An efficient and resilient logistics chain has given many businesses a growing competitive advantage in recent years. The role of logistics partnerships and 3PLs (third party logistics) operators in particular has grown, as leaders in various sectors have placed particular emphasis on optimising supply chains. This is reflected in the 2023 results of MV GROUP Logistics, a 3PL logistics services company.

“Logistics services are becoming an increasingly important part of the consumer experience and even the brand. As a 3PL operator, we therefore have a strong responsibility for the sales success of each customer. Our flexibility in responding to customer needs, smooth and high-quality operations, and joint planning of processes and volumes are key to our growing performance. As a result, we have been able to smoothly overcome even the biggest challenges of peak periods (summer season or Christmas),” says Darius Čypas, Managing Director of MV GROUP Logistics.

The company achieved record results last year: compared to 2022, its sales revenue grew by 9.4% to €10.2 million in 2023, while the state budget was supplemented by over €2.6 million in taxes. The highest warehouse occupancy in history and record order intake were also recorded.

The number of delivery points was 180,000, 4.8% higher than in 2022. The number of picking lines increased by 5.9% to 3.6 million. 22.3 million items were labelled. The number of pallets stored in the logistics centre averaged around 22 thousand per day in 2023.

Exclusive focus on FMCG logistics processes

Record volumes reflect the relentless growth in capacity and speed of operations, which is particularly important when dealing with fast moving consumer goods (FMCG). MV GROUP Logistics has many years of experience in this area and a deep understanding of FMCG, which gives customers a competitive advantage.

The 3PL operator has also adapted its warehouse space for the storage of beverages, alcoholic beverages, food, animal food, books and other goods. Integrated logistics services allow us to meet the needs of not only large customers such as MV GROUP Distribution, but also other businesses. The logistics operator works both with companies engaged in traditional trade and provides full logistics services for e-commerce businesses. The company has integrations with major courier companies and offers a very wide delivery geography.

“We are committed to ensuring that our customers can get everything from us, from warehousing and excise warehousing to labelling, order picking and delivery throughout Lithuania. We work in such a way that every company we serve no longer needs to have its own logistics department,” says Čypas and adds, that the ability to create a high level of freight consolidation allows the company to offer competitive prices to customers.

Customers support change and see the benefits

One of the company’s key objectives last year was to maintain a high level of operational efficiency. The company’s digitisation processes continued to be implemented consistently, with the successful upgrade of the customer service system, the introduction of the D365 Sales module of the sales administration tool, and the upgrade of the warehouse operating software.

Last spring, the Qguar Dock Scheduling ramp management system became fully operational at the logistics centre, helping to better manage the flow of goods arriving at the logistics centre. The system allows for the collection and provision of advance information on planned arrivals, allowing the logistics company to manage processes more efficiently. The value of MV GROUP Logistics’ innovations was quickly felt by customers, who saw their supply chain become more efficient and planning more convenient.

Employees are an essential part of a successful business

D. Čypas agrees that the constant innovations of MV GROUP Logistics change not only the everyday life of customers, but also of employees, encouraging them to improve their skills and competences. Work becomes simpler, more productive, higher quality and helps employees earn more.

“In order to keep our employees working well and loyal to the company, and to take into account changes in the labour market, we review our salaries and incentive system every year, and we are constantly looking for additional benefits for our team: more and more of our employees are taking advantage of the health insurance, and we are taking care of the commuting of our employees not only from other cities, but also from Vilnius. This year, we will continue to improve working conditions for our employees, take into account their opinions and suggestions, and in other ways promote employee involvement in the company’s activities,” emphasises the company’s Executive Director.

Have clear priorities

With 24 years of experience in the logistics business, the company is able to offer a wide range of solutions to best meet its customers’ needs. The logistics operator has clear plans with its existing customers to continue to grow together this year by expanding the basket of transport services, digitising processes and increasing efficiency. There are also plans to attract more e-commerce customers.

“By opening up new opportunities for our customers and continuing to offer clear added-value services, we are actively moving forward ourselves. We are expanding our 3PL services with the FMCG sector, focusing on the specifics and needs of e-commerce, and implementing projects to expand transport services. All this consistently strengthens our position in Lithuania and helps us to connect with new clients looking for more efficient services,” concludes D. Čypas.

Concrete solutions show progress

In the context of the ongoing digitisation processes, the Managing Director of MV GROUP Logistics points to the possibility of integrating different business management systems from different companies with the operator’s warehouse management software (WMS).

“We are flexible: integration can be implemented either through EDI service providers or by creating a direct interface between systems (API integration). We have experience in integration when starting cooperation with a new partner, as well as when existing customers decide to replace their existing ERP with a new one. Right now, one of our customers has successfully completed the implementation of SAP Business Management System (Systems, Applications, and Products in Data Processing) together with us”, – reveals D. Čypas.

The integration creates a data exchange between the two systems and enables the sharing of information on warehouse operations, stocks, orders and more. Businesses gain the ability to manage their supply chain more efficiently, improve responsiveness and increase efficiency, while reducing the risk of errors and the need for manual labour.

As business efficiency increases, so does the potential for sustainability. For example, the company has replaced its old flatbed trolleys with new ones that recharge their batteries up to 8 times faster than the old ones. This solution alone is expected to save 45,000 KWh of energy and reduce CO2 by 5.49 tonnes. The logistics company will also benefit from the increased sustainability of a 1 MW solar power plant installed on the roof of the MV GROUP Logistics building at the end of last year, which should fully meet the company’s electricity needs.

According to D. Čypas, the systematic approach and targeted changes made together with the customers last year resulted in obvious progress in different areas. However, he is confident that the record sales figures can be even better. Some of the breakthrough ideas and processes are still in their infancy, so their true impact will come later. With a long-term strategy, the business is investing in digitalisation, introducing new systems and tools to better manage warehouse operations, inventories, and orders.

This year, the company is further expanding its 3PL services for the FMCG sector, focusing on the specificities and needs of e-commerce, and strengthening its transport basket. Most importantly, according to the Managing Director, MV GROUP Logistics consistently takes care of its employees, striving to review salaries and incentive scheme every year and offering various fringe benefits as employees are an essential part of a successful business.