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No.19

April 2009

news from HAVI LogIstIcs

we proudly present havi

logistics in china

our operations in

greater asia

Quality starts in

the head

interview with haluk ilkdemirci

and hans-dieter hojnacki

real Beauty comes

tQm – total Quality

management

from inside

The Global Lead Logistics Provider


02 Editorial

QuAlity is whAtever the

customer wANts

wHen our compAny wAs founded In

1981, right away we strived for fulfilling

all our customers’ demands for

the highest standard of food safety, reliable

management of the supply chain and innovative

logistics concepts – while at the same

time exercising uncompromising environmental

protection and social responsibility.

In short, over 27 years ago we obligated ourselves

to introduce Total Quality Management

(TQM). Even today nothing about this

promise to our customers has changed.

Over 6,000 HAVI Logistics employees all

around the world are providing reliable logistical

services as “one-stop shopping”. Total

Quality Management has a key role in this.

HAVI Logistics would not be anything like as

successful as it is if we had not made quality

our corporate philosophy back then. All

our employees at all levels and in all areas

work constantly on optimizing and develo-

tAble of coNteNts

ping quality, because quality is not only a

corporate goal but a never-ending process.

Above all, however, “quality” is determined

by the customer. The top priority is achieving

customer satisfaction. But we believe that it

is nowhere near sufficient just to carry out

our tasks well, to work carefully, always be

reliable, fast and clean, and avoid making

errors. We want to be the perfect service

provider that not only thinks the way its customers

think, but also anticipates what they

want. We are constantly striving to optimize

our customers' work flow and efficiency by

applying TQM. Total Quality Management is

also the common thread running through

this issue and I am sure that you, our readers,

will discover many things that maybe

you did not know about HAVI Logistics.

I wish you inspiring reading!

coVer story: totAL QuALIty mAnAgement 03 I 04 Real beauty comes

from inside 04 I 05 Not a day goes by without improvements 06 I 07

Interview with Haluk Ilkdemirci and Hans-Dieter Hojnacki 07 Do you

know how a refrigerator works? 09 In the food business a constant

minus is a giant plus

compAny news 10 High quality logistics network I IPL stands for quality

11 Improving quality, safety and transparency 12 I 13 We proudly

present HAVI Logistics in China

enVIronment 14 I 15 Benefiting not just the environment 15 Certificated

environmental measures

new serVIces 16 Generating efficiencies with greater standardisation I

Invisible Delivery in Sweden 17 Quality improvement with PRINCE2

news In BrIef 18 Customer satisfaction is our goal I Move to Portugal's

far north I “Employee of the year” contest 19 Highly desirable for

our customer dm I A new look for HAVI-Logistics.com I Did you know ...

20 DC extension in Austria I Latest update – newly rebranded companies

alphabet is printed on Aleo Silk 130 g/sqm. Aleo is produced using 50% recovered fibre with

50% virginfibre, and is an FSC certified product. Further more Aleo is climate neutrally.

Luca Gnecco,

Chairman and CEO, HAVI Global Logistics

imprint

proprietor: HAVI Global Logistics GmbH

publisher: Christoph Thünemann

content and style editor: Jasmin Schürgers

HAVI Global Logistics GmbH, Geitlingstraße 20,

47228 Duisburg, Germany

Phone: +49 (0) 20 65 695 258

Fax: +49 (0) 20 65 695 252

Email: info@havi-logistics.com

http://www.havi-logistics.com

publisher council: Luca Gnecco, Haluk Ilkdemirci,

Hans-Werner Krohn, Sven-Carsten Sachse

layout: Simone Lenth, denkmalfrei, Philosophen-

weg 12, 47051 Duisburg, Germany

printer: Druck-Service Weirich GmbH, Industrie-

str. 17, 41564 Kaarst, Germany

The graphics on page 05 and 06 are kindly provided

by tqm.com Deutschland.

This and the following editions would not be realized

without the great help of our HAVI Logistics

members and all the other System Players.

Thanks in advance for sending interesting topics

to be published in future.


eAl beAuty comes

from iNside

Total Quality Management (TQM) is not practicable for many companies

in a fast-moving business world with expectations of short-term

profits. They cannot conceive of quality as a corporate philosophy. It has always been clear to HAVI Logistics

that a company’s external image results from the quality of its work. After all, a good character is attractive or,

in other words, real beauty comes from inside.

tQm Is tHe nAme given to the thorough

and continuous activity of recording, inspecting,

organizing and monitoring all

areas of a company, which introduces quality

as a goal of the system and guarantees

it in the long term. However, TQM is not an

independent system of management, a standard

or a law. TQM means striving to make all

the company’s products and services market

leaders. This is done with the aid of all the

existing parts of the management system –

such as quality management, environmental

management, safety management and human

resources management – quality techniques

and methods for initiating a company-wide

improvement process. TQM requires

the full support of all employees if it is going

to bear fruit.

sInce our compAny wAs founded in

1981, TQM has been an integral part of HAVI

Logistics’ corporate culture. TQM – actually

a child of the 1940s – did not reach European

shores until 1988. It was invented in the

USA by “William Edwards Deming”. But after

the end of the Second World War no one

bothered to pay it any attention because the

focus was on maximizing production volume

in view of the reduced global production

capacities after the War. In war-torn Japan,

on the other hand, Deming’s work met with

more success. Here, Total Quality Management

rapidly became a highly regarded ma-

Cover Story

nagement philosophy; as early as 1951 the

first Japanese company won the “Deming-

Award” for especially high quality standards.

In the decades that followed, the Japanese

Quality checks throughout the whole supply

chain are part of our corporate culture and influence

the daily activity of all the staff.

conquered larger market shares all around

the world with their high-quality, keenly priced

products. They were so successful that

even US companies looked at what Japan

was doing and discovered Deming’s quality

philosophy. It was finally applied by renowned

companies in the USA in the 1970s and

1980s. Then at the end of the 1980s TQM

finally also arrived in Europe.

03

tHe mAIn prIncIpLes of tHe tQm-

pHILosopHy IncLude:

■ Quality is based on the wishes of the

customer.

■ Quality is achieved with input from the

employees at all units and levels.

■ Quality comprises several dimensions

that have to be operationalized by app-

lying certain criteria.

■ Quality is not a goal but a never-ending

process.

■ Quality refers not only to products, but

also to services.

■ Quality requires active participation and

hard work.

The fundamental idea is that quality management

should not be restricted to the technical

functions for ensuring product quality,

but to the relationship between the company

and its customers. The top priority is customer

satisfaction, which can only be achieved

in the long term through sustainable development

of the company itself.

>> continued on page 04


04 Cover Story

>> continued from page 03

HAVI Logistics puts customer satisfaction

right at the center of all its activities on

cLAssIc QuALIty AssurAnce

the basis of quality features – at all levels in

the hierarchy. Accordingly, we follow a holistic

quality management approach pervading all

areas of our company. The most important

parts of this quality management approach

are data protection, our Continuous Improvement

Process (CIP, see also the article below),

our emergency management, project

administration, quality indicators, quality policy

– which all our employees can read about

in the quality management handbook – and

HAVI Logistics’ organization charts, process

descriptions, working instructions, HACCP

and QIP. tQm produces resuLts when it is part

of corporate culture and influences the daily

activity of all employees. Scientific studies in

the USA have shown that companies that

have introduced Total Quality Management

are able to achieve greater turnover and

profits, higher productivity, better share per-

Not A dAy Goes by without

improvemeNts

formance and faster growth in the num-

ber of jobs than their competitors.

Companies that are able to beat off the

competition have a strong image and appear

authentic – and these values characterize HAVI

Logistics, too!

Be diligent and frugal: this is the recipe for success of the

automobile manufacturer Toyota. The underlying principle

here is to avoid waste and make improvements every day. Under the name of “kaizen”, this philosophy has

steadily gained ground since it was introduced in Europe in the early 1990s. The essence of the kaizen way

of thinking has been put into practice at HAVI Logistics. The company has adopted important modules of the

Continuous Improvement Process (CIP), which was developed in Europe on the basis of kaizen.

KAIzen (KAI = cHAnge; zen = for tHe

Better) is a Japanese philosophy for

life and work based on a constant

striving for improvement. At the workplace,

kaizen aims for continuous, never-ending improvement

in all parts of the company and

involving all members of the workforce and

all levels of management. The starting point

for kaizen activities is the realization that there

are problems at every company. A corporate

culture should be established, as a platform

for solving problems, in which everyone

Comparison of classic quality assurance and the TQM approach.

feels free to admit that problems exist. Improvements

in quality and reduction of costs

culminate ultimately in enhanced customer

satisfaction. Kaizen is especially important

in the context of quality management and

is an important element of Total Quality Management

(TQM). Within the TQM process it

is less a concrete method and more a general

mind set which all employees can internalize

and put into practice at their own workplaces.

The basic motto of kaizen is:

totAL QuALIty mAnAgement

HACCP and QIP in combination with our traceability

system guarantee the highest possible

food safety through quality control of all articles.

“Not a day should pass at the company

without improvements of some kind.”

Therefore the task of advocating this

principle at the company, and making it a

central element of corporate culture, falls

primarily to the management. However, all

other employees are called upon to make

proposals for improvements and implement

them in their immediate work environments.


HAVI LogIstIcs Is ALwAys open for

cHAnges of tHIs KInd. We are in fact totally

reliant on ideas from our employees.

The message communicated by the management

of HAVI Logistics - “If we want

everything to remain as it is, everything

has to change!” - is very closely linked to

the Japanese concept of kaizen. At HAVI

Logistics this mode of thinking and viewing

the world has evolved from the general management

concept of the “Continuous Improvement

Process” (CIP). CIP is an attitude

that must be adopted by all participants and

means continuous improvement with an impact

that is as sustainable as possible. CIP,

which has implications for process and service

quality, pervades the entire company.

It is implemented via a process of continual

small incremental improvements - in contrast

to large, abrupt, incisive changes - by means

of continuous team work. CIP is a fundamental

principle of quality management;

for example, it is an indispensable element

of ISO 9001. At HAVI Logistics these fundamental

concepts are promoted by management

and the entire workforce. In addition

to management meetings, and Eu-

Cover Story

ropean and national operations meetings,

also held by management, we conduct regular

quality circles, called “DC Monday Meetings“,

with employees from the Warehouse,

Transport and Customer Service units.

The “summer schools” held on various

topics at HAVI Logistics are also very effective.

Any member of the workforce can

put forth an idea here; it is acknowledged

that everyone is an expert in his or her work

area and potentially an agent of change.

Regardless of whether you want to optimize

internal work sequences, avoid unnecessary

costs or use resources optimally,

the most important objectives pursued by

these management and employee circles are:

■ Economic and entrepreneurial re-

quirements: Involving all employees as

experts in the work sequences at their

particular workplace. This expert know-

ledge is then put to use to realize potenti-

als for improvement and to eliminate sour-

ces of defects.

■ Service quality: Optimizing internal work

sequences in order to cut costs while

at the same time maintaining a con-

stant high service quality.

■ Process quality: Preventing unnecessary

costs by eliminating waste (of time, ma-

terials, human resources, energy, etc.).

■ Defects and process risks: Preventing

costs by following a zero defects strate-

gy (defects should simply not be allowed

to occur).

■ Competitiveness and capacity for

growth: Achieving optimal use of resour-

ces (e.g. time, materials, etc.) by impro-

05

ving processes (core processes and

accessory processes). This frees up re-

sources that can be used to generate fur-

ther growth.

wHetHer you Are tALKIng ABout

KAIzen, CIP or one of the many measures

and models used at HAVI Logistics, the

core idea is the same: promotion of the incremental

and continual improvement of

work sequences, processes or products

by all employees of the company as the

most important foundation of Total Quality

Management.

The so called Demingcycle or PDCA-cycle

describes four different phases of kaizen and

the continuous improvement process: Plan, Do,

Check, Act.


06

iNterview with hAluk ilkdemirci

ANd hANs-dieter hojNAcki

“Quality starts in the head.” This statement by

Andreas Rost* represents one of the keys to Total

Quality Management (TQM) at HAVI Logistics.

The management of quality, an important business

success factor, is an absolute must at HAVI

Logistics – an opinion shared by Haluk Ilkdemirci,

COO HAVI Global Logistics, and Hans-Dieter

Hojnacki, Managing Director Operations, HAVI

Logistics Germany.

alphabet: Why is Total Quality Management so

important to HAVI Logistics?

Haluk: Maintaining and improving high quality is

at the core of our daily life at HAVI Logistics. It

is our main goal as the “Global Lead Logistics

Provider” to serve our customers in the best

possible way, striving for complete customer

satisfaction. Our constant focus on the customers’

needs and wishes is the driving force

behind our long-term business success. This

customer focus has to be embraced by everyone

in our company whatever their position.

We can only achieve our aim of “customer satisfaction

first” by committing to and assuring

the underlying idea of “quality first.” Having

said this it is obvious that we at HAVI Logistics

will continue to put our emphasis on improving

our high quality standards just as we

have done in the past.

alphabet: What is the fundamental idea of TQM

at HAVI Logistics?

Hans-Dieter: The main TQM principles are firstly

100% customer satisfaction, secondly 100%

employee satisfaction, thirdly zero mistakes

right from the beginning, and fourthly low cost,

best value. Enabling our customers to steadily

increase the gap between themselves and

their competitors by offering them innovative

tailor-made solutions is the basis for our longlasting

business relationships. These business

relationships are only possible because we

provide our customers with the highest levels

Interview

of service, quality

and punctuality,

which are prerequisites

for customer practicing our TQM.

satisfaction. Customer

satisfaction is the main reason for the profitable

growth path we have followed in the past

27 years.

Haluk: The main idea of TQM is to proactively

manage processes in a way that leads to perfection

and excellence from the beginning. We

strive for best practices in our business world.

Applying best practice means that we must

organize new services and processes so that

we avoid making any mistakes. Mistakes have

direct negative impacts on customer satisfaction.

Correcting mistakes requires effort on

the part of our employees causes them stress

and increases our costs. This is related to the

Haluk Ilkdemirci and Hans-Dieter Hojnacki (f.l.t.r.) are role models,

*Andreas Rost is the founder of the Alpha Group. The former President and CEO of our organization went into retirement in 2006.

fourth TQM principle Hans-Dieter mentioned:

low cost, best value. We always provide our

customers with best value. As the price influences

customer satisfaction, we continuously

have to work on the productivity of all our

processes. This increases the gap between

ourselves and the competition and also raises

customer satisfaction.

alphabet: You have both stressed the importance

of the employees in TQM. What role

does the HAVI Logistics management play?

Haluk: Quality starts in the head and it has to

become a way of life for all our employees. The

HAVI Logistics management can only expect

our people to “live TQM” if we practice it ourselves.

Therefore all HAVI Logistics Managers

have to be role models, practicing our quality

standards and thus establishing credibility

among our staff.

Hans-Dieter: HAVI Logistics is a service company

which means that the value added for

our customers does not result from technical

equipment but from our employees’ daily efforts.

These efforts can only have the best possible

results if the managers acknowledge the

accomplishments of their employees, motivate

them, look after them (when they are facing pri-


vate challenges, too), organize business processes

well and provide all their employees

with correct, functional tools. Only satisfied

employees create satisfied customers.

Haluk: A team will not be able to fulfill customers’

requirements unless the environment

in which they work enables them to be

creative and develop innovative solutions.

It is the management’s task to create and

maintain an open-minded culture by putting

company values into practice. Therefore

open communication between different

levels and functions is crucial for sharing

ideas and making further process improvements.

alphabet: The phrase “We’ve always done it like

that!” is known to block change in many companies.

How does HAVI Logistics view this?

Hans-Dieter: The principle HAVI Logistics

follows here is to put together a set of "building

blocks" for our global activities. Continuous

improvement at HAVI Logistics is being

pursued by means of a constant process

of small improvements in cross-functional

teams. Additionally there are management

meetings as well as European and national

operations meetings at which the best practices

of different HAVI Logistics companies

are shared and discussed. Furthermore, we

at HAVI Logistics Germany conduct regular

quality circles called “DC Monday Meetings”

with employees from the Warehouse,

Transport and Customer Service units. In

these meetings we also evaluate existing

processes and discuss improvements and

innovations from the different viewpoints of

the participants.

Haluk: At the European Management Meeting

in Riga, Latvia, in 2007 our CEO Luca

Gnecco hit the nail on the head when he

said: “If we want everything to remain

as it is, everything has to change.” That

is the all-pervading philosophy at HAVI

Logistics. Constant change is the most important

aspect of our company. Continuous

improvement on all levels is what drives our

customers and us forward.

Cover Story 07

do you kNow how A refri-

GerAtor works?

The refrigeration of foodstuff

works with the help of

elementary physics. The so-called Joule-Thomson effect characterizes the fact that

gas warms when it is pressurized, e.g. in a compressor. When the pressure is removed,

the gas cools. This is the theory behind refrigeration.

tHe prActIcAL AppLIcAtIon of tHIs

tHeory is based on a concept developed

by the physicist Carl von Linde in 1876.

A pressurized gaseous refrigerant is conducted

through a system of coils, also

known as a condenser, causing the gas to

warm. As the gas expands it cools on the

exterior. It cools enough to become liquid

again and flows through an expansion valve,

reducing the pressure. Based on the

Joule-Thomson effect, the liquid continues

to cool below the original temperature prior

to pressurization. At this point, the cooling

effect can be put to use. In the refrigerator

or cooling unit, there is another system of

coils called the evaporator. According

to the laws of thermodynamics,

temperatures can

only decrease. This is why

the cold refrigerant soaks

up some of the warmth

in the refrigerator compartment.

Then it again

turns gaseous and flows

back to the compressor,

where the cycle starts

again.

tHe refrIgerAtIon

process worKs pretty

much the same

way in the cooling

units of the HAVI

Logistics DCs. A

compression cooling

cycle maintains the

freezers at a requir-

ed temperature.

The evaporators hang from the ceiling,

and the compressors are located in a separate

room. It’s obvious that our frozen

and chilled goods not only have to be

stored at prescribed temperatures whi-

The refrigeration process in the cooling units

of HAVI Logistics works pretty much the

same way as in a conventional refrigerator.

le in the warehouse, but the same

temperature control must also be

maintained during transport. This is

the reason why all HAVI Logistics

trucks are equipped with compression

cooling systems.

The evaporators hang from

the ceiling of the storage

space in the truck's interior,

while the compressor is

usually mounted on the front

side of the exterior or under

the freight vehicle.

The first Linde-refrigerating machine.

A model from around 1900.


08

Zero defects is

our GoAl

Cover Story

Whereas classical quality assurance follows the principle that “zero defects

cannot be achieved,” Total Quality Management maintains the principle that “zero

defects is the goal.” When it comes to quality, HAVI Logistics ranks right up there in the premiere league, is already

certified in several countries, and in quality checks is not uncommonly awarded the accolade of “Top Performer.”

BeIng tHe Best for our customers is

one of our most important goals. HAVI

Logistics subjects all its units to thorough

testing at regular intervals. For example, every

year the European Distribution Companies are

checked against the Supplier Quality Index

(SQI). The external assessors are interested

in all areas contributing to an organization’s

success and have divided them up into the

following categories: management, system

first, optimized supply, quality management,

innovations and costs. A total of 100 points

can be awarded in this test. Almost all the

HAVI Logistics companies come out as “Top

Performers” in the SQI check, scoring over

80 points. In 2004 HAVI Logistics in Germany

scored a massive 97.1 points – a European

record! At this time a new system is being

introduced to replace the current SQI system

in our companies. During the course of 2009

the first HAVI Logistics companies will be tested

using the new standard, the Distribution

Performance Index (DPI). We will inform

you about changes to the workflows and the

new requirements associated with DPI at HAVI

Logistics in one of our issues coming soon.

up to 2007 tHere wAs one more meAsure

for ensuring TQM in our Distribution

Centers in the form of regular AIB (American

Institute of Baking) checks. Once a year

the AIB carried out various quality checks at

our Distribution Centers – without prior warning!

The maximum score in an AIB check

was 1,000 points. Even the tiniest contamination

shaved points off the score. In almost

all cases HAVI Logistics ranked “superior,” i.e.

we scored over 900 points! This meant that

we were often regarded by AIB’s assessors

as a global benchmark.

tHe AIB cHecKs In tHe HAVI LogIstIcs

dIstrIButIon centers were replaced by the

Distributor Quality Management Process

(DQMP) at the beginning of 2008. DQMP is

a worldwide quality check that all McDonald’s

distributors undergo. It is far more complex

than AIB. Not only are the farthest corners of

the Distribution Center examined, but in addition

all the documentation and reports are

examined for possible weaknesses. DQMP

is based on a catalog of questions containing

over 100 points. Frequently the examiners

do not find the slightest little thing

to object to in our Distribution Centers and

our impressive DQMP results of well over

90% are a testament to our Total Quality

Management. In 2008 our German HAVI

Logistics Distribution Center near Hamburg

scored the absolute maximum of 100%, proving

that HAVI Logistics pursues comprehensive

quality management.

some of tHe HAVI LogIstIcs compAnIes

have had their quality management certified

separately. Our promotion specialist IPL and

the forwarding company S.T.I. (Germany) are

certified in accordance with the international

industrial standard ISO 9001. While IPL

was being tested and certified by an independent

assessor from the German technical

certification organization DEKRA in November

last year (please read also the article on

page 10), S.T.I. was already recertified – fol-

germAny DC NEu WuLmSTorF 100,0%

tHe resuLts of tHe new dQmp AudIts In

europe (shown below from September

2008 till March 2009) have been unanimously

positive again.

BeLgIum DC oLEN 93,8%

czecH repuBLIc DC KLADNo 92,9%

denmArK DC VEJLE 98,2%

fInnLAnd DC VANTAA 95,8%

germAny DC DuISburG 99,6%

germAny DC NEu WuLmSTorF 100,0%

germAny DC ILSFELD 99,1%

germAny DC WuSTErmArK 99,6%

germAny DC bINGEN 99,1%

norwAy DC FroGNEr 98,2%

portugAL DC CArrEGADo 98,4%

spAIn DC DAGANzo 93,6%

spAIn DC bArCELoNA 99,1%

spAIn DC oSuNA 91,6%

spAIn DC TENErIFE 97,7%

spAIn DC GrAN CANArIA 96,7%

sweden DC TumbA 97,0%

sweden DC GoTHENburG 95,7%

swItzerLAnd DC oENSINGEN 98,0%

lowing on from its successful initial certification

in 2001. For the period up to recertification,

both teams have set themselves the

goal of continually optimizing the already very

high quality of the services they offer today as

part of a continuous process of improvement.


food sAfety is becoming an ever more important

aspect for HAVI Logistics’ quality management.

In the Distribution Centers hygiene

is top priority and the standard far exceeds

the applicable legal regulations. The highest

quality standards are implemented along the

customer’s entire supply chain in accordance

with HACCP and QIP.

HAVI Logistics in Hungary has even

been certified according to the very important

standard ISO 22000 for its performance

in food safety. In 2006 HAVI Logistics

in Hungary was the first of all HAVI

Logistics companies and also the very first

logistics company in the whole of Hungary to

successfully pass this certification. Our experience

in the field of HACCP, our knowledge

of procedures like First In First Out (FIFO) and

iN the food busiNess A coNstANt

miNus is A GiANt plus

The cold is our ally. Customers rely on HAVI Logistics

promise to deliver perishable goods in only a top quality

condition daily. To be able to keep this promise, HAVI Logistics Distribution Centers and trucks are equipped with some

technical refinements, not to mention a few ice-cold specialties.

food HAs Its enemIes. Millions and millions

of fungi (including yeasts and molds), salmonella,

and streptococci can ruin food,

making it unfit for human consumption. Spoilage

which takes place from the inside out -

caused by over-ripening or rotting or by the

process whereby fats and oils become rancid

- are all forms of spoilage which have to be

prevented at all costs. Because this has been

known for quite some time, the human race

has developed a few counter-measures to preserve

its food. Processes like boiling, smoking,

salting, drying or marinating in vinegar protect

food from spoilage. These conservation techniques

all have something in common: they

change the product so that it looks different

after it has been treated; it tastes and smells

different and is no longer a natural product.

The technique of refrigeration is unlike

any other. When foodstuffs are placed in a

Cover Story

the overall tracking of goods has paid off very

well. We showed that our Hungarian team understood

the requirements of this standard

and applied its elements in a very expedient

way – contributing to our highest standards in

food safety throughout HAVI Logistics.

And when it comes to the traceability

of foods, too, HAVI Logistics was already in

a position to trace foodstuffs before EU Regulation

178/2002 came into force in 2005.

When the EU Regulation was introduced we

continued to develop our existing traceability

system and launched a comprehensive

EDP project.

AnotHer Aspect tHAt Is At LeAst eQuAL-

Ly ImportAnt for our QuALIty is our indicators

(key figures), which we use to assess our

cooled environment quickly enough after they

have been harvested or produced (or in the

case of meat slaughtered) microorganisms

don’t have a chance. And yet the product still

retains its original integrity. A temperature of

0° Celsius slows the microbiological, physical,

and chemical activities considerably and

keeps food fresh longer. In fact, if a food product

is cooled to under -18° Celsius, these

activities completely cease. This is the temperature

which completes the freezing process.

The formation of crystals between the cells

stops. Products which are stored at a temperature

of -18° Celsius can be kept for a longer

period of time without any noticeable loss of

quality. Because other food-preservation methods

which are also “product neutral,” such

as the irradiation of food or storage in controlled

environments, are time consuming and

expensive, refrigeration has established itself

as the best storage method for food products.

If food Items Are not gIVen constAnt

AttentIon, irreparable damage can occur. For

HAVI Logistics' customers, a delivery which

does not meet all specifications could have

severe consequences. For this reason, all deliveries

are subject to continual HACCP program

controls. HAVI Logistics employees carry

out temperature checks of the goods with

calibrated probe thermometers at four different

points in the delivery chain - starting at

the point when they are picked up from the

producer. Even a temperature of -17.9° Cel-

09

own performance. Punctuality and reliable

delivery are the top items. In 2008, 96.30%

of our deliveries arrived punctually, i.e. at the

time agreed with our customers. This is an

outstanding result when you consider that

we - unlike our competitors - have agreed a

tolerance of 30 minutes before/after the specified

delivery time. HAVI Logistics’ delivery

reliability is also something we can be proud

of. Last year 97.51% of our deliveries were

picked correctly and arrived at the customer

in perfect condition.

However hard we work at comprehensive

quality management, the fundamental

idea at HAVI Logistics remains the same: quality

is not a goal, but a never-ending process

for achieving total customer satisfaction.

HAVI Logistics has set its own standard, prescribing

a transport temperature of - 20° Celsius

from the DC to the customers, a temperature

lower than what the law stipulates.

sius is reason enough to reject the goods.

During transports and during storage in the

warehouse, temperatures are constantly checked

and recorded. In fact, HAVI Logistics has

set its own standard, prescribing a transport

temperature of -20° Celsius from the DC to

the restaurant, a temperature five Grad Celsius

lower than what the law stipulates as limit

value. Up until the very last delivery, a probe

thermometer check is conducted at the requisite

checkpoints and the results are recorded.

HAVI Logistics boasts with a certain degree of

confidence: nobody knows the frozen and refrigerated

food chain better than we do. Nobody

conducts checks and keeps records as

intensively as we do. When it comes to food

safety, we exclude every risk.


10

Company News

hiGh QuAlity loGistics

Network

HAVI Logistics uses state-of-the-art

software from AXXOM.

HAVI Logistics is proud to announce a new service called “logistics network

optimization” using state-of-the-art software.

optImIzIng our LogIstIcs networK is

crucial for us to remain competitive in

the market. The costs of raw materials

and transportation are increasing in the medium

term, influenced by short-term price fluctuation.

To position HAVI Logistics in its role

as “The Global Lead Logistics Provider,” we

have to ask the following questions:

■ Is our logistics network as good as it

can possibly be?

■ Do we provide the most efficient net-

work for our customers?

■ Do we have the transparency to take the

right decisions for today and tomorrow?

■ How can we react fast in a changing

environment and in emergencies?

In order to answer these questions in the

most appropriate way, we have implemented

a new service called “logistics network opti-

mization.” With this new service, we will be able

to optimize the flow of goods from the HAVI

ipl stANds for QuAlity!

IpL HAs responded to tHe compLexIty of

tHe promotIon BusIness, which has been

rising continually since the company’s

foundation in 2000, and to the increasing

demands customers placed on both established

and new IPL services, with ongoing

monitoring and optimization of processes.

And the results were recently confirmed

by the German technical certification

organization DEKRA. An intensive quality

audit of the whole company in accordance

with EN ISO 9001:2000 verified IPL’s high

quality standards in November last year.

The independent auditor from DEKRA

Certification Services GmbH verified that

IPL’s daily processes met all the legal requirements

in accordance with the worldwide

industrial standard for quality management

ISO 9001:2000. The certificate confirms in

black and white that IPL’s quality management

system operates effectively and complies

with the standard. For the period up to

recertification in 2009, IPL has set itself the goal

of continually optimizing the already very high

quality of the services it offers today as part of

a continuous process of improvement.

Marcus Hill, auditor from DEKRA (center) and Consultant Christiane Neeb during the presentation of

the certificate to all IPL employees.

Logistics Distribution Centers to our customers

reduce kilometers and minimize transport

costs.

for tHIs strAtegIc LogIstIcs And dIs-

trIButIon pLAnnIng we use the state-ofthe-art

optimization software ORion-PI ®

Value Network Optimization, developed by

AXXOM. This program is one of the leading

technological solutions for the integrated

analysis, simulation, design and optimization

of strategic and tactical network scenarios

in logistics and distribution. ORion-PI ® offers

an end-to-end optimization approach which

covers every relationship within the supply

chain: from customer relations, production

plants and Distribution Centers to suppliers,

manufacturers and distributors. It allows

an accurate representation of the network,

even if it consists of thousands of locations,

customers and products. ORion-PI ® is also

used by well known companies such as

Henkel, Avon, MAN, DHL, BASF.

Acording to the HAVI Logistics’ functional realignment

process of the Happy Meal-, Promotions-

and Packaging-Function, IPL Perseco

will move from HAVI Logistics to HAVI Global

Solutions. This process has started and will

be finalized over a few months. This positions

IPLPerseco to benefit from the global leverage

and functional leadership of the Perseco and

IPL businesses under the HAVI Global Solutions

umbrella, while maintaining the benefits

of a close alignment and leverage with HAVI

Logistics in Europe.

In addition to that movement, HAVI Global

Solutions also has been consolidated the pan-

European supply chain integration functions of

ISIS under its umbrella since March 1st.

These two organizational changes are intended

to fully align the HAVI Global Solutions’ internal

resources for delivering supply chain and

promotion management services in a manner

that maximizes the future benefit to all HAVI

Logistics customers.


Company News 11

improviNG QuAlity, sAfety

ANd trANspAreNcy

The main elements of a cutting-edge organization

are concentration on core competencies

and efficient business processes. HAVI Logistics is going to achieve fundamental quality improvements

in standardization by implementing SAP.

fIVe out of sIx compAnIes have errors

in more than ten percent of their master

data records. And one in ten companies

has errors in over 30 percent, owing

to duplicates, incorrect classifications or incomprehensible

material texts. These are the

sobering results of a survey by the specialist

firm Omikron Data Quality. The main causes

are that the processes and rules for updating

master data are not sufficiently defined,

responsibilities are not made clear, or there

is no software solution ensuring automatic

data updates.

zero errors Is our goAL, and of course

this also applies to the extremely important

updating of our master data and how our finance

processes are handled. To this end

we have been using a standard business

software program since the beginning of this

year to support us in the area of finance.

SAP ERP is the main product from the German

software company SAP. ERP stands for

"Enterprise-Resource-Planning", which gives

users an integrated view of all the parts

of a company that are relevant to business.

ERP software products are constructed as

modules and cover the areas of invoicing,

human resource management and logistics.

We use the modules FI (Financials) and CO

(Controlling) for setting universal corporate

standards for the areas of financial accounting

and controlling, and for monitoring them

in the long term. SAP ERP should guarantee

that HAVI Logistics’ corporate structure is

mapped in a client and that the system users

operate solely within a system landscape.

This environment consists of standards such

as the Group Chart of Accounts (GCoA) and

harmonized master data. A huge step on the

way to standardization is the migration from

a solution called Kissels, which is installed

separately in each of the HAVI Logistics companies

for handling the Chart of Accounts,

master data and reporting. Our new standard

software environment supports multiclient

and language concepts and offers industry

standards for HAVI Logistics business

processes. The implementation of the new

business software is a major project for HAVI

Logistics. One project team consisting of Finance

Key users, IS specialists and external

Mirza Hasanagic (Accounts payable team member) shows the function of SAP ERP to the team and

the project managment of the Shared Service Center.

consultants has been formed to design the

template, and configure and implement SAP

country by country.

At present SAP is used principally in our

Shared Service Center (SSC) in Prague (see

also the article on page 17), which went into

service for the German companies in January,

at the same time that SAP was introduced.

This HAVI Logistics service unit offers

standard accounting services to the HAVI

Logistics organization. SAP ERP is a key element

in realizing this support.

In future ALL HAVI LogIstIcs compAnIes

should benefit from the standard business

software. Standardization will proceed

as part of the SAP roll-outs in HAVI Logistics

countries and the process of switching their

accounting services to the SSC. For example,

the HAVI Logistics companies will use

the Group Chart of Accounts (GCoA) and

harmonize their master data. This will produ-

ce optimized results in the form of a unified

structure and improved evaluation options.

to expAnd tHe use of sAp another project

will be implemented at HAVI Logistics:

“iSAW” (Invoice Scanning, Archiving, Workflow).

Once iSAW is in place, all incoming

invoices will be scanned locally by HAVI Logistics

employees, automatically sent to a

central digital archive, and fed into an electronic

workflow. This is where the invoices

will be checked and released by the relevant

member of staff, the SSC and the cost center

manager, and they will then be posted in

SAP automatically.


12

we proudly preseNt hAvi

loGistics iN chiNA

As “The Global Lead Logistics Provider” HAVI

Logistics has expanded its business throughout

Europe, North America and Greater Asia. HAVI Logistics now has over 6,000 employees providing total logistics

solutions to a wide range of strategic customers. In the next few issues of alphabet, we will introduce

to you our HAVI Logistics companies located and working in the Asian region. In this issue, we will focus on

our operations in Mainland China.

Be fIrst, Be fAst, Be dIfferent. This is the

motto HAVI Logistics has used to expand

around the world. HAVI Logistics

is one of three pillars within the organizational

structure that makes up the HAVI Group

LP. The other two companies, “The Marketing

Store” and “HAVI Global Solutions” support

HAVI Logistics to provide a full range of solutions

to its customers to compliment its logistics

services. HAVI Logistics currently makes

deliveries to nearly 13,300 retail outlets around

the world from 72 Distribution Centers!

HAVI LogIstIcs In cHInA began operations

with what the President of HAVI Logistics

Greater Asia, Bill O'Brien, calls "barely viable

facilities, deteriorating warehouses, trucks in

need of maintenance and repair, and a dearth

of freezers.” Today HAVI Logistics in Mainland

China has a workforce of over 600 employees

and a growing network of China’s most modern

facilities and Distribution Centers, making

Company News

HAVI Logistics in China provided food logistics

services for all the catered restaurants and

McDonald’s inside the Olympic venues.

HAVI Logistics the leading model of cold chain

and food safety for the last 16 years. HAVI Logistics

now provides customized cold chain

logistics services to over 1,100 McDonald’s

restaurants, as well as a number of other highprofile

multi-national Quick Service Restaurant

chains and retailers. Currently, HAVI Logistics

in Mainland China operates three Distribution

Centers (Beijing, Guangzhou and Shanghai),

two satellite Distribution Centers (Wuhan and

Shenyang), one depot (Chengdu) and a bonded

warehouse (Shenzhen). In China, HAVI

Logistics has led the industry in providing true

lead logistics solutions that include: inventory

management and demand planning, routing

optimization, in-store logistics as well as customized

ordering systems.

product sAfety HAs Been A Hot topIc

In cHInA in recent years, with reports of tainted

pet foods, fake drugs, toxin-coated cosmetics,

and milk powder. This has led to numerous

product recalls, import/export bans

and more stringent food safety laws in China.

The government has pledged to boost its safety

standards, but many companies across

China have started to realize that they must,

as a matter of urgency, begin to pay greater

attention to ensuring that their products

are distributed, stored and handled in the re


quired temperature range to guarantee freshness

and safety to the consumer. Since the

start of HAVI Logistics’ first Distribution Center

in Guangzhou, the company has led the

way in guaranteeing the highest logistics food

safety standards in the most reliable and efficient

way available on the Mainland. By pro-

HAVI LogIstIcs cHInA:

fActs & fIgures

Foundation:

HAVI Logistics Guangzhou: 1993

HAVI Logistics Beijing: 2000

HAVI Logistics Shanghai: 2001

Land area:

• Guangzhou: 12,500 sq.m.

• Beijing: 12,000 sq.m.

• Shanghai: 11,000 sq.m.

Size of the Distribution Center:

• Guangzhou: 5,000 sq.m.

• Beijing: 7,300 sq.m.

• Shanghai: 5,100 sq.m.

Employees: 600

Trucks: 50

Delivery points: 1,220

The HAVI Logistics staff in Beijing and the HAVI Group LP Top Management

as well as HAVI Logistics Executive Board.

Company News 13

viding China’s most stringently temperaturecontrolled

facilities and trucks, HAVI Logistics

has become the first choice for all companies

focused on food safety and having the

highest international standards. In recognition

of this, HAVI Logistics was chosen by the

Beijing Olympic Organizing Committee to provide

food logistic services for all the catered

restaurants and McDonald’s inside the Olympic

venues (see also the article in Issue 19 or

go to our video on www.havi-logistics.com /

News & Media).

“tHe BIggest cHALLenge fAcIng us In

cHInA “While such assets should not be undervalued,

both domestic and foreign businesses

need to channel their resources to

people and systems. That means optimizing

networks, routing, and assets,” Bill says. “Only

then can we create a cost-efficient perishables

chain that maximizes value for retailers and restaurants.

Bill O’Brien has charted an unconventional

course, overseeing from scratch the

development of a world-class cold chain in a

region plagued by food-safety issues. Today

two factors account for the success of HAVI

Logistics in China. The first, which also has

to do with the HAVI Logistics culture, is that

our Chinese team shares an intense dedication

to its customers. The second reason for

HAVI Logistics’ success is its people. Mainland

China’s management team has been responsive

to HAVI Logistics’ values, goals, and

strategic focus, which has been extremely innovative

for the Chinese market. In summary,

the entire HAVI Logistics organization is proud

of the past and excited for the future of HAVI

Logistics in China.

HAVI Logistics in Mainland China has

a workforce of over 600 employees

and a growing network of China's

most modern Distribution Centers.

You find further information about HAVI Logistics

China under www.havi-logistics.com


14

The new Distribution Center in Amersfoort is equiped

with cutting-edge technology.

beNefitiNG Not just

the eNviroNmeNt

In December of last year our HAVI Logistics team in

the Netherlands relocated from Nijkerk to a new Distribution

Center in Amersfoort. The new DC has not only been built to the latest technical standards, but is also

equipped with a new type of refrigeration system making it especially environmentally friendly. The new DC building

benefits both the environment and the employees.

wHen It comes to tHe QuALIty And tHe

sAfety of the foodstuffs that we store

and transport, HAVI Logistics eliminates

all possible risks. This also affects the

choice of refrigerant. Carl von Linde (see article

on page 07) operated his first functional

refrigeration system using ammonia. Alt-

To protect the employees - in case of a damage -

at DC Amersfoort the piping for ammonia is installed

at the outside of the building.

Environment

hough this is a natural substance, it is difficult

to handle and technically awkward to use,

and in concentrated form it is hazardous to

human beings. Today HAVI Logistics operates

most of its refrigeration systems with

the environmental friendly refrigerant R404.

For several years, while searching for a natural

refrigerant, we have been following in the

footsteps of Carl von Linde and working on

the safe re-introduction of ammonia into refrigeration

systems. We are justifiably proud

that, with the introduction of ammonia in our

German HAVI Logistics Distribution Center in

Duisburg and in our Belgian DC, we are now

using ammonia again for refrigeration.

In our new dc In Amersfoort we are

also expecting good results from ammonia as

a refrigerant owing to its high coefficient of

performance and environmental soundness. In

order to protect the employees from any leaks

of gaseous ammonia - which is actually only

dangerous at high concentrations - the pipes

carrying the ammonia are located on the DC‘s

external wall, and they are made of rust-free

materials so as to provide extra protection.

Other technical refinements of the new

refrigeration system are the combination of

chamber coolers and the air duct system,

low noise emissions and no defrosting inside

the warehouse. The novel refrigeration system

avoids ice formation on the evaporator

and provides a smooth and well distributed

supply of cooled air, and it is much simpler to

maintain. And in good HAVI Logistics fashion,

in the Amersfoort DC, too, the energy generated

during cooling of the frozen storage areas

is not just released into the environment

as waste heat. At HAVI Logistics a heat recovery

system captures and uses this energy

to heat the dry storage areas and the offices.


And of course our new Distribution Center in

the Netherlands is equipped with one of these

systems.

despIte ALL tHIs cuttIng-edge tecHnoLogy,

the employees at our Dutch HAVI

Logistics company had mixed feelings about

the new DC and the move to Amersfoort. They

were very keen on an extremely efficient and

ultra-modern solution. But they were concer-

State-of-the-art compressor

ned by the fact that their new workplace was

approx. 10 kilometers away from the old one.

Out of the 220 employees, 120 live in the town

of Nijkerk itself. Sixty of them could walk to

HAVI LogIstIcs’ commItment to tHe

enVIronment means that our distribution

company in Turkey chooses the most environmentally

friendly processes, consciously

makes optimal use of natural resources,

and insists on environmentally friendly production

procedures that save energy and

prevent waste. The importance of complying

with environmental laws is self-evident. The

continuous reduction of energy consumption

by means of innovative storage techniques

or heat-recovery systems for heating

offices and ambient storage areas is a

basic component of environmental policy

in Turkey and at most of the HAVI Logistics

locations.

Environment 15

work or go by bicycle. Now they would have

to switch to taking the car, on a route that included

a busy freeway. This would have been a

considerable extra burden not only on our staff

but also on the environment. In the end one of

the warehouse staff asked if we could acquire

a company motor scooter - which turned out

to be the solution to the problem. With motor

scooters congested freeways would no longer

be an issue and the drive to work would be

quick and safe for all the employees. We did

a general calculation, and also compared the

costs of a standard motor scooter and a battery-powered

one. The environmentally friendly

alternative won on all counts. An electric scooter

can manage a whole 70 kilometers on a fully

charged battery. It is “filled up” again by plugging

it into the normal electricity supply - which

is also much simpler than filling the tank with

gasoline at a gas station.

now tHe moVe to the new Distribution

Center has been completed successfully. Everything

about the DC in Amersfoort is great. It

is not only equipped with a large number of

technical features and, most importantly, environmentally

friendly ones, but it also addresses

the concerns of HAVI Logistics’ employees to

a degree that only a good employer can. Ano-

In January our Turkish-based company

was audited for the first time for compliance

with DIN EN ISO 14001. The audit protocol

stressed the importance of cleanliness and

order in the warehouse, procedures applied

according to the spirit of the law, separate

collection of hazardous and recyclable materials,

and documentation in general. HAVI

Logistics in Turkey was certified by the external

audit company First Quality Certification

(FQC) and now has to prepare for

recertification in 2011.

ther very important aspect is the fact that the

new DC allows HAVI Logistics to bundle all the

operations for our customers McDonald’s and

BP Netherlands at one facility and finally to exploit

the operational synergies.

certificAted eNviroNmeNtAl

HAVI Logistics in Turkey has its exemplary environ-

meAsures mental protection activities certified according to DIN EN

ISO 14001 and has thus committed itself to consistently follow the environmental goals

set by this standard.

Ata Akici, Environment Coordinator

and Altan Sekmen, Managing

Director HAVI Logistics

Turkey (right).


16

New Services

GeNerAtiNG efficieNcies with

GreAter stANdArdiZAtioN

As of January 2009 HAVI Global Logistics has been managing the accounting services for

the European HAVI Logistics companies centrally from Prague. This step and the foundation

of a new company named HAVI Logistics Shared Services s.r.o (SSC) have opened up new

vistas for HAVI Logistics.

Part of the project team for the

organizational setup of the Shared

Service Center and the simultaneous

configuration and implementation

of SAP. The Finance- and

the Controlling-Department as

well as HAVI Logistics Information

Services are closely linked together

dependent on the success of the

Shared Service Center. (order from

left) Stefan Tittel, Ralf Kreuzenbeck,

Peter Looks, Jovanka Vajce, Ullrich

Wegner, Christof Schwarberg,

Michael Hoier and

Andreas Koetter.

iNvisible delivery

iN swedeN

tHe HAVI LogIstIcs’ InVIsIBLe de-

LIVery concept means that the

McDonald’s restaurant crew is totally

freed of all tasks that are part of

the delivery process. Invisible Delivery

allows deliveries to take place during or

after a restaurant’s opening hours.

wItH our current performAnce

And suBstAntIAL mAr-

Ket opportunItIes HAVI Logistics

will grow steadily in the years to

come. To enable this growth it is appropriate

to reorganize and standardize

our accounting processes more

efficiently and to support them with

new scalable cutting-edge technology.

Since January of 2009 we have been

combining all relevant accounting activities

at one “Shared Service Center,”

initially for the first five HAVI Logistics

companies. In the course of 2009 and

2010 selected accounting activities of

all the remaining European HAVI Logistics

companies will be taken over by

the Shared Service Center. Located in

Prague, the capital of the Czech Republic,

the company will provide the European

companies with excellent accounting

services covering accounts

payable, accounts receivable, general

ledger and fixed assets.

Simultaneous with the opening

of the Shared Service Center the implementation

of the new SAP accounting

software is a major cornerstone of

our growth strategy (please read also

the article on page 11). As essential

Between feBruAry And August

of tHIs yeAr our Swedish-based HAVI

Logistics company tested our Invisible

Delivery service in eight McDonald’s

restaurants. The target is to roll out

the service to nearly all 100 restaurants

in Stockholm, Gothenburg and

Malmoe during 2010. The success

steps in the execution of such a project,

boundaries needed to be broken

down, new working procedures had to

be implemented and, most importantly,

clear targets, roles and responsibilities

had to be defined.

tHe ImproVement of our orgAnIzAtIon

is the key success criterion

for all of our employees to secure and

support the growth strategy of HAVI

Logistics. The main elements of a cutting-edge

organization are standardization

and concentration on core competencies.

We have achieved fundamental

improvements with the opening

of our Shared Service Center and the

implementation of SAP. A lot of work,

enthusiasm and passion has been invested

in these projects. The central

element of the successful SSC implementation

is the excellent support provided

by everyone involved. In the future

our HAVI Logistics companies can

concentrate on their core task of providing

competitive logistics solutions to

our customers even better than before.

Now we have to start generating efficiencies

with greater standardization so

that we will be “fit for the future.”

One HAVI Logistics’ idea of relieving the McDonald’s restaurants

of all logistics tasks is called Invisible Delivery. It is a special

service that is already offered in Germany, Hungary, Italy and Turkey and will soon be offered for the

restaurants in Sweden as well.

of our service ECOSIMA (Economic

Store Inventory Management Assistance)

had a huge effect on the acceptance

of Invisible Delivery: during

ECOSIMA our Swedish company

proved that they were experts

in logistics not just within the Distribution

Center and during delive


ies but at the restaurants as well. During

ECOSIMA delivery frequencies and storage

capacities were harmonized; this resulted

in optimal storage conditions at restaurants

and optimal (mostly decreasing) delivery

frequencies.

In practice Invisible Delivery means that

the driver of HAVI Logistics offloads the truck,

while workers of the Swedish merchandiser

Komet carry all goods into the restaurant

storage areas and place them directly

on the shelves. The joint project group

(including members from HAVI Logistics

Sweden and McDonald’s Sweden) has put

a lot of effort into defining the exact tasks

for the merchandiser and a manager of

Komet received intensive training at HAVI

Logistics in Sweden.

tHe BIggest cHALLenge for our team

in Sweden was the task of making deliveries

to the McDonald’s restaurant serving the

prInce (Projects in Controlled Environments)

is a structured project management

method for executing projects

successfully. The first outlines of what we

now know as PRINCE2 were already established

in 1975 under the name of PROMP-

TII. The British Central Computer and Telecommunications

Agency (CCTA) used

PROMPTII as a standard method for all government

projects. In 1989 the CCTA released

PRINCE, which superseded PROMPTII.

The CCTA (now the Office of Government

Commerce) continued to develop the method.

In 1996 a new release was introduced

called PRINCE2, which incorporated years

of experience and best practices, and provided

a structured approach for carrying out

all kinds of projects.

due to tHe InternAtIonAL recognItIon

enjoyed by PRINCE2 and its applicability

and scalability in different types of projects,

HAVI Logistics selected this project management

method as the standard for executing

its projects. The Program Management Office

(PMO) at HAVI Logistics IS selected the

method and is responsible for its continuing

deployment within the organization. PMO offers

employees who are or will be participa-

New Services

guests of the Gothenburg Horse

Show. This big event was

hosted by Sweden's Scandinavium

arena between February

19 and 22 and was awaited

with bated breath. This is because

the McDonald's restaurant

received two full trucks on

the final day of the Horse Show

and the putting-away process

took approximately eight to ten

hours. Titti Bergqvisit, Manager

of the McDonald's restaurant

located at the Horse Show: "It was the

smoothest Horse Show week ever, excellent

logistics process."

In tHe next montHs the test will be extended

to additional Swedish cities with a

high concentration of McDonald’s restaurants.

Moreover, the integration of franchisee

stores will be part of the next step.

QuAlity improvemeNt

with priNce2

ting in projects the opportunity of enrolling

on a two-day PRINCE2 Foundation training

course and certification. The PRINCE2 training

course is delivered by the certified training

institute “Insights International” and provides

an essential overview for understanding

and utilizing the method and enabling people

to speak the same language.

tHe HAVI LogIstIcs HumAn resources

department organizes the PRINCE2 training

cycles. After two years of sharing the

PRINCE2 experience with the organization,

we can proudly say that HAVI Logistics has

more than 140 PRINCE2-certified employees,

and the next training courses in Duisburg

(Germany) are already scheduled for 22

and 23 April 2009.

The PRINCE2 training course provides

a good ‘instrument’ for obtaining the essential

know-how for structuring and executing

a project. When additional support and/or a

review is wanted, PMO is there to help. With

the lessons learned and experience gained

from previous projects, as well as its insight

into the PRINCE2 method, PMO is available

to support you in structuring your roadmap

to project success.

Our Swedish team proved

its excellence in Invisible

Delivery by supplying the

McDonald's Restaurant in

the Scandinavium arena at

Gothenburgs Horse Show.

NeFiSo (New Financial Solution)*, Weblog Implementations

and the Common Software Solution for S.T.I. Network

(CSSN) are examples of the many successful projects that HAVI Logistics has conducted in recent years.

To reinforce and ensure such success, HAVI Logistics uses the PRINCE2 project management method.

* The NeFiSo project from HAVI Logistics IS provides the required IT platform to support the finance

processes and to replace the existing solution for Financial Accounting (KISSELS) at HAVI Logistics.

Part of the PRINCE2 PMO:

(f.l.t.r.) Dana Moses, Project

Controlling and Administration;

Christian Matull, Senior

Manager; Theresa Dicke,

HR Assistant; Herman van

Dasselaar, Consultant

Methodology Management

and Shafag Aliyeva, Junior

Consultant Methodology

Management.

17


18

News in Brief

The HAVI Logistics website is presenting a new face to the world, with a completely new

Media Center and an extensive picture database.

A New look for hAvi-loGistics.com

wItH tHe reBrAndIng of our compAny, we

have taken on an entirely new Corporate Identity

(CI). Our behavior, our communication, and

the Corporate Image we project both inside

and outside the company have been revamped

and harmonized across the board.

Our HAVI Logistics website, which offers

various language options, is the digital show-

case of the company. Visitors to www.havilogistics.com

are greeted by an attractive

design and a clear-cut navigation structure;

they consequently experience HAVI Logistics

as being technically competent, experienced

and innovative. Our new homepage welcomes

visitors to the HAVI Logistics World

and invites them to enter the virtual representations

of the six central divisions:

Our HAVI Logistics Website in traditional Chinese language

is now available under www.havi-logistics.com

Company, Services, Jobs & Career, News &

Media, References and Contact.

tHe HAVI LogIstIcs serVIce pHILosopHy

Is exempLIfIed By the division of News & Media.

At this virtual Media Center, the company

extends a warm welcome to journalists and

other opinion leaders by offering them the

possibility to access information about the

company without having to enter a password.

The new Media Center is the central portal to

the HAVI Logistics World and offers visitors

a wealth of materials: corporate brochures,

our corporate newspaper alphabet, press

releases (available in several languages), the

latest news about HAVI Logistics, and a brand

new picture database.

In tHe HAVI LogIstIcs pIcture dAtABAse

journalists and interested members of the

public can view photos showing all aspects

of the company. Picture editors can research

stories here free of charge and download those

photos that have been released for publication

outside the company. The nearly 100

motifs currently available depict all areas of

activity at HAVI Logistics; the topics range

from corporate culture, customers, design,

environment and services straight through to

transport and logistics. Whether you are looking

for a photo of a truck, a distribution center,

employees or design elements, you can

find the entire HAVI Logistics World, with all of

its diversity, in the new picture database.

“employee of the

yeAr” coNtest

HAVI LogIstIcs estonIA kicked off a special

motivational competition in 2007 – the “Employee

of the Year” contest. All employees of

the company who "consistently perform above

and beyond what their job descriptions require"

are eligible to vie for this award.

tHe IdeA or the contest caught the imagination

of the entire workforce immediately

when it was put forward in 2007 by Janek

Saareoks, Managing Director of HAVI

Logistics Estonia. By creating the award,

Saareoks hoped to create a very special motivation

for high performance that was not based

on monetary rewards but on more personal

incentives.

2008

Janek Saareoks surrounded by the top

performers on his team. First row (from left):

Illi Niinlaub, Eda Siivelt, Gerlin Mets. Second

row (from left): Janek Haljasmets, Mihkel

Mäehans, Ove Vikat, Mart Kahro, Marek

Tamm.

According to the contest rules, every member

of the workforce has a chance to name

three people who are, in his or her opinion,

the best “team players” in the particular department.

The employees' direct superiors

are then asked to comment on the work performance

of the nominees. All the employees

who have received the “Employee of

the Year” award have exemplified exceptional

levels of work performance and displayed

great respect and loyalty toward HAVI

Logistics and their job responsibilities.

tHe worKforce At our estonIAn HAVI

LogIstIcs company consists of a total of 213

people working in nine departments. Each department

nominates one candidate for the title

of “Employee of the Year.” The 2008 winners

were rewarded with the recognition of their colleagues,

a certificate and even a small party.


The progress of construction work on March 17, 2009.

move to portuGAl’s

fAr North

tHe Huge expAnsIon By our customer

mcdonALd’s in recent years has had tangible

impacts, even in Portugal. Not only has it opened

new restaurants, but also the volume of

goods delivered per restaurant has increased.

These welcome effects took our Portuguese

distribution company to the limits of its capacity.

Supplying 122 Portuguese McDonald’s restaurants

and the Warner Bros. businesses made it

necessary to build a second Portuguese DC.

tHe BuILdIng of tHe new dIstrIButIon

center with a total of 2,620 square meters.

in Canelas in the District of Porto in northern

Portugal began in September of last year. It will

start operations in May with the supplying of 44

restaurants. The average distance from the new

DC to our customer's restaurants is now only

68 kilometers, which is convenient for supplying

the restaurants in the north of the country, and

so in Portugal our HAVI Logistics trucks now

cover 1 Million kilometers less per year.

tHe openIng of tHe new dc in Porto offers

HAVI Logistics the opportunity of crossborder

distribution to twelve Spanish restaurants

in Galicia. HAVI Logistics Portugal and

HAVI Logistics Spain are currently investigating

the total impact of this solution.

some AdVAntAges of tHe

new dc In porto:

■ Reduction of 44% in the total mile-

ages

■ Closer contacts with each restaurant

■ Punctual transportation, less af-

fected by road traffic

■ Opportunity to react faster in case

of stock recovery and product

replacement

■ More opportunities to develop spe-

cial services (Invisible Delivery)

■ Positive impact on the environment

because of reduced fuel consumption

(318,000 liters less per year).

News in Brief

hiGhly desirAble for

our customer dm

tHe dm BusIness in Austria started in March

2008 (see edition 18) with the delivery of fresh

products for the so-called “Gesunde Pause”

(Healthy Break). Starting with the delivery

of 14 shops in the western part of Austria

in July 2008, HAVI Logistics Austria now

provides the complete services for 34 dm

stores. Twice a week we deliver an assortment

of around 70 different fresh products

for preparing fresh soups, salads, smoothies

and juices. In December of last year HAVI

Logistics in Austria reported a new record:

the monthly tonnage handled for dm increased

from 54 to 67 tonnes. About 300 deliveries

with more than 28,000 crates were

distributed to our new customer.

And the business continues to expand:

currently a test is underway on the delivery of

bananas in Styrofoam boxes. The dm business

in Austria is extremely successfully. Recently

the manager of a dm store said “thank you”

to our team in Austria in written form: “HAVI

Logistics gets top marks as a distributor. The

driver is always very competent and friendly.”

did you kNow ...

…tHAt in the last five years HAVI

Logistics realized savings of several million

euros for the McDonald’s system?

At tHe end of 1999 a service called “Cle-

an up” was implemented at HAVI Logistics:

since then this service has been extended in

close cooperation with McDonald's, our European

Distribution Centers and suppliers.

Since 2004 Clean up has been offered as

a dedicated service to the McDonald’s sys-

tem and has proven to deliver significant

benefits. The function of Clean up is to seek

continuously for overstocks in our HAVI

Logistics DCs. The available overstocks are

reported using communication platforms

such as McNet and A-lex. In this way poten-

tial buyers can be identified within the

McDonald’s system. All relevant parties are

involved during the re-selling of the overstocks.

The purchasing company pays the

19

13 tons on average is the weight of such a digger.

A heavy burden for the forwarder, but no-brainer

for our Freight Manager S.T.I.

customer sAtisfAct-

ioN is our GoAl

our freIgHt mAnAger s.t.I. has been organizing

the most varied transport services for its

customers using the most different routes for

over 25 years now. No matter whether these

transports go overland, by sea or by air,

S.T.I. always provides the same outstanding

quality. The company even makes an excellent

job of tricky orders such as transporting

350 tonnes of mining equipment to Turkey,

exercise machines from the Far East to

Germany, and 400,000 kilograms of frozen

Chicken McNuggets for McDonald’s Japan.

customer sAtIsfActIon Is ALwAys

top prIorIty for our Freight Manager – it is

absolutely essential to effective quality management.

In 2001 S.T.I. had its TQM certified

as meeting EN ISO 9001. In fact S.T.I.

can boast that several months ago it was

recertified for the second time according to

the stringent requirements of the European

industrial standard. Are we going to rest

on our laurels? Or sit back and relax? Not

at a HAVI Logistics company! S.T.I. recently

tackled the next challenge head-on and

assisted a German importer of construction

machinery in procuring four diggers.

Our Freight Manager, a specialist in customs

clearance, took care of all the paperwork

for the front-end loaders in Rotterdam’s harbor.

The extremely satisfied customer was

then able to transfer the heavy goods onto

a gooseneck trailer by itself.

same price as if it had bought the stocks

directly from the supplier. Additional costs

(e.g. for transport, customs duties, labels,

etc) must be carried by the selling DC.

At tHe end of 2008 the Clean up service

celebrated its fifth anniversary of hard work

and common, dedicated effort. Today we are

proud to report: in the last five years we have

realized a total 7.2 million euros in savings for

the entire McDonald’s system.


20

dc exteNsioN iN AustriA

to Keep pAce wItH tHe rApId growtH of our

customer McDonald's all over Austria, HAVI

Logistics has expanded its Austrian Distribution

Center. The extension will be completed

in April of this year.

tHe constructIon pHAse started in

August 2008. Not for the first time HAVI

Logistics had undertaken to build an extension

at one of its European Distribution Centers

with operations still in full swing. In the

case of our Austrian-based company 2,200

sq.m. of floor space have to be built while

customers’ goods are being picked up,

loaded and delivered - all with the reliability

customers have come to expect from HAVI

Logistics.

[1]

As ALreAdy mentIoned in the last edition

of alphabet, we are currently in the process

of coordinating the roll-out process for all

HAVI Logistics companies. In the upcoming

editions of alphabet we will inform you of

further developments concerning the next

steps we are taking to become a unique

global brand.

News in Brief

[2] [3]

This is what the skeleton of the building looked

like in September 2008. Only two months later

the new dry warehouse was ready for our team

in Austria to move in. Once installed, HAVI

Logistics continued its order-picking activities

in the new surroundings without batting a proverbial

eyelash.

[4]

re-branded companies in europe

The old ambient warehouse adjoining the

new building was torn down without closing

down operations at the site. A new

frozen goods warehouse is now being built

on the same spot.

Setting-up the shelving: together with the

previous frozen goods area, the new extension

includes a new 2,000 sq.m. warehouse

for frozen products. There is still

a lot of work to be done before the new

warehouse can be commissioned as planned

in April 2009!

date country New Name former Name

01.04.09 SE HAVI Logistics AB Scandlog AB

16.02.09 DK HAVI Logistics ApS Danlog ApS

28.01.09 BE HAVI Logistics BVBA MLS N. V.

20.01.09 NL HAVI Logistics B. V. MLS B. V.

15.01.09 NL HAVI Logistics Environmental ESM BV

Services B. V.

12.01.09 NL HAVI Logistics IS B. V. Alphasoft

29.12.08 PT HAVI Logistics Lda. DC Bens

23.12.08 LT HAVI Logistics UAB Logislita UAB

01.12.08 ES HAVI Logistics FSL, S. L. LINK Servicios Logisticos S.L.

01.12.08 IT HAVI Logistics s.r.l. Italog s.r.l.

01.12.08 NO HAVI Logistics AS Loginor AS

21.11.08 EE HAVI Logistics OÜ Baldis Estonia OÜ

03.11.08 PL HAVI Logistics sp. z o.o Logpol sp. z o.o

03.11.08 FI HAVI Logistics Oy MD-Scand Oy

15.10.08 CZ HAVI Logistics Shared Services s.r.o. new company

09.10.08 DE HAVI Logistics GmbH WLS GmbH

20.08.08 EU HAVI Logistics IS GmbH amigon GmbH

27.07.08 EU HAVI Global Logistics GmbH Alpha Management GmbH

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