Kruitbosch and Westerman ensure supply chain integration with data

Kruitbosch and Westerman ensure supply chain integration with data

Source: Logistiek.nl / Author and photos: Mark Dohmen
https://www.logistiek.nl/195884/kruitbosch-en-westerman-borgen-ketenintegratie-met-data-logimatch-4

Recently, Kruitbosch and Westerman Multimodal Logistics extended their partnership for another five years. As part of the new agreement, the partners will continue to take innovative steps together in the coming years. “Steps that benefit not only us but also our dealers,” says Bert Nieuwenhuis, Supply Chain Planning Manager at Kruitbosch. “Additionally, we are jointly further shaping our sustainability objectives.”

Westerman provides a wide range of logistics services for its customers and strives to integrate them as much as possible. In the bicycle industry, this supply chain integration is the most advanced, according to sales director Bernard van Dieren: “We offer inbound transportation to our warehouse in Nieuwleusen, where we have a total of 120,000 square meters of storage space and our own inland terminal. For bicycle assembly, we have our own workshop with technically skilled personnel. Additionally, we handle dedicated distribution; in the Benelux and Germany, we use our own fleet.”

Kruitbosch is one of the clients in the sector that benefits from this comprehensive concept. The company originated in bicycle accessories and parts but has been focusing on supplying complete bicycles since 2006, with the brands Cortina and Alpina. “That expansion has paid off,” says Nieuwenhuis. “In recent years, we have experienced significant growth. We now have over 260 employees and, from our location in Zwolle, we supply dealers with no less than one million packages of accessories and parts, as well as more than 100,000 bicycles annually.” These bicycles are now managed within their own business unit.

The collaboration with Westerman – ranked 53rd in the Top 100 Logistics Service Providers 2023 – dates back about twenty years and initially began with the storage and distribution of bicycles. Today, the logistics service provider supports the entire supply chain.

“We wanted to have more control over our logistics processes and the supply chain. Westerman completely takes that burden off our shoulders,” says Nieuwenhuis. “Take the Bosch components for e-bikes, for example. Based on our purchase orders, we send a proposal to Westerman, where the necessary components are then picked and shipped to one of our assembly partners. Transparency is crucial, especially for these high-value components. Communication is direct, and we know exactly what to expect from each other.” “We have also made concrete agreements with the insurer together,” adds Van Dieren. “Every step has been carefully mapped out, precisely documented, and secured in an SLA.”

Redistributing Distribution

The partners also know exactly what to expect from each other in other areas, such as sustainability. Nieuwenhuis explains: “Last year, we took a close look at our transport movements to dealers. We examined whether it was really necessary to visit a dealer twice a week and deliver only one bike each time. As a result, we worked with Westerman to redesign the distribution process.” “We considered possible preferred delivery days and a new, more efficient division of the country into delivery zones,” adds Van Dieren. These efforts led to a reduction of no less than 2.700 stops within five months.

The fact that Westerman provides logistics services for multiple companies in the bicycle industry is an additional advantage, says Van Dieren. “For example, we can easily scale our capacity up or down. And because we can switch quickly, the number of kilometers driven can be further reduced. In a strong partnership, the focus is always on achieving the best results for the customer. This way, we share synergies with Kruitbosch.”

What makes this collaboration innovative?

According to Van Dieren and Nieuwenhuis, the innovation in this collaboration lies in the deep supply chain integration. “Where possible, we eliminate unnecessary steps and reduce transport movements. This is only achievable through open and transparent communication,” explains Van Dieren. Nieuwenhuis adds: “That’s why we meet very frequently—daily on an operational level and every four to six weeks at the management level. These discussions enable continuous process improvements. For example, based on Westerman’s suggestion, we largely eliminated paper packing slips for our transports last year.” “For that to work, our systems need to be fully integrated,” Van Dieren explains. “We have invested significant time in data integration.”

“Where possible, we eliminate unnecessary steps and reduce transport movements.” – Bernard van Dieren

And the benefits go both ways. For Kruitbosch, it is essential that dealers can access all necessary information through the shipper’s dealer portal, as this increases sales opportunities. In collaboration with Westerman, a track-and-trace module was integrated into the Kruitbosch portal. “This has significantly improved service to our dealers. Our service department now receives 70 to 80 percent fewer calls regarding shipment inquiries,” Nieuwenhuis notes.

Investment in systems

To create the most efficient supply chain possible, the logistics provider also invests in its own systems. Westerman is increasingly utilizing business intelligence (BI) tools. For instance, a connection has been established with Google, allowing deliveries to align with the opening hours that Kruitbosch dealers have entered themselves. Thanks in part to these BI tools, delivery reliability has increased to over 99 percent. “The foundation of a strong partnership is trust—doing what you say and adhering to the agreements set in the SLAs. Data is essential in achieving this,” both partners emphasize.

Is there more to come?

With the new collaboration agreement, Kruitbosch and Westerman have also signed a statement of intent outlining further innovation priorities. “This mainly focuses on sustainability and digitalization,” explains Nieuwenhuis. “For example, we will use data from BigMile to measure and report CO₂ emissions. We’re also exploring new sustainable packaging solutions. The expertise and experience that Westerman has in this industry are a major advantage in this process.”

“Sustainability is being approached in the broadest sense of the word,” adds Van Dieren. “This includes sustainable working conditions and ergonomics. Last year, we developed a new packaging solution together with Kruitbosch—an important first step. Ultimately, our goal is to move towards a circular packaging system.”

Inventory optimization software

An example of further digitalization and data sharing is the implementation of inventory optimization software. “For our spare parts and accessories, we have been using Slim4 for several years. To gain better insight into inventory levels and improve management, we now want to deploy this tool for the planning of our bicycle business unit as well,” says Nieuwenhuis. “Currently, we share a forecast for a period of 10 to 12 weeks. This quarter, we aim to extend that to a minimum forecast of 12 months.”

The partners are also continuously exploring supply chain integration. “Our Cortina dealers frequently ask us to help address various challenges, such as reducing logistics movements and assisting with the direct delivery of new bicycles to consumers. To support this, we will soon launch a pilot project with Westerman, where bicycles will be prepped and made road-ready by Westerman. This initiative aims to reduce even more transport movements while maintaining the short lead times,” Nieuwenhuis concludes.