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					                                                news from HAVI LogIstIcs

                      we proudly present havi
                            logistics in china
                     our operations in
                          greater asia

                                         Quality starts in
                                                 the head
                             interview with haluk ilkdemirci
                                   and hans-dieter hojnacki

             real Beauty comes
                    from inside
             tQm – total Quality

April 2009                      The Global Lead Logistics Provider
02                                                                        Editorial

QuAlity is whAtever the
customer wANts
         Hen our compAny wAs founded In                 ping quality, because quality is not only a
         1981, right away we strived for fulfil-        corporate goal but a never-ending process.
         ling all our customers’ demands for            Above all, however, “quality” is determined
the highest standard of food safety, reliable           by the customer. The top priority is achieving
management of the supply chain and inno-                customer satisfaction. But we believe that it
vative logistics concepts – while at the same           is nowhere near sufficient just to carry out
time exercising uncompromising environ-                 our tasks well, to work carefully, always be
mental protection and social responsibility.            reliable, fast and clean, and avoid making
In short, over 27 years ago we obligated our-           errors. We want to be the perfect service
selves to introduce Total Quality Manage-               provider that not only thinks the way its cu-
ment (TQM). Even today nothing about this               stomers think, but also anticipates what they
promise to our customers has changed.                   want. We are constantly striving to optimize
Over 6,000 HAVI Logistics employees all                 our customers' work flow and efficiency by
around the world are providing reliable logi-           applying TQM. Total Quality Management is
stical services as “one-stop shopping”. Total           also the common thread running through
Quality Management has a key role in this.              this issue and I am sure that you, our rea-
HAVI Logistics would not be anything like as            ders, will discover many things that maybe
successful as it is if we had not made qua-             you did not know about HAVI Logistics.
lity our corporate philosophy back then. All
our employees at all levels and in all areas            I wish you inspiring reading!                              Luca Gnecco,
work constantly on optimizing and develo-                                                                          Chairman and CEO, HAVI Global Logistics


                     tAble of coNteNts                                                                                proprietor: HAVI Global Logistics GmbH

                                                                                                                      publisher: Christoph Thünemann
                     coVer story: totAL QuALIty mAnAgement 03 I 04 Real beauty comes
                                                                                                                      content and style editor: Jasmin Schürgers
                     from inside 04 I 05 Not a day goes by without improvements 06 I 07
                     Interview with Haluk Ilkdemirci and Hans-Dieter Hojnacki 07 Do you                               HAVI Global Logistics GmbH, Geitlingstraße 20,
                     know how a refrigerator works? 09 In the food business a constant                                47228 Duisburg, Germany
                     minus is a giant plus                                                                            Phone: +49 (0) 20 65 695 258
                                                                                                                      Fax:    +49 (0) 20 65 695 252
                     compAny news 10 High quality logistics network I IPL stands for qua-                             Email: info@havi-logistics.com
                     lity 11 Improving quality, safety and transparency 12 I 13 We proudly                            http://www.havi-logistics.com
                     present HAVI Logistics in China
                                                                                                                      publisher council: Luca Gnecco, Haluk Ilkdemirci,
                                                                                                                      Hans-Werner Krohn, Sven-Carsten Sachse
                     enVIronment 14 I 15 Benefiting not just the environment 15 Certifica-
                     ted environmental measures                                                                       layout: Simone Lenth, denkmalfrei, Philosophen-
                                                                                                                      weg 12, 47051 Duisburg, Germany

                     new serVIces 16 Generating efficiencies with greater standardisation I                           printer: Druck-Service Weirich GmbH, Industrie-
                     Invisible Delivery in Sweden 17 Quality improvement with PRINCE2                                 str. 17, 41564 Kaarst, Germany

                                                                                                                      The graphics on page 05 and 06 are kindly provi-
                     news In BrIef 18 Customer satisfaction is our goal I Move to Portu-                              ded by tqm.com Deutschland.
                     gal's far north I “Employee of the year” contest 19 Highly desirable for                         This and the following editions would not be rea-
                     our customer dm I A new look for HAVI-Logistics.com I Did you know ...                           lized without the great help of our HAVI Logistics
                     20 DC extension in Austria I Latest update – newly rebranded companies                           members and all the other System Players.
                                                                                                                      Thanks in advance for sending interesting topics
                                                                                                                      to be published in future.

                     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.
                                                                          Cover Story                                                                03

reAl beAuty comes
from iNside                              Total Quality Management (TQM) is not practicable for many com-
                                         panies in a fast-moving business world with expectations of short-term
profits. They cannot conceive of quality as a corporate philosophy. It has always been clear to HAVI Logistics
that a company’s external image results from the quality of its work. After all, a good character is attractive or,
in other words, real beauty comes from inside.

       Qm Is tHe nAme given to the thorough        nagement philosophy; as early as 1951 the                 tHe mAIn prIncIpLes of tHe tQm-
       and continuous activity of recording, in-   first Japanese company won the “Deming-              pHILosopHy IncLude:
       specting, organizing and monitoring all     Award” for especially high quality standards.
areas of a company, which introduces qua-          In the decades that followed, the Japanese           ■	   Quality is based on the wishes of the
lity as a goal of the system and guarantees                                                                  customer.
it in the long term. However, TQM is not an
independent system of management, a stan-                                                               ■	   Quality is achieved with input from the
dard or a law. TQM means striving to make all                                                                employees at all units and levels.
the company’s products and services market
leaders. This is done with the aid of all the                                                           ■	   Quality comprises several dimensions
existing parts of the management system –                                                                    that have to be operationalized by app-
such as quality management, environmental                                                                    lying certain criteria.
management, safety management and hu-
man resources management – quality tech-                                                                ■	   Quality is not a goal but a never-ending
niques and methods for initiating a compa-                                                                   process.
ny-wide improvement process. TQM requires
the full support of all employees if it is going                                                        ■	   Quality refers not only to products, but
to bear fruit.                                                                                               also to services.

      sInce our compAny wAs founded in                                                                  ■	   Quality requires active participation and
1981, TQM has been an integral part of HAVI        Quality checks throughout the whole supply                hard work.
Logistics’ corporate culture. TQM – actually       chain are part of our corporate culture and influ-
a child of the 1940s – did not reach Europe-       ence the daily activity of all the staff.                  The fundamental idea is that quality ma-
an shores until 1988. It was invented in the                                                            nagement should not be restricted to the tech-
USA by “William Edwards Deming”. But af-           conquered larger market shares all around            nical functions for ensuring product quality,
ter the end of the Second World War no one         the world with their high-quality, keenly pri-       but to the relationship between the company
bothered to pay it any attention because the       ced products. They were so successful that           and its customers. The top priority is custo-
focus was on maximizing production volu-           even US companies looked at what Japan               mer satisfaction, which can only be achieved
me in view of the reduced global production        was doing and discovered Deming’s quality            in the long term through sustainable develop-
capacities after the War. In war-torn Japan,       philosophy. It was finally applied by renow-         ment of the company itself.
on the other hand, Deming’s work met with          ned companies in the USA in the 1970s and
more success. Here, Total Quality Manage-          1980s. Then at the end of the 1980s TQM
ment rapidly became a highly regarded ma-          finally also arrived in Europe.                                           >> continued on page 04
04                                                                  Cover Story

>> continued from page 03

       HAVI Logistics puts customer satisfac-
tion right at the center of all its activities on
                                                       cLAssIc QuALIty AssurAnce                           totAL QuALIty mAnAgement
the basis of quality features – at all levels in
the hierarchy. Accordingly, we follow a holistic
quality management approach pervading all
areas of our company. The most important
parts of this quality management approach
are data protection, our Continuous Impro-
vement Process (CIP, see also the article be-
low), our emergency management, project
administration, quality indicators, quality po-
licy – which all our employees can read about
in the quality management handbook – and
                                                     Comparison of classic quality assurance and the TQM approach.
HAVI Logistics’ organization charts, process
descriptions, working instructions, HACCP
and QIP.                                                   tQm produces resuLts when it is part         formance and faster growth in the num-
                                                     of corporate culture and influences the daily      ber of jobs than their competitors.
                                                     activity of all employees. Scientific studies in
                                                     the USA have shown that companies that                  Companies that are able to beat off the
                                                     have introduced Total Quality Management           competition have a strong image and appear
                                                     are able to achieve greater turnover and           authentic – and these values characterize HAVI
                                                     profits, higher productivity, better share per-    Logistics, too!

                                                                                                        HACCP and QIP in combination with our trace-
                                                                                                        ability system guarantee the highest possible
                                                                                                        food safety through quality control of all articles.

Not A dAy Goes by without
improvemeNts                                     Be diligent and frugal: this is the recipe for success of the
                                                 automobile manufacturer Toyota. The underlying principle
here is to avoid waste and make improvements every day. Under the name of “kaizen”, this philosophy has
steadily gained ground since it was introduced in Europe in the early 1990s. The essence of the kaizen way
of thinking has been put into practice at HAVI Logistics. The company has adopted important modules of the
Continuous Improvement Process (CIP), which was developed in Europe on the basis of kaizen.

       AIzen (KAI = cHAnge; zen = for tHe            feels free to admit that problems exist. Im-       “Not a day should pass at the company
       Better) is a Japanese philosophy for          provements in quality and reduction of co-          without improvements of some kind.”
        life and work based on a constant            sts culminate ultimately in enhanced custo-
striving for improvement. At the workplace,          mer satisfaction. Kaizen is especially impor-          Therefore the task of advocating this
kaizen aims for continuous, never-ending im-         tant in the context of quality management and      principle at the company, and making it a
provement in all parts of the company and            is an important element of Total Quality Ma-       central element of corporate culture, falls
involving all members of the workforce and           nagement (TQM). Within the TQM process it          primarily to the management. However, all
all levels of management. The starting point         is less a concrete method and more a gene-         other employees are called upon to make
for kaizen activities is the realization that the-   ral mind set which all employees can interna-      proposals for improvements and implement
re are problems at every company. A corpo-           lize and put into practice at their own work-      them in their immediate work environments.
rate culture should be established, as a plat-       places. The basic motto of kaizen is:
form for solving problems, in which everyone
                                                                      Cover Story                                                                   05

                                                ropean and national operations meetings,               ving processes (core processes and
                                                also held by management, we conduct regu-              accessory processes). This frees up re-
                                                lar quality circles, called “DC Monday Mee-            sources that can be used to generate fur-
                                                tings“, with employees from the Warehouse,             ther growth.
                                                Transport and Customer Service units.
                                                                                                       wHetHer you Are tALKIng ABout
                                                     The “summer schools” held on various           KAIzen, CIP or one of the many measures
                                                topics at HAVI Logistics are also very ef-          and models used at HAVI Logistics, the
                                                fective. Any member of the workforce can            core idea is the same: promotion of the in-
                                                put forth an idea here; it is acknowledged          cremental and continual improvement of
                                                that everyone is an expert in his or her work       work sequences, processes or products
                                                area and potentially an agent of change.            by all employees of the company as the
                                                Regardless of whether you want to opti-             most important foundation of Total Quality
                                                mize internal work sequences, avoid un-             Management.
                                                necessary costs or use resources optimal-
                                                ly, the most important objectives pursued by
     HAVI LogIstIcs Is ALwAys open for          these management and employee circles are:
cHAnges of tHIs KInd. We are in fact to-
tally reliant on ideas from our employees.      ■	   Economic and entrepreneurial re-
The message communicated by the ma-                  quirements: Involving all employees as
nagement of HAVI Logistics - “If we want             experts in the work sequences at their
everything to remain as it is, everything            particular workplace. This expert know-
has to change!” - is very closely linked to          ledge is then put to use to realize potenti-
the Japanese concept of kaizen. At HAVI              als for improvement and to eliminate sour-
Logistics this mode of thinking and viewing          ces of defects.
the world has evolved from the general ma-
nagement concept of the “Continuous Im-         ■	   Service quality: Optimizing internal work
provement Process” (CIP). CIP is an attitude         sequences in order to cut costs while
that must be adopted by all participants and         at the same time maintaining a con-
means continuous improvement with an im-             stant high service quality.
pact that is as sustainable as possible. CIP,
which has implications for process and ser-     ■	   Process quality: Preventing unnecessary
vice quality, pervades the entire company.           costs by eliminating waste (of time, ma-
It is implemented via a process of continual         terials, human resources, energy, etc.).
small incremental improvements - in contrast
to large, abrupt, incisive changes - by me-     ■	   Defects and process risks: Preventing
ans of continuous team work. CIP is a fun-           costs by following a zero defects strate-
                                                                                                    The so called Demingcycle or PDCA-cycle
damental principle of quality management;            gy (defects should simply not be allowed
                                                                                                    describes four different phases of kaizen and
for example, it is an indispensable element          to occur).
                                                                                                    the continuous improvement process: Plan, Do,
of ISO 9001. At HAVI Logistics these fun-
                                                                                                    Check, Act.
damental concepts are promoted by ma-           ■	   Competitiveness and capacity for
nagement and the entire workforce. In ad-            growth: Achieving optimal use of resour-
dition to management meetings, and Eu-               ces (e.g. time, materials, etc.) by impro-
06                                                                    Interview

iNterview with hAluk ilkdemirci
ANd hANs-dieter hojNAcki

“Quality starts in the head.” This statement by
Andreas Rost* represents one of the keys to To-
tal Quality Management (TQM) at HAVI Logistics.
The management of quality, an important business
success factor, is an absolute must at HAVI
Logistics – an opinion shared by Haluk Ilkdemirci,
COO HAVI Global Logistics, and Hans-Dieter
Hojnacki, Managing Director Operations, HAVI
Logistics Germany.

alphabet: Why is Total Quality Management so          of service, quali-
important to HAVI Logistics?                          ty and punctuality,
                                                      which are prerequi-         Haluk Ilkdemirci and Hans-Dieter Hojnacki (f.l.t.r.) are role models,
Haluk: Maintaining and improving high quality is      sites for customer          practicing our TQM.
at the core of our daily life at HAVI Logistics. It   satisfaction. Custo-
is our main goal as the “Global Lead Logistics        mer satisfaction is the main reason for the pro- fourth TQM principle Hans-Dieter mentioned:
Provider” to serve our customers in the best          fitable growth path we have followed in the past low cost, best value. We always provide our
possible way, striving for complete customer          27 years.                                            customers with best value. As the price influ-
satisfaction. Our constant focus on the custo-                                                             ences customer satisfaction, we continuous-
mers’ needs and wishes is the driving force           Haluk: The main idea of TQM is to proactively ly have to work on the productivity of all our
behind our long-term business success. This           manage processes in a way that leads to per- processes. This increases the gap between
customer focus has to be embraced by eve-             fection and excellence from the beginning. We ourselves and the competition and also raises
ryone in our company whatever their position.         strive for best practices in our business world. customer satisfaction.
We can only achieve our aim of “customer sa-
tisfaction first” by committing to and assuring                                                          alphabet: You have both stressed the impor-
the underlying idea of “quality first.” Having                                                           tance of the employees in TQM. What role
said this it is obvious that we at HAVI Logi-                                                            does the HAVI Logistics management play?
stics will continue to put our emphasis on im-
proving our high quality standards just as we                                                            Haluk: Quality starts in the head and it has to
have done in the past.                                                                                   become a way of life for all our employees. The
                                                                                                         HAVI Logistics management can only expect
alphabet: What is the fundamental idea of TQM                                                            our people to “live TQM” if we practice it our-
at HAVI Logistics?                                                                                       selves. Therefore all HAVI Logistics Managers
                                                                                                         have to be role models, practicing our quali-
Hans-Dieter: The main TQM principles are first-                                                          ty standards and thus establishing credibility
ly 100% customer satisfaction, secondly 100%                                                             among our staff.
employee satisfaction, thirdly zero mistakes
right from the beginning, and fourthly low cost,                                                         Hans-Dieter: HAVI Logistics is a service com-
best value. Enabling our customers to steadi-         Applying best practice means that we must          pany which means that the value added for
ly increase the gap between themselves and            organize new services and processes so that        our customers does not result from technical
their competitors by offering them innovative         we avoid making any mistakes. Mistakes have        equipment but from our employees’ daily ef-
tailor-made solutions is the basis for our long-      direct negative impacts on customer satisf-        forts. These efforts can only have the best pos-
lasting business relationships. These business        action. Correcting mistakes requires effort on     sible results if the managers acknowledge the
relationships are only possible because we            the part of our employees causes them stress       accomplishments of their employees, motivate
provide our customers with the highest levels         and increases our costs. This is related to the    them, look after them (when they are facing pri-

*Andreas Rost is the founder of the Alpha Group. The former President and CEO of our organization went into retirement in 2006.
                                                                   Cover Story                                                                  07

                                                     do you kNow how A refri-
                                                     GerAtor works?
vate challenges, too), organize business pro-
                                                                                                               The refrigeration of food-
cesses well and provide all their employees
                                                                                                               stuff works with the help of
with correct, functional tools. Only satisfied
employees create satisfied customers.                elementary physics. The so-called Joule-Thomson effect characterizes the fact that
                                                     gas warms when it is pressurized, e.g. in a compressor. When the pressure is remo-
Haluk: A team will not be able to fulfill cu-        ved, the gas cools. This is the theory behind refrigeration.
stomers’ requirements unless the environ-
ment in which they work enables them to be
creative and develop innovative solutions.                 tHe prActIcAL AppLIcAtIon of tHIs
It is the management’s task to create and            tHeory is based on a concept developed
maintain an open-minded culture by put-              by the physicist Carl von Linde in 1876.
ting company values into practice. There-            A pressurized gaseous refrigerant is con-
fore open communication between different            ducted through a system of coils, also
levels and functions is crucial for sharing          known as a condenser, causing the gas to
ideas and making further process impro-              warm. As the gas expands it cools on the
vements.                                             exterior. It cools enough to become liquid
                                                     again and flows through an expansion val-
alphabet: The phrase “We’ve always done it like      ve, reducing the pressure. Based on the
that!” is known to block change in many com-         Joule-Thomson effect, the liquid continues      The refrigeration process in the cooling units
panies. How does HAVI Logistics view this?           to cool below the original temperature prior    of HAVI Logistics works pretty much the
                                                     to pressurization. At this point, the cooling   same way as in a conventional refrigerator.
Hans-Dieter: The principle HAVI Logistics            effect can be put to use. In the refrigerator
follows here is to put together a set of "building   or cooling unit, there is another system of
blocks" for our global activities. Continuous        coils called the evaporator. Ac-                      le in the warehouse, but the same
improvement at HAVI Logistics is being               cording to the laws of thermo-                        temperature control must also be
pursued by means of a constant process               dynamics, temperatures can                           maintained during transport. This is
of small improvements in cross-functional            only decrease. This is why                           the reason why all HAVI Logistics
teams. Additionally there are management             the cold refrigerant soaks                              trucks are equipped with com-
meetings as well as European and national            up some of the warmth                                        pression cooling systems.
operations meetings at which the best prac-          in the refrigerator com-                                      The evaporators hang from
tices of different HAVI Logistics companies          partment. Then it again                                       the ceiling of the storage
are shared and discussed. Furthermore, we            turns gaseous and flows                                      space in the truck's interi-
at HAVI Logistics Germany conduct regu-              back to the compressor,                                      or, while the compressor is
lar quality circles called “DC Monday Mee-           where the cycle starts                                       usually mounted on the front
tings” with employees from the Warehouse,            again.                                                       side of the exterior or under
Transport and Customer Service units. In                                                                          the freight vehicle.
these meetings we also evaluate existing                   tHe refrIgerAtIon
processes and discuss improvements and               process worKs pre-
innovations from the different viewpoints of         tty much the same
the participants.                                    way in the cooling
                                                     units of the HAVI
Haluk: At the European Management Mee-               Logistics DCs. A
ting in Riga, Latvia, in 2007 our CEO Luca           compression cooling
Gnecco hit the nail on the head when he              cycle maintains the
said: “If we want everything to remain               freezers at a requir-
as it is, everything has to change.” That            ed temperature.
is the all-pervading philosophy at HAVI              The evaporators hang from the ceiling,
Logistics. Constant change is the most im-           and the compressors are located in a se-                   The first Linde-refrigerating machine.
portant aspect of our company. Continuous            parate room. It’s obvious that our frozen                  A model from around 1900.
improvement on all levels is what drives our         and chilled goods not only have to be
customers and us forward.                            stored at prescribed temperatures whi-
08                                                                    Cover Story

Zero defects is
our GoAl                           Whereas classical quality assurance follows the principle that “zero defects
                                   cannot be achieved,” Total Quality Management maintains the principle that “zero
defects is the goal.” When it comes to quality, HAVI Logistics ranks right up there in the premiere league, is already
certified in several countries, and in quality checks is not uncommonly awarded the accolade of “Top Performer.”

        eIng tHe Best for our customers is             we scored over 900 points! This meant that        germAny          DC NEu WuLmSTorF 100,0%
        one of our most important goals. HAVI          we were often regarded by AIB’s assessors          tHe resuLts of tHe new dQmp AudIts In
        Logistics subjects all its units to thorough   as a global benchmark.                             europe (shown below from September
testing at regular intervals. For example, every                                                          2008 till March 2009) have been unani-
year the European Distribution Companies are                 tHe AIB cHecKs In tHe HAVI LogIstIcs         mously positive again.
checked against the Supplier Quality Index             dIstrIButIon centers were replaced by the
(SQI). The external assessors are interested           Distributor Quality Management Process
                                                                                                          BeLgIum           DC oLEN               93,8%
in all areas contributing to an organization’s         (DQMP) at the beginning of 2008. DQMP is
success and have divided them up into the              a worldwide quality check that all McDonald’s      czecH repuBLIc DC KLADNo                92,9%
following categories: management, system               distributors undergo. It is far more complex       denmArK           DC VEJLE              98,2%
first, optimized supply, quality management,           than AIB. Not only are the farthest corners of     fInnLAnd          DC VANTAA             95,8%
innovations and costs. A total of 100 points           the Distribution Center examined, but in ad-
                                                                                                          germAny           DC DuISburG           99,6%
can be awarded in this test. Almost all the            dition all the documentation and reports are
HAVI Logistics companies come out as “Top              examined for possible weaknesses. DQMP             germAny           DC NEu WuLmSTorF 100,0%
Performers” in the SQI check, scoring over             is based on a catalog of questions contai-         germAny           DC ILSFELD            99,1%
80 points. In 2004 HAVI Logistics in Germa-            ning over 100 points. Frequently the ex-           germAny           DC WuSTErmArK 99,6%
ny scored a massive 97.1 points – a Europe-            aminers do not find the slightest little thing     germAny           DC bINGEN             99,1%
an record! At this time a new system is being          to object to in our Distribution Centers and
                                                                                                          norwAy            DC FroGNEr            98,2%
introduced to replace the current SQI system           our impressive DQMP results of well over
in our companies. During the course of 2009            90% are a testament to our Total Quali-            portugAL          DC CArrEGADo          98,4%
the first HAVI Logistics companies will be te-         ty Management. In 2008 our German HAVI             spAIn             DC DAGANzo            93,6%
sted using the new standard, the Distributi-           Logistics Distribution Center near Hamburg         spAIn             DC bArCELoNA          99,1%
on Performance Index (DPI). We will inform             scored the absolute maximum of 100%, pro-
                                                                                                          spAIn             DC oSuNA              91,6%
you about changes to the workflows and the             ving that HAVI Logistics pursues comprehen-
new requirements associated with DPI at HAVI           sive quality management.                           spAIn             DC TENErIFE           97,7%
Logistics in one of our issues coming soon.                                                               spAIn             DC GrAN CANArIA 96,7%
                                                              some of tHe HAVI LogIstIcs compAnIes        sweden            DC TumbA              97,0%
      up to 2007 tHere wAs one more meA-               have had their quality management certified        sweden            DC GoTHENburG 95,7%
sure for ensuring TQM in our Distribution              separately. Our promotion specialist IPL and
                                                                                                          swItzerLAnd       DC oENSINGEN          98,0%
Centers in the form of regular AIB (Ameri-             the forwarding company S.T.I. (Germany) are
can Institute of Baking) checks. Once a year           certified in accordance with the internatio-
the AIB carried out various quality checks at          nal industrial standard ISO 9001. While IPL       lowing on from its successful initial certifica-
our Distribution Centers – without prior war-          was being tested and certified by an inde-        tion in 2001. For the period up to recertifi-
ning! The maximum score in an AIB check                pendent assessor from the German technical        cation, both teams have set themselves the
was 1,000 points. Even the tiniest contami-            certification organization DEKRA in Novem-        goal of continually optimizing the already very
nation shaved points off the score. In almost          ber last year (please read also the article on    high quality of the services they offer today as
all cases HAVI Logistics ranked “superior,” i.e.       page 10), S.T.I. was already recertified – fol-   part of a continuous process of improvement.
                                                                         Cover Story                                                                   09

food sAfety is becoming an ever more im-            the overall tracking of goods has paid off very    own performance. Punctuality and reliable
portant aspect for HAVI Logistics’ quality ma-      well. We showed that our Hungarian team un-        delivery are the top items. In 2008, 96.30%
nagement. In the Distribution Centers hygiene       derstood the requirements of this standard         of our deliveries arrived punctually, i.e. at the
is top priority and the standard far exceeds        and applied its elements in a very expedient       time agreed with our customers. This is an
the applicable legal regulations. The highest       way – contributing to our highest standards in     outstanding result when you consider that
quality standards are implemented along the         food safety throughout HAVI Logistics.             we - unlike our competitors - have agreed a
customer’s entire supply chain in accordance                                                           tolerance of 30 minutes before/after the spe-
with HACCP and QIP.                                        And when it comes to the traceability       cified delivery time. HAVI Logistics’ delivery
                                                    of foods, too, HAVI Logistics was already in       reliability is also something we can be proud
      HAVI Logistics in Hungary has even            a position to trace foodstuffs before EU Re-       of. Last year 97.51% of our deliveries were
been certified according to the very im-            gulation 178/2002 came into force in 2005.         picked correctly and arrived at the customer
portant standard ISO 22000 for its per-             When the EU Regulation was introduced we           in perfect condition.
formance in food safety. In 2006 HAVI Lo-           continued to develop our existing traceabi-
gistics in Hungary was the first of all HAVI        lity system and launched a comprehensive                   However hard we work at comprehen-
Logistics companies and also the very first         EDP project.                                       sive quality management, the fundamental
logistics company in the whole of Hungary to                                                           idea at HAVI Logistics remains the same: qua-
successfully pass this certification. Our expe-           AnotHer Aspect tHAt Is At LeAst eQuAL-       lity is not a goal, but a never-ending process
rience in the field of HACCP, our knowledge         Ly ImportAnt for our QuALIty is our indica-        for achieving total customer satisfaction.
of procedures like First In First Out (FIFO) and    tors (key figures), which we use to assess our

iN the food busiNess A coNstANt
miNus is A GiANt plus                                          The cold is our ally. Customers rely on HAVI Logistics’
                                                               promise to deliver perishable goods in only a top quality
condition daily. To be able to keep this promise, HAVI Logistics Distribution Centers and trucks are equipped with some
technical refinements, not to mention a few ice-cold specialties.

      ood HAs Its enemIes. Millions and millions    cooled environment quickly enough after they
      of fungi (including yeasts and molds), sal-   have been harvested or produced (or in the
      monella, and streptococci can ruin food,      case of meat slaughtered) microorganisms
making it unfit for human consumption. Spoi-        don’t have a chance. And yet the product still
lage which takes place from the inside out -        retains its original integrity. A temperature of
caused by over-ripening or rotting or by the        0° Celsius slows the microbiological, physi-
process whereby fats and oils become rancid         cal, and chemical activities considerably and
- are all forms of spoilage which have to be        keeps food fresh longer. In fact, if a food pro-
prevented at all costs. Because this has been       duct is cooled to under -18° Celsius, these
known for quite some time, the human race           activities completely cease. This is the tempe-
has developed a few counter-measures to pre-        rature which completes the freezing process.
serve its food. Processes like boiling, smoking,    The formation of crystals between the cells
salting, drying or marinating in vinegar protect    stops. Products which are stored at a tempe-       HAVI Logistics has set its own standard, pre-
food from spoilage. These conservation tech-        rature of -18° Celsius can be kept for a longer    scribing a transport temperature of - 20° Celsius
niques all have something in common: they           period of time without any noticeable loss of      from the DC to the customers, a temperature
change the product so that it looks different       quality. Because other food-preservation me-       lower than what the law stipulates.
after it has been treated; it tastes and smells     thods which are also “product neutral,” such
different and is no longer a natural product.       as the irradiation of food or storage in con-      sius is reason enough to reject the goods.
                                                    trolled environments, are time consuming and       During transports and during storage in the
                                                    expensive, refrigeration has established itself    warehouse, temperatures are constantly che-
                                                    as the best storage method for food products.      cked and recorded. In fact, HAVI Logistics has
                                                                                                       set its own standard, prescribing a transport
                                                           If food Items Are not gIVen constAnt        temperature of -20° Celsius from the DC to
                                                    AttentIon, irreparable damage can occur. For       the restaurant, a temperature five Grad Celsi-
                                                    HAVI Logistics' customers, a delivery which        us lower than what the law stipulates as limit
                                                    does not meet all specifications could have        value. Up until the very last delivery, a probe
                                                    severe consequences. For this reason, all de-      thermometer check is conducted at the requi-
                                                    liveries are subject to continual HACCP pro-       site checkpoints and the results are recorded.
                                                    gram controls. HAVI Logistics employees car-       HAVI Logistics boasts with a certain degree of
                                                    ry out temperature checks of the goods with        confidence: nobody knows the frozen and re-
                                                    calibrated probe thermometers at four diffe-       frigerated food chain better than we do. No-
                                                    rent points in the delivery chain - starting at    body conducts checks and keeps records as
     The technique of refrigeration is unlike       the point when they are picked up from the         intensively as we do. When it comes to food
any other. When foodstuffs are placed in a          producer. Even a temperature of -17.9° Cel-        safety, we exclude every risk.
10                                                                 Company News

hiGh QuAlity loGistics
Network                                         HAVI Logistics is proud to announce a new service called “logistics net-
                                                work optimization” using state-of-the-art software.

                                                           ptImIzIng our LogIstIcs networK is               Logistics Distribution Centers to our custo-
                                                           crucial for us to remain competitive in          mers reduce kilometers and minimize trans-
                                                           the market. The costs of raw materials           port costs.
                                                     and transportation are increasing in the medi-
                                                     um term, influenced by short-term price fluc-              for tHIs strAtegIc LogIstIcs And dIs-
                                                     tuation. To position HAVI Logistics in its role        trIButIon pLAnnIng we use the state-of-
                                                     as “The Global Lead Logistics Provider,” we            the-art optimization software ORion-PI®
                                                     have to ask the following questions:                   Value Network Optimization, developed by
                                                                                                            AXXOM. This program is one of the leading
                                                     ■	   Is our logistics network as good as it            technological solutions for the integrated
                                                          can possibly be?                                  analysis, simulation, design and optimization
                                                     ■	   Do we provide the most efficient net-             of strategic and tactical network scenarios
                                                          work for our customers?                           in logistics and distribution. ORion-PI® offers
                                                     ■	   Do we have the transparency to take the           an end-to-end optimization approach which
                                                          right decisions for today and tomorrow?           covers every relationship within the supply
                                                     ■	   How can we react fast in a changing               chain: from customer relations, production
                                                          environment and in emergencies?                   plants and Distribution Centers to suppliers,
                                                                                                            manufacturers and distributors. It allows
                                                            In order to answer these questions in the       an accurate representation of the network,
                                                      most appropriate way, we have implemented             even if it consists of thousands of locations,
                                                     a new service called “logistics network opti-          customers and products. ORion-PI® is also
         HAVI Logistics uses state-of-the-art
                                                     mization.” With this new service, we will be ab-       used by well known companies such as
         software from AXXOM.
                                                     le to optimize the flow of goods from the HAVI         Henkel, Avon, MAN, DHL, BASF.

ipl stANds for QuAlity!
    pL HAs responded to tHe compLexIty of                  The independent auditor from DEKRA
    tHe promotIon BusIness, which has been           Certification Services GmbH verified that
    rising continually since the company’s           IPL’s daily processes met all the legal requi-           Acording to the HAVI Logistics’ functional rea-
foundation in 2000, and to the increasing            rements in accordance with the worldwide                 lignment process of the Happy Meal-, Promo-
demands customers placed on both es-                 industrial standard for quality management               tions- and Packaging-Function, IPL Perseco
tablished and new IPL services, with on-             ISO 9001:2000. The certificate confirms in               will move from HAVI Logistics to HAVI Global
going monitoring and optimization of pro-            black and white that IPL’s quality manage-               Solutions. This process has started and will
cesses. And the results were recently con-           ment system operates effectively and com-                be finalized over a few months. This positions
firmed by the German technical certification         plies with the standard. For the period up to            IPLPerseco to benefit from the global leverage
organization DEKRA. An intensive quality             recertification in 2009, IPL has set itself the goal     and functional leadership of the Perseco and
audit of the whole company in accordance             of continually optimizing the already very high          IPL businesses under the HAVI Global Solu-
with EN ISO 9001:2000 verified IPL’s high            quality of the services it offers today as part of       tions umbrella, while maintaining the benefits
quality standards in November last year.             a continuous process of improvement.                     of a close alignment and leverage with HAVI
                                                                                                              Logistics in Europe.

                                                                                                              In addition to that movement, HAVI Global
                                                                                                              Solutions also has been consolidated the pan-
                                                                                                              European supply chain integration functions of
                                                                                                              ISIS under its umbrella since March 1st.

                                                                                                              These two organizational changes are inten-
                                                                                                              ded to fully align the HAVI Global Solutions’ in-
                                                                                                              ternal resources for delivering supply chain and
                                                                                                              promotion management services in a manner
                                                                                                              that maximizes the future benefit to all HAVI
                                                                                                              Logistics customers.

Marcus Hill, auditor from DEKRA (center) and Consultant Christiane Neeb during the presentation of
the certificate to all IPL employees.
                                                                    Company News                                                              11

improviNG QuAlity, sAfety
ANd trANspAreNcy                                               The main elements of a cutting-edge or-
                                                               ganization are concentration on core com-
petencies and efficient business processes. HAVI Logistics is going to achieve fundamental quality improve-
ments in standardization by implementing SAP.

     IVe out of sIx compAnIes have errors
     in more than ten percent of their ma-
     ster data records. And one in ten com-
panies has errors in over 30 percent, owing
to duplicates, incorrect classifications or in-
comprehensible material texts. These are the
sobering results of a survey by the specialist
firm Omikron Data Quality. The main causes
are that the processes and rules for upda-
ting master data are not sufficiently defined,
responsibilities are not made clear, or there
is no software solution ensuring automatic
data updates.

   zero errors Is our goAL, and of course
this also applies to the extremely important
updating of our master data and how our fi-
nance processes are handled. To this end
we have been using a standard business
software program since the beginning of this
year to support us in the area of finance.
SAP ERP is the main product from the Ger-
man software company SAP. ERP stands for
"Enterprise-Resource-Planning", which gi-
ves users an integrated view of all the parts
                                                  Mirza Hasanagi� (Accounts payable team member) shows the function of SAP ERP to the team and
of a company that are relevant to business.
                                                  the project managment of the Shared Service Center.
ERP software products are constructed as
modules and cover the areas of invoicing,
human resource management and logistics.
We use the modules FI (Financials) and CO         consultants has been formed to design the         ce optimized results in the form of a unified
(Controlling) for setting universal corporate     template, and configure and implement SAP         structure and improved evaluation options.
standards for the areas of financial accoun-      country by country.
ting and controlling, and for monitoring them                                                             to expAnd tHe use of sAp another pro-
in the long term. SAP ERP should guarantee              At present SAP is used principally in our   ject will be implemented at HAVI Logistics:
that HAVI Logistics’ corporate structure is       Shared Service Center (SSC) in Prague (see        “iSAW” (Invoice Scanning, Archiving, Work-
mapped in a client and that the system users      also the article on page 17), which went into     flow). Once iSAW is in place, all incoming
operate solely within a system landscape.         service for the German companies in Janu-         invoices will be scanned locally by HAVI Lo-
This environment consists of standards such       ary, at the same time that SAP was introdu-       gistics employees, automatically sent to a
as the Group Chart of Accounts (GCoA) and         ced. This HAVI Logistics service unit offers      central digital archive, and fed into an elec-
harmonized master data. A huge step on the        standard accounting services to the HAVI          tronic workflow. This is where the invoices
way to standardization is the migration from      Logistics organization. SAP ERP is a key ele-     will be checked and released by the relevant
a solution called Kissels, which is installed     ment in realizing this support.                   member of staff, the SSC and the cost cen-
separately in each of the HAVI Logistics com-                                                       ter manager, and they will then be posted in
panies for handling the Chart of Accounts,              In future ALL HAVI LogIstIcs compA-         SAP automatically.
master data and reporting. Our new stan-          nIes should benefit from the standard busi-
dard software environment supports multi-         ness software. Standardization will proceed
client and language concepts and offers in-       as part of the SAP roll-outs in HAVI Logistics
dustry standards for HAVI Logistics business      countries and the process of switching their
processes. The implementation of the new          accounting services to the SSC. For exam-
business software is a major project for HAVI     ple, the HAVI Logistics companies will use
Logistics. One project team consisting of Fi-     the Group Chart of Accounts (GCoA) and
nance Key users, IS specialists and external      harmonize their master data. This will produ-
12                                                                 Company News

we proudly preseNt hAvi
loGistics iN chiNA                                           As “The Global Lead Logistics Provider” HAVI
                                                             Logistics has expanded its business throughout
Europe, North America and Greater Asia. HAVI Logistics now has over 6,000 employees providing total logi-
stics solutions to a wide range of strategic customers. In the next few issues of alphabet, we will introduce
to you our HAVI Logistics companies located and working in the Asian region. In this issue, we will focus on
our operations in Mainland China.

       e fIrst, Be fAst, Be dIfferent. This is the                                                     Centers (Beijing, Guangzhou and Shanghai),
       motto HAVI Logistics has used to ex-                                                            two satellite Distribution Centers (Wuhan and
       pand around the world. HAVI Logistics                                                           Shenyang), one depot (Chengdu) and a bon-
is one of three pillars within the organizatio-                                                        ded warehouse (Shenzhen). In China, HAVI
nal structure that makes up the HAVI Group                                                             Logistics has led the industry in providing true
LP. The other two companies, “The Marketing                                                            lead logistics solutions that include: inventory
Store” and “HAVI Global Solutions” support                                                             management and demand planning, routing
HAVI Logistics to provide a full range of solu-                                                        optimization, in-store logistics as well as cu-
tions to its customers to compliment its logi-                                                         stomized ordering systems.
stics services. HAVI Logistics currently makes
deliveries to nearly 13,300 retail outlets around    HAVI Logistics in China provided food logistics         product sAfety HAs Been A Hot topIc
the world from 72 Distribution Centers!              services for all the catered restaurants and      In cHInA in recent years, with reports of tain-
                                                     McDonald’s inside the Olympic venues.             ted pet foods, fake drugs, toxin-coated cos-
        HAVI LogIstIcs In cHInA began opera-                                                           metics, and milk powder. This has led to nu-
tions with what the President of HAVI Logistics      HAVI Logistics the leading model of cold chain    merous product recalls, import/export bans
Greater Asia, Bill O'Brien, calls "barely viable     and food safety for the last 16 years. HAVI Lo-   and more stringent food safety laws in China.
facilities, deteriorating warehouses, trucks in      gistics now provides customized cold chain        The government has pledged to boost its sa-
need of maintenance and repair, and a dearth         logistics services to over 1,100 McDonald’s       fety standards, but many companies across
of freezers.” Today HAVI Logistics in Mainland       restaurants, as well as a number of other high-   China have started to realize that they must,
China has a workforce of over 600 employees          profile multi-national Quick Service Restaurant   as a matter of urgency, begin to pay grea-
and a growing network of China’s most mo-            chains and retailers. Currently, HAVI Logistics   ter attention to ensuring that their products
dern facilities and Distribution Centers, making     in Mainland China operates three Distribution     are distributed, stored and handled in the re-
                                                                     Company News                                                              13

quired temperature range to guarantee fresh-       viding China’s most stringently temperature-
ness and safety to the consumer. Since the         controlled facilities and trucks, HAVI Logistics
start of HAVI Logistics’ first Distribution Cen-   has become the first choice for all compa-
ter in Guangzhou, the company has led the          nies focused on food safety and having the
way in guaranteeing the highest logistics food     highest international standards. In recogniti-
safety standards in the most reliable and effi-    on of this, HAVI Logistics was chosen by the
cient way available on the Mainland. By pro-       Beijing Olympic Organizing Committee to pro-
                                                   vide food logistic services for all the catered
                                                   restaurants and McDonald’s inside the Olym-
                                                   pic venues (see also the article in Issue 19 or
                                                   go to our video on www.havi-logistics.com /
                                                   News & Media).

                                                         “tHe BIggest cHALLenge fAcIng us In
                                                   cHInA “While such assets should not be un-
                                                   dervalued, both domestic and foreign busi-
                                                   nesses need to channel their resources to
  HAVI LogIstIcs cHInA:                            people and systems. That means optimizing
                                                   networks, routing, and assets,” Bill says. “Only
  fActs & fIgures                                  then can we create a cost-efficient perishables
  Foundation:                                      chain that maximizes value for retailers and re-
  • HAVI Logistics Guangzhou: 1993                 staurants. Bill O’Brien has charted an uncon-
  • HAVI Logistics Beijing: 2000                   ventional course, overseeing from scratch the
  • HAVI Logistics Shanghai: 2001                  development of a world-class cold chain in a
                                                   region plagued by food-safety issues. Today
  Land area:                                       two factors account for the success of HAVI
  • Guangzhou: 12,500 sq.m.                        Logistics in China. The first, which also has
  • Beijing: 12,000 sq.m.                          to do with the HAVI Logistics culture, is that
  • Shanghai: 11,000 sq.m.                         our Chinese team shares an intense dedica-
                                                   tion to its customers. The second reason for
  Size of the Distribution Center:                 HAVI Logistics’ success is its people. Main-            HAVI Logistics in Mainland China has
  • Guangzhou: 5,000 sq.m.                         land China’s management team has been re-               a workforce of over 600 employees
  • Beijing: 7,300 sq.m.                           sponsive to HAVI Logistics’ values, goals, and          and a growing network of China's
  • Shanghai: 5,100 sq.m.                          strategic focus, which has been extremely in-           most modern Distribution Centers.
                                                   novative for the Chinese market. In summary,
  Employees: 600                                   the entire HAVI Logistics organization is proud
  Trucks: 50                                       of the past and excited for the future of HAVI
  Delivery points: 1,220                           Logistics in China.

The HAVI Logistics staff in Beijing and the HAVI Group LP Top Management                              You find further information about HAVI Logistics
as well as HAVI Logistics Executive Board.                                                            China under www.havi-logistics.com
14                                                                Environment

The new Distribution Center in Amersfoort is equiped
with cutting-edge technology.

beNefitiNG Not just
the eNviroNmeNt                                             In December of last year our HAVI Logistics team in
                                                            the Netherlands relocated from Nijkerk to a new Dis-
tribution Center in Amersfoort. The new DC has not only been built to the latest technical standards, but is also
equipped with a new type of refrigeration system making it especially environmentally friendly. The new DC building
benefits both the environment and the employees.

          Hen It comes to tHe QuALIty And tHe      hough this is a natural substance, it is difficult   of gaseous ammonia - which is actually only
          sAfety of the foodstuffs that we store   to handle and technically awkward to use,            dangerous at high concentrations - the pipes
          and transport, HAVI Logistics elimi-     and in concentrated form it is hazardous to          carrying the ammonia are located on the DC‘s
nates all possible risks. This also affects the    human beings. Today HAVI Logistics ope-              external wall, and they are made of rust-free
choice of refrigerant. Carl von Linde (see ar-     rates most of its refrigeration systems with         materials so as to provide extra protection.
ticle on page 07) operated his first functio-      the environmental friendly refrigerant R404.
nal refrigeration system using ammonia. Alt-       For several years, while searching for a natu-             Other technical refinements of the new
                                                   ral refrigerant, we have been following in the       refrigeration system are the combination of
                                                   footsteps of Carl von Linde and working on           chamber coolers and the air duct system,
                                                   the safe re-introduction of ammonia into re-         low noise emissions and no defrosting inside
                                                   frigeration systems. We are justifiably proud        the warehouse. The novel refrigeration sy-
                                                   that, with the introduction of ammonia in our        stem avoids ice formation on the evaporator
                                                   German HAVI Logistics Distribution Center in         and provides a smooth and well distributed
                                                   Duisburg and in our Belgian DC, we are now           supply of cooled air, and it is much simpler to
                                                   using ammonia again for refrigeration.               maintain. And in good HAVI Logistics fashion,
                                                                                                        in the Amersfoort DC, too, the energy gene-
                                                         In our new dc In Amersfoort we are             rated during cooling of the frozen storage are-
                                                   also expecting good results from ammonia as          as is not just released into the environment
To protect the employees - in case of a damage -   a refrigerant owing to its high coefficient of       as waste heat. At HAVI Logistics a heat re-
at DC Amersfoort the piping for ammonia is in-     performance and environmental soundness. In          covery system captures and uses this energy
stalled at the outside of the building.            order to protect the employees from any leaks        to heat the dry storage areas and the offices.
                                                                      Environment                                                                 15

And of course our new Distribution Center in     work or go by bicycle. Now they would have           ther very important aspect is the fact that the
the Netherlands is equipped with one of the-     to switch to taking the car, on a route that in-     new DC allows HAVI Logistics to bundle all the
se systems.                                      cluded a busy freeway. This would have been a        operations for our customers McDonald’s and
                                                 considerable extra burden not only on our staff      BP Netherlands at one facility and finally to ex-
      despIte ALL tHIs cuttIng-edge tecH-        but also on the environment. In the end one of       ploit the operational synergies.
noLogy, the employees at our Dutch HAVI          the warehouse staff asked if we could acquire
Logistics company had mixed feelings about       a company motor scooter - which turned out
the new DC and the move to Amersfoort. They      to be the solution to the problem. With motor
were very keen on an extremely efficient and     scooters congested freeways would no longer
ultra-modern solution. But they were concer-     be an issue and the drive to work would be
                                                 quick and safe for all the employees. We did
                                                 a general calculation, and also compared the
                                                 costs of a standard motor scooter and a bat-
                                                 tery-powered one. The environmentally friendly
                                                 alternative won on all counts. An electric scoo-
                                                 ter can manage a whole 70 kilometers on a fully
                                                 charged battery. It is “filled up” again by plug-
                                                 ging it into the normal electricity supply - which
                                                 is also much simpler than filling the tank with
                                                 gasoline at a gas station.

                                                       now tHe moVe to the new Distribution
                                                 Center has been completed successfully. Eve-
State-of-the-art compressor                      rything about the DC in Amersfoort is great. It
                                                 is not only equipped with a large number of
ned by the fact that their new workplace was     technical features and, most importantly, envi-
approx. 10 kilometers away from the old one.     ronmentally friendly ones, but it also addresses
Out of the 220 employees, 120 live in the town   the concerns of HAVI Logistics’ employees to
of Nijkerk itself. Sixty of them could walk to   a degree that only a good employer can. Ano-

certificAted eNviroNmeNtAl
meAsures                     HAVI Logistics in Turkey has its exemplary environ-
                             mental protection activities certified according to DIN EN
ISO 14001 and has thus committed itself to consistently follow the environmental goals
set by this standard.

      HAVI LogIstIcs’ commItment to tHe                In January our Turkish-based company
enVIronment means that our distribution          was audited for the first time for compliance
company in Turkey chooses the most envi-         with DIN EN ISO 14001. The audit protocol
ronmentally friendly processes, conscious-       stressed the importance of cleanliness and
ly makes optimal use of natural resources,       order in the warehouse, procedures applied
and insists on environmentally friendly pro-     according to the spirit of the law, separate
duction procedures that save energy and          collection of hazardous and recyclable ma-
prevent waste. The importance of complying       terials, and documentation in general. HAVI
with environmental laws is self-evident. The     Logistics in Turkey was certified by the ex-
continuous reduction of energy consump-          ternal audit company First Quality Certifi-
tion by means of innovative storage tech-        cation (FQC) and now has to prepare for
niques or heat-recovery systems for hea-         recertification in 2011.
ting offices and ambient storage areas is a
basic component of environmental policy                                                               Ata Akici, Environment Coordi-
in Turkey and at most of the HAVI Logistics                                                           nator and Altan Sekmen, Ma-
locations.                                                                                            naging Director HAVI Logistics
                                                                                                      Turkey (right).
16                                               New Services

     GeNerAtiNG efficieNcies with
     GreAter stANdArdiZAtioN
     As of January 2009 HAVI Global Logistics has been managing the accounting services for
     the European HAVI Logistics companies centrally from Prague. This step and the foundation
     of a new company named HAVI Logistics Shared Services s.r.o (SSC) have opened up new
     vistas for HAVI Logistics.

                                                             ItH our current perfor-            steps in the execution of such a pro-
                                                             mAnce And suBstAntIAL mAr-         ject, boundaries needed to be broken
                                                             Ket opportunItIes HAVI Logi-       down, new working procedures had to
                                                  stics will grow steadily in the years to      be implemented and, most importantly,
                                                  come. To enable this growth it is ap-         clear targets, roles and responsibilities
                                                  propriate to reorganize and standar-          had to be defined.
                                                  dize our accounting processes more
                                                  efficiently and to support them with                 tHe ImproVement of our orgA-
                                                  new scalable cutting-edge technology.         nIzAtIon is the key success criterion
                                                  Since January of 2009 we have been            for all of our employees to secure and
                                                  combining all relevant accounting ac-         support the growth strategy of HAVI
                                                  tivities at one “Shared Service Center,”      Logistics. The main elements of a cut-
                                                  initially for the first five HAVI Logistics   ting-edge organization are standardi-
     Part of the project team for the             companies. In the course of 2009 and          zation and concentration on core com-
     organizational setup of the Shared           2010 selected accounting activities of        petencies. We have achieved funda-
     Service Center and the simultane-            all the remaining European HAVI Logi-         mental improvements with the opening
     ous configuration and implemen-              stics companies will be taken over by         of our Shared Service Center and the
     tation of SAP. The Finance- and              the Shared Service Center. Located in         implementation of SAP. A lot of work,
     the Controlling-Department as                Prague, the capital of the Czech Repu-        enthusiasm and passion has been in-
     well as HAVI Logistics Information           blic, the company will provide the Eu-        vested in these projects. The central
     Services are closely linked together         ropean companies with excellent ac-           element of the successful SSC imple-
     dependent on the success of the              counting services covering accounts           mentation is the excellent support pro-
     Shared Service Center. (order from           payable, accounts receivable, general         vided by everyone involved. In the fu-
     left) Stefan Tittel, Ralf Kreuzenbeck,       ledger and fixed assets.                      ture our HAVI Logistics companies can
     Peter Looks, Jovanka Vajce, Ullrich                                                        concentrate on their core task of provi-
     Wegner, Christof Schwarberg,                       Simultaneous with the opening           ding competitive logistics solutions to
     Michael Hoier and                            of the Shared Service Center the im-          our customers even better than before.
     Andreas Koetter.                             plementation of the new SAP accoun-           Now we have to start generating effici-
                                                  ting software is a major cornerstone of       encies with greater standardization so
                                                  our growth strategy (please read also         that we will be “fit for the future.”
                                                  the article on page 11). As essential

     iNvisible delivery
     iN swedeN                        One HAVI Logistics’ idea of relieving the McDonald’s restau-
                                      rants of all logistics tasks is called Invisible Delivery. It is a special
     service that is already offered in Germany, Hungary, Italy and Turkey and will soon be offered for the
     restaurants in Sweden as well.

            He HAVI LogIstIcs’ InVIsIBLe de-           Between feBruAry And August              of our service ECOSIMA (Economic
            LIVery concept means that the         of tHIs yeAr our Swedish-based HAVI           Store Inventory Management Assi-
            McDonald’s restaurant crew is to-     Logistics company tested our Invisible        stance) had a huge effect on the ac-
     tally freed of all tasks that are part of    Delivery service in eight McDonald’s          ceptance of Invisible Delivery: during
     the delivery process. Invisible Delivery     restaurants. The target is to roll out        ECOSIMA our Swedish compa-
     allows deliveries to take place during or    the service to nearly all 100 restau-         ny proved that they were experts
     after a restaurant’s opening hours.          rants in Stockholm, Gothenburg and            in logistics not just within the Dis-
                                                  Malmoe during 2010. The success               tribution Center and during delive-
                                                                         New Services                                                    17

ries but at the restaurants as well. During          guests of the Gothenburg Hor-
ECOSIMA delivery frequencies and storage             se Show. This big event was
capacities were harmonized; this resulted            hosted by Sweden's Scandi-
in optimal storage conditions at restaurants         navium arena between Febru-
and optimal (mostly decreasing) delivery             ary 19 and 22 and was awaited
frequencies.                                         with bated breath. This is be-
                                                     cause the McDonald's restau-
      In practice Invisible Delivery means that      rant received two full trucks on
the driver of HAVI Logistics offloads the truck,     the final day of the Horse Show
while workers of the Swedish merchandi-              and the putting-away process
ser Komet carry all goods into the restau-           took approximately eight to ten
rant storage areas and place them direct-            hours. Titti Bergqvisit, Mana-
ly on the shelves. The joint project group           ger of the McDonald's restau-
(including members from HAVI Logistics               rant located at the Horse Show: "It was the        Our Swedish team proved
Sweden and McDonald’s Sweden) has put                smoothest Horse Show week ever, excellent          its excellence in Invisible
a lot of effort into defining the exact tasks        logistics process."                                Delivery by supplying the
for the merchandiser and a manager of                                                                   McDonald's Restaurant in
Komet received intensive training at HAVI                 In tHe next montHs the test will be ex-       the Scandinavium arena at
Logistics in Sweden.                                 tended to additional Swedish cities with a         Gothenburgs Horse Show.
                                                     high concentration of McDonald’s restau-
      tHe BIggest cHALLenge for our team             rants. Moreover, the integration of franchisee
in Sweden was the task of making delive-             stores will be part of the next step.
ries to the McDonald’s restaurant serving the

QuAlity improvemeNt
with priNce2                           NeFiSo (New Financial Solution)*, Weblog Implementations
                                       and the Common Software Solution for S.T.I. Network
(CSSN) are examples of the many successful projects that HAVI Logistics has conducted in recent years.
To reinforce and ensure such success, HAVI Logistics uses the PRINCE2 project management method.

       rInce (Projects in Controlled Environ-        ting in projects the opportunity of enrolling
       ments) is a structured project manage-        on a two-day PRINCE2 Foundation training
       ment method for executing projects            course and certification. The PRINCE2 trai-
successfully. The first outlines of what we          ning course is delivered by the certified trai-
now know as PRINCE2 were already esta-               ning institute “Insights International” and pro-
blished in 1975 under the name of PROMP-             vides an essential overview for understanding
TII. The British Central Computer and Te-            and utilizing the method and enabling people
lecommunications Agency (CCTA) used                  to speak the same language.
PROMPTII as a standard method for all go-
vernment projects. In 1989 the CCTA relea-                tHe HAVI LogIstIcs HumAn resour-
sed PRINCE, which superseded PROMPTII.               ces department organizes the PRINCE2 trai-
The CCTA (now the Office of Government               ning cycles. After two years of sharing the
Commerce) continued to develop the me-               PRINCE2 experience with the organization,
thod. In 1996 a new release was introduced           we can proudly say that HAVI Logistics has
called PRINCE2, which incorporated years             more than 140 PRINCE2-certified emplo-
of experience and best practices, and pro-           yees, and the next training courses in Duis-       Part of the PRINCE2 PMO:
vided a structured approach for carrying out         burg (Germany) are already scheduled for 22        (f.l.t.r.) Dana Moses, Project
all kinds of projects.                               and 23 April 2009.                                 Controlling and Administra-
                                                                                                        tion; Christian Matull, Senior
      due to tHe InternAtIonAL recognItI-                  The PRINCE2 training course provides         Manager; Theresa Dicke,
on enjoyed by PRINCE2 and its applicability          a good ‘instrument’ for obtaining the essen-       HR Assistant; Herman van
and scalability in different types of projects,      tial know-how for structuring and executing        Dasselaar, Consultant
HAVI Logistics selected this project manage-         a project. When additional support and/or a        Methodology Management
ment method as the standard for executing            review is wanted, PMO is there to help. With       and Shafag Aliyeva, Junior
its projects. The Program Management Of-             the lessons learned and experience gained          Consultant Methodology
fice (PMO) at HAVI Logistics IS selected the         from previous projects, as well as its insight     Management.
method and is responsible for its continuing         into the PRINCE2 method, PMO is available
deployment within the organization. PMO of-          to support you in structuring your roadmap
fers employees who are or will be participa-         to project success.

* The NeFiSo project from HAVI Logistics IS provides the required IT platform to support the finance
processes and to replace the existing solution for Financial Accounting (KISSELS) at HAVI Logistics.
    18                                                                 News in Brief

                                                                                                             “employee of the
                                                                                                             yeAr” coNtest
                                                                                                             HAVI LogIstIcs estonIA kicked off a special
                                                                                                             motivational competition in 2007 – the “Em-
                                                                                                             ployee of the Year” contest. All employees of
                                                                                                             the company who "consistently perform abo-
                                                                                                             ve and beyond what their job descriptions re-
                                                                                                             quire" are eligible to vie for this award.

                                                                                                                    tHe IdeA or the contest caught the ima-
                                                                                                             gination of the entire workforce immediate-
                                                                                                             ly when it was put forward in 2007 by Ja-
                                                                                                             nek Saareoks, Managing Director of HAVI
                                                                                                             Logistics Estonia. By creating the award,
                                                                                                             Saareoks hoped to create a very special mo-
                                                                                                             tivation for high performance that was not ba-
                                                                                                             sed on monetary rewards but on more per-
                                                                                                             sonal incentives.

    The HAVI Logistics website is presenting a new face to the world, with a completely new
    Media Center and an extensive picture database.

    A New look for hAvi-loGistics.com
    wItH tHe reBrAndIng of our compAny, we               Company, Services, Jobs & Career, News &
    have taken on an entirely new Corporate Iden-        Media, References and Contact.
    tity (CI). Our behavior, our communication, and
    the Corporate Image we project both inside                 tHe HAVI LogIstIcs serVIce pHILosopHy           Janek Saareoks surrounded by the top
    and outside the company have been revam-             Is exempLIfIed By the division of News & Me-          performers on his team. First row (from left):
    ped and harmonized across the board.                 dia. At this virtual Media Center, the company        Illi Niinlaub, Eda Siivelt, Gerlin Mets. Second
                                                         extends a warm welcome to journalists and             row (from left): Janek Haljasmets, Mihkel
          Our HAVI Logistics website, which offers       other opinion leaders by offering them the            Mäehans, Ove Vikat, Mart Kahro, Marek
     various language options, is the digital show-      possibility to access information about the           Tamm.
    case of the company. Visitors to www.havi-           company without having to enter a password.
    logistics.com are greeted by an attractive           The new Media Center is the central portal to
    design and a clear-cut navigation structure;         the HAVI Logistics World and offers visitors
                                                         a wealth of materials: corporate brochures,         According to the contest rules, every mem-
    they consequently experience HAVI Logistics
                                                         our corporate newspaper alphabet, press             ber of the workforce has a chance to name
    as being technically competent, experienced
                                                         releases (available in several languages), the      three people who are, in his or her opinion,
    and innovative. Our new homepage wel-
                                                         latest news about HAVI Logistics, and a brand       the best “team players” in the particular de-
    comes visitors to the HAVI Logistics World
                                                         new picture database.                               partment. The employees' direct superiors
    and invites them to enter the virtual re-
                                                                                                             are then asked to comment on the work per-
    presentations of the six central divisions:
                                                               In tHe HAVI LogIstIcs pIcture dAtABAse        formance of the nominees. All the emplo-
                                                         journalists and interested members of the           yees who have received the “Employee of
                                                         public can view photos showing all aspects          the Year” award have exemplified exceptio-
                                                         of the company. Picture editors can research        nal levels of work performance and displa-
                                                         stories here free of charge and download tho-       yed great respect and loyalty toward HAVI
                                                         se photos that have been released for publi-        Logistics and their job responsibilities.
                                                         cation outside the company. The nearly 100
                                                         motifs currently available depict all areas of           tHe worKforce At our estonIAn HAVI
                                                         activity at HAVI Logistics; the topics range        LogIstIcs company consists of a total of 213
                                                         from corporate culture, customers, design,          people working in nine departments. Each de-
                                                         environment and services straight through to        partment nominates one candidate for the title
                                                         transport and logistics. Whether you are loo-       of “Employee of the Year.” The 2008 winners
                                                         king for a photo of a truck, a distribution cen-    were rewarded with the recognition of their col-
                                                         ter, employees or design elements, you can          leagues, a certificate and even a small party.
                                                         find the entire HAVI Logistics World, with all of
Our HAVI Logistics Website in traditional Chinese lan-
                                                         its diversity, in the new picture database.
guage is now available under www.havi-logistics.com
                                                                           News in Brief                                                              19

The progress of construction work on March 17, 2009.                                                     13 tons on average is the weight of such a digger.
                                   hiGhly desirAble for A heavyFreight Managerforwarder, but no-brainer
                                                                                    for our
                                                                                            burden for the
move to portuGAl’s our customer dm
fAr North                          tHe dm BusIness in Austria started in March customer sAtisfAct-
                                   2008 (see edition 18) with the delivery of fresh
tHe Huge expAnsIon By our customer products for the so-called “Gesunde Pau- ioN is our GoAl
mcdonALd’s in recent years has had tangible            se” (Healthy Break). Starting with the delive-
impacts, even in Portugal. Not only has it ope-        ry of 14 shops in the western part of Aus-        our freIgHt mAnAger s.t.I. has been organi-
ned new restaurants, but also the volume of            tria in July 2008, HAVI Logistics Austria now     zing the most varied transport services for its
goods delivered per restaurant has increased.          provides the complete services for 34 dm          customers using the most different routes for
These welcome effects took our Portuguese              stores. Twice a week we deliver an assort-        over 25 years now. No matter whether the-
distribution company to the limits of its capacity.    ment of around 70 different fresh products        se transports go overland, by sea or by air,
Supplying 122 Portuguese McDonald’s restau-            for preparing fresh soups, salads, smoothies      S.T.I. always provides the same outstanding
rants and the Warner Bros. businesses made it          and juices. In December of last year HAVI         quality. The company even makes an excel-
necessary to build a second Portuguese DC.             Logistics in Austria reported a new record:       lent job of tricky orders such as transpor-
                                                       the monthly tonnage handled for dm incre-         ting 350 tonnes of mining equipment to Tur-
       tHe BuILdIng of tHe new dIstrIButIon            ased from 54 to 67 tonnes. About 300 de-          key, exercise machines from the Far East to
center with a total of 2,620 square meters.            liveries with more than 28,000 crates were        Germany, and 400,000 kilograms of frozen
in Canelas in the District of Porto in northern        distributed to our new customer.                  Chicken McNuggets for McDonald’s Japan.
Portugal began in September of last year. It will
start operations in May with the supplying of 44             And the business continues to expand:              customer sAtIsfActIon Is ALwAys
restaurants. The average distance from the new         currently a test is underway on the delivery of   top prIorIty for our Freight Manager – it is
DC to our customer's restaurants is now only           bananas in Styrofoam boxes. The dm business       absolutely essential to effective quality ma-
68 kilometers, which is convenient for supplying       in Austria is extremely successfully. Recently    nagement. In 2001 S.T.I. had its TQM cer-
the restaurants in the north of the country, and       the manager of a dm store said “thank you”        tified as meeting EN ISO 9001. In fact S.T.I.
so in Portugal our HAVI Logistics trucks now           to our team in Austria in written form: “HAVI     can boast that several months ago it was
cover 1 Million kilometers less per year.              Logistics gets top marks as a distributor. The    recertified for the second time according to
                                                       driver is always very competent and friendly.”    the stringent requirements of the Europe-
      tHe openIng of tHe new dc in Porto of-                                                             an industrial standard. Are we going to rest
fers HAVI Logistics the opportunity of cross-                                                            on our laurels? Or sit back and relax? Not
border distribution to twelve Spanish restau-             did you kNow ...                               at a HAVI Logistics company! S.T.I. recen-
rants in Galicia. HAVI Logistics Portugal and                                                            tly tackled the next challenge head-on and
HAVI Logistics Spain are currently investiga-               …tHAt in the last five years HAVI            assisted a German importer of construc-
ting the total impact of this solution.                Logistics realized savings of several million     tion machinery in procuring four diggers.
                                                       euros for the McDonald’s system?                  Our Freight Manager, a specialist in custo-
                                                                                                         ms clearance, took care of all the paperwork
  some AdVAntAges of tHe                                     At tHe end of 1999 a service called “Cle-
                                                                                                         for the front-end loaders in Rotterdam’s har-
  new dc In porto:                                     an up” was implemented at HAVI Logistics:
                                                                                                         bor. The extremely satisfied customer was
                                                       since then this service has been extended in
  ■	   Reduction of 44% in the total mile-                                                               then able to transfer the heavy goods onto
                                                       close cooperation with McDonald's, our Eu-
       ages                                                                                              a gooseneck trailer by itself.
                                                       ropean Distribution Centers and suppliers.
  ■	   Closer contacts with each restaurant            Since 2004 Clean up has been offered as
  ■	   Punctual transportation, less af-               a dedicated service to the McDonald’s sys-        same price as if it had bought the stocks
       fected by road traffic                          tem and has proven to deliver significant         directly from the supplier. Additional costs
  ■	   Opportunity to react faster in case             benefits. The function of Clean up is to seek     (e.g. for transport, customs duties, labels,
       of stock recovery and product                   continuously for overstocks in our HAVI           etc) must be carried by the selling DC.
       replacement                                     Logistics DCs. The available overstocks are
  ■	   More opportunities to develop spe-              reported using communication platforms                  At tHe end of 2008 the Clean up service
       cial services (Invisible Delivery)              such as McNet and A-lex. In this way poten-       celebrated its fifth anniversary of hard work
  ■	   Positive impact on the environment              tial buyers can be identified within the          and common, dedicated effort. Today we are
                                                       McDonald’s system. All relevant parties are       proud to report: in the last five years we have
       because of reduced fuel consumption
                                                       involved during the re-selling of the over-       realized a total 7.2 million euros in savings for
       (318,000 liters less per year).
                                                       stocks. The purchasing company pays the           the entire McDonald’s system.
 20                                                            News in Brief

 dc exteNsioN iN AustriA
 to Keep pAce wItH tHe rApId growtH of our
 customer McDonald's all over Austria, HAVI
 Logistics has expanded its Austrian Distribu-
                                                    [2]                                                 [3]
 tion Center. The extension will be completed
 in April of this year.

      tHe constructIon pHAse started in
 August 2008. Not for the first time HAVI
 Logistics had undertaken to build an exten-
 sion at one of its European Distribution Cen-
 ters with operations still in full swing. In the
 case of our Austrian-based company 2,200
 sq.m. of floor space have to be built whi-
 le customers’ goods are being picked up,            This is what the skeleton of the building looked
 loaded and delivered - all with the reliability     like in September 2008. Only two months later
 customers have come to expect from HAVI             the new dry warehouse was ready for our team
 Logistics.                                          in Austria to move in. Once installed, HAVI
                                                     Logistics continued its order-picking activities

[1]                                                  in the new surroundings without batting a pro-
                                                     verbial eyelash.

                                                                                                         The old ambient warehouse adjoining the
                                                                                                         new building was torn down without clo-
                                                                                                         sing down operations at the site. A new
                                                                                                         frozen goods warehouse is now being built
                                                                                                         on the same spot.

                                                                                                         Setting-up the shelving: together with the
                                                                                                         previous frozen goods area, the new ex-
                                                                                                         tension includes a new 2,000 sq.m. ware-
                                                                                                         house for frozen products. There is still
                                                                                                         a lot of work to be done before the new
                                                                                                         warehouse can be commissioned as plan-
                                                                                                         ned in April 2009!

                                                    re-branded companies in europe
                                                    date        country     New Name                                  former Name

                                                    01.04.09    SE          HAVI Logistics AB                         Scandlog AB
                                                    16.02.09    DK          HAVI Logistics ApS                        Danlog ApS
 As ALreAdy mentIoned in the last edition           28.01.09    BE          HAVI Logistics BVBA                       MLS N. V.
 of alphabet, we are currently in the process       20.01.09    NL          HAVI Logistics B. V.                      MLS B. V.
 of coordinating the roll-out process for all       15.01.09    NL          HAVI Logistics Environmental              ESM BV
 HAVI Logistics companies. In the upcoming                                  Services B. V.
 editions of alphabet we will inform you of         12.01.09    NL          HAVI Logistics IS B. V.                   Alphasoft
 further developments concerning the next           29.12.08    PT          HAVI Logistics Lda.                       DC Bens
 steps we are taking to become a unique             23.12.08    LT          HAVI Logistics UAB                        Logislita UAB
 global brand.                                      01.12.08    ES          HAVI Logistics FSL, S. L.                 LINK Servicios Logisticos S.L.
                                                    01.12.08    IT          HAVI Logistics s.r.l.                     Italog s.r.l.
                                                    01.12.08    NO          HAVI Logistics AS                         Loginor AS
                                                    21.11.08    EE          HAVI Logistics OÜ                         Baldis Estonia OÜ
                                                    03.11.08    PL          HAVI Logistics sp. z o.o                  Logpol sp. z o.o
                                                    03.11.08    FI          HAVI Logistics Oy                         MD-Scand Oy
                                                    15.10.08    CZ          HAVI Logistics Shared Services s.r.o.     new company
                                                    09.10.08    DE          HAVI Logistics GmbH                       WLS GmbH
                                                    20.08.08    EU          HAVI Logistics IS GmbH                    amigon GmbH
                                                    27.07.08    EU          HAVI Global Logistics GmbH                Alpha Management GmbH

Description: Logistic Company Organization Charts document sample