Innovative technologies play a decisive role for a modern service provider like Militzer & Münch. At the moment, the use of artificial intelligence (AI) is an issue that is causing a stir in the logistics industry. In order to explore the individual needs and potential applications of this technology, Thies Spannagel has been appointed Group Project Manager AI. His task is to evaluate processes where AI can be used to reduce the workload on employees and increase the service level and efficiency of the logistics service provider. Thies Spannagel has been with Militzer & Münch for over six years and has more than 20 years of professional experience in the logistics industry.

 Mr. Spannagel, what is your task in the AI project?
As Group Project Manager AI, I am like a hub. I receive input from the country units telling me what challenges they have to overcome on a daily basis, and where major expenses arise that could be reduced using AI. The focus is always on improving the quality of service for our customers. I then check whether there are any suitable AI modules that we can integrate into our IT infrastructure. I’m very interested in AI because I’m very process-oriented and want to achieve my goals fast and efficiently. If we process the orders in a clean and orderly manner, we achieve a high level of customer satisfaction.

 

When was the project launched, and what is the objective?
We started the project on 1 March. Of course, I had already been looking into the topic of AI before then. In November 2023, M&M air sea cargo GmbH took a new transport management system into operation, our central software that we use to process all orders. The task now is to further develop this system – including with AI. The aim is to continuously reduce for our colleagues the number of manual data entries in order to increase productivity. However, we are also looking at other areas where AI can support us.

 

Where do you see the biggest challenges?
The Militzer & Münch Group’s country units are relatively heterogeneous. Each country has its own transport management system and its own IT infrastructure. This is a challenge when we purchase new modules, as we have to ensure that they can be used by as many country units as possible. Evaluating the modules is also demanding. Service providers often present demo versions in their showcases. The scenarios shown in these demos are often perfectly tailored to the tool’s capabilities. However, the problems we face in reality often have completely different parameters, for which the AI must first be trained over a lengthy period of time before we can use it – a new AI module is never ‘plug and play’.

A good example is something we saw with one of our partners in Canada. They wanted to implement a module that uses AI to process customer enquiries quickly and efficiently. When I looked at this with my colleagues, I was initially really impressed. After a few months, when we asked if our partner was happy with the tool, they said it wasn’t being actively used yet. There were still too many early problems and the tool was not even suitable for many areas in the company. Manual intervention was required so often that it was more efficient for employees to process enquiries manually.

When we select providers, they often ask in advance for examples from our company that they can use to demonstrate their tool. However, we also always bring along a few cases that the provider is not yet familiar with. That way we can better assess whether we can actually use the tool or whether the provider has only customised the demo to our specific case. Risk management is also my task when selecting these tools. That’s why for such meetings I take up to three experts with me who deal with the issues under review on a daily basis, so that we don’t conclude contracts lightly.

 

What characteristics do AI modules need to have in order to be considered for Militzer & Münch?
At the moment, we are primarily interested in using AI for repetitive tasks in order to free up resources in other areas. We can thus optimize processes and become more efficient.

A good tool has to fit in well with our IT infrastructure, which is of course difficult due to the different systems we have in the individual countries. When I talk to the provider of an AI module, I naturally always ask what interfaces are available. The API standard, which has the advantage that the code does not have to be rewritten from scratch during implementation, is already widely used. We have to check which providers are available on the market and for which areas they are suitable. One example is customs clearance. The aim is to automate the process so that the documents we receive from the customer are already prepared to such an extent that our colleagues only have to look over them again and add small details – but don’t have to search for and enter all the information themselves.

With technologies such as AI, it’s important to be involved right from the start and follow the development of promising modules so as not to be left behind later on. My job is to play a leading role in supporting my colleagues in the other countries in implementing the modules. However, the respective country unit must provide sufficient resources – in particular a temporary implementation team of local experts who are familiar with the regulations of the respective country. Teamwork is absolutely called for here.

AI systems rely on data, and the data must be prepared in such a way that the AI can process it. Last year, for example, the colleagues at the German Road (M&M Militzer & Münch GmbH) began using an AI module that extracts orders from major customers’ emails and automatically creates an order in our transport management system, largely eliminating the need for manual input. However, it took a year to train the system so that it works for us, which tied up a lot of resources.

 

Which institutions or service providers are supporting Militzer & Münch in the project?
 We cooperate with the University of St. Gallen. In this context, we also exchange ideas with a student consultancy that also collaborates with the university. The consultancy has already supported AI projects. Their experience is very valuable to me, because we don’t want to make mistakes that we only notice years later. There is a lot of potential for mistakes, especially in the field of innovative technologies. That’s why it’s important to get input from different areas. We need to find out which technologies are on the market, which areas they cover and what potential they have. The price-performance ratio and the options for implementation in our IT infrastructure also play an important role. Only once we have gathered information about all of this can we decide whether an AI tool or module is of interest to us.

 

Hristo Marinov, 46, started at Militzer & Münch in Bulgaria in 1996. Today, he is Deputy CEO of M&M Militzer & Münch BG Co. Ltd. and knows the company and the Bulgarian logistics market like the back of his hand. In this interview, he tells us how he made it from courier to the top of the company, what distinguishes Militzer & Münch in Bulgaria, and how the company is preparing for the future.

  

Mr. Marinov, you have been with Militzer & Münch for 27 years. What was your start in the company like?

I joined Militzer & Münch in 1996, right after graduating from school. As a courier, I took documents from our warehouse to the customs office. At that time, they were at different locations. But I only had this job for five months, because then I did my one-year military service. After that, I went straight back to Militzer & Münch, and I’ve been happy to stay until today.

 

From then on, it was a steep career path for you. What were the most important stations?

Parallel to my re-entry at Militzer & Münch, I started studying at university. First, I did my bachelor’s degree in accounting, then my master’s degree in international economics. At the same time, I worked in the warehouse at Militzer & Münch. At that time, a large supermarket chain opened its first stores in Bulgaria, and we stored the entire non-food product range for them. In that project, I was more or less the team leader. So, I knew how logistics worked in practice – and that was not always the way it was taught in theory at university.

Later, I switched to our road department. It was divided into three segments at the time, and I became head of the groupage export department. Later, we split the road department by country rather than by service, and I was in charge of Central Europe with Germany and Scandinavia. Again a few years later, we decided to combine all the Road segments into a joint Road Transport Division. I took over responsibility for this division and became Deputy CEO.

 

What are your main tasks at the moment?

Today, among other things, I am responsible for many operational areas of our business, for example for our automotive customers. I also oversee the IT department here in Bulgaria and take care of our partner network – especially CargoLine. As an official partner of the LTL cooperation, we carry out groupage transports with all 72 companies in the network as well as the main hub in Germany.

Although we are a small partner in the network, we offer very high quality services. Thus, over the past few years, we were awarded the CargoLine Quality Award three times in a row for our excellent and reliable service. These are achievements of which our entire team is very proud and which spur us on to continue giving our best to our customers every day.

 

What’s the secret of Militzer & Münch Bulgaria’s success?

I think there are a number of factors that have a very positive impact. On the one hand, we are very well-established in terms of performance, and offer the entire range of logistics solutions from a single source: road and rail transports, contract logistics, as well as airfreight via our subsidiary M&M Air Cargo Service BG Co. Ltd. On the other hand, we have a very experienced and stable team, which, together with our air cargo company, counts about 150 employees. They are our company’s greatest asset. Many of them have been serving our customers for 15, 20 or more years. This testifies to our very good working atmosphere and to a management that genuinely cares about its employees. And last but not least, we are ready to break new ground, find innovative solutions and grow together with our customers.

 

What does that look like in concrete terms, can you give us an example?

In recent years, for instance, we have significantly expanded our portfolio in the area of 3PL logistics solutions in collaboration with a major automotive customer, and are increasingly offering value-added services. We acquired the tier 1 supplier from Germany with a large plant in Bulgaria as a customer two years ago. We operate an integrated bonded warehouse for imported goods from China for this company. We receive and store the goods, pick them, take care of customs management, and deliver them to their destination. The level of service and quality is extremely high, and the KPIs are constantly being developed. Which makes the project very demanding, but also very interesting. Because the know-how we acquire here we can also use in other projects.

 

What are Militzer & Münch Bulgaria’s plans for the future?

As I said, we want to further expand our value-added services. Having recently put a completely new cross-dock terminal into operation, we are planning to modernize our existing terminal in Sofia for this purpose. Our CEO Sacho Todorov is driving the project together with me. We are planning state-of-the-art equipment, including a narrow-aisle storage system, to make the most efficient use of the available space. We will probably start modernization work before the end of the year.

 

You have many tasks and carry a lot of responsibility. What do you do in your free time to compensate?

I naturally spend a lot of time with my family. My wife, who by the way I met at Militzer & Münch, our two boys and I do a lot of sports. Together, we go in for outdoor activities, such as mountain biking. I also discovered CrossFit for myself.

Workouts are constantly varied and incorporate weightlifting, gymnastics, running and more. It improves my strength, stamina, and mobility skills.

 

Thank you very much for the interview, Mr. Marinov!

Merry Christmas and a Happy New Year!

As the Christmas holidays are drawing near, we wish you joyful, restful days among family and friends.
We would like to take the occasion to express our thanks to you for the good cooperation in 2022.
For the challenges of the upcoming year, we wish you good luck, success, health and personal contentment.

Dushanbe. First prize for M&M Tajikistan: the team under Managing Director (MD) Aziz Sharipov won the official competition for best exporter of the year 2021 in the logistics segment. The competition is held every year by the Government’s Export Agency; the award ceremony for the country’s best exporting companies took place at the Hyatt Regency hotel in Dushanbe on November 28.

Proud of this honor is Aziz Sharipov: “It is a great reward for all the work the team has done this year, and it further strengthens the M&M brand name.” The picture shows the M&M Tajikistan team with MD Sharipov (third from left) with the trophy.

Militzer & Münch is stepping up activities in China – with more employees and new branches. Local sales are being strengthened, and services are being expanded, which offers more opportunities for customers.

After strong growth in China, Militzer & Münch is now adjusting its organization in the country: “We are internally splitting our activities into North and South China from now on”, explains Andreas Löwenstein, Regional Managing Director Asia / Far East. “At the helm of both, we have very experienced managers, to whom the North and South Chinese branches will report in the future.”

Regional Director for China South is Carl Gao, the former branch manager in Shanghai. Jeffery Guo, 45, took over as head of China North in October. He has been at home in the logistics industry for over 20 years, including more than ten years as branch manager with a renowned international logistics service provider. With his expertise, he will support the northern Chinese branches with immediate effect, and further expand business in the region.

A greater footprint in North China

“The new management appointment for North China is just one element in Militzer & Münch’s general growth strategy in the region,” says Elyar Sherkati, Managing Director of Militzer & Münch China. “This year, we are strengthening our presence also by taking on additional employees, for instance at our branch offices in Tianjin as well as in Qingdao, one of China’s most important logistics locations.” Moreover, the Qingdao team was recently able to move into new office premises, and in Zhengzhou and Changchun in the northeast, Militzer & Münch opened two new sales offices.

In Shenyang, also in northeastern China, the company recently began operating a new branch office. Branch manager Colon Sun, who has already been working in the international freight forwarding industry for several years and has a very good knowledge of the market in northeastern China in particular, is in charge of developing and running the new location.

“Shenyang is a major transportation hub in the north of the country. We are glad to be able to further expand our presence at this location and in North China in general, to win experienced specialists, and thus to offer high-quality logistics services to our customers,” says Andreas Löwenstein.

The network of locations is expanding

Another new branch office expands Militzer & Münch’s network of locations in Central China: in September, an office was opened in Wuhan, capital of the Central Chinese province of Hubei and an important transport hub in China for air, rail, road and sea transport. The aim: to offer customers the full range of transport and logistics services, and to boost local sales. Branch manager in Wuhan is Jacky Zhu, who previously worked as sales manager at Militzer & Münch China in Wuhan for almost five years, and is thus very familiar with the local market and customers. He still reports to Carl Gao as before.

With the two new branches in Shenyang and Wuhan, the Militzer & Münch China network now comprises a total of 13 locations: Beijing, Tianjin, Dalian, Qingdao, Shenyang, Urumqi, Shanghai, Ningbo, Wuhan, Chongqing, Shenzhen, as well as the two sales offices in Zhengzhou and Changchun.

“Strengthening our activities in China is part of our growth strategy,” says Andreas Löwenstein. “We look forward to further driving this positive development with the new offices and employees on board!”

‘New Markets’, ‘Industry 4.0 along the New Silk Road’, ‘New Risk Management’ – on October 10, online presentations on these diverse topics marked the end of the Talent Management Programme 2022, designed by TransInvest in cooperation with the Institute of Supply Chain Management at the University of St. Gallen.

In early summer, 21 young talents from various TransInvest companies had already convened in St. Gallen for the first teaching module of the in-service training course. In terms of topics, the three days focused on Strategy & Controlling, Supply Chain Resilience & Sustainability and Process Management. At the beginning of September, the participants met in Istanbul for the second, three-day module. In challenging, interactive teaching units, they gained in-depth insight into the areas of Leadership, Digitalization & Business Innovation, and Marketing & Sales, among others.

Alongside these tangible teaching contents, the Talent Management Programme also focuses on soft skills: thus, teamwork and the strengthening of the group spirit for example are decisive factors for living the TransInvest culture.

“In addition, the modules give the young talents the opportunity to expand their international network and experience the TransInvest culture first-hand by working closely with participants from other countries,” says Ralph Stadler, Head of Group Human Resources. “That way, our experienced experts and guest lecturers not only train our junior employees professionally, but also promote their personal development.”

 

A tried-and-tested, new support concept

Exclusive, science-based, practice-oriented: the Talent Management Programme was launched eleven years ago to provide precisely this kind of support for future managers from TransInvest ranks. The aim of the Talent Management Programme is not only to equip participants with logistics and management skills, but also to retain them in the company in the long run.

“Employee retention is extremely important for companies; it is a big challenge,” says Alexei Kovalenko, Chief Financial Officer, TransInvest and Militzer & Münch, and Speaker of M&M Group Management. “We are glad that we have been able to successfully meet this challenge with the Talent Management Programme for many years now. The young talents receive intensive training in all relevant areas and are offered the opportunity to develop individually – and we can fill top positions in the TransInvest Group with highly qualified and motivated junior staff from our own ranks. A win-win situation.”

In 2022, the Talent Management Programme met expectations in every respect – both on the part of the participants and those responsible around Ralph Stadler. With the impulses from the final teamwork presented, the participants are now creating a Personal Development Plan (PDP) with their superiors, a plan which will guide their development in the company over the next few years.

This year, Paata Kacharava celebrates a very special anniversary: 25 years ago in June, he started as Managing Director of M&M Militzer & Münch Georgia and has been driving the development of the country unit with heart and soul ever since. We talked about his time at Militzer & Münch so far, changes in the logistics industry, and the appeal the business holds for him.

Mr. Kacharava, first of all congratulations on 25 years with Militzer & Münch! That’s a long time; how would you describe it in retrospect?
In summary, I would say it was a very exciting and, in the beginning, also challenging time for me personally. When I joined Militzer & Münch Georgia in 1997, I was the first and only employee of the country unit. Today, our core team consists of six employees, who take care of all projects in the fields of road transport, air and sea freight, as well as of our courier and express services with our partners. The past three years in particular, with the global impact of the Corona pandemic and the political events in Ukraine, have had a major effect on the Georgian economy, and also put our business to the test.

What was your professional career like before you joined Militzer & Münch?
Before switching over to Militzer & Münch and the logistics industry, I had worked in Georgian government institutions for many years, holding various positions in the foreign trade sector; among others, I was responsible for the management of foreign trade relations.

What were the biggest changes you experienced in the subsequent 25 years at Militzer & Münch?
The trade lanes as we know them today and the possibilities they offer, did not exist at all at that time. When I started at Militzer & Münch Georgia, people were dreaming of a Euro-Asian transport corridor and the manifold opportunities it would create – in the course of my career, I was able to witness how this very dream became reality, step by step. Today, the Caucasus and Central Asia are important trading partners for European countries; transports via road, rail, sea, and air to these regions are part of the Militzer & Münch core business. And we are seeing that the demand for products from and connections to these regions continues to grow.

Which industries do your customers come from?
Currently, our most important customers come from the automotive industry, the retail sector, and the pharmaceutical industry. In addition, we work for many local manufacturers who wish to ship their products to the European market.

What is the attraction of the logistics industry for you?
It is clearly the people who work in this sector. Our employees drive our business forward every day with full commitment and know-how; they are the basis of our success. They have significantly contributed to the development we have been able to experience with Militzer & Münch Georgia in the past years, and I am very grateful to them for their commitment. I would also like to take this opportunity to express my sincere thanks to the Militzer & Münch management, whose support my team and I have always been able to count on in the past. Cooperating with all these people is a great pleasure for me, and I am looking forward to the tasks and projects still lying ahead of us.

Mr. Kacharava, thank you very much for taking the time to talk to us!