BORUSAN LOJİSTİK GENERAL MANAGER OF SALES AND MARKETING İBRAHİM DÖLEN Q&A WITH PLATİN MAGAZINE
1. Can you tell us a bit about the milestones that Borusan Lojistik has accomplished from its establishment up until the present?
Borusan Lojistik was restructured in line with the mission of providing integrated logistics services to its customers and carrying out their work faster, more economically and at higher quality, all the while creating added value. Therefore, first things first, our company was established at the beginning of 2000 following the merger of Boru Nakliyat, Bortrans and Borusan Dağıtım companies operating in the fields of customs clearance, transportation, port operations and warehousing under the same structure.
Later, we took an important step by building a second pier in 2000, next to our existing Gemlik port facilities. By doing this we turned the cantilever area into a semi-open, semi-closed space. With our new port complex, we have increased the load capacity of our Gemlik facility from 800,000 metric tons to 1,650,000 metric tons of conventional cargo and to 45,000 containers. With an investment of $18 million, we added second and third docks to our port and extended our equipment pool. In addition, we completed the construction of two new storehouses 4,000 m2 and 5,000 m2 in size. Our other important investment is our logistics center consisting of warehouses and storehouses covering an area of 7,730 m2 in Gebze.
Our third important step within the scope of restructuring was to create the necessary infrastructure to provide end-to-end solutions to our customers. We have standardized all operations in our corporation with the ERP (Enterprise Resource Planning) system attached to the SAP R3 backbone. Now we have a strong network infrastructure and online applications.
In addition to our efforts to develop our technological infrastructure, we have recently implemented e-business applications, which have been among our primary goals since our establishment. Thanks to the modules that are on our website, organizations receiving a service from Borusan Lojistik can track their exports/imports and can monitor customer and vendor accounts. With the inquiry module, customers can create their own questions and send them to Borusan Lojistik.
In order to plan our business processes better, we established a system allowing us to control and report on all the operational processes carried out in Gemlik Port with two projects that we concluded in 2002. Thanks to our Borlos and Logistics Management System (LMS) projects, which provide real-time information flow to us and our customers during all domestic operations, we have established all our processes on the SAP backbone.
Finally, we have broken a lot of new ground in our sector, which can also be seen as a milestone for Borusan Lojistik. In late 2002, we established and achieved certification in ISO 9002 OHSAS 18001 Occupational Health and Safety Management Systems, breaking new ground in the industry to ensure that our services are also respectful to the environment, that measures are taken regarding occupational health and safety, and that social responsibilities are being fulfilled. It has always been our principle to work in accordance with human and environmental health standards.
2. What sort of new investments have been made since 2003?
Each of the investments we have been making in our logistics services over the last two years will provide us with tremendous contributions in the long term. I have just addressed this but I think it is beneficial to highlight it again. One of our important investments is the 8,160m2 warehouse built by Borusan Lojistik in Gebze. We provide storehouse and distribution services from this warehouse. I think this gives us an important opportunity to realize our goal of establishing a partial distribution network from six points in Turkey in 2003. Our other investment is the implementation of our LMS program which we prepared at the end of 2002. LMS is a program that we can use to track all business processes such as warehousing, distribution, transportation, documentation, and invoicing. We have reaped a lot of rewards from using LMS this year. Meanwhile, we will continue to use the SAP program we’ve been using so far, in the background. In 2002, we also started to set up our program named Borlos, which will enable us to follow chain operations at the port. We are using this software right now. It allows us to follow many processes such as discharging a ship coming to our port, tracking, determining the places where the goods can be shipped and timing during the customs process. In addition, our customers are able to view the status of their cargo on the website using a password which we provide them with. Our aim is to be able to follow the goods leaving our warehouses and storehouses in the port for distribution online. We will also implement this in a short period of time.
3. What are your objectives for the end of 2003?
We take it as our main mission to provide integrated logistics services to our customers and fulfill their work faster, more economically and at a higher quality, all the while creating added value. Therefore, in line with the perspective of integrated logistics, we aim to bring a new breath of fresh air to the sector via solutions that provide value-added services within the industry’s service spectrum and according to the expectations of our customers. In addition, we are trying to meet the changing needs and demands of our customers by developing applications that will make a difference in the sector in service areas such as storage, transportation, distribution, customs, international land-sea-air forwarding and port management.
In this respect, our primary objective is to provide solutions that offer value-added services tailored to the expectations of each of our customers operating in the driving sectors of the Turkish economy with our integrated logistics services carried out to international standards. In conclusion, I can say that it is our objective to take Borusan Lojistik above and beyond its current position as an exemplary company that is trusted in its sector.
Our short-term targets include investing in a domestic partial distribution network and consolidation and storage centers in order to be able to fully meet the expectations of our targeted sectors. We plan to carry out investments in land transportation, distribution, and storage areas, such as warehouses and offices in the central provinces of Turkey.
In addition to the Istanbul, Gebze, Bursa, Ereğli and Izmir regions where we currently provide services, we have also created Regional Directorates in Ankara and Adana. Thanks to the partial network that we have established between our regional offices in 2003, we will be able to meet the partial distribution needs of our customers centrally to whom we currently provide services. We also place great emphasis on continuously upgrading our competence in the IT infrastructure and human resources that will enable us to be involved in all logistics services, from production to consumption.
4. What is Borusan Lojistik’s vision?
We set our vision as making the difference in service quality and diversity and being at the forefront of the organizations providing integrated logistics services to the Turkish market.
5. What is Borusan Lojistik’s position in the sector in numbers?
Borusan Lojistik will reach a turnover exceeding $50 million in 2003. The total market size is estimated to be between $4.5 and $5 billion, although there is no clear information about the total logistics market. However, there is a serious logistics share that is not marketed yet. It is thought that once the firms that still manage their own instruments outsource these works, a market close to $15 billion may emerge in Turkey.
Logistics is a sector with low entrance and exit barriers due to its size. Therefore, the number of firms claiming that they are working in the logistics sector is very high. As a result of the changing needs of our customers, we need to centralize each service type within the logistics concept and manage these services through a center to provide the most effective and efficient management of the total supply chain.