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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

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