As a system integrator, TGW takes responsibility over the design, production, implementation and maintenance of automated distribution centres – including everything from mechatronics to control systems and software. TGW’s core industries are fashion and apparel, groceries and industrial and consumer goods, serving international brands from A as in Adidas to Z as in Zalando.
Head of Business Development at TGW Northern Europe
The roots of TGW go back to 1969, when Ludwig Szinicz took over a small metalworking shop in Wels, Austria. Today, TGW has subsidiaries in Europe, China and the US and more than 4,400 employees worldwide.
Jan-Willem Klinkenberg, Head of Business Development at TGW Northern Europe spoke to Warehouse & Logistics News.
What are your best-known products/solutions/services?
TGW is a leading provider of automated order fulfilment solutions. Our technology and equipment base is very solid with products such as conveyors, shuttles, mini-loads and appliances like automated palletising robots. More important is that we design an end-to-end solution in close cooperation with our customers, controlled by our in-house developed software. TGW has all the expertise and know-how to develop, build and service automated fulfilment centres that meet our customers’ needs for their future operations.
How is your industry sector performing at the moment?
There is still a growing demand for automated warehouse solutions in Northwest Europe. TGW is in an excellent position to participate in the growing future ambitions of the companies we are currently working with in a consulting and design phase or in realisation.
Which industry sectors are your customers in and which ones are growing fastest?
TGW has a clear focus on fashion, groceries and industrial and consumer goods. This sector brings a wide variety of products: automotive aftermarket parts, industrial equipment/ components, electronics, personal healthcare and cosmetics, books & library, DIY, etc.
TGW is a dominant leader in the fashion market with order fulfilment solutions. This market remains good. The grocery market for both retail and on-line brings both a continuous solid basis and a growing dynamic with new food-concepts.
Which areas of your business are the best performing?
We are satisfied to still cover a solid order intake basis throughout Northwest Europe (UK, Benelux and Scandinavia). We have several projects in realisation, thus securing revenue in the coming years. Next to this we continue to focus on our core markets and do see interesting studies and projects ahead of us.
What are your most recent product innovations?
We recently introduced our new generation of Stingray shuttles, with covers from locally sourced wood, thus saving 25 tonnes of plastic per year. The new shuttles also perform automatic health checks, detect twisted totes and resolve the issue without human intervention. This way, manual intervention is reduced by up to 90 percent. The shuttles unite performance with reliability, a rugged design and energy efficiency.
What are the major trends and developments affecting your category and your customers, and how are you responding?
TGW Ltd. has been in warehouse automation for almost 20 years. In recent years, we have seen an increase of new warehouse automation players with new technologies e.g. cubic goods-to person systems as well as a growth of mobile robot appliances.
Innovation is therefore a key priority for TGW. Last year, TGW Logistics invested some 48 million euros in R&D – more than ever before. The company has applied for a total of over 500 patents for its products and solutions so far. In the coming years, a particular focus will be placed on artificial intelligence, software and robotics.
Can you tell us about any recent customer contract wins or projects and how you helped the customer meet their challenges?
In the industries of fashion & textile, grocery and industrial & consumer goods, local and international companies alike trust in the intralogistics expertise of TGW. During the 2022/23 business year, such companies as the leading sporting goods retailer INTERSPORT Austria, Sweden’s number 1 grocery retailer ICA, and the online grocery specialist Picnic all contracted TGW Logistics to automate their processes.
How were business levels in 2023 compared to previous years?
TGW Logistics’ revenue increased by 3.5 percent to 956 million euros and our order intake amounts to approximately one billion euros. Like many other companies, we faced great challenges due to massive cost increases in our international projects and to deteriorated supply chains.
TGW Logistics has grown significantly in recent years, expanding its competencies and securing a spot among the top 10 international intralogistics specialists. However, this growth has also slowed down processes in some areas; therefore, TGW has kicked off a transformation programme that is meant to test structures, increase speed and make the company fit for the future.
What is your strategy for succeeding in 2024 and how do you plan to grow your business?
TGW continues to invest in its future. There is the strong focus on research & development and thanks to a recent acquisition, we have access to a disruptive hanging goods conveyor technology that represents a gamechanger for e-commerce. In 2024, TGW will be expanding its international headquarters in Marchtrenk, Austria, adding new offices as well as production and storage areas.
Can you tell us about any areas where you’re currently making technical advances e.g. safety, sustainability, environment?
TGW is a value-oriented company that combines sustainable and economic entrepreneurship on an equally high level. This is translated in a Code of Conduct for Employees and Suppliers. The protection of the environment, resource-saving use of raw materials, energy-efficiency and sustainable innovations play an essential role in all our economic, social and entrepreneurial considerations.
Do you invest in staff training and skills development?
One of TGW’s challenges is finding and retaining the right people. We are competing for engineering-based labour, in a large variety of areas. We have a graduate scheme for people coming from universities and colleges so they can gain the necessary work experience. With our apprenticeship programme, we offer people that have finished school and are not going to university the chance to learn a skill and the guarantee of having a job with TGW when they finish the apprenticeship.
What is the company’s commitment to social responsibility?
TGW is a foundation-owned company with a clear assignment. TGW cannot be sold and is therefore a stable financial partner and reliable employer. The majority of profits stay in the company and are reinvested – in the employees and technologies of the future. In addition, ten percent of profits go to charitable projects. We support various charitable initiatives and social organisations.
Are you helping customers boost the level of automation in their business?
Warehouse automation is our core business. But we always look at the right degree of automation to bring the necessary added value. The degree of automation and application vary as companies have different resources and skills at their disposal. That’s why TGW is individually tailoring its solutions to the needs of every customer. The more insight TGW has in historical data, business data and personnel levels, the better they can run a simulation that meets the planned investment and labour needs.
Do you help customers maximise the use of their existing warehouse space?
TGW works together with its clients to find a cost-effective and high-performance alternative to a new purchase. TGW’s retrofit services is equipped to optimise processes deploying upgrades in mechanical systems, controls and/or software. They range all the way from individual replacement units, minimal adaptations, modifications and updates to optimisation of end-to-end warehouse space and even comprehensive extensions of the system.
What exhibitions can we expect to see your company exhibiting at in 2024?
LogiMAT, Stuttgart (19-21 March)
IntraLogisteX, Birmingham (19-20 March)
How would you sum up your company in three words?
Focus on People, Learning & Growing, Passionate.
TGW
01858 468855
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