A Hungarian-European speciality
As a joint venture founded in 1999, Liegl & DACHSER has developed into one of Hungary´s leading logistics providers. The company, which has now been wholly owned by DACHSER since the end of 2022, is also playing an increasingly important role in food logistics. In times of economic and global political complexity, success in transporting and storing chilled and non-temperature-controlled goods hinges on providing quality and reliability.
It was love at first bite. In Hungary, this culinary play on words can be expressed in appetizing figures: according to the most recent market surveys, revenue from food is set to rise from EUR 13.31 billion in 2022 to EUR 18.34 billion by 2027. This would represent annual growth of 6.62 percent.
Managing such increases calls for particularly high-performing food logistics. Established in Hungary as a joint venture in 1999, Liegl & DACHSER has earned a reputation as a first-rate logistics provider thanks to its portfolio of transport and logistics solutions. In 2008, the company set up its own Food Logistics unit for the Hungarian market. “From day one, DACHSER’s proven standards in performance, quality, and IT helped us in Hungary to acquire leading European food producers and retailers as customers for our logistics solutions,” says Alfred Miller, Managing Director DACHSER Food Logistics. Over the past 14 years, Liegl & DACHSER has developed a wide variety of food logistics solutions to meet the individual requirements of domestic and international food producers. In December 2022, DACHSER acquired one hundred percent of the joint venture.
Focusing on fresh
DACHSER in Hungary food logistics business is currently focused on meat and dairy products as well as on upstream food products in the ambient segment. In 2021, the company moved food shipments weighing roughly 120,000 metric tons for its domestic and international customers. This involved the distribution center in Budapest, two further locations for distribution and procurement transports, and a multiuser warehouse with 33,800 m² of storage space and 32,000 pallet spaces.
In addition to warehousing and transport, DACHSER in Hungary also offers value-added services including co-packing and labeling. For one customer in the animal feed business, the dovetailing with these services starts right after the manufacturing process, as machines help put the manufactured goods into primary packaging. Further options include customs clearance and dealing with Hungary’s Electronic Road Freight Control System (EKAER). These services are especially important when it comes to Europe-wide imports and exports involving the European Food Network, which connects DACHSER in Hungary to no fewer than 33 countries. The daily connections from Germany and other European markets and the time-tabled transports that leave Hungary are managed by DACHSER’s Neufahrn branch near Munich.
"DACHSER's proven standards of performance, quality and IT have helped us attract leading European food manufacturers and retailers to our logistics solutions in Hungary from the very beginning", says Alfred Miller, Managing Director DACHSER Food Logistics.
“Our logistics facility in Budapest is proving instrumental in generating further growth in the Hungarian and European markets,” says Tamás Horváth, Branch Manager DACHSER Food Logistics Budapest. This location, which opened in 2017, is connected directly to the greater Budapest area and the European transport network by the M0 highway. Distribution in Hungary is completed within 24 hours, and products arrive at grocery stores from Budapest in one step. “Due to the extremely practical location and the extra operations and storage areas, we have the ideal conditions for handling and warehousing temperature-controlled and non-temperature-controlled food. This means we can offer our customers in food production, retail, and export first-class quality and top service,” Horváth says. He makes special note of the comprehensive tracking and tracing as well as the optical archive of proof-of-delivery documents for the customer.
Efficiency in dynamic markets
Horváth also points out that quality and service become even more important when market conditions are tough. The milk market is currently experiencing significant price increases, he says, but these are not as drastic in Hungary as in international markets. “People are starting to regard dairy products as a luxury,” he says, adding that this makes it even more important to have logistics standards in place to offer customers as much reliability and efficiency as possible.
“We strive for continuous development both in administrative and in hands-on tasks,” he says. These efforts are based on well-established processes that comply with International Featured Standards (IFS) Higher Level, HACCP guidelines, and ISO 9001 certifications that are subject to regular audits and resultant readjustments.
Successful through digitization and experience
“Our strength lies in uniform process standards that can be tailored to meet individual customer requirements,” Miller says. DACHSER’s own IT systems for transport and warehousing in conjunction with DACHSER eLogistics—the online portal for managing logistics tasks—play just as big a role here as innovative mobile tools and handhelds that support the employees who handle cargo, work in the warehouses, and drive the trucks.
Miller also says that DACHSER’s vast operational experience is helping increase efficiency as an answer to rising price pressures. “Our tailored consolidation solutions, for example, reduce loading bay traffic and enable incoming goods to be processed faster,” Miller says. “Documented processes and automated temperature documentation coupled with state-of-the-art cooling technology, batch tracking, and certified quality management translate into extensive transparency and the best possible food safety. That is and will remain crucial to maintaining an edge in the growth market that is food logistics.”
Acquisition of the joint ventures in Hungary
On December 20, 2022, DACHSER acquired the remaining 50 percent of the shares in its Hungarian joint ventures “Liegl & DACHSER Szállítmányozási és Logisztikai Kft.” (transport and storage of industrial goods and food products) and “Liegl & DACHSER ASL Hungary Kft.” (air and sea freight). “As a central and dynamically growing goods hub in the heart of Europe, DACHSER Hungary is now a pillar of our European groupage network," says Alexander Tonn, COO Road Logistics at DACHSER.
