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- Dräger boosts logistics with custom containers
Executive summary
Dräger, a global leader in medical and safety technology, faced significant logistics and production supply challenges during the consolidation of its production sites in Lübeck, Germany. To streamline operations, the company partnered with Utz Group, leveraging their advanced container solutions to meet stringent requirements. Through this collaboration, Utz Group supplied over 100,000 custom containers, enabling Dräger to optimize production supply logistics, improve efficiency, and align with comprehensive ESD standards. The result was faster production supply, reduced logistics complexity, and enhanced workflow performance.
The Client
Dräger, established in 1889, is a renowned international manufacturer of medical and safety technologies. The company generated over €2.5 billion in revenue in 2016 and employs more than 13,000 staff across 190 countries. To support continued growth and meet increased operational challenges, Dräger consolidated its production sites in Lübeck. This move aimed to integrate production and logistics for a streamlined supply chain but required an innovative and efficient solution to address their logistics needs and ensure compliance with stringent ESD requirements.
The challenge
The consolidation of Dräger’s production sites revealed operational inefficiencies related to container variety, logistics workflows, and production supply. Key challenges included:
Extensive container variety
Previously, Dräger utilized more than 75 different container types from various manufacturers, complicating logistics handling and increasing inefficiencies in the supply chain.
Stringent ESD compliance requirements
Around 80% of Dräger's production areas were ESD (electrostatic discharge) protected zones, necessitating containers with precise contact resistance to meet the company's high standards for safety and compliance.
Logistical complexity
With over 4,000–5,000 daily picks and a high level of manual operations needed to adjust components to production requirements, inefficiencies increased labor costs and reduced logistic performance.
High standards for durability and capacity
Dräger requires custom containers capable of supporting loads of up to 60 kg, with features that can withstand industrial-scale usage while maintaining durability over time.
The solution
To address these challenges, Dräger partnered with Utz Group, leveraging their expertise in manufacturing high-quality storage and transport containers. The solution included:
Custom container design
Utz Group developed containers in three specialized dimensions tailored to Dräger’s logistic workflow. This included open-fronted storage bins, containers with removal flaps, anti-slip mats, and partitions.
Innovative features
- Welded raised bases: Made with vibration welding for durability, these bases could support loads of up to 60 kg.
- In-mold labels: Integrated labels ensure the seamless tracking of containers and components throughout the supply chain.
- ESD compliance: Utz containers were designed with precise contact resistance, making them ideal for ESD-protected areas.
Additionally, Utz created a new production tool specifically for Dräger’s unique specifications, demonstrating our commitment to addressing custom requirements.
Reduction in container variety
Utz helped Dräger standardize their logistics process by reducing container types from 75 to just six. This improved handling efficiency and simplified inventory management.
Integrated logistics
Custom containers seamlessly integrated into Dräger’s small parts warehouse, which features storage for 120,000 containers and a pallet warehouse with a 6,500-pallet capacity.
Milkrun distribution
To fully eliminate the need for road transportation within production, Utz’s containers were distributed using milkrun trains. This further optimized delivery cycles and reduced delays.
The collaboration between Dräger and Utz Group led to substantial operational improvements, including:
- Streamlined logistics: Milkrun trains enable faster supply of deliveries to production lines within 2 to 4 hours, greatly increasing operational efficiency.
- Simplified container management: By reducing the number of container types to six, Dräger achieved significant reductions in handling complexity and labor costs.
- High-performance ESD compliance: Utz containers provided a robust solution for ESD zones, meeting Dräger’s safety and functionality requirements without compromising logistics operations.
Enhanced production efficiency
The new system eliminated redundancies within logistics and allowed for seamless supplies to production zones, reducing downtime and manual adjustments.
100000
custom containers delivered
5000
daily picks streamlined
60
kg load capacity of containers
2
hours delivery of parts to the production line
Utz containers are an essential component of the production supply chain. I greatly appreciate the unwavering partnership and solution-oriented collaboration that Utz continually provides.
Conclusion
The Utz Group’s custom containers significantly transformed Dräger’s production logistics. From tailored ESD-resistant containers to streamlined supply systems, the collaboration addressed complex challenges while setting new benchmarks in production efficiency.
As Dräger looks to scale operations further, including increasing supplier-produced parts in ready-to-use containers, the foundation laid by Utz ensures a seamless path toward continued innovation and efficiency.
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