Business which relies on innovation has sustainable development

When I suggested to Hristo Urumov to do an interview with him for a magazine Logistics, he said: "There is not much to tell about me, you better come with me to see some of the oprojects of STORACT." And we went to Trojan, which currently builds the company store, which is self-supporting structure. This store is being built for the second time in Bulgaria and has a number of specific features. Along the way, while asking the questions that interest me I was  convinced that Hristo Urumov and STORACT are one and the same as for Mr. Urumov business is the most important thing in his life.

- Mr. Urumov, what distinguishes one company from another at your market?
- One company, to be distinguished on the market has to be innovate. For me the chalange is to be the leader having unusual projects. I knew that this will lead. I think to survive in this business, you should be above the rest in technical and engineering terms.Otherwise you are a regular vendor. The difference between Storact BG and other companies on the market is in innovation. When somewhere there is a complex project, the usual practice is this: client entrusts it to us, we design it and then give the client the finished project. To create a complete project it is  required to have a team and in Storact BG we have six engineers who all the day are dealing with the design of storage systems and are able to do any custom projects. In addition, they design and some unusual items that are sometimes necessary to complete the overall design of the storage system.

We also have a serious software security - three types of software:
- Software for design of storage systems based on Autodesk and is specially designed by a team of STORACT - engineers and programmers. This software automates the calculation we get the materials for a project and 3D visualization of the project.
- CRM (Customer Relationship Management) system from Microsoft for managing commercial part of the company as our company was the first implementation of this system in Bulgaria.
- With Navision to Microsoft finance and manage the movement of materials and stores.

- From where is this affinity to engineering solutions?
- In 1980 I graduated with a gold medal at the Technical University of Sofia (or both then said TU), Transport Department, in "Cars, tractors and trucks." Not that engineering was my childhood dream, actually a friend wanted both to become ski instructors, but it was not serious. After graduating, I went to work in Balkancar Progress. This was a huge development center, which was concentrated in the greater scientific power. Today one can say that this is ridiculous, but such a center, as it was Balkancar Progress, was the only one at that time in the world. There I started as a designer. One of my first projects was a machine for unloading luggage from passenger aircraft. It was implemented, tested it at the airport, produced a further four such machines and the project stopped. Then I was in the team that created the first elektrosolaren car in Bulgaria. This again was an innovative development. I had to make electric car, but the current comes from solar panels. The project was joint with the Russian state company from Krasnodar - the only one that made solar batteries for missiles. We reached the final test it for one month, but there ... and this project never saw the light of the day. Then for three years - from 1985 and until 1988, I was Head of the automated systems robokarni. These are cars that run automatically - one time was on cable, now controlled by a laser beam. Then we made a very big project in a factory in Troyan ELMA - GATS (flexible automated systems). 

- How did you step into the private business?
- Since I was already quite clear which way things will develop I decided - go into private business. First I started working with a company of the group Terex - this is a major U.S. company for construction machinery, and with it began to produce a machine of their range in Bulgaria, which said front and back wheel loader - these are communal machines. We managed to make 27 such machines, which are still operating on Long Island. This period lasted until 1996, then they stopped the project because they did not not have financial support.
At the same time a German group started and organized the production of trucks in Bulgaria brand Clark. Clark Mulheim made a new family of trucks and old adopt it here to begin production in Bulgaria - Blue Line name was included and range from 1.6 to 1.8 t trioporni electric and gas / diesel trucks - 1.6, 1.8 and 2 tons and trucks under the brand went Sparky. Produced a nearly 100 such machines, mastered most of the elements of their production here in Bulgaria - worked for us perhaps more than 15 Bulgarian the factory. The great inflation in early 1997 caught me on the way to Ruse - then they bought Sparky "Agromachina" in Ruse. I became director of this company and this position I worked almost three years. The situation was desperate - a huge factory, which once employed 5,000 people, and when I went, there were 300. I thought, and thought and  I concluded that with such personnel trucks can not be produced. Then I compatibility oriented the business together with the owners of the company to produce steel products as a subcontractor of manufacturing companies - Italian, Irish and German.

Business card
Hristo Urumov was born in Sofia on July 16, 1955. In 1980 graduated from the Technical University in Sofia, "Cars, tractors and trucks." Works in Progress Balkancar - Balkancar development center, where he is the author of seven inventions. From 1990 to 1993 he was deputy director of this research institute, responsible for innovation. In 1993, he goes into private business - produces construction machinery with the American company, brand trucks and Sparky, he is director of the enterprise "Agromachina" in Ruse. In 2000 he found Storact BG company, which is representative of the Spanish manufacturer of storage systems Mecalux, and since then his life is connected with the construction and design of storage systems. "I have no hobby - says for himself Hristo Urumov - my hobby is my work.

- What means the name of the company - STORACT?
- The name is short for STORage ACTivity - warehousing. STORACT was registered in 2000 and since then is my partnership with Mecalux. STORACT was created, first, because I was tired to travel to Rousse and secondly because I thought it was my last chance to do something entirely mine, as in me is the spirit of an owner. In Balkancar I had the opportunity to learn to look at technical things, but from my experience of the next six years I started thinking commercial.  And then I realized that the biggest companies in the world and the fastest growing are those that offer innovations.  I told myself that I want this company to be the first at least on the Balkans. Then it was funny because in the beginning we were only three people, but today I can say that we have achieved. Apart from Bulgaria, the company has offices in Greece, Serbia, Romania and Macedonia, I would say that we have a comprehensive organizational structure to ensure all activities STORACT.

- Many people and companies want to be No. 1 on the market, but not all succeed. Besides the vision that you want to be number 1, what else is needed?
- The condition is to have a good product - and we have chosen to offer better products than the others. The second very important thing is to have good service. We offer such good advice, good design, good installation, good service ... all manager or owner can not make it itself. He must select the best people. It may sound frivolous, but I choose people by feeling – I will give an example with skiing. Although one never learned to ski, I encourage him skiing -  he falls, gets up, it hurts, maybe leg break, but the second or third time he starts skiing. These are the right people for me.
- Are there principles that you do not  break?
- Do not sell without VAT. Why? Just generally, I think some things should be respected, although I lost business because of this.  Never going to be late to pay VAT to the State, not because I fear that someone or could fine me, just because I believe it is not right to do. Do not argue whether the state helps me or whether it is worth simply by doing business, so it should be.
"Without a good product, good service and good team you can never become number 1"

- What are the trends in warehouses and particularly what kind of storage equipment they use?
- Can be divided into two trends - ones customers want to do, automation, and others do not want. For those who want - to say that they are about 50% tend to make more fully automated warehouses. The second group of customers who do not want automated warehouses tend to chase the minimum price the supplier of warehouse equipment. Most often choose automated warehouses major manufacturers. These stores are not suitable for 3PL company because it must be able to store a variety of goods - different pallets in various sizes. And for an Automated Real-time warehouse pallets is very important that included, are extremely high quality and uniform.
- Which of your projects are the most interesting?
- The aim of our company to be innovative lead us to the fact that we did the first automated warehouse in Bulgaria. The first store with mobile shelving is also made from STORACT, stores dynamic first inclined we are also doing them in Bulgaria, the first Kardex machines we install them. Here mention more complex projects, such as automated warehouses, because they are most interesting to me.
- Yes, next year. This is a political and economic crisis due to the instability of the European Union as a result of the debt crisis. The EU's leading economies like France and Germany have increased 2-3%, this practice is not real growth. As growing economies can be viewed Turkey - 7%, China - 8% ... So
next year will still be a difficult year. What actually happened? This summer, all who have money, understand that the most risky thing to do is put them in government bonds. While this summer was to accuracy but the opposite - government bonds were the safest investment. So now people with no money to invest in government bonds. From there comes the panic of the ruling, since every country in Europe every year, in need of money - such as start and finish from Germany to Greece. Why? Because the annual budget is in deficit. This will mostly polished next year in summer, because all countries will understand that there is nobody to give them more money to hide the deficit.
- What is the secret of a successful manager of a leading company?
- The manager must be fully dedicated to business that makes. Personally involved. In recent years the business has become so difficult  that you have to be 100% involved to it. Of course, at the expense of other things in life. I do business and almost nothing else - and on Saturday and Sunday .  Thinking about hobby….Maybe business is my hobby.
- From what do you have the greatest satisfaction?
- Surely it is not the money. For me it is an important challenge - to win a tender for a standard warehouse is not my interest. The more complicated the warehouse is, the more I happier I am if I win the project. We did in Macedonia warehouse freezers with eight - four identical, but each of the other four is different and each chamber shall be designed separately. This project I won because I came up with a very good solution for  the cameras. Finally, when they announce who won, the owner of the company said: "Hristo won it because he gave me more than technical solutions." Here this is what gives me satisfaction - when you win that way .
For me it is an important challenge, the more complex is the warehouse, so I'm happier if I win the project
Warehouse in Troyan

We visited with Hristo Urumov "KALINEL" in Troyan. It is a manufacturer of pillows and blankets - one of the largest suppliers's IKEA not only for Bulgaria and for IKEA as a whole. As the business grows, "KALINEL" decided to build a warehouse where they stored the output and thus to meet the necessary supplies during the peak season. The parameters of the warehouse are 44 x 36 x 15 meters, its capacity is 5200 pallets and work with VNA machines. The most interesting is that the warehouse is the first monolithic concrete slab poured on it and build shelves that are part of the building. The explanation is simple at first glance, but construction of such things is subject to a number of features - first, workers mounted racks, outdoor work, and secondly, as part of the rack structure "participate" in the regularization of the building. The warehouse should be completed before the end of this year, so installation crew of 9 persons, headed by Svetoslav Halachev fully operational. Hristo Urumov talks with each of them separately. We meet with the owner of the company Marin Radevski and representative of the company, which has just signed a contract to build the warehouse sprinkler system. Then we take the car and set off back to Sofia. Half an hour later there was a call on Mr. Urumov’s mobile phone – the call was from "KALINEL" in connection with a problem on the installation of sprinkler systems. Without saying a word, he turned the car and back in Troyan. "You did some mistakes on the project? "- I asked him cautiously. "No, our project is executed exactly - saidthe owner of" STORACT "- but you need to help the colleagues to solve problem."

They say that in life nothing is accidental.  He might say something like: "It is not my problem" or "I will call you these days and see what we can do." But not ... and we went back on site. There on the spot after an hour discussing the solution was found. Because this is Hristo Urumov - who wants to be number 1 in his business.