Schenker is set to soar in ireland

Schenker Stinnes Logistics is one of the world’s leading integrated logistics providers employing some 38,000 people globally. Director Paul Hyland gave Irish Trucker an overview of its Irish operations.

Schenker Stinnes Logistics was represented in the Irish market by its own office and leading freight forwarding company Intercontinental Cargo until 2001, when the multi-national bought a 75 per cent stake in the family-owned Irish company.

At the turn of the year Schenker completed the acquisition by buying out the remaining 25 per cent, heralding its arrival as a fully-fledged subsidiary of the worldwide, integrated logistics provider.

On acquiring a 75 per cent stake in Intercontinental Cargo four years ago, the Irish management team at Schenker was faced with the challenge of integrating a small, family-owned, successful freight forwarder into Schenker’s worldwide network. “That took some time and took a lot of work and effort to get the company performing to Schenker standards. Consequently, we weren’t as aggressive in the marketplace as we should have been during that time,” he affirmed.

Director Paul Hyland

“In Ireland Schenker as an organisation is under represented given the global and European scale of the organisation. One of the tasks I have is to raise the company profile and grow the business in Ireland,” he added.
Now with its “systems refined” the company is actively seeking to grow its Irish business. “Our systems and reporting mechanisms are now the same as any Schenker company around the world. We are now in a position, where we can actively sell the business in Ireland with complete confidence,” he continued.

Schenker offers road freight services to and from the rest of Europe, air and sea freight services as well as logistics services. “We would also offer peripheral services such as supply chain management, fairs and exhibitions etc,” Paul added.

The company’s European hub for land transport is currently being developed and will open in Cologne in early spring. “We are very excited about the new hub. Previously, we had individual bi-lateral arrangements with partner countries. The European hub will be operated and managed by our product management people in head office, which we are very excited about,” he enthused.

For land transport Schenker predominantly ships through Dublin Port. “For sea freight we use either Dublin or Cork and for air freight we use Dublin, Shannon and Cork,” Paul elaborated.

Schenker offers full and part load door-to-door services anywhere in Europe. “Because of the strength of the Schenker organisation in Europe, we can reach every post code in Europe for both full trailer loads and groupage. Schenker has invested in its infrastructure right across Europe and we are confident we can go anywhere.”

Schenker uses the services of a number of well known haulage companies based in Ireland in executing its over land deliveries and collections. “I would be loathe to mention particular companies in case I would leave somebody out, but we would deal with a number of the leading haulage companies in the country,” Paul revealed.

‘Small’ can also be beautiful, according to Schenker. “We would also use a number of smaller operators who would work for us on a local basis doing deliveries and collections,” he noted.
He added: “The smaller operators can offer ‘niche’ services to us that the larger operators may not concentrate on. They provide a first class service to us.”

Declan Watchorn - transport/warehouse supervisor

Schenker’s sub-contracted hauliers must meet certain criteria, before they are included on the preferred suppliers’ list. Paul elaborated: “There are certain criteria, which a sub-contractor must fulfil before we can start doing business with them.”

He continued: “Firstly, we make sure they are a reputable firm and have all the necessary forms of insurance. At the end of the day, we are talking about transporting our customers’ goods, not our goods. It is up to us to carry out back ground checks etc.”

In that vein there is an onus on the haulier to offer high levels of customer service. “The haulier is the public face of Schenker. We place a lot of responsibility on the haulier and I would say our hauliers are excellent in that respect.”

“We have a huge dependency on our sub-contractors. They are extremely important to us. In some cases it seems they are actually part of the company, we are close to them,” he added.
In Europe Schenker has its own extensive fleet of vehicles to execute deliveries and collections. These vehicles advertise the Schenker brand throughout Europe’s 25 Member States and beyond.”

Heightening Schenker’s profile in Ireland is one of the challenges facing Paul and the team. “We need to heighten our profile in Ireland, given our position in Europe. Everywhere you go in Europe you will meet a Schenker vehicle, but in Ireland many people haven’t heard of Schenker.”
To that end the company has employed a number of sales personnel to get out there and spread the Schenker Gospel. “It is up to us to get the message across that we are part of a global network. If we can achieve that, it will help us to grow the business in the future.”

The company will be targeting importers and exporters – big and small -across all industry sectors. “You can’t become an international freight forwarder of Schenker’s stature, without dealing with many of the leading blue-chip companies. Equally, many of our existing customers would be small and medium sized enterprises. We want to develop both sides of the business,” he opined.

Schenker services a host of industry sectors. “There are various sectors in which Schenker is very strong. In Europe, particularly in Germany, the automotive industry would be a huge part of our business. But we are general freight forwarders and will carry almost anything,” he noted.
The company is particularly strong in the semi-conductor business right across the organisation. “By its very nature, the semi-conductor business is predominantly air freight, but we would do local collections in Ireland for onward delivery by air,” Paul confirmed.

On a global scale the Irish market could be likened to a drop in the proverbial ocean, which means Paul and his team of 28 staff in Ireland are multi-disciplined across a wide range of industry sectors.
However, at corporate level the company has teams of specialists who focus on growing particular industry segments. He noted: “Schenker would have people at head office who are responsible for growing certain industry segments.”

The company’s activities are controlled from headquarters at Santry, Dublin 9. “We have an office in Shannon, but Santry is the head office,” he mused.
With Ireland’s economic fortunes on the rise once more, Paul is confident that Schenker will significantly increase its presence in the market in the medium to long term.

That could spell good news for the company’s hauliers. “We have a number of operators working with us and as we become more successful, I would hope that they would grow with us. We like to stick with the local guys, where possible,” he concluded.