Flying Cargo: "Proper Management of the Supply Chain Enables Growth"

Israeli companies excel in inventing, developing and selling groundbreaking products. Time and again, manufacturers and exporters in the country prove their ability to efficiently and expertly lead the journey that a business idea undergoes: from the development process to the launch of a product that can be successfully sold around the world. However, the journey of a new product is not limited to development, production and marketing: supply chain management is a significant component of the business activity of any manufacturer or exporter.

For the most part, aspects related to logistics and supply chains are not part of the core capabilities of Israeli businesses and are viewed as a limiting factor with many constraints. Many Israeli companies, in fact, have difficulty with handling and creating added value to the processes of storage, purchasing, transportation and management of raw materials, feeding the production line and logistics that support post-sales activities, such as storage and transportation of finished goods or handling spare parts and consumables. In an increasingly competitive world, it is extremely important to achieve smart and efficient supply chain management. This is where Flying Cargo, which specializes in outsourcing logistics and supply chain processes, comes into the picture.

In the past, Flying Cargo was identified with shipping services but today it focuses on supply chain operation and management of the production process, finished products, handling spare parts and distributing consumables post-sale for advanced industries, in addition to storing and distributing consumer goods. "The basic mission of the company is to enable our customers to be more competitive in the market in which they operate," says Roy Raphael, co-CEO of Flying Cargo. "We provide outsourced logistics services to help companies turn their supply chain into an integral part of their value chain."

According to Raphael, Flying Cargo's expertise in the world of logistics repeatedly proves itself thanks to the range of solutions it offers its customers. "We understand the great value inherent in efficient and streamlined supply chains, and so we always think about value-added services such as quality control laboratories, easy assembly and production lines – this is much more than just storage and transportation. We always think about how to shorten the logistics process for the customer, how to save resources and enable the client to do more with less. In addition, we established a Global Supply Chain Management Division, which allows Israeli customers to receive logistics solutions outside of Israel in different geographical areas and at varying scopes, with uniform processes under one system, while using economies of scale of our partners across the globe."

"Our experience is also very relevant at the moment, as businesses are experiencing uncertainty due to the war. For example, there are customers who want to split inventories between sites, relocate factories, and so on. In fact, through creative solutions we help them achieve business continuity and avoid fixed costs that are not suitable for this period."

Raphael emphasizes that Flying Cargo's capabilities are based on the company's extensive infrastructure and committed and professional human resources. "Logistics is a very physical world: we must transport goods and equipment with a high level of precision and we do this based on the appropriate infrastructure. We have ten logistics centers with different specialties, spanning medical equipment, security systems, and climate control of sensitive food products. We have IT systems at high international standards that enable us to support our customers and their needs. Flying Cargo operates an advanced transport system, including ground transportation solutions that meet the needs of the most demanding customers such as the Ministry of Defense and technology and medical companies."

Flexibility in logistics management

Alongside Raphael, the company is headed by co-CEO Itai Arbit. He explains that outsourcing supply chain management gives customers maximum flexibility thanks to the economy of scale advantage of the logistics provider. "Because we have a wide variety of customers in various sectors, we know how to make ongoing adjustments to the scope of activity. During the war, for example, defense companies experience an increase in operations while other companies reduce their activities. We make these adjustments all the time: we have employees and infrastructure that provide services to a variety of businesses, and in an emergency one sees an upsurge while the other falls. Even during regular times, when the mix of the manufacturer's end customers or its production volumes change, a stable supply chain is maintained. This flexibility is highly significant for our customers' business results."

As mentioned, the business model used by Flying Cargo is designed to allow manufacturers and exporters to focus on their core activities and entrust the logistics management to a company with expertise in the field. "Logistics is the core of our business," says Arbit. "And naturally, it's not the core of our customers' business – they specialize in planning and development, production, sales and marketing. An individual manufacturer will never be able to invest in the supply chain the thought, planning, systems and infrastructure that we invest on a regular basis. At the end of the day, companies that work with us receive a precise, efficient and economical logistics chain, usually as a variable expense compared to the alternative of an independent supply chain, which is sometimes inefficient, less flexible and has fixed costs."

Four professional divisions

Flying Cargo is one of Israel's leading logistics and supply chain companies. The company operates four divisions that provide services to four main areas of activity: the Advanced Industry Division that focuses on supporting local industry or international manufacturers operating in Israel; the Retail Division that focuses on consumer products, mainly in the food sector, specializing in storage under climate-controlled conditions and distribution capabilities; the Transport Division that enables the transportation of all goods and raw materials to and from the ports (air and sea); the Global Supply Chain Management Division, which supports the success story of some Israeli high-tech companies by enabling operations in broad geographical areas outside of Israel. Flying Cargo's advanced infrastructure system is adapted to the needs of companies working in the defense, medicine, high-tech, semi-conductors and food industries – and also provides services to companies that need to operate warehouses and distribution lines abroad.

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