Hermes Germany optimizes its auto-ID fleet

With more than 16,500 ParcelShops, ten logistics centers, around 270 sites and partner sites, and 6,000 employees, Hermes is one of Germany’s leading logistics providers and a partner of numerous national and international online shops and multi-channel retailers. The parcel services provider uses auto-ID systems to manage a huge flow of goods, and over 30,000 hand-held scanners to capture the products’ identification data. These devices are provided by CHG-MERIDIAN, including software and related services. The customized business concept offers the Hamburg-based logistics specialist several advantages: around 35 percent lower costs, access to the latest technology at fixed rates, and an online platform for easy, transparent administration of this sizeable equipment fleet.

As in many other industries, automatic identification (auto ID) is essential for digitalizing supply chains in logistics, retail, and healthcare. Hand-held scanners that read bar codes, QR codes, and RFID (radio-frequency identification) tags to identify objects are a key tool in this process. These mobile devices are mission-critical to a major logistics company such as Hermes Germany. After all, if the hand-held scanners are not working, drivers are unable to deliver, ParcelShops are unable to accept returns, and the admin team has no access to real-time information on inventory and delivery status.

The technology behind auto-ID hardware and software is evolving rapidly, and upgrade cycles are becoming ever shorter. Companies must ensure that their systems are technologically up to date if they want their business processes to remain stable and secure in such a fast-paced environment. And that is quite a challenge. To complicate matters, the situation in the market could change during the agreed lease term and necessitate a reorganization of the business.

CHG-MERIDIAN supports its customers with a level of flexibility that is almost unheard of in the leasing industry, and which is based not on pure leasing but on a customized business concept that meets the customer’s specific needs. Hermes Germany used this opportunity to consolidate existing contracts and streamline its administration processes. Malte Buchner, Strategic Purchasing Manager at Hermes Germany, points out another benefit: “We have made considerable savings by extending lease terms. Our expenditure is now 35 percent lower than before.” This scalability adds real value for the logistics company, as does the option to return devices at any time. “Keeping pace with technology is now much easier,” says Buchner, adding: “CHG-MERIDIAN were very solution-oriented when working with us to realize our ideas, and exceeded our expectations with their customer-centric approach.”

Managing large equipment fleets featuring a mix of device types and operating systems from a variety of vendors can be a challenge. This is particularly true of hand-held scanners, which will be out with the Hermes drivers in all weathers – conditions that mean devices need to be repaired and replaced regularly. Hermes Germany relies on tesma for an overview of the company’s ever-changing inventory. This online platform from CHG-MERIDIAN provides a full range of commercial data in real time. “tesma provides quick and precise answers to questions such as how many new devices have arrived, as well as information on lease periods and cost trends, for example. This increases transparency across our business and ensures that our decisions are based on robust data,” says Thomas Brandt, IT Project Manager at Hermes Germany.