German materials handling equipment manufacturer Jungheinrich aims to use the KwaZulu-Natal Industrial Tech Expo (KITE) to break into the local market, increase its exposure in the region and build brand awareness.

Durban has a price-sensitive market, and Jungheinrich is still busy establishing themselves in the region. Jungheinrich doubled its order intake last year compared with 2020, says Jungheinrich sales head Chad Short.

The company encountered a significant loss during the civil unrest in July last year, as a Jungheinrich branch, in Durban, was looted and subsequently burnt.

However, Jungheinrich used the setback as an opportunity to open a bigger premise, explains Jungheinrich MD Ralf Bangert.

The local market favours using diesel, which is another challenge for the company. Jungheinrich values sustainability in its projects and, as a result, provides electric materials handling equipment, in addition to its diesel and gas range. The company has prioritised marketing its electric equipment range to the local market as opposed to diesel and gas equipment. The local market has shown significant interest in the electric equipment range especially the lithium-ion range of materials handling equipment.

While Jungheinrich’s products have been in South Africa for about 20 years through dealerships, the company is relatively new to the market in its direct sales model.

For the past five years, the company has pursued the production and selling of its range of materials handling equipment, as well as after-sales services and rentals, directly with customers rather than through dealerships and partnerships.

Short explains that the market has seen Jungheinrich prove its quality and value, which it aims to further showcase at KITE.

Jungheinrich is also a fully intralogistics company, he adds.

“We can do racking, automatic vehicles, standard vehicles, system trucks, series trucks, racking mezzanine floors and conveyor systems. We need to showcase that to South Africa and we'll have some unique machines on that stand, such as the automated guided vehicle,” explains Short.

Bangert elaborates that exhibitions, such as KITE, help businesses to connect directly with their target market.

Jungheinrich’s logistics systems and customised solutions are expensive, therefore, customers need to have discussions with sales agents to understand the pricing of the solution and whether it is the most suitable solution for their requirements, he adds.

Further, exhibitions also offer businesses the opportunity to educate their target market on solutions and products they might not be aware of. Jungheinrich aims to use the exhibition to educate customers on the company’s range of electric equipment as it is an important aspect in its goal to operate sustainably.

Short says there is a stigma attached to using materials handling equipment that is powered by batteries because people do not understand how to look after the batteries.

Jungheinrich’s lithium-ion battery is a fully sealed battery that does not need maintenance and never has to be removed from the machine. Unlike lead acid batteries, lithium-ion batteries are not hazardous and do not need to be changed over in multiple shifts.

“We brought in these machines specifically to fight the diesel market because it's the perfect transition from diesel to electric without the hassle of looking after a battery,” says Short.

Lithium-ion batteries can also be charged whenever the user wants to charge them as opposed to waiting for the battery to be completely drained before charging.

Into the Future

The company believes that the future is automation and artificial intelligence, says Jungheinrich systems manager Mike Botoulas.

The Fourth Industrial Revolution is evident in the changes witnessed throughout the South African market, with the majority of Jungheinrich’s customers moving towards automation, he adds.

The Jungheinrich group has more than 500 automated sites globally and intends to roll out an operation in South Africa in the near future.

Jungheinrich assists customers in finding the correct automated solution to match their requirements.

“We aim to create, extract and enable value within a customer supply chain. Those are the important cornerstones of what we do. We do that by way of operational optimisation, streamlining operations and, most importantly, we aim to ensure maximum productivity and uptime,” explains Botoulas.

Jungheinrich also futureproofs its solutions so that they will work for the immediate customers needs and those of their future, as requirements and operations evolve.

There is not a one-size-fits-all solution for customers; solutions have to be designed according to customer requirements and Jungheinrich then ensures that there is a business case to support that solution, says Botoulas.

Solutions are scaled according to customer specifications and Jungheinrich ensures that a reasonable payback period for the money invested in the solution is possible, he concludes.