A TECHNOLOGY COMPANY IN THE LOGISTICS SECTOR

Strategic Positioning

Borusan Lojistik is committed to develop and run digital platforms delivering specialized solutions for its customers, targeting excellent customer and employee experience, as a technology company operating in the logistics sector.

Borusan Lojistik aims to continuously transform and expand its operations powered by agile technology development and Borusan Lojistik’s expertise, also driving the digital transformation of the Turkish Logistics sector as a strong leader.

Sectors Served

Core sectors served by Borusan Lojistik are food & beverage, consumer goods, e-commerce, durable goods, industrial products and automotive manufacturing, representing ~70% of total turnover.

Products and Services

Borusan Lojistik’s operations can be grouped in three categories:

eTA:

• Digital platform for domestic full truck load (FTL) services

Partial Delivery Network, Special Distribution & Home Delivery

• Domestic partial delivery network from 81 cities to 81 cities
• Special distribution and milk run operations
• Storage and customer facility management services including vehicle logistics

International Logistics Services:

• International land transportation
• Air and Sea forwarding
• Chartering services
• Project logistics and heavy transportation

eTA

Founded in 2012, eTA is the first digital logistics platform in Turkey, bringing shippers and truck drivers digitally together without any need for intermediaries.

During its initial phase, eTA was mainly focusing on small sized business while large key accounts’ operations were managed by Borusan Lojistik. This has given eTA a unique opportunity to assess large scale operations for future digitalization, while running a pure digital operation with early adopters from both shippers and truck drivers.

After eTA has reached the target technological maturity and scale especially in terms of member truckers; Borusan Lojistik and eTA FTL services have been migrated under the eTA Platform. Today, there are 156,000 truckers registered on eTA, with 36,000 truckers having downloaded the eTA mobile application to their smartphones and 6,000 truck drivers using eTA actively. In 2019, 270.000 trips have been planned and executed through eTA. Together with the 130.000 trips operated by Borusan Lojistik before the migration, the total number of annual FTL trips reaches to 400.000.

Truck drivers can sign up to the eTA Platform through the eTA mobile application by uploading their vehicle and commercial documents, which are reviewed and approved by eTA team. Following the sign up, truck drivers can browse through trips published on the eTA mobile application, bidding instantly for trips, and can also request loads for desired routes in advance, so that they can secure their future dated trips.

eTA operating model can be best described as “digital forwarding” where all the deliveries are operated by Borusan Lojistik. In order to ensure excellent shipper experience with no compromise on “On Time In Full” delivery performance, trucks owned by Borusan Lojistik are used to cover in case an independent eTA Platform member trucker cannot initiate a trip.

Same principle holds true for eTA Platform member truckers. All payments upon successful completion of a trip are made by Borusan Lojistik through eTA Card, eTA Platform’s payment system, offering discounts and benefits to truck drivers besides instant payment.

Since 2012, eTA platform was developed by Borusan Lojistik in-house R&D. In 2019, eTA’s infrastructure is completely transferred to cloud services to support the fast growth of the transactions through eTA platform and also to benefit from cloud computing services mainly for personalized trip recommendations for truck drivers and best available price calculations for the shippers.

Besides efficiency and customer satisfaction through digitalization, another critical success factor for eTA is the environmental sustainability. Empty trip rates for FTL services in Turkey are estimated around 18%. By offering personalized trip recommendations and assigning the nearest truckers to trips, eTA aims to bring this rate down to 12%, reducing carbon emissions caused by FTL trips. 

Partial Delivery Network, Special Distribution & Home Delivery

Borusan Lojistik, as part of its domestic logistics services, provides partial land transportation, special distribution, milk run operations, and storage & customer facility management services including vehicle logistics.

Borusan Lojistik’s partial delivery network covers 24 distribution centers and 93 pick-up & drop-off locations, enabling deliveries from 81 cities to 81 cities across Turkey. In 2019, 613 million of loads have been carried through the partial delivery network.

Becoming the backbone of the omnichannel operations and e-commerce deliveries in Turkey is a key strategic priority for Borusan Lojistik. In 2019, high desi products, mainly durable goods and large electronics constituted the majority of omnichannel and e-commerce operations, while the scope of operations will be extended throughout 2020 and 2021.

As part of special distribution and home delivery operations, Borusan Lojistik carried around 5 million volumetric weight and completed more than 1,300 home deliveries, in 2019. These deliveries are complemented with digital solutions such as “scheduled deliveries integrated with e-commerce platforms” and “traceability of deliveries” targeting excellent customer experience

In 2019, Borusan Lojistik has opened the Tepeören Warehouse, as its main warehouse for storage services, offering 1.500 m2 open and 93.000m2 closed storage area. In total, Borusan Lojistik has 405K m2 open and closed warehouse area in 37 warehouses across Turkey. Besides its own warehouses, Borusan Lojistik is offering storage services at its customers’ facilities.

International Logistics Services

Borusan Lojistik provides land, railroad, air and sea transportation services, as well as multimodal transportation operations as part of its international logistics services.

In 2019, Borusan Lojistik’s international logistics operations focused mainly on Europe, North America, Russia, Middle East, Central Asia and Far East.

Borusan Lojistik’s International Land operations mainly focus on European destinations and completed around 20.000 trips through a wide network of agents and partners, in 2019. Services cover full truck load and less than truck load deliveries, as well as intermodal operations.

Borusan Lojistik’s air forwarding operations cover 80+ airlines through DSE Agreements in 120 countries and 275 destinations. Borusan Lojistik has become one of the Top 10 IATA Agencies in Turkey, in 2019, in terms of weight forwarded.

Besides the forwarding operations, Borusan Lojistik provides logistics services for project loads that require sensitive handling, as well as for heavy cargo and special equipment transportation. Borusan Lojistik’s project logistics services include chartering, project consultancy, heavy/oversized cargo operations, vessel loading/discharging operations, post terminal operations, warehouse management, door-to-door logistics organization, unloading at customer site, site operations, installation at site, and energy logistics.

2019 Business Outcomes

• Borusan Lojistik’s 2019 turnover was TL 2,522 million, with a 6% decrease vs 2018.
• Despite sales decrease, the EBITDA margin was kept at the same level as 2018, mainly through cost efficiencies achieved through digitalization.
• Number of trips planned and executed through eTA grew by 5 times vs 2018, reaching to 270K