Integrated cross-company logistics
How to combine logistics for separate company divisions and create new synergies at the same time.

We supply precision

The Customer

Leica Microsystems are global leaders in the manufacture of high tech precision microscopes. In Heerbrugg, Switzerland, they developed operation microscopes (Surgical Division) and stereo microscopes for use in schools, universities, laboratories, and industry (Industry Division). Founded in 1849, the company is based in Wetzlar (Germany) and currently employs 4000 people in more than 100 countries around the world. The logistics requirements of Leica Microsystems are in the capable hands of Altenrhein ( Switzerland) branch.

The background

Two logistics partners for two separate divisions
The partnership between Leica Microsystems and Gebruder Weiss dates back to 2001. Then in 2002, following an intensive development phase, Gebruder Weiss assumed responsibility for managing all procurement and distribution logistics for the Industry Division at the newly established Leica Logistik Centre in St. Margrethen ( Switzerland). The Surgical Division was serviced by a second logistics provider via Schafhausen. In 2006, the customer decided on a new strategic direction, part of which involved combining the logistics for the both divisions and working with just a single provider for the foreseeable future. The main challenge was presented by the fact that the two divisions had very different logistic structures: surgical microscope make considerably greater demands of the whole supply chain that stereomicroscopes. The contract was awarded to Gebruder Weiss, one of the main reasons being the proximity of GW Altenrhein to the customer’s headquarter in Heerbrugg, through Leica’s positive experiences to date of having had a highly competent logistics partner will certainly also have influenced their decisions.    

The solution

The single-provider solution

The single – provider solution
One essential prerequisite for the bundling together of the logistics processes was the relocation of the Surgical Divisions warehouse from Schaffhausen to St. Margrethen, where the Industry Division had already had warehousing facilities since 2002. In order to exploit synergies, but also to do justice to the different priorities of the two divisions, it was decided to operate two separate warehouse facilities within the same building. An extra 1.200 m2 of floor space were rented, and in April 2007, the transfer of all highly sensitive equipment was affected without any interruption to business operations. Today, all the logistics for both divisions  is handled by GW via the GW – operated Leica Logistik Center in  St. Margrethen. Much of the business for both divisions has since been successfully harmonised in an overarching system that have opened up new and profitable synergies for the customer.
Thanks to the dedication and commitment of all concerned, it has proved possible to merge two operating environments into one. Gebruder Weiss Has since increased the number of staff allocated to Leica Microsystems from 8 to 15 and has organized a series of intensive product training courses and workshops. Integration into the Leica team has gone very smoothly with the people from Gebruder Weiss feeling that they have been readily accepted by the customer as part of the Leica workforce.

The advantages

A partner for all needs
From global procurement and distribution to storage of goods, from quality control to order picking and packing, Gebruder Weiss assumed full responsibility for every aspect of logistics and also provides innovative solutions in the area of IT.
More than the standard logistics package
When it comes to additional services, Gebruder Weiss staff based at the Leica Logistik Centre can also be called upon to assemble sets of components or to carry out software upgrades for electronic components in microscopes.
Reduced inventories
Following a highly successful test phase, the warehouse redesigned in line with the Kanban system. This involves an ultra flexible inventory management system by means of which stocks can be drastically reduced whilst at the same time significantly improving supply capacity.

Lesson learned

An ongoing process
Even through the manager of operations for the two divisions in now complete, new challenges and scope for further optimisation are constantly cropping up. In order to ensure that things stay on track, there is a continual process of fine tuning. There are monthly meeting between Leica Microsystems and Gebruder Weiss with joint planning sessions and discussions of the way ahead.

Flexible resource planning
What has become clear is that, with a project of this magnitude and complexity, it is not possible to define in advance the costs in terms of personnel and time. Both parties need to allow leeway for unforeseen factors and developments.

Active communication
Leica Microsystems has no use for a partner who tries to cover up problems or who tries to solve them on their own. When difficulties arise, they expect immediate and honest communication.

Company structure as a factor in logistics
Since 2005, Leica Microsystems has been part of the American conglomerate Danaher. This takeover also involved new directions in the company strategy and culture. Gebruder Weiss has learned a clear lesson from this: effective logistics solutions are based not merely on accurate statistics and data but also on a clear understanding of all the structural factors involved.