European standards in logistics on the Macedonian market - Lidl's largest logistics center in the Balkans

Logistics is a part of retail that is rarely visible to consumers, but plays a key role in the daily functioning of stores. From the organization of transport and storage, to quality control and timely delivery, it is a process that requires a high level of coordination and precision. That is why Lidl's logistics center in Kumanovo, which is Lidl's largest logistics center in the Balkans, is a very important part of the company's preparations for starting operations on the Macedonian market.

The news portal "Biznis vesti" interviewed Stojan Minev, Director of Logistics, Supply Chain and Sales at Lidl North Macedonia, about the European standards applied by Lidl, about the quality control systems and about the significance of the new center for the future development of the company in the country. Stojan Minev has been with the company since 2010. He started his career at Lidl as a store manager and over the years has progressed to several positions, from regional sales manager to sales director, and for the last two years he has been living in Macedonia with his family and managing logistics, supply chain and sales.

1. When talking about retail, most of the attention is focused on the stores and products. But how important is logistics to Lidl's operations?

When most citizens enter a store, they think about prices, the assortment or whether they will find the product they need. Few people think about the path that the product has taken before reaching the shelf. And it is precisely in that path that one of the most important functions in retail lies, logistics. At Lidl, logistics is one of the most important pillars for supporting operations. It is very important for us to provide our consumers with fresh and quality products every day. Therefore, precise coordination is needed for products to maintain their quality and freshness, starting from the producer and all the way to the consumer's basket. We achieve this by combining economies of scale with centralized and automated logistics, which allows us to reduce costs and delays in the supply chain. In this way, every day we offer our consumers fresh and quality products at the best possible price. 

Our advantage is that we are part of the largest and most developed logistics network in Europe. Lidl today operates in more than 30 countries and has an extensive network of logistics centers that enable efficient movement of products throughout the continent. Instead of each supplier organizing separate deliveries to different locations, the products are delivered to the Lidl logistics center where quality checks are carried out, and the products are stored in standardized conditions as in every Lidl logistics center across Europe. 

2. The logistics center in Kumanovo is Lidl's largest investment in the country. What will this facility actually mean for the future operations of the company?

The logistics center in Kumanovo is an investment of 115 million euros and is Lidl's largest logistics center in the Balkans. The center has strategic importance for all of Lidl's operations in Macedonia, a central location through which all products will pass before reaching the stores. From there, the supply, storage and distribution of thousands of products will be managed every day. It is a facility built according to the highest standards of sustainability, energy efficiency and modern logistics. It has an area of ​​67,000 square meters and a height of 20 meters, and has over 47,000 pallet spaces. 

The logistics center is a reflection of our vision for the long-term development of the company's retail network in the country. Each Lidl logistics center, including this one, has separate zones for different product categories, with strictly controlled temperature regimes and storage conditions. The products will move through a system that allows for fast receipt, efficient storage and timely delivery to the stores, with precise traceability of the products at all times. This model allows for a significantly shorter time from receipt of the products to their delivery to the stores, which is especially important for fresh categories, such as fruit, vegetables, meat and dairy products. 

The center will also play an important role in the further integration of Macedonia into Lidl's European logistics network, which, in turn, will mean more efficient connection with other logistics centers in Europe, better transport planning and additional cost optimization. 

In addition to its operational significance, the Logistics Center in Kumanovo also has a strong economic dimension. More than 75 domestic companies participated in the construction, which is a significant contribution to the domestic construction sector, transport companies, engineering services and numerous other activities related to the implementation of the project.

3. How will the operation of the logistics center affect the creation of new jobs and what will it mean for employees?

The operation of the logistics center will contribute to the creation of around 230 new jobs, which represents a significant investment in the local economy and labor market. The recruitment process for new employees is currently underway, followed by a comprehensive training and professional development program, in order for them to acquire the necessary knowledge and skills to work in a modern logistics environment.

Lidl pays particular attention to the development of its employees, but also to providing high-quality working conditions. The company continuously invests in the most modern technological solutions, as well as in the health, safety and well-being of employees. The same approach has been applied in the design of the logistics center, which has been built in accordance with the highest standards of safety, efficiency and sustainability. The working environment is designed to provide safe, comfortable and modern working conditions, enabling employees to perform their tasks in a pleasant atmosphere.

4. You mentioned fresh fruit, vegetables, meat and dairy products, how complex is it to maintain their quality? What are your experiences?

Each product has its own specifics and requires different storage and transportation conditions, with even the smallest deviations affecting the quality and safety of the product. Therefore, in our logistics centers there are special temperature zones, adapted to different product categories. Temperature and humidity are continuously monitored through digital systems and sensors placed at multiple points. In sensitive categories, alarm systems are also used that react even before the parameters reach the maximum allowed limit, allowing for timely intervention. 

Freshness, however, does not only depend on storage conditions, but equally important is the speed with which products move through the entire supply chain. Therefore, orders from stores are planned and renewed daily, which allows products to reach consumers faster and they receive a quality and fresh product, and to avoid the creation of unnecessary stocks. Freshness is maintained at every step of the process, from the moment the product is taken over by the supplier, through transportation and storage, until its placement in the stores. That is why the logistics process and its precise management are considered one of the essential ones in retail today. 

5. In its appearances, Lidl often emphasizes that it is a company that brings not only new markets, but also new standards in the country and the market it enters. Can you explain to us what this looks like in the field of transport and logistics?

We are not focused only on our own processes, but also on the development of the companies we work with. A good example of this is transport companies. In order to be able to work according to Lidl standards, they need to have modern vehicles and technologies that enable precise control of transport conditions. Some of our business partners need to make an additional investment to achieve the criteria we require, but this in turn has a positive impact on their business in many aspects. In Lidl, they get a long-term partner, and they also become competitive for cooperation with other European partners because often what we require as Lidl are actually criteria that apply throughout all member states of the European Union. From my experience at Lidl, which I have had for 15 years, I can say that such standards change the entire sector over time. Companies invest more, services improve, and this ultimately has a positive effect on the entire economy.

6. One of the topics that is becoming increasingly important in retail is how to reduce the amount of unsold products and materials. How does Lidl approach this issue?

One of our goals is the proper management of materials that remain after operations, but also their maximum use. That is why we do not want to talk only about waste, but about materials and products that can regain value. In the logistics center, all materials are selected according to different categories. We are talking about more than ten different fractions, such as plastic, wood, metal, various types of foil, textiles, electronic equipment and other materials. For each of them, we are looking for a solution that will enable reuse or recycling. Our ambition is not just to hand over the plastic or paper for recycling, but we are interested in what will happen next and whether a new product will actually be created from these materials. A good example is the roof panels that are also installed in the logistics center in Kumanovo, and are produced from recycled materials from the Lidl system. 

We are also working on establishing long-term partnerships with companies that can provide sustainable solutions for the use of different types of materials and products. Our goal is for as few resources as possible to end up without a purpose and for as many as possible to remain part of a circular process of use, which will also support the circular economy.