An Insight into Logistics Challenges and Innovation

In this feature with Logistics and Transportation Review Europe, Cleo Kortenhorst, Senior Logistics Manager Warehouse & Outbound at Arla Foods Logistics Germany emphasizes innovative strategies, process optimization, and trusting young talent for production efficiency and business growth. My career journey began five years ago with a bachelor's in food technology, followed by a master's in logistics. Driven by a passion for both fields, I aimed to bridge the gap between the food industry and logistics. Upon completing my studies, I joined Arla Foods’ demand planning team, gaining valuable insights into diverse customer behaviors. Seeking more operational experience, I enrolled in a supply chain management traineeship program at Arla Global.

I then transitioned to the largest Arla site globally, and the second-largest dairy in Europe, where I engaged in project work closely tied to milk production. I started with project work and was closely involved in the production of UHT milk. After this inspiring experience, I spent six months in Sweden working on official projects for Arla, during which I gained exposure to a lot about cheese manufacturing, butter production and other production processes.

Upon returning, I was assigned a project on Europe’s biggest milk powder spray dryer, in October 2022. For a year, I guided the filling department as their team leader and in turn, it taught me how to set up a whole new department and establish the various processes involved. As time passed, I wanted to go beyond production and gain more logistics experience. I took up the free vacancy as a transport manager at Arla Foods’ in the outbound area, managing our fleet and third-party logistics (3PLs), exports and administration. Since April this year, my old department merged with the warehouse team. As of April 1st, I became the Senior Logistics Manager of Warehouse and Outbound overseeing three warehouses and a large number of employees.

The Hurdles in Logistics and Warehouse Management

One of the biggest challenges in the dairy industry is that cows produce milk every day, regardless of demand. This means we always have a constant inflow of milk that needs to be managed every day. But if customer orders or demand forecasts are lower than expected, the volume going out fluctuates significantly. These huge inbound and outbound volume fluctuations create challenges for our transport logistics and warehouse teams and can lead to either full warehouses or shortages in the transport market.

A Constant Search for Innovation

We still face challenges in gaining insights from our data. There is more data available than we realize, but is difficult to figure out how to use all of it effectively. We aim to create a clear vision of where we want to go and how to work with available data to gain the required insights. This is a significant challenge that once resolved will turn into a significant technological advancement.

“We aim to create a clear vision of where we want to go and how to work with available data to gain the required insights”

Arla Global is a large company that is always looking into new technologies. Besides our SAP systems, we also look at processes from other Arla sites to find simplified ways to perform our operations. When new technologies come onto the market, we try to roll them out across different sites. If we face a challenge, we call another site for advice on how to solve it or connect with super users. In doing so, it's important to follow standards with every newly introduced idea and maintain a unified direction across the company.

Leadership that Drives Better Decision-Making

Effective teamwork is crucial for success. Leading a team of around 160 people, I recognize that productivity stems from empowering team members rather than making every decision myself. My leadership style is to empower my team members. Amid their struggles, I support them in every single direction. I give them the freedom and trust in their decision-making as specialists in the space, even during the most crucial moments. I act as their helicopter view but am not the one deciding on how to lead respective departments. In essence, I provide guidelines but let them lead their departments.

Optimize and Restructure to Boost Productivity and Teamwork

When I started in this role, we had issues with a full warehouse. We managed those challenges, but I wanted to collect all the information, analyze what was missing in our department and review the processes ongoing for the past years against the most recent changes. Many processes needed to be updated in their ownership, which is challenging for larger companies. We are now focusing on identifying these processes, who is responsible for them, when, what and which departments are influencing us and how to optimize and structure the team accordingly. While this is necessary, onboarding team members and stakeholders becomes a crucial task. And we are making further progress step by step along the journey of acquiring actionable insights, boosting teamwork and productivity and streamlining processes as deemed fit.

Setting Experience as a Benchmark

At 29, I lead a large department. My advice to leaders is to think outside the box and give new talents a chance, just as my managers did for me. Trust and opportunities for growth can drive innovation and success. I aim to do the same with my team, showing that I trust them and that they are doing great. Sometimes, companies hesitate to place young people in significant positions. Looking for candidates with potential, instead of setting experience as the benchmark, can bring speed and innovation to a company.