Leadership Across Generations: - IAM

Decapack’s main office building in Santiago, Chile
Decapack: Family-Owned
Business in Chile
By Alvaro and Jorge Stein
Chile-based Decapack (www.decapack.com) was founded
by Carlos K. Stein in 1942 as a branch office of an Italian
forwarder. In 1962 Stein purchased the business, and he soon
launched his moving company.
Today Decapack is in the hands of the third generation of
Stein family members. Working for a family business is a mixed
blessing. Family members inherit both the potential authority to
become managers and the duty to care for the company around
the clock, every day of the year. Sometimes, family issues tend
to spill over into manager relationships. It is important to keep
them separate in the business, and promotions and salary must be
awarded strictly on the basis of personal merit, without regard for
age and family lines. To accomplish this balance, Decapack is run
by a board of directors that includes non-family members.
Decapack handles International moving, domestic moving,
and fine arts shipments. Through other companies under the same
ownership, Decapack can handle all services associated with
international transport and trade: freight forwarding, customs
brokerage, logistics (storage and distribution), and international
fairs and exhibitions.
Our customs brokerage, Agencia Stein, is currently the
market leader in Chile and processes more than 80,000 shipments
per year. Decapack headquarters are strategically located near the
main international ports. It is a company-owned three-story building
(including a 3,200 square-meter warehouse) with 150 people.
Most of our operations staff of 20 are packers. The company
leases another 2,400 square-meter warehouse that is used exclusively
for permanent storage, and owns a fleet of over 120 trucks
mainly through its transport and distribution company, Decatrans.
Three years ago Decapack went through tough times, mainly
due to a generational change within the company that occurred
simultaneously with the international financial crisis. Downsizing
paid for itself, and we are now more efficient and professional.
In 2010 we experienced growing sales and built stronger partner
relationships. We hired professionals for key jobs. We are FIDI
members again. We have invested in processes and information
technology. Our structure allows for many years of growth ahead.
The current management, the third generation in the Stein
family, is young and eager to guide the business successfully for
many years into the future.
As a trend, we are seeing a decrease in size and quantity of
international moves. Many companies are sending young, single
workers abroad and they are not paying for the moves. But we
think this is offset by an increase in economic activity and international
investment. Chile and South America have very optimistic
projections for economic growth.
We think that moving from paper-based systems to electronic
files is also a huge worldwide challenge but it is a change
that will come sooner or later. We can see a lot of improvements
everywhere. The development of electronic standards for the
industry is necessary. Decapack is exploring those standards and
already designing systems and processes with modern techniques
that will help integrate easily with electronic trade.
Above: The
company
warehouse.
Left: The
Decapack
packing team