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Results are achieved with smart logistics

1.2.2017

 

Results are achieved with smart logistics

Results are achieved by means of purchasing and logistics management. HUB’s growing clientele has noticed that tying your capital to a stock with a slow turnover rate is not wise.

-          “Our fastest stock turnover rate is more than 300 times per year. The average stock turnover rate of a Finnish engineering shop is two to four times per year. What will you use as a competitive edge if your capital is tied to your stock? You will surely fall behind if your competitor is able to manufacture the same product with one-tenth of the working capital. This is a fact Finns have not fully grasped yet, which is why we have plenty of work to do”, explains Aki Jumppanen, the managing director of HUB Logistics.

HUB Logistics puts exceptionally large sums towards product development and investments.

-          Investments in product development amount to around 8% of its net sales. Investments in the past few years have been particularly substantial. In January, a new logistics centre of 21,000 square metres was completed in Hakkila in Vantaa – it is a 50,000-item automatic warehouse that collects goods twenty times faster than humans. The investment cost around EUR 20 million.

Rewarded growing company

In 2008, HUB’s net sales were less than four million euros. The net sales have increased tenfold in less than ten years. HUB’s growth started in earnest when Aki Jumppanen became the managing director. Jumppanen, who used to be employed by Perlos, learned at plenty at Nokia about production efficiency, LEAN expertise and how you can get the most out of work stages and processes with the help of work research and method development.

At this point in the story, we should let the award jury of the Finnish Association of Purchasing and Logistics (LOGY) have its say. In 2016, the jury named HUB Logistics the Logistics Company of the Year:

“HUB Logistics has launched new kinds of logistics services by expanding the traditional logistics outsourcing services to the management of purchasing, capital and supply chains. The company has been a trailblazer in the field of inhouse logistics for a long time, and it continuously develops new, innovative concepts”.

A veritable department store!

HUB’s customers come from the vehicle industry, engineering shop industry, commerce and public administration, among other fields. The company’s largest individual customers include Finnair, Konecranes and ABB. HUB’s logistics services store and move a huge number of products and services.

-          “Gas bottles, transformers for subways, a huge number of spare parts of different types, crane components, IT hardware, SIM cards”, Jumppanen lists.

Jumppanen says that the costs of HUB’s logistics services are around 40% lower than the costs would be if the customers took care of their own logistics.

-          “We have invested in the development of processes and automation. With our efficiency and price, we have won customers to whom we can offer all kinds of services starting from competitive biddings and purchasing. We can offer our customers major volume benefits in the purchasing of basic commodities”.

Decentralised organisation

HUB Logistics employs around 650 people. Around 50 of them work at HUB’s facilities abroad in Germany, Estonia, Poland and Russia. The organisation is literally decentralised: the company’s registered office is in Kerava, Finland, and it has facilities at more than twenty locations. The sales manager’s office is in Salo, Finland, the Production Manager is in Poland and the Managing Director is in Joensuu, Finland.

-          “Location does not matter; people’s expertise is what matters. Joensuu and the Science Park have proven an excellent location for us! We are able to offer a sufficiently challenging job and a good work environment. Stability is one of the area’s benefits; the employee turnover rate is practically zero”.

Recruitment and Academy

HUB continuously recruits new people. At present, the company needs new professionals in the fields of IT and industrial engineering, for example. HUB trains people constantly in work research, LEAN thinking and the utilisation of problem-solving tools, for example.

-          “HUB is not an IT company – our processes are very extensive and we need a human perspective in everything we do from IT to process expertise and customer relationship management. The work is done with top tools. In the current business world, being able to identify technological changes and act accordingly is a must”.

HUB is a company where competence is noticed.

-          “As the company is small, people can truly show what they can do and advance in their careers very quickly. In my opinion, continuous development of the work community is especially important”.

In addition to the salary, HUB uses a bonus scheme as an incentive. Furthermore, the HUB Academy was established last autumn. Sixteen promising employees were included in the first HUB Academy class. The training period of 18 months will offer them a new perspective and competence from outside HUB. The goal is for the people who have completed the training to be able to work in management positions in the future.

FACT: HUB Logistics