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More than just postal services: Post Luxembourg expands its contract logistics business.

Government-owned Post Luxembourg is the country's leading provider of postal and telecommunications services and is further expanding its core business to be in the best possible position for the future. The company is creating room for further growth with the addition of contract logistics to its logistics business. The new logistics facility is located in a former cargo center – where the material flow is controlled by the LFS.wms warehouse management system from the Ehrhardt + Partner Group (EPG). In future, EPG's International Shipping System, LFS.iss, will also be used for efficient handling of all shipping logistics.

Flexible growth with LFS.wms.

In times of digital communication, postal service providers are looking for opportunities to survive on the market in the long term. Post Luxembourg, for example, is creating another pillar within its portfolio of services by the addition of a contract logistics offering. "The strategy is to continuously develop our logistics activities as the basis for further growth. The project has been very exciting for us, because we had to implement a WMS on a blank page – without any existing customer or known requirements – and set up a whole warehouse," says Achim Taylor, Logistics Director at Post Luxembourg. "Bringing EPG on board has given us a strategic partner who is always there to advise us with expertise and years of project experience in logistics." The warehouse management system therefore needs two primary characteristics: Flexibility and variability.

 

Site with potential

The Luxembourg-Findel site has excellent connections to road and air transport infrastructure and is a strategically important location in the country. In the 6,000 m² warehouse center, alongside contract logistics with LFS all parcel shipping from Asia to Europe is also organized with software developed in-house – expansion is already planned. The parcel volume has risen to over 50,000 parcels per day within a year. The software handles all management of incoming goods and outgoing orders. Customers are primarily Chinese companies that are accelerating their entry into the European market. One unusual feature is that the items are already consolidated in China and arrive in Luxembourg as big packs.

"From the outset, Post Luxembourg has worked very independently and flexibly with LFS.wms," says Markus Linkenbach, Head of Customer Projects and Project Manager at EPG. "The team set up new clients on their own and support is almost unnecessary." LFS.wms now manages a total of nine customers, some with very different products and order quantities that vary from day to day. The demands for flexibility of the warehouse management system are therefore high.

 

The LFS.iss stand-alone shipping solution for greater efficiency

Post Luxembourg also decided to introduce LFS.iss, EPG's shipping software, to optimize shipping and to be able to act more quickly. The integrated shipping system plans shipping shortly after receipt of the order and then assigns the routing code to the shipping service provider. LFS.iss also generates proof of delivery for each specific parcel delivery service. The Post Group will therefore benefit in future from using a single system for all logistics tasks. The company also plans to use LFS.iss in the EPX (Ehrhardt + Partner Xtended) private cloud. The future of the company's contract logistics is therefore guaranteed.

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