Successful start for new tesa logistics concept in Eastern Europe

More efficient, faster customer service in growth regions

Efficiency, high quality and smooth-flowing processes are the yardsticks by which tesa measures not only its products and their uses in industry, at work and at home. They also apply to tesa’s internal business processes along the entire supply chain. This is confirmed by the new tesa logistics concept tesap and Eurologistics that has been introduced in Hungary.

With tesap & Eurologistics, tesa AG is continuing its rigorous course of efficiently consolidating the business in growth regions.

The new concept has reduced logistics costs by at least 17%, raised warehouse turnaround frequency by 51% and product availability to 97%, allowing customers to be supplied more accurately and quickly, while at the same time sharply cutting costs for stock, transport and storage.

The basis for this success is formed by the concept’s strategic components and their rigorous implementation: tesa merged IT, logistics and supply chain management into one central IT/Supply Chain department. With regard to warehouse management and distribution, in Hungary tesa profits from the established partnership with the Dachser Group in Western Europe. A further success factor was the decision to establish Hungary as the first regional depot in Europe for export to seven other countries. tesap & Eurologistics gained enormously in efficiency and speed by the transformation of all restocking and distribution processes into one internationally uniform IT department.

The tesap & Eurologistics concept was created in 2001, when tesa AG became independent of its mother company Beiersdorf. The core of the restructuring process as an independent public company was a Europe-wide logistics network with a holistic approach. The aim was to support the steady development of turnover and cut logistics costs significantly, while at the same time offering greater availability and better customer service. From 2001 to 2004, tesa re-jigged its Western European country organizations, before implementing the concept in Eastern Europe.

With tesap & Eurologistics, tesa AG is continuing its rigorous course of efficiently consolidating the business in growth regions. Our goal is to offer customers anywhere in Europe the best possible service. Currently, tesa supplies its trade partners in all metropolitan areas of Europe within one or two days – an achievement which can be bettered with the use of tesap & Eurologistics. In the coming years, all tesa Logistics bases in the sales region of Eastern Europe will be included in the new concept. After accounting for exchange rates, tesa managed to raise turnover from January to September by 8.2% to €636m compared to the same period last year. The operating margin rose to 11.0% from 9.7% the previous year.