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DeLonghi coffee machines and Loscam pallets

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Every day, thousands of Australians get their “caffeine hit” from one of the DeLonghi coffee machines that have become an essential part of any office. But the thousands of coffee machines, fixed and portable air conditioners, fan heaters and oil-filled heaters, plus their Kenwood range of mixers, blenders and toasters, just don’t appear in shops as if by magic. And that’s where David Setter, DeLonghi’s Operations Co-ordinator and Loscam , come in.

David explains, “I have been here for about 12 months and was brought on board initially, to do some consulting. I realised that it was a lovely company, with some very nice people and they made me an offer to handle the logistics side of their business. We have about 17 or 18 people and we are in the process of reclaiming logistics work from our Third Party logistics provider.

“DeLonghi is a multi-national company, and the majority of the shares are owned by the DeLonghi family. They are a world-wide company and their Australian operation has grown through the years. We are famous for our fully-automatic coffee machines, espresso machines, household goods, major kitchen appliances, like oven cook tops and range hoods. These are all sold through major retail appliance sellers.”

David said they moved into a new building in 2008, which was part of a total review of the company’s logistics function. One of the areas looked at, was the company’s pallet use. “We said: ‘How can we do this better, more effectively, more efficiently?’“ said David.

“So, I caught up with John Vlatko from Loscam and he presented a proposal for review. We could see it would be good for us and it has been a very good relationship.”

Because DeLonghi sell and market a premium product, they need to support that. It’s not just the sales staff, David said, but also the transport company, the pallet providers etc. Everyone has to ensure that the product gets to the customer in the very best condition. Previously, before Loscam, there had been a concern.  

Product comes from Italy and from manufacturers around the world. From the NSW DC, the company supplies all states except WA, where they use a Third Party warehouse operation. “If we have box damage, we won’t sell that item off the shelf,“ David explained. ”So we want to make sure that it gets to the retailer in pristine condition.

“The pallets Loscam have supplied us, have been first class. They have treated us as a client they want to have, rather than just another client. So from that point of view, the service levels and the product we are receiving, have been outstanding.

“Through the transport company, we did research to see if retailers had any problems receiving stock on Loscam pallets and they were more than happy to receive stock on the red pallet. The transition to the red pallet, has been very smooth with no hiccups.

“What interests us is the ability to supply pallets when we need them, the quality of the product and the background of that company and how they support that product. We are passionate about how we support our products and we need to know that our suppliers can support their product and react quickly if there is a problem.”

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