and relatively low prices, sometimes at the expense of quality as well as global companies that enter the market with their long-term partners. We believe that the unique regional offer of integrated logistics services, through proven operational excellence and a deep understanding of clients’ needs, is the right way for further development of Nelt Logistics and the basis of our growth strategy and presentation in the Balkan market. That is our The Way Of Logistics.