Striking Turkey message from the German giant: The heart of the supply chain is in their hands

In the global crisis caused by the Kovid-19 epidemic, many sectors such as pharmaceuticals, automobiles, electronics, health, textiles, agriculture and energy were under pressure due to disruptions in production in China and problems in international logistics. In addition, the vulnerabilities of complex global supply chains emerged with the epidemic.

The crisis in question was also an opportunity to reset a system based on old processes in the supply chain. Thus, many international companies began to restructure their supply chains.

Logistics companies also started to reposition themselves in order to keep up with this restructuring and to provide better service to customers. However, the crisis caused by the Kovid-19 outbreak presented a great opportunity for Turkey to reposition itself in the global supply chain.

Turkey’s strength in products and production, highly skilled workforce, labor costs that remain low compared to Europe and the USA, offered a geographical advantage to very large markets, especially European ones.

Logistics companies have also started to reconfigure themselves to keep up with the restructuring in their supply chains and to serve customers better.

One of these companies is Rhenus Logistics, a German logistics company operating in Europe, Asia and South America.

The company, which has approximately 40 thousand employees, made a turnover of 7 billion euros in 2021.

The giant German company sees Turkey as the heart of its supply chains, evaluating that close production centers and high availability of logistics have become increasingly important after the Kovid-19 outbreak.

Rhenus Logistics, a family company operating in the logistics sector since 1912, operates in 52 countries. The company, which has approximately 40 thousand employees, made a turnover of 7 billion euros in 2021. This year, it targets a turnover of 8 billion euros.

Rhenus Logistics CEO Tobias told Bartz, AA correspondent that Rhenus is a family company that has been operating in the logistics industry for more than 100 years.

Stating that they reached a turnover of 7 billion euros in 2021 and that they have increased their investments in recent years, Bartz emphasized that they serve their customers in 5 areas: land transportation, air and sea transportation, storage, port and automobile, and that they will expand their scope in logistics globally with organic growth.

Tobias Bartz “We will probably reach 8 billion euros in turnover in 2022. And of course our strongest installation will be in Europe and Asia.” said.

Stating that they had difficulties in order to ensure that customers’ products reach the necessary places in the Kovid-19 epidemic, Bartz explained that they worked by remodeling their logistics operations during the period when the supply chain was disrupted at certain times during the epidemic.

Rhenus Logistics CEO Tobias noted that problems still persist in the supply chain.

Bartz, “No one knew what was going to happen at the start of the Covid-19 pandemic and it was extremely worrying, only months later, we saw some light at the end of the tunnel. At certain times the supply chain disappeared. So we are unsure where the income will come from or pay for our staff and provide a livelihood for them. We were not… he said.

Stating that the epidemic in question also shows that just-in-time delivery cannot be trusted and that there should be critical stock in warehouses, Bartz said, “It doesn’t have to be in your factory, but the main stock you really need to produce needs to be within reach.” said.

“Turkey is at a strategic and critical point”

Bartz stated that the uncertainty in the supply chain during the epidemic forced companies to move their production sites closer to the countries they are in, and continued as follows:

“We see certain factories closing and opening in different places, logistics accessibility becomes more and more important. This is the reason why we have invested heavily in Turkey in the last two years. Between Asia and Europe. To ensure that Turkey’s supply chains can really work, production is stable and reliable. It is at a strategic and critical point for

Stating that they have been serving in the Turkish market for many years through their partners and agencies, Bartz said that they have been investing in the country for 3 years as a company. Bartz stated that they have connected the points where they can connect Asia to Europe with investments in Turkey and continued as follows:

“We see the future in Turkey, not only because it is an exciting manufacturing and commercial market in itself, but also because it is at the heart of other supply chains. We are looking to connect Kazakhstan, Azerbaijan, Georgia with Turkey. In maritime or land transportation, Turkey is the most suitable place. Geographically in the right place, with a strong and highly skilled workforce in product and production. Turkey in the geographically right place, with a strong and highly skilled workforce in product and production.”

Pointing out that the people in Turkey are talented, culturally open and connected with Europe, Bartz noted that the country’s infrastructure is also good logistically.

Bartz, “Turkey is clearly in good condition in terms of infrastructure. The road supports the structure of the railway. It is something that we benefit a lot from. Our hope is to benefit from this human resources market in Turkey, and we want to add these people to our global network.” said.

Stating that companies are trying to spread their risks in Asia and also globally, Bartz said, “Turkey is one of the countries that benefit the most from the change in supply chains in terms of logistics. Reliable, talented workforce, production expertise, people invest on this stability. The other country that benefits most from this change is India.” he said.

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