M&M: Using artificial intelligence to clear resources

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.

 

Trade Lane Africa: “There is always a way”

In view of the impressive economic growth in some emerging markets south of the Maghreb, Militzer & Münch is expanding its activities on the African continent. We asked Irene Pinkrah, Business Development Manager Trade Lane Greater Africa, about the special aspects of working with Africa, the challenges she and the team have to overcome, and what she likes best about her job.

Ms. Pinkrah, what are your tasks as Business Development Manager for Trade Lane Africa?

My main task is to expand and maintain business relationships with existing partners in Africa and to identify new partners for potential collaboration. I also build and maintain business relationships in Germany together with our sales team and take care of customer acquisition. And I also define marketing strategies and develop and optimize the trade lane between Germany and Africa by analyzing, planning and implementing efficient transport and logistics solutions.

How is the Militzer & Münch business developing in Africa?

We are currently in the process of developing the Sub-Sahara segment and are very optimistic. Africa has experienced significant economic growth in recent years and offers considerable development potential in some sectors. Militzer & Münch has been active in Morocco, Tunisia and Algeria for many years, and is very successful in this field. We are therefore confident that we will also be successful in sub-Saharan Africa. Ghana, Kenya and Nigeria, for example, are very interesting for us.

We are currently working on establishing a partner network. Against this background, several Militzer & Münch country units, including Militzer & Münch Germany, joined the Airfreight Logistics Network for Africa (ALNA) some time ago, a strong network for airfreight to and from the African continent. With ALNA, we have access to a secure and reliable network of companies in many African countries.

In order to tap into the potential of the Ghanaian market for us, I will be attending the Supply Chain Business Forum and Exhibition in Ghana’s capital Accra this coming July. The trade fair will focus on current trends, challenges and opportunities in the supply chain sector. As Militzer & Münch is sponsoring the event, we also have the opportunity to present our products and services on site.

What are the main goods Militzer & Münch transports to and from Africa?

African countries import a variety of consumer goods, including electronics, vehicles, clothing and household appliances. The primary exports are raw materials as well as agricultural and pharmaceutical products.

What challenges have you experienced with transports to and from Africa?

Many parts of Africa have only insufficient transport infrastructure, both in terms of roads, railways and ports. This sometimes leads to bottlenecks, delays and increased transportation costs. In addition, different customs regulations, complicated documentation requirements and inefficient customs clearance procedures also complicate and delay transportation. Instability in some regions and cultural differences can also hinder transportation. But as long as we are prepared for these hurdles, there is always a way to overcome them. After all, challenging markets are our specialty.

What positions have you held at Militzer & Münch so far, and what do you like best about your work?

I have worked in operational positions in air and sea freight for over 20 years. Most recently, I worked in the export department of M&M air sea cargo GmbH in Frankfurt for 15 years. In 2022, I participated in our internal Talent Management Program, where one of our tasks was to identify promising new markets. We singled out Africa as one of the most interesting areas.

I really enjoy working for Militzer & Münch because the company is characterized by a family environment, motivated colleagues, openness and diversity. What I particularly like about my current position as Trade Lane Manager is that I can work independently. I can really make a difference here. The diverse challenges my job entails motivate me, too.

EMEX Kazakhstan on track for success

The courier, express, and parcel service EMEX Kazakhstan, a subsidiary of the Militzer & Münch Group, looks back on the past years with great satisfaction and plans further growth.

EMEX is the official partner of FedEx in Kazakhstan and handles all FedEx CEP transports within the country. The company operates its own substantial fleet of circa 100 vehicles as well as a dense network of branch offices in the country. The main sorting center is located in Almaty. All international shipments, including customs clearance, are handled via this hub, with transit times for express delivery between one and four days. EMEX’s major customers operate in the retail, fashion, pharmaceutical and medical technology, as well as oil and gas sectors. What they value most about their CEP provider are the comprehensive turnkey solutions and personalized support.

This year, EMEX is about to celebrate an anniversary. The Militzer & Münch Group’s CEP service in Kazakhstan turns 20 years old and has had a successful time recently: “We were able to increase our market share and consolidate our strong position among the top three service providers in the industry, we obtained important ISO certifications in the areas of quality, environment and safety, and were even awarded industry prizes,” says Tatjana Vorobyeva, who has been heading the company with a staff of more than 360 as Managing Director since 2016. “The positive results are largely owed to growth in e-commerce and consolidated domestic transportation.” In 2023, EMEX also opened its first location in Kyrgyzstan, expanding its extensive branch network in Central Asia.

Into the future – with big plans

EMEX plans to continue growing in the future by investing in personnel management to attract new talent and in its own warehousing space, for example. Strategic marketing measures are to further strengthen the EMEX brand, while an expanded range of services will appeal to new customer groups. These include the Fourth Party Logistics (4PL) and Fulfilment Services divisions, among others.

“We have big plans – and of course we are already preparing for our 20th anniversary”, says Tatjana Vorobyeva. “Our customers rely on EMEX because their consignments are in good hands with us and reach their destination reliably and on time. This trust has brought us to where we are today and spurs us on to continue to improve and grow.”

Militzer & Münch Dubai: Strong in ship supply

About five years ago, the Militzer & Münch Dubai team moved from the city’s airport to the Jebel Ali Free Zone (JAFZA) at the western end of Dubai, one of the largest free trade zones in the world. The move was the result of the country unit’s strong growth, which is still ongoing: Militzer & Münch Dubai is continually expanding its range of services and its customer base is growing. The supply of ships on the water is developing into a particularly successful line of business.

At the location in the Jebel Ali Free Zone, the Militzer & Münch Dubai team focuses on the transport of ship spare parts. For some time now, there has also been an increasing demand from customers for the complete supply of ships. In addition to spare parts, this includes the delivery of further technical equipment, consumables, bonded goods, food for the crew and maintenance services. Militzer & Münch is responsible for the procurement of equipment and goods, their storage, and delivery on board the ships – even beyond the Jebel Ali Free Zone.

Growing market segment in the port of Fujairah

Thanks to the strong commitment of the Ship-Spares-team, led by Business Development Manager Kiran Kumar, the local company has seen a significant increase in orders for ship supplies at the Port of Fujairah. Located on the east coast of the United Arab Emirates (UAE), the port is a major hub for shipping in the Gulf region and the Fujairah Offshore Anchorage Area (FOAA) offers 133 berths for incoming vessels as well as a wide range of maritime services.

“Our aim is to offer our national and international customers an all-inclusive package with real added value in ship handling, from spare parts in transit to catering for the ship’s crew” says Anil Manath, Managing Director of Militzer & Münch Dubai.

Militzer & Münch not only handles ships moored at offshore anchorages in Fujairah but also ships in transit. For this “midstream” supply, Militzer & Münch exclusively delivered more than 200 shipments in UAE waters by using hired supply boats and made over 50 round trips in 2023 – aside from deliveries to local agent’s boats. The ships served by the Militzer & Münch Dubai team currently come mainly from international waters while passing through the OPL (outer port limits) and inner anchorages of the United Arab Emirates during bunkering and maintenance.

“The port of Fujairah has become an important location for us and we expect a further increase in the volume of orders for ship supply”, says Anil Manath. “We will continue to expand our local presence in the future so that we can provide our customers with a central one-stop-shop for the optimal handling of ships round the clock.”

M&M Kazakhstan: Lots of good reasons to celebrate

The Militzer & Münch country unit in Kazakhstan was founded in 1993. Its development is impressive: Today, M&M Kazakhstan offers its customers national and international transports on all transport routes, as well as customs clearance – and all this with great success. The team is growing, as is the customer base; the range of services is continuously expanded, and new markets are opened.

In summer 2023, around 70 employees and customers of M&M Kazakhstan came together in a restaurant in Almaty to celebrate Militzer & Münch’s 30th anniversary with a colorful entertainment program featuring live music, a dinner buffet, and cocktails. Of course, a birthday cake had to be part of the event.

Zlata Kim, Managing Director of the Kazakh country unit since 2019, has closely accompanied and driven the development of the company in recent years. “We can be very proud of what we have achieved over the past three decades,” she says. ”We offer our customers transport logistics services at the highest level. We are constantly expanding our portfolio and adapting our services to current requirements. In the field of renewable energies, we have been able to handle some impressive projects, such as the transportation of large quantities of components and modules for solar plants from China to Kazakhstan.”

There is a close trade relationship between Kazakhstan and China; the European Union, however, has recently turned into the most important economic partner. Which also applies to M&M Kazakhstan. “Rail transports play an important role here, but at the moment, truck transports from Europe are also in high demand from our customers,” says Zlata Kim.

“Employees are our greatest asset”

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!

A new national subsidiary in Vietnam

St. Gallen, December 18, 2023. Logistics company Militzer & Münch is growing in Asia: M&M Militzer & Münch Vietnam Co. Ltd. starts operations today. The new country unit offers the full range of Militzer & Münch services, with a special focus on air and sea transports.

The Militzer & Münch Group is pursuing a growth strategy in the Asia / Far East / Oceania region. Most recently, a new company was founded in New Zealand in 2022. After M&M China, M&M Malaysia, M&M Sri Lanka and M&M New Zealand, M&M Vietnam is now the fifth national subsidiary in the region. It is located in Ho Chi Minh City. The 9 million-strong metropolis on the South China Sea is both the economic center of the country and an important transport hub for Southeast Asia.

Significant development opportunities
Militzer & Münch focuses on promising markets in the region and considers the location to have great potential for further growth: “Within a few years, Vietnam has developed from one of the world’s poorest nations to a middle-income country”, says Andreas Löwenstein, Regional Managing Director Asia / Far East at Militzer & Münch. “We therefore see good opportunities for successful development while at the same time strengthening our network in the region with the new country unit.”

Militzer & Münch Vietnam will serve many different industries in import as well as in export. A large part of the transport volume will be generated by sea and air transportation. Peter Schüpbach, who previously held various management positions, is heading the new subsidiary.

Militzer & Münch Turkey: a well-coordinated team

Earthquake, pandemic, inflation – in the year 2023, the people in Turkey have to cope with severe catastrophes and challenges that seem almost insurmountable. But economic uncertainties and global turbulences are by no means new to the employees of Militzer & Münch’s Turkish subsidiary – and they know how to deal with them.

In February of this year, parts of Turkey and Syria were struck by a devastating earthquake. More than 56,000 people died, many more were injured, lost family members, lost their belongings – the disaster traumatized the people of Turkey.


Help for the victims

In response to the destruction and distress, the Turkish International Freight Forwarders Association, UTIKAD, sent relief goods to the earthquake region – and the Militzer & Münch team assisted. “In this humanitarian effort, we coordinated the transport of urgently needed relief goods carried in twelve trucks plus a complete train of 32 wagons”, says Cem Ulusoy, Managing Director Militzer & Münch Turkey. “In addition, together with the Militzer & Münch branch office in Basel, we donated 5,000 euros to “AHBAP”, a Turkish relief organization.”

The Turkish economy has been severely affected by the natural disaster, too. About 35 percent of the country’s industry are located in the areas affected by the earthquake. Add to this the consequences of the pandemic and global inflation… Militzer & Münch Turkey is suffering from these conditions, too. But the team has learned to operate in an environment characterized by uncertainties, and to carry out business successfully.


Steady development

The Turkish Militzer & Münch subsidiary was founded in 1996. “At that time, we had only seven employees and a single branch in Izmir, run by one person,” says Cem Ulusoy. After the new management of Militzer & Münch Turkey started working in January 2012, the Turkish country unit began to grow. “Today, we employ almost 60 people and, in addition to the Istanbul headquarters, we operate three branches, in Izmir, Mersin, and Bursa, as well as a warehouse in Hadımköy and an office at Istanbul Airport.”

Militzer & Münch Turkey specializes in the transport of industrial goods and is among the market leaders in project transports. Despite the uncertainties and challenges, the team has successfully defended its position in the industry. Road transportation is most in demand among customers, followed by air and sea freight, segments that are also of great importance. The company’s main customers come from the textile, machinery, chemicals, and construction materials industries.

“We have given proof that we are capable of operating successfully not only in times of uncertainty, but also of fulfilling our social responsibility in times of crisis,” says Cem Ulusoy. “An important next step for us will be to invest in a warehouse to provide even better services to our customers and meet the ever-growing demands.”

On board six trucks from China to Uzbekistan

Within only 20 days, Militzer & Münch’s Asia specialists transported power generation equipment, a total weight of almost one hundred tons, from the extreme northeast of China to Tashkent.

Almost 4,500 kilometers lie between Anshan in China and Tashkent in Uzbekistan – as the crow flies. Between May and June 2023, Militzer & Münch covered this distance in the context of a special order: A large number of wooden crates containing transformers, switch cabinets, and other power engineering components had to be picked up from the consignor’s plant in Anshan and delivered to the consignee in Tashkent, a regular customer of M&M Uzbekistan. The journey involved crossing China, Kyrgyzstan and Uzbekistan. This meant two entry procedures – one for Kyrgyzstan and one for Uzbekistan, as well as several days of demurrage for the trucks in Yalama at the border to Uzbekistan. Six trucks carried out the impressive transport in just twenty days.

In total, the cargo weighed 97 tons; its value amounted to 1.2 million US dollars. “It was a challenge,” says Dino Wang, branch manager in Urumqi, China. “At the shipper’s request, the cargo had to be declared as one unit, which meant we had to completely reload the goods into six customs-monitored trucks before we were able to prepare and file the customs declaration.” In Osh, Kyrgyzstan, the cargo was transloaded onto Uzbek trucks. The valuable cargo was insured by the shipper; an escort for the convoy was not required.

More Space in Dubai

Almost 1,700 square meters of additional warehousing space in total – Militzer & Münch Dubai recently took into operation three new logistics facilities in the Jebel Ali Free Zone.

In order to meet constantly rising customer expectations as well as to offer fully integrated and consistently optimized supply chain solutions, expanding capacities was a strategic move. Militzer & Münch Dubai’s business is developing well. Among others, the 37-member team successfully grew its customer portfolio over the past years: while initially, the focus was on transports for the food industry, other industries are now on board, such as the maritime industry as well as the cosmetics and health & fitness sectors.

The capacity expansion features three 566 square meter facilities. One of the warehouses is temperature-controlled and offers 240 pallet spaces to serve existing contract logistics customers. The other two storage facilities, offering a total of 1,300 pallet spaces, are for ship spares in transit, LCL consolidation and cross-dock business.

“Our vision is to offer our medium-sized contract logistics customers high-quality logistics services, and to be able to meet their requirements from a single source,” says Anil Manath, Managing Director Militzer & Münch Dubai. “With this strategic step, we also ensure that we can continue to focus on the development of our cross-dock, LCL consolidation, and ship spare parts activities.”

More warehousing space in Morocco

Militzer & Münch Morocco is expanding in Tangier: 2,000 square meters of additional warehouse space are to ensure faster handling.

The port city of Tangier is located at the northern tip of Morocco, close to the Strait of Gibraltar, barely 30 kilometers from the Spanish mainland, and thus at a strategically extremely important position for goods flows. For many years, the Tangier branch office has been Militzer & Münch’s gateway to Morocco.

At this time, Militzer & Münch Morocco is expanding its own warehouse with an annex: 2,000 square meters of additional logistics space will help meet the increasing customer demand and ensure the even faster handling of shipments: “At our location in Tangier, we have been recording steadily growing volumes for years”, explains Olivier Antoniotti, Managing Director of Militzer & Münch Morocco. “With the new warehouse, we can handle the additional transport volume even better and with more flexibility.”

In total, the warehouse area in Tangier will grow to 5,000 square meters. The inauguration and operational start-up of the new facility is scheduled for the beginning of January 2024.

Militzer & Münch Eichenzell: the gateway to the Maghreb

Most of the overland transports from the Militzer & Münch branch office in Eichenzell in Eastern Hesse are bound for one or more of the Maghreb countries. This makes Eichenzell one of the most important hubs for transports to Algeria, Tunisia, and Morocco.

The small township near Fulda and Frankfurt is home to the German Militzer & Münch hub for the Maghreb – and it is continuously developing. Over the last few years, the branch has experienced steady and healthy growth. “We have a clear picture of the direction we want to take in the future,” says branch manager Julian Backenstoß. “We are receiving very positive feedback from our customers for our consistently good service. As a result, we’ve been able to expand our business and also increase our staff.” Close to twenty colleagues are now attending to the needs of customers. The attached warehousing area covers around 4,500 square meters.

Consolidated freight destined for North Africa
On average, eight to ten containers leave Eichenzell every week in a southerly direction to begin their journey to North Africa: four to five semitrailers per week head to Morocco via Algeciras in Spain. Another four to five round trips per week go to Tunisia via Marseille and Genoa. The focus is on consolidated freight.
The trucks need about six to seven days to make the journey to Algeria. Multimodal shipments are completed within nine to ten days. “If time is of the essence, customers prefer the pre-carriage by truck to Marseille. If transit time is not an issue, the combination with rail is a popular choice, also because it is cheaper. The customer can save a few hundred euros and at the same time do something for the environment,” explains Lilli Macholdt, Deputy Branch Manager and Trade Lane Manager Maghreb.

More than just the Maghreb
“We have a lot of experience in organizing and carrying out transports to the Maghreb countries,” explains Julian Backenstoß. “That’s why we keep expanding our activities and recently opened a branch office in Augsburg. There, under the management of Fourat Chetoui, Trade Lane Manager Maghreb, we are currently focusing on the direct freight business to and from the Maghreb. However, we also offer overland transports to many other destinations, of course.” In addition to transports to North Africa, Militzer & Münch also handles groupage transports to Azerbaijan via Eichenzell, as well as transports to Eastern and Western Europe. Moreover, the Eichenzell branch office has been the official CargoLine Germany depot for more than ten years, acting as a hub for classic groupage pre- and on-carriage to and from Europe or within Germany.”

To Tashkent via the Chang’an Express

Beijing, June 13, 2023. Xi’an is not only the starting point of the ancient Silk Road on the east end, but also an important gateway for international trade. Meanwhile, Central Asia, as the pioneer of the Belt and Road Initiative, serves as a benchmark for interconnected international trade. Central Asia Railway expands Xi’an’s external communication and trade by creating new opportunities.

On May 30th, 50 TEU with ZTE telecommunications equipment left Xi’an International Port onboard the Chang’an Express for Tashkent, the largest city in Central Asia

M&M China serves as the logistics service provider for this ZTE Central Asia specialized freight train.

 

The advantages of the Chang’an Express

The Chang’an Express, a new China-Europe connection. The train goes via the Khorgos Dry Port in Xinjiang and covers the total distance of 4,667 kilometers to Tashkent in ten days. This marks the first time that Xi’an International Port has collaborated with ZTE Corporation to launch a full train of goods to Central Asia.

“The reason we chose the China-Europe Chang’an Express is because it offers multiple routes, excellent services, and stable timeliness, which provide strong guarantees for the timely delivery of our clients’ goods. In the future, we will continue to strengthen our cooperation with Xi’an International Port Free Trade Zone and contribute to the construction of the Belt and Road Initiative,” said Elyar Sherkati, the Managing Director of M&M China, during an interview.

At M&M Serbia: a regional perspective

Dobanovci, Serbia. “Our goal is the region, and with Bosnia-Herzegovina and Montenegro as our first step, we have embarked on our strategic expansion course,” says M&M Serbia’s Executive Director Nikola Vasiljevic. “Plans are to extend our brand to other neighboring countries.”

M&M Bosnia-Herzegovina and M&M Montenegro were both founded in the summer of 2021. “Bosnia Herzegovina is a growing market with significant potential. Montenegro is the smaller market, but not less important to the M&M Serbia network,” says Nikola Vasiljevic, who heads the new country units. At this time, both M&M Bosnia Herzegovina and M&M Montenegro have a staff of three; road transportation is the main business, but warehousing and customs clearance are offered, too.  The first full business year is behind the two companies, and we wanted to know how they developed.

Challenges and lessons

“For both markets, the past two years were quite challenging for and highly unpredictable, but despite the challenges, we were able to adapt and contribute to the growth of the local logistics and transportation markets,” says Nikola Vasiljevic, who heads the two new units. “Our unique and personalized approach to each client has allowed us to assess the market and our capacities accurately, elevating service to a new level and finding the best solution for every inquiry. Most of the clients we work with in Montenegro and Bosnia Herzegovina are clients with whom we have had long-standing partnerships in Serbia. The focus is on import.”

“Were there any positive or negative surprises in the development of either company,” we ask.

“For a large corporation like ours, surprises, both positive and negative, are an integral part of business. The expertise of our staff is extremely important, as well as their approach to any particular situation. On a daily basis, we face challenges and strive to extract the maximum benefit from them. To us, negative situations are lessons that we can leverage as advantages in the future.”

Militzer & Münch Romania: Upswing and Optimism Despite Uncertain Times

Militzer & Münch has been present on the Romanian logistics market for almost 20 years with its own country unit. The focus is on imports and exports within Europe, with customers mainly from the industrial goods and clothing sectors. Despite current uncertainty factors, the subsidiary not only proves to be stable, but it can even report growth.

At the Romanian subsidiary, all signs point to expansion. And this although market conditions are currently rather challenging. The ongoing war in neighboring Ukraine, the energy crisis, and high inflation are creating uncertainty on the market and hardly allow any forecasts.

 

Teamwork to defy challenges

According to Managing Director Valentin Dragu, the fact that Militzer & Münch Romania is nevertheless so well positioned on the market is mainly due to the high degree of motivation and hard work of his team. “The logistics industry is very dynamic; you have to act flexibly and to be able to react to current market changes. I am very proud to say that we accomplish this even in difficult phases. As a medium-sized transport service provider, we are holding our own very well against the competition, and we are therefore generally optimistic about the future,” he says.

New location, new employees: for the roughly 30 employees of Militzer & Münch Romania, a move was due last fall; the M&M Romania team relocated to new, modern premises in downtown Bucharest. “Our current team members are happy with the new offices and the location’s very good transport connections, but hopefully also new team members in the future will appreciate this, as we are currently looking for reinforcement”, says Valentin Dragu.

 

Upswing in road and sea transport

So far this year, the current geopolitical and economic situation has had hardly any impact on Militzer & Münch Romania’s activities and results. The country unit recorded a slight decline in project business, though, the volume of road transports, however, increased, and in the sea freight sector, an upswing is noticeable, too.

Nevertheless, Valentin Dragu plans to focus Militzer & Münch Romania on transports that have proven successful for his company: “We expect trade within Europe to intensify next year, which will open up many opportunities for us. Therefore, we are now working on further expanding our transport business and trade relations in this direction – and hopefully soon with the vigorous support of new team members!”

Sri Lanka: stability in challenging times

Since it was founded in 2018, Militzer & Münch Sri Lanka has seen positive development, while also facing major challenges again and again. The team looks to the future with confidence.

Located on the west coast, the port of Colombo is Sri Lanka’s biggest container port; it is considered one of the most important logistics hubs in the region. Almost 6.9 million TEUs were handled here in 2020. Militzer & Münch Sri Lanka has its headquarters in the direct vicinity of the port. Benefiting from this central location, the Militzer & Münch country unit has successfully established itself in Sri Lanka’s logistics market over the past years. Today, it is a member of the Sri Lanka Logistics & Freight Forwarders Association (SLFFA), the association of forwarders and logistics providers.

Good results despite difficult conditions

For the year 2022, the twelve-person team again records good results. This is not to be taken for granted: beside the Corona pandemic, most recently, the ongoing economic crisis and its political consequences also affected the activities of Militzer & Münch Sri Lanka. Fuel shortages, bottlenecks in the power supply, and skyrocketing transport costs burdened the country’s logistics sector; many factories were forced to close.

“Of course, we are glad we can look back on a good year in Sri Lanka despite such adverse circumstances,” says Dilum Stembo, Managing Director of M&M Sri Lanka. “We are aware, however, that there are still challenging times ahead. We are constantly adapting to the changing circumstances so we can continue providing stable services to our customers.”

Focus on export business

In response to tighter import restrictions, Militzer & Münch Sri Lanka changed its strategy and focused on the export business. The main export goods include tea, rubber, and coconut, as well as products of the apparel industry. By concentrating on these exports, Militzer & Münch Sri Lanka was able to minimize the impact of the dollar crisis on its own activities, as exporters pay in US dollars, and shipping companies invoice in US dollars, too.

In order to reduce power consumption, electricity cuts of several hours a day can occur in Sri Lanka. To avoid a standstill of day-to-day operations during such long supply interruptions, the country unit invested in solar cells for its offices to reduce its dependence on the power grid.

These are challenging times for the country’s economy, but of course equally so for local people. “We are deeply committed to helping here,” says Andreas Löwenstein, Regional Managing Director Asia / Far East at Militzer & Münch. “In view of the high inflation, we are accommodating our employees financially.” Dilum Stembo confirms: “Not only the company as a whole but also the staff had to overcome many obstacles. We took efforts to support our staff – also emotionally. I am convinced that it has helped them at least to some degree”

Given the current situation, the course taken has proved successful for Militzer & Münch Sri Lanka, and the country unit has been able to maintain its stability. Says Andreas Löwenstein: “We plan to increase our activities to and from New Zealand, Australia, and Southeast Asia, as well as to and from the USA and Canada. We are confident we will cope well with future challenges.”

Top position in the Mediterranean area: Militzer & Münch Tunisia

The Militzer & Münch subsidiary in Tunisia was founded over 25 years ago. Today, about 100 employees work for M&M Militzer & Münch Tunisia. Their core business: road transports from and to France, Italy, and Germany.

Militzer & Münch Tunisia has its headquarters in the port city of Radès, just a few kilometers southeast of Tunis, the capital. Additional branches operate in the port cities of Sousse and Sfax, as well as at Tunis-Carthage International Airport. Air and sea transports are an integral part of the product portfolio, but the Tunisian country unit’s biggest demand is for road transports; with the customers mainly coming from the textile, automotive, raw materials, and manufacturing industries.

An expert for Tunisia’s logistics market

Saber Boussada has been Managing Director at Militzer & Münch Tunisia for almost three years; he is at home in the transport industry. He had previously held various positions at an international freight forwarding company for more than 15 years, and has been Managing Director for more than ten years now. During this time, Saber Boussada got to know the Tunisian market very well: “Tunisia is a small country, and there’s a lot of competition among logistics service providers. In our day-to-day work, we are repeatedly confronted with the intense competition in the market here, and it depends on our performance and our range of services whether we can hold our ground,” he says.

Under his leadership, the country unit has in fact been able to hold its ground very successfully so far: Militzer & Münch Tunisia has achieved a significant profit increase since he joined the company, and the team is very optimistic about the further development of Militzer & Münch Tunisia.

Passionate about logistics

“What unites all Militzer & Münch employees is the enthusiasm for fulfilling customer wishes and demands with tailor-made solutions. Delivering goods to their destinations across the widest range of distances and on international routes is our passion”, is how Saber Boussada sums it all up. “Militzer & Münch Tunisia has secured a strong position in this challenging market. I am proud of this commitment, and I am happy to be part of the Militzer & Münch family!”

Turning challenges into opportunities

Despite the fraught economic and geopolitical situation in 2022, the Militzer & Münch country in Turkey was able to close the year successfully – and the company has ambitious plans for the future.

In 2022, the Militzer & Münch team in Turkey demonstrated that difficult times also offer opportunities. The country unit had to cope with challenges such as the aftermath of the Corona pandemic, increased freight costs, and supply chain bottlenecks. Added to these were the negative development of the Turkish economy, which led to major trade imbalances, and the situation in Ukraine.

Yet the team took the right measures in time. “Thanks to our strong position in Turkey, it was easy for us to adapt to the requirements, thus turning disadvantages into opportunities,” says Ender Atat, Deputy Managing Director at Militzer & Münch Turkey. Alex Sandalcidis, Deputy Managing Director at Militzer & Münch Turkey, adds: “We defined new strategies and introduced new structures on different routes and with different transport modes so that we were able to still meet customer requirements

Militzer & Münch Turkey transports a variety of commodities, including textiles, automotive products, industrial goods, oil and gas equipment, and chemical products. Road haulage accounts for the largest percentage among the transport modes – but sea and air transports are also developing well. Thus, a few months ago, the team restructured the sea freight department in Istanbul in response to increasing requests from customers and partners. Combining carriers is becoming increasingly important, and the staff’s expertise in intermodal and multimodal solutions offers significant benefits to customers.

“Logistics is a people business, and that’s why we have started to invest more in people,” says Cem Ulusoy, Managing Director at Militzer & Münch Turkey. “Our plans for the future include personnel expansion, the reinforcement of our sales and marketing departments, more investment in overseas sales activities, and further steps to strengthen our role in intermodal and multimodal transports.

” Plans are also in place to further expand the project logistics segment and to cooperate even more intensively with the Militzer & Münch Group and overseas agents as well as with partners in those countries where Militzer & Münch is not represented.

The company will also continue investing in digitalization and, in 2023, launch a new IT-based system that will offer more transparency in planning future projects.

A strong location of high potential

Whether capacities, energy prices or personnel costs: for the airfreight industry, the Corona pandemic was not without consequences. At present, it is still virtually impossible to make any long-term plans. In times of uncertainty, however, there are also some constants – like Frankfurt Airport, which has maintained its strong position as a major cargo hub in Central Europe for many companies. Including for Militzer & Münch.

 

M&M air sea cargo GmbH has an office directly at Cargo City South, Frankfurt Airport, where 15 employees work to serve customers; and the service goes far beyond standard freight: the team primarily handles dangerous goods shipments, valuable cargo and GDP (Good Distribution Practice) compliant transports for pharmaceuticals, which are subject to specific requirements, for instance with regard to refrigeration.

Santino Hormuth has been working in the logistics industry for 15 years and has been managing the branch of M&M air sea cargo GmbH at Frankfurt Airport for just over a year. Transports according to GDP guidelines have characterized his work from the very beginning, as immediately after he joined the company, certifications in the GDP area were already taking place. “That was rather challenging for me – after all, I was familiarizing myself with the internal structures, the work processes, and my colleagues at the same time,” he recounts. “Not least thanks to the excellent cooperation on the team, we passed the certifications successfully and have since been working on boosting GDP transports as a product in our portfolio and expanding our customer base in this area.”

Special, in many ways

In 2021, the air freight volume at Frankfurt Airport was around 2.3 million tons, the highest amount of cargo handled at any German airport. Europe-wide, Frankfurt Airport is one of the ten largest airports.

Santino Hormuth appreciates his workplace and is aware of its importance: “Frankfurt Airport is a magnet for companies, an important location for science and education, and one of the biggest workplaces in Germany. It is also the Lufthansa home base and the leading cargo hub in Europe. This gives the airport a very special position also for Militzer & Münch,” he explains. “Moreover, our location directly at the airport is definitely of competitive advantage for us: we are virtually in the middle of the action, and can act fast.”

Speed is the order of the day

Speed plays a crucial role in the handling of air freight projects. In most cases, orders are urgent and need to be handled efficiently and swiftly. In this respect, Militzer & Münch benefits from its decades of experience and presence on the market, as well as from well-practiced teams. This allows for short decision-making paths with a minimum of bureaucracy – and that way, even particularly urgent transports become routine tasks. Santino Hormuth’s team regularly handles just-in-time shipments for automotive suppliers, transports engines and other parts for the air freight industry, and was recently responsible for the transport of equipment for the World Cup in Qatar from Frankfurt to Doha.

Santino Hormuth’s goal for 2023 is to further increase Militzer & Münch’s freight volume at Frankfurt Airport, the number of key accounts, and of existing customers. To this end, among other things, there are plans to restructure the sales department.

“We are still facing tense times. But in my year so far with Militzer & Münch, I have experienced how informal and at the same time professional the cooperation is here at the Frankfurt site and across all branches. Therefore, I am sure that we will successfully master this phase.”

Seasons greetings

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.