DRIVING INTO FUTURE WORLDS - Media – HAVI Logistics

media.havi.logistics.com

DRIVING INTO FUTURE WORLDS - Media – HAVI Logistics

No.20

July 2009

news from HAVI LogIstIcs

sHoWing a strong Face

Havi group anD its

tHree pillars

WorlDWiDe

our neW customer

pizza Hut

exceeDing all

expectations

Driving into Future

onWarDs to neW Horizons

WitH our innovations

WorlDs

The Global Lead Logistics Provider


02 Editorial

DoiNg somethiNg DiffereNt

InnoVAtIon Is tHe mAIn topIc of this edition and

also one of our most important and challenging

management topics. It is important because in

our competitive environment being “cutting edge”,

meaning being innovative, is a prerequisite for a

long term sustainable organization.

HAVI LogIstIcs ALwAys LIstens mIndfuLLy

to Its customers. We know their needs very

well, and we were already aware of that when

our company was founded 28 years ago. Our

company's founding was the result of a business

idea that was brilliant precisely because it

was simple, but brought a quantum leap in customer

benefit. Instead of supplying frozen

goods separately from the non-frozen products,

we delivered them all together using vehicles

with separate sections for goods at different

temperatures. That made the logistics for the

restaurants both simpler and more efficient. This

superior concept was innovative at that time

and is innovative even today. What we call today

“One Stop Shopping” is still the basis of our

customers’ benefit. Of course since that time

we have not rested on our laurels but rather developed

further innovative concepts like for instance

Ecosima or WebLog.

table of coNteNts

our InnoVAtIons Are bAsed on A stAbLe

foundAtIon - our incomparable Corporate Culture*

which is and will remain also “cutting

edge”. We are open-minded about new ideas

and have a common and clear understanding

of what successful innovations are. We are encouraged

to develop a sense of passion for innovation

that delivers tangible results: our multi-temperature

trucks, our double-deck trucks

and our Food Town concept are innovations increasing

the efficiency in our customers’ entire

supply chain. GAuDi, and for instance Pool&Push

as service innovations, together with our innovations

in environmental protection like using

biodiesel or “freezing with the sun” conclude the

picture of a “cutting edge” organization.

doIng sometHIng dIfferent is the common

element of all our examples of successful innovation.

They can have totally different sources of

innovation but the result of innovative ideas is always

the same: increasing the performance of

our services, increasing the efficiency four our

customers, or both of these at the same time.

coVer story: InnoVAtIons/future worLds 03 I Fishing in an ocean

of ideas 04 I 05 Learning from the future 06 I 07 Interview with Jörg

Erdmann 07 Rich in ideas

worLdwIde 08 I 09 Showing a strong face worldwide

compAny news 10 Wonderful new world 11 Stars of Germany I

GAuDi on the go, Germany-wide

new customers 12 Exceeding all expectations! 13 It’s our

pleasure! I Looking forward to the next Million!

enVIronment 14 Great climate in Norway I Successful recertification

according to ISO 14001 and 22000 15 Brand-new service for

McDonald’s Belgium I Further environmental services 16 Hats off to

our Turkish Top Performer! I Icy innovation

HumAn resources 17 Getting prepared for the future I Make an

impact!

news In brIef 18 New DC for Northern Italy I HAVI Logistics

Managers of the future 18 I 19 Construction work in Duisburg

19 Team spirit inside 20 A great inventor retires I Duisburg, we have

a problem I Did you know ...

In this issue you can find out about many exciting

HAVI Logistics innovations!

Luca Gnecco,

Chairman and CEO, HAVI Global Logistics

*A reprint of the HAVI Logistics guideline to Corporate Culture was already presented at the European

Management Meeting in June.

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

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

imprint

Proprietor: HAVI Global Logistics GmbH

Publisher: Christoph Thünemann

content and style editor: Jasmin Schürgers

HAVI Global Logistics GmbH, Geitlingstraße 20,

47228 Duisburg, Germany

Phone: +49 (0) 20 65 695 258

Fax: +49 (0) 20 65 695 252

Email: info@havi-logistics.com

http://www.havi-logistics.com

Publisher council: Luca Gnecco, Haluk Ilkdemirci,

Hans-Werner Krohn, Sven-Carsten Sachse

layout: Simone Lenth, denkmalfrei, Philosophen-

weg 12, 47051 Duisburg, Germany

Printer: Druck-Service Weirich GmbH, Industrie-

str. 17, 41564 Kaarst, Germany

This and the following editions would not be realized

without the great help of our HAVI Logistics

members and all the other System Players.

Thanks in advance for sending interesting topics

to be published in future.


Cover Story

fishiNg iN aN oceaN

of iDeas

“The Innovators are the people who drive the national economy.” According

to the Austrian economist Joseph A. Schumpeter (1883-1950), innovation i.e.

entrepreneurial thoughts and actions is the very heart of the economy, and in particular of a modern economy.

However, the topic of innovation is much more varied and exciting than Schumpeter's definition might suggest.

tHe term “InnoVAtIon” is derived from the

Latin word “novus” (“new”). Schumpeter

greatly influenced the meaning of the term

“innovation” as we use it today in the sense of

technical and economic development. Among

the general public innovations are principally perceived

as new products. Yet there is a lot more

innovation that the public never sees, deep inside

companies things such as process innovations,

application innovations and innovative

forms of organization. So far

no one has come up with a

concrete definition of innovation,

yet the impact that

innovations have on the

economy is plain to see: innovation

brings innovative

companies, the innovators

themselves, a brief monopoly

and an associated

“pioneer’s dividend.” That is

the innovators enjoy a financial

advantage arising from

the new development and

maybe also higher productivity,

or an advantageous

position on the market.

Joseph Alois Schumpeter

(February 8, 1883 January

8, 1950) was an economist

and political scientist born in

Austria. He popularized the

term creative destruction.

A few exAmpLes of HAVI LogIstIcs InnoVAtIons

tHe economy of tHe future wILL be An

“InnoVAtIon economy.” This is generally accepted

today. Schumpeter gave new meanings

to the terms “innovation” and “innovator,” according

to which innovation is the application

of a new technical or organizational development,

not just its invention. Economic success

will depend primarily on whether companies are

in a position to create new products, ideas and

procedures, and to adopt innovations rapidly. In

other words, today companies already

need most of all the ability ″to anticipate

future trends and to shape them

themselves as far as possible. Here

we find Schumpeter's famous idea of

a “process of creative destruction.”

This means that every economic development

builds on creative destruction.

The destruction of old structures

again and again leads to the reshuffling

of the factors of production. So

destruction is necessary for reorganization

to take place. Companies therefore

have to make a conscious investment

in researching trends and

future developments and possibly also

expand their own capacities to do so.

03

“InnoVAte, AdApt or dIe!” Those who do not

create innovations themselves or react to them

fast, will disappear. Innovation is regarded as the

universal key to more growth. And in the long

term it is actually the only key, because everything

else is limited: the ground, the material,

capital and people’s working time etc.

Knowledge, however, is available to everyone.

All of us can use it without causing detriment

to anyone else. This special fact allows

the economy to grow over the long term and

not to fail when resources get scarce. But will

human beings always go on developing enough

knowledge for the global economy to continue

growing? Innovators are often compared to fishermen

fishing in an ocean of ideas. There will

always come a time when it gets more difficult

for them to find new ideas because the seas

eventually become empty. The optimists, on the

other hand, maintain that knowledge generates

new knowledge. They say that every innovation

is in some way a combination of existing ideas.

And the more of them there are, the greater

the chances of coming up with new combinations

of ideas.

1981 Even the foundation of HAVI Logistics was itself an in-

1982 The commission for developing a tailor-made

novation on the European logistics market: McDonald’s

distribution and business software and the in-

commissions us to take over the complete distribustallation

of suitable computers goes to Kissels

tion of frozen, chilled and ambient goods at that time a

GmbH. The seminal Kissels software com-

unique concept in Europe. Right from the beginning, HAVI

prises order management, receipt of goods,

Logistics established standard costs accounting, which is

warehouse accounting and financial accounting,

otherwise rare in the food industry, as an important instru-

ordering and above all standard costs accountment

by introducing the goods clearing account.

ing to ensure transparent trading.


04 Cover Story

learNiNg from the

future

HAVI Logistics' success today has its origins in the innovations of the past. Customer

benefit has grown out of the innovative services that we have been driving forward

for the last 28 years. But is this sufficient for the future? Does it represent a quantum jump in customer benefit?

Where does the innovator HAVI Logistics stand today?

If we tAke A Look at HAVI Logistics from

the perspective of our customers, what do we

see? We see that our business model is very

well received and our customers feel that we

understand them. HAVI Logistics brings them

additional value, i.e. customer benefit. We do

not burden our customers on the contrary,

we do everything to relieve them of burdens.

In order to carry on doing this in the future,

we also have to continue being innovative and

always generating new benefit, new ways of

adding value, and changes for our customers

all in the shortest possible time. This is the

only way that we will be able to ensure the

existence of our company.

What happens if a company fails to innovate?

One such example is the German company

Dual. Dual became Germany's market

leader with its record players and electronic

entertainment devices. That was way back.

In 1982 Dual went bankrupt. The traditional

company, born out of innovation in the year

1906, was no more. What had happened?

Dual had failed to move with the times. Record

players were replaced by CD players.

Today we are right in the middle of a process

of change that has even caught up

with CD players. Now we get downloads

from the Internet. I-Pods and MP3-Player are

in demand and change will continue apace.

tHe competItIon Is not sLeepIng on

tHe job and so even HAVI Logistics is not

being spared. The world around us and the

demands of our customers are changing all

the time. Our task is therefore to continually

extend the lifecycle of our service portfolio

through innovation. Coming to a standstill

or always looking in the rear-view mirror

however pleased and proud we are of

our past achievements is not going to help

us here and now. Hermann Kahn, an American

cyberneticist and futurologist, once said,

“Anyone can learn from

the past. Today the point

is to learn from the future.”

Here is an example of how it works: PCs

have conquered offices all over the world, making

typewriters a thing of the past. Many typewriter

manufacturers went bust but not

IBM. Why not? IBM recognized the potential

of the PC. Together with Microsoft DOS, Windows

and Word, IBM contributed to its resounding

success. IBM carries out active lifecycle

management. IBM is still going strong!

If HAVI Logistics wants to remain in the competition

in the long term, we will have to do

what IBM does. We have to look for new, innovative

services, processes, systems and

structures all the time. But the key point is

that we should look only for those that offer

our customers a greater benefit than what is

currently available on the market.

but wHAt Is customer benefIt? Customer

benefit can be seen in three dimensions:

time, costs and quality. As an innovator,

HAVI Logistics is working on precisely these

aspects. We keep on questioning how our processes

and services can save our customers

1988 Together with the McDonald's 1991

In cooperation with a vehicle

1996 HAVI Logistics in Switzerland devel- 1997 ILOS arrives. The new busi-

suppliers FSB Backwaren

manufacturer, HAVI Logistics in

ops the “mobile concept.” A special ness software replaces Kis-

and Esca Food Solutions,

Austria develops a special short

swap body designed as a truck body sels after 14 years. The new

HAVI Logistics puts the first

trailer with a steerable rear

enables the driver to load a container system developed in-house

Food Town in Europe into

axle. This technical innovation

from a railroad car onto his truck

is implemented as a standard

operation. Today HAVI

enables us to deliver even to

single-handed. A crane is no longer at HAVI Logistics, largely har-

Logistics is a partner in ten

restaurants in inner-city areas

needed. This environmental friendly

monizing the ERP application

European Food Towns.

without any problems.

solution saves time and money.

right across Europe.


time and make their processes faster. One way

we do this is to use Ecosima (Economic Store

Inventory Management Assistance introduced

in 2005). When it comes to quality, the

important thing is how our customers perceive

our services. By introducing Pool&Push

in 2005, for instance, we have created innovation

in promotion management. This has

considerably improved the key feature the

customer benefit of our services. The customers

no longer have to do the ordering. We

have relieved them of that burden. And HAVI

Logistics' outstanding IT generates added

value for our customers, while also giving

us the opportunity of expanding our

horizons. The best example is the development

of SCR (1999), which is now being

used worldwide as Version 5. Such IT systems,

which not only contribute to increasing

transparency along the whole supply

chain, but also contain highly advanced business

intelligence solutions, are crucial requirements

for the provision of our "all in one" services

as “The Global Lead Logistics Provider”.

So customer benefit arises from and

through innovations. And for HAVI Logistics,

innovations in their turn have two general types

of effects: indirect or direct effects. To us, "indirect"

means that we search internally for new,

innovative ways of finding solutions relating to

our own business system. This means that we

must keep on asking ourselves the question of

whether the service we offer today indicates

the direction for the future. To this end, we regularly

check up on our workflows, systems,

structures and the resources we use, such

as DCs and trucks. Innovations with "direct"

effects, on the other hand, create innovation

in the customer's processes. They affect the

customer's business system directly. This is

how GAuDi (2009) works, for example.

HAVI LogIstIcs Is “tHe gLobAL LeAd

LogIstIcs proVIder”. We plan, steer, control,

and create innovations in the goods, information

flows and finance streams for our customers.

We continually optimize the logistics all

the way from the supplier to the customer. In

doing so we keep on asking and answering this

one question: how do we come up with innovations

that improve customer benefit all along

1999 SCR (Supply Chain Release) is

developed. SCR is an extensive

software package including

ILOS as a solution for the

operating business processes

and also covering the areas

of requirements planning and

business intelligence.

Cover Story

the supply chain? That

consequently increase

the competitiveness of

our customers? HAVI

Logistics has three separate

"think tanks:" a basic

tank, a new-ideas tank, and

a development tank. The basic

tank contains our

current portfolio of

services, which

has been developed

from the innovations

of the past.

The new-ideas tank

is full of services for

which the initial development

work has

largely been completed.

They are

either service innovations

with direct

effects, such as Invisible

Delivery (developed

in 2005), or those

with indirect effects, such as Tracking &

Tracing (2005). Both of these services have

enabled us to increase customer benefit and

improve our customers’ competitiveness. These

innovations secure our survival in the short

term. The development tank contains innovation

measures that are still at the testing stage.

They are intended to form the foundation for

our future potential success. All the ideas and

innovations are passed on to the various HAVI

Logistics companies. The Center of Competence

(CoC) Operations was created especially

for this purpose.

The CoC is a “special unit”

within HAVI Logistics.

The team has the strategic task of continually

filling these three tanks by means of

innovation processes and assisting with the

implementation of new ideas. The foundation

for this includes examples of best practices.

If a HAVI Logistics company has resolved

a problem particularly efficiently, the CoC

Operations makes sure that this good example

is passed on to all other HAVI Logistics

companies. If it turns out that the idea will be-

nefit many companies, it

can even be declared an international HAVI

Logistics standard. This is what happened with

the HAVI Logistics probe thermometer, which

transmits the temperatures it measures via an

infrared connection to a small, portable printer

that then prints the labels on self-adhesive,

colorfast paper.

Whether HAVI Logistics success-

fully turns out innovations is

determined solely by the compa-

ny itself.

wItH our InnoVAtIons we secure our

future VIAbILIty in a constantly changing

world. We are aware of the major barriers and

requirements for successful innovation management.

HAVI Logistics would like to make

its customers' business easier, better and

more efficient through our services. The key

qualifications of HAVI Logistics employees include

the ability to shape the future by means

of innovative ideas and to continually question

day-to-day aspects. The high quality that HAVI

Logistics' customers put their trust in grows

out of this commitment, this “internal team spirit”

maxim. Ultimately this is where the future

of HAVI Logistics is decided.

2000 HAVI Logistics introduces biodiesel made from 2001 Introduction of WebLog. The McDonald's

rape seed oil. First of all, the whole German

Restaurants can work on their order proposals

fleet is converted to the new organic fuel. Other

via the McDonald's Internet and then send

HAVI Logistics countries follow successively.

them back as orders, and in addition they can

That was the largest environmental project at

post their goods received from the WebLog to

any time in the history of HAVI Logistics. The

the RDS system. Furthermore, WebLog offers

trucks are regarded as the most environmentally

our customers a function for writing emails to

friendly in Europe.

the HAVI Logistics sales department.


06

iNterview with

Dr. Jörg erDmaNN

Anyone who develops ideas into innovative

services that bring the customers business advantages

will stay ahead of the competition. Not least for this reason is the topic of innovation of huge importance

to a company like HAVI Logistics. Jörg Erdmann (JER) is Vice President Business Development & Innovations

at HAVI Logistics. He focuses both on our new customers and on maintaining our competitiveness.

alphabet: What is the situation regarding our

ability to innovate as a pre-requisite for growth

and market success?

jer: Our business with McDonald's has set

standards. I don't know any other organization

of this size who leave the implementation of

their supply chain to a logistics service provider

as consistently as McDonald's does with

us. Only customers who truly believe in their

concept and work hand in hand with a service

provider they trust implicitly can do this.

We take our customers seriously and realize

our agreements with them reliably and in high

quality. However, where there is light, there is

obviously also shadow.

alphabet: And where exactly do you see the

shadows?

jer: Let me use an image to illustrate what I

mean. Monocultures bring great benefits over

a long period of time, until they are suddenly

attacked from the outside and collapse because

they are not resistant enough. They can

no longer react appropriately to external influences.

The simple solution for us is to open

up consistently to more new customers. This

will strengthen our customers and ultimately

ourselves as well.

alphabet: Do we offer the same portfolio of services

to all HAVI Logistics' customers?

jer: That would be impossible. Convenience

stores, for example, have a completely different

type of business than our customer

McDonald's. All the customers have different

structures and our work with them must prove

itself over several years, until mutual trust has

created a close partnership, and with it a deep

level of integration. But we give our ideas and

Interview

our concept a particular orientation precisely

because of these different requirements. That

is real innovation.

alphabet: How do we do that?

jer: By listening to our customers. HAVI

Logistics works in close contact with its customers

and that makes us successful. We

are different than Apple or Xerox, for example,

who aim for product leadership and operate

huge research facilities with massive innovation

processes. However we create great benefits

for the customers through our Customer

Intimacy strategy. Customer Intimacy aims to

treat all customers individually and show them

that they can have a greatly simplified service

process. We see ourselves as our customers″

backbone, and as a logistics service provider

we assume the responsibility for their success.

I see this happening again at the new customers

such as BP and IKEA, and also in current

acquisitions. Even if changes at the customer

are not always easy, we have the strong will to

help our customers and continually make improvements

in their business by providing our

support. Our basic concept for all our customers

is always very similar and this is also

very important. However, every customer poses

different challenges for us. If we can do

an excellent job of meeting these challenges,

we are innovative.

alphabet: Could you give us a couple of examples?

jer: BP, for example, would like to control its

own supply chain in the future. However, even

after cutting the ties to wholesalers, BP must

still be able to purchase supplies at favorable

prices. Here we look for ways and means

of supporting our customer. The situation

with IKEA is different again. In this case

the challenge is to provide the logistics

for each national assortment and the

globally standardized international assortment

simultaneously. On the other

hand, IKEA has no problems with limited

storage space at its stores. In turn

nearly all restaurant chains meet these

challenges, but here our Invisible Delivery

concept really comes into its own.

alphabet: And what does HAVI Logistics

internal ability to innovate look like?

jer: We have to learn to cope even faster

with changes that the customer does not

notice directly, but which are important for our

internal structures and processes. We are on

the way to becoming a company with several

strategic customers in each country. That requires

even more standardization of internal

workflows. At the same time we must systematically

make our best practices - that

have been successfully introduced in one

country - available to other HAVI Logistics

companies, too. And we have re-oriented

our Center of Competence (CoC),

which belongs to HAVI Logistics Operations,

precisely on achieving this goal.

The CoC team supports the Business

Process Sponsors for Trade, Transport

and Warehouse in the preparation of important

standardization projects. Moreover,

the CoC is also keeping an eye open for best

practices in the various countries where HAVI

Logistics operates, and passes them on to

where they are needed. Innovations are only

successful if they are implemented as widely

as possible.

2001 The HAVI Logistics double-deck trucks' 2002 The complete fleet of HAVI 2005

HAVI Logistics introduces Ecosima and develops “Invisi-

new construction with single wheel sus-

Logistics in Austria is conble

Delivery.” Economic Store Inventory Management Aspension

offers greater capacity that can be

verted to AME biodiesel.

sistance (Ecosima for short) standardizes all the processes

utilized in the best possible way due to the

This fuel is a methyl ester

in the customers' warehouses. The practically identical

separation of two temperature-controlled

made from used cooking oil

organization of the shelves in every restaurant and the

loading levels: the upper one takes large-

from McDonald's Restaurants.

labeling of the positions on the shelves with pictorial labels

volume, lightweight goods, while the lower

are prerequisites for the success of Invisible Delivery, HAVI

level is for small, heavy loads.

Logistics' system for delivering and shelving goods.


alphabet: What are the plans surrounding

the topic of innovation for the

coming years?

jer: At this time the CoC is concentrating

strongly on Trade, Warehouse

and Transport. The team is going to

draw up a structured analysis of the

most important overarching ideas.

The analysis will aid the preparations

for actually implementing the

ideas and also for adapting those

ideas that have already been successfully

realized in certain HAVI

Logistics countries. There

is some latent potential

here. Wherever we

already have a firm

grip on ″mature″

ideas, we want

to support HAVI

Logistics employees

in a consistent

and structured

fashion as

they develop new

ideas.

alphabet: What innovations do you value and

enjoy as a private person?

jer: Basically I think that we should not be

trying to re-invent the wheel. I value improvements

that make things simpler or more enjoyable.

Very often these days wine tastes better

than it used to, guitars produce a better

sound, and surfboards and sailing boats are

now much easier to build and sail.

Interview 07

rich iN iDeas

2005 The HAVI Logistics Tracking and Tracing

2007 Photovoltaic technology is an environ- 2009

system is an IT innovation resulting from

mentally friendly alternative for generat-

EU Regulation 178/2002. As food safety

ing electricity. HAVI Logistics adopts

is top priority at HAVI Logistics, we took

this eco-innovation. In our Spanish-

decisive action. Together with a Danish

based Distribution Center we "freeze

software house, we developed the HAVI

with the sun," since we have been us-

Logistics' traceability solution.

ing 70% of the energy we get from the

sun to run our deep-freeze stores.

There’s no future without the

relentless pursuit of innovation.

This long-standing belief is even more important today in view of the current

state of the local and global economy. Ideas from committed employees are

one of the most important factors in triggering and implementing innovations.

HAVI Logistics in Italy started to exploit this important resource long ago and

consistently rewards employees for good ideas.

tHe IdeAs submItted by empLoyees are collected in a database set up

especially for this purpose. They are then evaluated by a five-member Innovation

Team in order to measure their real effectiveness and their potential to produce

a considerable economic and quality improvement for HAVI Logistics and all our

customers. An idea whose implementation appears to be realistic and beneficial

is rewarded monetary. If the Innovation Team decides that the proposed idea merits

testing, the employee receives an additional payment. Finally, HAVI Logistics

Italy is willing to pay for any idea that is put into practice after testing. At the end

of December 2008, 42 of the 150 ideas typed in the Idea Management database

were deemed as innovative and rewarded. At present the database contains a

total of about 200 new ideas. Among these ideas is one that has received strong

appreciation from McDonald’s Italy:

tHAnks to HIs experIence with the Field Service,

Gianfranco Carrabetta understood that the management

of salads inside restaurant cells could be improved. He

asked several local artisans to create a very simple “dolly”

on wheels into which the salad boxes fit exactly. A

trial of the new dolly was held at several McDonald’s restaurants

that had volunteered; within a few months

more than 40% of the Italian McDonald’s restaurants had

requested it as a standard product to be ordered from

HAVI Logistics Italy. This innovation has advantages for McDonald’s crew in

terms of picking time reduction and best FIFO management and for restaurant

construction in term of a reduction of chilled space

requirements. Sometimes simple ideas create major

advantages!

:

tHe IdeA mAnAgement carried out by our

team in Italy is a good example of HAVI Logistics' efforts to ac-

cept suggestions for improvement put forward by our employees.

“Listen more actively to the employee’s requirements

and suggestions for improvement.”

At this year's European Management Meeting, the top management of

HAVI Logistics defined Idea Management as an important point to be evaluated

by employees in our Employee Satisfaction Survey (see also page 17). Efficient

Idea Management is a good way to mine the lode of valuable ideas in the

heads of our employees. In this context, HAVI Logistics, as "The Global Lead

Logistics Provider," can only win and secure its long-term growth. To guarantee

Idea Management on a European level, our CoC Operations is responsible

for collecting ideas with a group wide focus. With its open-minded approach

CoC Operations supports the process of turning good ideas into practice.

GAuDi roll-out. HAVI Logistics takes on total responsibility

for the McDonald's supply chain. This comprises

automatic delivery to the restaurants of all materials, receiving

and shelving all the goods required in a restaurant

in accordance with the FIFO principle, inventories

and warehouse optimization. Restaurant employees

can now concentrate fully on their core competencies.

(Please read also the article on page 11)


08

Worldwide

showiNg a stroNg face

In 2002 HAVI Logistics made

worlDwiDe the transition from a strong

European organization to a Lead Logistics Provider that is perfectly

positioned worldwide. What had happened? The U.S. company

HAVI Group, LP took over most of the shares in our company and

thus paved the way for us to become the unbeatable successful

logistics partner we are today. Together with two further pillars

of our main shareholder, HAVI Logistics looks back on a

successful history and forward into an extremely

promising future.

HAVI group HIstory: wHere It ALL begAn

In May 1974 two men, Ted

Perlman and Bob Rocque, decided to form a company to respond

to the needs of the McDonald's restaurant system. Later that

same year, the HAVI Group built Perlman-Rocque Lemont, its first

permanent facility dedicated to providing distribution services to

McDonald’s restaurants in the Chicago metropolitan area. The

origin of the name derives from a joint effort as well.

Since then HAVI has brought its operations up to a global scale.

The company is comprised of fully functioning divisions specializing

in logistics, distribution, food processing, packaging and administrative

services, and promotional marketing. HAVI Group, LP strives to

provide high-quality value-added services to its customers.

tHe compAny’s pHILosopHy

HAVI is a group of companies which strive to succeed by maximizing

every individual’s potential in a positive work environment. As a group, our

objective is to satisfy our customers and profitably grow our business while

practicing ethical behavior. We will continue to prosper by embracing these

principles while being sensitive to the cultures and diversity of those with whom

we interact as a growing international company. Above all else, we will always

“Deliver the Promise.” theodore f. perlmann Chairman and CEO HAVI Group, LP.

tHe HAVI compAnIes: our experts In tHe fIeLd

The global business environment is ever changing. In order to successfully

“Deliver the Promise” to our global customers, the HAVI Group, LP has

a structure comprising four main companies: HAVI Global Solutions, HAVI

Logistics, HFS North America and The Marketing Store.

get to know tHe mArketIng store

The Marketing Store is one of the world’s largest privately held integrated marketing

communications companies. Acquired by the HAVI Group in 1998, the company has over

800 employees in 12 offices on five continents. The Marketing Store’s Mission is “to harness the

creativity of all of their people to deliver great ideas that bring the spirit of their client’s brands to life.”

It is with this mission in mind that The Marketing Store strives to be the best idea company in the world.

get to know HAVI gLobAL soLutIons

www.themarketingstore.com

HAVI Global Solutions is a dynamic, growing, customer-focused enterprise dedicated to providing leadership,

innovation and a sustainable competitive advantage in Packaging, Strategic Sourcing, Promotions Management, and

Supply Chain Analytics and Integration solutions for our customers. The Mission at HAVI Global Solutions is to be the

customers’ expert partner in managed supply chain solutions delivering value and growth from source to consumer.


www.havigs.com

www.hfsnorthamerica.com

HAVI comes from Harriette and Vivian,

the first names of the founders’ wives.

Worldwide

09

get to know HAVI groups' LogIstIcs pILLAr: HAVI LogIstIcs And Hfs nortH AmerIcA

www.havi-logistics.com

HAVI Logistics is divided into the business areas of Europe and the greater Asian region. More

than 6,200 employees worldwide work under the umbrella of our strong brand. Nearly

15,000 customer outlets worldwide are supplied from 72 Distribution Centers. HAVI

Logistics is “The Global Lead Logistics Provider” for food and non-food logistics

and one of the total of three pillars supporting the Havi Group, LP.

HFS North America is the second part of HAVI Group's Logistics pillar. As

well as HAVI Logistics, HFS is a team of supply chain solution experts

that provides customized distribution and logistical services aligned to

meet the customers’ needs. The company receives and consolidates

shipments from multiple vendors, purchase inventory and

distribute a broad range of SKU’s for its customers all with

varying temperature and handling specifications. HFS North

America has specialized capabilities to handle and distribute

highly perishable products (“fresh to frozen expertise”) for

its customers. Additionally, HFS North America can evaluate

its customers’ systems to improve efficiencies and

optimize consolidated distribution. The company aligns

its business solutions to improve the supply chain,

always delivering its legendary service. HFS North

America ensures customer success by tailoring

“distribution services” and “purchasing services” to

meet the customer’s business needs. In January

2010, HFS will also change its legal form and

company name to HAVI Logistics North America.

It is an exciting time for HFS North America and

the team is enthusiastic to take part in fulfilling

the vision of a global brand.

IpLperseco And IsIs HAVe been rebrAnded

As HAVI gLobAL soLutIons

At the beginning of 2009, the two HAVI Group

divisions HAVI Logistics and HAVI Global Solutions

were optimized and aligned their internal resources.

The initial phase of this restructuring in Europe comprised

the integration of ISIS Europe into IPLPerseco.

At the beginning of June the next significant phase in

this process, namely the full integration of IPLPerseco

into HAVI Global Solutions, was started. As a result,

IPLPerseco will be rebranded as HAVI Global Solutions.

HAVI gLobAL soLutIons In germAny moVes Into

new offIces

The entire former IPLPerseco and ISIS organizations are looking

forward to presenting their new brand to customers in a consistent

manner around the globe. The move to the new Duisburg office in the

“Looper” building took place on June 15, 2009. On the fourth floor of the

building the employees now occupy an ideal working environment covering

over 1,941 square meters and including 92 working spaces.

© HAVI Logistics - Corporate Communications

HAVI socIAL AwAreness: mAkIng our worLd A better pLAce!

An important component of the philosophy embraced by all the HAVI Group, LP companies is

sensitivity to the needs of the communities and environments in which we work. You may not be

aware that at each HAVI company around the world there are individuals making positive impacts on their

local communities and environments. These efforts range from volunteering in our local communities to constructing

large-scale solar panel systems. Since May the HAVI Group, LP has a new website to educate, celebrate and share what

all divisions of HAVI Group do to make our world a better, safer and greener place: www.havireach.com.

“What sets HAVI apart from other corporate citizens is our proven commitment to our people, our desire to give back to

the communities in which we operate, and our respect for our planet. Corporate Social Responsibility is at the very heart

of our strategies and philosophy.” chuck schulman Chief Governance Officer and Trustee


10

HAVI LogIstIcs Is cuttIng edge. Video

conferences; communicator; webcams,

laptops and mobiles; applications

such as virtualization software; and

last but certainly not least we make first

steps with techniques like cloud computing.

HAVI Logistics provides what a global player

needs and supports its employees by offering

them up-to-date information technology

"extra" empowering them to deal with

overcrowded offices and traffic jams and

establish a sound work-life balance. These

tools are already widely used at HAVI Logistics

and are especially valued by employees

e.g. returning to work after maternity

or childcare leave. They are

one of the many reasons for the

high employee retention rate

at the company. In addition,

implementing these techniques

throughout HAVI

Logistics offers possibilities

for cutting costs

for hardware, licenses

and office space.

cLoud computIng

is a good example

of this trend.

The basic principle

is very simple: as Internet

connections get

faster and faster, more

and more data and programs

are now stored on

central servers in the Internet

instead of on computers at the

individual work places. This means

users can now access their data

at any time and place per cellphone or

PC; the computer user is surrounded by

Company News

woNDerful New

"Home office," "Thin Clients" and "cloud computing" are buzz words familiar to

worlD

everyone who lives and works in the modern world. Nevertheless, many companies

are still skeptical about these IT innovations. While such companies wait for proof of the practicality of these

innovations, HAVI Logistics has already been using the latest information technology and deriving the associated

benefits for quite some time.

a "digital cloud" of data. The associated

cost flexibility is another important advantage

of cloud computing for HAVI Logistics.

With cloud computing we could save up

to 80 percent of space and 60 percent of

electricity and air-conditioning costs at our

computing centers. Furthermore, the company

is charged only for the server capacity

it actually requires at the cloud computing

providers. This means that we do not have

expenditures for resources we do not use.

It is not only the HAVI Logistics employees

working at home offices or in the IS

sector who use cloud computing. The virtual

workplace is also available, for example, to

our Shared Service Center in Prague in the

Czech Republic. Nor does the use of “virtual

workspace” require a thin client; it is possible

from every PC regardless of its location.

eVeryone benefIts from this technology,

which is expected to eliminate problems

such as installation of updates at overly

long intervals, applications that do not work

right due to local circumstances, the need

for on-site support, uncontrolled installations,

and a failure to have all

the right licenses in place. And

when it comes to the preferred

location and the particular

PC in use, we can

satisfy the preferences of

our employees without

running a security risk:

in general all suppliers

of online data storage

space break down

the data entrusted to

them into non-readable

fragments via a

complicated encoding

procedure. Only after

the user has logged on

with his or her user ID

and password does the

software reassemble the

desired files. To achieve even

more security, the data are distributed

among several servers

around the (wonderful new) world for

storage.


stars of germaNy

gauDi oN the go, germaNy-wiDe!

gAudI Is one of tHe most sIgnIfIcAnt

InnoVAtIons in the history of HAVI

Logistics. Starting out as a test in 2007,

GAuDi has advanced steadily until it attained

the status, at the beginning of this year, of one

of the most important services offered by HAVI

Logistics. GAuDi is now at the rollout phase in

Germany. Over the years we have revised the

concept several times to bring it into line with

the requirements of our customers.

tHe VIsIon of gAudI is to completely relieve

the McDonald’s restaurants of all logistics

tasks by providing one big service package. The

restaurants do not have to order anymore since

HAVI Logistics is taking over this responsibility.

In addition, we handle goods reception and inventory

management. We bring the goods into

the restaurants, put them on the shelves, and

carry out shelf-life rotation and even inventory

counts.

During our test phase in 2008, it finally became

clear that there was a keen interest in all

parts of the German franchisee community in

Company News 11

At the beginning of this year, HAVI Logistics

Germany and S.T.I. Freight Management transported

a very delicate load to Los Angeles. The very fragile goods had to be delivered to L.A. at very short notice.

Nothing special for our experts, you might think? Well, in this case it was, because the load was the eye catchers

for a McDonald's ad starring Heidi Klumm.

A

styLIsH gALA eVenIng Is just gettIng stArted.

Everybody who is anybody has been invited.

The photographers are lining up to get the best

shot of the evening. A limousine glides up. All eyes

are on the car as people wait with bated breath to see

the next great star. The door opens and… a little dog

jumps out. The onlookers are sorely disappointed and

also puzzled: there’s no sign of a star anywhere. The

next camera shot shows Heidi Klumm accompanied by

Germany's next Top Models Sara, Mandy and Marie.

They smirk about the trick they played on the photographers

as they enter a McDonald's restaurant. Heidi

and their three beauties are advertising the McDonald's

campaign launched in Germany in June called "Stars of

America." Maybe the advertising boards (called standies),

a menu board and a panorama display that we

flew in especially from Germany were not the center

of attention, but they were definitely eyecatchers.

On 12 February of this year, HAVI Logistics Germany

was commissioned to transport the extremely fragile

and bulky items to America. The advertising boards

had to arrive in L.A. within only ten days, and this deadline

was not negotiable because the ad was going to

be filmed on a fixed date. While HAVI Logistics procured

the standies, boards and displays within the

shortest time, S.T.I. planned every aspect of the tricky

airfreight operation and helped HAVI Logistics complete

the customs formalities.

to tHe greAt sAtIsfActIon of our customer,

the advertising materials arrived on time for the

start of filming. As usual, McDonald's could be sure

that HAVI Logistics and S.T.I. would make an excellent

job of transporting fragile materials, even at

short notice. So for us, the real stars in this story are

not Chicken Wrap & Co. but our colleagues in HAVI

Logistics Germany and S.T.I.

taking over the responsibility for the store orders

for all articles. It was decided that HAVI Logistics

should handle this first element of GAuDi. Other

elements of GAuDi e.g. the provision of mere

physical services for the restaurants such as

goods reception and inventory management

are not appreciated by every franchisee. Therefore,

we decided to back away from the idea of

offering GAuDi as one big package only.

We will go for a modular

approach to meet our

customers' needs even better.

tHe moduLe “gAudI pusH” wAs born.

With the introduction of this module, order responsibility

became part of our standard service

and mark-up package. HAVI Logistics has committed

itself and literally promised the franchisee

community in Germany that we will take over the

order responsibility for all inventory-controlled

items step by step. For promotional items and

Happy Meals, we have already been doing this

for the total market for the last two years under

the name “Pool&Push.” Now we will take over

frozen and chilled

items and other ar-

gauDi

the havi logistics solution

ticle groups will soon follow. In-store logistics

the second module of GAuDi is offered only

to those restaurants which are ready to pay separately

for it.

todAy we have about 110 McDonald’s

restaurants in Germany which simply do not order

frozen and chilled items anymore: we do that

for them. Every week we increase this number

by five to ten restaurants. Other material groups

are expected to follow later. With today’s infrastructure

we can only do frozen and chilled items

for 500 McDonald’s restaurants at a maximum.

This is why we plan to implement SCR5 in parallel.

SCR5 represents the next generation of

supply chain tools and was developed by our

sister company HAVI Global Solutions. SCR5 is

the planning tool which will enable us to push all

inventory-controlled items for all restaurants in

the market. However, the time frame is tight. We

have to have SCR5 available in Germany before

the end of 2009 in order to fulfill the commitment

we have made to the German market.


12

exceeDiNg all

exPectatioNs!

tHe $600 doLLArs' stArt-up cApItAL was

borrowed from their mother, the equipment

was all second-hand, and the furnishings

very basic. Despite these modest

beginnings the restaurant the brothers Frank

and Dan Carney opened at a busy intersection

in Wichita, Kansas took off immediately

and was the start of a successful restaurant

chain. The name the brothers gave the new

business, Pizza Hut, was an unmistakable reference

to the unassuming appearance of that

first pizza place. Today, 50 years later, Pizza

Hut is represented in more than 100 countries

around the globe, with more than 12,000 restaurants

in Europe, the Americas, Africa, Asia

and Australia.

Since April of this year HAVI Logistics has

been responsible for delivering the complete

assortment of goods to a total of eleven Pizza

Hut restaurants in Sweden. The contract

with Pizza Hut like the first contract with our

customer McDonald's around 28 years before

was initially sealed with a handshake.

This handshake took place at the end of December

2008. For Pizza Hut the main reason

to switch from its previous supplier to HAVI

Logistics was the transparency of our business

model.

“When you realize that the wholesaler

solution leaves you without any clue

whether the costs depends on the price of

wheat or the price of diesel, you get the

feeling that something’s not right …,”

says Björn Källström, Managing Director

of the Nordic Restaurant Group, the country

licensee for Pizza Hut. The HAVI Logistics business

model separates the purchase price of

the goods from the distribution costs and thus

New Customers

Since April 2009 HAVI Logistics has been performing all logistics

services (including strategic sourcing) for Pizza Hut in Sweden.

The move from a traditional wholesaler set-up to the transparency of the HAVI Logistics business model is

an important step enabling Pizza Hut to sustain its high growth rate in the Swedish market and achieve improved

profitability at the same time.

makes all costs more transparent

for the customer. Pizza Hut was

also attracted by the additional

advan-

pIzzA Hut busIness sweden

fActs & fIgures

Assortment and Volumes:

• 156 SKU (ambient, chilled, frozen)

• 88,000 cases p.a.

Ordering and Delivery:

HAVI Logistics supplies 11 Pizza Hut

stores in Sweden

• Electronic ordering process via web

interface

• 36 hours. lead time

• deliveries per site and week (average)

• Automatic invoicing

tages HAVI Logistics had to offer in comparison

with its competitors: fewer deliveries, guaranteed

quality, food safety and central management

of the goods assortment.

Between the handshake in December

and the first delivery in April, our Swedish team

had only three months to take all the measures

necessary to achieve the lofty goal

of a 100%

successful takeover. After witnessing the

outstanding commitment displayed by the

entire HAVI Logistics team, the new strategic

customer confirmed that it had made the right

decision by selecting HAVI Logistics:

"The start-up with HAVI Logistics

has exceeded my expectations,”

said Björn Källström.

tHe cooperAtIon wItH pIzzA Hut has

now been up and running for a couple of

months, and there is still some fine-tuning to

do before we are where we all want to be. The

main challenge will now be to continue to exceed

the customer’s expectations in Sweden,

thereby proving to Yum! Brands - the concept

owner of Pizza Hut - that HAVI Logistics is a

reliable partner which can create competitive

advantages for Pizza Hut all over Europe.


it's our Pleasure!

Gaining BP as a strategic customer in the Netherlands and in Poland

represents not only another milestone in the history of HAVI Logistics,

but also a real success story.

poLAnd Is not only the third-largest BP

market in Europe, but also the fastest growing.

Since the petroleum giant started

doing business in Poland in 1991, it has opened

over 350 gas station shops in the country.

More than 200 of them are owned by BP and

about 150 are dealer-owned.

sInce August 2008 HAVI Logistics in Poland

has been supplying a large proportion of

the total shop assortment to our customer. Our

team in Poland soon reached a high level of performance,

especially regarding punctuality and

completeness of deliveries. Today we deliver

about 1,200 articles to a total of 205 BP gas

station shops and since very recently we also

deliver an ice-cream assortment. We now transport

five million cases for BP Poland every year.

In addition, the whole ordering process and

the invoicing is done through HAVI Logistics.

lookiNg forwarD to

the Next millioN!

In 1996 our LAtVIAn-bAsed HAVI Logistics

company was founded to serve

McDonald's. Since 2001 we have

been providing logistics services not only

to McDonald's but also to the retail-chain

RIMI. RIMI is represented in Latvia with 14

hypermarkets and 30 supermarkets offering

a remarkable variety of food and non-food

articles.

tHe pAst eIgHt yeArs HAs been A reAL

success story for HAVI Logistics in Latvia.

In addition to the constant expansion of the

delivery volume and the product assortment,

in 2004 our colleagues moved into a new

Distributions Center covering 28,000 sq. m.

New Customers 13

Following the implementation phase, we

have now been working together with BP for

several months on a joint approach to further

optimize the Supply Chain processes and cost

structure. On the agenda are important items

such as:

■ optimizing the delivery schedule

■ flexible routing to enable us to react

better to short-term volume fluctuations

■ closer collaboration with suppliers

■ developing a concept to support and

improve the volume planning and optimal

distribution of promotional articles

our cooperAtIon wItH bp Is A success

story. The customer is really satisfied; this development

consolidates the partnership between

BP and HAVI Logistics and strengthens

our customer’s confidence in us.

The "RIMI DC" is the largest of all the HAVI

Logistics Distribution Centers and now the one

millionth delivery was sent from there to our

customer. What a great reason to celebrate!

On 9 May our colleagues in Latvia picked

the goods bound for RIMI’s "Mežciems"

supermarket almost with reverence. Our driver

Oskars Broks-Vitols had the honor of delivering

the goods to the customer. Andris

Dobulis, Managing Director of HAVI Logistics

in Latvia, took the one millionth RIMI delivery

as an occasion to award certificates to all his

colleagues and to celebrate the many millions

of deliveries to come with a large cake.

The ambient warehouse of HAVI Logistics

in Poland. In here 1,153 items for BP

Poland are stored.

The warehouse employee Hubert

Decyk from our DC in Tychy picks up

the ambient goods for BP.

On May 9, 2009 RIMI and HAVI Logistics celebrated a fantastic jubilee. HAVI

Logistics in Latvia performed the one millionth delivery to RIMI in the Baltics.

Managing Director of HAVI Logistics Latvia

Andris Dobulis presents truck driver Oskars

Broks-Vitols with the certificate.


14

great climate

iN Norway

HAVI Logistics in Norway is following the lead of several other HAVI Logistics

companies and running its trucks on AME biodiesel. The oil used to make French

fries, for example, ends up in the tanks of the company’s trucks. Not only does this environmentally friendly alternative

make a huge contribution to fighting global warming, but so do the trucks' new cooling aggregates, which use CO . 2

tHe 565 trucks in the HAVI Logistics fleet are

among the "greenest" on the roads anywhere

in Europe. The fleet runs mainly on

alternative fuels and since 2002 we have also

been consistently using AME. Acid methyl ester

is a renewable raw material containing a low

percentage of sulfur. Using AME instead of mineral

diesel reduces soot emissions by a good

50 percent. What's more, AME is biodegradable

and non-toxic.

sInce mAy of tHIs yeAr HAVI Logistics in

Norway has been operating two trucks on AME.

The environmentally friendly fuel can be obtained

at the company's own biodiesel filling station.

With the successive conversion of our truck fleet

from mineral-oil-derived diesel to AME, we are

benefiting the environment and at the same time

helping our customer McDonald's to get a firm

handle on its CO 2 emissions. The use of AME

reduces emissions of greenhouse gases by 82

percent in comparison with conventional diesel.

The two trucks, which distribute to the Oslo

area, are at the same time equipped with another

environmental innovation: cooling aggregates

that use CO 2 .

usIng co 2 to reduce CO 2 emissions might

sound at first like a contradiction in terms, but

sInce februAry 2003 our Hungarian-based

Distribution Center has been one of the

first within HAVI Logistics to have its exemplary

environmental protection activities certified

according to DIN EN ISO 14001. Our team in

Hungary thereby agreed to pursue the environmental

goals set by this standard and to allow

an annual inspection by an external consultant.

In May of this year, the company was recertified

for the second time. The environmental activities

were rated as "superior" by the external auditor.

Environment

the logic is fundamentally sound. The CO 2 used

in Norway comes from the exhaust from factories

making artificial fertilizer. Instead of simply releasing

the gas formed during fertilizer production

into the atmosphere to the detriment of the environment,

it is "captured" and re-used for such

things as our truck cooling systems. So the cooling

aggregates in our HAVI Logistics trucks in

Norway stay completely CO 2 -neutral. And that‘s

not all. They also have decisive additional advantages

as compared to cooling systems that

run on diesel:

■ practically silent

■ extremely fast cooling of the loading spaces

■ improved temperature management

■ high performance ensures minimal

cooling losses during loading and unloading

■ long lifetime of cooling aggregates,

greater reliability

■ minimal maintenance costs for the

aggregates

■ no FCHCs/FHCs as coolants

The Norwegian premier wants his country

to be the global leader in climate policy by the

middle of this century. Norway's emissions are to

be so greatly reduced and neutralized by 2050

that they work out to be zero.

successful recertificatioN accorDiNg

to iso 14001 aND 22000

The audit protocol stressed the importance of

cleanliness and order in the warehouse, procedures

carried according to the spirit of the law,

separate collection of hazardous and recyclable

materials, and documentation in general.

Additionally, our Hungarian-based company

was recently recertified according to another

very important standard, the ISO 22000,

which takes a very critical look at the wide field

of food safety. In 2006 it was the first of all the

Thomas Münchausen, Managing Director of HAVI

Logistics Sweden in the mid of truck-driver Lars

Westheim (left) and Transport Manager Arne Ihlen.

Prime Minister Jens Stoltenberg wants pollution

rights and countermeasures to balance out

emissions to such a degree that, mathematically,

the sum total is zero. Does Stoltenberg know

about HAVI Logistics' commitment to the environment?

Maybe those who criticize his ambitious

target would suddenly fall silent if he presented

environmental innovations such as those at

HAVI Logistics as some of his measures…

Innovative Equipment: Cooling aggregate (left)

and the CO gas tank.

2

With respect to the standards of HAVI Logistics every single

distribution company is well ahead of the regulations for the protection of the environment and food safety. Since 2003,

however, HAVI Logistics in Hungary has been going one step further: it is the first logistics service provider in Hungary and

the first at HAVI Logistics to achieve the food-safety ISO 22000 certification! Now the recertification audit has taken place

and our Hungarian team did well again as expected.

HAVI Logistics companies, and also the very

first logistics company in the whole of Hungary,

to gain this certification. Our experience in the

field of HACCP and our knowledge of procedures

like FIFO or the overall tracking of goods

paid off very well. We showed that HAVI Logistics

in Hungary understands the requirements

of this standard and applies its elements in a

very expedient way contributing to the highest

standards we have implemented for food safety

throughout HAVI Logistics.


aND-New service for

mcDoNalD’s belgium

HAVI Logistics Environmental Services, (HLES) is responsible for collecting

and recycling all kinds of sorted waste from the Dutch McDonald’s

Restaurants. Starting in September 2009, however, HLES will be implementing

its advanced waste management concept at our customer's Belgian

restaurants as well.

The specially designed recycling truck is on the road seven days a week.

sIx specIALLy desIgned green recycling

trucks are on the road seven

days a week collecting sorted waste

consisting of corrugated and dry paper,

plastics, food waste, used cooking oil, residual

waste and small chemical waste.

HLES makes an important contribution

to the protection of the environment by

assuring that no type of waste from the

McDonald’s restaurants is disposed of on

dumps.

from september on tHe mcdonALd’s

restAurAnts In tHe netHerLAnds will

not be the only ones receiving this service

from our Netherlands-based company;

in addition, 40 of the 59 McDonald's

restaurants in neighboring Belgium have

also subscribed to various environmentally

orgAnIc wAste

In Switzerland, we also ensure,

among other recycling services,

the collection of organic waste

from McDonald’s restaurants.

friendly waste recycling services offered by

HLES. Preparations already got underway

at the beginning of March 2008; the operational

start will take place in September

2009. At first one truck will be in service

for Belgium.

HLes' most ImportAnt tAsk Is to

carry out waste collection in Belgium in a

professional manner. After that, in the year

2010 to be exact, the recycling service will

be extended to Belgium literally across

borders: one of the two trucks in service

for the Belgium restaurants will also serve

McDonald's restaurants in the southern

part of the Netherlands. This combined

system will give our HAVI Logistics company

the opportunity to create a genuine

win-win-win situation.

neon LAmps

Environment 15

In Hungary, a regulation classifying

old neon lamps as hazardous

waste has been in force since

2004. The neon lamps must be

reprocessed separately. HAVI

Logistics provides a valuable service

by taking back the old lamps

for reprocessing.

Please read more about HAVI Logistics' Environmental Activities and Services in our "IT'S EASY TO BE

GREEN" brochure - available under: www.havi-logistics.com/ News & Media / Publications / Brochures

further eNviroNmeNtal

services

Besides taking care of the operational

procedures and the administration

of the McDonald‘s Recycling System

in the Netherlands and Belgium, we

also offer waste management and reverse

logistics in other HAVI Logistics

countries in Europe.

cArdboArd

In various markets, HAVI Logistics

companies collect used cardboard

from McDonald’s restaurants

and forward it for adequate

recycling.

bAtterIes

McDonald’s customers can return

used batteries from Happy Meal

toys to the restaurants in some

countries. Our delivery drivers take

the used batteries collected in

special boxes back to the DC,

where waste management companies

collect them for recycling.

trAnsLItes

HAVI Logistics in Germany has

introduced a system which allows

the McDonald’s restaurants

to return neon signs so-called

translites to the HAVI Logistics

drivers. Back at the Distribution

Center, the translites are disposed

of by special waste management

companies.

enVIronmentAL reportIng

HAVI Logistics supports McDonald's

by preparing various environmetal

reports, e.g.:

■ Local and European environ-

mental reports

■ Drawing up packaging reports

for various European countries

■ Waste of Electrical and Electro-

nic Equipment reports


16

by meAns of tHIs reguLAr feAture,

we plan to keep you, the reader, totally up

to date on our accomplishments with respect

to observance of all HACCP criteria

and our continual efforts to guarantee food

safety in all sectors of our organization. In

the last issue of alphabet we were again

able to present a large number of Top Performers

at HAVI Logistics. One company we

are also very proud of is HAVI Logistics Turkey.

At the latest DQMP* (Distributor Quality

Management Process) audit, our colleagues

in Sekerpınar-Gebze achieved an

amazing 97.45 %. Not only was our company

in Turkey the first member of the HAVI

Logistics family to be audited according to

the new DQMP criteria; it was also the company

that achieved the highest number of

points in 2008.

icy iNNovatioN

Environment

hats off to our turkish

toP Performer!

In this section of alphabet, we have in the past reported

on the excellent results achieved by our HAVI Logistics

companies and Distribution Centers in the DQMP and SQI audits. Much to our dismay, we overlooked a very

special Top Performer in the last edition.

december 2008 And jAnuAry 2009

were successful months for our Turkish colleagues

in several respects. Apart from the

excellent DQMP results, the company was

certified for the first time in accordance with

ISO 14001. Its outstanding environmental

management system was accredited according

to the Turkish standard and, on top of

that, received a certificate from the German

Accreditation Council. This means that our

DC in S¸ekerpınar-Gebze upholds environmental

standards that actually go beyond

the Turkish requirements.

Thanks to the numerous standards defined

by HAVI Logistics, the same regulations

apply at all our Distribution Centers.

With this policy, we achieve the maximum

possible quality, hygiene and ecological

awareness even in countries where environ-

* DQMP: The intent of this process is to establish standardized requirements for distributors to McDonald's.

A dehumidifier that is unique at HAVI Logistics ensures that

the cooling aggregates in the Duisburg deep-freeze store

do not ice up and at the same time we fulfill HACCP-guidelines in a more energy-saving manner.

tHe HAVI LogIstIcs dc In duIsburg

supplies 299 customer outlets with

ambient, chilled and frozen goods.

To have all the picked frozen and fresh

goods ready for loading at the cooldock,

the gate on the deep-freeze store opens

and closes up to 1,000 times a day. The

constant coming and going means that

the cooling aggregates have to run at

full tilt, to guarantee the prescribed subzero

temperatures in this area. Sooner

or later this leads to the formation of ice

on the aggregates, which have to be defrosted

at regular intervals. Each defrosting

operation is costly because it uses

additional energy.

The Dehumidifier is located at the cool-dock.

mental protection is not yet a major issue.

This is the only way we can achieve 100%

customer satisfaction and an unmistakable

customer benefit at all our HAVI Logistics

companies.

tHe deHumIdIfIer shows that HAVI

Logistics has declared war on the ice.

The 50,000 euro innovation simply sucks

in the humid air, which occurs in the deep-freeze

storage due to the continual

opening and closing of the roller gates,

out of the storage area. The air is dried

and returned to the cooling circuit. So

the cooling aggregates stay free of ice.

In addition to the cleaning operations,

we are now also saving a huge amount

of energy, so the investment will have

paid off in three years.


to be prepAred for tHe demAnds of

their present and future day-to-day activities,

our HAVI Logistics middle-management

employees have already taken advantages

of the opportunity to participate in a

specially designed Leadership Development

Program since 2007. To support our

entry-level leaders and top-management

employees as well, HAVI Logistics has now

decided to conduct a tailor-made leadership

development program for these target

groups, too.

tHe progrAm for our entry-LeVeL

mAnAgement is based on a training cycle

consisting of three learning modules that

build cumulatively upon one another and

add up to a total of six days. The basic

topics covered are recruiting & developing

staff, agreeing on goals, organizing a team,

making decisions, and carrying out control-

Human Resources

gettiNg PrePareD for

the future

The company-wide employee satisfaction survey conducted at HAVI Logistics has

underscored the importance of Training & Development within our organization. The survey

has shown that there is room for improvement especially with respect to management skills such as leadership and communication

with employees.

make aN imPact!

ling. The concept of the training is based

on a combination of learning-by-doing with

inputs and theory provided by external trainers

familiar with the special requirements

of entry-level management.

We also strive to develop the capacity

of the senior managers at HAVI Logistics

individually and collectively to make

our ambitious strategy come alive, to

address our strategic and leadership challenges

and more generally to promote

improved performance. The training program

for our top-management has been

designed as a two-year program consisting

of six mandatory modules. The Leadership

Development Program for our

HAVI Logistics top management started

in March 2009. A total of 50 senior managers

are participating in two groups.

by offerIng A customized and intensive

trainings program of this kind, HAVI

Logistics has once again taken the lead.

“I do not know of any other company

in the logistics business that has established

such a comprehensive management

training program in such a short

time.” Christian Schulten,

Human Resources Manager, HAVI Global

Logistics

Our leadership seminars are well attended.

Today demand already exceeds supply

in this area; as a result, additional training

dates are planned for 2010. In this way HAVI

Logistics is responding to the wishes of its

employees for even more training and at the

same time setting innovative standards on

the European logistics market.

Our employees are our most valuable resource The well being of our employees

is a central concern at HAVI Logistics. Open lines of communication

facilitating a continuous flow of information are an essential constituent of our corporate culture. We believe that employees should

be allowed to express criticism and we actively solicit their opinions. For this reason, the Employee Satisfaction Survey conducted

at regular intervals is of enormous importance.

tHe empLoyee sAtIsfActIon surVey 2009

was the first to be carried out simultaneously

at all the European locations of HAVI

Logistics. Around 70 percent of the 4,926

employees working at the 39 HAVI Logistics

companies in Europe completed the questionnaire

placed in the Internet; participation

was voluntary and totally anonymous.

This was an excellent turnout by any international

comparison.

The employees of HAVI Logistics expressed

a high level of general satisfaction

with their employer. The employees were

asked to rate their general satisfaction with

the company on a scale of one to five; the

average score for this item was 4.3 points.

Our efforts in the area of Corporate Social

Responsibility were also given high marks:

our employees evidently place great importance

on the company's relationship with

the environment and society and on good

working conditions. The reorganization of

the company under a new name also re-

ceived a positive rating. Furthermore, the

future prospects, corporate loyalty and

customer satisfaction associated with our

new uniform global brand were viewed as

excellent. A high percentage of our employees

feel they are part of the global HAVI

Logistics family.

Next to these strengths, however, the

employees saw definite possibilities for improvement

at the company. Additional communication

instruments were needed, they

said, to keep the workforce informed about

management decisions and other developments

at the company. The employees

also complained that their suggestions and

ideas had not been sufficiently adopted and

put into practice. Requirements for further

training seminars and events in the area of

continued professional development were

also reported.

tHe resuLts of tHIs yeAr's empLoyee

surVey will be conveyed to the HAVI

Logistics divisions and national companies

by our top management along the fastest

communication paths. At this year's European

Management Meeting, the first joint

Action Plans were already drawn up. These

plans will enable us to realize the potential

for improvement existing throughout the

entire company at top speed.


18

At the end of March 2009 the new DC in Lodi started

serving our customers in the northern area of Italy.

new dc for nortHern

ItALy

At tHe end of mArcH HAVI Logistics' new Distribution

Center in Lombardy was already on

stream.

The new DC is located in Lodi, in the region of

Lombardy in Italy. Lodi, with its 42,000 inhabitants,

was part of Milan until 1992, when Lodi

gained recognition as an independent province.

foLLowIng tHe dcs In bomporto And monterotondo,

the DC in Lodi is now HAVI Logistics'

third Distribution Center in Italy. The new DC has

an area of 5,500 sq. m. and 1,996 pallet slots

for ambient goods, 540 pallet slots in the fresh

goods storage area, and 2,209 pallet slots for

frozen products. Trucks dock at twelve ramps

to load goods for a total of 122 McDonald’s restaurants

and other Strategic Valued Customers

(SVC). DC Lodi has a natural ventilation system

made with a plastic hive that allows air circulation

in all the directions. The hive is also drowned

in concrete to be totally stable.

News in Brief

Sergey Shubsky, Managing Director of HAVI Logistics Ukraine in the middle of potential logistics

managers of the future.

HAVI LogIstIcs mAn-

Agers of tHe future

on june 19, 2009 a group of schoolchildren and

teachers from Pechersk International School visited

our HAVI Logistics DC in Kiev, Ukraine and

enjoyed the experience of being “immersed” in

food logistics.

tHe pecHersk scHooL InternAtIonAL a

World IB School offering the International Baccalaureate

Program, is part of a larger, global

community of international schools. The growing

expatriate community in Kiev has created

a need for high-quality international education.

This multicultural group includes diplomats and

business people who are working at the embassies

and large multinationals in Kiev.

The visit was organized by Yolande

Borden, wife of the Managing Director of

(f.l.t.r.) Warehouse employee Manfred Horn, Warehouse Manager Oliver Engelking, warehouse employees

Ridvan Ayaz and Frank Brockerhoff and Hans-Dieter Hojnacki, Managing Director Operation

HAVI Logistics Germany.

McDonald’s Ukraine and Andrey Muguev, Supply

Chain Director in Ukraine, Belarus, Georgia

and Azerbaijan. The children and teachers

were introduced to the basics of food distribution,

temperature regimes, special transportation

in multi-temperature modes, and the requirements

for quality and cleanliness. Currently, the

children are learning about the topic of “food”

(i.e. how it is grown, processed and delivered

to consumers) so the visit to our Ukraine-based

Distribution Center was a real eye-opener.

“It wAs not eAsy to expLAIn complicated

things in simple language that can be understood

by 6/7-year-old students of logistics,”

says Sergey Shubsky, Managing Director of

HAVI Logistics, about this challenge. Nevertheless,

the children promised to remember new

words like Distribution Center, freezer and cool

dock and Sergey has high hopes of having recruited

a few logistics managers of the future.

coNstructioN work

iN Duisburg

tHe HAVI LogIstIcs dIstrIbutIon center In

duIsburg is one of six German DCs. The expansion,

which involves adding 1,600 sq. m.

to reach a total of 10,195 sq. m., enables us

to continue meeting the high customer expectations

and to create secure jobs. "It is

a good investment, amounting to 7.5 million

euros, and makes sense. This boosts our

employees’ feeling that they have a safe job


The participants of the European Management Meeting 2009.

team sPirit

iNsiDe

from june 4-6 2009, the top managers at

HAVI Logistics met, for the 21st time already,

to talk about the most recent development

at the company and the prospects for

the future.

tHe AnnuAL mAnAgement meetIng

of HAVI Logistics, previously known as the

IAMM, was held this year for the first time

under the name "European Management

Meeting." The motto of this year's meeting

was "Team Spirit Inside." This time the gathering

of the company's top management took

place in Ljubljana, Slovenia; as in the years

before, a host of company-specific topics

were on the agenda.

The 2009 European Management Meeting,

like every meeting before it, was a chance

to reflect on questions such as: How much

have we accomplished? How much have we

and we continue to ensure the highest quality

for our customers," says Hans-Dieter Hojnacki,

Managing Director Operations.

There are plans for extending the block

storage, the ambient warehouse and the

empties, constructing another frozen-goods

high bay warehouse and expanding the existing

cooldock by adding four more truck

docking stations. Furthermore, HAVI Logistics

Germany is creating new social facilities for

News in Brief

moved forward? Are we satisfied with our

successes? Do we acknowledge the many

challenges that still lie ahead of us? How do

we assess our progress towards the goals

we have set for ourselves?

2008 was a year of change

for HAVI Logistics

The unanimous conclusion reached by

the HAVI Logistics’ management is that 2008

was “a year of change” - a year like none we

have seen before that casts the outlook for

the future in more positive, i.e. stronger and

brighter, light. With developments like our

new branding, the functional re-alignment of

the HAVI Group, the foundation of our Shared

Service Center and the building of the S.T.I.

Control Tower, we have mounted strategic

infrastructural initiatives that lay a solid foundation

for our future.

one of tHe key eLements of this year's

European Management Meeting was the

HAVI Logistics' Employee Satisfaction Sur-

its employees, bringing about a further improvement

in the working conditions. The

new building is scheduled for completion in

mid-November of this year.

tHe empLoyees ceLebrAted the grand

bull-dozing kick-off. Hans-Dieter Hojnacki

turned the spade for the groundbreaking ceremony.

This was a reminder of the historical

moment about 22 years ago when the founder

of our company, Andreas Rost, did the

19

vey which took place recently (please read

also the article on page 17). But this was

not only about sharing the results but also

about having the opportunity to appreciate

the strengths of HAVI Logistics and understand

the areas where we need to improve.

During the group work which is a traditional

feature of the Management Meeting, the results

of the Employee Satisfaction Survey

were analyzed and viewed in the context of

our Corporate Culture.

All of this took place against the background

of achieving a better understanding

and appreciation of how much employee

commitment and motivation matter and to

what extent they are influenced by our behavior.

The members of management spent

a considerable amount of time identifying the

issues which we, as a team, need to address.

This is why this year' motto was: “Team Spirit

Inside.”

same for the construction of the McDonald's

Food Town in Rheinhausen with the

same spade!


20

a great “iNveNtor”

retires

Farewell party for Kent. (f.l.t.r.) Luca Gnecco, Kent

Zohnne, Hans-Werner Krohn and Haluk Ilkdemirci.

kent zoHnne (64), a native of Sweden, retired

on March 31, 2009, after a career as a true

HAVI Logistics pioneer. Since 1978 he had

headed Frigoropa, the Frigoscandia subsidiary

and predecessor of WLS (today HAVI

Logistics Germany), in his capacity as joint

Managing Director together with Andreas

Rost. He was instrumental in guiding our

company through its early years.

from 1982 kent zoHnne sat on the Advisory

Board of WLS for our former major

shareholder Frigoscandia. In the year 1997 he

finally moved to our company, where he worked

as General Manager with responsibility

for "Internal Audit & Insurance." For 12 years

Kent Zohnne worked for our company in loss

prevention and claims settlement and on ensuring

that internal audits ran smoothly. And

all the while, he kept a little secret: he was

actually the person who "invented" the letter

codes for our HAVI Logistics employees.

kent zoHnne sAw tHe prIncIpLe of deriving

a letter code for each employee from

the first letter of the first name and the first

and last letters of the surname as a rule, but

he made exceptions for himself and for ARO

(Andreas Rost). Because his middle name was

Gunnar, he gave himself the code KGZ.

Kent Zohnne did a great deal for HAVI

Logistics in his twelve years with us. We wish

him a happy, healthy and fulfilling retirement

with his family and his vintage cars.

DiD you kNow ...

…tHAt the introduction of biodiesel within

HAVI Logistics is due to a frozen Passat?

Before converting the entire fleet of

trucks to biodiesel in 2000, the new fuel had

to be tested for its resistance to frost. But how

could a biodiesel-driven vehicle be tested at

simulated Siberian temperatures in Germany’s

News in Brief

Duisburg, we have

a Problem…

After the explosion of the pipeline, 300 meter high flames shot up into the sky.

on mAy 10 the Russian capital city of Moscow

was rocked by a powerful explosion. A gas

pipeline exploded about two kilometers from

our Distribution Center, simultaneous shutting

down all the information systems at HAVI

Logistics' three Russian Distribution Centers

for hours.

tHe gAs pIpeLIne expLoded in the early

morning hours on Sunday. Five people were

injured. The explosion ripped open a 10meter-wide

and 3-meter-deep crater in the

street. The force of the explosion tore down

an approx. 100-meter-long concrete fence

and severely damaged a building. A huge fire

broke out. According to eyewitness reports,

the flames shot up to 300 meters into the

sky and were visible kilometers away. About

100,000 people were cut off from the outside

world by the explosion, which knocked out

both telephone and Internet connections.

Our DC in Moscow was not the only facility

hit: our Russian HAVI Logistics branches

in St Petersburg und Nijny Novgorod were

also affected. At all three DCs, the explosion

severed the links to communication systems.

ILOS, email, Internet and telephone

rather mild climate, especially in springtime?

Simple: As a logistics expert for frozen goods,

HAVI Logistics owns quite a few mobile “test

labs”, namely trucks and trailers. And the test

candidate was located quickly, too. The former

HAVI Logistics Germany Transport Manager

Udo Ulbrich offered his VW Passat as

the test vehicle, which had been running on

connections were totally down. Our Russian

colleagues were unable to contact customers,

suppliers or other HAVI Logistics companies.

The warehouse staff were unable to pick and

distribute ordered goods. Our drivers waited

to load their trucks and to be able to print out

delivery notes again. The local IT experts worked

round the clock and sent urgent requests

for assistance to HAVI Logistics IS in Duisburg

by cell phone. While everyone pulled together

to find alternative communication routes, the

Russian employees filled out delivery notes by

hand to ensure that our customer McDonald’s

would receive its deliveries on time.

for eVeryone InVoLVed It wAs A Long

sLeepLess nIgHt and a very hard next day.

The DCs in Moscow, St. Petersburg and Nijny

Novgorod were not back to normal until

the afternoon of May 11. It was thanks to the

unbelievable team spirit displayed by our Russian

colleagues, the rapid response of the responsible

IT managers on site, and the strong

support provided by HAVI Logistics IS in Duisburg

that all of our deliveries to McDonald's

arrived at the agreed time and with the correct

contents.

biodiesel for quite a while already. When Udo

after the 44 hours the car’s temperature was

-25° Celsius (-13° F) opened the trailer and

turned the ignition key, everyone breathed a

sigh of relief. It started, the test was a success

and HAVI Logistics now know that evensuch

sub-zero temperatures wouldn’t be a problem

for biodiesel-driven vehicles.

More magazines by this user
Similar magazines