To insource our operations will also have a positive effect on our ability to broaden our supplier base, improve our gross margin and through improved efficiency in the supply chain reach cost savings at about 1 MSEK per year at current volumes. This is a major and important step for FlexQube on the North American market.
We are happy to see that Hutchinson chose to go with FlexQube for their plant transformations in Michigan where they aim to reduce forklift traffic and improve safety and efficiency.
We are very happy to see that the Liftrunner and FlexQube combination is a preferred solution with clear cost and efficiency benefits compared to both the current forklift driven process but also compared to other competing tugger train manufacturers and competitors for material handling carts in the marketplace.
This is very satisfying and an important milestone in the transformation from being a mechanical company to becoming a digital player with electrified and self-driving products.
We have invested a lot of time and capital into this project and it feels very positive to receive a formal order from a multinational automotive manufacturer like Daimler before we have even introduced the product to the broad market. The eQart® will be tested at a Mercedes-Benz service center and there is a potential for full roll out to all of the service centers worldwide later on.
By recruiting Jan Brettmann, who is a very experienced sales person, we aspire to quickly create a strong market presence resulting in new successful customer relations.
We have been convinced by the flexibility of FlexQube concept, their single solutions and moreover with the vision of FlexQube that reflects our strategy in the internal logistics.
Mexico continues to be a market with strong underlying growth and new plants are being established consistently.
These carts will help to improve the material flow at the plant and since we are designing several other cart types for the customer we expect this plant to become a great show room for our products on the West Coast of USA going forward.
We are extremely excited to have FlexQube listed on such a prominent exchange as Nasdaq, this will give us the ability to not only improve our growth internationally but ensure that our products are of the highest quality to help our customers become leaders within intralogistics
This is a large order for FlexQube and we are happy that the car maker Volvo Cars has chosen our products for this order. FlexQube will be able to help the customer adapt to sudden changes in container size, delivery methods or material presentation setups.
Multitube has demonstrated a great ability to deliver growth and their company culture is similar to the one of FlexQube with a young and curious mindset, aimed at creating the highest customer value among the competition. We really look forward to work with Multitube.
Together with FlexQube we can better fulfill our goal to improve the material handling processes for our customers and eliminate the need for forklifts. We have great expectations about FlexQube based on their expertise and services provided.
I am especially thankful to have us working with companies that deliver this environmental friendly product that will make our cities cleaner and less noisy.
All solutions work great and everyone appreciates it and they are very unique and that differentiate FlexQube from other competitors.
The customer is a prominent company with high expectations on intralogistics solutions and that they choose FlexQube is a proof of our performance level in design, fulfillment and quality.
In the first five months of this year our growth is 127% in FlexQube Inc. serving USA, Mexico and Canada with our products.
As part of transforming logistics operations and line feeding processes for our customer Kuehne + Nagel will use a combination of a market leading material handling train from STILL and FlexQube together with applicable concepts for material trolleys, to streamline material management and minimize forklift use on location.
This will allow us to increase efficiency and improve scalability as well as improve health and safety aspects of the operations.
When companies take over materials handling in contracts over a number of years, they need access to solutions that can be adapted and adjusted to the rapid changes in volume, mix and product. In order to offer the most competitive offerings companies also need to invest in technology that make material handling as efficient, safe and ergonomic as possible. Something that we, FlexQube, think we succeeded with in this project.
This is one of our largest orders within the home appliance segment and the largest one so far to Whirlpool, even though we before this order was received have FlexQube carts in three other Whirlpool plants in USA already.
The plant in Fall River has a need for the flexibility that comes with the concept (due to shorter production series and high mix variation) but the system is also more robust than other concept the plants has been trying out before.
Since the parts are put onto to the carts already when someone takes them off the shelf in the warehouse the number of times the components are handled by someone is reduced and the material flow setup becomes very efficient.
As in any other developed country, the expectations and requirements are high. The companies are striving for state-of-the-art manufacturing operations and we are in e.g. Mexico to help them achieve these goals.
The modular building blocks, that are the core of the FlexQube concept, makes it possible to quickly draft a design together with the customer and it also deepens the understanding about the possibilities with the concept from the customers’ perspective.
The segment has a major market potential and this project could be the first step to a growing business area for us.
The future proof solutions we can design and deliver using the modularity in our concept is unique when it comes to more robust industrial cart applications.
We are happy to see that we can continue to add prominent customers in United States and elsewhere as a result of our overall company strategy to target major corporations that traditionally used material handling carts and racks that has been welded together.
We have had a successful cooperation with STILL in the past and this agreement means that we will work together to form the future of intralogistics.