The new distribution center

20.4.2021

At the beginning of this year we established our first company in Hungary. Geis Logistics Hungary Kft. will start operations with a logistics project in October. Our new Hungarian team will operate another supply and distribution centre in Budapest for our long-standing customer Knorr-Bremse Systeme rail vehicle systems.

New

Logistics project in Hungary

Our collaboration with Knorr-Bremse began exactly 15 years ago, when we took over in-house handling at the Munich plant and set up an external warehouse. Now Knorr-Bremse is planning a new distribution centre near its Budapest plant with the aim of optimising the supply chain. As a long-standing service provider, we were awarded the contract for it.03

"Our longstanding cooperation and partnership with Geis as well as our trust in the company and the people involved played a part in the awarding of the contract," says Thomas Rappl, Head of Supply Chain Management at Knorr-Bremse Systeme rail vehicle systems.

The challenge of lockdown

Preparations for the project started at the beginning of the year in the middle of the Corona lockdown. "Whether in relation to starting the company, finding a building or recruiting staff, we faced huge challenges at every hurdle because travel was virtually impossible," says Erik Lassen. Together with Joannis Tsilivarakos, he is the Managing Director of Geis Logistics Hungary. "Despite all the obstacles, so far we have been able to implement our plans. Among other things, we have already signed the lease for a suitable logistics centre," explains Joannis Tsilivarakos.

The new building is currently being built in a logistics park on the Budapest motorway ring road next to the airport. Located just 17 kilometres from the plant, around 100,000 square metres of logistics space will be created over the next two years, of which we will initially use 15,000 square metres. For an optimal material flow, we will equip the property with conveyor technology for small parts, a paternoster warehouse, a crane system for particularly heavy goods and a semi-automatic narrow-aisle stacker system that automatically guides the forklift drivers to the next storage location with the help of a navigation system.

Comprehensive tasks

01From the warehouse we will supply several production plants and ship goods to customers all over the world. Our tasks will include the following:

Goods inwards from external suppliers. We will ensure 100% inventory control and randomly check the material quality for dimensional accuracy, surface condition and pressure resistance.

  • Storage, commissioning and, if necessary, consolidation of complete systems.
  • Packing of the goods – including special packing for air and sea freight.
  • Goods outwards for worldwide shipping, for example to Asia and North America.
  • Customs and returns management.

We will take on these tasks right at the start, with around 140 employees working in two shifts, six days a week, and work directly in the Knorr-Bremse warehouse management system.

"We are delighted that Knorr-Bremse has once again placed its trust in us," says Dr. Johannes Söllner, Managing Director of Geis Holding. "We are doing everything we can to get the project off to the smoothest possible start."

"The implementation of the logistics centre in Budapest is another cornerstone in the overall strategic alignment of our supply chain. We are delighted to be taking this step together with Geis," explains Thomas Rappl.

Info Box – Knorr-Bremse
Knorr-Bremse is the world market leader for braking systems and a leading supplier of safety-critical subsystems for rail and commercial vehicles. The company's Rail Vehicle Systems division equips local and long-distance rail vehicles with highly sophisticated products. In addition to braking systems, these include intelligent boarding systems, air-conditioning systems, energy supply systems, control components and windscreen wipers, platform screen doors, friction material as well as driver assistance systems and control technology.

Good prospects

Hungary's economy is experiencing healthy growth. With the exception of Corona-dominated 2020, it has averaged over four percent annual growth since 2014, making Hungary one of the fastest growing economies in the EU. Experts expect the economy to pick up again this year.02

The foundations for this are already in place: The country has a high level of education and a well-developed infrastructure. "Hungary has been a focus for us for some time," says Managing Director Jochen Geis. "The country represents the ideal extension to our Central European network, and not just because of its location." The network currently includes Luxembourg, Switzerland, Germany, Poland, the Czech Republic and Slovakia, and now also Hungary to the south.

"With the establishment of our first Hungarian subsidiary and the provision of new logistics services for Knorr-Bremse, we now have an anchor project on the ground," explains Managing Director Hans-Wolfgang Geis. "In the next few years, we also want to gradually become active in Hungary with our other Road Services and Air + Sea Services divisions."

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