What is happening in the logistic and packaging industry at the present? How will it be affected by Brexit? What challenges must industry professionals overcome in the near future? To get an informed answer to these questions, we had an insightful conversation with Mr. Sorin Mitrea, Sales Manager CEE at Logistic Packaging.
Q: Europe is getting ready for Brexit. How will this event impact the logistics world, in general, and the activity of Logistic Packaging in particular?
A: For our customers in Great Britain, the impact will be at transactions level. Without a special agreement, taxes will apply and our capacity to work with UK based customers will be greatly reduced.
There are challenges even now, when Great Britain is still a part of EU. Ferry fees are high and they impact the overall shipping costs. In my opinion, packaging pooling companies will be hit the hardest. They not only rent packages, but ensure their circulation within the logistic loop. Thus, they will have take into consideration duty charges and new cross-border formalities in their operations.
At the same time, the transit time for shipping to and from the UK will be longer, as each truck must stop for customs inspections.
But, Brexit or no Brexit, business must go on. We have always found solutions to challenges and this is what being in business is about – overcoming difficulties by finding creative solutions. However, in my opinion, without a free trade deal between the EU and the UK, doing business in the United Kingdom will become more expensive for all parties involved.
Q: What are other important challenges the logistics and packaging industry has to face now and in the near future?
A: The two main challenges at the present are automation and digitization. There is a very strong trend in this direction, from the implementation of IoT systems to automated container handling.
Thus, package design must become compatible with these systems. For example, the latest models of Euro containers have struts and openings for handling by robotic arms. In the past the design of these containers was much simpler, with smooth lines and surfaces.
Also, the general business models change due to ecommerce. This means that logistics must work smoothly and seamlessly in order to fulfill the clients’ demands and expectations.
Q: Speaking about your clients, what are their top challenges that your company is trying to solve?
A: The main challenge is finding ways to optimize costs. This is also the mission of Logistic Packaging. Our customers present us with challenges that cannot be solved by products in our standard range.
We have to create products on demand in this case. There are many products that do not fit any container or pallet footprint, for instance. The solution here is product development: creating a fully tailored packaging solution for that specific product. I am proud to say that we are very strong in this aspect – we can design, test and manufacture customized packages for any kind of application.
Q: How does your company prepare to face the future demands of clients and of the market standards?
A: We are constantly internalizing the processes that help us develop tailor made packaging solutions. We have recently opened a textile dunnage factory in Arad, which is capable of delivering any kind of textile dividers: Tyvek, Spunbond, Evolon, ESD textile packaging and so on.
We are continually investing in research and development and we are growing our team of dedicated product designers. Our work philosophy is to maintain a constant contact between the client, the sales person and the designer. This improves communication and helps the information reach the designer without any adulteration or loss.
We are also testing various innovative materials and technologies that will help us create better and more competitive products.
Q: Finally, for all the decision makers reading this, what key reasons would you give them to choose LP as their packaging and logistic solutions provider?
A: At Logistic Packaging, we are always working on delivering the solution that solves the problem and answers the customer’s requirements for their projects. We don’t simply offer a static product portfolio.
We start each project with consultancy for a deep understanding of the client’s problem. We can always offer complete packaging solutions, from the container to internal partitions and accessories.
We are also very dedicated to maintaining an after sales relationship with our customers. This consists in service, help with the implementation of the new packaging solutions, and answers to their queries.