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news from HAVI Logistics
Showing a strong face
worldwide
HAVI Group and its
three pillars
Exceeding all
expectations
Our new customer
Pizza Hut
Driving into Future
Worlds
Onwards to new horizons
with our innovations
No.20
July 2009
The Global Lead Logistics Provider
02
Editorial
Doing something different
I
nnovation is the main topic of this edition and
also one of our most important and challenging
management topics. It is important because in
our competitive environment being “cutting edge”,
meaning being innovative, is a prerequisite for a
long term sustainable organization.
HAVI Logistics always listens mindfully
to its customers. We know their needs very
well, and we were already aware of that when
our company was founded 28 years ago. Our
company's founding was the result of a business idea that was brilliant precisely because it
was simple, but brought a quantum leap in customer benefit. Instead of supplying frozen
goods separately from the non-frozen products,
we delivered them all together using vehicles
with separate sections for goods at different
temperatures. That made the logistics for the
restaurants both simpler and more efficient. This
superior concept was innovative at that time
and is innovative even today. What we call today “One Stop Shopping” is still the basis of our
customers’ benefit. Of course since that time
we have not rested on our laurels but rather developed further innovative concepts like for instance Ecosima or WebLog.
Our innovations are based on a stable
foundation - our incomparable Corporate Culture* which is and will remain also “cutting
edge”. We are open-minded about new ideas
and have a common and clear understanding
of what successful innovations are. We are encouraged to develop a sense of passion for innovation that delivers tangible results: our multi-temperature trucks, our double-deck trucks
and our Food Town concept are innovations increasing the efficiency in our customers’ entire
supply chain. GAuDi, and for instance Pool&Push
as service innovations, together with our innovations in environmental protection like using
biodiesel or “freezing with the sun” conclude the
picture of a “cutting edge” organization.
Doing something different is the common
element of all our examples of successful innovation. They can have totally different sources of
innovation but the result of innovative ideas is always the same: increasing the performance of
our services, increasing the efficiency four our
customers, or both of these at the same time.
Luca Gnecco, Chairman and CEO, HAVI Global Logistics
*A reprint of the HAVI Logistics guideline to Corporate Culture was already presented at the European
Management Meeting in June.
table of contents
COVER STORY: Innovations/Future Worlds 03 I Fishing in an ocean
of ideas 04 I 05 Learning from the future 06 I 07 Interview with Jörg
Erdmann 07 Rich in ideas
Worldwide
In this issue you can find out about many exciting HAVI Logistics innovations!
08 I 09 Showing a strong face worldwide
company news 10 Wonderful new world 11 Stars of Germany I
GAuDi on the go, Germany-wide
New Customers 12 Exceeding all expectations! 13 It’s our
pleasure! I Looking forward to the next Million!
ENVIRONMENT 14 Great climate in Norway I Successful recertification according to ISO 14001 and 22000 15 Brand-new service for
McDonald’s Belgium I Further environmental services 16 Hats off to
our Turkish Top Performer! I Icy innovation
Human Resources 17 Getting prepared for the future I Make an
impact!
NEWS IN BRIEF 18 New DC for Northern Italy I HAVI Logistics
Managers of the future 18 I 19 Construction work in Duisburg
19 Team spirit inside 20 A great inventor retires I Duisburg, we have
a problem I Did you know ...
alphabet is printed on Aleo Silk 130 g/sqm. Aleo is produced using 50% recovered fibre with
50% virginfibre, and is an FSC certified product. Further more Aleo is climate neutrally.
Imprint
Proprietor: HAVI Global Logistics GmbH
Publisher: Christoph Thünemann
Content and Style Editor: Jasmin Schürgers
HAVI Global Logistics GmbH, Geitlingstraße 20, 47228 Duisburg, Germany
Phone: +49 (0) 20 65 695 258 Fax: +49 (0) 20 65 695 252
Email: info@havi-logistics.com http://www.havi-logistics.com
Publisher Council: Luca Gnecco, Haluk Ilkdemirci, Hans-Werner Krohn, Sven-Carsten Sachse
Layout: Simone Lenth, denkmalfrei, Philosophen-
weg 12, 47051 Duisburg, Germany
Printer: Druck-Service Weirich GmbH, Industrie-
str. 17, 41564 Kaarst, Germany
This and the following editions would not be realized without the great help of our HAVI Logistics
members and all the other System Players. Thanks in advance for sending interesting topics
to be published in future.
03
Cover Story
Fishing in an Ocean
of Ideas
“The Innovators are the people who drive the national economy.” According
to the Austrian economist Joseph A. Schumpeter (1883-1950), innovation – i.e.
entrepreneurial thoughts and actions – is the very heart of the economy, and in particular of a modern economy.
However, the topic of innovation is much more varied and exciting than Schumpeter's definition might suggest.
T
he term “innovation” is derived from the
The economy of the future will be an
Latin word “novus” (“new”). Schumpeter “innovation economy.” This is generally acgreatly influenced the meaning of the term cepted today. Schumpeter gave new meanings
“innovation” as we use it today – in the sense of to the terms “innovation” and “innovator,” actechnical and economic development. Among cording to which innovation is the application
the general public innovations are principally per- of a new technical or organizational developceived as new products. Yet there is a lot more ment, not just its invention. Economic success
innovation that the public never sees, deep in- will depend primarily on whether companies are
side companies – things such as process inno- in a position to create new products, ideas and
vations, application innovations and innovative procedures, and to adopt innovations rapidly. In
forms of organization. So far
other words, today companies already
no one has come up with a
need most of all the ability ″to anticiconcrete definition of innopate future trends and to shape them
vation, yet the impact that
themselves as far as possible. Here
innovations have on the
we find Schumpeter's famous idea of
economy is plain to see: ina “process of creative destruction.”
novation brings innovative
This means that every economic decompanies, the innovators
velopment builds on creative destructhemselves, a brief monotion. The destruction of old structures
poly and an associated
again and again leads to the reshuf“pioneer’s dividend.” That is
fling of the factors of production. So
Joseph Alois Schumpeter
the innovators enjoy a finandestruction is necessary for reorgani(February 8, 1883 – January
cial advantage arising from
zation to take place. Companies thethe new development and 8, 1950) was an economist
refore have to make a conscious inmaybe also higher produc- and political scientist born in vestment in researching trends and
tivity, or an advantageous Austria. He popularized the
future developments and possibly also
term creative destruction.
position on the market.
expand their own capacities to do so.
“Innovate, adapt or die!” – Those who do not
create innovations themselves or react to them
fast, will disappear. Innovation is regarded as the
universal key to more growth. And in the long
term it is actually the only key, because everything else is limited: the ground, the material,
capital and people’s working time etc.
Knowledge, however, is available to everyone. All of us can use it without causing detriment to anyone else. This special fact allows
the economy to grow over the long term and
not to fail when resources get scarce. But will
human beings always go on developing enough
knowledge for the global economy to continue
growing? Innovators are often compared to fishermen fishing in an ocean of ideas. There will
always come a time when it gets more difficult for them to find new ideas because the seas
eventually become empty. The optimists, on the
other hand, maintain that knowledge generates
new knowledge. They say that every innovation
is in some way a combination of existing ideas.
And the more of them there are, the greater
the chances of coming up with new combinations of ideas.
A few examples of HAVI Logistics innovations
1981 Even the foundation of HAVI Logistics was itself an in-
1982 The commission for developing a tailor-made
novation on the European logistics market: McDonald’s
distribution and business software and the in-
commissions us to take over the complete distribu-
stallation of suitable computers goes to Kissels
tion of frozen, chilled and ambient goods – at that time a
GmbH. The seminal Kissels software com-
unique concept in Europe. Right from the beginning, HAVI
prises order management, receipt of goods,
Logistics established standard costs accounting, which is
warehouse accounting and financial accounting,
otherwise rare in the food industry, as an important instru-
ordering and above all standard costs account-
ment by introducing the goods clearing account.
ing to ensure transparent trading.
04
Cover Story
Learning from the
Future
HAVI Logistics' success today has its origins in the innovations of the past. Customer benefit has grown out of the innovative services that we have been driving forward
for the last 28 years. But is this sufficient for the future? Does it represent a quantum jump in customer benefit?
Where does the innovator HAVI Logistics stand today?
If we take a look at HAVI Logistics from
the perspective of our customers, what do we
see? We see that our business model is very
well received and our customers feel that we
understand them. HAVI Logistics brings them
additional value, i.e. customer benefit. We do
not burden our customers – on the contrary,
we do everything to relieve them of burdens.
In order to carry on doing this in the future,
we also have to continue being innovative and
always generating new benefit, new ways of
adding value, and changes for our customers
– all in the shortest possible time. This is the
only way that we will be able to ensure the
existence of our company.
What happens if a company fails to innovate? One such example is the German company Dual. Dual became Germany's market
leader with its record players and electronic
entertainment devices. That was way back.
In 1982 Dual went bankrupt. The traditional
company, born out of innovation in the year
1906, was no more. What had happened?
1988 Together with the McDonald's
Dual had failed to move with the times. Record players were replaced by CD players.
Today we are right in the middle of a process of change that has even caught up
with CD players. Now we get downloads
from the Internet. I-Pods and MP3-Player are
in demand and change will continue apace.
The competition is not sleeping on
the job and so even HAVI Logistics is not
being spared. The world around us and the
demands of our customers are changing all
the time. Our task is therefore to continually extend the lifecycle of our service portfolio through innovation. Coming to a standstill or always looking in the rear-view mirror – however pleased and proud we are of
our past achievements – is not going to help
us here and now. Hermann Kahn, an American cyberneticist and futurologist, once said,
“Anyone can learn from
the past. Today the point
is to learn from the future.”
1991 In cooperation with a vehicle
Here is an example of how it works: PCs
have conquered offices all over the world, making typewriters a thing of the past. Many typewriter manufacturers went bust – but not
IBM. Why not? IBM recognized the potential
of the PC. Together with Microsoft DOS, Windows and Word, IBM contributed to its resounding success. IBM carries out active lifecycle management. IBM is still going strong!
If HAVI Logistics wants to remain in the competition in the long term, we will have to do
what IBM does. We have to look for new, innovative services, processes, systems and
structures all the time. But the key point is
that we should look only for those that offer
our customers a greater benefit than what is
currently available on the market.
But what is customer benefit? Customer benefit can be seen in three dimensions: time, costs and quality. As an innovator,
HAVI Logistics is working on precisely these
aspects. We keep on questioning how our processes and services can save our customers
1996 HAVI Logistics in Switzerland devel-
1997 ILOS arrives. The new busi-
suppliers FSB Backwaren
manufacturer, HAVI Logistics in
ops the “mobile concept.” A special
ness software replaces Kis-
and Esca Food Solutions,
Austria develops a special short
swap body designed as a truck body
sels after 14 years. The new
HAVI Logistics puts the first
trailer with a steerable rear
enables the driver to load a container
system developed in-house
Food Town in Europe into
axle. This technical innovation
from a railroad car onto his truck
is implemented as a standard
operation. Today HAVI
enables us to deliver even to
single-handed. A crane is no longer
at HAVI Logistics, largely har-
Logistics is a partner in ten
restaurants in inner-city areas
needed. This environmental friendly
monizing the ERP application
European Food Towns.
without any problems.
solution saves time and money.
right across Europe.
Cover Story
time and make their processes faster. One way
we do this is to use Ecosima (Economic Store
Inventory Management Assistance – introduced in 2005). When it comes to quality, the
important thing is how our customers perceive our services. By introducing Pool&Push
in 2005, for instance, we have created innovation in promotion management. This has
considerably improved the key feature – the
customer benefit – of our services. The customers no longer have to do the ordering. We
have relieved them of that burden. And HAVI
Logistics' outstanding IT generates added value for our customers, while also giving us the opportunity of expanding our
horizons. The best example is the development of SCR (1999), which is now being
used worldwide as Version 5. Such IT systems, which not only contribute to increasing transparency along the whole supply
chain, but also contain highly advanced business intelligence solutions, are crucial requirements for the provision of our "all in one" services as “The Global Lead Logistics Provider”.
So customer benefit arises from and
through innovations. And for HAVI Logistics,
innovations in their turn have two general types
of effects: indirect or direct effects. To us, "indirect" means that we search internally for new,
innovative ways of finding solutions relating to
our own business system. This means that we
must keep on asking ourselves the question of
whether the service we offer today indicates
the direction for the future. To this end, we regularly check up on our workflows, systems,
structures and the resources we use, such
as DCs and trucks. Innovations with "direct"
effects, on the other hand, create innovation
in the customer's processes. They affect the
customer's business system directly. This is
how GAuDi (2009) works, for example.
HAVI Logistics is “The Global Lead
Logistics Provider”. We plan, steer, control,
and create innovations in the goods, information flows and finance streams for our customers. We continually optimize the logistics all
the way from the supplier to the customer. In
doing so we keep on asking and answering this
one question: how do we come up with innovations that improve customer benefit all along
1999 SCR (Supply Chain Release) is
the supply chain? That
consequently increase
the competitiveness of
our customers? HAVI
Logistics has three separate "think tanks:" a basic
tank, a new-ideas tank, and
a development tank. The basic tank contains our
current portfolio of
services, which
has been developed from the innovations of the past.
The new-ideas tank
is full of services for
which the initial development work has
largely been completed. They are
either service innovations with direct
effects, such as Invisible Delivery (developed in 2005), or those with indirect effects, such as Tracking &
Tracing (2005). Both of these services have
enabled us to increase customer benefit and
improve our customers’ competitiveness. These innovations secure our survival in the short
term. The development tank contains innovation measures that are still at the testing stage.
They are intended to form the foundation for
our future potential success. All the ideas and
innovations are passed on to the various HAVI
Logistics companies. The Center of Competence (CoC) Operations was created especially
for this purpose.
nefit many companies, it
can even be declared an international HAVI
Logistics standard. This is what happened with
the HAVI Logistics probe thermometer, which
transmits the temperatures it measures via an
infrared connection to a small, portable printer that then prints the labels on self-adhesive,
colorfast paper.
Whether HAVI Logistics successfully turns out innovations is
determined solely by the company itself.
The team has the strategic task of continually filling these three tanks by means of
innovation processes and assisting with the
implementation of new ideas. The foundation for this includes examples of best practices. If a HAVI Logistics company has resolved a problem particularly efficiently, the CoC
Operations makes sure that this good example is passed on to all other HAVI Logistics
companies. If it turns out that the idea will be-
With our innovations we secure our
future viability in a constantly changing
world. We are aware of the major barriers and
requirements for successful innovation management. HAVI Logistics would like to make
its customers' business easier, better and
more efficient through our services. The key
qualifications of HAVI Logistics employees include the ability to shape the future by means
of innovative ideas and to continually question
day-to-day aspects. The high quality that HAVI
Logistics' customers put their trust in grows
out of this commitment, this “internal team spirit” maxim. Ultimately this is where the future
of HAVI Logistics is decided.
2000 HAVI Logistics introduces biodiesel made from
2001 Introduction of WebLog. The McDonald's
The CoC is a “special unit”
within HAVI Logistics.
developed. SCR is an extensive
rape seed oil. First of all, the whole German
Restaurants can work on their order proposals
software package including
fleet is converted to the new organic fuel. Other
via the McDonald's Internet and then send
ILOS as a solution for the
HAVI Logistics countries follow successively.
them back as orders, and in addition they can
operating business processes
That was the largest environmental project at
post their goods received from the WebLog to
and also covering the areas
any time in the history of HAVI Logistics. The
the RDS system. Furthermore, WebLog offers
of requirements planning and
trucks are regarded as the most environmentally
our customers a function for writing emails to
business intelligence.
friendly in Europe.
the HAVI Logistics sales department.
06
Interview
Interview with
Dr. Jörg Erdmann
Anyone who develops ideas into innovative
services that bring the customers business advantages will stay ahead of the competition. Not least for this reason is the topic of innovation of huge importance to a company like HAVI Logistics. Jörg Erdmann (JER) is Vice President Business Development & Innovations at HAVI Logistics. He focuses both on our new customers and on maintaining our competitiveness.
alphabet: What is the situation regarding our
ability to innovate as a pre-requisite for growth
and market success?
JER: Our business with McDonald's has set
standards. I don't know any other organization
of this size who leave the implementation of
their supply chain to a logistics service provider as consistently as McDonald's does with
us. Only customers who truly believe in their
concept and work hand in hand with a service provider they trust implicitly can do this.
We take our customers seriously and realize
our agreements with them reliably and in high
quality. However, where there is light, there is
obviously also shadow.
alphabet: And where exactly do you see the
shadows?
JER: Let me use an image to illustrate what I
mean. Monocultures bring great benefits over
a long period of time, until they are suddenly
attacked from the outside and collapse because they are not resistant enough. They can
no longer react appropriately to external influences. The simple solution for us is to open
up consistently to more new customers. This
will strengthen our customers and ultimately
ourselves as well.
alphabet: Do we offer the same portfolio of services to all HAVI Logistics' customers?
JER: That would be impossible. Convenience
stores, for example, have a completely different type of business than our customer
McDonald's. All the customers have different
structures and our work with them must prove
itself over several years, until mutual trust has
created a close partnership, and with it a deep
level of integration. But we give our ideas and
2001 The HAVI Logistics double-deck trucks'
our concept a particular orientation precisely
because of these different requirements. That
is real innovation.
alphabet: How do we do that?
JER: By listening to our customers. HAVI
Logistics works in close contact with its customers – and that makes us successful. We
are different than Apple or Xerox, for example,
who aim for product leadership and operate
huge research facilities with massive innovation processes. However we create great benefits for the customers through our Customer
Intimacy strategy. Customer Intimacy aims to
treat all customers individually and show them
that they can have a greatly simplified service
process. We see ourselves as our customers′
backbone, and as a logistics service provider
we assume the responsibility for their success.
I see this happening again at the new customers such as BP and IKEA, and also in current
acquisitions. Even if changes at the customer
are not always easy, we have the strong will to
help our customers and continually make improvements in their business by providing our
support. Our basic concept for all our customers is always very similar – and this is also
very important. However, every customer poses different challenges for us. If we can do
an excellent job of meeting these challenges,
we are innovative.
alphabet: Could you give us a couple of examples?
JER: BP, for example, would like to control its
own supply chain in the future. However, even
after cutting the ties to wholesalers, BP must
still be able to purchase supplies at favorable prices. Here we look for ways and means
2002 The complete fleet of HAVI
of supporting our customer. The situation
with IKEA is different again. In this case
the challenge is to provide the logistics
for each national assortment and the
globally standardized international assortment simultaneously. On the other
hand, IKEA has no problems with limited storage space at its stores. In turn
nearly all restaurant chains meet these
challenges, but here our Invisible Delivery concept really comes into its own.
alphabet: And what does HAVI Logistics
internal ability to innovate look like?
JER: We have to learn to cope even faster
with changes that the customer does not
notice directly, but which are important for our
internal structures and processes. We are on
the way to becoming a company with several
strategic customers in each country. That requires even more standardization of internal
workflows. At the same time we must systematically make our best practices - that
have been successfully introduced in one
country - available to other HAVI Logistics
companies, too. And we have re-oriented our Center of Competence (CoC),
which belongs to HAVI Logistics Operations, precisely on achieving this goal.
The CoC team supports the Business
Process Sponsors for Trade, Transport
and Warehouse in the preparation of important standardization projects. Moreover,
the CoC is also keeping an eye open for best
practices in the various countries where HAVI
Logistics operates, and passes them on to
where they are needed. Innovations are only
successful if they are implemented as widely
as possible.
2005 HAVI Logistics introduces Ecosima and develops “Invisi-
new construction with single wheel sus-
Logistics in Austria is con-
ble Delivery.” Economic Store Inventory Management As-
pension offers greater capacity that can be
verted to AME biodiesel.
sistance (Ecosima for short) standardizes all the processes
utilized in the best possible way due to the
This fuel is a methyl ester
in the customers' warehouses. The practically identical
separation of two temperature-controlled
made from used cooking oil
organization of the shelves in every restaurant and the
loading levels: the upper one takes large-
from McDonald's Restaurants.
labeling of the positions on the shelves with pictorial labels
volume, lightweight goods, while the lower
are prerequisites for the success of Invisible Delivery, HAVI
level is for small, heavy loads.
Logistics' system for delivering and shelving goods.
07
Interview
Rich in ideas
There’s no future without the
relentless pursuit of innovation.
This long-standing belief is even more important today in view of the current
state of the local and global economy. Ideas from committed employees are
one of the most important factors in triggering and implementing innovations.
HAVI Logistics in Italy started to exploit this important resource long ago and
consistently rewards employees for good ideas.
alphabet: What are the plans surrounding the topic of innovation for the
coming years?
JER: At this time the CoC is concentrating strongly on Trade, Warehouse
and Transport. The team is going to
draw up a structured analysis of the
most important overarching ideas.
The analysis will aid the preparations for actually implementing the
ideas and also for adapting those
ideas that have already been successfully realized in certain HAVI
Logistics countries. There
is some latent potential here. Wherever we
already have a firm
grip on ″mature″
ideas, we want
to support HAVI
Logistics employees in a consistent and structured fashion as
they develop new
ideas.
The ideas submitted by employees are collected in a database set up
especially for this purpose. They are then evaluated by a five-member Innovation
Team in order to measure their real effectiveness and their potential to produce
a considerable economic and quality improvement for HAVI Logistics and all our
customers. An idea whose implementation appears to be realistic and beneficial
is rewarded monetary. If the Innovation Team decides that the proposed idea merits testing, the employee receives an additional payment. Finally, HAVI Logistics
Italy is willing to pay for any idea that is put into practice after testing. At the end
of December 2008, 42 of the 150 ideas typed in the Idea Management database
were deemed as innovative and rewarded. At present the database contains a
total of about 200 new ideas. Among these ideas is one that has received strong
appreciation from McDonald’s Italy:
Thanks to his experience with the Field Service,
Gianfranco Carrabetta understood that the management
of salads inside restaurant cells could be improved. He
asked several local artisans to create a very simple “dolly” on wheels into which the salad boxes fit exactly. A
trial of the new dolly was held at several McDonald’s restaurants that had volunteered; within a few months
more than 40% of the Italian McDonald’s restaurants had
requested it as a standard product to be ordered from
HAVI Logistics Italy. This innovation has advantages for McDonald’s crew in
terms of picking time reduction and best FIFO management and for restaurant
construction in term of a reduction of chilled space
requirements. Sometimes simple ideas create major advantages!
:
The idea management carried out by our
team in Italy is a good example of HAVI Logistics' efforts to accept suggestions for improvement put forward by our employees.
alphabet: What innovations do you value and
enjoy as a private person?
JER: Basically I think that we should not be
trying to re-invent the wheel. I value improvements that make things simpler or more enjoyable. Very often these days wine tastes better
than it used to, guitars produce a better
sound, and surfboards and sailing boats are
now much easier to build and sail.
2005 The HAVI Logistics Tracking and Tracing
“Listen more actively to the employee’s requirements
and suggestions for improvement.”
At this year's European Management Meeting, the top management of
HAVI Logistics defined Idea Management as an important point to be evaluated by employees in our Employee Satisfaction Survey (see also page 17). Efficient Idea Management is a good way to mine the lode of valuable ideas in the
heads of our employees. In this context, HAVI Logistics, as "The Global Lead
Logistics Provider," can only win and secure its long-term growth. To guarantee Idea Management on a European level, our CoC Operations is responsible
for collecting ideas with a group wide focus. With its open-minded approach
CoC Operations supports the process of turning good ideas into practice.
2007 Photovoltaic technology is an environ-
2009 GAuDi roll-out. HAVI Logistics takes on total responsi-
system is an IT innovation resulting from
mentally friendly alternative for generat-
bility for the McDonald's supply chain. This comprises
EU Regulation 178/2002. As food safety
ing electricity. HAVI Logistics adopts
automatic delivery to the restaurants of all materials, re-
is top priority at HAVI Logistics, we took
this eco-innovation. In our Spanish-
ceiving and shelving all the goods required in a restau-
decisive action. Together with a Danish
based Distribution Center we "freeze
rant in accordance with the FIFO principle, inventories
software house, we developed the HAVI
with the sun," since we have been us-
and warehouse optimization. Restaurant employees
Logistics' traceability solution.
ing 70% of the energy we get from the
can now concentrate fully on their core competencies.
sun to run our deep-freeze stores.
(Please read also the article on page 11)
08
Worldwide
Showing a strong face
worldwide
In 2002 HAVI Logistics made
the transition from a strong
European organization to a Lead Logistics Provider that is perfectly
positioned worldwide. What had happened? The U.S. company
HAVI Group, LP took over most of the shares in our company and
thus paved the way for us to become the unbeatable successful
logistics partner we are today. Together with two further pillars
of our main shareholder, HAVI Logistics looks back on a
successful history and forward into an extremely
promising future.
HAVI Group history: where it all began
In May 1974 two men, Ted
Perlman and Bob Rocque, decided to form a company to respond
to the needs of the McDonald's restaurant system. Later that
same year, the HAVI Group built Perlman-Rocque Lemont, its first
permanent facility dedicated to providing distribution services to
McDonald’s restaurants in the Chicago metropolitan area. The
origin of the name derives from a joint effort as well.
Since then HAVI has brought its operations up to a global scale.
The company is comprised of fully functioning divisions specializing
in logistics, distribution, food processing, packaging and administrative services, and promotional marketing. HAVI Group, LP strives to
provide high-quality value-added services to its customers.
The company’s philosophy
“HAVI is a group of companies which strive to succeed by maximizing
every individual’s potential in a positive work environment. As a group, our
objective is to satisfy our customers and profitably grow our business while
practicing ethical behavior. We will continue to prosper by embracing these
principles while being sensitive to the cultures and diversity of those with whom
we interact as a growing international company. Above all else, we will always
“Deliver the Promise.” Theodore F. Perlmann Chairman and CEO HAVI Group, LP.
The HAVI companies: Our experts in the field
The global business environment is ever changing. In order to successfully “Deliver the Promise” to our global customers, the HAVI Group, LP has
a structure comprising four main companies: HAVI Global Solutions, HAVI
Logistics, HFS North America and The Marketing Store.
Get to know The Marketing Store
The Marketing Store is one of the world’s largest privately held integrated marketing
communications companies. Acquired by the HAVI Group in 1998, the company has over
800 employees in 12 offices on five continents. The Marketing Store’s Mission is “to harness the
creativity of all of their people to deliver great ideas that bring the spirit of their client’s brands to life.”
It is with this mission in mind that The Marketing Store strives to be the best idea company in the world.
Get to know HAVI Global Solutions
HAVI Global Solutions is a dynamic, growing, customer-focused enterprise dedicated to providing leadership,
innovation and a sustainable competitive advantage in Packaging, Strategic Sourcing, Promotions Management, and
Supply Chain Analytics and Integration solutions for our customers. The Mission at HAVI Global Solutions is to be the
customers’ expert partner in managed supply chain solutions delivering value and growth from source to consumer.
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09
Worldwide
Get to know HAVI Groups' Logistics Pillar: HAVI Logistics and HFS North America
HAVI Logistics is divided into the business areas of Europe and the greater Asian region. More
than 6,200 employees worldwide work under the umbrella of our strong brand. Nearly
15,000 customer outlets worldwide are supplied from 72 Distribution Centers. HAVI
Logistics is “The Global Lead Logistics Provider” for food and non-food logistics
and one of the total of three pillars supporting the Havi Group, LP.
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HFS North America is the second part of HAVI Group's Logistics pillar. As
well as HAVI Logistics, HFS is a team of supply chain solution experts
that provides customized distribution and logistical services aligned to
meet the customers’ needs. The company receives and consolidates shipments from multiple vendors, purchase inventory and
distribute a broad range of SKU’s for its customers all with
varying temperature and handling specifications. HFS North
America has specialized capabilities to handle and distribute
highly perishable products (“fresh to frozen expertise”) for
its customers. Additionally, HFS North America can evaluate its customers’ systems to improve efficiencies and
optimize consolidated distribution. The company aligns
its business solutions to improve the supply chain,
always delivering its legendary service. HFS North
America ensures customer success by tailoring
“distribution services” and “purchasing services” to
meet the customer’s business needs. In January 2010, HFS will also change its legal form and
company name to HAVI Logistics North America.
It is an exciting time for HFS North America and
the team is enthusiastic to take part in fulfilling
the vision of a global brand.
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IPLPerseco and ISIS have been rebranded as HAVI Global Solutions
HAVI Global Solutions in Germany moves into
new offices
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At the beginning of 2009, the two HAVI Group
divisions HAVI Logistics and HAVI Global Solutions
were optimized and aligned their internal resources.
The initial phase of this restructuring in Europe comprised the integration of ISIS Europe into IPLPerseco.
At the beginning of June the next significant phase in
this process, namely the full integration of IPLPerseco
into HAVI Global Solutions, was started. As a result,
IPLPerseco will be rebranded as HAVI Global Solutions.
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The entire former IPLPerseco and ISIS organizations are looking
forward to presenting their new brand to customers in a consistent
manner around the globe. The move to the new Duisburg office in the
“Looper” building took place on June 15, 2009. On the fourth floor of the
s
building the employees now occupy an ideal working environment covering
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over 1,941 square meters and including 92 working spaces.
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HAVI Social Awareness: making our world a better place!
An important component of the philosophy embraced by all the HAVI Group, LP companies is
sensitivity to the needs of the communities and environments in which we work. You may not be
aware that at each HAVI company around the world there are individuals making positive impacts on their
local communities and environments. These efforts range from volunteering in our local communities to constructing
large-scale solar panel systems. Since May the HAVI Group, LP has a new website to educate, celebrate and share what
all divisions of HAVI Group do to make our world a better, safer and greener place: www.havireach.com.
“What sets HAVI apart from other corporate citizens is our proven commitment to our people, our desire to give back to
the communities in which we operate, and our respect for our planet. Corporate Social Responsibility is at the very heart
of our strategies and philosophy.” Chuck Schulman Chief Governance Officer and Trustee
10
Company News
Wonderful New
World
"Home office," "Thin Clients" and "cloud computing" are buzz words familiar to
everyone who lives and works in the modern world. Nevertheless, many companies
are still skeptical about these IT innovations. While such companies wait for proof of the practicality of these
innovations, HAVI Logistics has already been using the latest information technology – and deriving the associated benefits – for quite some time.
H
AVI Logistics is cutting edge. Video
conferences; communicator; webcams, laptops and mobiles; applications such as virtualization software; and –
last but certainly not least – we make first
steps with techniques like cloud computing.
HAVI Logistics provides what a global player
needs and supports its employees by offering them up-to-date information technology "extra" empowering them to deal with
overcrowded offices and traffic jams and
establish a sound work-life balance. These
tools are already widely used at HAVI Logistics and are especially valued by employees e.g. returning to work after maternity or childcare leave. They are
one of the many reasons for the
high employee retention rate
at the company. In addition,
implementing these techniques throughout HAVI
Logistics offers possibilities for cutting costs
for hardware, licenses
and office space.
Cloud computing is a good example of this trend.
The basic principle
is very simple: as Internet connections get
faster and faster, more
and more data and programs are now stored on
central servers in the Internet
instead of on computers at the
individual work places. This means users can now access their data
at any time and place per cellphone or
PC; the computer user is surrounded by
a "digital cloud" of data. The associated
cost flexibility is another important advantage of cloud computing for HAVI Logistics.
With cloud computing we could save up
to 80 percent of space and 60 percent of
electricity and air-conditioning costs at our
computing centers. Furthermore, the company is charged only for the server capacity
it actually requires at the cloud computing
providers. This means that we do not have
expenditures for resources we do not use.
It is not only the HAVI Logistics employees working at home offices or in the IS
sector who use cloud computing. The virtual
workplace is also available, for example, to
our Shared Service Center in Prague in the
Czech Republic. Nor does the use of “virtual
workspace” require a thin client; it is possible from every PC regardless of its location.
Everyone benefits from this technology, which is expected to eliminate problems
such as installation of updates at overly
long intervals, applications that do not work
right due to local circumstances, the need
for on-site support, uncontrolled installations, and a failure to have all
the right licenses in place. And
when it comes to the preferred location and the particular PC in use, we can
satisfy the preferences of
our employees without
running a security risk:
in general all suppliers
of online data storage
space break down
the data entrusted to
them into non-readable fragments via a
complicated encoding
procedure. Only after
the user has logged on
with his or her user ID
and password does the
software reassemble the
desired files. To achieve even
more security, the data are distributed among several servers
around the (wonderful new) world for
storage.
11
Company News
Stars of Germany
At the beginning of this year, HAVI Logistics
Germany and S.T.I. Freight Management transported a very delicate load to Los Angeles. The very fragile goods had to be delivered to L.A. at very short notice.
Nothing special for our experts, you might think? Well, in this case it was, because the load was the eye catchers
for a McDonald's ad starring Heidi Klumm.
A
stylish gala evening is just getting started.
Everybody who is anybody has been invited.
The photographers are lining up to get the best
shot of the evening. A limousine glides up. All eyes
are on the car as people wait with bated breath to see
the next great star. The door opens and… a little dog
jumps out. The onlookers are sorely disappointed and
also puzzled: there’s no sign of a star anywhere. The
next camera shot shows Heidi Klumm accompanied by
Germany's next Top Models Sara, Mandy and Marie.
They smirk about the trick they played on the photographers as they enter a McDonald's restaurant. Heidi
and their three beauties are advertising the McDonald's
campaign launched in Germany in June called "Stars of
America." Maybe the advertising boards (called standies), a menu board and a panorama display that we
flew in especially from Germany were not the center of attention, but they were definitely eyecatchers.
On 12 February of this year, HAVI Logistics Germany
was commissioned to transport the extremely fragile
and bulky items to America. The advertising boards
had to arrive in L.A. within only ten days, and this deadline was not negotiable because the ad was going to
be filmed on a fixed date. While HAVI Logistics procured the standies, boards and displays within the
shortest time, S.T.I. planned every aspect of the tricky
airfreight operation and helped HAVI Logistics complete the customs formalities.
To the great satisfaction of our customer, the advertising materials arrived on time for the
start of filming. As usual, McDonald's could be sure
that HAVI Logistics and S.T.I. would make an excellent job of transporting fragile materials, even at
short notice. So for us, the real stars in this story are
not Chicken Wrap & Co. but our colleagues in HAVI
Logistics Germany and S.T.I.
GAuDi on the go, Germany-wide!
G
AuDi is one of the most significant
innovations in the history of HAVI
Logistics. Starting out as a test in 2007,
GAuDi has advanced steadily until it attained
the status, at the beginning of this year, of one
of the most important services offered by HAVI
Logistics. GAuDi is now at the rollout phase in
Germany. Over the years we have revised the
concept several times to bring it into line with
the requirements of our customers.
The vision of GAuDi is to completely relieve the McDonald’s restaurants of all logistics
tasks by providing one big service package. The
restaurants do not have to order anymore since
HAVI Logistics is taking over this responsibility.
In addition, we handle goods reception and inventory management. We bring the goods into
the restaurants, put them on the shelves, and
carry out shelf-life rotation and even inventory
counts.
During our test phase in 2008, it finally became clear that there was a keen interest in all
parts of the German franchisee community in
taking over the responsibility for the store orders
for all articles. It was decided that HAVI Logistics
should handle this first element of GAuDi. Other
elements of GAuDi – e.g. the provision of mere
physical services for the restaurants such as
goods reception and inventory management –
are not appreciated by every franchisee. Therefore, we decided to back away from the idea of
offering GAuDi as one big package only.
We will go for a modular
approach to meet our
customers' needs even better.
The module “GAuDi Push” was born.
With the introduction of this module, order responsibility became part of our standard service
and mark-up package. HAVI Logistics has committed itself and literally promised the franchisee
community in Germany that we will take over the
order responsibility for all inventory-controlled
items step by step. For promotional items and
Happy Meals, we have already been doing this
for the total market for the last two years under
the name “Pool&Push.” Now we will take over
GAuDi
The HAVI Logistics Solution
frozen and chilled
items and other article groups will soon follow. In-store logistics –
the second module of GAuDi – is offered only
to those restaurants which are ready to pay separately for it.
Today we have about 110 McDonald’s
restaurants in Germany which simply do not order frozen and chilled items anymore: we do that
for them. Every week we increase this number
by five to ten restaurants. Other material groups
are expected to follow later. With today’s infrastructure we can only do frozen and chilled items
for 500 McDonald’s restaurants at a maximum.
This is why we plan to implement SCR5 in parallel. SCR5 represents the next generation of
supply chain tools and was developed by our
sister company HAVI Global Solutions. SCR5 is
the planning tool which will enable us to push all
inventory-controlled items for all restaurants in
the market. However, the time frame is tight. We
have to have SCR5 available in Germany before
the end of 2009 in order to fulfill the commitment
we have made to the German market.
12
New Customers
Exceeding All
Expectations!
Since April 2009 HAVI Logistics has been performing all logistics services (including strategic sourcing) for Pizza Hut in Sweden. The move from a traditional wholesaler set-up to the transparency of the HAVI Logistics business model is
an important step enabling Pizza Hut to sustain its high growth rate in the Swedish market and achieve improved
profitability at the same time.
T
he $600 dollars' start-up capital was
borrowed from their mother, the equipment was all second-hand, and the furnishings very basic. Despite these modest
beginnings the restaurant the brothers Frank
and Dan Carney opened at a busy intersection in Wichita, Kansas took off immediately
and was the start of a successful restaurant
chain. The name the brothers gave the new
business, Pizza Hut, was an unmistakable reference to the unassuming appearance of that
first pizza place. Today, 50 years later, Pizza
Hut is represented in more than 100 countries
around the globe, with more than 12,000 restaurants in Europe, the Americas, Africa, Asia
and Australia.
Since April of this year HAVI Logistics has
been responsible for delivering the complete
assortment of goods to a total of eleven Pizza Hut restaurants in Sweden. The contract
with Pizza Hut – like the first contract with our
customer McDonald's around 28 years before – was initially sealed with a handshake.
This handshake took place at the end of December 2008. For Pizza Hut the main reason
to switch from its previous supplier to HAVI
Logistics was the transparency of our business model.
“When you realize that the wholesaler solution leaves you without any clue
whether the costs depends on the price of
wheat or the price of diesel, you get the
feeling that something’s not right …,”
says Björn Källström, Managing Director
of the Nordic Restaurant Group, the country
licensee for Pizza Hut. The HAVI Logistics business model separates the purchase price of
the goods from the distribution costs and thus
makes all costs more transparent
for the customer. Pizza Hut was
also attracted by the additional
advan-
Pizza Hut Business Sweden
FACTS & FIGURES
Assortment and Volumes:
• 156 SKU (ambient, chilled, frozen)
• 88,000 cases p.a.
Ordering and Delivery:
• HAVI Logistics supplies 11 Pizza Hut
stores in Sweden
• Electronic ordering process via web interface
• 36 hours. lead time
• deliveries per site and week (average)
• Automatic invoicing
tages HAVI Logistics had to offer in comparison with its competitors: fewer deliveries, guaranteed quality, food safety and central management of the goods assortment.
Between the handshake in December
and the first delivery in April, our Swedish team
had only three months to take all the measures necessary to achieve the lofty goal
of a 100%
successful takeover. After witnessing the
outstanding commitment displayed by the
entire HAVI Logistics team, the new strategic
customer confirmed that it had made the right
decision by selecting HAVI Logistics:
"The start-up with HAVI Logistics has exceeded my expectations,”
said Björn Källström.
The cooperation with Pizza Hut has
now been up and running for a couple of
months, and there is still some fine-tuning to
do before we are where we all want to be. The
main challenge will now be to continue to exceed the customer’s expectations in Sweden,
thereby proving to Yum! Brands - the concept
owner of Pizza Hut - that HAVI Logistics is a
reliable partner which can create competitive
advantages for Pizza Hut all over Europe.
13
New Customers
It's Our Pleasure!
Gaining BP as a strategic customer in the Netherlands and in Poland
represents not only another milestone in the history of HAVI Logistics,
but also a real success story.
P
oland is not only the third-largest BP
market in Europe, but also the fastest growing. Since the petroleum giant started
doing business in Poland in 1991, it has opened over 350 gas station shops in the country.
More than 200 of them are owned by BP and
about 150 are dealer-owned.
Following the implementation phase, we
have now been working together with BP for
several months on a joint approach to further
optimize the Supply Chain processes and cost
structure. On the agenda are important items
such as:
The ambient warehouse of HAVI Logistics
in Poland. In here 1,153 items for BP
Poland are stored.
optimizing the delivery schedule
flexible routing to enable us to react
better to short-term volume fluctuations
■ closer collaboration with suppliers
■ developing a concept to support and
improve the volume planning and optimal
distribution of promotional articles
■
Since August 2008 HAVI Logistics in Poland has been supplying a large proportion of
the total shop assortment to our customer. Our
team in Poland soon reached a high level of performance, especially regarding punctuality and
completeness of deliveries. Today we deliver
about 1,200 articles to a total of 205 BP gas
station shops and since very recently we also
deliver an ice-cream assortment. We now transport five million cases for BP Poland every year.
In addition, the whole ordering process and
the invoicing is done through HAVI Logistics.
■
Our cooperation with BP is a success
story. The customer is really satisfied; this development consolidates the partnership between BP and HAVI Logistics and strengthens
our customer’s confidence in us.
The warehouse employee Hubert
Decyk from our DC in Tychy picks up
the ambient goods for BP.
Looking Forward to
the Next Million!
On May 9, 2009 RIMI and HAVI Logistics celebrated a fantastic jubilee. HAVI
Logistics in Latvia performed the one millionth delivery to RIMI in the Baltics.
I
n 1996 our Latvian-based HAVI Logistics company was founded to serve McDonald's. Since 2001 we have
been providing logistics services not only
to McDonald's but also to the retail-chain
RIMI. RIMI is represented in Latvia with 14
hypermarkets and 30 supermarkets offering
a remarkable variety of food and non-food
articles.
The past eight years has been a real
success story for HAVI Logistics in Latvia.
In addition to the constant expansion of the
delivery volume and the product assortment,
in 2004 our colleagues moved into a new
Distributions Center covering 28,000 sq. m.
The "RIMI DC" is the largest of all the HAVI
Logistics Distribution Centers and now the one
millionth delivery was sent from there to our
customer. What a great reason to celebrate!
On 9 May our colleagues in Latvia picked the goods bound for RIMI’s "Mežciems"
supermarket almost with reverence. Our driver Oskars Broks-Vitols had the honor of delivering the goods to the customer. Andris
Dobulis, Managing Director of HAVI Logistics
in Latvia, took the one millionth RIMI delivery
as an occasion to award certificates to all his
colleagues and to celebrate the many millions
of deliveries to come with a large cake.
Managing Director of HAVI Logistics Latvia
Andris Dobulis presents truck driver Oskars
Broks-Vitols with the certificate.
14
Environment
Great Climate
in Norway
HAVI Logistics in Norway is following the lead of several other HAVI Logistics
companies and running its trucks on AME biodiesel. The oil used to make French
fries, for example, ends up in the tanks of the company’s trucks. Not only does this environmentally friendly alternative
make a huge contribution to fighting global warming, but so do the trucks' new cooling aggregates, which use CO2.
T
he 565 trucks in the HAVI Logistics fleet are
among the "greenest" on the roads anywhere in Europe. The fleet runs mainly on
alternative fuels and since 2002 we have also
been consistently using AME. Acid methyl ester is a renewable raw material containing a low
percentage of sulfur. Using AME instead of mineral diesel reduces soot emissions by a good
50 percent. What's more, AME is biodegradable and non-toxic.
Since May of this year HAVI Logistics in
Norway has been operating two trucks on AME.
The environmentally friendly fuel can be obtained
at the company's own biodiesel filling station.
With the successive conversion of our truck fleet
from mineral-oil-derived diesel to AME, we are
benefiting the environment and at the same time
helping our customer McDonald's to get a firm
handle on its CO2 emissions. The use of AME
reduces emissions of greenhouse gases by 82
percent in comparison with conventional diesel. The two trucks, which distribute to the Oslo
area, are at the same time equipped with another environmental innovation: cooling aggregates that use CO2.
Using CO2 to reduce CO2 emissions might
sound at first like a contradiction in terms, but
the logic is fundamentally sound. The CO2 used
in Norway comes from the exhaust from factories
making artificial fertilizer. Instead of simply releasing the gas formed during fertilizer production
into the atmosphere to the detriment of the environment, it is "captured" and re-used for such
things as our truck cooling systems. So the cooling aggregates in our HAVI Logistics trucks in
Norway stay completely CO2-neutral. And that‘s
not all. They also have decisive additional advantages as compared to cooling systems that
run on diesel:
■
■
■
■
■
■
■
practically silent
extremely fast cooling of the loading spaces
improved temperature management
high performance ensures minimal
cooling losses during loading and unloading
long lifetime of cooling aggregates,
greater reliability
minimal maintenance costs for the
aggregates
no FCHCs/FHCs as coolants
The Norwegian premier wants his country
to be the global leader in climate policy by the
middle of this century. Norway's emissions are to
be so greatly reduced and neutralized by 2050
that they work out to be zero.
Thomas Münchausen, Managing Director of HAVI
Logistics Sweden in the mid of truck-driver Lars
Westheim (left) and Transport Manager Arne Ihlen.
Prime Minister Jens Stoltenberg wants pollution rights and countermeasures to balance out
emissions to such a degree that, mathematically, the sum total is zero. Does Stoltenberg know
about HAVI Logistics' commitment to the environment? Maybe those who criticize his ambitious target would suddenly fall silent if he presented environmental innovations such as those at
HAVI Logistics as some of his measures…
Innovative Equipment: Cooling aggregate (left)
and the CO2 gas tank.
Successful Recertification According to ISO 14001 and 22000 With respect to the standards of HAVI Logistics every sin-
gle distribution company is well ahead of the regulations for the protection of the environment and food safety. Since 2003,
however, HAVI Logistics in Hungary has been going one step further: it is the first logistics service provider in Hungary – and
the first at HAVI Logistics – to achieve the food-safety ISO 22000 certification! Now the recertification audit has taken place
and our Hungarian team did well again as expected.
S
ince February 2003 our Hungarian-based
Distribution Center has been one of the
first within HAVI Logistics to have its exemplary environmental protection activities certified
according to DIN EN ISO 14001. Our team in
Hungary thereby agreed to pursue the environmental goals set by this standard and to allow
an annual inspection by an external consultant.
In May of this year, the company was recertified
for the second time. The environmental activities
were rated as "superior" by the external auditor.
The audit protocol stressed the importance of
cleanliness and order in the warehouse, procedures carried according to the spirit of the law,
separate collection of hazardous and recyclable
materials, and documentation in general.
Additionally, our Hungarian-based company was recently recertified according to another very important standard, the ISO 22000,
which takes a very critical look at the wide field
of food safety. In 2006 it was the first of all the
HAVI Logistics companies, and also the very
first logistics company in the whole of Hungary,
to gain this certification. Our experience in the
field of HACCP and our knowledge of procedures like FIFO or the overall tracking of goods
paid off very well. We showed that HAVI Logistics in Hungary understands the requirements
of this standard and applies its elements in a
very expedient way – contributing to the highest
standards we have implemented for food safety
throughout HAVI Logistics.
15
Environment
Brand-New Service for
McDonald’s Belgium
HAVI Logistics Environmental Services, (HLES) is responsible for collecting and recycling all kinds of sorted waste from the Dutch McDonald’s
Restaurants. Starting in September 2009, however, HLES will be implementing its advanced waste management concept at our customer's Belgian restaurants as well.
Further Environmental Services
Besides taking care of the operational procedures and the administration
of the McDonald‘s Recycling System
in the Netherlands and Belgium, we
also offer waste management and reverse logistics in other HAVI Logistics
countries in Europe.
Cardboard
In various markets, HAVI Logistics
companies collect used cardboard from McDonald’s restaurants and forward it for adequate
recycling.
Batteries
The specially designed recycling truck is on the road seven days a week.
S
ix specially designed green recycling trucks are on the road seven
days a week collecting sorted waste
consisting of corrugated and dry paper,
plastics, food waste, used cooking oil, residual waste and small chemical waste.
HLES makes an important contribution
to the protection of the environment by
assuring that no type of waste from the
McDonald’s restaurants is disposed of on
dumps.
From September on the McDonald’s
restaurants in the Netherlands will
not be the only ones receiving this service from our Netherlands-based company; in addition, 40 of the 59 McDonald's
restaurants in neighboring Belgium have
also subscribed to various environmentally
friendly waste recycling services offered by
HLES. Preparations already got underway
at the beginning of March 2008; the operational start will take place in September
2009. At first one truck will be in service
for Belgium.
HLEs' most important task is to
carry out waste collection in Belgium in a
professional manner. After that, in the year
2010 to be exact, the recycling service will
be extended to Belgium literally across
borders: one of the two trucks in service
for the Belgium restaurants will also serve
McDonald's restaurants in the southern
part of the Netherlands. This combined
system will give our HAVI Logistics company the opportunity to create a genuine
win-win-win situation.
McDonald’s customers can return
used batteries from Happy Meal
toys to the restaurants in some
countries. Our delivery drivers take
the used batteries – collected in
special boxes – back to the DC,
where waste management companies collect them for recycling.
Translites
HAVI Logistics in Germany has
introduced a system which allows the McDonald’s restaurants
to return neon signs – so-called
translites – to the HAVI Logistics
drivers. Back at the Distribution
Center, the translites are disposed
of by special waste management
companies.
Organic Waste
Neon Lamps
Environmental Reporting
In Switzerland, we also ensure,
among other recycling services,
the collection of organic waste
from McDonald’s restaurants.
In Hungary, a regulation classifying old neon lamps as hazardous
waste has been in force since
2004. The neon lamps must be
reprocessed separately. HAVI
Logistics provides a valuable service by taking back the old lamps
for reprocessing.
HAVI Logistics supports McDonald's
by preparing various environmetal
reports, e.g.:
■ Local and European environ-
mental reports
■ Drawing up packaging reports
for various European countries
■ Waste of Electrical and Electronic Equipment reports
Please read more about HAVI Logistics' Environmental Activities and Services in our "IT'S EASY TO BE
GREEN" brochure - available under: www.havi-logistics.com/ News & Media / Publications / Brochures
16
Environment
Hats Off to Our Turkish
Top Performer!
In this section of alphabet, we have in the past reported
on the excellent results achieved by our HAVI Logistics
companies and Distribution Centers in the DQMP and SQI audits. Much to our dismay, we overlooked a very
special Top Performer in the last edition.
By means of this regular feature,
we plan to keep you, the reader, totally up
to date on our accomplishments with respect to observance of all HACCP criteria
and our continual efforts to guarantee food
safety in all sectors of our organization. In
the last issue of alphabet we were again
able to present a large number of Top Performers at HAVI Logistics. One company we
are also very proud of is HAVI Logistics Turkey. At the latest DQMP* (Distributor Quality Management Process) audit, our colleagues in Sekerpınar-Gebze achieved an
amazing 97.45 %. Not only was our company in Turkey the first member of the HAVI
Logistics family to be audited according to
the new DQMP criteria; it was also the company that achieved the highest number of
points in 2008.
December 2008 and January 2009
were successful months for our Turkish colleagues in several respects. Apart from the
excellent DQMP results, the company was
certified for the first time in accordance with
ISO 14001. Its outstanding environmental
management system was accredited according to the Turkish standard and, on top of
that, received a certificate from the German
Accreditation Council. This means that our
DC in S¸ekerpınar-Gebze upholds environmental standards that actually go beyond
the Turkish requirements.
mental protection is not yet a major issue.
This is the only way we can achieve 100%
customer satisfaction and an unmistakable
customer benefit at all our HAVI Logistics
companies.
Thanks to the numerous standards defined by HAVI Logistics, the same regulations apply at all our Distribution Centers.
With this policy, we achieve the maximum
possible quality, hygiene and ecological
awareness even in countries where environ-
* DQMP: The intent of this process is to establish standardized requirements for distributors to McDonald's.
Icy Innovation
A dehumidifier that is unique at HAVI Logistics ensures that
the cooling aggregates in the Duisburg deep-freeze store
do not ice up and at the same time we fulfill HACCP-guidelines in a more energy-saving manner.
T
he HAVI Logistics DC in Duisburg
supplies 299 customer outlets with
ambient, chilled and frozen goods.
To have all the picked frozen and fresh
goods ready for loading at the cooldock,
the gate on the deep-freeze store opens
and closes up to 1,000 times a day. The
constant coming and going means that
the cooling aggregates have to run at
full tilt, to guarantee the prescribed subzero temperatures in this area. Sooner
or later this leads to the formation of ice
on the aggregates, which have to be defrosted at regular intervals. Each defrosting operation is costly because it uses
additional energy.
The Dehumidifier is located at the cool-dock.
The dehumidifier shows that HAVI
Logistics has declared war on the ice.
The 50,000 euro innovation simply sucks
in the humid air, which occurs in the deep-freeze storage due to the continual
opening and closing of the roller gates,
out of the storage area. The air is dried
and returned to the cooling circuit. So
the cooling aggregates stay free of ice.
In addition to the cleaning operations,
we are now also saving a huge amount
of energy, so the investment will have
paid off in three years.
Human Resources
Getting Prepared for
the future
The company-wide employee satisfaction survey conducted at HAVI Logistics has
underscored the importance of Training & Development within our organization. The survey
has shown that there is room for improvement – especially with respect to management skills such as leadership and communication with employees.
To be prepared for the demands of
their present and future day-to-day activities, our HAVI Logistics middle-management employees have already taken advantages of the opportunity to participate in a
specially designed Leadership Development Program since 2007. To support our
entry-level leaders and top-management
employees as well, HAVI Logistics has now
decided to conduct a tailor-made leadership development program for these target
groups, too.
The program for our entry-level
management is based on a training cycle
consisting of three learning modules that
build cumulatively upon one another and
add up to a total of six days. The basic
topics covered are recruiting & developing
staff, agreeing on goals, organizing a team,
making decisions, and carrying out control-
ling. The concept of the training is based
on a combination of learning-by-doing with
inputs and theory provided by external trainers familiar with the special requirements
of entry-level management.
We also strive to develop the capacity of the senior managers at HAVI Logistics individually and collectively to make
our ambitious strategy come alive, to
address our strategic and leadership challenges and – more generally – to promote
improved performance. The training program for our top-management has been
designed as a two-year program consisting of six mandatory modules. The Leadership Development Program for our
HAVI Logistics top management started
in March 2009. A total of 50 senior managers are participating in two groups.
By offering a customized and intensive trainings program of this kind, HAVI
Logistics has once again taken the lead.
“I do not know of any other company
in the logistics business that has established such a comprehensive management training program in such a short
time.” Christian Schulten,
Human Resources Manager, HAVI Global
Logistics
Our leadership seminars are well attended. Today demand already exceeds supply in this area; as a result, additional training
dates are planned for 2010. In this way HAVI
Logistics is responding to the wishes of its
employees for even more training and at the
same time setting innovative standards on
the European logistics market.
Make an impact!
Our employees are our most valuable resource The well being of our employees is a central concern at HAVI Logistics. Open lines of communication
facilitating a continuous flow of information are an essential constituent of our corporate culture. We believe that employees should
be allowed to express criticism and we actively solicit their opinions. For this reason, the Employee Satisfaction Survey conducted
at regular intervals is of enormous importance.
The Employee Satisfaction Survey 2009
was the first to be carried out simultaneously at all the European locations of HAVI
Logistics. Around 70 percent of the 4,926
employees working at the 39 HAVI Logistics
companies in Europe completed the questionnaire placed in the Internet; participation was voluntary and totally anonymous.
This was an excellent turnout by any international comparison.
The employees of HAVI Logistics expressed a high level of general satisfaction
with their employer. The employees were
asked to rate their general satisfaction with
the company on a scale of one to five; the
average score for this item was 4.3 points.
Our efforts in the area of Corporate Social
Responsibility were also given high marks:
our employees evidently place great importance on the company's relationship with
the environment and society and on good
working conditions. The reorganization of
the company under a new name also re-
ceived a positive rating. Furthermore, the
future prospects, corporate loyalty and
customer satisfaction associated with our
new uniform global brand were viewed as
excellent. A high percentage of our employees feel they are part of the global HAVI
Logistics family.
Next to these strengths, however, the
employees saw definite possibilities for improvement at the company. Additional communication instruments were needed, they
said, to keep the workforce informed about
management decisions and other developments at the company. The employees
also complained that their suggestions and
ideas had not been sufficiently adopted and
put into practice. Requirements for further
training seminars and events in the area of
continued professional development were
also reported.
The results of this year's Employee Survey will be conveyed to the HAVI
Logistics divisions and national companies
by our top management along the fastest
communication paths. At this year's European Management Meeting, the first joint
Action Plans were already drawn up. These
plans will enable us to realize the potential
for improvement existing throughout the
entire company at top speed.
18
News in Brief
At the end of March 2009 the new DC in Lodi started
serving our customers in the northern area of Italy.
New DC for Northern Italy
Sergey Shubsky, Managing Director of HAVI Logistics Ukraine in the middle of potential logistics
At the end of March HAVI Logistics' new Distribution Center in Lombardy was already on
stream.
HAVI Logistics Managers of the Future
The new DC is located in Lodi, in the region of
Lombardy in Italy. Lodi, with its 42,000 inhabitants, was part of Milan until 1992, when Lodi
gained recognition as an independent province.
On June 19, 2009 a group of schoolchildren and
teachers from Pechersk International School visited our HAVI Logistics DC in Kiev, Ukraine and
enjoyed the experience of being “immersed” in
food logistics.
Following the DCs in Bomporto and Monterotondo, the DC in Lodi is now HAVI Logistics'
third Distribution Center in Italy. The new DC has
an area of 5,500 sq. m. and 1,996 pallet slots
for ambient goods, 540 pallet slots in the fresh
goods storage area, and 2,209 pallet slots for
frozen products. Trucks dock at twelve ramps
to load goods for a total of 122 McDonald’s restaurants and other Strategic Valued Customers
(SVC). DC Lodi has a natural ventilation system
made with a plastic hive that allows air circulation in all the directions. The hive is also drowned
in concrete to be totally stable.
managers of the future.
The Pechersk School International a
World IB School offering the International Baccalaureate Program, is part of a larger, global
community of international schools. The growing expatriate community in Kiev has created
a need for high-quality international education.
This multicultural group includes diplomats and
business people who are working at the embassies and large multinationals in Kiev.
The visit was organized by Yolande Borden, wife of the Managing Director of
McDonald’s Ukraine and Andrey Muguev, Supply Chain Director in Ukraine, Belarus, Georgia and Azerbaijan. The children and teachers
were introduced to the basics of food distribution, temperature regimes, special transportation
in multi-temperature modes, and the requirements for quality and cleanliness. Currently, the
children are learning about the topic of “food”
(i.e. how it is grown, processed and delivered
to consumers) so the visit to our Ukraine-based
Distribution Center was a real eye-opener.
“It was not easy to explain complicated
things in simple language that can be understood by 6/7-year-old students of logistics,”
says Sergey Shubsky, Managing Director of
HAVI Logistics, about this challenge. Nevertheless, the children promised to remember new
words like Distribution Center, freezer and cool
dock and Sergey has high hopes of having recruited a few logistics managers of the future.
Construction Work
in Duisburg
The HAVI Logistics Distribution Center in
Duisburg is one of six German DCs. The expansion, which involves adding 1,600 sq. m.
to reach a total of 10,195 sq. m., enables us
to continue meeting the high customer expectations and to create secure jobs. "It is
a good investment, amounting to 7.5 million euros, and makes sense. This boosts our
employees’ feeling that they have a safe job
(f.l.t.r.) Warehouse employee Manfred Horn, Warehouse Manager Oliver Engelking, warehouse employees Ridvan Ayaz and Frank Brockerhoff and Hans-Dieter Hojnacki, Managing Director Operation
HAVI Logistics Germany.
News in Brief
19
The participants of the European Management Meeting 2009.
Team Spirit
Inside
From June 4-6 2009, the top managers at
HAVI Logistics met, for the 21st time already, to talk about the most recent development at the company and the prospects for
the future.
The annual Management Meeting
of HAVI Logistics, previously known as the
IAMM, was held this year for the first time
under the name "European Management
Meeting." The motto of this year's meeting
was "Team Spirit Inside." This time the gathering of the company's top management took
place in Ljubljana, Slovenia; as in the years
before, a host of company-specific topics
were on the agenda.
The 2009 European Management Meeting, like every meeting before it, was a chance to reflect on questions such as: How much
have we accomplished? How much have we
and we continue to ensure the highest quality for our customers," says Hans-Dieter Hojnacki, Managing Director Operations.
There are plans for extending the block
storage, the ambient warehouse and the
empties, constructing another frozen-goods
high bay warehouse and expanding the existing cooldock by adding four more truck
docking stations. Furthermore, HAVI Logistics
Germany is creating new social facilities for
moved forward? Are we satisfied with our
successes? Do we acknowledge the many
challenges that still lie ahead of us? How do
we assess our progress towards the goals
we have set for ourselves?
2008 was a year of change
for HAVI Logistics
The unanimous conclusion reached by
the HAVI Logistics’ management is that 2008
was “a year of change” - a year like none we
have seen before that casts the outlook for
the future in more positive, i.e. stronger and
brighter, light. With developments like our
new branding, the functional re-alignment of
the HAVI Group, the foundation of our Shared
Service Center and the building of the S.T.I.
Control Tower, we have mounted strategic
infrastructural initiatives that lay a solid foundation for our future.
vey which took place recently (please read
also the article on page 17). But this was
not only about sharing the results but also
about having the opportunity to appreciate
the strengths of HAVI Logistics and understand the areas where we need to improve.
During the group work which is a traditional
feature of the Management Meeting, the results of the Employee Satisfaction Survey
were analyzed and viewed in the context of
our Corporate Culture.
All of this took place against the background of achieving a better understanding
and appreciation of how much employee
commitment and motivation matter and to
what extent they are influenced by our behavior. The members of management spent
a considerable amount of time identifying the
issues which we, as a team, need to address.
This is why this year' motto was: “Team Spirit Inside.”
One of the key elements of this year's
European Management Meeting was the
HAVI Logistics' Employee Satisfaction Sur-
its employees, bringing about a further improvement in the working conditions. The
new building is scheduled for completion in
mid-November of this year.
The employees celebrated the grand
bull-dozing kick-off. Hans-Dieter Hojnacki
turned the spade for the groundbreaking ceremony. This was a reminder of the historical
moment about 22 years ago when the founder of our company, Andreas Rost, did the
same for the construction of the McDonald's
Food Town in Rheinhausen – with the
same spade!
20
A Great “Inventor”
Retires
News in Brief
Duisburg, We Have
a Problem…
Farewell party for Kent. (f.l.t.r.) Luca Gnecco, Kent
Zohnne, Hans-Werner Krohn and Haluk Ilkdemirci.
Kent Zohnne (64), a native of Sweden, retired
on March 31, 2009, after a career as a true
HAVI Logistics pioneer. Since 1978 he had
headed Frigoropa, the Frigoscandia subsidiary and predecessor of WLS (today HAVI
Logistics Germany), in his capacity as joint
Managing Director together with Andreas
Rost. He was instrumental in guiding our
company through its early years.
From 1982 Kent Zohnne sat on the Advisory Board of WLS for our former major
shareholder Frigoscandia. In the year 1997 he
finally moved to our company, where he worked as General Manager with responsibility
for "Internal Audit & Insurance." For 12 years
Kent Zohnne worked for our company in loss
prevention and claims settlement and on ensuring that internal audits ran smoothly. And
all the while, he kept a little secret: he was
actually the person who "invented" the letter codes for our HAVI Logistics employees.
Kent Zohnne saw the principle of deriving a letter code for each employee from
the first letter of the first name and the first
and last letters of the surname as a rule, but
he made exceptions for himself and for ARO
(Andreas Rost). Because his middle name was
Gunnar, he gave himself the code KGZ.
Kent Zohnne did a great deal for HAVI
Logistics in his twelve years with us. We wish
him a happy, healthy and fulfilling retirement
with his family and his vintage cars.
After the explosion of the pipeline, 300 meter high flames shot up into the sky.
On May 10 the Russian capital city of Moscow
was rocked by a powerful explosion. A gas
pipeline exploded about two kilometers from
our Distribution Center, simultaneous shutting down all the information systems at HAVI
Logistics' three Russian Distribution Centers
for hours.
The gas pipeline exploded in the early
morning hours on Sunday. Five people were
injured. The explosion ripped open a 10meter-wide and 3-meter-deep crater in the
street. The force of the explosion tore down
an approx. 100-meter-long concrete fence
and severely damaged a building. A huge fire
broke out. According to eyewitness reports,
the flames shot up to 300 meters into the
sky and were visible kilometers away. About
100,000 people were cut off from the outside
world by the explosion, which knocked out
both telephone and Internet connections.
Our DC in Moscow was not the only facility hit: our Russian HAVI Logistics branches
in St Petersburg und Nijny Novgorod were
also affected. At all three DCs, the explosion severed the links to communication systems. ILOS, email, Internet and telephone
connections were totally down. Our Russian
colleagues were unable to contact customers,
suppliers or other HAVI Logistics companies.
The warehouse staff were unable to pick and
distribute ordered goods. Our drivers waited
to load their trucks and to be able to print out
delivery notes again. The local IT experts worked round the clock and sent urgent requests
for assistance to HAVI Logistics IS in Duisburg
by cell phone. While everyone pulled together
to find alternative communication routes, the
Russian employees filled out delivery notes by
hand to ensure that our customer McDonald’s
would receive its deliveries on time.
For everyone involved it was a long
sleepless night and a very hard next day.
The DCs in Moscow, St. Petersburg and Nijny Novgorod were not back to normal until
the afternoon of May 11. It was thanks to the
unbelievable team spirit displayed by our Russian colleagues, the rapid response of the responsible IT managers on site, and the strong
support provided by HAVI Logistics IS in Duisburg that all of our deliveries to McDonald's
arrived at the agreed time and with the correct
contents.
Did you know ...
…that the introduction of biodiesel within
HAVI Logistics is due to a frozen Passat?
Before converting the entire fleet of
trucks to biodiesel in 2000, the new fuel had
to be tested for its resistance to frost. But how
could a biodiesel-driven vehicle be tested at
simulated Siberian temperatures in Germany’s
rather mild climate, especially in springtime?
Simple: As a logistics expert for frozen goods,
HAVI Logistics owns quite a few mobile “test
labs”, namely trucks and trailers. And the test
candidate was located quickly, too. The former HAVI Logistics Germany Transport Manager Udo Ulbrich offered his VW Passat as
the test vehicle, which had been running on
biodiesel for quite a while already. When Udo
– after the 44 hours the car’s temperature was
-25° Celsius (-13° F) – opened the trailer and
turned the ignition key, everyone breathed a
sigh of relief. It started, the test was a success
and HAVI Logistics now know that evensuch
sub-zero temperatures wouldn’t be a problem
for biodiesel-driven vehicles.