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The Expense of Cutting Corners on Logistics

“You get what you pay for – this saying might not only be applicable within logistics but equally relevant in other settings as well. Using price as your primary guiding principle might reduce your costs in the short term. Nevertheless, the actual cost will somehow emerge within your logistics setup sooner or later. In the long run, it can be expensive to cut corners in logistics.”

 

These words are expressed by Anders Rengius, Head of Nordics Logistics at Carl Zeiss, in relation to his perception of logistics as a critical business area and the underlying consideration on the logistics partnership with Link Logistics.

 

Carl Zeiss is a renowned German manufacturer and pioneer of scientific optics and technological solutions that shape the future. This is realized through the development, production, and distribution of highly innovative solutions for industrial metrology and quality assurance, microscopy solutions for the life sciences, as well as medical technology.

The future of logistics is shaped by agility

Anders has held the role as Logistics Manager for more than 20 years. Here, he has learned a thing or two about logistics.

 

“Standardized solutions might surely be beneficial and correspond to the needs within certain industries and businesses. However, the business understanding among our suppliers is key to shape a solution that suits our needs and operational patterns. Considering the complexity of our product portfolio at Carl Zeiss, it is crucial for our logistics partner to successfully tailor a frictionless solution. We demand both simple economic transports and more complex and comprehensive freight solutions. Therefore, our courier must handle and provide both simple and complex solutions in one place.”

With lack of understanding, comes lack of sufficiency

 

With a logistic bag filled with valuable experience, Anders shares his perspective on specific criteria that might be essential to consider in a logistics context.

 

Anders explains: ‘It is instrumental to establish a partnership with a supplier that continuously demonstrates the ability to understand our business, understands the brand, and, probably most importantly, understands our needs. This is expressed through the logistics supplier’s ability to practice a high level of communication and provide information that might be critical for the experience of our customers at Carl Zeiss. Mistakes are inevitable and will arise, but the essential element is how we respond to these mistakes. With early heads up from Link Logistics, we may not always be able to prevent the issues; however, it enables us to take actions and pass on the information to the affected customer immediately. Reliability is not solely expressed through a minimum of mistakes; This is equally expressed through the returning early heads up, allowing us to respond appropriately. This is also considered added value for us.”

At the end of the day reliability remains top of the list

Thanks to the comprehensive experience Anders has acquired over the years in Logistics, he is certainly well-equipped with valuable advice. We seized the opportunity and asked Anders what advice he would give his younger self if he could go back 20 years.

“Find a logistics partner that aligns with your business areas and enables you to meet the demands of your customers. It is as simple as that. If you must prioritize factors such as speed, service, cost and reliability, reliability is pivotal, and service is undeniably an instrumental aspect. In the long run, it might be expensive to prioritize cheap options – this saying certainly applies within logistics, based on my experience. Added value is worth paying a little extra for. An insufficient and unreliable logistics partner can quickly consume a significant amount of company resources, as the issue must be addressed, and stakeholders need to be informed to either maintain credibility or restore what has been lost. Reliability in logistics allows you to focus on the core aspects of your business.”

What about technology?

In a world marked by disruption and development, especially in the realm of technology, demands and expectations among customers are changing. Technology enables new possibilities, and operations evolve accordingly. With that in mind, it was obvious to ask Anders how technology plays a role in the industry of logistics.

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“At Carl Zeiss, we require software from our logistic suppliers. This helps us with our standard freight, making it hassle-free. I often receive 20 inquiries a day regarding status reports on various shipments. Well developed software with a high level of precision in terms of tracking and tracing saves me plenty of time when responding to these inquiries.”

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Play your strengths and leave the logistics to us.

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