Logistics at AMAG
The secret behind the company`s smooth-running logistics management
Logistics is a crucial link between AMAG’s production activities and the subsequent processing of sheets and plates by its customers. But what exactly does this complex field involve? And how have its processes and technologies changed over the last decade and a half?After its privatization, AMAG focused on its core competencies of casting and rolling. In 1996, AMAG founded Speditionsservice Ranshofen GmbH (SSR) in partnership with the German corporate group Preymesser with the aim of maintaining its high standards of professionalism in its supply chain.
From the outset, AMAG has held a 25.1% stake in the joint venture SSR. This made it possible to separate its factory logistics and delivery logistics from its core activities. The combination of SSR’s longstanding expertise in the logistics industry and its close links with AMAG presents unique advantages for our customers:
- Both companies engage in continuous improvement processes regarding packaging
- High-quality load restraints tailored to aluminium transport
- Loading method optimally adapted to highly sensitive products and surfaces
- Seamless photo documentation of loading and load-securing process
- Integrated process from post-production goods provision to delivery at recipient
- Minimal damage rate throughout the entire logistics chain
- Reliable delivery on schedule
Warehousing and industrial logistics
Over the last 15 years, AMAG has expanded its logistics spaces and renovated from top to bottom. While the original halls were still largely used for storage, picking and packing, the plans for the new premises took account of the requirements of modern logistics processes to cope with significantly higher throughput.In addition to order-specific production, the company also produces goods that have not yet been assigned to a specific customer and/or have not received technical or commercial approval. Despite this, its inventory turnover ratio is kept just below 1. For this reason, it would no longer be accurate to say that AMAG has warehousing activities in the conventional sense. However, it is clear that customers also benefit from these streamlined processes across all other product groups, as AMAG guarantees flexibility and short delivery times while also generating price advantages.
Example: Shipping coils for the automotive industry
SSR receives the fully packaged coil from the production specialists at the defined handover point. An initial quality inspection is then conducted to check for any damage to the packaging. Goods are held in the finished goods warehouse until assigned to a shipment by the SSR scheduling team. SSR acts with autonomy in carefully selecting reliable haulage firms that specialize in transporting goods to the respective recipients’ countries in Europe. A time-window control system ensures that shipments are processed smoothly in accordance with customer requirements using either standard trucks or heavy-duty dump trucks. Ensuring that loads are professionally secured is a high priority in Ranshofen. Employees undergo regular training in optimized loading methods. Photos are taken to document each shipment. SSR takes account of delivery schedules, arrival times and time-window bookings to ensure that customers receive their goods reliably and exactly on schedule. In addition, SSR is integrated into the AMAG IT system, which makes dispatch documentation available in real time.
Domestic transport
In 2008, some trucks had to be loaded in uncovered areas outdoors. However, following the construction of two new logistics halls, all shipments can be safely loaded in dry, covered areas. From the time goods are loaded onto trucks in Ranshofen to their arrival at the customer’s site, AMAG’s logistics specialists work in conjunction with SSR to manage the entire process chain - for shipments to destinations throughout Europe. Thanks to its experience and its close ties to both its customers and the production teams, SSR is able to deliver on schedule even in challenging times. Over the last 15 years, there have been several occasions in which transport capacities were fully exhausted or borders were closed due to events such as the pandemic. In such situations, however, our tightly integrated logistics processes have proven a significant advantage for our customers.
Ocean transport and container loading
In the past, shipping containers were little more than a black box: from the time they left AMAG’s premises, neither the sender nor the recipient had access to any details about their location. Modern technology, however, has delivered significant improvements and added transparency in this regard. All ocean transports that leave AMAG’s site in Ranshofen are prepared by SSR in a logistics hall and loaded absolutely dry into a waiting container. All such container loading activities are carried out with an 18-ton electric forklift truck adapted for precisely this purpose, ensuring that goods are loaded securely into containers. A 45-ton container stacker then loads the containers precisely onto the relevant truck. Once again, properly securing loads is a decisive factor in ensuring that goods arrive with the customer in pristine condition. Trackers are installed in containers on routes subject to significant climatic fluctuations or particularly high mechanical stresses. These devices measure and record air humidity, temperature, acceleration forces and other parameters to reliably document potential impacts during transport. Customers can access the AMAG SMILE (Shared Material Inventory and Logistics Execution) web platform at any time to track their shipment’s progress, inspect the recorded parameters, and view shipment and quality-related documentation. If any problems should occur during transport despite the company’s minimal damage rate, this data can be analyzed immediately to identify the causes. This makes it possible to find and swiftly implement permanent, high-quality solutions to any systemic problems.
Rail transport
The AMAG site’s direct connection to Austria’s public rail network is growing in importance in the context of AMAG’s Net Zero Strategy and efforts to reduce road transport. Since 2008, the volume of rail freight has increased by 32% to over 180,000 tons per year. In addition to maintenance activities, such as repairs to bridges, the Ranshofen site has required significant investment over the last 15 years to expand its rail infrastructure.As the operator of the sidings, SSR takes care of day-to-day sidings operations. This includes assigning incoming and outgoing wagons to the relevant loading and unloading areas. In addition, SSR unloads all wagons delivering primary aluminium and rolling slabs. SSR is an important project partner for AMAG in new rail-related projects, as it seeks to increase its rail-based logistics operations.
Customs
Customs procedures have become more and more complex since 2008. The increasingly demanding requirements are managed through high levels of IT integration and direct interfaces with official customers declaration systems.Today, SSR has its own internal customs department as well as integrated IT infrastructure to ensure it can clear customs efficiently and independently. This way, SSR lays the foundations for professional, reliable and swift processing of all incoming and outgoing third-country transports. This represents added value for all site-management companies, suppliers and in particular for AMAG customers, as SSR possesses highly specialized expertise and can keep processes short. For example, SSR can take care of all import customs clearances for customers in Switzerland. This means that goods are processed as swiftly as possible at the Swiss border and provides outstanding customer service for AMAG’s customers.
IT systems
In recent years, IT systems for warehouse management have been rolled out for SSR. The benefits of integrating SSR into AMAG’s IT landscape are obvious: for one thing, it increases quality and security throughout the entire process by providing consistent, complete data. This in turn ensures seamless, real-time monitoring of goods flows. For another thing, it increases the speed and flexibility of goods processing by reducing waiting times for trucks and enabling shipments to reach customers more swiftly. It also enhances cost and resource efficiency by cutting staffing requirements and material input while optimizing process design.At AMAG, logistics is so much more than just a link between production activities and our customers. It is the backbone of a smooth operation, ensuring that products reach their destination on schedule and in pristine condition, in keeping with the motto: “The best logistics processes are the ones you don’t even notice.”
Timeline:
1996: SSR founded
2010: SSR logistics center built
2011: ISO 14001 certification
2012: AEO certification;Logistics hall H02 opened
2017: Logistics/crane hall H03 opened
2018: 45-ton capacity coil trailer purchased for internal coil transports
2019: 25-ton forklift front loader purchased for unloading rolling slabs
2020: 18-ton electric forklift purchased for loading containers
2021: PV system installed on the main office building
2022: Logistics hall H08 opened
2024: TISAX certification