COMMAND TOWER

SUPPLY CHAINMANAGEMENT

EDITION 1/2013

THE WORLD OF INTELLIGENT LOGISTICSmagazine

NETWORK ALL GO ON THEEASTERN FRONT

EUROPALLETS WOODWORM IN THE SYSTEM

02 DACHSER magazine

NUMBERS THAT COUNT

A TIME FOR EVERYTHING Trading means fluctuation. This also applies throughthe seasons. A high five to the high season!

FEB

NOV

MAR

JULAUG

SEP

7.2 billion eggs are consumed in Germany each year, that’s

around four per person a week. At

Easter consumption is twice that.

The increased demand over the

holiday period is 240 million eggs.

Placed in a row, these would

stretch from Berlin to Beijing

and back. (Source: GfK, Apotheken Umschau)

19 billion US dollars in sales of sweets and candy was generated by 1,800

confectionery producers over Halloween in 2012.

Every year, kids in the US eat around 11.3 kilograms

of sweets. Much of this is consumed when they

go trick-or-treating. (Source: US Census Bureau)

67% ofglobal firework productioncomes from Liuyang. Much of it went up in smoke at the

Chinese New Year celebrations on 10 February. In the global

firecracker capital over 1,700 companies with some

300,000 employees generate revenue in excess of 1.4 billion

euros (2010). (Source: china.org.cn)

65% of swimwear fashion sales in Europe’s leading sales market, Italy, are generated

in the third quarterly period of the year. In 2011,

Italian retailers posted revenue totalling 417 million

euros for lido articles. (Source: NPD Group)

DACHSER magazine 03

CONTENTS

04

18

22

28

COVER STORY

Integrated logistics: Managing multimodal supply chains 04

FORUM

People and markets: 10Pan-European load forwarding with Cargoplus; Dachser careers day; Saving fuel while you sleep Quality: An object of dispute 14

COMPETENCE

Load security: Secure packaging saves consequential costs 16Europallets: The exchange system in crisis 18Mission statement: Effective values 21

NETWORK

Air & Sea Logistics: Markets and growth: Interview with Dachser managing director Thomas Reuter 22Sea freight: Ports with global significance 24Network competence: News from the world of Dachser 26CIS states: Built on energy Market review 28

BUSINESS LOUNGE

Viva España: Bernhard Simon meets Dr Walther von Plettenberg 32

GOOD NEWS

Climate change mitigation is feasible: Renewbility II 35

ImprintPublished by: Dachser GmbH & Co. KG, Memminger Str. 140, 87439 Kempten, Germany, Internet: www.dachser.com Overall responsibility: Dr Andreas Froschmayer Editor-

in-chief: Anne Huschka, Tel.: +49 831 5916-1423, Fax: +49 831 5916-8-1423, e-mail: anne.huschka@dachser.com Editors: Martin Neft, Weber, Theresia Gläser Publisher:

Burda Creative Group GmbH, Konrad-Zuse-Platz 11, 81829 Munich, Germany, Tel.: +49 89 30620-0, Fax: -100 Managing director: Gregor Vogelsang, Dr-Ing. Christian Fill Project

manager Burda Creative Group: Marcus Schick Design: Ralph Zimmermann Photos: all photos Dachser except iStockphoto (pp. 1, 2, 3, 6, 7, 11, 13, 14, 15, 24, 25, 27, 28, 29, 30,

31, 35), fotolia.com: Venusangel (p. 15), rcx (p. 20), TRW Automotive (pp. 3, 4, 5, 9), Marcus Vetter (pp. 18, 20, 22, 23), Jörg Reuther (pp. 6, 7, 8), Serviceplan (p. 21), Illustration:

Ralph Zimmermann (pp. 32–34) Printer: AZ Druck und Datentechnik GmbH, 87437 Kempten, Germany Circulation: 38,000/54rd volume Publication: 4 x per year Languages:

German, English, French. The DACHSER magazine is printed on NovaTech paper certified in accordance with the FSC® mix for sustainable forestry.

F Our DACHSER eLetter is packed with even more information. To find out more, visit:www.dachser.com/news-en

The world as a workbench: together with Dachser, automotive parts supplier TRW Automotive links supplychains and transport modes worldwide. A control tower efficiently brings together goods flows and services.

TOWERPOWER

COVER STORY

04 DACHSER magazine

Just as here in Koblenz, TRW manufactures automotive parts worldwide

hMobility is the new megatrend that’s

moving the globalized world. How -

ever, this growth in mobility demand is

presenting major challenges for the auto-

motive industry. This is especially true of the

development of emerging markets, above

all the so-called BRICS nations (Brazil,

Russia, India, China and South Africa).

Here, experts are anticipating sales increases

of over 100 percent by 2018. For the entire

industry this means adopting a new way

of thinking, decentralizing production and

processes and adapting them to the new mar-

ket conditions. This trend equally affects

automotive parts suppliers, who increasingly

(have to) follow manufacturers into new

production and sales markets.

Against this background, planners are in-

creasingly turning their attention to logistics

and intelligently organized, highly flexible

supply chain management. One example for

such a fundamental transformation and the

new production processes ensuing as a result

is provided by TRW Automotive. The first-

tier supplier based in Livonia, Michigan,

USA, produces active and passive safety

solutions for a wide range of driver assist

systems, wheel brakes, airbags, seat belts

and electronic and software technologies.

“We put the thinking in safety systems” runs

the company’s claim. Given the company’s

highly complex worldwide procurement net-

work, intelligent supply chain management

is definitely also called for at TRW. For

example when it comes to production of

advanced seat belt systems. TRW supplies

these to various car manufacturers from its

plant in Atlantis, north of Cape Town,

among others. Individual components are

contributed by some 60 TRW suppliers from

all over Europe.

At the beginning of 2012, TRW was looking

for a new logistics partner to engineer a re -

organization of its procurement chain. The

task was to plan and implement the inte -

gration management of multimodal supply

chains. This covers consolidating the indi-

vidual belt system components from all over

Europe as detailed in the purchase order

from South Africa at a central location in

Germany, communicating with suppliers,

coordinating all transport operations, pack-

ing the individual components in the cross-

dock in line with production requirements,

shipping, customs clearance and subsequent

overland transport to the manufacturing

plants for final integration into the seat

belt system. And the whole process, despite

diverse individual intercontinental services,

captured on a single invoice.

TRW chose Dachser. For several reasons: the

logistics provider already had an existing, ‡

DACHSER magazine 05

COVER STORY

06 DACHSER magazine

long-standing customer relationship as well

as extensive network structures in the fields

of European Logistics Systems and Air &

Sea Logistics in its favour. Bernhard Simon,

head of Dachser’s management board, sums

up the company’s ambitious goal as formu-

lated in its mission statement: “We create

the world’s most intelligent combination and

integration of logistical network services.

We optimize the logistics balance sheet of

our customers”. In times of globalization,

he adds, the spectrum of logistics services

not only encompasses a smoothly function-

ing, integrated and global value chain, but

also and increasingly a wide range of supple-

mentary services upstream and downstream

of intercontinental freight transport.

Learning by doingBefore collaborating with Dachser to imple-

ment a completely new production and

logistics process within the framework of the

so-called Atlantis project in just four months

at the beginning of 2012, in-depth analyses

of the production process and related sub-

supplier structure had to be carried out. “That

was definitely a case of learning by doing,”

says Helge Wöbke, head of logistics EMEA

& AP at TRW. “Corporate Logistics often

lacks the comprehensive insight into the

details of all production sub-processes that is

required to communicate the resulting needs

in a clear and understandable way to a third

party, i.e. the logistics partner. In a first

fact-finding phase we therefore requested

information from our Atlantis plant about

specific production requirements for the

manufacture of seat belts and packed these as

performance requirements into a call for

tenders.” One key criterion was production

safety and efficiency along the entire pro-

curement chain, for example in the form of

savings potential or integrated supply chain

solutions, either as “cherry picking” or as

single sourcing with just one supplier.

Round table successIn early February 2012, Hubert Diepolder,

key account manager at Dachser Air & Sea

Logistics in Munich, and Wolfgang Scherz,

key account manager European Logistics at

Dachser in Hamburg initiated a discussion

meeting. Chaired by TRW Corporate Logis-

tics, all relevant parties involved in the

process, including the logistics manager from

the Atlantis branch office, who flew in espe-

cially from Cape Town, as well as the respon-

sible operations managers from Dachser

Air & Sea and European Logistics, came to-

gether around the table. “Dachser already

evaluated in its process analysis whether and

Bremerhaven-Cape Town: sea freightsynchronized with production

Meeting in Kempten: Thomas Heidelberg, TRW, and Hubert Diepholder (2nd row from left), Wolfgang Scherz, Helge Wöbke, TRW, and Sascha Herbst (front from left)

EUROPE HAMBURG BREMEN

ZOLL

DOUANE

DACHSER magazine 07

COVER STORY

Operational hubIn order to consolidate the approximately

60 European TRW suppliers within the

scope of procurement logistics for South

Africa, Dachser works according to the

so-called control tower concept. “We create a

central operational hub for suppliers and

customers,” Hubert Diepolder explains.

This function is performed for TRW by

Dachser’s Air & Sea Logistics branch office

in Hamburg in close cooperation with

Dachser’s European Logistics branch office

in Bremen. The control tower coordinates

acceptance of the shipments, booking to

the shipping line and the entire handling in-

cluding external sight inspections, verifica-

tion of the shipment documents, creation of

dispatch documents, export customs clear-

ance and shipment monitoring during sea

transport to Cape Town – and in the worst

case scenario, clarification of any irregulari-

ties. “This is why in our pilot project it’s so

important that the European Logistics Sys-

tems and Air & Sea Logistics business fields

cooperate so closely at all times,” notes

Wolfgang Scherz. After 16 to 19 days at

sea, branch manager Thorkild Nielsen from

Dachser’s country organization in South

Africa assumes responsibility for the cargo

on its arrival in Cape Town, with his ‡

how the processes required in Cape Town

can logistically be performed. Dachser’s

experts at the same time examined which of

the previously standardized logistics services

are in fact still necessary. This earned us our

first economic success. From then on we suc-

cessively developed along with our partner,”

Wöbke notes. The minutes of the meeting in

Hamburg were subsequently translated into

a binding standard operation procedure.

“We get Dachser involved right from the

ordering process,” explains TRW supply

chain manager Thomas Heidelberg. This

means: all suppliers send notification of

delivery centrally to Dachser in Hamburg.

This is where all roads come together, be it by

fax, e-mail or in the next step via dedicated

interfaces,” Heidelberg says, explaining the

demands on the logistics provider. “The sup-

pliers can then enter the transport-relevant

data into the system via an Internet platform

that also serves Dachser as a source of data.”

The advantage of this system lies in its speed

and the transparency of each individual step

in the Tracking & Tracing system. “What is

decisive for us is that our suppliers deliver in

line with the call ups,” Heidelberg continues.

“The earlier along the supply chain we iden-

tify discrepancies, the sooner and more cost-

effectively we can respond.”

Challenges for logis-tics: the original partssupplier is increasinglybecoming a moduleand systems supplierto manufacturers andis integrated corre-spondingly closely into production. While the manufacturingpenetration of auto -motive parts suppliersin 2000 was 69 percent,experts are anti c - ipating that by 2015 it will have risen to 82 percent.

hhWith the control

tower we create a

central operational hub

for suppliers and customers

Hubert Diepolder, key account manager at

Dachser Air & Sea Logistics

One-stop multimodal supply chain management Dachser-style: procurement from all over Europe, consolidation via the control tower in Hamburg,

shipping and delivery to TRW’s production plant in South Africa

CAPE TOWN ATLANTIS

Source: MbTech, University of Ulm

ZOLL

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COVER STORY

08 DACHSER magazine

Integrated solutions are the result of teamworkbetween services provider and customer

The Dachser network is the basis for success

DACHSER magazine 09

COVER STORY

team takes care of customs formalities and

delivers the parts by truck just-in-time to

TRW’s production plant.

For all sides involved in the project, open

communication is absolutely indispensable.

All the more so because the precision-timed

overland freight transport network differs in

many small details from Air & Sea Logistics

management, which is geared to maximum

flexibility. “In order to find a tailor-made,

customized solution in our model-like sce-

nario, all stakeholders from the various

Dachser business fields had to continuously

call into question and in some cases rethink

their own established automatic mechanisms.

This only works if there is mutual trust and a

constant exchange of ideas and experience

between all those involved in the process,”

says Wolfgang Scherz.

Helge Wöbke shares the same conviction:

“TRW’s logistics managers were grateful to

their Dachser colleagues that during the

reciprocal learning phases not every step had

to be immediately settled in monetary terms

and flexible solutions could be found when

unexpected problems arose in production or

somewhere along the supply chain. This soon

strengthened the feeling of having a strong

partner at our side, both locally in Cape Town

as well as in Germany and Europe.”

Pulling together“There are many Dachser hands involved in

this project,” comments Sascha Herbst, sales

manager at Dachser European Logistics

Systems in Bremen. “Only if we all pull

together can we be successful.” Thanks to its

full-coverage overland transport network,

Dachser can guarantee the automotive parts

supplier punctual collection from TRW’s

suppliers and delivery of the components

taking container departures into considera-

tion. The basis for this is pan-European

connections between 36 countries with 3,827

daily precision-timed scheduled services and

fixed transit times. “Thanks to the homoge-

neous IT landscape,” Herbst points out, “all

shipments can be monitored in our Tracking

& Tracing system at all times.”

“Mutual trust can only develop with maxi-

mum transparency. It is this that enables

the players to reach the necessary depth for

problem solving and ultimately find the eye

of the needle all have to pass through,”

Hubert Diepolder adds. In the case of

TRW this has been successful. From April

TRW Automotive headquartered in Livonia,

Michigan, USA, manufactures

braking, steering and wheel

suspension systems as well

as occupant safety systems

and vehicle electronics at

185 locations worldwide. With

sales of over 16.2 billion dollars

in 2011, the company is one of

the world’s largest automotive

suppliers. It supplies more

than 40 major vehicle manufac-

turers and 250 nameplates.

The company name is made

up of the initials of the entre -

preneurs Thompson and

Ramo-Woolridge, and since its

foundation in 1901 has stood

for technical innovation in the

automotive industry.

INFO

In demand worldwide: TRW develops road safety systems

Belt pretensioners:produced in Europe, assembled in South Africa

to December 2012 alone, Dachser shifted

1,486 consignments weighing 1,175 tonnes

and shipped 207 containers to South Africa

for TRW.

“Automotive customers are the drivers be-

hind any process development,” Helge

Wöbke notes. “No matter how big the car

manufacturers are or where they come from,

they all have one thing in common: the

demand for sustainability and savings.”

Cash-in-advance, discounts on potential

sales and kick-back bonuses have been on

decision-makers’ agendas for a long time.

For suppliers, despite already narrow mar-

gins, this translates as a need to make savings

“on the process side”. And as if that were

not enough, they also have to keep asking

themselves self-critical questions: “Is my

purchasing strategy still the right one? Am I

buying from the right partners in the right

parts of the world?” The cooperation between

TRW and Dachser shows that integration

management of multimodal supply chains of

systems suppliers can deliver appropriate

answers to these questions. (Advanced)

thinking pays off. M. Schick

Ingrid Göpfert/David Braun/Matthias Schulz (eds.): “Automobillogistik”

Published by Springer Gabler2nd updated and revised edition 2013ISBN 978-3-658-01581-7RRP € 59.99

You can read more about the cooperationbetween TRW and Dachser here:

FORUM: PEOPLE & MARKETS

10 DACHSER magazine

What does Cargoplus mean for Dachser

customers and their ambitions with respect

to the Maghreb and CIS states as well as

Turkey?

W. Haase: Unlike our European groupage

network, where operations are structured

via complex systems and standards, these

countries require individually adapted ser-

vices. With its Cargoplus services segment,

the Dachser organization offers customized

solutions to meet the specific requirements

of these markets. The respective services

package is always tailored to the cus -

tomers’ specific needs – just like a made-

to-measure suit.

How does Cargoplus serve customers’ in -

dividual needs?

Cargoplus provides the know-how to organ-

ize transport operations to and from these

countries smoothly. This covers aspects such

as document-supported customs formalities,

optimum transport and route planning and

familiarity with the administrative structures

in the countries concerned, giving staff the

possibility to intervene directly where neces-

sary. Staff working with Cargoplus also speak

the local language.

What are the special challenges in the

Cargoplus target destinations?

These vary considerably from country to

country. What they all have in common is de-

tailed and complex stipulations for creating

transport processing documents, depending

on the respective customs regulations and

tariff classification systems. This demands

highly specialized expertise and many years

of experience.

In what countries is Cargoplus so far of-

fered and what new countries are planned

for the foreseeable future?

Dachser currently has dedicated Cargoplus

branch offices in Germany, Sweden, the

Netherlands, Belgium, France, Portugal,

Poland and the Czech Republic. This year

additional branch offices are to be set up in

the UK and Denmark.

How is Cargoplus managed?

Decentralization is the name of the game

here. Because the transport services and cus-

tomer expectations are so individual, our Car-

goplus branch offices are run as autonomous

operating units; albeit in close consultation

with our head office in Kempten.

Which new target countries have you set

your sights on?

In addition to the Maghreb states and

Turkey, I believe business with the CIS states

still offers opportunities for growth. Apart

from the focus on Russia (see also p. 28), I’m

thinking in particular of Kazakhstan and

Azerbaijan. Many German and European

companies are currently investing big time in

these resource-rich nations. This stimulates

both the local markets and imports. CA

RG

OP

LUSCustomer solution

MADE-TO-MEASUREDachser tailors its services offer for pan-European load

forwarding for major customers and servicing of the CIS,

Maghreb and Turkish markets precisely to the needs

of its customers. Wolfgang Haase, Cargoplus division

manager at Dachser, talks to Dachser magazine about

making inroads into emerging markets.

hh In addition to the Maghreb states and Turkey,

I believe business with the CIS states still offers

opportunities for growth

DACHSER magazine 11

FORUM: PEOPLE & MARKETS

Destination Maghreb

On average, Dachser moves 15,000 trailers a year between Europe

and the Maghreb, to Algeria, Morocco and Tunisia, where the company

has dedicated branch offices and operates a local distribution network.

Cargoplus services are:

weekly groupage freight departures to Morocco, Tunisia and Algeria

full and part loads

bespoke customs warehouses in Morocco and Tunisia

own warehouse capacities in Morocco

delivery shipments of automotive supplies to and from Tunisia

SHORTHAND

France

A PLUS FOR CARGOPLUSFrance is expanding its Cargoplus activities.

The base for handling the increasing volume

of pan-European load forwarding to the

Maghreb, Turkey and the CIS states (see

p. 28) has been relocated from Goussainville

nearly 15 kilometres further north to Vemars.

Conveniently situated on the A1 motorway

near to Paris Charles de Gaulle Airport,

the new Cargoplus facility occupies a site of

5,000 square metres served by 16 bays. Oper-

ations manager Matthieu Dauvergne and his

team of 40 manage the facility on an addi-

tional 600 square metres of office space.

Algeria is the largest country in Africa. Future-oriented sectors are considered

to be the construction industry, the health sector and environmental technology.

Tunisia has emerged from the “Arab revolution” stronger. 37 percent of exports

are destined for the mechanical industry and the electronics industry. The country is the world’s

fourth largest producer of phosphates and the third largest exporter of olive oil.

Morocco has become the most important economic power in the Maghreb and by virtue

of its favourable location the region’s most important container handling centre, recently creating tens of

thousands of jobs in the automotive industry.

12 DACHSER magazine

FORUM: PEOPLE & MARKETS

LOGISTICS MASTERS:KNOWLEDGE WINSBig stage for the Logistics Masters 2012: in Kempten the

three winners of Germany’s biggest competition for logistics

students, which is initiated each year by Dachser and the

weekly trade magazine Verkehrsrundschau, accepted prize

money totalling 10,000 euros from the head of Dachser’s

management board, Bernhard Simon. On the top step of

the podium: Daniel Melzow from the University of Duisburg-

Essen. The winners prevailed against over 1,000 entrants

with answers to tricky questions about issues such as

holding fuel prices down, the shock sensor on fork trucks

or intricate calculations of buffer stocks of finished goods.

The best universities and best student council were also

recognized.

3rd Dachser careers day

COURAGE, AMBITION AND PATIENCE

Logistics has prospects for the future. And offers excellent job opportunities.

Dachser invited young professionals to take a look behind the scenes.

140 guests, 11 information stands, three

proud prize winners and interesting lectures:

at the end of November DACHSER held

its third careers day. Students and young

professionals specializing in logistics came

to Kempten to inform themselves about

interesting career options after earning

their Bachelor’s, Master’s and MBA degrees.

A panel discussion was chaired by Andre

Kranke, deputy editor-in-chief of the

weekly magazine Verkehrsrundschau, who

discussed with Bernhard Simon, head of

the Dachser management board, and Pro -

fessor Dr Martin Göbl from Kempten Uni-

versity of Applied Sciences about the value

and right time to take up post-graduate

studies. First, Dachser managing director

Michael Schilling and branch manager

Markus Maurer described their own career

paths “in logistics” and at Dachser. In their

lectures they appealed to the young people

to be courageous, ambitious and patient as

the basic prerequisites for a targeted career.

In his keynote speech, Bernhard Simon

pointed out that theory is not all that counts

in a job: “Practical experience and per -

so nality are also essential for professional

success.”

Award ceremony of the Logistics Masters 2012 in Kempten (from l.): Bernhard Simon, Timm Weber (3rd prize, University ofMünster), Daniel Melzow (1st prize, University of Duisburg-Essen),Fabian Lang (2nd prize, University of Duisburg-Essen), Andre Kranke (Verkehrsrundschau)

DACHSER magazine 13

FORUM: PEOPLE & MARKETS

AT THE FOCUS OF FAMILY BUSINESSES: The five biggest challenges in the next five years

Price competition (70 percent)

Recruitment of skilled staff (69 percent)

General economic development (69 percent)

Innovative capacity (62 percent)

Staff loyalty (57 percent)

NEW STUDY: GROWINGWITH THE FAMILYFamily businesses fare better in times of crisis than oth-

er types of enterprise. This is the conclusion drawn by a

recent study. Despite the debt crisis in Europe, four out

of five German family-owned companies posted revenue

increases in 2012 and 85 percent are expecting steady

or even dynamic growth during the next 12 months.

Nevertheless, family entrepreneurs around the world

feel that governments do not do enough to support

them. This is the result reached by the Pricewaterhouse-

Coopers (PwC) “Family Business Survey”. “The market,

human resources and management topics are the

biggest concerns for family businesses,” says Peter

Bartels, PwC executive board member and head of the

“Family Businesses and Middle Market” division, com-

menting on the findings of the survey. Research

SLEEP MORE, CONSUME LESSScience shows that getting a good rest not only

makes for safer, but also for more economical and

eco-friendly driving.

Truck drivers who are well-rested and alert not only drive more

safely, but also considerably more economically and ecologically.

This also goes for ECO instructors, i.e. truck drivers who offer

professional training for drivers. This is the conclusion reached

by the Daimler research department together with the Centre

for Sleeping Disorders at the University of Regensburg. After

a deprived night’s sleep average fuel consumption rose by as

much as one litre per 100 kilometres. When deprived of sleep, test

drivers no longer drove with a mind to optimally minimizing

wear and tear as trained, but for example activated the service

brake much more frequently. Nor did they drive with the same

degree of anticipation as usual, for example using the cruise

control system in significantly more instances. “The driver’s state

of mind is not only crucial when it comes to safety on the road,

but also for an economical driving style. Only fit and

alert truck drivers are capable of optimally putting

their skills into practice,” explains Siegfried Rothe,

project manager at Daimler’s research department.

In light of these findings, Mercedes-Benz supports

truck drivers’ fitness with appropriately fitted driver

cabs. For example in the “TopFit truck” concept

vehicle, pull straps and a video tutorial turn the

cab into a mobile relaxation studio. For a short

nap, the driver can put his feet up on a bolster

cushion placed over the steering wheel, while the

scent of oranges and gentle music create a relaxing

atmosphere.

IN BRIEF

At international trade fairs the focus is on trends

and innovations. Some of the events Dachser will be

participating at:

02.–04.04. Intermodal South America, São Paulo, Brazil

23.–25.04. Multimodal, Birmingham, UK

23.–26.04. Transrussia, Moscow, Russia

07.–09.05. Logismed, Casablanca, Morocco

04.–07.06. transport logistic, Munich, Germany

Source: PwC Family Business Survey

h In what is possibly economically the

most important question of quality,

it is perhaps ironic that a real banana repub-

lic should be ahead of the field: Costa Rica,

the second-largest exporter of the yellow

fruit ranks first in the “Happy Planet Index”.

The ranking produced by the British

think-and-do-tank New Economics Foun-

dation measures 151 countries according to

the extent to which they deliver long,

happy and sustainable lives for the people

that live in them. The index uses global data

on life ex pectancy, experi-

enced well-being and the

ecological footprint to

calculate this. Since

it was first published

in 2006 the Index has been both popular

and contro versial: can it lead to comparable

results by asking people on a scale of zero to

ten how well their life is going? Doesn’t

wealth play a role in the quality of life a

nation offers? Or the observance of human

rights?

The makers of the ranking are experiencing

the same as all those who dare to measure

quality – regardless of whether referring to

life in general or to individual products

and services. Whenever one person pro -

claims the quality of something, someone

else calls the criteria into question. This is

not a new phenomenon: discussions about

the right definition are in a sense integral

to the often cited “benchmark for quality”.

You shouldn’t look a gift horse in the mouth,so the popular sayinggoes. It would be betterif you did. Because theonly way to really tellthe quality of a nag is to look in its mouth. For centuries, expertbuyers have examinedand felt horses’ teeth.Their condition is an infallible indicator of the animal’s age andhealth and hence itstrue value.

Demanded from all sides and declared the measure of all things, quality has always been a major object ofdispute. Those who attempt to measure it almost inevitably attract critics.

FORUM: ESSAY

14 DACHSER magazine

A MATTEROF OPINION

In the eye of the beholderAnd yet in its original meaning the disputed

word is in fact value-neutral: the Latin

“qualitas” quite simply refers to the nature

of something. Aristotle called it the “charac-

teristic determinacy of substance” and

launched a philosophical discourse on what

determines quality. Discussed by dozens of

thinkers, many today consider the phrase

coined by an Irish philosopher to be ground-

breaking. “Esse es percipi”, George Berkeley

stated at the beginning of the 18th century.

“Being is to be perceived.” Or expressed

differently: quality is in the eye of the be-

holder.

So far, so philosophical. But it was another

child of the Age of Enlightenment that

initially pioneered the economic concept of

quality: the steam engine, the driver of

industrialization. Soon it hissed and droned

in more and more factories, and unskilled

workers performed individual tasks in

increasingly complex production chains.

Making sure the products didn’t fall apart

at the end was the job of specialized indi -

viduals and departments. Their goal: to keep

rejects to a minimum. They probably didn’t

care at all what customers thought about

the thus established quality.

Everything is in fluxHowever, when there is an oversupply of

goods you can no longer win – sorry, sell – any

flowers by taking this attitude. Scientists

realized this from the 1950s. Thus the statis-

tician William Deming caused a stir in

professional circles with the observation

that quality management should not focus

on set standards, but be understood as a

process of continuous improvement. And

Joseph Juran, an industrial engineer, taught

quality in the spirit of Berkeley as “fitness

for use” from the customer perspective.

Today, standards defined to the last detail

determine what quality is – in many cases

a minimal consensus. But whether columns

of standardized performance indicators are

the answer to everything is open to debate.

In the face of so much objective compliance

we should not lose sight of one thing: our

customers’ individual quality requirements.

And the fact that these may constantly

change. S. Ermisch

hhDiscussions about

the right definition

are in a sense integral

to the often cited “benchmark

for quality”

DACHSER magazine 15

FORUM: ESSAY

16 DACHSER magazine

COMPETENCE: TRANSPORT-PROOF PACKAGING

Secure packaging is still the best form of protectionagainst damage incurred during transport. Dachser leverages its entire forwarding experience to support consignors.

SAFEARRIVAL

hBy the end of the journey the entire

cargo area was white. Paint slopped

over the truck bed by the bucket-load; in

every curve of the road it had been hurled

into the corner and had also whitewashed

parts of the walls. “Needless to say that wasn’t

a pretty sight. No matter how carefully our

staff in the transit terminal handle the goods,

during transport they are of course particu-

larly exposed to high centrifugal forces,” says

Gottfried Schatz, Dachser expert in load

security and packaging. “If cargo is not

packaged appropriately for shipping, there’s

a high risk of damage. That’s not the only

reason we are happy to be of assistance when

it comes to choosing the right packaging.”

Schatz’ work began in 2003 with extensive

research. Increasing globalization deman d -

ed new expertise. He accompanied freight

Packaging accompa-nies products from production across alldownstream commer-cial stages through to the final customer.Its continuous optimization is there-fore vital for the logistics system as a whole.

entrusted to Dachser over hundreds of

kilometres to their point of destination.

“While doing so, we discovered that in -

appropriate packaging was responsible for

damage to goods in well over the assumed

ten percent of cases classified as ‘ inadequate

load security ’,” Schatz says.

In insider circles, incorrectly packaged goods

are given curious as well as appropriate

names: a “leaning tower of Pisa”, for example,

is a pallet stacked too high with boxes, so that

the bottom row caves in under the strain.

With every loading and unloading operation,

the load leans over further and the goods

become more and more battered. “It’s the

diversity and sensitivity of the products that

make groupage one of the most difficult

challenges in packaging logistics,” says engi-

neering graduate Marcel Ströhmer from the

Fraunhofer Institute for Material Flow and

Logistics (IML). For the past 26 years, the

Institute has been testing packaging, pallets

and all manner of unit load securing equip-

ment at its in-house packaging laboratory in

order to identify potential for improvement

in advance or minimize damage and the

associated costs and loss of image. Corru -

gated cardboard, plastic and wood account

for the lion’s share of transport packaging,

and differ considerably in terms of quality.

“Companies are in a permanent process of

DACHSER magazine 17

COMPETENCE: TRANSPORT-PROOF PACKAGING

optimizing materials,” Ströhmer says. “Cur-

rently bioplastics or fibre glass-reinforced

plastics are being tested. So-called honey-

comb cardboard is combined with wood. In

the pallet segment companies are currently

developing lightweight plastic pallets, both

as one-way pallets made from plastics

recyclates and re-usable pallets.”

All this clearly demonstrates that there is

no standard solution. “If customers’ goods

arrive damaged then naturally the alarm

bells start ringing,” says Schatz. In many

cases he is able to seamlessly document

where the causes of the dilemma lie, and

passes this knowledge on in an advisory

capacity to the customers and the branch

offices. “The emphasis here is first and

foremost on objective cooperation. We then

always look at the entire system. Often a

small change can make a big difference,”

Schatz says. A recommendation the Fraun-

hofer Institute also endorses. “In such cases

you have to examine the pallet, box or bucket,

stretch foil and load securing equipment.

Every single component can contribute to

stabilizing the load. Small savings in

packaging costs can incur high secondary

costs,” Marcel Ströhmer explains. These

are the sort of tips and recommendations

that Gottfried Schatz collects and passes on

to the customers. “This supports an objec -

tive discussion and encourages customers

not to scrimp on packaging.” Because to do

so is a false economy.

Schatz’ most important packaging rule: the

goods should never project beyond the edge

of the pallet. “Try to imagine porcelain

washbasins,” the Dachser employee says,

“that bump up against each other in every

curve: it’s bound to end in disaster.” In the

case of buckets of paint, the wire handles

have to be folded inwards – they were the

reason for the unbidden colour wash in the

loading space. For larger items such as stoves,

hh If cargo is not packaged appropriately for

shipping, there’s a high risk of damage.

That’s not the only reason we are happy to be of assistance

when it comes to choosing the right packaging

Gottfried Schatz, Dachser expert in load

security and packaging

care must be taken to ensure they have a firm

stand. It’s better to plan a bigger pallet and

more space; that increases stability.

For preference Schatz would choose shrink-

wrapped rectangular blocks. The foil should

be strong, “not the stuff you wrap your sand-

wich in”. “In the field of unit load securing

new stretch foils are currently being

developed with high stretch properties of up

to 300 percent as well as improved puncture

and tearing resistance,” Ströhmer says.

However, the consignor is under no obli -

gation to give consideration to the quality of

packaging; this is merely a recommendation

on Dachser’s part. Every customer takes their

own decision about what packaging to use;

they after all bear the responsibility. For

Gottfried Schatz what’s important is how

the goods are consolidated. They should form

a unit, be well-wrapped and stable: “Just like

in real life; mutual support makes things

a whole lot easier.” T. Schlosser

If well-packed, bulky goods and ... ... small components travel better

COMPETENCE: PACKAGING MATERIALS

18 DACHSER magazine

The industry and retail sectors need europallets of good quality. However, there arefewer and fewer undamaged load carriers in circulation. The tried-and-tested systemis in a crisis and prices are spiralling. New exchange processes are needed.

BETTER

SWAP

Relying on stable exchange systems atDachser: Petra Di Nolfiand Thomas Jäger

DACHSER magazine 19

COMPETENCE: PACKAGING MATERIALS

Network & Operations Management divi-

sion manager at Dachser Food Logistics.

Broken slatsCompanies in the food industry, especially,

require pallets of the highest quality – not

only for reasons of hygiene. In highly auto-

mated industrial companies, splinters of

wood or jutting blocks can cause the materi-

als handling equipment to break down and

lead to delays in production and logistics.

Furthermore, pallets classified under the

new GS1 system as unfit for use should

no longer be put into circulation in the first

place. This is prohibited under the German

Product Safety Act. We only need to imagine

what could happen if a fully laden pallet

were to collapse in a high-shelf warehouse

because the slats are broken or blocks are

twisted the wrong way. Paint or remnants ‡

h It’s a matter of give and take. Europe-

wide an estimated 450 million euro -

pallets are exchanged between retailers,

industry and logistics providers. Whenever a

truck delivers one of these reusable pallets

with goods to a consignee, it takes an empty

one back in return. On its next tour to the

manufacturer, the empty pallet is exchanged

for a full one, and so on. This exchange sys-

tem has functioned by mutual agreement

for decades. But recently woodworm has got

into the system. The reason is that more

and more frequently, logistics providers have

exchanged flawless pallets with consignors

and received defective or damaged pallets

back from consignees. But what counts as

good and what as bad has in the past often

been a point of contention. At the end of last

year, industry, retailers and logistics providers,

under the umbrella of GS1 Germany, there-

fore agreed on a clear and generally accepted

system for differentiating the quality of

pallets (see box). The sector saw this as an

opportunity to settle the conflict regarding

quality, processes and exchange risk. Used

pallets are now classified as A, B or C, or

unusable according to universally accepted

quality standards.

An increasing number of retail enterprises

no longer handle management of pallets in

their regional logistics centres themselves,

but entrust this instead to specialized pallet

service providers. Instead of delivering full

pallets and receiving the same number of

empty ones in return, drivers are given pallet

slips which they can redeem (subject to a

charge) against empty pallets at the pallet

service provider’s depots kilometres away. In

the meantime it is also common practice

in the respective central warehouses for re-

tailers themselves or their service providers

to sort out better quality europallets and thus

remove them from circulation for a time.

As of late not only are pallets of A and B

quality being removed from circulation, but

an increasing number of C-quality pallets are

as well. Yet these pallets are in fact at the

heart of the exchange system. Consequently,

there simply aren’t sufficient usable pallets

available any more for a one-to-one swap at

the central warehouse because drivers are

not permitted to reject sub-standard pallets

from the stacks of pallets offered to them.

“We are noticing that the overall pallet

quality on the market is being driven down-

wards as a result,” comments Petra Di Nolfi,

New: standardized quality classification Since the end of 2011, a general

quality classification for europallets

has been in force. GS1 (Global

Standards One), an international

organization that develops and

implements standards for the

improvement of value chains,

coordinated the standardization

process. The committee included

representatives from the Bundes -

verband Güterkraftverkehr Logistik

und Entsorgung (German associa-

tion for haulage, logistics and

waste), the Deutscher Speditions-

und Logistikverband (German

Freight Forwarders and Logistics

Association), the Gütegemeinschaft

Paletten (EPAL National Committee

Germany) and the Union inter -

nationale des chemins de fer. For

Dachser, Thomas Jäger, head of

the Containers and Dangerous

Goods Management department,

was also involved in the develop-

ment of the standard.

INFO

A europallet consistsof 9 wooden blocks, 11 slats and 78 nails. It is 1,200 mm long,800 mm wide and 144mm high, with an areaof 0.96 square metres.With an unladenweight of 22 kg it cancarry up to 2 tonnes.

COMPETENCE: PACKAGING MATERIALS

20 DACHSER magazine

of foil, tapes or adhesive labels also have to

be removed with considerable effort before

the pallet is reused. All this costs time and

money. “Industry and logistics providers

are the ones left to foot the bill,” Di Nolfi

concludes. Replacement purchases in 2012

rose by almost 30 percent, alone because of

the substantial decline in the quality of

EU pallets in the pool. Additional adminis-

trative expenditure for the special pooling

slips is another factor. Along with the charge

for redeeming pallets at the depot, pallet

for pallet considerable additional cost is in-

curred. These additional costs are becoming

more and more of a problem for Dachser.

After all, Dachser Food Logistics alone

transports some 14 million pallets per year.

Of these, around ten million find their way

to the central warehouses of the German re-

tail food sector. Dachser has to “upgrade”

around a third of these pallets to quality class

B before delivering them back to industry.

However, Dachser customers nevertheless

need not be concerned about no longer

obtaining pallets in the desired quality.

“We offer our customers a pallet exchange

service,” explains Thomas Jäger, head of the

Containers and Dangerous Goods Manage-

ment department at Dachser. “We have the

administration in hand. However, we do have

to pass on the additional costs that arise

because of the new concept.” Customers in

future have the choice of either accepting the

rising costs and continuing to receive their

pallets in the desired quality direct from

Dachser, or alternatively for direct transports

obtaining the original pallet slips and re-

deeming them against pallets themselves

from the pallet service providers. To keep

time and expense for all concerned as low

as possible, Jäger appeals to all companies

“to utilize the GS1 platform in order to bring

the business exchange process up to stan-

dard.” Perhaps then it will be possible to

establish an equal balance between giving

and taking. A. Heintze

hhWe offer our

customers a pallet

exchange service

Thomas Jäger, head of theContainers and Dangerous

Goods Management department at Dachser

The condition determines a pallet’s (exchange) value

A universal corporate mission statement unites Dachser’s employees around the world. It is the magnetic core that holds everything together.More than ever in times of growth.

h It’s the biggest truck tarpaulin in the

world. Designed in yellow-and-blue

with the Dachser logo. Exactly the same as

you see on the roads every day. Two years

ago, this custom-designed edition formed

the basis for a gigantic puzzle made up

of 25,000 cut-out squares. The pieces of

tarpaulin turn each copy of a small book that

is personally presented to every Dachser

employee around the world into something

unique. Its content: the corporate mission

statement of the Kempten-based family

enterprise (see box).

“Each book is individualized and each piece

of tarpaulin is numbered, so that every

member of staff receives their own individual

tarpaulin square and is thus part of the

whole,” explains Alexander Windhorst, crea-

tive managing director at Serviceplan. The

agency supported Dachser with the imple-

mentation. The idea behind it: “Everyone

realizes they are not alone. Everyone feels

that only together they create a large, co -

hesive whole: I am Dachser.”

This form of mission statement communica-

tion also caused a stir outside the company.

In the German Dialogue Marketing Prize,

the most important dialogue marketing

contest in the German-speaking world, the

concept won medals in as many as three

categories (Mailing, Microsite and Service).

Reaching out to people“If you want people to think favourably and

speak positively about your corporate cul ture,

you have to reach out to them and involve

them, and do so at all nodes in the commu-

nication chain. And if you want everyone

across the organization to contribute to this

process, you have to start with those people

who are the company’s most important dis-

seminators: with your own staff,” Bernhard

Simon, head of the Dachser management

board, believes.

For Dr Andreas Froschmayer the corporate

mission statement is key in creating a growth

dynamic such as has accompanied Dachser

throughout its entire corporate history.

Especially at times when, as with the take -

over of Graveleau (1999) or recently Azkar

and Transunion, the network and the number

of employees grew overnight. “At such times,

the mission statement and its implemen -

tation become discussable reconstructions of

the corporate philosophy. Regardless of how

the market environment changes: Dachser’s

mission statement remains the magnetic

core that holds everything together. The

appeal lies in disseminating the message

behind it over and over again and carrying it

to different countries.” For the many new

staff members, a new edition of the mission

statement books is therefore currently in

preparation. As one-offs in an equally unique

and constant system of values. M. Schick

A COHESIVEWHOLE

290 square metres of tarpaulin became 25,000 individual puzzle pieces

1. Entrepreneurship and the

courage to innovate

2. Integrative responsibility

3. Sustainability

4. Loyalty and commitment

5. Integrity and honesty

6. Openness and respect

DACHSER’S VALUES

hhThe most important

disseminators in

any company are its own staff

Bernhard Simon, head of the Dachser management board

DACHSER magazine 21

COMPETENCE: CORPORATE VALUES

The world and its markets are moving ever closer together. Thomas Reuter, managing director of Dachser Air & Sea Logistics, talks to Dachser magazine about network competence and the motivating effect of growth.

NETWORKED WORLD

NETWORK: AIR & SEA LOGISTICS

22 DACHSER magazine

Mr Reuter, with GLOBAL 2.0 Dachser is

pursuing a strategic growth programme

for air and sea freight. What goals are you

focusing on?

Thomas Reuter: GLOBAL 2.0 is about

expanding our international operations.

With this strategic approach, Dachser has

further consolidated the growth objectives

formulated in the “GLOBAL” focus pro-

gramme back in 2006. The role of the Air

& Sea Logistics business field is to more

closely link the new procurement markets,

first and foremost in the BRIC states, with

the world’s leading manufacturing nations.

In fiscal 2011, Air & Sea Logistics was the

biggest growth driver at Dachser with an

increase of 17 percent. How do you see this

development in light of your continued

ambitious goals and at the same time a

significantly cooled world economy?

We will remain ambitious and are aiming to

double our current gross annual revenue in

the Air & Sea Logistics business field to

2.2 billion euros over the next five years. Over

the same period the number of employees is

set to increase from 3,200 today to 5,000.

And our global network is set to expand

from the present 34 to 49 countries with a

total of 220 branch offices. Cyclical fluctua-

tions such as were triggered in 2012 by

restrained consumer behaviour across Europe

are perfectly normal. In 2013 we are planning

to move forward again.

Will you primarily be focusing your efforts

on the growth driver China?

We are not unilaterally targeting China

but the emerging markets in general, and

we especially want to expand our share of

freight traffic between Asia’s own growth

regions. To this end we have recently opened

branch offices in Malaysia, Singapore and

Vietnam. But at the same time we have

not scaled back our freight volumes with

China either.

What role do joint ventures and acqui -

sitions play in the expansion of your net-

work?

Dachser is a family enterprise and as such

must finance all acquisitions through its

own capital resources. This determines their

particular quality. We are not interested in

buying out competitors just for the sake of

it. When we make an acquisition or enter

into a joint venture our aim is to build up

viable partnership structures, take over func-

tioning teams and together develop markets

in line with Dachser’s mission statement.

Through the acquisition of Transunion, for

example, we have added another level to our

network and can now offer our customers an

excellent presence in Spain and Turkey,

whilst also complementing our network in

Latin America. What’s more, like Dachser

Transunion is a family enterprise, which

means it has a similar mindset.

What logistics services do internationally

operating customers expect of Dachser as

a globally positioned services provider?

Increasingly they not only expect freight

transport from A to B, but more complex

services. In order to network their flows

of goods they also require forwarding inte-

gration and standardization. Take our branch

office in Darmstadt, for example. There,

within the framework of the so-called

“buyers’ consolidation” service, we load sea

freight containers with goods from different

suppliers, ship them via our ocean freight

partners and coordinate what from the

respective suppliers has to be collected at

the various departure points in China.

Thus, for example, we also handle export

clearance, Tracking & Tracing and delivery

to the consignee warehouse or, in the case

of components, direct to the production line.

What does this mean for the alignment

of your IT infrastructure?

Given the scope and related complexity

of our services, a globally networked IT land-

scape is absolutely indispensable, especially

if we want to avoid interface problems with

our customers. To this end we have developed

Othello, a uniform group-wide proprietary

system, which has already been rolled out

in a number of countries. This is by no means

trivial if you consider that this international

software also has to take account of a num-

ber of country-specific features.

When will Othello be implemented every-

where?

We are well on the way, but these things take

time – especially if you remember that over

the past five years Dachser Air & Sea Logis-

tics has grown from nine to 34 countries.

Software development always takes some

time to catch up with this expansion because

new unknowns tend to arise that have to

be overcome.

What qualities must your staff possess

and how do you familiarize them with

Dachser’s standards and practices?

First I welcome the fact that at Dachser

we experience so many varied cultures and

temperaments in the different countries.

However, the world over we strive only to

designate responsibility to executive man-

agers who are themselves entrepreneurs and

adhere to a set of Dachser-compliant values.

On this basis we build decentralized corpo-

rate structures with country managers who

report to the responsible regional manager

or directly to me. This works very well.

Is Dachser’s mission statement understood

in the same way all over the world?

Yes. Let me give you an example: two years

ago we set up a joint venture with Jonen

Freight. Initially, the staff were worried that,

as so often experienced elsewhere, this might

result in the shedding of jobs. This was not

the case. On the contrary. Our aim is to

generate more business with our new part-

ners and employees and therefore generally

we successively create a large number of new

jobs. The staff soon recognized this and

have since come to appreciate the active

corporate culture of a family business.

Whether palm greasing or baksheesh: not

everywhere in the world are business prac-

tices clean and fair. How does Dachser

deal with this?

In a company the size and importance of

Dachser there is no place for unfair business

practices. The management board has there-

fore defined clear compliance rules which are

known to all management staff. If a business

deal falls through because of our zero toler-

ance approach, we are happy to live with that.

DACHSER magazine 23

NETWORK: AIR & SEA LOGISTICS

Thomas Reuter,

55, joined Dachser in 1978 and has

climbed the logistics career ladder

from the bottom up. The transport

specialist has been a member of

Dachser’s management board since

2006, with responsibility for the

Air & Sea Logistics business field.

PERSONAL FILE

hh I believe Dachser has enormous potential,

especially in the international sphere Thomas Reuter

What motivation and personal goals do

you link with the future course of Dachser

ASL?

I am an optimist and a man of conviction.

I believe Dachser has enormous potential,

especially in the international sphere.

Growth is therefore something I experience

first and foremost as a motivating force

and not as a source of pressure. Perhaps also

because I am supported by an excellent team.

COMPETENCE: SEA FREIGHT

24 DACHSER magazine

TRADINGWITH THE WORLD

Waterways connect continents and markets.

Dachser Air & Sea Logistics is at home at the world’s most

important hubs.ANTWERP 8.64 m TEUs*Goods transshipped: coffee, (petro)chemical products, automotive, energy products, metals and steel

Destinations: Europe, Near, Middle and Far East, North and Central America, Africa

Characteristics: Antwerp is Europe’s second-largest container port and a major transit hubfor groupage transports.

Rüdiger Klug, general manager, Dachser Air & Sea Logistics Germany

LEIXÕES 0.51 m TEUs*Goods transshipped: stone, iron, steel, oil products, beverages, paper and cardboard

Destinations: USA, Angola, Cabo Verde, Benelux, UK, Spain, Algeria, Morocco

Characteristics: Leixões has the largest seaport infrastructure in northern Portugal and has excellent connections to major economic and trade centres via road, rail andmaritime routes.

Jorge Andrade, country manager Portugal, Dachser Air & Sea Logistics

SANTOS 2.98 m TEUs*Goods transshipped: foodstuffs, automotive parts and machinery

Destinations: North Europe and the east coast of North America

Characteristics: Santos is the largest port inLatin America. Its positive development ideallycomplements Dachser’s growth objectives.

Roberta Tilkian Graff, sea freight manager, Dachser Brazil

NAVA SHEVA 4.70 m TEUs*Goods transshipped: automotive accessories, machinery, textiles, crafts, pharmaceutical products

Destinations: the whole world, especially Europe, the Far Eastand the US

Characteristics: A global port in the true sense, which handles 65 percent of India’s containerfreight. Excellent connections to India’s infrastructure.

Swapnali Kurale, operations manager, Dachser India Pve. Ltd.

LOS ANGELES 7.90 m TEUs*Goods transshipped: electronics, cosmetics, audio equipment,foodstuffs

Destinations: Hamburg/Bremen, Hong Kong, Shanghai, Singapore, Mumbai

Characteristics: Long Beach and Los Angeles are the most important ports in the US accounting for up to 45 percent of the total volume. Sustainability is a big issue.

John Barbasetti di Prun, director Ocean Freight Product, Dachser USA

DACHSER magazine 25

COMPETENCE: SEA FREIGHT

HAMBURG 9.04 m TEUs*Goods transshipped: investment goods, machinery and components, chemical and pharmaceutical products, electricalequipment, rubber and plastic parts and products for the automotive industry

Destinations: Asia, especially Hong Kong and Shanghai, South America, especially Santos, Brazil

Characteristics: Hamburg is the gateway forworldwide groupage forwarding.

Günther Laumann, Global Management Ocean division manager, Dachser Air & Sea Logistics

ROTTERDAM 11.88 m TEUs*Goods transshipped: machinery, high-tech equipment, chemicals

Destinations: Far East, especially China and India

Characteristics: A highly organized, reliable and flexible port with an excellent service portfolio.

Jan Willem Das, ocean freight manager, Dachser Netherlands

HONG KONG 23.10 m TEUs*Goods transshipped: textiles, shoes, bags, electronics and computer components

Destinations: Germany, France and the Netherlands

Characteristics: Hong Kong’s long history as a free port is attractive for consignors from around the world. They benefit from simple and low taxes.

Marco Chan, sea freight director Far East, Dachser Far East

SHANGHAI 32.52 m TEUs*Goods transshipped: lifts and escalators, fittings, textiles, tools, computers and machine components

Destinations: Europe, South-East Asia, USA, Latin America, India

Characteristics: Shanghai Yangshan Port is one of the biggest and most important in the world. Thanks to its geographical location and statesubsidies, it has the potential to make Shanghai the centre of international logistics.

Echo Jin, general manager Sea Freight North China, Dachser Shanghai

SINGAPORE 31.60 m TEUs*Goods transshipped: electronics, machinery, consumer goods,production technology, oil products

Destinations: Asia-Pacific Basin, Europe, USA

Characteristics: The world’s busiest transshipment port.

Matthew Ong, Management & Corporate Development, Dachser Singapore Pve. Ltd. * TEU (Twenty-foot Equivalent Unit)

Port handling volume 2012

26 DACHSER magazine

Effective 15 January, Dachser acquired its

Iberian logistics partner Azkar. Dachser has

held a stake in the Spanish market leader in

the industrial groupage segment since 2008.

Spain

JOINING FORCES WITH THE NUMBER ONEGrowth in a new dimension: with the acquisition of its Iberian logistics

partner Azkar, Dachser is significantly strengthening its pan-European

overland transport network.

Azkar ASFounded: 1933

Head office: Madrid

Revenue: EUR 367 million (2011)

Logistics area: 500,000 m2

Fleet: 2,650 vehicles

www.azkar.com

SHORTHAND

Investing in expansionAzkar operates at a profit despite the dire

state of the Spanish economy. Against this

background the company will for the time

being continue to operate under the same

name. The previous CEO, José Antonio

Orozco, will in future act as president of

the board of directors; the position of

managing director (CEO) will be filled

by Juan Antonio Quintana.

In Portugal, the integration of both compa-

nies will create one of the country’s leading

logistics providers. From the customer per-

spective on the Iberian Peninsula, Azkar

president José Antonio Orozco looks opti-

mistically to the future: “We are the number

one in Spain. With Dachser behind us, we

will be able to secure our future and have

access to a global logistics network.”

Moving forward together with Azkar: Bernhard Simon (centre), Juan Antonio Quintana (left) and José Antonio Orozco

Azkar is one of the biggest logistics providers

on the Iberian Peninsula. The company gen-

erated EUR 367 million in 2011 with a staff

of over 3,000 working in 91 branch offices.

Additionally, the company is supported by

some 2,000 external drivers.

For Bernhard Simon, head of Dachser’s

management board, the timing of the in -

vestment in Spain is also “indicative of

Dachser’s confidence in Europe’s future.

The rationale behind the acquisition aims

at securing the future growth of both compa-

nies.” (see also page 32)F

NETWORK COMPETENCE

NETZWERK

DACHSER magazine 27

Transunion locationsSpain: Valencia (head office), Barcelona, Alicante, Murcia,

Sevilla, Vigo, Madrid and Bilbao

Turkey: Izmir (head office), Istanbul and Mersin

Peru: Lima

Argentina: Buenos Aires

Mexico: Mexico City

INFO

+++ BENELUX REGION UNDER SINGLE MANAGEMENT +++ Already responsible for the country

organizations in the Netherlands and Belgium, country manager Aat van der Meer has also taken charge

of Dachser Luxembourg with effect from 1 January. The Dachser location in Grevenmacher lies between

Trier and Luxembourg City. Opened in 2011, the facility has a transshipment area of a good 2,700 square

metres and 18 bays. It currently employs a staff of 26. Van der Meer: “We can imagine this branch office

developing into a hub for transports to south-west Europe. The three countries form an ideal combi -

nation, and not just because of their shared economic history. Mouscron in Belgium is our link to France, Zevenaar on

the German-Dutch border our bridge to Germany and Scandinavia, and Waddinxveen and Mouscron are our gateway

to the UK.” There are also plans in the pipeline for the rest of the BeNeLux region: “Depending on the rate of growth,

sooner or later we intend to open a branch office in the north of the Netherlands.” +++

+++ NEW BRANCH OFFICE IN PORT ELIZABETH +++ Dachser South Africa

is expanding its national network. The new branch office in Port Elizabeth is the

fourth location in addition to Johannesburg, Durban and Cape Town. Thomas

Reuter, managing director Dachser Air & Sea Logistics explains the strategy: “This

will enable us to offer our customers in particular in the automotive industry

a transport solution and a connection to our global logistics network from Port

Elizabeth to the rest of South Africa”. Harold Thomas has been appointed

manager of the Port Elizabeth branch office. With over 30 years of experience

in the freight industry, Thomas will lead a team of highly skilled staff recruited

from the Port Elizabeth area. +++

South Africa: keeping a steady growth course

Aat van der Meer

Federico Camáñez and Thomas Reuter (from left)

+++ DACHSER ACQUIRES TRANSUNION +++ Effective retroac-

tively from the beginning of the year, Dachser has acquired the

Spanish air and sea freight forwarder Transunion S. A. – subject

to approval by the antitrust authorities. The company employs a

staff of 235 at 15 locations. In addition to nine offices in Spain

the company is also represented in Turkey, Argentina, Peru and

Mexico. Founded in 1978, Transunion (TU) is expected to post

revenue of EUR 95 million in fiscal 2012. CEO Federico Camáñez,

who has in particular decisively influenced the international

development of Transunion over the past 20 years will continue

to be responsible for the management of the entire group and

will report directly to Thomas Reuter, managing director Dachser

Air & Sea Logistics. (see interview p. 22) +++

28 DACHSER magazine

NETWORK: CIS STATES

Landmark: St. Basil’s Cathedral in Moscow’s Red Square

DACHSER magazine 29

NETWORK: CIS STATES

hAzerbaijan, Kazakhstan, Uzbekistan,

Kyrgyzstan... and at the top of the list

Russia. Evocative names – and the countries

they stand for harbour huge growth potential.

Investors regard the market opportunities

offered by the “Commonwealth of Inde-

pendent States” (CIS) as increasingly prom-

ising thanks to the region’s abundance of

natural resources. The independent successor

states of the former Soviet Union are home

to around 280 million people – a vast market

with an enormous thirst for consumption

that its inhabitants are keen to quench.

This is explained by the fact that rising

commodity prices have significantly boost -

ed the revenues of energy exporting coun -

tries like Azerbaijan, Kazakhstan, Russia,

Turkmenistan and Uzbekistan. At the same

time, exporters of copper, cotton or metals,

for example Armenia, Georgia, Tajikistan

and the Ukraine, have earned higher revenues.

This also has spill-over effects on other areas

of the economy – with the region expe -

riencing one of the longest phases of strong

economic growth since gaining independ-

ence in 1991.

Russia leads the field and has for several years

been among the most attractive and fastest-

growing economic regions in the world. ‡

BUILT ON

ENERGYThe markets in the CIS states are key markets of thefuture. This is especially true of Russia, one of theworld’s biggest growth markets and increasingly an important link between Europe and Asia.

NETWORK: CIS STATES

30 DACHSER magazine

In 2011, bilateral trade attained a volume

just short of 75 billion euros, almost a third

higher than the previous year. In 2012 this

figure was again surpassed. The main drivers

are oil and natural gas. Germany obtains over

40 percent of its gas and a third of its crude

oil supplies from Russia. In return, Russian

companies import machinery, automotive

parts, chemical and electronic products as

well as consumer goods from Germany and

western Europe. As prosperity has grown

over the past few years, demand has grown

with it. In response to this trend, Dachser

has in the meantime established three loca-

tions in Russia.

The consumer and investment market in par-

ticular is experiencing sustained upturn.

Dachser has offered freight services from

Germany to the CIS states since 2006. Two

years later a joint venture was set up in Rus-

sia, starting out with a staff of 30 that

has in the meantime swelled to 120. “Russia

is the link between Europe and Asia. At

home on both continents, we build a bridge

between European countries and markets in

China, South-East Asia and India,” says

Anton Maryukhta, managing director of

OOO Dachser, the Russian country organi-

zation. At the focus of this link with Europe

is the Cargoplus services portfolio. Via spe-

cially established branch offices the logistics

provider offers customers made-to-measure

services packages in the part and full load

segments that cannot be provided via the

groupage network. (see also page 10/11).

Russian dynamoRussia is Germany’s biggest trading partner

in the East. The German-Russian Foreign

Chamber of Commerce estimates the num-

ber of German companies in Russia at over

6,000. These include heavyweights such

as E.ON, Volkswagen, Bosch, Henkel,

Beiersdorf and Siemens. But numerous

medium-sized enterprises have also long

since discovered the opportunities present in

Russia, the growth dynamo of the East.

Conversely, more and more Russian com -

panies are doing business with Germany.

At the heart of the CIS states: the new Moscow

“For Cargoplus Dachser France

business relations with the CIS

states represent an excellent

springboard for the development

and diversification of our activities.

The noticeable upswing during

the past few months and the

reliability of our service that is highly

valued by our customers give us

reason to feel very optimistic.”

Daniel Lucas, head of Cargoplus Dachser France

“The CIS states continue to hold

large potential for Indian industries.

The trade between India and CIS

countries is expected to double

by 2020 and touch USD 30 billion

by then. Pharmaceuticals, engineer-

ing, petroleum products, timber,

furniture products and IT services

are the main constituents of this

trade profile.”

Zarksis B. Munshi, general manager, Mumbai,Dachser India

“Rich landscapes, millions of

inhabitants and a vast market with

a huge demand for products and

services: the CIS states present

enormous opportunities, but also

numerous challenges.”

Joanna Tomczyk, tariffs & calculation specialist,Lodz, Dachser Poland

VOICES

Russia, the heart of the CIS states, is thesecond-biggest country on earth withan area covering over 17 million km2. It spans 11 time zonesand reaches from the Baltic to the Pacific.Three quarters of theland mass lie in Asia.

On Moscow’s streets

DACHSER magazine 31

NETWORK: CIS STATES

“Our main facility is in Moscow with a staff

of around 90,” comments Wolfgang Haase,

Cargoplus division manager at Dachser in

Kempten. With five railway stations, ten

motorways, one large and five smaller air -

ports, the 15-million-inhabitant metropolis

is Russia’s main transportation hub and links

the capital with the whole world. “Another

15 employees work some 650 kilometres

away in St. Petersburg,” Haase adds. The

former city of Leningrad is Russia’s second-

largest city after Moscow and is located in

the north-west of the country on the estuary

of the River Neva on the eastern side

of the Gulf of Finland. The seaport of St.

Petersburg is Russia’s largest, handling

around one fifth of Russia’s external seaward

trade. The sea link to Hamburg is ideal

for trade with Germany in particular, with

St. Petersburg being the main port for

supplier and distribution traffic to and

from Hamburg. From January to July 2012

hhWe offer assistance,

for example

with document creation

Wolfgang Haase, Cargoplus division manager

at Dachser Kempten

Commonwealth of Independent States, CISForm: loose confederation of

11 constituent republics of the

former Soviet Union

Founded: 1991

Total area: 21.5 million km2

Population: 268 million

Founding members:

Russia, Belarus and Ukraine

Additional members:

Armenia, Azerbaijan, Kazakhstan,

Kyrgyzstan, Moldova, Turkmenistan,

Tajikistan and Uzbekistan, Georgia

(1993–2009)

Main export partners: China,

Germany, Netherlands, Italy, Turkey

Main import partners: Germany,

China, Japan, Korea, USA

SHORTHAND

alone, 317,000 standard containers were

transported between the two ports.

“Our third location in Russia is in Nizhnyj

Novgorod, some 450 kilometres east of

Moscow at the confluence of the Oka and

the Volga,” Haase says. From here, ships

depart for the Caspian Sea, Baltic, White

Sea and Black Sea, as well as the Sea of Azov.

The former mercantile city, which from

1932 to 1990 was called Gorki, is now a

major industrial centre and Russia’s fifth

largest city with a population in excess

of 1.25 million inhabitants. Tradition-rich

companies such as car manufacturer GAZ

have their base here.

Comprehensive supply chainsolutionsAt its three Russian locations, Dachser

offers comprehensive supply chain solutions

from a single source. From transport, via

customs clearance, warehousing, order pick-

Key import and export goods (1st half-year 2012; in billion euros)

Russian exports are dominated by fuel transports. Industrial goods are typical imports.

Source: Rosstat

143.1

18.1

11.9

14.6

9.1

5.7

Fuel

Metals and metal products

Products of the chemical industry

Plant and machinery

Food and agricultural produce

56.4Plant and machinery

Exports

Imports

Products of the chemical industry

Food and agricultural produce

17.0

ing, through to domestic Russian distri -

bution. 13,000 pallet spaces in Moscow,

7,000 in Nizhnyj Novgorod and 2,000 in

St. Petersburg provide the optimum basis

for implementing warehouse projects.

For German investors, the Russian market –

like the rest of the CIS countries – is

attractive but difficult to serve without a

competent logistics partner. “We offer our

German customers comprehensive support

and assistance, for example with document

creation, the prerequisite for smooth trans-

port flows,” Haase says. For customers that

do their buying in different countries and

wish to consolidate their goods at one point,

Dachser offers comprehensive solutions.

“The intercontinental link allows us to offer

attractive and bespoke solutions worldwide,”

Haase concludes. An evo cative promise. For

the CIS states as well as for their future-

oriented market partners. K. Fink

BUSINESS LOUNGE: DACHSER FACE-TO-FACE

32 DACHSER magazine

BERNHARD SIMON TRIFFT...DR WALTHER VON PLETTENBERGYes to Europe: Bernhard Simon spoke with the managing director of the German Chamber of Commerce for Spain, Dr Walther von Plettenberg about entrepreneurial opportunities on the Iberian Peninsula.

Mr Simon, Spain – for many years the epitome of sun, holidays, good wine, evenbetter football. How has the perception ofSpain changed since the crisis?Bernhard Simon: I see Spain as a country

that despite going through turbulent times

in the past couple of years has managed to

develop extraordinary business opportunities

regardless of facing major problems. Our

cooperation with the logistics provider Azkar

since 2007 has given us an insider view and

we are therefore very well aware that Spain

has highly professional, enterprising people

who know exactly what they are doing and

pursue their goals with great discipline and

flexibility particularly now when the country

is feeling the effects of the crisis.

Dr Walther von Plettenberg: You quite

rightly mention professionalism. In what is

now the fifth year of the crisis, it is also

quite remarkable from the macroperspective

with what astonishing élan Spain is doing

its homework. The reform measures imposed

by the state are largely supported by the

population. We can now see light at the

end of the tunnel. At the end of 2012 Spain

posted a balanced current account for the

first time in many years. A stop was put to

the excesses of the lending sector, unit labour

costs declined and productivity was on the

up. The country is once again finding its

feet. That makes me optimistic for Spain’s

economy.

Nevertheless the recession is still not over-come. What does this mean for investorsand trade partners?v. Plettenberg: For trade partners, the

crisis-induced restraint in consumer spend-

ing means that exports to Spain remain weak.

In the case of investments it’s a different

picture. There’s a renewed demand for

Spanish securities and bonds. Important

international investment funds are back. It’s

a good time for companies to enter into

strategic partnerships in Spain. Apart from

Dachser, companies like Linde, Fermacell

or Happich have also chosen to take this

route. For many companies the country

is also interesting because they see it as

an ideal stepping stone to North Africa or

Latin America.

B. Simon: For Dachser the acquisition of

Azkar and the air & sea logistics provider

Transunion was an objective planned over

the long term. And it wasn’t a question of

waiting for a propitious economic moment to

come along. With Azkar we have enjoyed

close ties to the Somoza family since 2007,

and during all this time both sides have

sought viable long-term joint prospects.

At Dachser we don’t make acquisitions for

just one or two years; rather we see them

as holding historical significance for the

organization as a whole.

How, in your opinion, will the crisis develop?B. Simon: The international as well as the

Spanish economy will regain momentum,

so we are well-positioned with Azkar and

Transunion and their links to international

markets. We see good growth potential for

our European companies particularly in

export shipments, especially in the case of

Azkar on the Iberian Peninsula.

v. Plettenberg: If the economy continues

to develop as we can currently anticipate,

Spain will also get back on its feet. The

time of excessive lending is over, public and

corporate indebtedness has been reined in

hh It’s a good time

for companies to

enter into strategic

partnerships in Spain

Dr Walther von Plettenberg

DACHSER magazine 33

BUSINESS LOUNGE: DACHSER FACE-TO-FACE

during the past three years and thanks to

enormous savings efforts the state and au-

tonomous regions are slowly but surely com-

ing to grips with their budget deficits.

80 percent of the companies we surveyed in

summer 2012 stated that their business out-

look was good or satisfactory. And this in the

fifth year of the crisis. This also goes to show

that by virtue of networking with the parent

group and being integrated into the large

European economic area, German compa-

nies operating in Spain are able to overcome

the problems on the domestic market.

Mr Simon, you consider the investment in Azkar as a “clear yes to Europe”. Are theEurosceptics, whose voices are growinglouder in many countries, barking up thewrong tree?

Spain is synonymous with temperament and passion. The same goes for overcoming crises. B. Simon: The European Economic Area

is without a doubt still one of the most

attractive in the world. For Germany, our

European neighbours, Spain included, are

definitely our most important sales markets.

Since the opening up of the European

borders, Dachser has consistently taken steps

to leverage the potential the European inter-

nal market offers. Given the achievements

of the past decades I think Euroscepticism

is wholly unjustified. Dachser is continuing

to pin its hopes on Europe.

v. Plettenberg: Spain is part of this Euro-

pean Economic Area. And therefore also

expects solidarity when it comes to jointly

rectifying the teething troubles experienced

by the currency union. As Europeans we

must all learn to respect Europe’s diversity

and the characteristics specific to each

country. This places a question mark over

how far harmonization and regulation by

Brussels should go, for example.

B. Simon: Diversity and subsidiarity, in

other words helping people to help them-

selves, go hand in hand. That’s why respect is

also an integral part of Dachser’s mission

statement. This follows simply from the

special responsibility the shareholders have

towards the company’s employees. Here,

family enterprises differ from companies

listed on the stock exchange for example in

that even in times of crisis and the quick

response times these often necessitate they

can think in terms of long-term perspectives.

Dr von Plettenberg, the unemployment rate in Spain in 2012 was around 25 percentand is expected to rise to around 27 percentin 2013. Given the economic challenges in Spain, more and more qualified youngpeople are embracing the idea of takingtheir skills to Germany. How do you view this development for the country’s futureprospects? ‡

BUSINESS LOUNGE: DACHSER FACE-TO-FACE

34 DACHSER magazine

Dr Walther von Plettenberg

has been managing director

of the German Chamber

of Commerce for Spain since

September 2010. Prior to that

he was deputy managing

director and head of the Legal

division. The 54-year-old trained

as a banker and studied law

and business administration

at the Ludwig Maximilian Uni-

versity in Munich. He went on

to complete a doctorate in

the history of law at the Johann

Wolfgang Goethe University

in Frankfurt am Main.

Von Plettenberg is married

with five children. He speaks

German, Spanish, French and

English.

Bernhard Simon

attaches far-reaching goals

for the family enterprise with

the recent acquisitions of Azkar

and Transunion. For the head

of Dachser’s management

board, the many years of

successful collaboration on

the Iberian Peninsula and the

ensuing basis of mutual

trust are a solid foundation for

shared future growth.

PERSONAL FILEwhen it comes to initial and advanced train-

ing. In this spirit we encourage our talented

young people all over Europe to take part in

our exchange activities. This both enhances

their practical expertise and widens their

focus to the realities of the market in other

countries, which their colleagues on the spot

must successfully master.

v. Plettenberg: In Spain there are over

1,000 companies with German roots, many

of which send their Spanish employees to be

trained by the German parent. This has an

extremely positive effect for the company

as a whole. Ultimately it produces synergy

effects for both countries that cannot be

valued too highly.

With this in mind, what message to Azkar’smanagement and staff does Dachser linkwith the takeover? B. Simon: The training of our young talents

paves the way for the future of our entire

organization. We invite the management and

employees of Azkar and Transunion to follow

in these footsteps and utilize these advanced

training programmes in a spirit of cooperative

European integration.

Dr von Plettenberg, in what Spanish virtuesdo you see the greatest potential for over-coming the crisis? v. Plettenberg: The Spanish are especially

adept at adapting to changed or crisis-

induced situations – you could also describe

it as a certain talent for improvisation. Add

to this their humour. Spaniards have the

ability to laugh about themselves even in

adverse situations and thus overcome difficult

situations with bravura.

Even in Germany it is acknowledged ungrudgingly that Spain’s footballers areworld champions in mutual cooperation.What can companies like Dachser andAzkar learn from this for their internal and external relations?B. Simon: In our many years of team co-

operation with Azkar we have seen good de-

cisions taken and subsequently implemented

in a fast passing game. Conversely, we can

learn from one another how a tactical move

needs to be worked out in a much broader

European and global context. To take the

metaphor further: it’s a question of mastering

the fast dynamic of placing the ball accurate-

ly without losing sight of the whole field.

hhWe don’t make

acquisitions like those

of Azkar or Transunion for

just one or two years; rather

we see them as holding

historical significance for the

organization as a whole

Bernhard Simon

v. Plettenberg: I welcome the fact that a

young person who sees better opportunities

abroad can seize their chances without facing

major bureaucratic hurdles. In 2012 as few as

around 8,000 Spanish workers with various

training backgrounds went to Germany. In

other words: migration is limited. In this

respect the “exodus of qualified employees”

has to be seen in relative terms.

B. Simon: We know that as logistics

providers it is up to us to train our own future

talents. This means also looking beyond our

own backyard to neighbouring countries

DACHSER magazine 35

GOOD NEWS

It is possible to reverse the trend in goods transport and achieve a reduction in greenhouse gas emissions of

almost 17 percent by 2030. This is the conclusion reached by researchers on the Renewbility II project sponsored

by the Federal Ministry for the Environment, which with Dachser’s participation is investigating the opportunities and

barriers relating to sustainable mobility. According to the researchers, a variety of measures in the area of logistics

could make a significant contribution to ecological sustainability. These include, among others, low-emission

vehicles, a higher capacity utilization of all transport containers, sustainable building and improved infrastructure.

ON A GOOD TRACK

www.dachser.com

WELCOME TO THE SMALL, WIDE WORLD.

In a global economy whose processes involve more and more players around the world, there is hardly anything more valuable than a logistics partner who provides you with a unique level of transparency, integration and standardization. Around the clock. No matter which time zone. Like clockwork.

DACHSER Air & Sea Logistics