Dematic looks to increase Chinese presence

US intelligent warehousing and logistics provider eyes expansion of its services and systems in dynamic and lucrative market

United States-based intelligent warehousing and logistics service provider Dematic has vowed to expand its presence in China by offering more localized solutions and services.

As a member of the KION Group, a global leader in industrial trucks, related services and supply chain solutions, Dematic has implemented more than 6,000 integrated systems for a customer base that includes small, medium and large companies doing business in a variety of market sectors.

In China, Dematic has established partnerships with a number of leading domestic and international brands from apparel, e-commerce, electrics, durables and other industries, to offer intelligent warehousing projects.

"The Chinese market grows at a fast pace over the years. This is a very exciting place for us, and of course a key market for Dematic," said Jeff Moss, CEO of Dematic International.

Dematic has seen steady growth in China in recent years. So far, its sales volume in the country increased by more than 50 percent year-on-year in 2018, the company said.

By the end of the third quarter of 2018, output of localized products is five times as much as last year.

Dematic will continue to speed up its development in China and increase its exposure in the market, which has huge potential for the future, Moss said at the China International Import Expo (CIIE), held from Nov 5 to 10 in Shanghai.

"Dematic positions itself as a top-quality leader in the Chinese market. And in coming years, we will continue to have a firm commitment to this market with a series of efforts, such as introducing additional standardized subsystems to the market, further localize, form additional partnerships with local suppliers and integrators, and adopt decentralizing strategy," said Jens Hardenacke, managing director of Dematic China.

He said Dematic plans to add more products to its China portfolio in the next two years. More products or equipment components will be produced or put together in China.

"In the past, much equipment was transported from Germany or the US to China. The new way will help greatly lower the cost, and product prices can be reduced by as much as 50 percent," he said.

So far, about 30 percent of its products for the Chinese market are produced at Dematic's Suzhou plant, in Jiangsu province.

The proportion is expected to reach 80 percent in the next three years, according to Hardenacke.

He said that China is not only an attractive market but also the most competitive one in the world. To localize solutions for customers is one of the most important steps for Dematic's development in China.

"Dematic will work to provide more localized service and solutions to meet different needs from different industries, a way to keep us being competitive in the market," Hardenacke said.

"Our sales force will go closer to customers and try to better understand customers. Based on their various needs, Dematic will design and provide solutions with the latest technology so as to optimize the supply chain," he said.

At the CIIE, Dematic is showcasing its new-generation multishuttle warehousing solution. The company said the solution is far more efficient than manual operation and is more flexible, scalable, modular and energy-efficient.

In addition to concentrating on rapidly developing industries, such as e-commerce, apparel, Dematic will adapt to more industries. And many things will be done to fully support industries' development, which will also be a focus strategy for Dematic in the future, Hardenacke said.

(China Daily 11/09/2018 page9)