Dimerco, Elanders Supply Chain JV looks to IoT
September 19, 2019
Taiwan-based global transportation and logistics specialist Dimerco has acquired a 25 percent stake in Elanders’ newly founded subsidiary, ITG Air & Sea GmbH, which provide air & sea freight forwarding, which in 2018 had a turnover of some EUR 74 million. The two companies are forming a joint venture, and Dimerco has said that the use of IoT and Internet technologies will play a key role in optimising operations in the new entity.
Dimerco provides professional services through alliances with airlines and maritime transportation to integrate and streamline supply chain management processes.
Dimerco plans to adopt a business growth strategy focusing on supply of far-reaching international logistic services by means of channel globalisation, product diversification, operation optimisation, information centralisation and operation localisation, as well as applications of Internet and IoT and construction of tangible and virtual channels.
The company has a global network with extensive marketing & sales outlets in China and Asia Pacific and key complementary operations in Europe and North America, covering 160 business locations in 16 countries generated US$611.84 million in gross revenue in 2018.
"We see enormous potential in the spin-off of our air and sea freight forwarding business and the cooperation with Dimerco”, says ITG Managing Director Holger Funk, who will also be responsible for ITG Air & Sea GmbH.
In the new entity, ITG is planned to focus more on its core competencies in the air and sea freight sector. ITG’s parent company LGI Logistics Group International (LGI) will offer better integrated logistics solutions in the sector Fashion & Lifestyle. The joint venture with Dimerco, which is still subject to the approval of the responsible anti-trust authorities, will increase growth opportunities and enable even better penetration of the Asian market, as well as increased negotiating powers towards the suppliers.