TGW Logistics : Performance and Growth

Poppi BurkeEd Budds
At A Glance
  • TGW Logistics is a leader in manufacturing, designing, implementing, and maintaining highly automated, future-proof fulfillment centers for a multitude of industries, such as fashion and apparel, grocery, and industrial and consumer goods.
  • “The best automation in the world is worthless if it isn’t reliable and doesn’t achieve the committed availability rates needed to meet SLAS,” says Stipe Galic, Vice President of Business Development, TGW Logistics.
  • Now boasting over 4,500 employees, TGW Logistics combines its wealth of expertise, innovation, and customer-centric dedication to help keep its clients growing and transform their warehouse logistics into a smooth and efficient operation.

TGW Logistics offers a comprehensive suite of end-to-end automated systems and modular technologies designed to overhaul fulfillment operations from the ground up and solve a variety of workflow challenges. Vice President of Business Development, Stipe Galic, tells us more.

PERFORMANCE AND GROWTH

Automation can be quantified as the use of machines or technology to perform tasks with a reduced need for human intervention, an innovative approach that looks to streamline processes, enhance efficiency, and reduce human error. 

As a result, the use of automation is becoming increasingly prevalent across a plethora of different realms and domains. 

Within this burgeoning landscape, TGW Logistics was created in 1969 when Ludwig Szinicz and his friend Heinz König transformed a small metalworking shop in Wels, Austria into what would become one of the world’s most renowned and trusted names in warehouse automation and logistics.  

“Today, we’re widely considered a global leader in manufacturing, designing, implementing, and maintaining highly automated, future-proof fulfillment centers for a multitude of industries, including fashion and apparel, grocery, and industrial and consumer goods,” opens Stipe Galic, Vice President of Business Development. 

“Our comprehensive approach ensures that we deliver solutions designed to enhance performance, tackle complex supply chain challenges, and transform distribution centers into strategic assets that support and drive our customers’ growth in an increasingly unpredictable future,” he follows up.   

 TGW Logistics is a foundation-owned company, still headquartered in Austria, and a trusted systems integrator with more than 50 years of experience. 

Now boasting over 4,500 employees spanning Europe, Asia, and North America, TGW Logistics combines its wealth of expertise, innovation, and customer-centric dedication to help keep its clients growing and transform their warehouse logistics into a smooth and efficient operation. 

“We are a one-stop solutions provider, offering not only cutting-edge technology for distribution centers but also the essential software to ensure seamless operations. Our focus extends beyond simply implementing technology – we strive to make life easier for operations teams by creating smooth, efficient, and user-friendly solutions. 

“With our extensive global presence, we are able to provide this full range of technologies, services, and expertise in all our locations worldwide,” Galic prides. 

INNOVATE, INTEGRATE, ELEVATE

TGW Logistic’s impressive array of solutions are delivered through three key business areas – Integration Business, Distributor Business, and Lifetime Services. 

“As a systems integrator, we design, implement, and maintain fully integrated and highly automated warehouse systems, as well as modernize warehouses to make them future-ready – this is the biggest portion of our revenue streams,” says Galic. 

“From concept and detailed planning to execution, we ensure a seamless experience from design to implementation and beyond. By analyzing our customers’ current and future needs, we match them with the right designs and solutions to drive efficiency. 

“Our goal is to deliver best-in-class process flows that optimize cost per piece handled, because it’s not just about selling technology – it’s about creating smarter, more effective operations,” he furthers. 

TGW Logistics expertly empowers businesses to move, store, and pick goods reliably, transforming operations with smarter, faster, and more adaptable processes that are prepared and ready for anything the future brings. 

The second key portion of its operational umbrella is represented through its Distributor Business, which provides mechatronic technologies to other systems integrators. 

“We partner with intralogistics system integrators to provide high-performance subsystems and leverage our deep industry expertise to navigate market opportunities together. 

“By providing best-in-class technology, we empower integrators to deliver exceptional results for their clients,” Galic affirms. 

The third key portion is Lifetime Services. TGW Logistics’ service packages ensure maximum warehouse availability, protecting investment with tailored support options – from essential spare parts to 24/7 virtual support to full-service on-site maintenance and more. 

With guaranteed 98 percent system availability, real-time visibility, optimized operations, and reduced ramp-up times, businesses can focus on meeting service level agreements (SLAs) and growing their operations with confidence. 

“The best automation in the world is worthless if it isn’t reliable and doesn’t achieve the committed availability rates needed to meet SLAs,” Galic affirms. 

Stipe Galic, Vice President of Business Development, TGW Logistics

“The best automation in the world is worthless if it isn’t reliable and doesn’t achieve the committed availability rates needed to meet SLAS”

Stipe Galic, Vice President of Business Development, TGW Logistics

SMARTER SUPPLY CHAINS, STRONGER BUSINESSES

One sector in which TGW Logistics continues to play a pivotal role is the broader retail industry, a dynamic and rapidly evolving market shaped by shifting consumer expectations, technological advancements, and increasing pressure for operational efficiency. 

Consumer behavior is changing at an unprecedented pace, influenced by digitalization, e-commerce growth, and the need for seamless omnichannel experiences. Retailers must continuously adapt their supply chain strategies to keep up with demand fluctuations, shorter delivery windows, and the rising preference for sustainable practices. 

The industry also faces ongoing challenges in attracting and retaining skilled labor, further compounded by shifting workforce demographics and evolving job expectations. At the same time, rapid technological innovation requires businesses to stay agile, integrating new solutions that enhance efficiency and scalability. 

Historically, many retailers primarily focused on product development and brand positioning. However, in today’s landscape, an optimized supply chain is no longer just a support function – it has become a key driver of strategic success. Efficient logistics and distribution networks are essential to navigating increasing complexity, meeting customer demands, and maintaining a competitive edge. 

Recognizing this, TGW Logistics takes a holistic approach to understanding its customers’ supply chains, ensuring they remain agile and resilient in an ever-changing business environment. 

“It is not enough to focus solely on warehouse automation – we must also consider the unique challenges of modern retail logistics and stay ahead of emerging trends,” explains Galic. 

Beyond offering a diverse portfolio of automation solutions, TGW Logistics supports its customers with a dedicated team of industry experts who assist in identifying and implementing the right technologies to build adaptable and future-ready distribution strategies. 

“Our commitment lies in helping businesses address these challenges by continuously researching industry trends and developing solutions that enable retailers to optimize their logistics operations,” he adds. 

Automating a distribution center involves the seamless integration of various systems and technologies, connecting operations from inbound processing to outbound fulfillment. 

“We analyze the entire end-to-end process to design the optimal combination of technologies that meet both current and future business needs. Our tailored automation solutions cover all critical processes within the distribution center, ensuring that software and systems work together to coordinate and manage operations efficiently.”

A VALUE-BASED FOCUS

In 2004, TGW Logistics’ co-Founder, Ludwig Szinicz, set out to transform his company into a foundation-owned organization with a bold mission. 

“He believed that the company is not just a purely economic partnership of convenience, but a community of shared values driven by a purpose and follows the mission of its foundation,” Galic tells us.   

“This community enables personal and technical growth as well as entrepreneurial success. We believe our values-based culture will carry us into the future and foster continued growth – not just for our business but also those who drive our success,” he expands. 

For TGW Logistics, this unwavering commitment to both employees and customers, paired with cutting-edge innovation in warehouse automation and logistics, makes anything possible. 

Elsewhere, as the owner of TGW Logistics, the TGW Future Private Foundation safeguards the company’s long-term vision.

By reinvesting two-thirds of its profits into employees and the technologies of tomorrow, the foundation fuels innovation and creativity in the fields of warehouse automation and logistics. 

TGW Logistics cannot be sold and cannot be bought, making it a reliable employer, financial partner, and pioneer in automated warehouse solutions. 

In addition, 10 percent of its profits are dedicated to charitable projects, reflecting the company’s belief that thriving in this industry can and should make a meaningful impact on society. 

“At TGW Logistics, success isn’t measured solely in numbers – it’s reflected in how we interact with one another, what our customers think about us, and profits through principles. We are here to make things possible and create strong supply chain backbones which allow businesses to navigate ever-evolving industry demands. Our core values form the foundation of our corporate culture, shaping our relationships, decisions, and approach to harnessing innovation,” outlines Galic. 

“They empower us to create fulfillment solutions that push boundaries and inspire progress in warehouse logistics.” 

Today, through a unique combination of business success and social responsibility, the company remains a leader in warehouse automation and a model of exemplary entrepreneurship. 

“It’s how we ensure sustainable growth together – today, and for generations to come,” Galic finishes.

TGW LOGISTICS PARTNERS

A License Begin

Share This Article
Project Manager
Follow:
Poppi Burke is a Project Manager for Supply Chain Outlook. Poppi is responsible for showcasing corporate stories in our digital B2B magazines and Digital Platforms, and sourcing collaborations with Business Leaders, Brands, and C-suite Executives to feature in future editions.
Editor
Follow:
Ed Budds is an in-house writer for Supply Chain Outlook Magazine, where he is responsible for interviewing corporate executives and crafting original features for the magazine, corporate brochures, and the digital platform.