When the Construction Material Is Missing, Production Comes to a Standstill: How the Logistics Provider Michels Prevents Supply Bottlenecks

Anyone who produces and delivers construction materials or raw materials as bulk goods knows the problem: the production site is far away from the customer. The silo capacity at the customer's premises is limited. If supplies do not arrive on time, a production standstill is imminent. This is precisely where the silo logistics of Karl Michels GmbH & Co. KG comes in. With its own stationary silo system with a total volume of 760 m³, Michels acts as a regional logistics hub for powdered and free-flowing goods between Cologne and Frankfurt – right in the heart of Germany – and structurally reduces or prevents supply bottlenecks.

Table of Contents

What is a silo and what is a stationary silo system?
What is stored in a silo? Construction materials and raw materials at a glance
When production and offtake are too far apart
The solution: silo logistics as a buffer in the supply chain
The stationary silo system at Michels: capacity and structure
Location as a competitive advantage: short distances to customers in the region
Construction material freight forwarding and bulk goods logistics from a single source
Conclusion: Silo storage as a strategic component of supply security
FAQ: Frequently asked questions about silo logistics and bulk goods storage

What is a silo and what is a stationary silo system?

A silo is a closed storage container for loose, free-flowing bulk goods. Unlike conventional warehouses, silos are specifically designed for unpackaged, granular, or powdered materials. They enable continuous filling and discharge and reliably protect the stored material from moisture, weather, and contamination.

The term silo is used differently across various industries. In agriculture, many people first think of the storage of grain or animal feed. In industry and construction material logistics, however, a silo refers to a container for powdered or granular construction materials and raw materials such as cement.

A stationary silo system is a fixed silo infrastructure permanently installed at a location. It consists of several individual silos operated together, forming a high-performance storage facility for powdered and free-flowing goods. Unlike mobile silo trailers, the stationary silo system is permanently anchored at the site and designed for the interim storage of larger quantities.

Karl Michels GmbH & Co. KG operates its stationary silo system exclusively for industrial construction and raw materials. This specialisation means the system is specifically tailored to the requirements of the construction and raw materials industry.

What is stored in a silo? Construction materials and raw materials at a glance

In the construction and raw materials sector, silos are used primarily for materials that are sensitive to moisture and are required in large quantities. Typical goods stored in a silo storage facility for construction and raw materials include:

• Cements and fly ashes: the classic construction materials that must be stored completely dry, as they react upon contact with moisture and become unusable
• Lime: used in the construction industry and in environmental technology
• Gypsum and anhydrite: sensitive raw materials used, among other things, in interior construction
• Further mineral construction and raw materials in powdered or granular form

A key factor in determining whether a material is suitable for silo storage is its free-flowing properties. The material must be capable of being loaded and unloaded using the conveying technology in use. The stationary silo system at Michels is designed precisely for these requirements.

When production and offtake are too far apart

Producers of powdered or granular construction or raw materials frequently face a logistical challenge: their production sites are far from their customers. Production runs in large batches, while customers require the material on demand and in smaller or larger quantities.

At the same time, silo capacity at the customer's premises is often limited. Small stationary silo systems at the customer's site are insufficient to accommodate large delivery quantities. The result: the producer cannot deliver in economically viable large quantities, and the customer cannot order in advance.

The consequences of this imbalance

• Supply bottlenecks for construction materials: when supplies do not arrive on time, the material is missing precisely when it is needed
• Production standstill: industrial operations that depend on a continuous supply of raw materials are forced to interrupt their production
• Waiting times and congestion: long transport routes from the producer directly to the customer lead to long delivery times and increased planning effort

This tension between long lead distances from the producer and the need for short, flexible delivery routes to the customer is the central problem that Michels solves with its silo logistics.

The solution: silo logistics as a buffer in the supply chain

The answer to this structural problem is the decoupling of raw material production and offtake behaviour through a regional logistics hub. Michels takes on the role of intermediary: the producer delivers to the stationary silo system in Meudt independently of the customer's offtake behaviour. From there, Michels supplies customers in the region on demand, quickly, and with short transport routes.

The principle of decoupling

• Michels collects any quantity from the material producer independently of the customer's ordering behaviour and delivers it to its own silo hub
• The material is stored on an interim basis in the stationary silo system with a total capacity of 760 m³
• Michels supplies customers in the region just-in-time and on demand
• The customer receives their material quickly, without having to maintain large storage capacities themselves

This buffer in the supply chain significantly reduces or even prevents the risk of supply bottlenecks. The producer can optimise their logistics, the customer gains supply security, and Michels, as a specialised logistics service provider, creates the necessary balance between both sides.

Just-in-time supply as a competitive advantage

Just-in-time delivery in bulk goods logistics means: the material arrives exactly when it is needed. This means the customer does not have to maintain unnecessarily large stock levels and the risk of a production standstill due to missing supplies is reduced. Michels enables this principle through the combination of a regional silo storage facility and its own fleet of silo trailers.

The stationary silo system at Michels: capacity and structure

The stationary silo system of Karl Michels GmbH & Co. KG was specifically designed as a logistics hub for the storage of powdered and granular construction and raw materials. The system consists of a total of six stationary silos with a total volume of 760 m³:

• 4 dual-chamber silos with a volume of 2 × 60 m³ each
• 2 silos with a volume of 140 m³ each
• Storage: dry, dust-free, protected from the elements
• Suitable for: powdered and granular construction and raw materials

The system was constructed in 2014 with four silos and expanded by two additional silos in 2017. In 2021, the entire high silo system was insulated and enclosed. This measure improves temperature stability at the silo walls and protects the stored materials even more reliably from the effects of weather.

Dry storage is an important prerequisite for moisture-sensitive construction materials such as cements, fly ashes, gypsum, anhydrite, compounds, or lime – moisture can alter the material properties and render the products unusable. The closed and insulated design of the stationary silo system protects the stored materials from the effects of weather.

All information on the system, available capacities, and contact persons can be found on the Stationary Silo System service page.

Location as a competitive advantage: short distances to customers in the region

The location of Karl Michels GmbH & Co. KG in Meudt in the Westerwald is no coincidence. The company is situated centrally between Cologne and Frankfurt am Main, right in the heart of one of Germany's economically strongest metropolitan areas.

For silo logistics and transport, this means: short distances to many customers throughout the entire region. The direct connection to the A3, A5, A48, and A61 motorways enables fast response times and efficient route planning. In addition, Michels benefits from its proximity to the Rhine ports of Bendorf, Koblenz, and Andernach, which in turn are directly connected to the ports of Rotterdam and Antwerp.

It is precisely this location that makes Michels the ideal logistics hub for powdered and free-flowing goods: the lead distance from the producer can be long, while the delivery route from the logistics hub to the customer remains short. That is exactly where the added value of the stationary silo system for the supply chain lies.

Conclusion: Silo storage as a strategic component of supply security

Silo logistics is more than the storage of powdered and free-flowing goods. It is a strategic instrument for stabilising the supply chain between producer and customer. The stationary silo system of Karl Michels GmbH & Co. KG with a total capacity of 760 m³ creates precisely this buffer: producers can deliver in economically viable large quantities, and customers are supplied on demand and just-in-time.

Supply bottlenecks for construction materials and production standstills due to missing supplies are thus a thing of the past. The location in Meudt in the Westerwald, centrally situated between Cologne and Frankfurt, makes Michels the ideal regional hub for the storage of powdered and free-flowing goods and silo transport.

For a direct enquiry regarding silo storage, the team of Karl Michels GmbH & Co. KG is available at any time. Submit enquiry now.