ekol logistics case study

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EKOL Logistics: Thinking Outside the Box

By: Willy Shih, Esel Cekin

This case describes Ekol, an intermodal transportation and logistics company, and how it manages capacity planning. Its busiest routes linked motor vehicle assemblers in Germany and Turkey with many…

• Length: 28 page(s)
• Publication Date: Mar 21, 2018
• Discipline: Operations Management
• Product #: 618037-PDF-ENG

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This case describes Ekol, an intermodal transportation and logistics company, and how it manages capacity planning. Its busiest routes linked motor vehicle assemblers in Germany and Turkey with many of their parts suppliers, but it had also developed key links in fast-fashion supply chains. It used combinations of land, short-sea, and rail routes to provide different levels of service. The challenge was maximizing utilization of its trucks and trailers, especially on key bottleneck links, in the face of unbalanced traffic. To address the issue Ekol developed a consolidation center in Turkey and a cross-dock deconsolidation center in Germany, its largest market. As Chairman Ahmet Musul and his team looked at ways to squeeze out more capacity, they reconsidered their planning model and whether they should build more consolidation/deconsolidation centers to optimize costs and wring out more efficiency in its operations.

Learning Objectives

This case provides an opportunity for students to understand: Some of the complexities in intermodal transportation and how different carriage methods and routings impact delivery times and customer service level. Trade-offs between efficient capacity utilization and service level and potential impact on customer satisfaction. Choices one must make when balancing loads for different markets while optimizing overall performance for the company.

Mar 21, 2018

Discipline:

Operations Management

Geographies:

Germany, Spain, Turkey

Industries:

Automotive industry

Harvard Business School

618037-PDF-ENG

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EKOL Logistics: Thinking Outside the Box

EKOL Logistics: Thinking Outside the Box ^ 618037

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Product Description

Publication Date: March 21, 2018

Source: Harvard Business School

This case describes Ekol, an intermodal transportation and logistics company, and how it manages capacity planning. Its busiest routes linked motor vehicle assemblers in Germany and Turkey with many of their parts suppliers, but it had also developed key links in fast-fashion supply chains. It used combinations of land, short-sea, and rail routes to provide different levels of service. The challenge was maximizing utilization of its trucks and trailers, especially on key bottleneck links, in the face of unbalanced traffic. To address the issue Ekol developed a consolidation center in Turkey and a cross-dock deconsolidation center in Germany, its largest market. As Chairman Ahmet Musul and his team looked at ways to squeeze out more capacity, they reconsidered their planning model and whether they should build more consolidation/deconsolidation centers to optimize costs and wring out more efficiency in its operations.

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Ekol Logistics: High-Performance Networking in a Fast-Moving Industry

Ekol Logistics understands how technology drives business. Founded in 1990, this fast-moving transportation and logistics company has grown to operate in 80 locations spanning 12 countries, with more than 7,500 employees.

Murat Çevikbas, IT Director at Ekol Logistics, knows his company needs to be innovative and agile to grow in a competitive market. In a world where downtime means unhappy customers and lost revenue, Çevikbas places a high value on having a resilient infrastructure that can support the needs of his business.

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