The utility of storage

1. The evolution of the concept of storage

In the logistics system of the company, the storage of goods includes a set of
support activities that help achieve customer service objectives.
The existence of warehouses is considered a necessity for many companies. Definition
the typical association with the concept of deposit emphasizes that, in essence, this is a space of
storage of goods inventory. The warehouse has often been defined in the literature as
specialty as a special place designated for the sheltering of goods deposited for storage,
with the mutual consent of the depositor and the depositary.1
Storage was initially considered a necessary activity but one that generated costs.
concept has changed substantially over the course of the 20th century, reaching that for
the 21st century should be considered as an ideal objective regarding storage, continuous reduction
of merchandise stocks that are not in motion, until a movement is made
quasi-continuous. The ultimate goal will be to eliminate the need to store, at any point of
network, including between production units, between them and customers.
The storage of goods will change in the future, under the influence of mutations in
the field of supplier relations, production, and distribution. The extent of the changes
the field of storage will depend in the 21st century on the capacity for innovation of
logistics managers, for increasing the efficiency of operations and the level of service of
of clients.2

The role of warehouses

2.1 A vision of the 'yesterday' role of the repository

The role and development of warehouses for goods must be deepened taking into account
the current and future needs of the national economy, based on the conclusions of a
ample and demanding analyze the existing network of warehouses, simultaneously applying
positive results, the fruit of modern trends manifesting globally in
this field. However, this aspect was realized quite late. Only in the '80s,
attention has been directed towards improving the warehouse configuration and techniques for
manipulating goods.
If we take, for example, the state of management and exploitation of goods storage facilities
existing in Romania before 1995, it was presented as follows:
the existence of a network of warehouses of physical and economic capacity
micro or average, many with a modest level of technical equipment, or with a level
of advanced relative physical and moral wear and tear;

1
Rene Jacob, The Storage Stores, Editions d'Organisation, Paris, 1979, p 35
2
Carmen Balan, Logistics - an integral part of the supply chain - delivery, 3rd edition, Bucharest, p
214

1
 2. the physical or economic capacity of the deposits was fragmented into several
separate buildings, located in different localities, which made it quite
appropriate management of stock management:
3. lack of basic mechanical means of horizontal transport and
the vertical of goods had a negative impact on the indicators of
efficiency;
4. inappropriate placement of some warehouses in city centers, without them
has car or railway ramps, affecting the assurance of fluidity
physical fluxes;
5. lack of a clear policy for equipping warehouses with management equipment
modern inventory that ensures operational and efficient connections in
the interior of the distribution chain
6. the absence of a modern concept that meets the requirements of
market perspective regarding the development of a program for development
long-term and of a corresponding network of deposits. Significant funds
they were consumed for the modernization of some old and unsuitable warehouses, in
where new warehouses should be built to meet modern requirements;
7. the absence of a promotion policy through the use of deposits
market, belonging to both producers and enterprises
commercial. Competition between deposits, in the market economy being a requirement
fundamental for ensuring success in business.1

2.2 The deposit and its role 'today'

If the initial role of the warehouse was to store goods or merchandise, today
the management of companies acknowledges that it represents more than that. Viewed in form
The physics of deposits are spaces, respectively storage points, that are implanted in the road.
the physical movement of a product from the manufacturer to the end user (beneficiary).
The location, design, and selection of storage spaces located at the points
nodes of the physical circuit of products, in order to fulfill conditions of efficiency
the role that belongs to them involves numerous decisions that include the deployment
certain activities and the provision of services that can have a particularly important role
for product logistics.2
Thus, the role of warehouses has become a complex one resulting from the following
considerate:
I. Coordination of supply with demand.
This aspect of the role of warehouses is related to ensuring the quantities of products.
necessary to meet the demand in situations characterized by:

1
Horia Dorobantu, "Management of Goods Distribution" Macarie Publishing, Bucharest 1995, chapter 4, page
125-126
2
[Link] Ristea, “Distributia marfurilor” editura Didactica si Pedagogica, Bucuresti 1996

2
 Uncertainties regarding demand that arise due to the inability to estimate with certainty
future requirements, which necessitates maintaining stocks that allow for
satisfying demand during peak periods.
•Incertitudini privind ciclul de performanta, strans legate de capacitatea de a
honor customer orders on time.
Seasonal demand related to customers purchasing certain products only in
certain times of the year.
Seasonal production, which involves the need to store in the warehouses of
goods produced within a limited period of time.1

II. Achieving cost savings.

Storage can lead to cost savings in various areas.
precome:
Purchase. It has two aspects: one relates to the possibility of acquiring some
larger quantities than those immediately necessary that allow for valorization
quantity discounts granted by suppliers and another aspect relates to
anticipating an unfavorable situation in the supply market that allows
saving money by purchasing in advance, at prices lower than those
future.
Producing in large batches ensures better utilization of manufacturing capacities.
it is the relative reduction in costs per unit of product.
Transport. Transporting in bulk quantities is cheaper than
small transports; shipping in large quantities is done over long distances:
manufacturer-distribution warehouse and the shipment of small quantities can be
limit on short distances;2
III. Continuation or postponement of production/processing.
The modern concept of storage supports the postponement of the completion of the process of
processing until the characteristics of the demand are known.

IV. Achievement of some marketing objectives.

Through the role that storage spaces play in satisfying customer demand, between
storage and marketing have a close connection that contributes to achieving the objectives of
marketing principles
Reducing delivery time by placing warehouses nearby
clients.
Adding value through: the existence of public warehouses and dedicated ones
contractual bases because they can provide different services, respecting
market requirements. Private deposits have the potential to provide better control,
lower costs and increased flexibility compared to rented warehouses in
special in case of constant requests or when skills are needed
storage special Thousands of companies are created to provide space for
short-term deposits for other companies. They offer many of the same services

1
Carmen Balan, Logistics - an integral part of the supply delivery chain, 3rd edition, Bucharest, p
215-216
2
[Link] Ristea, “Distributia marfurilor” editura Didactica si Pedagogica, Bucuresti 1996

3
 what would be carried out in the case of private warehouses: receiving goods, storage,
teaching and related activities. Public and private deposits are similar to
the carrier in transportation compared to the company's personal bus base.
The American Warehousemen's Association encourages the expansion of these warehouses.
providing spaces for their arrangement and also proposing new services
to offer.1
Increase presence on the market by maintaining the loyalty of current customers and
attracting new customers, which leads to an increase in market share.

2.3 The role of the warehouse when it transforms

in a distribution center

Looking at the warehouse from a new perspective, Gerry Hatton presented during
the book "Logistics and Distribution Management" coordinated by John L. Gattorna, a
a new vision for the warehouse.
How today’s 'just in time' techniques can significantly reduce the workload
the depositors, for this reason, the use of the term center is starting to be preferred
distribution, instead of that of storage.
Although to a certain extent the difference is significant, it also represents a
change of concept. We need to build an image of the warehouse where the goods
moves constantly towards the final destination contributing to minimizing the time of
storage and the corresponding costs.
The main functions of a distribution center are considered to be:
1. The reception that replaces functions such as quality and quantity checking.
2. Storage that includes the task of moving goods from the reception location to
the storage cell.
3. Order takeover - which often includes the transportation from place of
storage at the loading place of goods after carrying out some checks
supplementary to their packaging place.
4 The shipping of goods which may sometimes include stacking or storage
intermediary of goods.
As can be seen, most of the functions concern transportation activities.
of the goods. In fact, if we take into account all the costs except for the cost
of the stock, the storage cost will only be between 20-30% of the total cost then
when the products are taken in boxes or other smaller sized packaging.
Therefore, the transition from the concept of statistical storage to a
deposit at the distribution center.2

Ronald H. Ballou, Business Logistics Management, Third Edition, New Jersey, p 277
1

John L Gattorna, “Managementul logisticii si distributiei” , Editura Teora 2001, cap 12, pag 162
2

4
 3. The functions of deposits

In order to fulfill its functions, any storage unit organizes a series

of activities, all of which involve making a variety of decisions.
Storage can be done for a longer period of time or the products can be in
transit. There is also a wide variety of legal and financial aspects,
all assuming the collection of information and finding alternatives that allow
efficient integration of warehousing in the logistics chain.1
As the warehouse is now at the forefront of company mobility, it has
Implement complex functions. For each deposit, the range of functions and importance.
which depends on numerous factors, including:
the owner and user of the storage space;
their policy;
the specifics of the supplier and customer base;
the scope of the user's activity and the goods that are subject to
the depositors.
A structural presentation captures the functions of repositories as follows
classification
I. Functions of movement:
Receiving products (download)

Storage/keeping (handling)

Commissioning (order formation)

Expedition

II. Power supply functions:

Short-term storage;

•Long-term storage, determined by:

seasonal solicitations
request caps
maturation of products (wine, fruits)

marketing actions2
We will also analyze a more complex classification that emphasizes the importance of each.
functions within the storage process as well as the entire logistics process:

Virgil Balaure, “Marketing”, editura Uranus , Bucuresti 2002, p 468

1

[Link] Ristea, “Distributia marfurilor” editura Didactica si Pedagogica, Bucuresti 1996

2

5
 The preservation of goods is the traditional function of the maintenance warehouse.
stocking of goods and their protection. In terms of the duration of product preservation
in stock, in practice there are several options:3
• Long-term storage for production or consumption within the limits of a
season. The warehouse can maintain the necessary products to meet the demand at
the right moment.
Seasonal storage. For this, it is much more profitable to resort to
appropriate deposits for strategic markets, which are supplied from the deposit
the central of the company, shortly before the start of the season.
•Temporary storage. Such storage is used in cases where
the products are kept in the warehouse until the completion of deliveries that use
complete the capacity of transportation means.
The creation of certain products such as cheeses, wines, and liqueurs requires a
aging period. Storage is not only for preserving certain products because in
in the case where the products are taxed, the warehouse operator can also provide bonds up to
the sale of the product. Storage can also be used so that the manufacturer does not
pay taxes until the sale of the product.
The term of sale deposit is primarily used only to differentiate between
the deposits used only for this purpose of storing products. The difference is made by
emphasis is placed on the activities that take place in it and on what period of time they are carried out
store the products. A storage deposit implies that most of the space is
allocated for long-term or semi-permanent storage. In contrast, the distribution deposit
most of the space is allocated to short-term warehouses and emphasis is placed on
the debit of the entry and exit of products from the warehouse. Of course, most warehouses do
Both activities, of storage and selling, the difference is their percentage.2
II. Strengthening deliveries.
The consolidation function is necessary in situations where the required quantities...
the client's from each source are too small to justify individual transports.
The advantages of consolidation are:
obtaining lower transportation rates
the reduction of total distribution costs for each producer, compared to
the situation in which goods would be distributed individually
decongestionating the client's unloading platform
III. Parceling of the lot. The deposit takes on this function within several
variant:
a) When the source is a single producer, the warehouse receives from the company
producer, a combination of customer orders and delivers the goods to
individual clients, without keeping the products for a long period.
The warehouse receives goods from several producers.
IV Creating a range structure. Depending on the source of origin of
of products, this function is fulfilled under two options:

3
Carmen Balan, Logistics - an integral part of the supply chain - delivery, 3rd edition, Bucharest, p
217
2
Ronald [Link], Business Logistics Management, Thirt Edition, New Jersey, p 238

6
 a) the production units of the same company when the warehouse receives goods from
multiple factories of the manufacturer and delivers to customers a combination of products
b) different firms in case the assortment includes multiple product lines from
various suppliers
Thus, clients can enjoy a series of advantages:
reducing the number of suppliers with whom it needs to establish relationships
each client
lower transportation costs than in the case of supply by each
client, in individual mode, from the supplier
ensuring a diversified assortment structure, adapted to requirements
clients
In Providing value-added services. The most common services that
The value added consists of those related to the packaging of goods.1Main ones
the advantages offered are: - meeting customer demands regarding packaging and labeling
reducing the risk due to the completion of packaging and labeling in
based on the received commands
the decrease in the necessary stock level, given that the same
Product received from suppliers is used to create configurations.
adapt to customer requirements
Value-added services also refer to the assembly of components.
of product or correction of some production issues.
In order to fulfill these functions, it is necessary to carry out some operations of
manipulation of products:2
Loading and unloading. These operations occur when goods are
received at the warehouse and then delivered from the storage space. Their deployment is
related to a series of activities that follow them. After downloading, they are performed.
sorting and control activities followed by the final verification of the loading.
of the orders and establishing the delivery order of the orders.
•Movement to and from the storage surface. From the place where I am
unload, the goods are oriented towards the storage area, then towards the area of
expedition or execution of orders.
•Execution of orders. Depending on the sequence in which the orders are received,
the goods are picked up from the storage area or from the warehouses
temporary.

4. The deposit - role and function - profit generation

As companies strive to eliminate inefficiency within

operations, seeking new technologies and strategies for capturing, moving, and managing
data from warehouses.3

1
Kennet B. Ackerman, Value-Added Warehousing cut Inventory Cost, in 'Transportation and'
distribution, July 1989, p 32-33
2
Ronald H. Ballou, Business Logistics Management, Third Edition, New Jersey, 1992, pp. 244-245

7
 Certainly, the mobility of warehouses is relevant for almost any organization.
that holds a logistics system. The largest companies, regardless of the industry they come from
they have transformed the deposit operations in such a way as to improve accuracy
forecasts, to manage the deliveries of orders as well as possible and to increase
the profits. The specific operations of the warehouses, in one form or another, play a role
important in almost any type of industry, in any geographical region.
Each company needs a unique warehouse management solution, depending on
the particularities of their own business, the market conditions in which they operate, and the geographical ones.
Companies in Central and Eastern Europe have not heavily invested in coding technology.
bare in the past, so today they rather have operations based very much on
physical documentation. In their recent efforts to improve their position
the competitive seeks the most efficient solutions, possibly skipping an intermediate step that has not
made on time towards the barcodes. Therefore, in choosing a partner for a
deposit solution, account must be taken of his expertise in the respective industry,
to capitalize on the knowledge they possess. Implementation partners must
understand the specific functions in logistics across various industries, and at the same time, must
to be able to explain best practices from the respective industry.

IV.1 Scalable logistics solutions

The current trend is oriented towards specialized, tested, integrated logistic solutions.
adaptable and at a reasonable price, covering the entire supply chain (Inventory,
Production, Storage and Distribution), and which is based on the latest technologies,
as well as open architecture, to protect the client's investment. The availability of some
such solutions allow companies of all sizes to choose a more investment
which will deliver faster results while keeping the option to invest in features
suplimentare pe viitor, pe masura ce nevoile organizatiei cresc.
Currently, there are specialized logistics solutions in most cases.
these are based on outdated technology platforms that are not adaptable and do not
benefit from other modern features. The economic difficulties of recent years have not
permits specialized software providers for logistics to fund updates of
their applications, through the use of new technologies.
In Romania there are very few options for such scalable designed products.
special for logistics activity management. Recently, the company Novensys has
a partnership with the company Mantis from Greece has been concluded, which identified these requirements of
the market has made a substantial investment of over 3 million EUR since 2001,
to conceive and develop the third generation of the Logistics Vision suite (LV-III),
the renowned product of Mantis from the software module range for chains of
Logistics Vision III, which was launched at the beginning of 2004, is the successor
the first two generations of Mantis from Logistics Vision, launched in 1997 (LV-I) and
respective 2000 (LV-II).

4.2 Information available from any corner of the business

3
[Link] Market Watch IT&C:: The number 88
[September 2006]:: Distribution - Retail

8
 Both the implementers and their clients must view the deposit as part of
the logistics chain, part of the company. Companies can gain more value from
the business, if I hold real-time data not only about activities at the center, but from
activities carried out across the entire company. Only when the information is
available from any corner of the business throughout the company, one can speak of
the true benefits of mobility and management and automation solutions
logistics activities.
On the mobility side, there are numerous companies that talk about this.
a global concept. Symbol is one of the companies that has established itself over the years.
of time, initially only in the USA, after which globally, through technologies
developed and implemented within specific mobility solutions for logistics.
It can be said that Symbol is one of the few companies that has tried to ...
improve the portfolio with products that truly meet the existing demands in
deposits. Resistance is one of the points that must be considered when using some
mobile terminal in deposits. Users of Symbol equipment can rest assured,
because their products are tested under conditions created in special environments, similar to
celor din depozite, atat pentru functionare cat si pentru rezistenta la cadere sau alte
dangers. Having a very well-structured strategy to cover the needs related to
mobility with a wide range of products has finally managed to be the only company
that can prove it offers complete end-to-end solutions for capturing, moving and
data management.
In Romania, Symbol is present through a network of partners consisting of Resellers.
Authorize only one Premier Business Partner: the company Novensys, which also has
the oldest partnership relationship with Symbol in Romania.
The dedicated software Logistics Visions, offered on the market by Novensys, is a family
latest integrated applications that allow large and medium-sized modern companies to
manage and optimize the entire supply chain. This includes the most
bune practici ale corporatiilor multinationale de varf de pe majoritatea pietelor.

4.3 100% - coverage of deposit needs

The evolution of Novensys over time has facilitated the improvement of the portfolio and
expanding it with products that meet a large part of a company's needs that
it defines a logistics system. At this moment, the Novensys solution offers: data capture
by barcode readers, data transmission through wireless networks, management
the management of all equipment through an integrated platform and the management of all
logistics activities through specific applications. If we look at the company's portfolio,
we will observe that it covers the software part through the suite of applications developed by Mantis,
and the hardware part - mobility through the partnership with Symbol. Such a portfolio
they have a great advantage: customers do not have to mix & match between the products of some
different manufacturers to fully cover the existing needs in a warehouse.

4.4 Towards the automation of warehouses

9
 In the field of warehouse automation,1the ideal case is that of the "deposits"
"digital", fully automated. To achieve this type of deposit, a
substantial initial investment in software and equipment. In case the company is not
ready for such a cost, there is the middle way of implementing a system of
WM (Warehouse Management) capabilities can bring significant cost reductions.
A first step can be taken by choosing a "paper-based" option - based on
printing of collection and storage notes. This type of system organizes storage
automated goods handling in the warehouse, efficient retrieval of the same when preparing an order
commands and can bring important benefits, with minimal investment. The downside
it consists in the lack of control over the correctness of collection, the control point being in the area of
delivery, where the differences between the order and the collected goods are checked. Basically, if a
the product is located in multiple cells, and the system indicates one of them for collection,
It cannot be verified in real time if, out of convenience, another cell was not used.
After completing this first step in organizing the warehouse and after the evaluation
the current benefits and potential progress, one can proceed to implement a system
integrated mobile, which should also have extensive quality control functionalities
the services provided. The degree of automation can be increased over time, as
maturity of logistics processes and the release of investment resources.

4.5 The collateral advantages of a Warehouse Management system

Considering that in general the turnover rate of the workforce related to

the warehouse workers is high, an efficient WMS can greatly reduce the time of
integrate newly hired staff and create a reduction in turnover impact
personal on logistics processes, thus generating cost reductions. It is no longer
it is necessary to have detailed knowledge of the products in order to prepare an order, since
the system will indicate the source of the products and will verify the correctness based on the barcodes
collection. So a new employee can become operational right from the first hour of work.

5. Case studies

5.1 The authorities are preparing for reorganization

agri-food products market

Lack of storage space2of agricultural products, malfunctioning of

market mechanisms in the field, as well as the changes that occurred in the legislation
Among the issues for which the officials of the Ministry of Agriculture are seeking an answer are
representatives of professional organizations. Recently, the parties have started negotiations for
1
[Link]

2
[Link]
[Link]#

10
amendment of Law no. 73/2002 regarding the organization and functioning of product markets
agricultural and food.
As even the officials of the ministry acknowledge, the law in question has functioned.
defective since its entry into force. Firstly, from the initial text of the act
the provisions regarding the establishment of the Romanian Fund have disappeared
Development of Agriculture and Forests.
On the other hand, in the nearly three years since the law came into force
Sus-mentionate, some of its provisions have become non-compliant even with the practices.
European in the field. This is because, in the meantime, community legislation has undergone
modifications.

Storage spaces are lacking.

One of the major problems that arise in the producer-final consumer circuit of
The agricultural products face an acute lack of storage spaces. This mainly concerns
specialized storage spaces for vegetables and fruits, similar to the former ILF
(Vegetable-Fruit Enterprise). After privatization, many of them changed
the destination, and the Capital, among others, currently lacks such warehouses where
vegetables and fruits should be sourced from producers and then directed to the markets
agri-food.

Comment

This article discusses the issue of storage spaces for products.

agricultural. Thus, the situations in which state intervention in the market is necessary (for example,
by purchasing a certain quantity of a certain product in case of overproduction)
I can no longer find a solution, in the absence of available financial resources that can
respond to such problems. The same can be said about stimulation
the export of a certain product, as long as the funds allocated, strictly from the budget
The Ministry of Agriculture is often insufficient.
It seems that a major problem arising in the producer-consumer circuit is
The agricultural products are facing an acute lack of storage spaces. This aspect generates more
However, there are problems because the lack of these specialized spaces makes the processes difficult.
of taking over these products from the manufacturer and directing them to the food markets.
For better functioning of market mechanisms, recently there have been formed
the so-called 'product councils'. So far, nine have been established
similar councils, their role being to monitor the market of a certain product, from
the surfaces sown until its release in markets and stores, passing through the phase of
processing.

5.2 Deposits, constructions with weight in the real estate market

1
The capital of Romania has only 150,000 square meters of modern warehouses.
Western standard. Budapest has 650,000 square meters, Warsaw 836,000 square meters, and Prague
870,000. In 2006, in Bucharest, the construction of another 300,000 sqm is expected,

[Link]
1

11
following the entry into the local market of an increasing number of companies
international, especially in the field of automotive, transportation, wholesale trade and
building materials. All these companies need spaces for storage,
to meet all quality requirements in accordance with international standards.
The business with industrial land for the construction of factories or logistics centers has
main speed and due to our country's integration into the European Union. Six projects
important could bring to the Bucharest market in 2005 about 300,000 square meters
of industrial parks in the coming years. It is about Bucharest Industrial Park,
Bucharest West, Cefin Industrial Park, Atlas, Apollo Center, Key Logistic.
Relocate outside the city
On well-located industrial land, companies are competing to build.
deposits and those who wish to open or relocate their spaces outside the city
production. Local or multinational producers are looking to move off the highway of
belt to the capital or major cities due to the environmental conditions imposed in the countries from
EU.
If construction material importers are looking for large plots of land outside the highway
the belt of the large cities. Many representatives of major foreign concerns are establishing themselves.
the calculation that, instead of renting a space, it is better to buy a piece of land to
to build
Logistics centers
There are three levels of demand. Small transport and distribution companies want spaces.
ranging from 2,000 to 6,000 sqm, retail chains such as Carrefour, Cora, Metro,
Bila, Knaufland, is looking for surfaces for warehouses between 5,000 and 20,000 sqm, and large
logistics operators need over 10,000 square meters, according to company representatives
Colliers.
Preferred locations
The western part of the capital remains the most sought-after area for the placement of warehouses or
of industrial halls. In the case of locations situated on the Bucharest-Piteș ti highway, in the first 10
km from Bucharest, the land price reaches 20-30 euros/sqm, depending on the frontage,
dimensions and access," a study by the real estate company Colliers shows. The plots
Land further away, but within a limit of 20 kilometers, is cheaper.
due to utilities, which are the responsibility of the buyer. The prices for these
lands are within the range of 10-15 euros/sqm,
The highway is flanked on both sides by warehouses and depots, some investors
he prefers to move away from the Capital rather than choose another area. The north of Bucharest,
being highly sought after, has become much too expensive for industrial developments, however, in
the moment when the works on the new highway to Brasov will begin, new areas
Adjacent to it will be exploitable, real estate analysts estimate.
Giant potential
The Capital's east is set to become the new hub for industrial land business,
having a huge potential, now highlighted by the future Bucharest highway-
Constanta and the Policolor metro station. Apollo Center, the first project that appeared in
the area provides for the construction of a storage area of 4,000 square meters and one for offices
of 220 sq.m. There will be independent storage facilities, cold rooms and freezers,
designed on a flexible module, allowing the modification of spaces according to requirements and
needs of future tenants. Among the facilities offered are: electricity, water

12
drinking and industrial water, sewer system, gas, telephones, parking spaces, access to
railway track, height of 10 m, sprinkler system for fire, security provided by
personal specialization.

I am waiting for the province

Companies are looking for industrial spaces especially in the western part of the country. In Timisoara,
Oradea and Cluj, the lands for this destination are almost exhausted, so
investors are focusing on secondary locations: Chisinau-Cris, Ineu, Lugoj and
Caransebes.
Another interesting location is Ploiesti, which has the advantage of lower costs.
reasonable production and the short distance from the Capital. And Pitesti has managed to
captures the interest of investors. In the real estate market in Pitesti, the highest demand is for
land for investments, especially those intended for retail developments and spaces of
storage, located at the city exit.
High rent
The space crisis also brings with it a very high price that tenants have to pay.
to be paid. Rents in the Capital are almost as high as those in Budapest,
Prague or Warsaw. In Bucharest, one square meter of space equipped with all facilities.
for storage, it is rented at 4.5-5.5 euros/sq.m/month, while in the mentioned capitals
the price varies between 3.4 (Warsaw) and 5.3 (Prague). Once the new deposits will be
finalized, a stabilization of the rent is expected, somewhere around 4.5 euros/sqm/month
in a study by the firm Colliers.

Comment

The crisis of deposits or modern production halls is causing companies to...

to build their own logistics centers and production spaces. Compared to other countries
Like Budapest, Warsaw or Prague, it seems that Romania has a significant deficit of spaces.
of modern storage. As more companies enter the local market, they need
storage spaces for their products.
Due to our country's integration into the European Union, the business with industrial land
the construction of factories or logistics centers has intensified. The avalanche of retailers
the need for the construction of more and more logistics centers from where goods can be distributed towards
magazine. Transportation and distribution companies, major chains of stores, as well as
logistics companies are looking to rent large spaces, over 2,000 sq.m, for
the storage of products. Specialists in the field say that they buy large plots of land on
that build both halls and administrative offices. In general, land is sought for
approximately 10,000 square meters of usable area. Most companies that build their own
they take into account future expansions and, for this reason, prefer to purchase
land parcels that exceed current needs.
The most sought-after areas for the placement of warehouses or industrial halls are:
the west and north of Bucharest. For example, the Rynart group, a top Dutch company in
the logistics services sector in Central and Eastern Europe has the largest warehouse in
Romania. It is located on the Bucharest-Piteș ti highway at kilometer 23, and has a
a surface of 20,000 sqm of storage spaces with a controlled temperature. Since when do they
Once the works on the new highway to Braș ov begin, new areas adjacent to it will be able to

13
exploited. This area currently also has the disadvantage of small land surfaces,
ranging from 1,000 to 3,000 sqm, which is why both spaces are built here
both storage and retail.
A new area of interest is the East of the capital. This area will be the one that will
it has a development similar to the western area. The location has the great advantage of being
long highway, with a direct connection to the countries in eastern Romania, but also the advantage
existing utilities on an industrial scale.
Apollo Center, the first project that appeared in the area, provides for the construction of a
storage areas of 4,000 sqm and an office space of 220 sqm. Here there will be warehouses
independent, refrigeration and freezing rooms, designed on a flexible module,
allowing the modification of spaces according to the requirements and needs of future tenants. Apollo
The center will offer storage spaces of various sizes and heights, office spaces
efficiently designed, as well as separate facilities for staff, drivers, and guards. This
the offer is suitable for companies that want to own or rent a space of
quality, excellently located in relation to access routes, flexible. Areas of activity of
These companies can be in food or distribution
Outside of Bucharest, companies are looking for industrial spaces especially in the western area.
In Timisoara, Oradea, and Cluj, the lands for this destination have almost been
exhausted, so investors are turning to secondary locations: Chisinau-Cris, Ineu,
Lugoj and Caransebes. Interesting locations seem to be the cities of Ploiesti and Pitesti, especially.
for investments aimed at retail developments and storage spaces.
The lack of space also brings with it a very high price that tenants have to pay.
Payments. Rents in the Capital are almost as high as those in Budapest and Prague.
in Bucharest, one square meter of space equipped with all facilities for
Storage is rented for 4.5-5.5 euros/sqm/month, while in the mentioned capitals the price
varies between 3.4 (Warsaw) and 5.3 (Prague). Once the new deposits are completed, it
expect a stabilization of the rent, somewhere around 4.5 euros/sqm/month.

5.3 More warehouses in the country for western goods

In 2006, the western area of the Capital1, more precisely the area adjacent to the highway
Bucharest-Piteș ti (A1) has consolidated its status as a preferred industrial location. Here, there are
the largest projects were started - Cefin Logistic Park, Bucharest West, Mercury
Logistic Park, Rynart and ProLogis Bucharest Park (all representing over 80% of
the warehousing and logistics market) - and the largest transactions have been concluded.
Among the best deals closed in the west of the Capital, we can mention
the takeover for the sum of eight million euros by the Central European Fund,
the Phoenix Business Park project and the acquisition by Helios Properties of
Mercury Logistic Park project (11 million euros).
If last year the stock of storage spaces increased by 50,000-60,000 sqm
(reaching 120,000-180,000 sqm), this year forecasts indicate a doubling, if not
even tripling this rhythm, namely 100,000-180,000 sqm, with the reserve that all
the announced projects should also be completed.

1
How many more warehouses are needed in the country for goods?
[Link]

14
 Czech Republic on fire
The Dutch developer CTP Invest has rented more than 95,000 sqm from CTPark
Bor, while Bridgestone has acquired over 50,000 square meters, the company's plans aim at transformation.
the warehouse in Bor as a regional distribution center to ensure deliveries in Germany,
Switzerland, Italy, Slovakia and Romania.
Until then, the company Parkridge entered the Czech market, developing projects on
D11 motorway, right on the edge of the capital. Parkridge has fully rented out phase one of
the companies' projectDHL(50,000 sqm) and Globus, and this year they are set to deliver
90,000 square meters of storage and logistics spaces. Then the third phase will follow.
In traditional mode, the Prague market is concentrated on the D1 highways (Prague-Brno/south-
is D5 (Prague-Pilsen/south-west). Recently D8, which crosses the country from the north, towards
Dresden has come to the attention of foreign investors.
Pinnacle is the owner of 21,000 sqm in Northpoint Distribution Park in Prague.
they intend to build another 34,000 sqm in Southpoint Distribution Park.
In addition, VGP will deliver 13,000 sqm in 2006, while Parkridge and ProLogis still have in
preparing new projects.
Outside the Czech capital, in Brno and Plzen, CTP Invest could lose its position.
dominance in favor of other developers with development plans. In Brno, the developer
American Panattoni has purchased a plot of land and intends to build 90,000 square meters of
storage spaces.
Hungary, settled growth
The activity in the warehouse and logistics market in Hungary has been rather stable.
decrease in dynamics in the second year since the country's accession to the EU. Both deliveries and
The absorption of new spaces has been below the level of 2004.
The most popular locations for developments of this kind are situated along
the existing highways, as well as in the area of the future road network that will surround
Budapest: several new highway lanes are set to be constructed
adjacent to the current ring road (M0) of Budapest.
Livrarile preconizate sunt compuse, in principal, din noile faze de proiecte ce
It will take place in M1 Business Park, Parkridge, and Euro-Business Park. Towards
by the end of 2006 they will have exhausted their entire potential for new developments. The first
the phases of some developments such as Agrogate and East Gate Business Park have been or
are set to be launched this year. In light of the relatively small number of transactions,
developers are willing to grant advantages to potential tenants.
The Polish boom
In Poland, the second year in the EU represented a real boom in the market.
of industrial and logistics spaces. According to DTZ analysts, among the factors that contributed
The basis of this evolution is the country's accession, the growing trade of this country with the rest.
The Union, strengthening the retail market and relocations of production units or of
distribution operations in Central and Eastern European countries. Therefore, both
warehouse providers, as well as applicants for such spaces have contributed equally
measures for reaching record indicators.
Separate from the already established area of logistics and warehousing spaces in
the Warsaw market, which accounts for about 76% of total modern deliveries, the market
the region continues to develop around major urban centers such as Poznan,

15
the Silesian corridor and the "triangle" formed by the cities of Piotrków Trybunalski, Łódź and
Stryków in central Poland.
The absorption level of new spaces reached a historical maximum in 2005 (440,000
mp), double that of the previous year. 49% of transactions targeted the parks in
the Warsaw area, Silesia and Poznan occupying positions two and three, with a share of 33%,
13% of the warehousing market.

Comment

The entry into the EU represented a development of trade for all member countries.
by the opening of all markets within the union, which also required an increase in
logistics and storage spaces.
This article examines how the member countries with the highest deficit have fared.
of such spaces and what measures have been adopted for this boom in the market of spaces
industrial. All these promises of a real estate boom in the logistics space and
Storage is not something specific to Romania. The entire East European region has gone through
the same stages of preparation for the "accession of Western goods to domestic markets."
Bucharest lags behind the major capitals of Eastern Europe in terms of
of the stock of modern industrial spaces and the pace of new deliveries even though developers
there are promises, and the builders of work, expecting that by the end of 2008, the pace
to expand to stabilize around 150,000 square meters of new spaces delivered annually.
Since the moment of the Czech Republic's entry into the EU, the market for industrial and warehouse spaces has
a new and alert development rhythm. 2005 meant for the logistics market and
warehousing from here an increase of 290,000 sqm by the end of the year, of which over 180,000 sqm
they were absorbed following six major transactions, according to a DTZ study.
The traditional development pole of this market segment has centered around the capital.
Prague, but starting in 2005, the western part of the country has attracted the most attention.
investors. Analysts expect vacancy rates to rise as a result of the new
projects in preparation and reducing pressure on rents.
The level of rents charged for storage spaces has slightly decreased over the course of
the second year of the Czech Republic's integration into the EU, from 5-5.25 euros/sqm at the beginning of the year
up to 4-5 euros/sqm at the end. Moreover, 5 euros/sqm represents a generally accepted level of
rental prices in the warehousing market, with a level of 5 euros/sqm being typical for spaces of
2,000 sqm or less. The activity in the warehouse and logistics market in Hungary has been more
the degradation is only dynamic in the second year after the country's accession to the EU. As for
look at the current offer, it is characterized by several large logistics parks
dimensions, which represent a large part of the stock of specific spaces.
Rents are slowly decreasing, but no significant reductions are anticipated in the future. The rent for a
The warehouse rent in the Budapest area is about 4.2 euros/sqm/month. The absorption of
spaces for warehouses and logistics represented, last year, 119,000 sqm. If we are to
compared to the data from the previous year (158,000 sqm absorbed), the absorption rate was in
decrease.

16
 In Poland, the second year in the EU represented a true boom in the real estate market.
industrial and logistics. According to DTZ analysts, among the factors that were the basis of
this evolution includes the accession, the growing trade of this country with the rest of the Union,
consolidation of the retail market and the relocation of production units or operations
distribution in the Central and Eastern European countries. Last year, new deliveries in the region
The warehouses totaled 432,000 square meters, of which 57% were located in Warsaw.
Most of the new parks have been built to suit, however, in
In the last year, the number of projects made for sale on the open market has increased.
The usual temperatures for freshly delivered storage spaces are stable, being
ranging from 4.5 to 5.7 euros/sq m/month in Warsaw and 3-3.5 euros/sq m/month in other areas
away from the Polish capital.
Until 1997, there were only old industrial spaces, partially modernized and
transformed into storage spaces and small production areas. The demand was represented
on small surfaces, and the laws for environmental protection and traffic restrictions were
permissive. Important industrial spaces were located within the city or
immediate proximity.
According to ARAI, starting from 1998, demand has recorded an upward trend.
determining the emergence of small or medium-sized projects located on the road
belt, in the vicinity of the main access routes. Industrial space developers have
I preferred the northern part of the city, where some industrial spaces have been modernized.
old.

5.4 The electronics war moves to the warehouse

Last year, only those who managed their electronic commerce won.
"healthy" stock of goods. With a retail market where players are numerous, the speed
with which merchants of household appliances and IT&C manage to eliminate goods
"deposits" from warehouses come to determine the success of the company.
The move will save them from problems in the future. In terms of sales, the entire market
The retail of electronics and household appliances experienced a decline of over 20% last year.
The Flamingo International group has only lost 12.7%, one of the best.
performers in the profile industry.
The key to success: a realistic elimination of stocks, which however also involved
the establishment of provisions which will indeed show its positive effects this year,
said Dragos Simion, vice president of Flamingo International, at the presentation
financial results. More specifically, the value of inventory in 2006 was 28.8 million
of the euro. "Currently, 80% of Flamingo's stock consists of products more
recent of six months (note: according to the European provisioning standard, which provides
IT products should be provisioned after 6 months from purchase, and electronic ones and
household appliances after 12 months). This leads to competitiveness and the ability to
buy new product stocks," the managers at Flamingo told us. Nevertheless,
The stocks of 28.8 million euros from last year do not represent a commendable result.
Flamingo officials also have an explanation for this situation and a recovery solution.
Advantage to distributors and online

17
 ProCA, the IT product distribution division of the RTC holding, the volume
The stock achieved last year is 34 million euros, with sales of 36.
millions of euros.
As it turns out, at the end of last year, the distributor closed on a positive note: 15% compared to
2005. According to Sorin Stancu, the general director of ProCA, in order to sell the products
store more time in stock so that they are not recorded in the chapter
losses, ProCA resorts to soldering and to 'bundles' with other products. The online store
IT products [Link] operates with a stock level that allows for 30 days of
sale, so the total value of the stocks varies from month to month and, in principle,
anticipates the increase or decrease in sales, as explained by Marius Ghenea,
the president of the company.1

Comment

The present article discusses the issue of competition in the electronics market in the year 2007.
and shows what strategies have been adopted by producers. Last year they had profits.
Those who know how to manage their goods in warehouses.
The electronics trade involves a large turnover and thus the key to success.
the removal of goods 'far away' from the warehouse has become as quick as possible. The more the stock of
the newer the products, the better the company's cash flow (i.e. liquidity).
On the other hand, retailers have covered from their own pocket the wrong forecasts about
of sales and were forced to create additional provisions.
The year 2006 represented a 20% decrease in sales volume. The best response
the consequence of an inaccurate sales forecast was felt by the Group
Flamingo International, however, lost only 12.7%, achieving one of the best
performers in the profile industry.
In order to cover potential losses resulting from maintaining inventories, Flamingo has
provisions of 3.6 million euros, and another 1.8 million euros for customers,
this financial effort making the financial results in 2007 better.
The company came last year after the market growth in 2006 and was expecting its continuation.
growth in certain product categories. Although we were expecting a certain decline in the market.
As a result of the accession process, its impact was greater than anticipated.
To have a 'fresh start' in 2007, they decided that certain products would no longer be
introduced in the store, precisely to have the possibility to increase liquidity
of the company and to position itself as well as possible in a growing market.
Information could not be obtained about the situation in other companies in the field because those contacted did not respond.
EVZ, representatives of Altex and Domo have stated that the details regarding the stocks are
confidential.
The advantage seems to have been held by online distributors. At ProCA, the division of
IT product distribution of the RTC holding, the volume of stock achieved last year is
from 34 million euros to sales of 36 million euros. In practice, ProCA has rotated
stocking approximately 12 times a year, which means that, on average, it stocked monthly.

1
[Link]

18
of 3 million euros. Unlike the classic retailer Flamingo, however, the money was
rolls, and not blocked in warehouses.
The happiest case seems to be that of online stores which, normally, do not
they need to keep products "on the shelf" because the shelf is a web page, and the stocks are
eliminate on the condition that they can deliver to clients in a timely manner.
The conclusion that arises is firmly related to the fact that inventory management of goods has
departures retailers.

5.5 The confiscated goods depot of the capital

"imbibe" with alcohol

Clothing and footwear, toys, electronic devices andappliances, cigarettes,

bicycles, scooters, detergents and alcohol, whether it is quality or 'made in illegal distilleries',
everything at prices approximately 30% lower. It is notofferany supermarket or
magazineonly the current "stock" of confiscated goods from the only warehouse of its kind in
Capital. All these products, excluding weapons and cigarettes - which are destroyed from the start - can be
purchased at auction by interested economic agents. At this moment, approximately 80% of
the products available in the warehouse represent alcohol and alcoholic beverages. Paradoxically however, these
represents the most difficult goods to sell, with economic agents not being interested in
their acquisition, due to the high costs involved in their reprocessing. In
the top of the best-selling goods includes clothing, footwear, toys, and products
for children, and in the case of the most valuable, the houses!
Thousands of liters of questionable quality alcohol, 'bottled' in dozens of jugs.
liters in "halls" of illegal production, located behind the two-meter high gates of
the tax evaders on the outskirts of the Capital have been confiscated this year by the inspectors
The Fiscal Authority and the Financial Guard. These impressive quantities, along with other products
confiscate, such as clothing, items for children, toys, and shoes.
welcome potential clients in the only warehouse of such goods in the Capital. Although
the prices at which all these products could be purchased are up to 30% lower
The clients are not crowding in. Especially in the case of alcohol which, once "won", would
the buyer faces loss rather than profit.
The warehouse is located in a confiscated hall.
In the hall with confiscated goods from the Tax Authority, all products come from tax evaders.
generally do not have documents for the goods held. This property, for example, was
taken from such a debtor," Carmen Balasoiu explained to us, specifying that in
At certain times, the huge hall cannot cope with the massive amounts of goods that are
confiscated by the authorities.
The cigarettes are destroyed, and the weapons are surrendered.
Goods that are confiscated, deposited, and evaluated are sold. Tobacco products are exempt.
the weapons are destroyed from the start, as the law provides. The confiscated weapons and
The ones that have arrived here are handed over to the Ministry of Internal Affairs. It is responsible for their destruction.
Balasoiu stated, explaining to us that the fate of goods is determined by a
a commission formed by representatives of the Office for Consumer Protection, of
Environment, Revenue Agency and the institution that confiscated the products in question. "Within
this commission decides what is destroyed and what goes for sale.
Clothing and footwear sell the best.

19
 At the top of the best-selling products are clothing and footwear.
toys and products for children. And the most valuable are, according to
the tax representative, the houses, the lands, and the apartments. "Once it was clarified
the situation of vacant successions, it was possible to evaluate all properties," he added
explained Balasoiu, stating thus that the Tax Authority also values those houses, lands and
apartments whose owners, without heirs, have died. "In the dailies
Central announces tenders periodically. All properties are subject to a
Expertise is calculated based on the position and condition of the property.
evaluate.1

Comment

This article shows the condition of the warehouse where confiscated goods arrive.
Fiscal in the year 2005, a situation I believe is not very different even at present.
In the seized goods warehouse of the Tax Authority, you can find almost anything, from
clothing and footwear to toys, electronic devices and appliances, cigarettes,
bicycles, scooters, detergents and alcohol, whether it is quality or "made illegally, behind
fences, in improvised distilleries, on the outskirts of the Capital." All of these, except for
medications and cigarettes can be purchased through auction by economic agents
or simply removed tosale, through the sellers who have concluded with
Commission contracts. Because value added tax does not apply to them, they
they are, on average, 30% cheaper than those usually available on the market.
Even under these conditions, it seems that people are not rushing to buy these goods.
since once compromised they can cause more damage than profit.
Alcohol is the commodity that is found in the largest quantities. The confiscated alcohol exists.
in deposit, needs processing, and the costs involved in this operation are
very large. Most of the beverages here contain flavoring substances
care damages the installations, thus explaining the large stocks of alcohol, from year to year. Another
the motivation for the existence of large quantities of alcohol in storage is, especially
In the last year, the control activities of state bodies, namely the Fiscal Authority, the Guard
The finance and police have focused on this area.
Even the hall that 'hosts' the said warehouse is confiscated from a debtor.
Under the Tax Procedure Code, there are companies that owe money to the state and whose
they can be equated with the assets in the heritage. Due to insufficient space
storage, certain goods are sold directly from the place of <the act>. Also at the place of confiscation
are auctions organized for perishable goods, as in the case of
confiscated large quantities of fruits or flowers, the state has an interest in these to be
value it in a timely manner, before the goods degrade, the price difference compared to the market
the rise can be even up to 30%.
The goods that are not for sale are weapons and cigarettes. Only those reach the market.
products that are fit for human consumption, not endangering health
"to the consumer", as once it reaches the warehouse, the goods are subjected to evaluation, then it

1
The confiscated goods warehouse of the Capital city
%20imbibat%[Link]

20
decide the prices and the method of marketing the products. The final price is obtained by making-
it is an average between the obtained price and the market price.
At the top of the best-selling products are clothing and footwear.
toys and children's products. At the beginning of the year, auctions are organized
for the awarding of salescontracts under a commission regime. Legal entities
care participa la licitatie trebuie sa aiba spatiu de comercializare, de depozitare, mijloace
transport vehicles and cash register, which can be usedexclusivefor registration
of these goods. They present a guarantee of 25% at the time of picking up the goods.
the value of this. The other two ways of capitalizing on confiscated goods are
direct sale, that is at the place of confiscation, and through auction, which is announced in the press.

Delaco has invested over 2 million euros

in one of the most modern dairy warehouses in Romania

At the beginning of 2008, Delaco opened its new warehouse in which it invested
to date over 2 million euros. At this moment, the dairy depot in Codlea
it is considered one of the most modern in the country and in Europe.
I can say for sure that there are still approved and operational warehouses in Germany.
Yes, France, which are not as equipped as the one I built at Delaco. For
I worked on the construction with experienced companies in this field from Romania. Of
Similarly, I contacted a consulting firm from Germany with projects completed for
Porsche, Pfizer, Gardena, Hilti," declared Tudor Comaniciu, General Manager.
Delaco.
The area of the new warehouse is 3000 square meters - including goods commissioning areas.
The warehouse capacity is 4000 euro pallets. The investment in utilities was
200,000 euros, which will ensure and develop future developments, given the pace of
We will expand this warehouse,
[Link].
The new Delaco warehouse is a cold storage facility (+2/+8 degrees Celsius) and is distinguished by a
very good insulation. The panels are 20% thicker than the usual size
used in Romania for such deposits (usually 100 mm). Even the parody
it was isolated. The handling and loading/unloading of products is done with
electric transport equipment, thus the employee works comfortably with the physical effort being
considerable reduction. The warehouse is built within the Delaco logistics center.
the locality of Codlea, near Bra ș ov and it is the second storage depot of
the company, after the one completed at the end of 2006.1

Comment

[Link]
1

Delaco has invested over 2 million euros in one of the largest retail projects.
modern dairy deposits in Romania

21
 More and more companies aim to create specialized warehouses to standards
European. Such an investment has also been made by the company Delaco.
Founded in 1996, Delaco Company specialized in the production of fresh dairy products.
Since the year 2000, the company Delaco has focused on the distribution of cheeses and other
productslactates imported from Germany, Austria, France, the Netherlands or produced in Romania. From
2007 is the exclusive distributor of the German producers Zott and Bergader. Now Delaco is
present in all national/international modern retail networks as well as in the stores
traditional commerce. Has over 1500 direct clients, also working with local distributors, through
the environment of whichthe productsDelaco reaches over 3000 other clients.
Delaco started operating at the beginning of 2008, its new warehouse in which it has invested until
now over 2 million euros considered at this moment the dairy deposit the most
modern from the country and from Europe.
The new warehouse has an area of 3000 square meters and is built in accordance with ISO standards.
22.000 the newest standard in the food sector: it has rounded corners, special floors, no
there are windows, it is well lit and respects all hygiene rules. 40 people work in this space.
of people, in shifts, so that the warehouse is open both day and night.
Among the facilities of this warehouse, we can mention very good insulation, with the panels being 20%
thicker than the usual size used in Romania for such deposits (usually being
of 100 mm); parodseala a she was isolated and the manipulationrespective
the loading/unloading of products is done with electric transport equipment, thus the employee
work comfortably with physical effort being significantly reduced.
Such an investment generates future profits that are expected to appear by
the end of the year, such provisions represent a guarantee element for clients regarding
the products offered by the company Delaco.

5.7 Logistics services

I enhance the value of a good deposit.

A few words about the offer

You can have the best logistics services, but if you don't have a building to match, you do not
doing nothing; and in Romania very few storage buildings have been built in the last 12 years
"yes," says Cristina Matei, Logistics Manager, Kuhne & Nagel.
But the advantages of complete outsourcing of logistics services have not become
evident for companies than recently. Dragos Geletu, General Manager, Frans
Maas Romania says that multinationals in the Romanian market had to be convinced to
use the entire package of logistics services.
In 1997, when I opened the first warehouse, I did pioneering work; it took months of
"Days until we convinced a client to outsource these services," says Geletu.
specifying that at that time the country risk seemed high, clients did not have confidence that in
In Romania, professional logistics services can be obtained, they were convinced that they could do it better.
it's cheaper and better than a specialized company, but they didn't take into account the losses and
the involved risks.
You can have the best warehouse building, but if you do these services yourself,
you don't always do it well and take the losses. Companies that outsource these
services can focus on sales and production, and at the end of the fiscal year, the loss
"It is zero, because the logistics service provider takes on all the risk," says Geletu.
Irina Ion, general director, Karl Heinz Dietrich, states that at the end of 1998, when

22
the company opened its first warehouse, the demand for logistics services and storage spaces
it was very large. Since then, the number of quality storage spaces has increased, but
most are small deposits. At the same time, alongside multinationals, they have begun to
"logistics services and Romanian companies," says Irina Ion.
Cristina Matei, Logistic Manager, Kuhne & Nagel, shows that, until recently,
the trend has been for companies - including large ones - to focus exclusively on price in
the search for a storage building, choosing what is cheaper: the former communist buildings.
Now the trend has changed; both multinationals and Romanian companies want quality,
both in terms of the warehouse building and the services.
The logistics and warehousing services market is growing and will continue to grow. I am in
increasing both production and import and export activity," says Cristina Matei,
It is noted that multinationals that produce locally import raw materials in order to
exceed the quality standards of the products.
Moreover, more and more Romanian manufacturers who export have begun to emerge.
needs, until export, storage spaces or distribution centers located in
star.
Demand is dominated by multinationals
A true logistics company provides all the services a client needs.
consider Cristina Matei, Logistics Manager, Kuhne & Nagel.
Globally, K&N ranks among the top three logistics companies. The services offered
the services we offer are based on the idea of Supply Chain Management. A few years ago, we launched
the concept of 'contract logistics', on the basis of which we work for several large companies,
concept care involves services starting from the collection of products from the line of
manufacturing, to the end user. We apply this concept to our branch in
Timisoara, where we provide logistics services for the tire manufacturer Continental
"we are working in the client's building."
Ea arata ca, pe de o parte, clientul vrea sa se asigure ca nu-i va fi perturbata
the activity, on the other hand, K&N needs to invest in another type of equipment
(forklifts), new shelves (that can support a greater weight), to adapt their software to
the type of product of the client (depending on the type and frequency of the reports they
The client desires the number and volume of their products - many small ones, many large ones.
etc.), to size the personnel dedicated to this project according to the monthly turnover of
client's signature etc.
Founded in 1890 in the Netherlands, Koninklijke Frans Maas Groep NV - international group
of companies that deal with international shipping and logistics - is specialized in
coordination and optimization of value-added services.
The services provided by Frans Maas Romania encompass the entire logistics package: from
international transport - air, road, and maritime - which allows him to take over the goods from
any location in the world and bring it to the country, and up to customs clearance, storage, value
added to the product and internal transport, shows Dragos Geletu, general director,
Frans Maas Romania.
After outsourcing all these activities, our clients can focus on
sales, and we receive the orders for goods and take care of everything, until delivery to
the beneficiary's address of the client," says Geletu
. He specifies that among the different branches and work points of the Frans Maas group
Communication is based on its own informational and communication system.

23
 For example, through a unique monitoring system, Global Network Transport
Systems, the transports in the Frans Maas network across Europe are monitored 24
24 hours a day. In Romania, Frans Maas has branches and warehouses in the cities of Bucharest (Pipera.
in Pipera it operates with three warehouses, with
total area of 12,500 square meters, located on a logistics site of 120,000 square meters. The developer
the deposits and the landowner is Atlas Realty & Development.
In the customs regime warehouses at Otopeni Cargo Terminal, are conducted, on
customs clearance, ground handling activities
for goods coming on 8 airlines (Air France, British Airways, KLM, Alitalia,
Turkish Airlines, Olympic Airlines, Polish Airlines and Moldova Air.
Karl Heinz Dietrich (KHD) operates in its own warehouses - three in
Bucharest, located in the same place - the ring road, Otopeni (of which the most...
newly completed at the end of last year, is equipped with several areas with
temperature controlled, for the storage of perishable products) and a warehouse at
Braș ov.
The total storage capacity of KHD in Romania amounts to 21,000 square meters. The company
operates daily, in the field of domestic transport, with an average fleet of about 40
20-ton freight trucks. "The warehouses and the associated land are KHD's investment"
clarifies Irina Ion, General Director, Karl Heinz Dietrich Romania.
Among the clients in Bucharest are: Metro Cash & Carry, Beiersdorf, Gillette,
Monsanto, BASF, Rauch, ABB, Heineken Romania, Alveus, Walmark, BAT (for stock
of promotional materials), Henkel Ecolab.
The warehouse in Brasov is dedicated to an important client - Kraft Foods Romania, which has
two factories in the city. The logistics company sends raw materials to production daily, and
The finished product returns to the KHD warehouse.
For Metro Cash & Carry, [Link] provides, on one hand, the services
classics for the retailer's own products (which Metro sells under
own brand), while, on the other hand, the related services of the "pre-allocated platform"
cross-docking
The concept of the platform is new on the Romanian market and is justified after
the opening of a certain number of stores," says Irina Ion, specifying that this
the concept involves bringing the goods ready for delivery to KHD by the suppliers
each Metro store, goods then reaching all 15 stores in Bucharest
if from the country, within 24 hours.
A feature of the activity carried out in the KHD warehouses is that employees have a
German work style, with salaries commensurate with good results, which is reflected directly.
on the exceptional quality of the services provided to the customer.1

Comment

The success of a modern warehouse is ensured not only by the building, no matter how good it is.
built and equipped, as well as the services offered. They begin with taking orders and then

Logistics services increase the value of a good warehouse.

1

24
concludes with the delivery of the goods at the beneficiary's location. In the Romanian real estate market.
Modern warehouse buildings, built to international standards, are quite few.
The international logistics providers entering the market are few, and only a couple.
Among them are large-scale activities. Among them is Kuhne & Nagel - one
one of the largest transport and logistics companies in the world; Frans Maas - one of
European leaders in logistics and international transport, Karl Heinz Dietrich - company
family-owned, with over 50 years of tradition in logistics and transportation
international.
In practice, the service package provided by international logistics providers
far exceeds the boundaries of storage and distribution activities. First of all, they
ensures the international transport of goods (road, sea, air). Then, having also
the authorization of customs commissioners is responsible for customs clearance of goods after they are brought into the country

keeping it in your own customs warehouses (short term) or customs warehouses (on
long term, in case the importer wants to have the goods in stock, in order to be able to fulfill an
eventual increased demand, but does not want to block its money by paying customs duties, before
to be able to sell the goods.
Inside the actual warehouses, logistics providers ensure, in addition to the simple
storage, a series of value-added services: handling, labeling, packing,
repackaging in another form (promotional packages, Metro units - the standard number of
products that must be included in a package requested by the cash & carry retailer
the preparation of orders, the recording and computerized control of stock, and the sending of
reports regarding stocks to clients etc.
The next step is the actual distribution, namely transport within the country - with
own trucks or rented trucks - and the delivery of goods to the clients of the clients,
like large retailers, for example. International logistics companies are also large
international shipping companies (specialized in freight transport mediation)
n.n.).
Companies that outsource these services can focus on sales and
production, and at the end of the fiscal year, their loss is zero, because the supplier of
logistic services take on all the risk. Until recently, the trend has been for companies - including those
they - should orient themselves exclusively by price in the search for a storage building, choosing what
it's cheaper, now the trend is changing.
The services offered by specialized logistics companies provide complete and complex services.
for companies operating in all fields of activity.
The main players in the logistics market are: K&N is among the top three companies in
logistics, and the services they offer are based on the idea of Supply Chain Management.
Among K&N's clients in Bucharest are Philips, Unilever, Bayer, and Philip.
Morris. The warehouse in Bucharest is rented from the developer Rostock 2000. In total,
K&N operates on a storage area of 18,000 sqm. The company works with a software
specialized in warehouse project management, which provides more than
inventory management. Each shelf in the warehouse has an identification address, and the software indicates
the movements that need to be made, since the goods are placed first on the top shelves and
"it goes down", as it is being delivered.
The development of the first service offer to the client takes up to 4 weeks, and
The decision on the deposit is final, as it also involves the highest risk.

25
 Another large company founded in 1890 in the Netherlands, Koninklijke Frans Maas Groep NV
international group of companies engaged in international shipping and logistics
he is specialized in coordinating and optimizing value-added services.
The services provided by Frans Maas Romania encompass the entire logistics package: from
international transport - air, road, and maritime - that allows him to take goods from anywhere
location from the world and bring it to the country, and up to customs clearance, storage, added value
on the product and internal transport.
On the logistics side, the clients of Frans Maas, most of whom are importers,
the multinational companies are 3M, Panasonic, Orange, Johnson Wax, Wrigley, Kraft
Foods, Reckitt-Benckiser, Forte, Bosch & Siemens Home Appliance, Allied Domecq
Sititech (Fuji Film and Sharp), Atlas Trading.
Having the activity of a freight forwarder, the company has thousands of clients, including individuals.
physical, for which it ensures the international transport of packages sent abroad.
Currently, the competition in the logistics services market is not very intense, but many
Among the international players who have explored the market in recent years, they have overcome their reluctance.
they are preparing to make investments in Romania.
Competition will become increasingly tough, as the demands will be more stringent and
for the excellent quality of services, visible in details such as: accuracy in records
the stocks, the flexibility of the logistics provider and his willingness to respond to
the client's requirements 24 hours a day.
Thus, quality will matter more than price for all companies that will opt.
for the logistic services that will enhance the value of the warehouses they own.

5.8Industrial halls are being built

cheap and pays off quickly

The business on the Beltway

Production halls and warehouses represent one of the businesses
flourishing developed in recent years around large cities, especially along the routes
investors. Real estate specialists recommend it for the long term, due to
low risk, the investment amortizing in a maximum of ten years.
Whoever builds such spaces is sure to succeed, because the demand is in
increased growth, especially from foreign logistics, production and companies
distribution of consumer goods, home appliances, and furniture.
Small investment, big profit
The projects for warehouses and storage facilities do not require major investments, unlike
residential constructions. First of all, the land is currently cheap, just a few euros
per square meter. For example, the outskirts of the Capital have prices ranging from 10 to 40
euro/sqm, While the urban areas exceed a few hundred euros/sqm. "Very important
it is important for the land to have utilities, which is why the immediate vicinity of other investments is preferred
"real estate," says architect Mircea Bursuc. Another aspect that recommends the business is
the connection regarding design costs, of approximately 5 euros/sqm, compared to 10 euros/sqm
This is in the city. Regarding constructive ideas, large foreign companies usually come
and with the project, implemented by Romanian builders. "Technical projects from other countries
they need to be adapted to the current Romanian regulations," the specialist adds.

26
 200 mp are made in a month
Even though some companies boast that they can build a hall in a few days, architects point out
note that a well-constructed building needs a foundation. For example, a space for
storage made of metal structures, covering an area of approximately 200 square meters
build it within a month.
Who wants to buy a hall with infrastructure, without installations and without windows and doors
they need to withdraw at least 167 euros for each square meter built (the price
not including VAT.1

Comment

It seems that a new trend in business is the construction of spaces for

storage. This trend has gained greater momentum in our country with the entry
in the European Union. The construction of storage spaces is one of the businesses
that real estate investors are betting on. Industrial spaces - warehouses and depots -
They are everywhere on the outskirts of large cities. The construction of the building requires a short time, it
It should appear within a maximum of one month, according to the builders. The land is cheap, and
the construction can extend over as large an area as possible.
Such an investment depreciates in a maximum of 10 years and is certainly
profit generators, because demand continues to grow, especially from
foreign companies in logistics, production and distribution of consumer goods,
appliances and furniture.
The costs necessary for such an investment are not very high. First of all,
the land is currently cheap, at a few euros per square meter. For example, the outskirts
The capitals have prices ranging from 10 to 40 euros/sq m, while the areas in the city exceed
a few hundred euros/sq m Regarding constructive ideas, large companies from abroad
usually with the project, implemented by Romanian builders that represent the companies
of construction with which they conclude the contract.

5.9 Chinese fortress in Dobroiesti

The expansion of the so-called Chinese investors in Romania, along with all the crimes.
The economic effects it brings have not unsettled the central authorities. The only one who has...
fighting for five years against the audacity and illegalities of the two so-called Chinese businessmen is
the mayor of sector 2, Neculai Ontanu. "These illegal constructions have taken in the most
soon the appearance of a bunker, with guards equipped with the most modern systems of
surveillance, installed on sheets guarded by sentinels," he said yesterday at the conference of
press, Mayor Ontanu. Since the emergence of the first unauthorized constructions,
The city hall inspectors conducted checks and issued fines for the two.
commercial company.
Moreover, the General Urban Plan of the Capital does not allow in the area
the construction of warehouses or offices, but only of residences. Their audacity has surpassed

1
[Link]
rapidly amortize

27
any limits, those who were in violation opened lawsuits in court, through which
the Romanian Justice Council to compel local authorities to issue permits for
to build for the 24 already existing halls. In its fight against the Chinese mafia in
Bucharest, Mayor Ontanu was not greatly helped by the other institutions either. At
the controls carried out only during a month by the Financial Guard and Police, at only 12
138 economic offenses were found in the commercial company, such as smuggling,
tax evasion and intellectual forgery under the Accounting Law and non-registration of documents
Wow. Only the confiscated money and goods amount to almost 1 million RON (10 billion
old law)
All things considered, the two companies with Chinese owners (even though one has a name
Almost Dacian) have not submitted their balance for the year 2005 yet and have not updated either.
share capital after denomination. The mayor of sector 2 also said that the owners
The Chinese have been without natural gas and electricity since yesterday, and today, starting with
at 7, the two companies selected through public auction were to start the procedures
for the demolition of illegal constructions. Neculai Ontanu specified that the Embassy
The People's Republic of China in Bucharest has given it full support in its efforts and has
they asked their citizens in Romania to respect the laws. For this reason,
Mayor Ontanu proposed to the Government the amendment of the law, in such a way that the intervention of
to compel local authorities not to be able to postpone in bad faith, after
the court found the existence of an illegal construction.1

Comment

This article discusses the issue of illegal warehouse constructions in

capital, emerged alongside the expansion of the so-called Chinese investors in Romania. With a
Such a situation has been faced by the mayor of sector 2 for 5 years. Legislation and practice.
judiciary in Romania, as complicated as it is, has allowed significant harm to
the state budget for five years, without the local authority being able to act. Starting
since 2001, on Dobroiesti Road, at numbers 91 and 95-101, on a land area of
On nearly seven hectares, two companies began to illegally construct warehouses for
marfuri for the supply of various companies. Instead of becoming legal, what two
Chinese investors - Zheng Siyong and Chen Zengfu - owners of Shan Lian companies
International Import Export SRL and Rex Getica Industries SRL have sued in court, with
templates, the minutes of the fine.
For example, the Prosecutor's Office and the Romanian Intelligence Service should investigate how.
Distrigaz Sud and Electrica have accepted the connection of the two companies, as long as they do not
there is no construction permit. The reactions of the Financial Guard are also strange and
The police, who, in five years of illegal activity of the two companies, have made only a few
controls carried out at the companies that rented spaces or were supplied from
the deposits in Dobroiesti. The damage caused to Bucharest only for non-payment
The property tax on land and buildings reaches 1.45 billion lei. The municipality had to wait.

1
[Link]
[Link]?3932;268312=

28
five years of completion of procedural cycles imposed by Romanian law in such cases
cases, as well as the period during which the two companies could have started the demolition on their own.
Asa se dovedeste inca o data cat de bine sunt definite si aplicate legile in Romania.

5.10 The Bucharest market lacks

refrigeration-freezing spaces

Regatta Company announces for rent one of the few spaces of

refrigeration and freezing from Bucharest. Located in the Otopeni area, near
from the belt line, the property offers both refrigeration/freezing area and spaces for
offices. It consists of 14 modules with 100 sqm/module and 50 sqm/offices
(P+1). ... The property is built ultra-modern, ensuring heights of 7 m,
capacity of 180-205 tons, freezing and refrigeration from minus 18 degrees C to 2
loading-unloading grade C and handling services, insurance goods and
electricity is included in the price.
Available from the second quarter of next year, these spaces are constituted in
perfect harmony with the quality standards of the European Union.
The property in Otopeni can be taken as an example, as it offers conditions
superior, compliant with EU standards. The tenant enjoys modern offices, of
services such as handling and securing goods, as well as all facilities
"impose a high-quality property," said Costel Alecu, the director
Department of Industrial & Commercial Spaces, Regatta.
Last but not least, the location is a plus for these spaces. The placement in the area of
north of the city, in the vicinity of the beltway, facilitates access to all areas
of interest to importers and distributors.1

Comment

Many companies that require the storage of their products in warehouses imply
refrigeration and freezing spaces are facing a deficit, as the sector
The refrigeration/freezing facilities are very poorly developed here.
Although there is a high demand, there are no such rental spaces in the Capital. The spaces
what are currently on the market offer unsuitable conditions for storage and offices, so that
let's not mention the difficult access anymore. It is imperative to build, whether for rent,
for sale, as many refrigeration/freezing spaces as possible that meet the standards
of quality.
The present article provides an example of a company that has these spaces, which it offers.
for rent, the company Regatta. It is located in Otopeni, becoming a good
location because the placement in this area facilitates access to all areas of
interest for importers and distributors.

1
The Bucharest market lacks supply
refrigeration-freezing equipment

29
 It is preferable for these types of deposits to be located near areas of
unpacking, for proper handling of products during transport.

5.11 The fruits and vegetables depot,

o investiţie promiţătoare

The company Marigaz Trade SRL inaugurated yesterday, in the Dolj town of Cârcea, the ...
the largest vegetable-fruit warehouse in the Oltenia area. The investment was made with
SAPARD grants worth nearly three million euros, total expenses
meaning approximately four million euros. The business of the two partners, Adrian
Pomană and Gheorghe Marinescu have the premises for success, especially since there is a lack in the area.
such deposits. In Romania, the businesses of the two started in 1997. "I
borrowed 1.8 million French francs from an Austrian bank and became
Shell distributor, taking care of the distribution of gas cylinders. I worked for three and a half years as
"to cover our loans, we weren't thinking at that time about expansion," he recounted.
Adrian Pomană. În prezent, firma are o cifră de afaceri de 25 de miliarde de lei vechi,
However, he manages over four million euros as a representative of Shell.
After becoming profitable, the two thought about expanding and the idea belonged to him.
Gheorghe Marinescu. "My brother-in-law was away for a while in Canada, where he had a
afacere în domeniul transporturilor de marfă. A cumpărat şase trailere cu care efectua
between Toronto and California. Most goods were fruits and vegetables and so it
"the idea appeared", said Pomană.

The collection system, already engaged

As a source of funding for the project, the two chose to resort to funds
non-reimbursable Sapard. In 2005, work was done on the concept. Market studies were conducted and
documentation about the operation of this system in other countries. In November 2006, the company
moved to the execution phase. "We have a collaboration with a seedling and seed company from
Turkey. We will distribute these seeds for free to the producers we collaborate with. We also
we also support qualitative analyses. We will particularly focus on the easier-producing varieties
of profit, meaning those that can enter the market before regular products," he further said.
Adrian Pomană. At the workplace in Cârcea, the company currently has 16 employees, but
the project will ultimately have 60-70 employees.1

Comment

One of the profitable investments seems to be the construction of warehouses for

legumes and fruits or improvement to European standards of those already existing.
This article mentions such an investment made at the largest warehouse of
legume-fruits from Oltenia that cost four million euros, being funded from sources
1
[Link]
+o+promising+investment

30
Sapard and the investor's own sources. The Dolj area did not have such a thing until now.
collection and storage center.
The warehouse has a capacity of 3,000 tons, on a total area of 4,800 square meters
squares. Marigaz Trade SRL has developed its strategy for usage and
evaluation of this deposit and is already working on the implementation of the collection system
products, seeking a collaboration with fruit and vegetable producers, having already concluded 30
contracts with companies from Dolj, Olt, and Gala ț i. In the future, the owners are considering other
deposits, but also in business in the distribution area. One of the objectives is the locality of Matca
in Gala ț i County, where there are already 300 hectares of greenhouses. Also, the two
investors want to open a work point in Bucharest.
This article can be considered a suggestion for companies that want to invest
in deposits, suggesting to them that one option could be the construction of dedicated warehouses
preserving fruits and vegetables.

5.12 Voest Alpine Ambient has a deposit of 3 million euros

The company Voestalpine Ambient Stalhandel, a joint venture of the companies Ambient and
voestalpine Stalhandel GMBH, from Austria, inaugurated a warehouse in Sibiu yesterday.
metal materials in which 3 million euros were invested.
The warehouse covers an area of 4,500 square meters and was built by the company
Sibiana Kirschbaum has a storage capacity of 6,000 tons of materials.
metalurgice (europrofile, tabla, tevi). Potrivit presedintelui consiliului de administratie
the Romanian-Austrian company voestalpine Ambient, Johannes Kasticky, two more such
Metal centers will be built in the country next year. Kasticky shows that voestalpine
Ambient focuses on the speed of deliveries. "For customers, the price matters less.
of metals as well as the availability of materials. Therefore, we want to invest in warehouses,
to deliver the goods as quickly as possible," said Johannes Kasticky. The metal center of
Sibiu has two cranes based on electromagnets, with a capacity of 14,
respectively 7 tons, as well as access to the hall to the railway. According to Ioan Ciolan,
the general director of the Ambient group, and a member of the board of directors of
voestalpine Ambient steel trading has expressed satisfaction with the collaboration with partners.
Austrians. 'The moment chosen for the launch of the deposit, close to the moment of integration
In the European Union, it is not a coincidence. The company's European coverage
Austria brings us great advantages over competitors," said Ioan Ciolan.
attended the cutting of the panel by the mayor of Sibiu, Klaus Johannis, the prefect Ion Ariton, but also
useful of the General Directorate of Public Finances Sibiu, Grigore Popescu. The deposit was
sanctified by a council of two orthodox priests.

Sales of 20 thousand euros

VoestAlpine Ambient Steel Trading is a joint venture established in March of the year
previously, in which voestalpine Stahlhandel GMBH holds a 51% stake
suta, the rest returning to the company Ambient. One of the two administrators of VoestAlpine
Ambient Stahlhandel, Cristian Paval, estimates sales of 20 for the current year.
millions of euros. For next year, the Romanian-Austrian company has set a growth of

31
sales of 30 percent, up to 26 million euros. "What we have is not just
un simplu depozit de materiale metalice. Oferim si service, cu utilaje speciale. Adica
we can make cuts, rounding and other adjustments of metal materials," he specifies
Cristian Paval, who adds that the Romanian-Austrian company has at one year from the start
effective to the activity a portfolio of 200 clients. The portfolio includes companies from
the field of machine construction, the construction of metal warehouses, combined
steel industry in the country and abroad.1

Comment

With the accession to the European Union, more and more companies have turned towards
even before joining the European Community, on modernization
of the deposits.
Voestalpine Stahlhandel GMBH is an Austrian company, headquartered in
Linz had sales of 426 million euros in 2006. The total volume of materials
sold by the Austrian company this year is around 600,000 tons. The company
Sibiana Ambient, which complements the Romanian-Austrian joint venture, has registered in
the first semester of the year a sales level of 220.3 million lei (approximately 63 million euros), in
growth of 77 percent compared to last year. For this year, the company estimates revenues of
over 130 million euros. Ambient from Sibiu invested 6.5 million euros this summer for
building a shopping center in the eastern area of the city of Baia Mare. The center has a
commercial area covered of 9,500 square meters.
The company is a joint venture between Ambient and voestalpine Stalhandel GMBH.
from Austria, inaugurated in Sibiu in 2006 a warehouse for metal materials in which it
invested 3 million euros. This is the first deposit of metallurgical materials,
inaugurated by the Austrians from voestalpine Stahlhandel, in Romania. At the inauguration
the most important were present at the Voestalpine Ambient Steel Trading deposit
representatives of the local administration, as well as powerful businessmen in the county
Sibiu being an opportunity to express its intention to collaborate with companies in need.
spaces for positioning, storage or transport.

FM Logistic from France is investing another 40 million euros.

in indigenous deposits

The French company FM Logistic will invest between 30 and 40 in the next three years.
millions of euros in Romania for the development of a storage and transportation network
of goods, declared yesterday the co-chairman of the company, Jacky Gervis, quoted by Mediafax. "The market
Romanian logistics is just at the beginning, but it will develop strongly in the coming years and
numerous competitors will emerge. We intend to build our first own warehouse right
la anul, la Timisoara sau Bucuresti, insa trebuie sa rezolvam problemele legate de
the acquisition of land," Gervis specified.
The surface of a warehouse will be between 20,000 and 100,000 square meters, and
valoarea investitiei ar putea ajunge la 10-20 milioane de euro, incluzand pretul
1
[Link]

32
the land, according to Gervis. FM Logistic entered the Romanian market in 2003 and
manages deposits with a total area of 43,000 square meters, including three in Timisoara
are two in Bucharest, in rented spaces.1

Comment

One of the companies that focused its investments on deposits is the French Company.
FM Logistic. According to the co-chairman of FM Logistic, the value of investments carried out until
The present on the Romanian market amounts to approximately one million euros. Among the clients
the company includes networks of hypermarkets and supermarkets, consumer goods companies
large consumption, cosmetics companies and food products.
The value of investments will increase as the company intends to make
investments in transportation, being an opportunity for expansion and affirmation for this company.
This article demonstrates how through the established network of warehouses, the French company
he managed to collaborate with other companies to whom he provided the necessary deposits for
their products.

5.14 Who has deposits

In Romanian retail, the landscape is getting "loaded" with more and more warehouses, "hearts" that
the goods pulse from suppliers to stores.

CARREFOUR: the French hypermarket chain inaugurated the logistics center in

2003. On the current surface (11,500 sqm) approximately 7,000 pallets can be stored.
In the warehouse environment, the French retailer works with around 60 suppliers.

METRO: Metro Cash & Carry Romania has invested 12 million euros for construction
a logistics center located near Bucharest, through which it centralizes all
logistic operations. The logistical platform, functioning since 2004, consists of a
distribution center for ambient products (7,700 sqm) and one for products
fresh (5,600 sqm).

PROFI has, in Cluj, an operational warehouse since the end of last year. Towards this
All products are delivered from the deposit, except for those with a very short shelf life.
short (milk, bakery products) and frozen products.

miniMAX DISCOUNT inaugurated the logistics center at the end of April, along with
the opening of the first stores. The warehouse, which has an area of 10,000 square meters, will
deserve the first three to six stores.

1
[Link]
40 million euros in domestic deposits.

33
 BILLA inaugurated a warehouse in Targu-Mures at the beginning of this year.

GIMA at MEGA IMAGE: at the warehouses, only for the products of the biggest
suppliers.1

Comment

The present article shows the situation regarding the ownership of large deposits.
supermarkets in 2007 compared to 2006. These supermarkets have become warehouses
for most stores in the country. The main competitors seem to be: CARREFOUR,
METRO, PROFI, miniMAX DISCOUNT, BILLA, GIMA, and MEGA IMAGE
the best logistics centers.
It seems that those from Carrefour are at the top of the ranking, through the means of
the deposit it holds, having contracts with over 60 suppliers. Those from Gima and
Mega Image at the warehouses only for products from the largest suppliers.
All these supermarkets aim for a strategy of expanding these spaces.
but profit-generating, many stores wanting to collaborate with them to
provision with the products they wish to sell in the stores they
detin.

5.15 The focus of infection in the warehouse

Hundreds of kilograms of animal meat and organ waste are lying in a warehouse in
zone of the former ILF. The goods belonged to a company from Magura, whose manager is
it seems that he has either run away or passed away. The owner of the warehouse rented to the company from
Magura points an accusing finger at the Veterinary Sanitary Directorate, claiming that they have not come to
disinfect the place. The heads of the DSV are defending themselves by saying that it is not their job to do this, but
a the owner.
A phone call to the newsroom urgently announced that, in the area of the former ILF, where there are some
private deposits, would there be a space where tons of meat rot without anyone noticing
Intervening. Upon moving to the site, we learned from the owner of the warehouses, the company
PMS International, as the space in question would have been rented to the company Manidar Invest SRL
in Magura. In this, the tenant has set up a cold storage intended for preservation of
meat. Initially, several hundred tons of such products were stored here. There are voices
said that the administrator of the company from Magura, Daniel Clatea, had disappeared suddenly, with
a total of about two million euros, the money owed to the domestic companies from which he borrowed
marfa. Others advance the idea of the administrator Manidar's death. Thus, it comes about that, through
In February, the judicial executors began to implement the court's decisions.
I understood that the owner of Manidar might have scammed some companies in the country and fled.
It's no longer found anywhere. The creditors came and took about 180 tons of meat, but
not much is left. It was winter, the meat lasted a bit longer, but as soon as the warmth came,
everything started to thaw, especially since E-On cut off their electricity," Mustafa stated.
1
[Link]

34
Solac, the owner of the warehouses. He also says that although he made numerous calls to
The Sanitary Veterinary Authority has not sent any employee of this institution until today to
disinfect the place. "For a few days now, I've been calling the DSV to send someone over.
Here is where to see how things are. I'm being told that the veterinarian is away on who knows what.
delegation, well because I should go to them to explain and so on. Because of this, I lost over
140 million lei, because I couldn't rent the space. I don't think either...
the judicial executor did not fulfill his duty to the end, he took his money for what he
"he did it and, that's it, he was no longer interested in what unsold leftovers were left," he complains.
Solace.
Additionally, the DSV director, Vasile Zaharia, claims that he notified him about this, in
written to the company PIM International. "I have made addresses for them, including to the executor.
judge, to allow me to take samples from storage. Up to this hour I have not
I didn't get any answer. I know it smells and that it is not right, but I can't do anything.
outside the law. Tomorrow, (today's note) I will ask the City Hall to establish a committee from which to
a delegate from them, a police officer, two doctors from my side, and the executor
judge, so that I can enter the deposit," declared director Zaharia. On the other hand,
if the judicial executor defends himself, claiming that he has monetized the seizure and no longer
there is nothing under seal. "You realize that it was about perishable products and I couldn't
risk, especially since in the middle there is a bank that had to recover about 15 billion. Creditors and-
they took what they had to take and that's it. I also spoke with another colleague who had a seizure at
the same address and he told me that he took everything he had to take. In the end, I understood that
The store manager in question should have resolved the issue with the remaining products.
feminizer. Last Friday he completely emptied the warehouse.1

Comment

It is not enough to have a warehouse if you do not maintain the conditions within it.
hygiene or temperature specific to the type of goods stored within it. This
The article discusses the problems that arise from such recklessness, such a case
was discovered at a company in Magura that had an infected deposit in which there were
Store 2000 kg of meat. The company Manidar Invest SRL has a deposit.
refrigerator designed for storing meat. However, later, because the company's manager
Manidar did not pay for the goods, and the creditors were forced to turn to the court.
A part of the deposited goods has been recovered by creditors, in the space rented by
Manidar rammed approximately 1,000 kilograms of meat and organs of
animal. The big problem is that the animal remains have started to rot,
due to the non-payment of electricity bills, the energy supplier
the electricity has disconnected the warehouse from the network.
In turn, the leadership of the Veterinary Sanitary Directorate defends itself, stating that it does not
it can intervene at the depot as long as a seal is applied to it. Currently, the depot

1
[Link]
[Link]

35
it is legally free, and as such, the owner can clean up. In case
However, the Veterinary Sanitary Directorate will have to enforce the law, and it will have to prohibit
storing meat of any type in such a storage space.

36