HK/Dematic acquisition is complete

Dematic NA’s chief outlines customer benefits of newly merged companies at logistics conference.
By Bob Trebilcock, Executive Editor
September 21, 2010 - MMH Editorial

Park City, Utah: The HK Systems shirts were changed to Dematic on Tuesday at Supply Chain Reset, the annual logistics conference sponsored by HK Systems, newly acquired by Dematic.

John Baysore, president and CEO of Dematic North America, described part of the thinking behind the acquisition as well as some of the potential benefits for end users during remarks on Tuesday morning.

The genesis of the acquisition came out of a series of off-site strategic planning sessions last year. At those sessions, Dematic developed an approach to the market it has dubbed 4 walls and 2 windows. The concept is that Dematic solutions can control the material handling activities within the four walls of the plant, warehouse or distribution center; those systems will also have visibility through two windows into the supply chain of upstream and downstream activities, such as transportation events or customer demand, that will impact the processes inside a facility.

“We want to be able to do everything that goes on inside a facility,” Baysore said. “At the same time, we identified our shortcomings as a solution provider and asked how can we add the products we need to get to where we want to be. That led us to HK.”

As Baysore explained, HK Systems was a company with best-in-class solutions for the inbound and pallet handling window while Dematic had best-in-class solutions for the outbound case, tote and piece handling side of the window. Both companies had strong software offerings. “We believe our innovative products and solutions will be stronger,” he said.

Going forward, Baysore said that Dematic will continue to invest significant R&D resources into the after-market, developing maintenance and parts solutions that will make existing products last longer.

In addition, service parts for both companies will be shipped out of logistics hub in Memphis. The combined companies will also now have regional and resident service coverage to 55 cities, which allows quick response to some 1,800 installed systems.

“In this instance, we believe that one plus one will equal more than two for our customers,” he said.



About the Author

Bob Trebilcock
Executive Editor

Bob Trebilcock, executive editor, has covered materials handling, technology and supply chain topics for Modern Materials Handling since 1984. More recently, Trebilcock became editorial director of Supply Chain Management Review. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

A new Government Accountability Office report on the effects of changes to truck driver hours of service rules has sparked a war of words between the American Trucking Associations and Federal Motor Carrier Safety Administration, the arm of the Transportation Department that is in charge of making those rules.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in May dropped 10.8 percent annually to $92.7 billion, following a 6.8 percent annual decline to $93.3 billion in April.

Carloads headed down 2.5 percent annually to 286,660, and intermodal containers and trailers remained on a growth path, up 2.3 percent to 270,952.

Rumors of transportation and logistics titan UPS acquiring Chicago-based transportation management services provider Coyote Logistics for $1.8 billion have become a reality, with UPS announcing today that the deal is now official.

About the Author

Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484 or email [email protected].

Comments

Post a comment
Commenting is not available in this channel entry.