At the event, different segments of the logistics industry, stakeholders and solution partners made evaluations about the new period that entered our lives with the pandemic. It was pointed out that the Turkish logistics industry continues its services even in the most difficult processes, with a way that is rarely seen in the world, and pointed out that companies have increased their performance with new technology, capacity increase and systems.
DÜNYA Newspaper and Zer Center Services and Trade Inc. In the live broadcast of “The Future of Your Business with Zer”, organized by NBE Chairman of the Board Hakan Güldağ, with the questions of DÜNYA Newspaper Editor-in-Chief Vahap Munyar; Arçelik-LG Air Conditioning Sales Planning and Logistics Manager Murat Güven, Ford Otosan Material and Vehicle Logistics Leader Fatih Kılınç, Turkish Port Operators Association (TÜRKLİM) President Aydın Erdemir and Zer International Logistics Purchasing Manager Emel Candaş Uslu talked about the logistics industry.
ATTENTION TO THE IMPORTANCE OF ADAPTATION
● Arçelik-LG Air Conditioner Sales Planning and Logistics Manager Murat Güven, who stated that companies with a front-warning system in the pandemic have already released their goods and were not affected by the first wave, said, “A second wave came due to the closure of sub-suppliers. This wave was reflected as a cost to the manufacturer and the end user.” Güven stated that empty containers could not be returned when the containers could not be emptied in the target markets during the same period, and this increased the container prices. Such a life warns us that conditions may change in the supply chain, and companies should take a position to adapt their human resources, corporate culture and business model, and digital infrastructure accordingly.”
We need to understand the new generation
Stating that the expectations of the new generation are too high, Güven said, “Moreover, their expectations are more than the difference between the expectations of us and the previous generation. The new generation wants to add something to the world.” Mentioning that it is very important to understand new friends and change organizations for this, Güven said, “First of all, they adopt the new generation hybrid working model. There are also important studies on this subject by Koç Holding. In HR matters, Koç Holding embraces catching the new generation. The return to a more horizontal organizational chart in order to accelerate the decision-making processes forced us, but it forced us in a positive sense. The transition to horizontal has made the relationship with the customer one-to-one.”
WE DID NOT STOP FROM LOGISTICS IN THE PANDEMIC, WE STOPPED BECAUSE THERE IS NO DEMAND
● Ford Otosan Material and Vehicle Logistics Leader Fatih Kılınç, who noted that Ford Otosan did not actually stop due to logistics during the pandemic, said, “Both government units and other players were trembling over logistics. We actually stopped because of the lack of demand at that time,” he said. Pointing out that he continued his services even though the logistics were difficult when the works were opened, Kılınç said, “Sustainability is very important in the port part. Ships are growing in size in order to reduce emissions on a unit basis, and this time issues such as port infrastructures are starting to come to the fore. Stating that Ford of Europe plans an investment of 50 billion dollars for electric vehicles until 2026, Kılınç said, “Ford Otosan is also the commercial vehicle base of Europe. We are working in parallel with this. As Ford Otosan, we are establishing the first electric vehicle production facility including batteries. We also introduced the first electric vehicle in April of this year. In the next 5 years, the importance of sustainability will increase even more. In this transformation, the rest will lag behind logistics,” he said. Speaking about the chip crisis that emerged with the pandemic, Kılınç said, “The chips used in automotive are a bit old-style chips and low in volume. I know that the chip used in automotive at the moment is below 10 percent in the normal market,” he said. Kılınç continued: “Manufacturers want to move towards the field of new chips used in phones. It wants to get out of the old chip field used in automotive. Automotive side is trying to keep up with this situation.”
The new generation does not want to be a truck driver
Stating that many things have changed and become very technological in the new generation TIRs and tow trucks exhibited at the fair, Kılınç said, “It is very comfortable and the interior volume is very comfortable. The younger generation has little interest in driving, but driver academies are also being established. Efforts are being made to make driving attractive. Since we cannot find a driver, our costs are negatively affected.”
Stating that their total suppliers are over 1,200 and this number is over 600 in Europe, Kılınç said, “Also, each country has different dependencies regarding gas supply. The EU has started to take measures regarding this for a long time. Seasonal conditions will show whether it will be sufficient or not,” he said.
WE WILL NOW SEE THE WEIGHT OF SEA TRANSPORT IN TURKEY
● Noting that 65 percent of the product transported by sea in Turkey before the pandemic was at the level of 65 percent, Turkish Port Operators Association (TÜRKLİM) President Aydın Erdemir said, “About 90 percent of the total transportation in the world is done by seaway. We will now see the weight of the seaway in Turkey,” he said. Stating that Turkish ports are younger than ports of other countries, Erdemir said, “This is getting bigger every day.” Emphasizing that ports should grow with new investments, Erdemir said, “At least 50 percent of the capacity needs of our ports are due to the modernization of our existing ports.”
Idle investments should not be made, priority investments should be made
Stating that the growth needs of the ships come from the logistics economy, Erdemir said, “With the growing ships, savings are achieved and economy achieved,” he said. Erdemir continued: “Competitive advantage brings with it tremendous logistics solutions. Turkey’s growing need for ships is primarily in containers.” Noting that liquid terminals should also grow in scale, Erdemir said, “Moreover, large-scale vessels can now be docked at our new ports. We need to make investments, whatever our priorities are today, instead of all investments. And environmental issues came to the fore,” he said. Erdemir continued as follows: “The private sector in the railways is on the management side. It is not possible for the private sector to establish railways with thousands of kilometers of infrastructure anywhere. These are established by the public. So is the port. The most important duty of the state is to complete these infrastructures.”
Turkey is a critical country in global competition
Erdemir said, “Ports are something that will develop with Turkey’s trade with the West and East,” and that Turkey’s move in the last 20 years is also reflected in the ports. Noting that the Ukraine-Russia War showed that the global power competition has turned into a much more tense competition, Erdemir said, “Turkey is a critical country here. Turkey should determine its position very well here. Our entire industry will be affected by this global environment. If we are forced to another place on one side, we will have problems,” he said.
Mentioning that industrialists in Turkey have made very important investments for 30 years, Erdemir said, “However, we are still low in unit prices in exports. We need to take this to the middle levels as soon as possible. We are also anonymously a part of foreign policy, risks and advantages await Turkey here… But we will try to get advantages.” Erdemir continued as follows: “Moreover, with the digitalization in all ports, the appointment system has become widespread. With an appointment, you should push those who come before their time to wait in other places. Technology will prevent these waits.”
IN THE PANDEMIC, PRODUCTION WAS INCREASED IN SOME SECTORS, AND A DECREASE IN SOME SECTORS
● Logistics Zer International Logistics Purchasing Manager Emel Candaş Uslu, who stated that the sector was affected positively for the future in the pandemic, but negatively in the process, said, “While there was an increase in production in some sectors during the pandemic, there was a decrease in others.” Stating that everyone did not know what to do for a while during the pandemic supply process, Uslu said, “We provided information flow. There was also a chip crisis on the production side. There were also problems on the freight and oil side. We understood that when you move the smallest stone, it spreads to all other stones in a fragile way.
Prices do not fall before the pandemic
Emphasizing that the freight rates have increased very seriously and even the levels of 12-14 thousand dollars are seen, Uslu said, “Today, there are regressions. We are trying to take measures in case there may be a price increase for an unpredictable reason such as a pandemic at any moment.” Stating that there have been price increases for many reasons, Uslu said, “At the moment, it has started to decrease at the same speed. There are cost-independent reductions, oil not coming back but the freight started to come back. Maybe there is a recession period effect. It is coming back as there is no demand for this service at the moment. And I think these prices will come back even more. But I don’t think it will reach the contracted levels before the pandemic,” he said. Pointing out that those levels are not sustainable, Uslu said, “Especially, import freights will come back a little more for us and this course will continue. But we have understood that it is not right to make long-term plans anymore. It is necessary to set out with alternative plans. These prices will come back for us in the US and African markets,” he said.
The more we can transfer our business to sea and railway, the more advantageous we will be.
Saying that they use all transportation models together, Uslu said, “The more we can transfer our business to sea and railway, the more advantageous we will be.” However, Uslu, who stated that it is not possible in only one logistics area, said, “We must create alternatives for all such processes. Recently, we have commissioned the process for the shipments that Ford Otosan brings from Hungary via road to a very long distance railroad. Our goal here was driver availability and carbon emissions. We have created a serious alternative. It is necessary to constantly be open to innovations,” he said. Noting that they cannot reach the ports only by road under normal conditions, Uslu said, “We are in a position to receive service from private entrepreneurs here as well, we do not receive direct service from TCDD. Because they also provide the structural work, private entrepreneurs provide the organization side. Turning the work into a railway alone is not something that will start tomorrow. Of course, government support is needed. Supports such as supports to the exporter can be provided. At the very least, a subsidy for the links in the factories is needed. There may be some initiatives here as well,” he said. Uslu continued as follows: “You have to have a good command of data. Then the load consolidation becomes easier.”
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