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No.19<br />
April 2009<br />
news from <strong>HAVI</strong> LogIstIcs<br />
we proudly present havi<br />
logistics in china<br />
our operations in<br />
greater asia<br />
Quality starts in<br />
the head<br />
interview with haluk ilkdemirci<br />
and hans-dieter hojnacki<br />
real Beauty comes<br />
tQm – total Quality<br />
management<br />
from inside<br />
The Global Lead <strong>Logistics</strong> Provider
02 Editorial<br />
QuAlity is whAtever the<br />
customer wANts<br />
wHen our compAny wAs founded In<br />
1981, right away we strived for fulfilling<br />
all our customers’ demands for<br />
the highest standard of food safety, reliable<br />
management of the supply chain and innovative<br />
logistics concepts – while at the same<br />
time exercising uncompromising environmental<br />
protection and social responsibility.<br />
In short, over 27 years ago we obligated ourselves<br />
to introduce Total Quality Management<br />
(TQM). Even today nothing about this<br />
promise to our customers has changed.<br />
Over 6,000 <strong>HAVI</strong> <strong>Logistics</strong> employees all<br />
around the world are providing reliable logistical<br />
services as “one-stop shopping”. Total<br />
Quality Management has a key role in this.<br />
<strong>HAVI</strong> <strong>Logistics</strong> would not be anything like as<br />
successful as it is if we had not made quality<br />
our corporate philosophy back then. All<br />
our employees at all levels and in all areas<br />
work constantly on optimizing and develo-<br />
tAble of coNteNts<br />
ping quality, because quality is not only a<br />
corporate goal but a never-ending process.<br />
Above all, however, “quality” is determined<br />
by the customer. The top priority is achieving<br />
customer satisfaction. But we believe that it<br />
is nowhere near sufficient just to carry out<br />
our tasks well, to work carefully, always be<br />
reliable, fast and clean, and avoid making<br />
errors. We want to be the perfect service<br />
provider that not only thinks the way its customers<br />
think, but also anticipates what they<br />
want. We are constantly striving to optimize<br />
our customers' work flow and efficiency by<br />
applying TQM. Total Quality Management is<br />
also the common thread running through<br />
this issue and I am sure that you, our readers,<br />
will discover many things that maybe<br />
you did not know about <strong>HAVI</strong> <strong>Logistics</strong>.<br />
I wish you inspiring reading!<br />
coVer story: totAL QuALIty mAnAgement 03 I 04 Real beauty comes<br />
from inside 04 I 05 Not a day goes by without improvements 06 I 07<br />
Interview with Haluk Ilkdemirci and Hans-Dieter Hojnacki 07 Do you<br />
know how a refrigerator works? 09 In the food business a constant<br />
minus is a giant plus<br />
compAny news 10 High quality logistics network I IPL stands for quality<br />
11 Improving quality, safety and transparency 12 I 13 We proudly<br />
present <strong>HAVI</strong> <strong>Logistics</strong> in China<br />
enVIronment 14 I 15 Benefiting not just the environment 15 Certificated<br />
environmental measures<br />
new serVIces 16 Generating efficiencies with greater standardisation I<br />
Invisible Delivery in Sweden 17 Quality improvement with PRINCE2<br />
news In BrIef 18 Customer satisfaction is our goal I Move to Portugal's<br />
far north I “Employee of the year” contest 19 Highly desirable for<br />
our customer dm I A new look for <strong>HAVI</strong>-<strong>Logistics</strong>.com I Did you know ...<br />
20 DC extension in Austria I Latest update – newly rebranded companies<br />
alphabet is printed on Aleo Silk 130 g/sqm. Aleo is produced using 50% recovered fibre with<br />
50% virginfibre, and is an FSC certified product. Further more Aleo is climate neutrally.<br />
Luca Gnecco,<br />
Chairman and CEO, <strong>HAVI</strong> Global <strong>Logistics</strong><br />
imprint<br />
proprietor: <strong>HAVI</strong> Global <strong>Logistics</strong> GmbH<br />
publisher: Christoph Thünemann<br />
content and style editor: Jasmin Schürgers<br />
<strong>HAVI</strong> Global <strong>Logistics</strong> GmbH, Geitlingstraße 20,<br />
47228 Duisburg, Germany<br />
Phone: +49 (0) 20 65 695 258<br />
Fax: +49 (0) 20 65 695 252<br />
Email: info@havi-logistics.com<br />
http://www.havi-logistics.com<br />
publisher council: Luca Gnecco, Haluk Ilkdemirci,<br />
Hans-Werner Krohn, Sven-Carsten Sachse<br />
layout: Simone Lenth, denkmalfrei, Philosophen-<br />
weg 12, 47051 Duisburg, Germany<br />
printer: Druck-Service Weirich GmbH, Industrie-<br />
str. 17, 41564 Kaarst, Germany<br />
The graphics on page 05 and 06 are kindly provided<br />
by tqm.com Deutschland.<br />
This and the following editions would not be realized<br />
without the great help of our <strong>HAVI</strong> <strong>Logistics</strong><br />
members and all the other System Players.<br />
Thanks in advance for sending interesting topics<br />
to be published in future.
eAl beAuty comes<br />
from iNside<br />
Total Quality Management (TQM) is not practicable for many companies<br />
in a fast-moving business world with expectations of short-term<br />
profits. They cannot conceive of quality as a corporate philosophy. It has always been clear to <strong>HAVI</strong> <strong>Logistics</strong><br />
that a company’s external image results from the quality of its work. After all, a good character is attractive or,<br />
in other words, real beauty comes from inside.<br />
tQm Is tHe nAme given to the thorough<br />
and continuous activity of recording, inspecting,<br />
organizing and monitoring all<br />
areas of a company, which introduces quality<br />
as a goal of the system and guarantees<br />
it in the long term. However, TQM is not an<br />
independent system of management, a standard<br />
or a law. TQM means striving to make all<br />
the company’s products and services market<br />
leaders. This is done with the aid of all the<br />
existing parts of the management system –<br />
such as quality management, environmental<br />
management, safety management and human<br />
resources management – quality techniques<br />
and methods for initiating a company-wide<br />
improvement process. TQM requires<br />
the full support of all employees if it is going<br />
to bear fruit.<br />
sInce our compAny wAs founded in<br />
1981, TQM has been an integral part of <strong>HAVI</strong><br />
<strong>Logistics</strong>’ corporate culture. TQM – actually<br />
a child of the 1940s – did not reach European<br />
shores until 1988. It was invented in the<br />
USA by “William Edwards Deming”. But after<br />
the end of the Second World War no one<br />
bothered to pay it any attention because the<br />
focus was on maximizing production volume<br />
in view of the reduced global production<br />
capacities after the War. In war-torn Japan,<br />
on the other hand, Deming’s work met with<br />
more success. Here, Total Quality Management<br />
rapidly became a highly regarded ma-<br />
Cover Story<br />
nagement philosophy; as early as 1951 the<br />
first Japanese company won the “Deming-<br />
Award” for especially high quality standards.<br />
In the decades that followed, the Japanese<br />
Quality checks throughout the whole supply<br />
chain are part of our corporate culture and influence<br />
the daily activity of all the staff.<br />
conquered larger market shares all around<br />
the world with their high-quality, keenly priced<br />
products. They were so successful that<br />
even US companies looked at what Japan<br />
was doing and discovered Deming’s quality<br />
philosophy. It was finally applied by renowned<br />
companies in the USA in the 1970s and<br />
1980s. Then at the end of the 1980s TQM<br />
finally also arrived in Europe.<br />
03<br />
tHe mAIn prIncIpLes of tHe tQm-<br />
pHILosopHy IncLude:<br />
■ Quality is based on the wishes of the<br />
customer.<br />
■ Quality is achieved with input from the<br />
employees at all units and levels.<br />
■ Quality comprises several dimensions<br />
that have to be operationalized by app-<br />
lying certain criteria.<br />
■ Quality is not a goal but a never-ending<br />
process.<br />
■ Quality refers not only to products, but<br />
also to services.<br />
■ Quality requires active participation and<br />
hard work.<br />
The fundamental idea is that quality management<br />
should not be restricted to the technical<br />
functions for ensuring product quality,<br />
but to the relationship between the company<br />
and its customers. The top priority is customer<br />
satisfaction, which can only be achieved<br />
in the long term through sustainable development<br />
of the company itself.<br />
>> continued on page 04
04 Cover Story<br />
>> continued from page 03<br />
<strong>HAVI</strong> <strong>Logistics</strong> puts customer satisfaction<br />
right at the center of all its activities on<br />
cLAssIc QuALIty AssurAnce<br />
the basis of quality features – at all levels in<br />
the hierarchy. Accordingly, we follow a holistic<br />
quality management approach pervading all<br />
areas of our company. The most important<br />
parts of this quality management approach<br />
are data protection, our Continuous Improvement<br />
Process (CIP, see also the article below),<br />
our emergency management, project<br />
administration, quality indicators, quality policy<br />
– which all our employees can read about<br />
in the quality management handbook – and<br />
<strong>HAVI</strong> <strong>Logistics</strong>’ organization charts, process<br />
descriptions, working instructions, HACCP<br />
and QIP. tQm produces resuLts when it is part<br />
of corporate culture and influences the daily<br />
activity of all employees. Scientific studies in<br />
the USA have shown that companies that<br />
have introduced Total Quality Management<br />
are able to achieve greater turnover and<br />
profits, higher productivity, better share per-<br />
Not A dAy Goes by without<br />
improvemeNts<br />
formance and faster growth in the num-<br />
ber of jobs than their competitors.<br />
Companies that are able to beat off the<br />
competition have a strong image and appear<br />
authentic – and these values characterize <strong>HAVI</strong><br />
<strong>Logistics</strong>, too!<br />
Be diligent and frugal: this is the recipe for success of the<br />
automobile manufacturer Toyota. The underlying principle<br />
here is to avoid waste and make improvements every day. Under the name of “kaizen”, this philosophy has<br />
steadily gained ground since it was introduced in Europe in the early 1990s. The essence of the kaizen way<br />
of thinking has been put into practice at <strong>HAVI</strong> <strong>Logistics</strong>. The company has adopted important modules of the<br />
Continuous Improvement Process (CIP), which was developed in Europe on the basis of kaizen.<br />
KAIzen (KAI = cHAnge; zen = for tHe<br />
Better) is a Japanese philosophy for<br />
life and work based on a constant<br />
striving for improvement. At the workplace,<br />
kaizen aims for continuous, never-ending improvement<br />
in all parts of the company and<br />
involving all members of the workforce and<br />
all levels of management. The starting point<br />
for kaizen activities is the realization that there<br />
are problems at every company. A corporate<br />
culture should be established, as a platform<br />
for solving problems, in which everyone<br />
Comparison of classic quality assurance and the TQM approach.<br />
feels free to admit that problems exist. Improvements<br />
in quality and reduction of costs<br />
culminate ultimately in enhanced customer<br />
satisfaction. Kaizen is especially important<br />
in the context of quality management and<br />
is an important element of Total Quality Management<br />
(TQM). Within the TQM process it<br />
is less a concrete method and more a general<br />
mind set which all employees can internalize<br />
and put into practice at their own workplaces.<br />
The basic motto of kaizen is:<br />
totAL QuALIty mAnAgement<br />
HACCP and QIP in combination with our traceability<br />
system guarantee the highest possible<br />
food safety through quality control of all articles.<br />
“Not a day should pass at the company<br />
without improvements of some kind.”<br />
Therefore the task of advocating this<br />
principle at the company, and making it a<br />
central element of corporate culture, falls<br />
primarily to the management. However, all<br />
other employees are called upon to make<br />
proposals for improvements and implement<br />
them in their immediate work environments.
<strong>HAVI</strong> LogIstIcs Is ALwAys open for<br />
cHAnges of tHIs KInd. We are in fact totally<br />
reliant on ideas from our employees.<br />
The message communicated by the management<br />
of <strong>HAVI</strong> <strong>Logistics</strong> - “If we want<br />
everything to remain as it is, everything<br />
has to change!” - is very closely linked to<br />
the Japanese concept of kaizen. At <strong>HAVI</strong><br />
<strong>Logistics</strong> this mode of thinking and viewing<br />
the world has evolved from the general management<br />
concept of the “Continuous Improvement<br />
Process” (CIP). CIP is an attitude<br />
that must be adopted by all participants and<br />
means continuous improvement with an impact<br />
that is as sustainable as possible. CIP,<br />
which has implications for process and service<br />
quality, pervades the entire company.<br />
It is implemented via a process of continual<br />
small incremental improvements - in contrast<br />
to large, abrupt, incisive changes - by means<br />
of continuous team work. CIP is a fundamental<br />
principle of quality management;<br />
for example, it is an indispensable element<br />
of ISO 9001. At <strong>HAVI</strong> <strong>Logistics</strong> these fundamental<br />
concepts are promoted by management<br />
and the entire workforce. In addition<br />
to management meetings, and Eu-<br />
Cover Story<br />
ropean and national operations meetings,<br />
also held by management, we conduct regular<br />
quality circles, called “DC Monday Meetings“,<br />
with employees from the Warehouse,<br />
Transport and Customer Service units.<br />
The “summer schools” held on various<br />
topics at <strong>HAVI</strong> <strong>Logistics</strong> are also very effective.<br />
Any member of the workforce can<br />
put forth an idea here; it is acknowledged<br />
that everyone is an expert in his or her work<br />
area and potentially an agent of change.<br />
Regardless of whether you want to optimize<br />
internal work sequences, avoid unnecessary<br />
costs or use resources optimally,<br />
the most important objectives pursued by<br />
these management and employee circles are:<br />
■ Economic and entrepreneurial re-<br />
quirements: Involving all employees as<br />
experts in the work sequences at their<br />
particular workplace. This expert know-<br />
ledge is then put to use to realize potenti-<br />
als for improvement and to eliminate sour-<br />
ces of defects.<br />
■ Service quality: Optimizing internal work<br />
sequences in order to cut costs while<br />
at the same time maintaining a con-<br />
stant high service quality.<br />
■ Process quality: Preventing unnecessary<br />
costs by eliminating waste (of time, ma-<br />
terials, human resources, energy, etc.).<br />
■ Defects and process risks: Preventing<br />
costs by following a zero defects strate-<br />
gy (defects should simply not be allowed<br />
to occur).<br />
■ Competitiveness and capacity for<br />
growth: Achieving optimal use of resour-<br />
ces (e.g. time, materials, etc.) by impro-<br />
05<br />
ving processes (core processes and<br />
accessory processes). This frees up re-<br />
sources that can be used to generate fur-<br />
ther growth.<br />
wHetHer you Are tALKIng ABout<br />
KAIzen, CIP or one of the many measures<br />
and models used at <strong>HAVI</strong> <strong>Logistics</strong>, the<br />
core idea is the same: promotion of the incremental<br />
and continual improvement of<br />
work sequences, processes or products<br />
by all employees of the company as the<br />
most important foundation of Total Quality<br />
Management.<br />
The so called Demingcycle or PDCA-cycle<br />
describes four different phases of kaizen and<br />
the continuous improvement process: Plan, Do,<br />
Check, Act.
06<br />
iNterview with hAluk ilkdemirci<br />
ANd hANs-dieter hojNAcki<br />
“Quality starts in the head.” This statement by<br />
Andreas Rost* represents one of the keys to Total<br />
Quality Management (TQM) at <strong>HAVI</strong> <strong>Logistics</strong>.<br />
The management of quality, an important business<br />
success factor, is an absolute must at <strong>HAVI</strong><br />
<strong>Logistics</strong> – an opinion shared by Haluk Ilkdemirci,<br />
COO <strong>HAVI</strong> Global <strong>Logistics</strong>, and Hans-Dieter<br />
Hojnacki, Managing Director Operations, <strong>HAVI</strong><br />
<strong>Logistics</strong> Germany.<br />
alphabet: Why is Total Quality Management so<br />
important to <strong>HAVI</strong> <strong>Logistics</strong>?<br />
Haluk: Maintaining and improving high quality is<br />
at the core of our daily life at <strong>HAVI</strong> <strong>Logistics</strong>. It<br />
is our main goal as the “Global Lead <strong>Logistics</strong><br />
Provider” to serve our customers in the best<br />
possible way, striving for complete customer<br />
satisfaction. Our constant focus on the customers’<br />
needs and wishes is the driving force<br />
behind our long-term business success. This<br />
customer focus has to be embraced by everyone<br />
in our company whatever their position.<br />
We can only achieve our aim of “customer satisfaction<br />
first” by committing to and assuring<br />
the underlying idea of “quality first.” Having<br />
said this it is obvious that we at <strong>HAVI</strong> <strong>Logistics</strong><br />
will continue to put our emphasis on improving<br />
our high quality standards just as we<br />
have done in the past.<br />
alphabet: What is the fundamental idea of TQM<br />
at <strong>HAVI</strong> <strong>Logistics</strong>?<br />
Hans-Dieter: The main TQM principles are firstly<br />
100% customer satisfaction, secondly 100%<br />
employee satisfaction, thirdly zero mistakes<br />
right from the beginning, and fourthly low cost,<br />
best value. Enabling our customers to steadily<br />
increase the gap between themselves and<br />
their competitors by offering them innovative<br />
tailor-made solutions is the basis for our longlasting<br />
business relationships. These business<br />
relationships are only possible because we<br />
provide our customers with the highest levels<br />
Interview<br />
of service, quality<br />
and punctuality,<br />
which are prerequisites<br />
for customer practicing our TQM.<br />
satisfaction. Customer<br />
satisfaction is the main reason for the profitable<br />
growth path we have followed in the past<br />
27 years.<br />
Haluk: The main idea of TQM is to proactively<br />
manage processes in a way that leads to perfection<br />
and excellence from the beginning. We<br />
strive for best practices in our business world.<br />
Applying best practice means that we must<br />
organize new services and processes so that<br />
we avoid making any mistakes. Mistakes have<br />
direct negative impacts on customer satisfaction.<br />
Correcting mistakes requires effort on<br />
the part of our employees causes them stress<br />
and increases our costs. This is related to the<br />
Haluk Ilkdemirci and Hans-Dieter Hojnacki (f.l.t.r.) are role models,<br />
*Andreas Rost is the founder of the Alpha Group. The former President and CEO of our organization went into retirement in 2006.<br />
fourth TQM principle Hans-Dieter mentioned:<br />
low cost, best value. We always provide our<br />
customers with best value. As the price influences<br />
customer satisfaction, we continuously<br />
have to work on the productivity of all our<br />
processes. This increases the gap between<br />
ourselves and the competition and also raises<br />
customer satisfaction.<br />
alphabet: You have both stressed the importance<br />
of the employees in TQM. What role<br />
does the <strong>HAVI</strong> <strong>Logistics</strong> management play?<br />
Haluk: Quality starts in the head and it has to<br />
become a way of life for all our employees. The<br />
<strong>HAVI</strong> <strong>Logistics</strong> management can only expect<br />
our people to “live TQM” if we practice it ourselves.<br />
Therefore all <strong>HAVI</strong> <strong>Logistics</strong> Managers<br />
have to be role models, practicing our quality<br />
standards and thus establishing credibility<br />
among our staff.<br />
Hans-Dieter: <strong>HAVI</strong> <strong>Logistics</strong> is a service company<br />
which means that the value added for<br />
our customers does not result from technical<br />
equipment but from our employees’ daily efforts.<br />
These efforts can only have the best possible<br />
results if the managers acknowledge the<br />
accomplishments of their employees, motivate<br />
them, look after them (when they are facing pri-
vate challenges, too), organize business processes<br />
well and provide all their employees<br />
with correct, functional tools. Only satisfied<br />
employees create satisfied customers.<br />
Haluk: A team will not be able to fulfill customers’<br />
requirements unless the environment<br />
in which they work enables them to be<br />
creative and develop innovative solutions.<br />
It is the management’s task to create and<br />
maintain an open-minded culture by putting<br />
company values into practice. Therefore<br />
open communication between different<br />
levels and functions is crucial for sharing<br />
ideas and making further process improvements.<br />
alphabet: The phrase “We’ve always done it like<br />
that!” is known to block change in many companies.<br />
How does <strong>HAVI</strong> <strong>Logistics</strong> view this?<br />
Hans-Dieter: The principle <strong>HAVI</strong> <strong>Logistics</strong><br />
follows here is to put together a set of "building<br />
blocks" for our global activities. Continuous<br />
improvement at <strong>HAVI</strong> <strong>Logistics</strong> is being<br />
pursued by means of a constant process<br />
of small improvements in cross-functional<br />
teams. Additionally there are management<br />
meetings as well as European and national<br />
operations meetings at which the best practices<br />
of different <strong>HAVI</strong> <strong>Logistics</strong> companies<br />
are shared and discussed. Furthermore, we<br />
at <strong>HAVI</strong> <strong>Logistics</strong> Germany conduct regular<br />
quality circles called “DC Monday Meetings”<br />
with employees from the Warehouse,<br />
Transport and Customer Service units. In<br />
these meetings we also evaluate existing<br />
processes and discuss improvements and<br />
innovations from the different viewpoints of<br />
the participants.<br />
Haluk: At the European Management Meeting<br />
in Riga, Latvia, in 2007 our CEO Luca<br />
Gnecco hit the nail on the head when he<br />
said: “If we want everything to remain<br />
as it is, everything has to change.” That<br />
is the all-pervading philosophy at <strong>HAVI</strong><br />
<strong>Logistics</strong>. Constant change is the most important<br />
aspect of our company. Continuous<br />
improvement on all levels is what drives our<br />
customers and us forward.<br />
Cover Story 07<br />
do you kNow how A refri-<br />
GerAtor works?<br />
The refrigeration of foodstuff<br />
works with the help of<br />
elementary physics. The so-called Joule-Thomson effect characterizes the fact that<br />
gas warms when it is pressurized, e.g. in a compressor. When the pressure is removed,<br />
the gas cools. This is the theory behind refrigeration.<br />
tHe prActIcAL AppLIcAtIon of tHIs<br />
tHeory is based on a concept developed<br />
by the physicist Carl von Linde in 1876.<br />
A pressurized gaseous refrigerant is conducted<br />
through a system of coils, also<br />
known as a condenser, causing the gas to<br />
warm. As the gas expands it cools on the<br />
exterior. It cools enough to become liquid<br />
again and flows through an expansion valve,<br />
reducing the pressure. Based on the<br />
Joule-Thomson effect, the liquid continues<br />
to cool below the original temperature prior<br />
to pressurization. At this point, the cooling<br />
effect can be put to use. In the refrigerator<br />
or cooling unit, there is another system of<br />
coils called the evaporator. According<br />
to the laws of thermodynamics,<br />
temperatures can<br />
only decrease. This is why<br />
the cold refrigerant soaks<br />
up some of the warmth<br />
in the refrigerator compartment.<br />
Then it again<br />
turns gaseous and flows<br />
back to the compressor,<br />
where the cycle starts<br />
again.<br />
tHe refrIgerAtIon<br />
process worKs pretty<br />
much the same<br />
way in the cooling<br />
units of the <strong>HAVI</strong><br />
<strong>Logistics</strong> DCs. A<br />
compression cooling<br />
cycle maintains the<br />
freezers at a requir-<br />
ed temperature.<br />
The evaporators hang from the ceiling,<br />
and the compressors are located in a separate<br />
room. It’s obvious that our frozen<br />
and chilled goods not only have to be<br />
stored at prescribed temperatures whi-<br />
The refrigeration process in the cooling units<br />
of <strong>HAVI</strong> <strong>Logistics</strong> works pretty much the<br />
same way as in a conventional refrigerator.<br />
le in the warehouse, but the same<br />
temperature control must also be<br />
maintained during transport. This is<br />
the reason why all <strong>HAVI</strong> <strong>Logistics</strong><br />
trucks are equipped with compression<br />
cooling systems.<br />
The evaporators hang from<br />
the ceiling of the storage<br />
space in the truck's interior,<br />
while the compressor is<br />
usually mounted on the front<br />
side of the exterior or under<br />
the freight vehicle.<br />
The first Linde-refrigerating machine.<br />
A model from around 1900.
08<br />
Zero defects is<br />
our GoAl<br />
Cover Story<br />
Whereas classical quality assurance follows the principle that “zero defects<br />
cannot be achieved,” Total Quality Management maintains the principle that “zero<br />
defects is the goal.” When it comes to quality, <strong>HAVI</strong> <strong>Logistics</strong> ranks right up there in the premiere league, is already<br />
certified in several countries, and in quality checks is not uncommonly awarded the accolade of “Top Performer.”<br />
BeIng tHe Best for our customers is<br />
one of our most important goals. <strong>HAVI</strong><br />
<strong>Logistics</strong> subjects all its units to thorough<br />
testing at regular intervals. For example, every<br />
year the European Distribution Companies are<br />
checked against the Supplier Quality Index<br />
(SQI). The external assessors are interested<br />
in all areas contributing to an organization’s<br />
success and have divided them up into the<br />
following categories: management, system<br />
first, optimized supply, quality management,<br />
innovations and costs. A total of 100 points<br />
can be awarded in this test. Almost all the<br />
<strong>HAVI</strong> <strong>Logistics</strong> companies come out as “Top<br />
Performers” in the SQI check, scoring over<br />
80 points. In 2004 <strong>HAVI</strong> <strong>Logistics</strong> in Germany<br />
scored a massive 97.1 points – a European<br />
record! At this time a new system is being<br />
introduced to replace the current SQI system<br />
in our companies. During the course of 2009<br />
the first <strong>HAVI</strong> <strong>Logistics</strong> companies will be tested<br />
using the new standard, the Distribution<br />
Performance Index (DPI). We will inform<br />
you about changes to the workflows and the<br />
new requirements associated with DPI at <strong>HAVI</strong><br />
<strong>Logistics</strong> in one of our issues coming soon.<br />
up to 2007 tHere wAs one more meAsure<br />
for ensuring TQM in our Distribution<br />
<strong>Center</strong>s in the form of regular AIB (American<br />
Institute of Baking) checks. Once a year<br />
the AIB carried out various quality checks at<br />
our Distribution <strong>Center</strong>s – without prior warning!<br />
The maximum score in an AIB check<br />
was 1,000 points. Even the tiniest contamination<br />
shaved points off the score. In almost<br />
all cases <strong>HAVI</strong> <strong>Logistics</strong> ranked “superior,” i.e.<br />
we scored over 900 points! This meant that<br />
we were often regarded by AIB’s assessors<br />
as a global benchmark.<br />
tHe AIB cHecKs In tHe <strong>HAVI</strong> LogIstIcs<br />
dIstrIButIon centers were replaced by the<br />
Distributor Quality Management Process<br />
(DQMP) at the beginning of 2008. DQMP is<br />
a worldwide quality check that all McDonald’s<br />
distributors undergo. It is far more complex<br />
than AIB. Not only are the farthest corners of<br />
the Distribution <strong>Center</strong> examined, but in addition<br />
all the documentation and reports are<br />
examined for possible weaknesses. DQMP<br />
is based on a catalog of questions containing<br />
over 100 points. Frequently the examiners<br />
do not find the slightest little thing<br />
to object to in our Distribution <strong>Center</strong>s and<br />
our impressive DQMP results of well over<br />
90% are a testament to our Total Quality<br />
Management. In 2008 our German <strong>HAVI</strong><br />
<strong>Logistics</strong> Distribution <strong>Center</strong> near Hamburg<br />
scored the absolute maximum of 100%, proving<br />
that <strong>HAVI</strong> <strong>Logistics</strong> pursues comprehensive<br />
quality management.<br />
some of tHe <strong>HAVI</strong> LogIstIcs compAnIes<br />
have had their quality management certified<br />
separately. Our promotion specialist IPL and<br />
the forwarding company S.T.I. (Germany) are<br />
certified in accordance with the international<br />
industrial standard ISO 9001. While IPL<br />
was being tested and certified by an independent<br />
assessor from the German technical<br />
certification organization DEKRA in November<br />
last year (please read also the article on<br />
page 10), S.T.I. was already recertified – fol-<br />
germAny DC NEu WuLmSTorF 100,0%<br />
tHe resuLts of tHe new dQmp AudIts In<br />
europe (shown below from September<br />
2008 till March 2009) have been unanimously<br />
positive again.<br />
BeLgIum DC oLEN 93,8%<br />
czecH repuBLIc DC KLADNo 92,9%<br />
denmArK DC VEJLE 98,2%<br />
fInnLAnd DC VANTAA 95,8%<br />
germAny DC DuISburG 99,6%<br />
germAny DC NEu WuLmSTorF 100,0%<br />
germAny DC ILSFELD 99,1%<br />
germAny DC WuSTErmArK 99,6%<br />
germAny DC bINGEN 99,1%<br />
norwAy DC FroGNEr 98,2%<br />
portugAL DC CArrEGADo 98,4%<br />
spAIn DC DAGANzo 93,6%<br />
spAIn DC bArCELoNA 99,1%<br />
spAIn DC oSuNA 91,6%<br />
spAIn DC TENErIFE 97,7%<br />
spAIn DC GrAN CANArIA 96,7%<br />
sweden DC TumbA 97,0%<br />
sweden DC GoTHENburG 95,7%<br />
swItzerLAnd DC oENSINGEN 98,0%<br />
lowing on from its successful initial certification<br />
in 2001. For the period up to recertification,<br />
both teams have set themselves the<br />
goal of continually optimizing the already very<br />
high quality of the services they offer today as<br />
part of a continuous process of improvement.
food sAfety is becoming an ever more important<br />
aspect for <strong>HAVI</strong> <strong>Logistics</strong>’ quality management.<br />
In the Distribution <strong>Center</strong>s hygiene<br />
is top priority and the standard far exceeds<br />
the applicable legal regulations. The highest<br />
quality standards are implemented along the<br />
customer’s entire supply chain in accordance<br />
with HACCP and QIP.<br />
<strong>HAVI</strong> <strong>Logistics</strong> in Hungary has even<br />
been certified according to the very important<br />
standard ISO 22000 for its performance<br />
in food safety. In 2006 <strong>HAVI</strong> <strong>Logistics</strong><br />
in Hungary was the first of all <strong>HAVI</strong><br />
<strong>Logistics</strong> companies and also the very first<br />
logistics company in the whole of Hungary to<br />
successfully pass this certification. Our experience<br />
in the field of HACCP, our knowledge<br />
of procedures like First In First Out (FIFO) and<br />
iN the food busiNess A coNstANt<br />
miNus is A GiANt plus<br />
The cold is our ally. Customers rely on <strong>HAVI</strong> <strong>Logistics</strong>’<br />
promise to deliver perishable goods in only a top quality<br />
condition daily. To be able to keep this promise, <strong>HAVI</strong> <strong>Logistics</strong> Distribution <strong>Center</strong>s and trucks are equipped with some<br />
technical refinements, not to mention a few ice-cold specialties.<br />
food HAs Its enemIes. Millions and millions<br />
of fungi (including yeasts and molds), salmonella,<br />
and streptococci can ruin food,<br />
making it unfit for human consumption. Spoilage<br />
which takes place from the inside out -<br />
caused by over-ripening or rotting or by the<br />
process whereby fats and oils become rancid<br />
- are all forms of spoilage which have to be<br />
prevented at all costs. Because this has been<br />
known for quite some time, the human race<br />
has developed a few counter-measures to preserve<br />
its food. Processes like boiling, smoking,<br />
salting, drying or marinating in vinegar protect<br />
food from spoilage. These conservation techniques<br />
all have something in common: they<br />
change the product so that it looks different<br />
after it has been treated; it tastes and smells<br />
different and is no longer a natural product.<br />
The technique of refrigeration is unlike<br />
any other. When foodstuffs are placed in a<br />
Cover Story<br />
the overall tracking of goods has paid off very<br />
well. We showed that our Hungarian team understood<br />
the requirements of this standard<br />
and applied its elements in a very expedient<br />
way – contributing to our highest standards in<br />
food safety throughout <strong>HAVI</strong> <strong>Logistics</strong>.<br />
And when it comes to the traceability<br />
of foods, too, <strong>HAVI</strong> <strong>Logistics</strong> was already in<br />
a position to trace foodstuffs before EU Regulation<br />
178/2002 came into force in 2005.<br />
When the EU Regulation was introduced we<br />
continued to develop our existing traceability<br />
system and launched a comprehensive<br />
EDP project.<br />
AnotHer Aspect tHAt Is At LeAst eQuAL-<br />
Ly ImportAnt for our QuALIty is our indicators<br />
(key figures), which we use to assess our<br />
cooled environment quickly enough after they<br />
have been harvested or produced (or in the<br />
case of meat slaughtered) microorganisms<br />
don’t have a chance. And yet the product still<br />
retains its original integrity. A temperature of<br />
0° Celsius slows the microbiological, physical,<br />
and chemical activities considerably and<br />
keeps food fresh longer. In fact, if a food product<br />
is cooled to under -18° Celsius, these<br />
activities completely cease. This is the temperature<br />
which completes the freezing process.<br />
The formation of crystals between the cells<br />
stops. Products which are stored at a temperature<br />
of -18° Celsius can be kept for a longer<br />
period of time without any noticeable loss of<br />
quality. Because other food-preservation methods<br />
which are also “product neutral,” such<br />
as the irradiation of food or storage in controlled<br />
environments, are time consuming and<br />
expensive, refrigeration has established itself<br />
as the best storage method for food products.<br />
If food Items Are not gIVen constAnt<br />
AttentIon, irreparable damage can occur. For<br />
<strong>HAVI</strong> <strong>Logistics</strong>' customers, a delivery which<br />
does not meet all specifications could have<br />
severe consequences. For this reason, all deliveries<br />
are subject to continual HACCP program<br />
controls. <strong>HAVI</strong> <strong>Logistics</strong> employees carry<br />
out temperature checks of the goods with<br />
calibrated probe thermometers at four different<br />
points in the delivery chain - starting at<br />
the point when they are picked up from the<br />
producer. Even a temperature of -17.9° Cel-<br />
09<br />
own performance. Punctuality and reliable<br />
delivery are the top items. In 2008, 96.30%<br />
of our deliveries arrived punctually, i.e. at the<br />
time agreed with our customers. This is an<br />
outstanding result when you consider that<br />
we - unlike our competitors - have agreed a<br />
tolerance of 30 minutes before/after the specified<br />
delivery time. <strong>HAVI</strong> <strong>Logistics</strong>’ delivery<br />
reliability is also something we can be proud<br />
of. Last year 97.51% of our deliveries were<br />
picked correctly and arrived at the customer<br />
in perfect condition.<br />
However hard we work at comprehensive<br />
quality management, the fundamental<br />
idea at <strong>HAVI</strong> <strong>Logistics</strong> remains the same: quality<br />
is not a goal, but a never-ending process<br />
for achieving total customer satisfaction.<br />
<strong>HAVI</strong> <strong>Logistics</strong> has set its own standard, prescribing<br />
a transport temperature of - 20° Celsius<br />
from the DC to the customers, a temperature<br />
lower than what the law stipulates.<br />
sius is reason enough to reject the goods.<br />
During transports and during storage in the<br />
warehouse, temperatures are constantly checked<br />
and recorded. In fact, <strong>HAVI</strong> <strong>Logistics</strong> has<br />
set its own standard, prescribing a transport<br />
temperature of -20° Celsius from the DC to<br />
the restaurant, a temperature five Grad Celsius<br />
lower than what the law stipulates as limit<br />
value. Up until the very last delivery, a probe<br />
thermometer check is conducted at the requisite<br />
checkpoints and the results are recorded.<br />
<strong>HAVI</strong> <strong>Logistics</strong> boasts with a certain degree of<br />
confidence: nobody knows the frozen and refrigerated<br />
food chain better than we do. Nobody<br />
conducts checks and keeps records as<br />
intensively as we do. When it comes to food<br />
safety, we exclude every risk.
10<br />
Company News<br />
hiGh QuAlity loGistics<br />
Network<br />
<strong>HAVI</strong> <strong>Logistics</strong> uses state-of-the-art<br />
software from AXXOM.<br />
<strong>HAVI</strong> <strong>Logistics</strong> is proud to announce a new service called “logistics network<br />
optimization” using state-of-the-art software.<br />
optImIzIng our LogIstIcs networK is<br />
crucial for us to remain competitive in<br />
the market. The costs of raw materials<br />
and transportation are increasing in the medium<br />
term, influenced by short-term price fluctuation.<br />
To position <strong>HAVI</strong> <strong>Logistics</strong> in its role<br />
as “The Global Lead <strong>Logistics</strong> Provider,” we<br />
have to ask the following questions:<br />
■ Is our logistics network as good as it<br />
can possibly be?<br />
■ Do we provide the most efficient net-<br />
work for our customers?<br />
■ Do we have the transparency to take the<br />
right decisions for today and tomorrow?<br />
■ How can we react fast in a changing<br />
environment and in emergencies?<br />
In order to answer these questions in the<br />
most appropriate way, we have implemented<br />
a new service called “logistics network opti-<br />
mization.” With this new service, we will be able<br />
to optimize the flow of goods from the <strong>HAVI</strong><br />
ipl stANds for QuAlity!<br />
IpL HAs responded to tHe compLexIty of<br />
tHe promotIon BusIness, which has been<br />
rising continually since the company’s<br />
foundation in 2000, and to the increasing<br />
demands customers placed on both established<br />
and new IPL services, with ongoing<br />
monitoring and optimization of processes.<br />
And the results were recently confirmed<br />
by the German technical certification<br />
organization DEKRA. An intensive quality<br />
audit of the whole company in accordance<br />
with EN ISO 9001:2000 verified IPL’s high<br />
quality standards in November last year.<br />
The independent auditor from DEKRA<br />
Certification Services GmbH verified that<br />
IPL’s daily processes met all the legal requirements<br />
in accordance with the worldwide<br />
industrial standard for quality management<br />
ISO 9001:2000. The certificate confirms in<br />
black and white that IPL’s quality management<br />
system operates effectively and complies<br />
with the standard. For the period up to<br />
recertification in 2009, IPL has set itself the goal<br />
of continually optimizing the already very high<br />
quality of the services it offers today as part of<br />
a continuous process of improvement.<br />
Marcus Hill, auditor from DEKRA (center) and Consultant Christiane Neeb during the presentation of<br />
the certificate to all IPL employees.<br />
<strong>Logistics</strong> Distribution <strong>Center</strong>s to our customers<br />
reduce kilometers and minimize transport<br />
costs.<br />
for tHIs strAtegIc LogIstIcs And dIs-<br />
trIButIon pLAnnIng we use the state-ofthe-art<br />
optimization software ORion-PI ®<br />
Value Network Optimization, developed by<br />
AXXOM. This program is one of the leading<br />
technological solutions for the integrated<br />
analysis, simulation, design and optimization<br />
of strategic and tactical network scenarios<br />
in logistics and distribution. ORion-PI ® offers<br />
an end-to-end optimization approach which<br />
covers every relationship within the supply<br />
chain: from customer relations, production<br />
plants and Distribution <strong>Center</strong>s to suppliers,<br />
manufacturers and distributors. It allows<br />
an accurate representation of the network,<br />
even if it consists of thousands of locations,<br />
customers and products. ORion-PI ® is also<br />
used by well known companies such as<br />
Henkel, Avon, MAN, DHL, BASF.<br />
Acording to the <strong>HAVI</strong> <strong>Logistics</strong>’ functional realignment<br />
process of the Happy Meal-, Promotions-<br />
and Packaging-Function, IPL Perseco<br />
will move from <strong>HAVI</strong> <strong>Logistics</strong> to <strong>HAVI</strong> Global<br />
Solutions. This process has started and will<br />
be finalized over a few months. This positions<br />
IPLPerseco to benefit from the global leverage<br />
and functional leadership of the Perseco and<br />
IPL businesses under the <strong>HAVI</strong> Global Solutions<br />
umbrella, while maintaining the benefits<br />
of a close alignment and leverage with <strong>HAVI</strong><br />
<strong>Logistics</strong> in Europe.<br />
In addition to that movement, <strong>HAVI</strong> Global<br />
Solutions also has been consolidated the pan-<br />
European supply chain integration functions of<br />
ISIS under its umbrella since March 1st.<br />
These two organizational changes are intended<br />
to fully align the <strong>HAVI</strong> Global Solutions’ internal<br />
resources for delivering supply chain and<br />
promotion management services in a manner<br />
that maximizes the future benefit to all <strong>HAVI</strong><br />
<strong>Logistics</strong> customers.
Company News 11<br />
improviNG QuAlity, sAfety<br />
ANd trANspAreNcy<br />
The main elements of a cutting-edge organization<br />
are concentration on core competencies<br />
and efficient business processes. <strong>HAVI</strong> <strong>Logistics</strong> is going to achieve fundamental quality improvements<br />
in standardization by implementing SAP.<br />
fIVe out of sIx compAnIes have errors<br />
in more than ten percent of their master<br />
data records. And one in ten companies<br />
has errors in over 30 percent, owing<br />
to duplicates, incorrect classifications or incomprehensible<br />
material texts. These are the<br />
sobering results of a survey by the specialist<br />
firm Omikron Data Quality. The main causes<br />
are that the processes and rules for updating<br />
master data are not sufficiently defined,<br />
responsibilities are not made clear, or there<br />
is no software solution ensuring automatic<br />
data updates.<br />
zero errors Is our goAL, and of course<br />
this also applies to the extremely important<br />
updating of our master data and how our finance<br />
processes are handled. To this end<br />
we have been using a standard business<br />
software program since the beginning of this<br />
year to support us in the area of finance.<br />
SAP ERP is the main product from the German<br />
software company SAP. ERP stands for<br />
"Enterprise-Resource-Planning", which gives<br />
users an integrated view of all the parts<br />
of a company that are relevant to business.<br />
ERP software products are constructed as<br />
modules and cover the areas of invoicing,<br />
human resource management and logistics.<br />
We use the modules FI (Financials) and CO<br />
(Controlling) for setting universal corporate<br />
standards for the areas of financial accounting<br />
and controlling, and for monitoring them<br />
in the long term. SAP ERP should guarantee<br />
that <strong>HAVI</strong> <strong>Logistics</strong>’ corporate structure is<br />
mapped in a client and that the system users<br />
operate solely within a system landscape.<br />
This environment consists of standards such<br />
as the Group Chart of Accounts (GCoA) and<br />
harmonized master data. A huge step on the<br />
way to standardization is the migration from<br />
a solution called Kissels, which is installed<br />
separately in each of the <strong>HAVI</strong> <strong>Logistics</strong> companies<br />
for handling the Chart of Accounts,<br />
master data and reporting. Our new standard<br />
software environment supports multiclient<br />
and language concepts and offers industry<br />
standards for <strong>HAVI</strong> <strong>Logistics</strong> business<br />
processes. The implementation of the new<br />
business software is a major project for <strong>HAVI</strong><br />
<strong>Logistics</strong>. One project team consisting of Finance<br />
Key users, IS specialists and external<br />
Mirza Hasanagic (Accounts payable team member) shows the function of SAP ERP to the team and<br />
the project managment of the Shared Service <strong>Center</strong>.<br />
consultants has been formed to design the<br />
template, and configure and implement SAP<br />
country by country.<br />
At present SAP is used principally in our<br />
Shared Service <strong>Center</strong> (SSC) in Prague (see<br />
also the article on page 17), which went into<br />
service for the German companies in January,<br />
at the same time that SAP was introduced.<br />
This <strong>HAVI</strong> <strong>Logistics</strong> service unit offers<br />
standard accounting services to the <strong>HAVI</strong><br />
<strong>Logistics</strong> organization. SAP ERP is a key element<br />
in realizing this support.<br />
In future ALL <strong>HAVI</strong> LogIstIcs compAnIes<br />
should benefit from the standard business<br />
software. Standardization will proceed<br />
as part of the SAP roll-outs in <strong>HAVI</strong> <strong>Logistics</strong><br />
countries and the process of switching their<br />
accounting services to the SSC. For example,<br />
the <strong>HAVI</strong> <strong>Logistics</strong> companies will use<br />
the Group Chart of Accounts (GCoA) and<br />
harmonize their master data. This will produ-<br />
ce optimized results in the form of a unified<br />
structure and improved evaluation options.<br />
to expAnd tHe use of sAp another project<br />
will be implemented at <strong>HAVI</strong> <strong>Logistics</strong>:<br />
“iSAW” (Invoice Scanning, Archiving, Workflow).<br />
Once iSAW is in place, all incoming<br />
invoices will be scanned locally by <strong>HAVI</strong> <strong>Logistics</strong><br />
employees, automatically sent to a<br />
central digital archive, and fed into an electronic<br />
workflow. This is where the invoices<br />
will be checked and released by the relevant<br />
member of staff, the SSC and the cost center<br />
manager, and they will then be posted in<br />
SAP automatically.
12<br />
we proudly preseNt hAvi<br />
loGistics iN chiNA<br />
As “The Global Lead <strong>Logistics</strong> Provider” <strong>HAVI</strong><br />
<strong>Logistics</strong> has expanded its business throughout<br />
Europe, North America and Greater Asia. <strong>HAVI</strong> <strong>Logistics</strong> now has over 6,000 employees providing total logistics<br />
solutions to a wide range of strategic customers. In the next few issues of alphabet, we will introduce<br />
to you our <strong>HAVI</strong> <strong>Logistics</strong> companies located and working in the Asian region. In this issue, we will focus on<br />
our operations in Mainland China.<br />
Be fIrst, Be fAst, Be dIfferent. This is the<br />
motto <strong>HAVI</strong> <strong>Logistics</strong> has used to expand<br />
around the world. <strong>HAVI</strong> <strong>Logistics</strong><br />
is one of three pillars within the organizational<br />
structure that makes up the <strong>HAVI</strong> Group<br />
LP. The other two companies, “The Marketing<br />
Store” and “<strong>HAVI</strong> Global Solutions” support<br />
<strong>HAVI</strong> <strong>Logistics</strong> to provide a full range of solutions<br />
to its customers to compliment its logistics<br />
services. <strong>HAVI</strong> <strong>Logistics</strong> currently makes<br />
deliveries to nearly 13,300 retail outlets around<br />
the world from 72 Distribution <strong>Center</strong>s!<br />
<strong>HAVI</strong> LogIstIcs In cHInA began operations<br />
with what the President of <strong>HAVI</strong> <strong>Logistics</strong><br />
Greater Asia, Bill O'Brien, calls "barely viable<br />
facilities, deteriorating warehouses, trucks in<br />
need of maintenance and repair, and a dearth<br />
of freezers.” Today <strong>HAVI</strong> <strong>Logistics</strong> in Mainland<br />
China has a workforce of over 600 employees<br />
and a growing network of China’s most modern<br />
facilities and Distribution <strong>Center</strong>s, making<br />
Company News<br />
<strong>HAVI</strong> <strong>Logistics</strong> in China provided food logistics<br />
services for all the catered restaurants and<br />
McDonald’s inside the Olympic venues.<br />
<strong>HAVI</strong> <strong>Logistics</strong> the leading model of cold chain<br />
and food safety for the last 16 years. <strong>HAVI</strong> <strong>Logistics</strong><br />
now provides customized cold chain<br />
logistics services to over 1,100 McDonald’s<br />
restaurants, as well as a number of other highprofile<br />
multi-national Quick Service Restaurant<br />
chains and retailers. Currently, <strong>HAVI</strong> <strong>Logistics</strong><br />
in Mainland China operates three Distribution<br />
<strong>Center</strong>s (Beijing, Guangzhou and Shanghai),<br />
two satellite Distribution <strong>Center</strong>s (Wuhan and<br />
Shenyang), one depot (Chengdu) and a bonded<br />
warehouse (Shenzhen). In China, <strong>HAVI</strong><br />
<strong>Logistics</strong> has led the industry in providing true<br />
lead logistics solutions that include: inventory<br />
management and demand planning, routing<br />
optimization, in-store logistics as well as customized<br />
ordering systems.<br />
product sAfety HAs Been A Hot topIc<br />
In cHInA in recent years, with reports of tainted<br />
pet foods, fake drugs, toxin-coated cosmetics,<br />
and milk powder. This has led to numerous<br />
product recalls, import/export bans<br />
and more stringent food safety laws in China.<br />
The government has pledged to boost its safety<br />
standards, but many companies across<br />
China have started to realize that they must,<br />
as a matter of urgency, begin to pay greater<br />
attention to ensuring that their products<br />
are distributed, stored and handled in the re
quired temperature range to guarantee freshness<br />
and safety to the consumer. Since the<br />
start of <strong>HAVI</strong> <strong>Logistics</strong>’ first Distribution <strong>Center</strong><br />
in Guangzhou, the company has led the<br />
way in guaranteeing the highest logistics food<br />
safety standards in the most reliable and efficient<br />
way available on the Mainland. By pro-<br />
<strong>HAVI</strong> LogIstIcs cHInA:<br />
fActs & fIgures<br />
Foundation:<br />
• <strong>HAVI</strong> <strong>Logistics</strong> Guangzhou: 1993<br />
• <strong>HAVI</strong> <strong>Logistics</strong> Beijing: 2000<br />
• <strong>HAVI</strong> <strong>Logistics</strong> Shanghai: 2001<br />
Land area:<br />
• Guangzhou: 12,500 sq.m.<br />
• Beijing: 12,000 sq.m.<br />
• Shanghai: 11,000 sq.m.<br />
Size of the Distribution <strong>Center</strong>:<br />
• Guangzhou: 5,000 sq.m.<br />
• Beijing: 7,300 sq.m.<br />
• Shanghai: 5,100 sq.m.<br />
Employees: 600<br />
Trucks: 50<br />
Delivery points: 1,220<br />
The <strong>HAVI</strong> <strong>Logistics</strong> staff in Beijing and the <strong>HAVI</strong> Group LP Top Management<br />
as well as <strong>HAVI</strong> <strong>Logistics</strong> Executive Board.<br />
Company News 13<br />
viding China’s most stringently temperaturecontrolled<br />
facilities and trucks, <strong>HAVI</strong> <strong>Logistics</strong><br />
has become the first choice for all companies<br />
focused on food safety and having the<br />
highest international standards. In recognition<br />
of this, <strong>HAVI</strong> <strong>Logistics</strong> was chosen by the<br />
Beijing Olympic Organizing Committee to provide<br />
food logistic services for all the catered<br />
restaurants and McDonald’s inside the Olympic<br />
venues (see also the article in Issue 19 or<br />
go to our video on www.havi-logistics.com /<br />
News & <strong>Media</strong>).<br />
“tHe BIggest cHALLenge fAcIng us In<br />
cHInA “While such assets should not be undervalued,<br />
both domestic and foreign businesses<br />
need to channel their resources to<br />
people and systems. That means optimizing<br />
networks, routing, and assets,” Bill says. “Only<br />
then can we create a cost-efficient perishables<br />
chain that maximizes value for retailers and restaurants.<br />
Bill O’Brien has charted an unconventional<br />
course, overseeing from scratch the<br />
development of a world-class cold chain in a<br />
region plagued by food-safety issues. Today<br />
two factors account for the success of <strong>HAVI</strong><br />
<strong>Logistics</strong> in China. The first, which also has<br />
to do with the <strong>HAVI</strong> <strong>Logistics</strong> culture, is that<br />
our Chinese team shares an intense dedication<br />
to its customers. The second reason for<br />
<strong>HAVI</strong> <strong>Logistics</strong>’ success is its people. Mainland<br />
China’s management team has been responsive<br />
to <strong>HAVI</strong> <strong>Logistics</strong>’ values, goals, and<br />
strategic focus, which has been extremely innovative<br />
for the Chinese market. In summary,<br />
the entire <strong>HAVI</strong> <strong>Logistics</strong> organization is proud<br />
of the past and excited for the future of <strong>HAVI</strong><br />
<strong>Logistics</strong> in China.<br />
<strong>HAVI</strong> <strong>Logistics</strong> in Mainland China has<br />
a workforce of over 600 employees<br />
and a growing network of China's<br />
most modern Distribution <strong>Center</strong>s.<br />
You find further information about <strong>HAVI</strong> <strong>Logistics</strong><br />
China under www.havi-logistics.com
14<br />
The new Distribution <strong>Center</strong> in Amersfoort is equiped<br />
with cutting-edge technology.<br />
beNefitiNG Not just<br />
the eNviroNmeNt<br />
In December of last year our <strong>HAVI</strong> <strong>Logistics</strong> team in<br />
the Netherlands relocated from Nijkerk to a new Distribution<br />
<strong>Center</strong> in Amersfoort. The new DC has not only been built to the latest technical standards, but is also<br />
equipped with a new type of refrigeration system making it especially environmentally friendly. The new DC building<br />
benefits both the environment and the employees.<br />
wHen It comes to tHe QuALIty And tHe<br />
sAfety of the foodstuffs that we store<br />
and transport, <strong>HAVI</strong> <strong>Logistics</strong> eliminates<br />
all possible risks. This also affects the<br />
choice of refrigerant. Carl von Linde (see article<br />
on page 07) operated his first functional<br />
refrigeration system using ammonia. Alt-<br />
To protect the employees - in case of a damage -<br />
at DC Amersfoort the piping for ammonia is installed<br />
at the outside of the building.<br />
Environment<br />
hough this is a natural substance, it is difficult<br />
to handle and technically awkward to use,<br />
and in concentrated form it is hazardous to<br />
human beings. Today <strong>HAVI</strong> <strong>Logistics</strong> operates<br />
most of its refrigeration systems with<br />
the environmental friendly refrigerant R404.<br />
For several years, while searching for a natural<br />
refrigerant, we have been following in the<br />
footsteps of Carl von Linde and working on<br />
the safe re-introduction of ammonia into refrigeration<br />
systems. We are justifiably proud<br />
that, with the introduction of ammonia in our<br />
German <strong>HAVI</strong> <strong>Logistics</strong> Distribution <strong>Center</strong> in<br />
Duisburg and in our Belgian DC, we are now<br />
using ammonia again for refrigeration.<br />
In our new dc In Amersfoort we are<br />
also expecting good results from ammonia as<br />
a refrigerant owing to its high coefficient of<br />
performance and environmental soundness. In<br />
order to protect the employees from any leaks<br />
of gaseous ammonia - which is actually only<br />
dangerous at high concentrations - the pipes<br />
carrying the ammonia are located on the DC‘s<br />
external wall, and they are made of rust-free<br />
materials so as to provide extra protection.<br />
Other technical refinements of the new<br />
refrigeration system are the combination of<br />
chamber coolers and the air duct system,<br />
low noise emissions and no defrosting inside<br />
the warehouse. The novel refrigeration system<br />
avoids ice formation on the evaporator<br />
and provides a smooth and well distributed<br />
supply of cooled air, and it is much simpler to<br />
maintain. And in good <strong>HAVI</strong> <strong>Logistics</strong> fashion,<br />
in the Amersfoort DC, too, the energy generated<br />
during cooling of the frozen storage areas<br />
is not just released into the environment<br />
as waste heat. At <strong>HAVI</strong> <strong>Logistics</strong> a heat recovery<br />
system captures and uses this energy<br />
to heat the dry storage areas and the offices.
And of course our new Distribution <strong>Center</strong> in<br />
the Netherlands is equipped with one of these<br />
systems.<br />
despIte ALL tHIs cuttIng-edge tecHnoLogy,<br />
the employees at our Dutch <strong>HAVI</strong><br />
<strong>Logistics</strong> company had mixed feelings about<br />
the new DC and the move to Amersfoort. They<br />
were very keen on an extremely efficient and<br />
ultra-modern solution. But they were concer-<br />
State-of-the-art compressor<br />
ned by the fact that their new workplace was<br />
approx. 10 kilometers away from the old one.<br />
Out of the 220 employees, 120 live in the town<br />
of Nijkerk itself. Sixty of them could walk to<br />
<strong>HAVI</strong> LogIstIcs’ commItment to tHe<br />
enVIronment means that our distribution<br />
company in Turkey chooses the most environmentally<br />
friendly processes, consciously<br />
makes optimal use of natural resources,<br />
and insists on environmentally friendly production<br />
procedures that save energy and<br />
prevent waste. The importance of complying<br />
with environmental laws is self-evident. The<br />
continuous reduction of energy consumption<br />
by means of innovative storage techniques<br />
or heat-recovery systems for heating<br />
offices and ambient storage areas is a<br />
basic component of environmental policy<br />
in Turkey and at most of the <strong>HAVI</strong> <strong>Logistics</strong><br />
locations.<br />
Environment 15<br />
work or go by bicycle. Now they would have<br />
to switch to taking the car, on a route that included<br />
a busy freeway. This would have been a<br />
considerable extra burden not only on our staff<br />
but also on the environment. In the end one of<br />
the warehouse staff asked if we could acquire<br />
a company motor scooter - which turned out<br />
to be the solution to the problem. With motor<br />
scooters congested freeways would no longer<br />
be an issue and the drive to work would be<br />
quick and safe for all the employees. We did<br />
a general calculation, and also compared the<br />
costs of a standard motor scooter and a battery-powered<br />
one. The environmentally friendly<br />
alternative won on all counts. An electric scooter<br />
can manage a whole 70 kilometers on a fully<br />
charged battery. It is “filled up” again by plugging<br />
it into the normal electricity supply - which<br />
is also much simpler than filling the tank with<br />
gasoline at a gas station.<br />
now tHe moVe to the new Distribution<br />
<strong>Center</strong> has been completed successfully. Everything<br />
about the DC in Amersfoort is great. It<br />
is not only equipped with a large number of<br />
technical features and, most importantly, environmentally<br />
friendly ones, but it also addresses<br />
the concerns of <strong>HAVI</strong> <strong>Logistics</strong>’ employees to<br />
a degree that only a good employer can. Ano-<br />
In January our Turkish-based company<br />
was audited for the first time for compliance<br />
with DIN EN ISO 14001. The audit protocol<br />
stressed the importance of cleanliness and<br />
order in the warehouse, procedures applied<br />
according to the spirit of the law, separate<br />
collection of hazardous and recyclable materials,<br />
and documentation in general. <strong>HAVI</strong><br />
<strong>Logistics</strong> in Turkey was certified by the external<br />
audit company First Quality Certification<br />
(FQC) and now has to prepare for<br />
recertification in 2011.<br />
ther very important aspect is the fact that the<br />
new DC allows <strong>HAVI</strong> <strong>Logistics</strong> to bundle all the<br />
operations for our customers McDonald’s and<br />
BP Netherlands at one facility and finally to exploit<br />
the operational synergies.<br />
certificAted eNviroNmeNtAl<br />
<strong>HAVI</strong> <strong>Logistics</strong> in Turkey has its exemplary environ-<br />
meAsures mental protection activities certified according to DIN EN<br />
ISO 14001 and has thus committed itself to consistently follow the environmental goals<br />
set by this standard.<br />
Ata Akici, Environment Coordinator<br />
and Altan Sekmen, Managing<br />
Director <strong>HAVI</strong> <strong>Logistics</strong><br />
Turkey (right).
16<br />
New Services<br />
GeNerAtiNG efficieNcies with<br />
GreAter stANdArdiZAtioN<br />
As of January 2009 <strong>HAVI</strong> Global <strong>Logistics</strong> has been managing the accounting services for<br />
the European <strong>HAVI</strong> <strong>Logistics</strong> companies centrally from Prague. This step and the foundation<br />
of a new company named <strong>HAVI</strong> <strong>Logistics</strong> Shared Services s.r.o (SSC) have opened up new<br />
vistas for <strong>HAVI</strong> <strong>Logistics</strong>.<br />
Part of the project team for the<br />
organizational setup of the Shared<br />
Service <strong>Center</strong> and the simultaneous<br />
configuration and implementation<br />
of SAP. The Finance- and<br />
the Controlling-Department as<br />
well as <strong>HAVI</strong> <strong>Logistics</strong> Information<br />
Services are closely linked together<br />
dependent on the success of the<br />
Shared Service <strong>Center</strong>. (order from<br />
left) Stefan Tittel, Ralf Kreuzenbeck,<br />
Peter Looks, Jovanka Vajce, Ullrich<br />
Wegner, Christof Schwarberg,<br />
Michael Hoier and<br />
Andreas Koetter.<br />
iNvisible delivery<br />
iN swedeN<br />
tHe <strong>HAVI</strong> LogIstIcs’ InVIsIBLe de-<br />
LIVery concept means that the<br />
McDonald’s restaurant crew is totally<br />
freed of all tasks that are part of<br />
the delivery process. Invisible Delivery<br />
allows deliveries to take place during or<br />
after a restaurant’s opening hours.<br />
wItH our current performAnce<br />
And suBstAntIAL mAr-<br />
Ket opportunItIes <strong>HAVI</strong> <strong>Logistics</strong><br />
will grow steadily in the years to<br />
come. To enable this growth it is appropriate<br />
to reorganize and standardize<br />
our accounting processes more<br />
efficiently and to support them with<br />
new scalable cutting-edge technology.<br />
Since January of 2009 we have been<br />
combining all relevant accounting activities<br />
at one “Shared Service <strong>Center</strong>,”<br />
initially for the first five <strong>HAVI</strong> <strong>Logistics</strong><br />
companies. In the course of 2009 and<br />
2010 selected accounting activities of<br />
all the remaining European <strong>HAVI</strong> <strong>Logistics</strong><br />
companies will be taken over by<br />
the Shared Service <strong>Center</strong>. Located in<br />
Prague, the capital of the Czech Republic,<br />
the company will provide the European<br />
companies with excellent accounting<br />
services covering accounts<br />
payable, accounts receivable, general<br />
ledger and fixed assets.<br />
Simultaneous with the opening<br />
of the Shared Service <strong>Center</strong> the implementation<br />
of the new SAP accounting<br />
software is a major cornerstone of<br />
our growth strategy (please read also<br />
the article on page 11). As essential<br />
Between feBruAry And August<br />
of tHIs yeAr our Swedish-based <strong>HAVI</strong><br />
<strong>Logistics</strong> company tested our Invisible<br />
Delivery service in eight McDonald’s<br />
restaurants. The target is to roll out<br />
the service to nearly all 100 restaurants<br />
in Stockholm, Gothenburg and<br />
Malmoe during 2010. The success<br />
steps in the execution of such a project,<br />
boundaries needed to be broken<br />
down, new working procedures had to<br />
be implemented and, most importantly,<br />
clear targets, roles and responsibilities<br />
had to be defined.<br />
tHe ImproVement of our orgAnIzAtIon<br />
is the key success criterion<br />
for all of our employees to secure and<br />
support the growth strategy of <strong>HAVI</strong><br />
<strong>Logistics</strong>. The main elements of a cutting-edge<br />
organization are standardization<br />
and concentration on core competencies.<br />
We have achieved fundamental<br />
improvements with the opening<br />
of our Shared Service <strong>Center</strong> and the<br />
implementation of SAP. A lot of work,<br />
enthusiasm and passion has been invested<br />
in these projects. The central<br />
element of the successful SSC implementation<br />
is the excellent support provided<br />
by everyone involved. In the future<br />
our <strong>HAVI</strong> <strong>Logistics</strong> companies can<br />
concentrate on their core task of providing<br />
competitive logistics solutions to<br />
our customers even better than before.<br />
Now we have to start generating efficiencies<br />
with greater standardization so<br />
that we will be “fit for the future.”<br />
One <strong>HAVI</strong> <strong>Logistics</strong>’ idea of relieving the McDonald’s restaurants<br />
of all logistics tasks is called Invisible Delivery. It is a special<br />
service that is already offered in Germany, Hungary, Italy and Turkey and will soon be offered for the<br />
restaurants in Sweden as well.<br />
of our service ECOSIMA (Economic<br />
Store Inventory Management Assistance)<br />
had a huge effect on the acceptance<br />
of Invisible Delivery: during<br />
ECOSIMA our Swedish company<br />
proved that they were experts<br />
in logistics not just within the Distribution<br />
<strong>Center</strong> and during delive
ies but at the restaurants as well. During<br />
ECOSIMA delivery frequencies and storage<br />
capacities were harmonized; this resulted<br />
in optimal storage conditions at restaurants<br />
and optimal (mostly decreasing) delivery<br />
frequencies.<br />
In practice Invisible Delivery means that<br />
the driver of <strong>HAVI</strong> <strong>Logistics</strong> offloads the truck,<br />
while workers of the Swedish merchandiser<br />
Komet carry all goods into the restaurant<br />
storage areas and place them directly<br />
on the shelves. The joint project group<br />
(including members from <strong>HAVI</strong> <strong>Logistics</strong><br />
Sweden and McDonald’s Sweden) has put<br />
a lot of effort into defining the exact tasks<br />
for the merchandiser and a manager of<br />
Komet received intensive training at <strong>HAVI</strong><br />
<strong>Logistics</strong> in Sweden.<br />
tHe BIggest cHALLenge for our team<br />
in Sweden was the task of making deliveries<br />
to the McDonald’s restaurant serving the<br />
prInce (Projects in Controlled Environments)<br />
is a structured project management<br />
method for executing projects<br />
successfully. The first outlines of what we<br />
now know as PRINCE2 were already established<br />
in 1975 under the name of PROMP-<br />
TII. The British Central Computer and Telecommunications<br />
Agency (CCTA) used<br />
PROMPTII as a standard method for all government<br />
projects. In 1989 the CCTA released<br />
PRINCE, which superseded PROMPTII.<br />
The CCTA (now the Office of Government<br />
Commerce) continued to develop the method.<br />
In 1996 a new release was introduced<br />
called PRINCE2, which incorporated years<br />
of experience and best practices, and provided<br />
a structured approach for carrying out<br />
all kinds of projects.<br />
due to tHe InternAtIonAL recognItIon<br />
enjoyed by PRINCE2 and its applicability<br />
and scalability in different types of projects,<br />
<strong>HAVI</strong> <strong>Logistics</strong> selected this project management<br />
method as the standard for executing<br />
its projects. The Program Management Office<br />
(PMO) at <strong>HAVI</strong> <strong>Logistics</strong> IS selected the<br />
method and is responsible for its continuing<br />
deployment within the organization. PMO offers<br />
employees who are or will be participa-<br />
New Services<br />
guests of the Gothenburg Horse<br />
Show. This big event was<br />
hosted by Sweden's Scandinavium<br />
arena between February<br />
19 and 22 and was awaited<br />
with bated breath. This is because<br />
the McDonald's restaurant<br />
received two full trucks on<br />
the final day of the Horse Show<br />
and the putting-away process<br />
took approximately eight to ten<br />
hours. Titti Bergqvisit, Manager<br />
of the McDonald's restaurant<br />
located at the Horse Show: "It was the<br />
smoothest Horse Show week ever, excellent<br />
logistics process."<br />
In tHe next montHs the test will be extended<br />
to additional Swedish cities with a<br />
high concentration of McDonald’s restaurants.<br />
Moreover, the integration of franchisee<br />
stores will be part of the next step.<br />
QuAlity improvemeNt<br />
with priNce2<br />
ting in projects the opportunity of enrolling<br />
on a two-day PRINCE2 Foundation training<br />
course and certification. The PRINCE2 training<br />
course is delivered by the certified training<br />
institute “Insights International” and provides<br />
an essential overview for understanding<br />
and utilizing the method and enabling people<br />
to speak the same language.<br />
tHe <strong>HAVI</strong> LogIstIcs HumAn resources<br />
department organizes the PRINCE2 training<br />
cycles. After two years of sharing the<br />
PRINCE2 experience with the organization,<br />
we can proudly say that <strong>HAVI</strong> <strong>Logistics</strong> has<br />
more than 140 PRINCE2-certified employees,<br />
and the next training courses in Duisburg<br />
(Germany) are already scheduled for 22<br />
and 23 April 2009.<br />
The PRINCE2 training course provides<br />
a good ‘instrument’ for obtaining the essential<br />
know-how for structuring and executing<br />
a project. When additional support and/or a<br />
review is wanted, PMO is there to help. With<br />
the lessons learned and experience gained<br />
from previous projects, as well as its insight<br />
into the PRINCE2 method, PMO is available<br />
to support you in structuring your roadmap<br />
to project success.<br />
Our Swedish team proved<br />
its excellence in Invisible<br />
Delivery by supplying the<br />
McDonald's Restaurant in<br />
the Scandinavium arena at<br />
Gothenburgs Horse Show.<br />
NeFiSo (New Financial Solution)*, Weblog Implementations<br />
and the Common Software Solution for S.T.I. Network<br />
(CSSN) are examples of the many successful projects that <strong>HAVI</strong> <strong>Logistics</strong> has conducted in recent years.<br />
To reinforce and ensure such success, <strong>HAVI</strong> <strong>Logistics</strong> uses the PRINCE2 project management method.<br />
* The NeFiSo project from <strong>HAVI</strong> <strong>Logistics</strong> IS provides the required IT platform to support the finance<br />
processes and to replace the existing solution for Financial Accounting (KISSELS) at <strong>HAVI</strong> <strong>Logistics</strong>.<br />
Part of the PRINCE2 PMO:<br />
(f.l.t.r.) Dana Moses, Project<br />
Controlling and Administration;<br />
Christian Matull, Senior<br />
Manager; Theresa Dicke,<br />
HR Assistant; Herman van<br />
Dasselaar, Consultant<br />
Methodology Management<br />
and Shafag Aliyeva, Junior<br />
Consultant Methodology<br />
Management.<br />
17
18<br />
News in Brief<br />
The <strong>HAVI</strong> <strong>Logistics</strong> website is presenting a new face to the world, with a completely new<br />
<strong>Media</strong> <strong>Center</strong> and an extensive picture database.<br />
A New look for hAvi-loGistics.com<br />
wItH tHe reBrAndIng of our compAny, we<br />
have taken on an entirely new Corporate Identity<br />
(CI). Our behavior, our communication, and<br />
the Corporate Image we project both inside<br />
and outside the company have been revamped<br />
and harmonized across the board.<br />
Our <strong>HAVI</strong> <strong>Logistics</strong> website, which offers<br />
various language options, is the digital show-<br />
case of the company. Visitors to www.havilogistics.com<br />
are greeted by an attractive<br />
design and a clear-cut navigation structure;<br />
they consequently experience <strong>HAVI</strong> <strong>Logistics</strong><br />
as being technically competent, experienced<br />
and innovative. Our new homepage welcomes<br />
visitors to the <strong>HAVI</strong> <strong>Logistics</strong> World<br />
and invites them to enter the virtual representations<br />
of the six central divisions:<br />
Our <strong>HAVI</strong> <strong>Logistics</strong> Website in traditional Chinese language<br />
is now available under www.havi-logistics.com<br />
Company, Services, Jobs & Career, News &<br />
<strong>Media</strong>, References and Contact.<br />
tHe <strong>HAVI</strong> LogIstIcs serVIce pHILosopHy<br />
Is exempLIfIed By the division of News & <strong>Media</strong>.<br />
At this virtual <strong>Media</strong> <strong>Center</strong>, the company<br />
extends a warm welcome to journalists and<br />
other opinion leaders by offering them the<br />
possibility to access information about the<br />
company without having to enter a password.<br />
The new <strong>Media</strong> <strong>Center</strong> is the central portal to<br />
the <strong>HAVI</strong> <strong>Logistics</strong> World and offers visitors<br />
a wealth of materials: corporate brochures,<br />
our corporate newspaper alphabet, press<br />
releases (available in several languages), the<br />
latest news about <strong>HAVI</strong> <strong>Logistics</strong>, and a brand<br />
new picture database.<br />
In tHe <strong>HAVI</strong> LogIstIcs pIcture dAtABAse<br />
journalists and interested members of the<br />
public can view photos showing all aspects<br />
of the company. Picture editors can research<br />
stories here free of charge and download those<br />
photos that have been released for publication<br />
outside the company. The nearly 100<br />
motifs currently available depict all areas of<br />
activity at <strong>HAVI</strong> <strong>Logistics</strong>; the topics range<br />
from corporate culture, customers, design,<br />
environment and services straight through to<br />
transport and logistics. Whether you are looking<br />
for a photo of a truck, a distribution center,<br />
employees or design elements, you can<br />
find the entire <strong>HAVI</strong> <strong>Logistics</strong> World, with all of<br />
its diversity, in the new picture database.<br />
“employee of the<br />
yeAr” coNtest<br />
<strong>HAVI</strong> LogIstIcs estonIA kicked off a special<br />
motivational competition in 2007 – the “Employee<br />
of the Year” contest. All employees of<br />
the company who "consistently perform above<br />
and beyond what their job descriptions require"<br />
are eligible to vie for this award.<br />
tHe IdeA or the contest caught the imagination<br />
of the entire workforce immediately<br />
when it was put forward in 2007 by Janek<br />
Saareoks, Managing Director of <strong>HAVI</strong><br />
<strong>Logistics</strong> Estonia. By creating the award,<br />
Saareoks hoped to create a very special motivation<br />
for high performance that was not based<br />
on monetary rewards but on more personal<br />
incentives.<br />
2008<br />
Janek Saareoks surrounded by the top<br />
performers on his team. First row (from left):<br />
Illi Niinlaub, Eda Siivelt, Gerlin Mets. Second<br />
row (from left): Janek Haljasmets, Mihkel<br />
Mäehans, Ove Vikat, Mart Kahro, Marek<br />
Tamm.<br />
According to the contest rules, every member<br />
of the workforce has a chance to name<br />
three people who are, in his or her opinion,<br />
the best “team players” in the particular department.<br />
The employees' direct superiors<br />
are then asked to comment on the work performance<br />
of the nominees. All the employees<br />
who have received the “Employee of<br />
the Year” award have exemplified exceptional<br />
levels of work performance and displayed<br />
great respect and loyalty toward <strong>HAVI</strong><br />
<strong>Logistics</strong> and their job responsibilities.<br />
tHe worKforce At our estonIAn <strong>HAVI</strong><br />
LogIstIcs company consists of a total of 213<br />
people working in nine departments. Each department<br />
nominates one candidate for the title<br />
of “Employee of the Year.” The 2008 winners<br />
were rewarded with the recognition of their colleagues,<br />
a certificate and even a small party.
The progress of construction work on March 17, 2009.<br />
move to portuGAl’s<br />
fAr North<br />
tHe Huge expAnsIon By our customer<br />
mcdonALd’s in recent years has had tangible<br />
impacts, even in Portugal. Not only has it opened<br />
new restaurants, but also the volume of<br />
goods delivered per restaurant has increased.<br />
These welcome effects took our Portuguese<br />
distribution company to the limits of its capacity.<br />
Supplying 122 Portuguese McDonald’s restaurants<br />
and the Warner Bros. businesses made it<br />
necessary to build a second Portuguese DC.<br />
tHe BuILdIng of tHe new dIstrIButIon<br />
center with a total of 2,620 square meters.<br />
in Canelas in the District of Porto in northern<br />
Portugal began in September of last year. It will<br />
start operations in May with the supplying of 44<br />
restaurants. The average distance from the new<br />
DC to our customer's restaurants is now only<br />
68 kilometers, which is convenient for supplying<br />
the restaurants in the north of the country, and<br />
so in Portugal our <strong>HAVI</strong> <strong>Logistics</strong> trucks now<br />
cover 1 Million kilometers less per year.<br />
tHe openIng of tHe new dc in Porto offers<br />
<strong>HAVI</strong> <strong>Logistics</strong> the opportunity of crossborder<br />
distribution to twelve Spanish restaurants<br />
in Galicia. <strong>HAVI</strong> <strong>Logistics</strong> Portugal and<br />
<strong>HAVI</strong> <strong>Logistics</strong> Spain are currently investigating<br />
the total impact of this solution.<br />
some AdVAntAges of tHe<br />
new dc In porto:<br />
■ Reduction of 44% in the total mile-<br />
ages<br />
■ Closer contacts with each restaurant<br />
■ Punctual transportation, less af-<br />
fected by road traffic<br />
■ Opportunity to react faster in case<br />
of stock recovery and product<br />
replacement<br />
■ More opportunities to develop spe-<br />
cial services (Invisible Delivery)<br />
■ Positive impact on the environment<br />
because of reduced fuel consumption<br />
(318,000 liters less per year).<br />
News in Brief<br />
hiGhly desirAble for<br />
our customer dm<br />
tHe dm BusIness in Austria started in March<br />
2008 (see edition 18) with the delivery of fresh<br />
products for the so-called “Gesunde Pause”<br />
(Healthy Break). Starting with the delivery<br />
of 14 shops in the western part of Austria<br />
in July 2008, <strong>HAVI</strong> <strong>Logistics</strong> Austria now<br />
provides the complete services for 34 dm<br />
stores. Twice a week we deliver an assortment<br />
of around 70 different fresh products<br />
for preparing fresh soups, salads, smoothies<br />
and juices. In December of last year <strong>HAVI</strong><br />
<strong>Logistics</strong> in Austria reported a new record:<br />
the monthly tonnage handled for dm increased<br />
from 54 to 67 tonnes. About 300 deliveries<br />
with more than 28,000 crates were<br />
distributed to our new customer.<br />
And the business continues to expand:<br />
currently a test is underway on the delivery of<br />
bananas in Styrofoam boxes. The dm business<br />
in Austria is extremely successfully. Recently<br />
the manager of a dm store said “thank you”<br />
to our team in Austria in written form: “<strong>HAVI</strong><br />
<strong>Logistics</strong> gets top marks as a distributor. The<br />
driver is always very competent and friendly.”<br />
did you kNow ...<br />
…tHAt in the last five years <strong>HAVI</strong><br />
<strong>Logistics</strong> realized savings of several million<br />
euros for the McDonald’s system?<br />
At tHe end of 1999 a service called “Cle-<br />
an up” was implemented at <strong>HAVI</strong> <strong>Logistics</strong>:<br />
since then this service has been extended in<br />
close cooperation with McDonald's, our European<br />
Distribution <strong>Center</strong>s and suppliers.<br />
Since 2004 Clean up has been offered as<br />
a dedicated service to the McDonald’s sys-<br />
tem and has proven to deliver significant<br />
benefits. The function of Clean up is to seek<br />
continuously for overstocks in our <strong>HAVI</strong><br />
<strong>Logistics</strong> DCs. The available overstocks are<br />
reported using communication platforms<br />
such as McNet and A-lex. In this way poten-<br />
tial buyers can be identified within the<br />
McDonald’s system. All relevant parties are<br />
involved during the re-selling of the overstocks.<br />
The purchasing company pays the<br />
19<br />
13 tons on average is the weight of such a digger.<br />
A heavy burden for the forwarder, but no-brainer<br />
for our Freight Manager S.T.I.<br />
customer sAtisfAct-<br />
ioN is our GoAl<br />
our freIgHt mAnAger s.t.I. has been organizing<br />
the most varied transport services for its<br />
customers using the most different routes for<br />
over 25 years now. No matter whether these<br />
transports go overland, by sea or by air,<br />
S.T.I. always provides the same outstanding<br />
quality. The company even makes an excellent<br />
job of tricky orders such as transporting<br />
350 tonnes of mining equipment to Turkey,<br />
exercise machines from the Far East to<br />
Germany, and 400,000 kilograms of frozen<br />
Chicken McNuggets for McDonald’s Japan.<br />
customer sAtIsfActIon Is ALwAys<br />
top prIorIty for our Freight Manager – it is<br />
absolutely essential to effective quality management.<br />
In 2001 S.T.I. had its TQM certified<br />
as meeting EN ISO 9001. In fact S.T.I.<br />
can boast that several months ago it was<br />
recertified for the second time according to<br />
the stringent requirements of the European<br />
industrial standard. Are we going to rest<br />
on our laurels? Or sit back and relax? Not<br />
at a <strong>HAVI</strong> <strong>Logistics</strong> company! S.T.I. recently<br />
tackled the next challenge head-on and<br />
assisted a German importer of construction<br />
machinery in procuring four diggers.<br />
Our Freight Manager, a specialist in customs<br />
clearance, took care of all the paperwork<br />
for the front-end loaders in Rotterdam’s harbor.<br />
The extremely satisfied customer was<br />
then able to transfer the heavy goods onto<br />
a gooseneck trailer by itself.<br />
same price as if it had bought the stocks<br />
directly from the supplier. Additional costs<br />
(e.g. for transport, customs duties, labels,<br />
etc) must be carried by the selling DC.<br />
At tHe end of 2008 the Clean up service<br />
celebrated its fifth anniversary of hard work<br />
and common, dedicated effort. Today we are<br />
proud to report: in the last five years we have<br />
realized a total 7.2 million euros in savings for<br />
the entire McDonald’s system.
20<br />
dc exteNsioN iN AustriA<br />
to Keep pAce wItH tHe rApId growtH of our<br />
customer McDonald's all over Austria, <strong>HAVI</strong><br />
<strong>Logistics</strong> has expanded its Austrian Distribution<br />
<strong>Center</strong>. The extension will be completed<br />
in April of this year.<br />
tHe constructIon pHAse started in<br />
August 2008. Not for the first time <strong>HAVI</strong><br />
<strong>Logistics</strong> had undertaken to build an extension<br />
at one of its European Distribution <strong>Center</strong>s<br />
with operations still in full swing. In the<br />
case of our Austrian-based company 2,200<br />
sq.m. of floor space have to be built while<br />
customers’ goods are being picked up,<br />
loaded and delivered - all with the reliability<br />
customers have come to expect from <strong>HAVI</strong><br />
<strong>Logistics</strong>.<br />
[1]<br />
As ALreAdy mentIoned in the last edition<br />
of alphabet, we are currently in the process<br />
of coordinating the roll-out process for all<br />
<strong>HAVI</strong> <strong>Logistics</strong> companies. In the upcoming<br />
editions of alphabet we will inform you of<br />
further developments concerning the next<br />
steps we are taking to become a unique<br />
global brand.<br />
News in Brief<br />
[2] [3]<br />
This is what the skeleton of the building looked<br />
like in September 2008. Only two months later<br />
the new dry warehouse was ready for our team<br />
in Austria to move in. Once installed, <strong>HAVI</strong><br />
<strong>Logistics</strong> continued its order-picking activities<br />
in the new surroundings without batting a proverbial<br />
eyelash.<br />
[4]<br />
re-branded companies in europe<br />
The old ambient warehouse adjoining the<br />
new building was torn down without closing<br />
down operations at the site. A new<br />
frozen goods warehouse is now being built<br />
on the same spot.<br />
Setting-up the shelving: together with the<br />
previous frozen goods area, the new extension<br />
includes a new 2,000 sq.m. warehouse<br />
for frozen products. There is still<br />
a lot of work to be done before the new<br />
warehouse can be commissioned as planned<br />
in April 2009!<br />
date country New Name former Name<br />
01.04.09 SE <strong>HAVI</strong> <strong>Logistics</strong> AB Scandlog AB<br />
16.02.09 DK <strong>HAVI</strong> <strong>Logistics</strong> ApS Danlog ApS<br />
28.01.09 BE <strong>HAVI</strong> <strong>Logistics</strong> BVBA MLS N. V.<br />
20.01.09 NL <strong>HAVI</strong> <strong>Logistics</strong> B. V. MLS B. V.<br />
15.01.09 NL <strong>HAVI</strong> <strong>Logistics</strong> Environmental ESM BV<br />
Services B. V.<br />
12.01.09 NL <strong>HAVI</strong> <strong>Logistics</strong> IS B. V. Alphasoft<br />
29.12.08 PT <strong>HAVI</strong> <strong>Logistics</strong> Lda. DC Bens<br />
23.12.08 LT <strong>HAVI</strong> <strong>Logistics</strong> UAB Logislita UAB<br />
01.12.08 ES <strong>HAVI</strong> <strong>Logistics</strong> FSL, S. L. LINK Servicios Logisticos S.L.<br />
01.12.08 IT <strong>HAVI</strong> <strong>Logistics</strong> s.r.l. Italog s.r.l.<br />
01.12.08 NO <strong>HAVI</strong> <strong>Logistics</strong> AS Loginor AS<br />
21.11.08 EE <strong>HAVI</strong> <strong>Logistics</strong> OÜ Baldis Estonia OÜ<br />
03.11.08 PL <strong>HAVI</strong> <strong>Logistics</strong> sp. z o.o Logpol sp. z o.o<br />
03.11.08 FI <strong>HAVI</strong> <strong>Logistics</strong> Oy MD-Scand Oy<br />
15.10.08 CZ <strong>HAVI</strong> <strong>Logistics</strong> Shared Services s.r.o. new company<br />
09.10.08 DE <strong>HAVI</strong> <strong>Logistics</strong> GmbH WLS GmbH<br />
20.08.08 EU <strong>HAVI</strong> <strong>Logistics</strong> IS GmbH amigon GmbH<br />
27.07.08 EU <strong>HAVI</strong> Global <strong>Logistics</strong> GmbH Alpha Management GmbH