Electronics – Distribution logistics

Through its subsidiary LGI, Elanders has further reinforced its position in the customer segment Electronics with a strong and internationally growing customer.

Elanders handles the distribution logistics of the products from a major brand within consumer electronics. The products are primarily shipped to customers in Eastern and Western Europe. Elanders took over distribution logistics from a previous supplier and with it their 130 employees. The contract is for five years with a possible three-year extension.

Based in a warehouse in Erfurt in eastern Germany Elanders manages a product range that covers more than 4,000 articles. This includes everything from small electronic items like headphones and camera lenses to unwieldy products like TVs, stereo systems, air con­ditioners and heat pumps for the home and the hotel trade.

Distributing both small and bulky items in the same logistic system is a challenge since large products have to be handled by trucks while small articles are picked manually. There are considerable fluctuations in volumes from one day to the next and sometimes from one hour to another. Big variations require processes with a high level of flexibility to maintain an even and reliable production impervious to daily volumes.

When Elanders took over, the warehouse space was reduced from 60,000 square meters to 50,000 square meters without affecting capacity. Quality and processes have been improved, new technology has been implemented and innovations are already showing good results.

Elanders’ office in Hamburg is responsible for the customer’s transportation flows in Germany, Austria and Switzerland where twelve employees work solely with the customer. This office also handles customs import and export for the company in Europe. Being situated in Hamburg is an advantage since many of the products come via containerships from Asia.

In addition to warehousing and distribution Elanders also bundles, labels, handles returns and checks the quality of new and returned products for the customer.

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