Dematic SWOT and PESTLE Analysis
ID : 52850753| Feb 2023| 18 pages
COMPANY PROFILE -Dematic
Business Sector :Information Technology, Supply Chain Automation
Operating Geography :United States, North America, Global
About Dematic :
Dematic is an American supplier for materials handling systems, software and services. It is headquartered in Atlanta, Georgia. It leverages the talent of 6,000 employees and has manufacturing facilities and engineering centres in Australia, United States, Mexico, Italy, Czech Republic and Germany. Dematic has been a member of KION group since 2016. In 1819, Dematic was formed in Wetter, Germany with the establishment of Mechanische Werkstätten Harkort & Co. Dematic system's primary market comprises of grocery food and beverage, e-commerce, general retail, wholesale, manufacturing, apparel, parcel, pharma/healthcare and document management. Dematic plans and manufactures material handling equipment such as automated storage and retrieval systems (AS/RS), individual products, various types of sortation systems, conveyors and order picking systems and alongside these, it also provides consultative, planning, and design services. The company also offers software for warehouse management systems, systems that support material flow and paperless order picking operations. Dematic provides customer services such as the technical operation of facilities and their maintenance, including complete enterprise asset management. In 2021, the company aims to generate profitable growth and further improve its market position fueled by growing tendency of consumers to purchase online, increasing fragmented supply chains in the global economy and the desire to explore new drive systems and energy sources. In 2019, Dematic won the Red Dot Award: Brands & Communication Design 2019.Dematic's Unique Selling Proposition or USP lies in being one of the world's largest materials handling systems supplier and a leading provider of automation technology and software solutions. Dematic's mission statement reads, "Our mission is to improve efficiency and logistics processes with integrated systems, services, and products — worldwide. At Dematic, we pride ourselves on being the leading supplier of integrated automated technology, software, and services to optimize the supply chain. Simply put: We help keep the world moving".
Dematic Revenue :
€2376.1 million- FY ending 31st December 2019 (y-o-y decline 15.85%)
€2051.1 million- FY ending 31st December 2018
Competitive Analysis of Dematic
SWOT
PESTLE
The SWOT analysis for Dematic is presented below in a table followed by the detailed analysis report.
| Strengths | Weaknesses |
| 1. Single largest brand in the KION Group of companies 2. Largest Provider of supply chain solutions 3. Innovator of the first fully automated packaging system for last mile delivery 4. Highly profitable and growth oriented business 5. Making KION group the “One Stop Solution” for all inventory management requirements 6. Usage of virtual innovation to provide solutions of actual problems of customers 7. Large base of global brands as customers | 1. Multiple acquisitions within a short span of time led to increased liabilities |
| Opportunities | Threats |
| 1. Demand for effective return model of online retailers by customers 2. Higher stock turnovers due to growth of e-commerce sector | 1. Reluctance of customers to invest in supply chain up gradation 2. Pressure from the trend of acquisition of peers by larger groups 3. US-China Trade War may disrupt growth due to Chinese ownership |
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Detailed SWOT Analysis of Dematic
Strength
1. Single largest brand in the KION Group of companies: Dematic is the single largest brand under KION Group's supply chain solutions segment. Which according to the KION Group has expanded at a faster rate than global economic growth over the past five years with an average annual rate of around 6 percent. Of the relevant market volume, almost 60 percent is deemed to be attributable to industrial trucks and related services, while the remaining market volume is accounted for by supply chain solutions.
2. Largest provider of supply chain solutions: Kion Group's supply chain solution segment comprises the Dematic brand offering an extensive range of intelligent supply chain and automation solutions. This segment utilizes technologies and software solutions to optimize supply chain. Additionally, manual and automated solutions render multiple functions across supply chain from transportation of goods to value-added packaging. Based on its revenue, Dematic is the biggest supply chain and automated solution provider in the global warehouse automation. Dematic is also a leading vendor in the fast-growing AGV and AMR segment.
3. Innovator of the first fully automated packaging system for last mile delivery: Dematic's Packmyride was the World's First Fully Automated Parcel Loading Solution. Packmyride integrates intralogistics systems with automated guided vehicle systems thus providing fully automated parcel loading solutions for the 'last-mile' stage of delivery. Clearly, the intralogistics automation specialist has displayed its pioneering capability and once again proved its innovative strength.
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Weakness
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Opportunity
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Threats
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Major Competitors :
- Swisslog
- Intelligrated
- Daifuku
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Dematic SWOT & PESTLE Analysis Report
1. KION Group annual report 2019 - https://www.kiongroup.com/KION-Website-Main/Investor-Relations/Reports-Presentations/2020-Reports-Presentations/kion_group_report_en_2019_fy.pdf
2. Behind KION Group's acquisition of Dematic - https://www.supplychain247.com/article/behind_kion_groups_acquisition_of_dematic
3. Dematic latest news - https://www.dematic.com/en/news-and-events/press-releases/
4. Dematic micro fulfillment technology piloted by PepsiCo - https://www.supplychaindive.com/news/pepsico-dematic-micro-fulfillment-technology-automation-pilot/588815/
5. Dematic Case study - https://www.dematic.com/en/downloads-and-resources/case-studies/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Dematic SWOT and PESTLE Analysis
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