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Technology expert Ehrhardt + Partner has quickly developed its operations since moving to the Middle East and remains focused on providing the region’s logistics industry with modern business solutions, explains founder Hermann Ehrhardt.

How was Ehrhardt + Partner established?

I started the company around 21 years ago. At the time, I worked in the information technology (IT) sector and encountered a company that was looking for IT experts to manage their warehouse activities.

Although this caught my attention, I actually wanted to establish my own company, and that’s how Ehrhardt + Partner was created. I used the term ‘partner’ because it represents a team effort to customers. We’ve since developed our operations throughout the world, with more than 140 employees in four different locations.

What prompted you to establish a presence in the Middle East region?

I read a newspaper article in 2005 about Dubai Logistics City, which seemed like a great place for business operations. Since we’re a family company, I decided to spend around a week in the United Arab Emirates with my son, visiting various people and familiarising ourselves with the regional logistics industry.

Within a short period of time, we made a decision to establish our operations here. Later, in September 2006, we signed a contract to build a facility at Dubai Logistics City and also made plans to copy the training centre that we have in Germany, which was built in 2001.

What are you hoping to achieve with the training centre in Dubai?

Being in the Middle East is a major step forward for our company. We are unique in this region, because some companies have catalogues and websites, but their customers are not able to physically test the products, which is something we can achieve with our training centre.

Have you found that companies in the Middle East are willing to invest in warehouse modernisation?

Logistics has traditionally been considered a basic process in this region, although this attitude has definitely started to change. International companies in the electronics sector, such as Sony and Toshiba for example, have world-class distribution in regions like the United States, Europe and Japan. Nowadays, the Middle East has become a lucrative market too and these companies are looking for logistics companies to manage their supply chains. However, they demand the very highest levels of excellence, which is pushing standards in this region.

Can you provide some examples of the regional contracts you have secured?

Our LFS400 warehouse management system was implemented by Germany-based manufacturer Hügel last year to boost its Middle Eastern supply chain. Similarly, EMKE Group selected this system for its LuLu hypermarket chain, linking a number of regional warehouse sites in countries such as the United Arab Emirates, Bahrain and Qatar.

How has the E+P warehouse management system helped to improve the supply chain operations of your customers?

This depends on the specific product and customer, because each company has unique requirements for their supply chain operations. For example, our solutions can increase a customer’s picking accuracy by around 25% if they move from paper-based operations to radio frequency (RF).

We always ask our customers about their primary goals for the next five years, or even ten years. Our partnership with them is not short-term, so it’s important to look at the bigger picture.

By showing that E+P is building a technology centre in Dubai, we are also indicating that our company isn’t only selling them software, but developing a serious, long-term partnership.

There is a slogan we use where we say we’re not just providing software, we’re providing solutions. This can be considered a unique selling point.

What development plans do you have planned for the LFS400 warehouse management system?

Our system has been developed inhouse by a team of experts and we’re constantly looking to make improvements for the benefit of customers. We have module-based software and these modules match the businesses of customers such as Hügel and EMKE Group.

If their business grows in a region like the Middle East, for example, they can implement more and more of our functions. This is a permanent process of adapting and developing the software, so we’re able to cope with almost 90% of existing logistical processes just with parameters within our system.

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