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DLoG - the dynamic quality innovator in logistics IT
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 German-based DLoG has been developing and supplying industrial software and hardware since 1985, first for manufacturing customers and then in parallel for the logistics and other sectors as well. TodayÕs DLoG is a world leader in innovative quality IT for business, with over 7,000 customers worldwide, and its UK operation is enjoying increasing success. John Davis, Director of DLoG UK Ltd, spoke to W&LN.
Warehouse & Logistics News - First of all, John, what does 'DLoG' stand for? Who owns the company?
The guys who founded DLoG were playing around with words - DLoG is 'gold' backwards! However the name has a further significance for customers, as the 'LoG' part refers to the logging of data in manufacturing and logistics. The present owner of DLoG is the hi-tech holding group Augusta AG, which is listed on the Frankfurt stock exchange.
W&LN - Who was the original driving force behind DLoG, and are they still involved in the business?
It depends how far back you go. The two original founders, back in 1985, were involved in hardware and software respectively. Subsequently there were four main shareholders in DLoG, before Augusta acquired it: three are still active in the business.
W&LN - How big is DLoG's worldwide turnover now?
Overall turnover is 20 million Euros, and we are represented through partners and distributors in over 25 countries. DLoG has offices in the US, UK, Holland and the Nordic countries. We also have distributors in the UK and as far afield as Israel and South Africa, serving customers in a diverse range of industries.
W&LN - How do you handle the distributor channel in the UK?
We work very closely with our distributors, and liaise as appropriate over servicing OEMs. If we find we're both targeting the same end-user account, generally speaking the distributor leads the project and we work with and support them as required. We're currently expanding our distribution channel here to include systems integrators, WMS suppliers and hardware distributors.
W&LN - Where are your devices made? Where do you develop your software solutions? Where does your technical innovation take place?
Everything happens in Germany, at our headquarters in Olching, near Munich. Assembly is done in-house: motherboards are sourced locally to our design. We have 100 people involved in product development, design, sales and technical support.
W&LN - With centres of excellence emerging outside Western Europe, the USA and Japan, are you thinking of developing your devices and software "offshore"?
Not at the current time. There's no cost benefit for us in going offshore: vehicle mounted terminals are relatively niche products, supplied to order, and we need to be flexible and respond quickly. Also, we have high quality know how in house, so the guys doing the development can walk downstairs and talk to their colleagues doing the construction. Remember, Porsche still manufactures in Germany!
W&LN - What proportion of your global turnover is specifically for manufacturing clients, and what proportion is for logistics?
Currently 15-20% is manufacturing, the rest logistics. The logistics part is growing due to innovation by us and to strong overall market growth over the last four years. Our products are high volume generators in retail in Germany, with customers including Edeka and Metro, and weÕre looking to duplicate this success here.
Retail and other sectors are mirroring manufacturing in adopting this technology. In manufacturing environments, people would never have considered putting computers on the shop floor 20 years ago. We developed the first industrial PC in 1990. Back then, people were using proprietary equipment in hostile environments, not standard PCs. Equally, back then you wouldn't have put network cabling on the shop floor: now you do. The advent of vehicle-mounted PC-based terminals, and the reliability and reducing cost of wireless LAN's, make logistics a growth area.
 W&LN - What other industry sectors besides manufacturing and logistics are your systems used in?
The range of applications is diverse and increases day by day, and includes construction and straddle carriers in ports like Rotterdam and Israel. We have companies using our terminals to position lifting equipment over aluminium smelters and to direct buses at airports. We supply specialised solutions where people need industrial devices capable of being mobile, but the real mass market for DLoG is logistics and general distribution.
W&LN - Turning to the UK, when was your operation here set up? How big is it now? What proportion of your UK business is with logistics customers? How important is the UK to the overall group?
From 1987 our products were distributed here through a succession of different partners. We set up DLoG UK in 1997, and currently have seven staff solely working on sales, implementation and support, a similar size to the other partners. Our UK turnover is currently 1.5 million Euros, half of which is from logistics customers. The UK is key to our strategy: we see it as our third largest market after the US and Germany, based on a VDC survey (2005) into potential customers for this type of kit.
W&LN - How does the UK differ from other areas where you operate?
From my understanding there's huge growth potential all round here, especially in the logistics sector. Where we've been selling systems and software to manufacturers, the US leads in adopting the technology, followed by the UK, then Germany.
Full-screen vehicle-mounted technology is different: in Germany thereÕs been dramatic growth and huge adoption over the last five years, which is now starting to filter through to the UK.
W&LN - If UK customers buy a solution from you, is it implemented by engineers and consultants from here?
Yes, totally from here. We get superb technical backup from Germany and can still call on them if needed.
W&LN - Can you name any UK-based logistics sector customers, and outline what you do for them?
The most high profile one is TNT, who use DLoG terminals at four sites, on big shunters that manoeuvre artic trailers around distribution centres. We replaced other suppliersÕ kit that was getting shaken to bits.
W&LN - How would you sum up the DLoG proposition for UK logistics customers?
It comes back to my earlier point: all our terminals are built to order and not supplied from stock. We go through a configuration process with the customer, again unlike many of our competitors. We offer 7", 10" and 12" screens, with smaller units taking an increasing share of sales due to the smaller footprint in the vehicle.
W&LN - How does DLoG compare with other vendors - why buy a logistics solution from DLoG?
We're more flexible and quick at incorporating customers' specific requirements into our solutions, and people are welcome to talk to our development centre. We carry out repairs in 2-3 days, not 6-8 weeks like some competitors, who ship units round the world during the repair cycle.
W&LN - What does a typical DLoG logistics solution involve?
In terms of kit, it will include terminals, possibly Wireless LAN, and associated peripherals. In most of our end user sales the customer has his own ERP software and WMS, and weÕll happily work with their WMS supplier.
We're happy to supply units for customers' evaluation, so they can appraise the concept - how will they use it? What kit do they need? It sells the solution better if the end user whoÕs identified DLoG as the answer to their needs actually sees it running on their system.
W&LN - What hardware devices and software packages do you offer specifically for the logistics space? Within this portfolio, what vehicle-mounted terminals and other mobile devices do you offer? Do you supply bar code scanners?
Most of our terminals are vehicle-mounted, and logistics is our biggest industry sector. Our portfolio of vehicle-mounted (VM) kit covers three VM screens, 7", 10" and 12" and one hand held 7" unit. We supply a complete solution including bar code scanners from key vendors as required.
W&LN - How important is RFID in your offering?
Many people are still looking at adopting RFID, and more are implementing it now as the cost drops. It will in time become a key market, where we will have undoubted expertise to offer our customers.
W&LN - Do you supply wireless networking equipment?
Yes, we carry out all aspects of wireless networking provision, from survey to installation.
W&LN - Do you supply Voice-directed picking systems?
We recently released our own pick-by-voice system, which is being integrated into our main WMS offering and also sold by other WMS vendors. Salomon was one of the first vendors to adopt it.
W&LN - What are your bestselling devices in the UK?
To date our biggest seller is the MPC mobile PC, available with 10Ó or 12Ó screens. Full screen vehicle mounted terminals are available, operating on Windows XP, Embedded XP or CE platforms.
W&LN - What are your latest devices to be introduced here?
We launched the X7 at the beginning of the year, with a smaller footprint than the MPC, and taking up less room in the forklift truck cabin, which is a key consideration. The 7" screen is often quite sufficient for the amount of information forklift operators need. Our most recent UK launch is the XDMA, our first foray into handheld units, which runs on Windows CE.
The MPC and X7 have aluminium housings and are extremely rugged and reliable. The XDMA has a plastic housing: it can withstand a two-metre drop test onto concrete, which has been independently certified to the MIL 810F method 516-6 standard.
W&LN - Who on the client side should be involved in the planning process for a logistics solution to succeed?
Typically clients' IT people lead these projects, but at the very least their logistics management team should also be involved. The solution we supply - devices, wireless LAN and WMS - needs to be fully integrated with the client's existing infrastructure and ERP system, and ideally everyone likely to be affected should all be consulted. Often there are special project teams assigned to handle the project.
W&LN - How long from go-ahead on a contract to 'go live'?
We generally arrive at a specification within four weeks, depending on clients' commitment. After the decision is reached, terminals are delivered in four weeks. The remaining factor is the complexity of the LAN and the software involved. The quickest projects take two months, the longest two years.
W&LN - How long before the customer sees a return on their investment?
Again it depends on the overall solution and timescale of implementation, but itÕs generally 9-18 months, which we believe is an industry benchmark.
W&LN - As customers' operations change, how easily can you help them change their technology?
Our products are generally operating system independent and can be modified as required. We have manufacturing hardware still running after 10-12 years. The defining point is the clientÕs overall operating system, and the implications for everything else of that changing.
W&LN - What do you see as the biggest external factors impacting on the UK market for IT for logistics?
The biggest single factor is the demands of customers for more flexible logistics solutions and reducing logistics costs. Our hardware helps people deploy their solutions to best effect and get more accurate picking and less wastage. With the right logistics system in place to distribute their goods, customers will achieve the optimum results in their business. We're here to help them identify and facilitate the right system.
W&LN - Finally, where do you see DLoG's UK operation going from here?
Based on the potential market that exists here, our future is very bright indeed. We will be actively expanding our team in the sales and technical areas as our business grows.
DLoG (UK)
Ltd Tel: 0121 544 6256
www.dlog.co.uk
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