Clients value agreements

ÄP 26. aprill 2006, 00:00

Clients of logistics services say that the service is high-quality when the supplier fulfils the agreements agreed with the customer.

Rita Kurvits, purchasing manager of Andrese Klaasi & Dekoori AS says that a high-quality services are fast and simple solutions which are tailor made.

"Services should be offered at agreed place, price and time," adds Kurvits. "A pleasant partner is one who can find solutions in critical situations, for instance offer combined transportation or carry the load in 24 hours."

Non-quality service, on the other hand, means being late with the transportation and loading, rude truck driver etc.

Peeter Tamm, executive director of Zebra Infosüsteemide AS says, that service is high-quality when all the agreements with the service supplier are liable and fulfilled. "There are two main metrics for quality - correct load and transportation in time," adds Tamm. "These two are also the most complicated and cause problems regularly, there are problems with the load or the time daily."

Which is high-quality logistics service?

Quailty is reliability. Client must get exactly the service with all the conditions one has agreed with the supplier. Andres Seevri, manager of import and export of Getz Eesti AS.

Real-estate companies predict that there will not be built new warehouses for rent, even though there would be demand.

Sure, there will be new warehouses built but they are built buy the manufacturers not buy real estate companies for sale or for rent. There are especially demanded small warehouses, smaller that 1000 square meters.

"I think the situation is especially difficult for the companies which seek for quality warehouse 200-500 square meters with office space," says Ivo Martin, specialist of business real-estate of Ober-Haus.

Martin also predicts that the crisis will go deeper in the next 3-4 months because there are lots of companies who are interested in reorganising their manufacturing before summer. So they are looking for new opportunities at the moment.

The rise in demand means that there will be rise in the prices of renting. Atko Väikmeri, real estate agent of Pindi Kinnisvara predicts the prices of sale can go up up to 25% by the end of the first half of the year. The rise in renting can be up to 15%.

"The demand of high-quality warehousing for sale or rent will remain and rise," says Toomas Naska, real estate agent of Arco Vara.

Outsourcing spreads

Rise in reliability means that companies outsource more and more logistic services.

Tallinna Kaubamaja outsources logistics 100% to maintain risks and to focus on core business. But two years ago the situation was different, says Uku Peerna, the logistics manager of Tallinna Kaubamaja. "There was not a service supplier who could have offered full service at this time, today we have couple of them," adds Peerna. Tallinna Kaubamaja is going to choose a strategic partner in this autumn among them.

Andres Matkur, the executive director of Air Cargo Estonia says that habits of outsourcing have changed during last couple of years. Companies buy transportation services, there has been a rise in outsourcing warehousing and distribution.

"Even small companies are outsourcing warehousing services today, we had to seek for them couple of years ago," says Matkur. They usually need about 20-30 square meters of space.

The reason for changes is the development of enterprising and success of companies. "Companies have understood that it is possible to give some problems and risks to the logistics partner to handle," says Matkur. For instance, it is difficult to find warehouse personnel today.

One of the reasons for changes is that companies trust more their logistics partner. "Estonian companies concentrate more and more on their core business, there has been a rise in know-how and value of logistics and suppliers have expanded their services," names Janek Kivimurd, sales manager of BLS Eesti AS three reasons for changes of habits.

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