Smart Operation

Any list of global economic powers features China in the top two. While the events of the past five years may have slowed its growth down, China is by no means out.

This is especially true when it comes to logistics and manufacturing where, by anyone’s measure, China is still number one. All manner of technology, from 5G to automated vehicles, still flows from Chinese factories at a steady rate.

Underscoring this stream of technological innovation is the strong supply chain advantage the country enjoys. What may take a month in the United States or Europe could take a week in China, a reality industries are very aware of.

And for leading cargo handling company Kalmar, this makes China an important part of its global strategy.

“We cannot ignore China,” says Alex Tang, Kalmar Head of Greater China. “It has a major role to play in the future for Asia and beyond.”

Kalmar is facing greater competition than ever in China. The company, a division of Finland cargo and load handling solutions provider Cargotec, initially only had a presence in the South China region. After 15 years in sales and marketing at a United States automation firm, Tang made the important decision to join Kalmar in 2017.

“It was a great chance for me to take on a new level of management, which is a great progression from my beginning in sales,” he tells The CEO Magazine. 

“Having been with a United States company for so long, it was also a good opportunity to try a different style of company culture.”

Despite its global reach, Kalmar has remained very European in terms of its culture, a factor Tang says extends to his team.

“Kalmar Hong Kong and Kalmar China Mainland are like a big family,” he says. “We work very closely and everyone’s always smiling and full of energy. It’s a great atmosphere for productivity.”

The other aspect of the job that attracted Tang was the emphasis on automation.

“Every industry has a use for automation,” he says. “Infrastructure, pharmaceutical, manufacturing, transportation – it’s that versatile. Kalmar is a global leader in this area, so I’ve been able to glean deep insights into how automation can be used in heavy logistics and port terminals, and where it’s heading.”

Impressive Milestones

Tang arrived at Kalmar as Director of Sales in 2017, three years before the world of logistics was thrown into turmoil by the COVID-19 pandemic. Being in China, so heavily dependent on supply chains, meant there was even greater urgency to get back to normal.

“China took very different action for pandemic control compared with other countries,” Tang recalls. “We were very quickly back on track, and for the first two years post-pandemic, demand remained high. We sold many machines at that time, and we won the market share.”

With a strong position in a very active market, Kalmar is set to grow in significant ways as the future arrives. Its Shanghai factory, built in 2005, has the capacity to service not only the local market, but wider Asia and Australia beyond – a testament to the company’s forward-thinking design.

“We’re in the right place, being in China. The market size is big, demand is strong and all our competitors are close by,” Tang says. “As market leader, you should know who’s number two, who’s number three. That knowledge can help maintain your advantage.”

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Meanwhile, Kalmar plans to continue investing in its resources in China. The Shanghai plant, which manufactures high-end cargo handling machinery, is flexible enough to respond to the market’s demands.

To better demonstrate what’s possible in the industry, in December 2022 Kalmar outfitted the plant with advanced digitalization technology known as Smart Factory Mode. A series of digital planning systems, Smart Factory Mode takes the Shanghai factory’s lead time, productivity, quality control and safety to new heights.

Just six months later, the plant completed its 6,000th machine, a milestone for the company. In the same year, Kalmar announced that electric reachstacker and 16-metric-ton forklifts would be manufactured in the Shanghai plant.

“We have such a good supply chain advantage here in China not just currently, but into the future,” Tang says. “So it makes sense to continue to invest in our capabilities here, especially manufacturing.”

Stronger Together

The location has also allowed Kalmar to forge strong partnerships with local manufacturers and vendors in China, including Jiangsu Rainbow Heavy Industries and Jiangsu Teeyer Intelligent Equipment.

“We’ve built up very good relationships with major vendors here,” Tang says.

“We still need to import certain components from Europe, but in many cases we can use local companies. One of the benefits for them is that we share standards requirements and provide suggestions and advice on how to improve their quality and output. That way, it becomes a win–win partnership.”

“Everything should be about driving the result. You might not be able to achieve 100 percent of what you set out to do, but you should have the result.”

As the person in charge of this significant operation, Tang says his leadership style falls somewhere between manager and coach.

“We call it directive and pace setting. It’s important to find the right approach to help your team improve,” he says. “I’ve had some very good leaders during my career, and all of them had strong common sense. They had very clear insights into industry trends, as all leaders should.”

Those insights can help a team or a company not only set targets, but stay on track to meet them.

“The leader with strong insights and a clear mind never gives up and finds every way to achieve those targets,” Tang says.

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With a strong safety record, a smart factory and a top-tier position in the market, it seems that Kalmar has benefited from Tang’s strict adherence to these principles.

“Whether you take one day or one week to figure out a plan, it’s then something you stick to,” he says.

“And it’s my job to support my team and empower them to implement the plan. No matter the resources, no matter the coaching, no matter how tough the competition, we’ll never give up.”