Solar and Ørsted expand collaboration on warehouse and logistics services
October 9, 2018 · Solar A/S
Ørsted’s focus on competitive performance and efficiency has led to an 8-year agreement with Solar. The agreement covers operating products and project materials along with warehouse and logistics services.
Ørsted and Solar have made an 8-year agreement that will increase flexibility in Ørsted’s sourcing setup, including operations on the electricity network in Radius Elnet’s area, covering the Copenhagen area, Northern Zealand and parts of central Zealand. Solar will be handling an extended part of purchasing, inventory and logistics in relation to the vast number of operational and project functions in Ørsted. The agreement will improve operational efficiency in the utility company, explains Anders Vikkelsø, Senior Vice President at Ørsted and vice chairman at Radius.
“Solar provides a complete package with a flexibility that will free up resources for us and our external contractors, as we can now have materials delivered via Solar’s webshop and distribution network to any location, including our own warehouses, where Solar also offers support on a number of tasks such as refilling of the inventory. The agreement covers a much larger number of materials than earlier and a number of logistics services that support our ability to get fast and accurate deliveries to all functions in Ørsted. This is essential to our short-term results as well as our long-term competitiveness,” Anders Vikkelsø says about the agreement.
Specialisation is key
Historically, Ørsted have managed close to all aspects of purchasing and logistics on their own, but in the future, they want more flexibility in their handling of materials. Specialisation and focus are key aspects in the transition, and thus, Ørsted have left delivery of a large number of materials up to Solar, as Solar are specialised in that specific area, Leif Skjoldborg Hansen explains. He is responsible for the agreement with Solar. As an example, he points to one of the services incorporated into the agreement; Solar’s Fastbox concept.
“For instance, Radius’ contractors always had to drive to the central warehouse to get materials, while today, they are able to order materials and tools in an app, and have it delivered at the site within 60 minutes,” he says.
Solar are specialised within the sector
Solar have expanded rapidly within the utility sector since 2012, and can write the names Fibia and NRGi next to Ørsted on their customer list.
“There is a huge potential for companies in this sector. There is a demand for tailored solutions including logistics setup, inventory management and a specific product assortment, which can make the companies more profitable in a time where the focus on costs is immense. And we can do that,” says Sales Manager Ib Fledelius Falkenberg, who is responsible for Solar’s activities within the utility sector.