English - DFDS

40 Customer Focus
DFDS annual report 2009
Freight Sales
solutions / FSS
n Market shares increased in several industries
n Large potential in the increasing frequency of major
corporate agreements
n Ongoing adaptation of the sales organisation to
the network strategy
Freight Sales Solutions (FSS) is a joint sales function that services major
customers with transport solutions that cut across business areas
and regions. FSS is also responsible for developing shipping logistics
solutions matching the growing requirements from large freight customers
with increasingly complex supply chains.
FSS’ activities are based on a key-accounts concept, which ensures
co-ordinated sales activities for major customers. In 2009, the portfolio
of large customers accounted for approximately 25 % of total group
revenue from freight-related business. FSS also operates a number of
Commodity Teams that collate and process information, expertise and
insight into the transport needs of selected industries. This knowledge
is used to generate additional sales and to develop new services
targeted at individual customers. In addition, strategic plans with a time
frame of one year are drawn up for each major customer.
FSS focuses on transport requirements in the following industries:
n Passenger vehicles, trucks, buses, etc. (Autologistics)
n Forestry
n Chemicals
n Steel
n Project cargo
n Trailer and container operators
FSS is responsible for joint marketing of the Group’s freight services,
and for drawing up and co-ordinating tenders for large-scale transport
solutions. It also organises seminars and conferences for the purpose
of enhancing skills and improving internal co-operation among keyaccount
managers in the different business areas. The latter further
underpins the sales organisation’s shift in focus from individual routes
to a network-based approach.
Forestry: DFDS’ paper-industry customers operate primarily
in Sweden and Norway. Volumes on the Swedish market slightly
increased in 2009, despite a general fall elsewhere. Producers of
packaging for liquids and other niche products made the most
progress. On account of market conditions, sales work was mainly
directed at retaining existing customers, with some new customer
accounts added.
Chemicals: Chemical production fell in 2009 following weak
demand in H1, although H2 was characterised by an upward
trend. Changing market conditions led to the closure of production
facilities in Europe, which meant that volumes from transporters
of powdered and liquid chemicals fell by approximately
30 % and 15 % respectively. DFDS’ chemical volumes were reduced
by around 8 % in 2009.
Steel: The steel market was charaterized by a scaling-down
and reduction of production and capacity, including the closure of
facilities, due to high stock levels and declining revenues. Around
the middle of Q3, the market began to recover and activity levels
rose again. This trend is expected to continue in 2010.
Project cargo: DFDS handles project cargo (large, odd-sized
loads) by sea and road. These activities are concentrated in
regions linked to the port terminals in Rotterdam (Holland) and
Immingham (UK). In 2009, the multi-terminal at Maasvlakte, Rotterdam,
increased its order book, including loads with less dependency
on shipping.
Trailer and container: The primary focus of sales work in this
segment was to generate organic growth through existing large
trailer operators with widespread traffic flows in Continental Europe,
Scandinavia, the Baltic states, Russia and the rest of Eastern
Europe. Collaboration with these customers included adjusting
freight rates on individual routes to support network-based solutions
for each major customer and for DFDS as a whole. This has
also contributed to developing internal co-operation between
business areas and their activities.
GROUP MANAGEMENT
Industry trends 2009
Automotive: In 2009, the volume of vehicles transported in the shipping
market fell by approximately 30 %, with the biggest reduction in
heavy vehicles. The fall in DFDS’ volumes was approximately 25 %, with
a particularly negative impact in the Baltic states and Russia, implying
a rise in DFDS’ market share in 2009. The decline in volume was
greatest in H1, with higher activity in H2 where several new contracts
were signed with leading automobile manufacturers in Europe, also as
a result of closer contact with markets and customers.
RO-RO
SHIPPING
CONTAINER
SHIPPING
PASSENGER
SHIPPING
FREIGHT SALES SOLUTIONS
GROUP FUNCTIONS
TERMINAL
SERVICES
TRAILER
SERVICES