Rohlig Annual Report 2008.pdf - Röhlig

MANAGEMENT REPORT | STRUcTURAL cHANGES AND RISk MANAGEMENT
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status checks, credit limits for each customer, and
a tightly-organised collection process. In addition,
customers holding accounts with a number of
consolidated companies are centrally monitored.
Freight and cargo damage/financial loss
In principle, any business in the international
transport and logistics sector has to factor in possible
freight or cargo damage and the resulting
financial exposure. Moreover, the risk of damage
increases with the provision of complex, individual
solutions for our customers. These risks are
not only covered by the appropriate insurance
but also by organisational measures, such as “The
Röhlig Way”, Röhlig’s global quality management
system.
Inherent business risks
The international orientation of Röhlig’s conso-
lidated companies has led to the introduction of
global systems to control the inherent business
risk. These systems include quality management,
which is a primary focus, and other customised
measures including, for example, the centralised
Treasury System, training staff in various areas,
and the planned comprehensive introduction of
SAP FI/cO. In 2009 and beyond, we will be continuing
to work on a holistic risk management system.
An internal audit function has already been
created as a direct measure. The executive management
has also decided to further expanding
the existing financial controlling system.
Structural changes
In 2008, we continued to implement our strategic
objective of expanding the Röhlig network
by opening at least one new branch office abroad
every year. In August, Röhlig Denmark
ApS started operations in Holte. Next year, the
country office will be consolidated for the first
time. In Japan, together with Gebrüder Weiss,
another joint venture company has been founded
in which Röhlig holds a 50 per cent share. In
India, Röhlig has taken a 50 per cent share in the
owner-managed TRIcON Shipping Private Ltd.
and, will be transferring half of this share to our
strategic partner Gebrüder Weiss.
In the first six months of 2008, Röhlig extended
the contract on the NORD Holding silent partnership
to 31.12.2011 and simultaneously increased
this by Euro 2.7 million to Euro 5.0 million.
This step also further strengthened the equity
base. In connection with other financial measures,
systematic receivables management led to
an optimisation of balance sheet relations and a
clear reduction in short-term bank borrowings.
In Germany, our sea freight and air freight companies
have been merged into one operation. In
the USA, two existing intermediate holding companies
have been merged into a single holding
company. In the Netherlands, for simplification,
the existing intermediate holding company has
merged with the operating company.
The Group’s growth also required a change in
procedure to successfully manage the entire
organisation of consolidated companies. consequently,
the main area of global responsibility
for relations to the sea freight carriers was created
in the reporting year. This coordinates the
core carriers globally and optimises the Group’s
purchase of services from them. The move provides
a major benefit for our customers and also
strengthens our own long-term efficiency. consequently,
a management position “Global carrier
Relationship” was created in the reporting
year.