magazine - dachser€¦ · dachser magazine is printed on novatech paper certified in accordance...

ISSUE 3/2016

THE WORLD OF INTELLIGENT LOGISTICSmagazine

GLOBAL LOGISTICSTHE DACHSER WAY

GIVING YOUR ALL FOR ACOMMON GOAL

02 DACHSER magazine

NUMBERS THAT COUNT

is how long the square knot and the bowline knot, which are especially

favored by sailors, have been around, according to British knot specialist

Geoffrey Budworth. The inventor of the knot is equal to “all those forgotten individuals who learned to harness fire,

use the wind, cultivate the soil, and invented the wheel—all of which are predated by the knot.”

100,000 years

in two teams of 15 horses each were unable to pull apart a pair of copper hemispheres,

which the Magdeburg-born physicist and inventor Otto von Guericke had sealed

together by way of an artificially created vacuum. This demonstration was less about adherence and more

about proving the existence of the Earth’s atmosphere.

30 horses

of microscopic hairs on their feet enable geckos to scale the smoothest

walls and panes of glass and even to “stick” to the ceiling and hang upside

down—without chemicals of any kind. Each hair, or seta, has hundreds of 200-nanometer-long bristles

called spatulae, which exploit an intermolecular attraction that works like a magnet. A postage stamp

equipped with the nanohairs from gecko footpads could hold a brick.

Billions

being held by an adhesive surface with a diameter of just seven

centimeters got the chemical company 3M into the Guinness Book of

Records. A team from the company, working together with RWTH

Aachen University, managed to hold a 10-ton truck with a crane a meter

above the ground for one hour. This was a world record.

10 tons

is when the oldest and closest relationship

between humans and animals began.

The domestication of the dog ushered in the enduring era of the house pet. Shortly thereafter, the cat

became a highly esteemed animal in ancient Egypt for its ability to kill vermin and snakes and was

deified as the goddess Bast or Bastet.

13,000 years BCE

58 hours, 35 minutes,and 58 seconds

When what belongs together comes together, great things happen—provided the connection holds. But that is something one can work on.

STABLE CONNECTIONS

is the world record for the longest kiss,

clocked in 2013 by married couple Ekkachai

and Laksana Tiranarat from Thailand. They had to be steadfast—in the most literal sense

of the word. During their attempt to set a new world record, their lips had to touch without

interruption, and the couple had to be awake and standing upright the entire time.

DACHSER magazine 03

04

22

18

28

TITLE STORY

Interlocking: Giving your all for a common goal 04

FORUM

People and markets: 12The human algorithm; Regionalization is trending Essay: Eureka!How really good ideas are created 16

EXPERTISE

Contract logistics: Tapping the beauty markets with Kao 18Careers in logistics: What exactly does a Corporate Key Account Manager do? 22

NETWORK

Network expertise: News from the world of Dachser 26Denmark: In league with happiness 28

BUSINESS LOUNGE

Supply chain design: Bernhard Simon speaks with Professor André Krischke 32

GOOD NEWS

Sun catchers: Warm greetings from prehistoric times 35

CONTENTS

Publishing informationPublished by: DACHSER SE, Thomas-Dachser-Str. 2, D – 87439 Kempten, Internet: www.dachser.com Overall responsibility: Dr. Andreas Froschmayer Editors-in-Chief:

Christian Auchter, tel.: +49 831 5916-1426, fax: +49 831 5916-8-1426, e-mail: [email protected], Martin Neft, tel.: +49 831 5916-1420, e-mail: [email protected]

Editors: Theresia Gläser, Christian Weber Editorial Assistants: Kathrin Geis, tel.: +49 831 5916-1427, e-mail: [email protected], Andrea Reiter, tel.: +49 831 5916-1424,

e-mail: [email protected] Publisher: Schick Kommunikation, Kerschensteinerstraße 25, 82166 Gräfelfing, e-mail: info@schick-kommunikation Project Management:

Marcus Schick Design: Ralph Zimmermann, Kerstin Spörer Photos: all photography Dachser except thinkstockfotos.de (pp. 1, 2, 3, 8, 9, 12, 13, 15, 16, 17, 26, 27, 28, 29, 30, 31),

GCE (pp. 3, 4, 5, 6, 7, 10, 11), Nicolas Felder (pp. 14, 35), Ute Schmidt/bildfolio (pp. 3, 18, 20, 21), Maik Kern (pp. 3, 22, 23, 24, 25) Illustration: Ralph Zimmermann (pp. 32, 33, 34)

Printer: Holzer Druck und Medien Druckerei und Zeitungsverlag GmbH, Fridolin-Holzer-Str. 22-24, D – 88171 Weiler im Allgäu Print run: 44,000/57th volume Publication: 4x per year

Languages: German, English, French, Spanish. DACHSER magazine is printed on NovaTech Paper certified in accordance with the FSC® mix for sustainable forestry.

F Further information can be found in our DACHSER eLetter.

04 DACHSER magazine

TITLE STORY

Gases and technologies for industrial use

DACHSER magazine 05

TITLE STORY

GIVING YOUR ALL FOR A COMMON

GOAL

Success on global markets is possible only when logistics systems and networks are interconnected—or interlocked—to create globally integrated supply chains. With its Interlockingservice, Dachser taps into new markets for its customers.

ersatility wins the day. The triathlon is consideredthe supreme achievement of endurance athletes:swimming, bicycling, and running—all at the high-

est level. That’s anything but trivial. Indeed, the demandsmade on the body by each of these activities, the coordina-tion required, and the technique involved could hardly bemore different. But in a triathlon, the ability to reach thehighest level in a sport is not enough. Success comes to those who have mastery over the entire course and who areable to quickly and seamlessly switch over to a new modeduring transition zones.

This is also true of logistics. “Managing global supply chainsis as challenging as a triathlon,” says Dachser CEO BernhardSimon. “To reach your goals, you have to have the skills thatonly superb training can provide and you have to have endurance and discipline. This includes offering complete solutions for global procurement, warehousing, and distri-bution and being able to ship goods by land, sea, and air reliably, efficiently, and transparently. At Dachser, we use theterm ‘Interlocking’ to refer to how we link up our Road Logistics and Air & Sea Logistics business fields to make thispossible—in other words, interconnecting our networks.” ‡

06 DACHSER magazine

TITLE STORY

Warehousing from a single source—globally

Read more on p. 11

A global Interlocking marketing campaign is now spreadingaround the world featuring the image of Dachser triathletes.This visual appeals to the emotions, making the advantagesof interconnecting networks real and relatable. “As in atriathlon, supply chain management involves seamlesslytransitioning to different logistics modalities and inter -weaving highly complex road and air & sea logistics net-works,” explains Simon. “That’s the way to gain a competitiveedge on the global markets.”The needs of customers and logistics providers come to-gether here. Ten years ago, seamless, consistent system environments and Dachser’s comprehensive logistics net-works were important arguments for the GCE Group to collaborate with Dachser. The industrial company, which is headquartered in the Swedish town of Malmö, is the European market leader for gas supply solutions. In 2006,they engaged Dachser’s branch office in the Czech Republicto transport products for welding and cutting as well asequipment for industrial gas supply, medical devices, andhigh-purity gas supply systems to European and world markets. Dachser’s office in Kladno is located about 180kilometers from the GCE production facility in the centrallylocated Czech town of Chotěboř.

Combining nine into oneThere is now a daily shuttle from Chotěboř to Dachser’swarehouse in Kladno. Additional goods arrive from China and other external suppliers, so GCE’s entire pro -duct range is picked in Kladno and then shipped. The dis -tribution logistics offering includes partial and completeloads, groupage, and the transport of parcels. Dachser Road logistics, for instance, sends more than 60 pallets and almost 250 parcels a day throughout Europe. Mean-while, Dachser Air & Sea Logistics handles shipments toLatin America—primarily Brazil, Chile, Peru—but also toChina and Africa. In addition, this business field managesshipments from the Chinese production facility to the Czech Republic. Value-added services are the icing on the cake: Dachser employees repackage and relabel goods in the warehouse and also perform some simple assembly work.To prepare the way for this seamless interaction of Road and Air & Sea Logistics, we had to envision and imple -ment a new logistics structure with and for the customer. In the beginning, as Jan Polter, Manager Sales European Logistics at Dachser Czech Republic a.s. recalls, GCE had nine dis tribution centers all over Europe. “Distri -bution was still handled through France, Italy, Hungary, Romania, Germany, Sweden, the UK, Poland, and the Czech Republic. Some of the locations had different ware-house management systems, and everyone had to main -tain high inventory levels,” says Polter. The purpose ofbundling all produced goods in Kladno, Czech Republic and migrating to Dachser’s in-house warehouse manage-ment system, Mikado, was to reduce the required inventoryand improve processes in order to cut costs and accelerateresponse times.Warehouse inventories were redistributed and standard -ized in several stages, beginning in the Czech Republic. Then came Poland, Hungary, the Southern and Western European markets, Romania, and finally Scandinavia.“Combining so many autonomous systems into only onesystem was a major challenge,” says Polter. Products arrivedin Kladno from various European warehouses with widelydiffering labeling in a multitude of languages and often without any product numbers. In the meantime, Mikadorecords 57,000 items in a standardized fashion, and 4,800are always in stock. ‡

“Every major inter -national customer must be able to rely on interconnected,smooth-running supply chains. With the ability to designsuch interfaces, we offer our customersadded value, which in turn increases rates of return for both parties.”

Bernhard Simon, Dachser CEO

We can offer our customers the entireportfolio of logistics services from a singlesource. Ultimately, Dachser Interlocking makesthe world of logistics much, much easier

Roman Thurzo, Country Manager Air & Sea

Logistics Dachser CzechRepublic a.s.

DACHSER magazine 07

TITLE STORY

INTERVIEW

Interlocking: interfacing with the world’s markets

Networks can be successfully interconnected

at Dachser, thanks to its clear processes and standardized

systems. What’s the benefit for Dachser customers?

Questions for Michael Schilling, COO Road Logistics,

and Thomas Reuter, COO Air & Sea Logistics.

In order to have a seamless flow of goods

and information, the IT systems of customers

and logistics providers must be able to

exchange data using the same “language.”

What role do interfaces play here?

Michael Schilling: The interfaces are where the

big question gets decided—will data transmission

cause data loss? Such data loss often means

delays that can have dramatic effects on the

process flow, resulting in poor order processing

and slower throughput of orders, thus requiring

higher inventories. This drives costs up, lowers

efficiency, and makes life difficult for both cus-

tomers and logistics experts. Therefore, Dachser

IT pays close attention to how to structure inter-

faces and system integration. All our experience

and IT expertise has gone into Mikado, our

warehouse management system; Domino (Road

Logistics) and Othello (Air & Sea Logistics), our

transport software; and our eLogistics applica-

tions. As a result, together with our customers

we can manage the most demanding supply and

procurement chains transparently, as needed

and in real time.

To what extent are global flows of goods

a particular challenge?

Thomas Reuter: Interlocking allows us to offer

comprehensive intermodal supply chains for our

customers, including customs clearance and

warehousing. Our particular focus is on the export

business, improvement of production costs, and

comprehensively connected, intelligent logistics

solutions that create real added value. But several

other factors play a role in optimizing our cus-

tomers’ logistics processes: personal support

from experienced contacts on the ground, high

delivery readiness thanks to high frequency and

capacity, as well as flexible, tailored solutions.

Customers appreciate and value this uncompro-

mising focus on quality.

What role do the networks and the

IT systems connected with them play here?

Thomas Reuter: We want to show our customers

how they can implement and manage sophisti -

cated intercontinental supply chains within our

network that are consistent and standardized.

Logistics is called upon to do two things: continue

to reduce complexity and ensure transparency.

Our objective is to make certain that both our

customers and ourselves can access entirely

homogeneous information.

And what do customers and service

providers gain from this?

Michael Schilling: Customers and logistics

providers benefit equally from homogeneous sys-

tems. First, simplifying and standardizing indirect

processes—such as administration and tender

management—allows them to realize significant

cost reductions. And second, because Interlock-

ing enables us and our colleagues from Air & Sea

Logistics to provide sustainable supply chain

management, in Europe and beyond. This means

that we can build solid bridges to the world’s

markets for and with our customers.

08 DACHSER magazine

TITLE STORY

CustomerRequirements of logistics

Homogeneous handling of all land,air, and sea freight via a single logistics partner

Increased transport quality for reducing logistics costs and increased customer satisfaction

Transparency across all processes

INTERLOCKING:INTERCONNECTIONWINSRoad, Air, & Sea: integrated solutions from a

single source are the best choice for intelligent

logistics. This creates many advantages for

Dachser customers:

Easier access to global markets through one

supplier for distribution and procurement

Control via an IT interface

Streamlining by establishing IT processes

and formats with a single service provider

Optimal supply and planning of production

sites and warehouses

Lean contract management and reduction

of administrative processes

Optimizing capacities at loading ramps

and warehouses through dispatch via a

single service provider

DACHSER magazine 09

TITLE STORY

DachserIntegrated supply chains forcustomers all over the world

Ë Consistent solutions for globalprocurement and distribution by linking the two networks Dachser Road Logistics and Dachser Air & Sea Logistics

Ë Integrated and efficient supplychain management for global flow of goods

Ë Complete transparency acrossmultimodal transport chains, both physical and informational

Ë In-person, on-site consultation by Dachser’s global presence

10 DACHSER magazine

TITLE STORY

Lab technology: a booming market

Welding together what goes together

It is possible to take all the processes and standards that have become a well-honed routinein the Czech Republic and transfer them to Mexico, enabling us to begin expanding our business activitiesimmediately

Björn Bengtsson, Group Supply Chain and

IT Manager GCE

TITLE STORY

The GCE Group

headquartered in the

Swedish town of

Malmö, is Europe’s

market leader for gas

control equipment.

Their portfolio com-

prises a broad range

of applications—from

simple pressure regu-

lators and torches for

welding and cutting,

to highly sophisti -

cated gas systems

for the medical and

electronics sectors.

GCE has local sales

and service compa -

nies in Austria, the

Benelux countries,

China, Czech

Republic, France,

Germany, Hungary,

Italy, Poland, Portu -

gal, Romania, Russia,

Sweden, Switzerland,

Spain, and the UK.

In recent years, the

company has also

initiated activities in

India, the Middle

East (Dubai), Panama,

and Mexico through

independent organi -

zational units. Its key

production facilities

are located in the

Czech Republic and

China.

PROFILE

The Dachser logistics triathlon: Interlocking campaign

rolled out worldwide

New at GCE:medical devices for oxygen therapy underway

Complete solutionsFor Interlocking to be successful, the first crucialsteps are to combine different customer systemsinto one clearing format and to implementDachser’s uniform processes and systems. “Ourobjective is to provide complete solutions for global procurement, warehousing, and distributionbased on the key pillars of Dachser Road Logisticsand Dachser Air & Sea Logistics—one-stop shop-ping, all from a single source,” says Bernhard Simon.This aims to create synergies in procurement, contract management, tracking & tracing, and datasystems, to name a few examples. “Our customers experience an overall gain in operational processspeed, which in turn allows them to perform betterwith their own customers,” says Simon. With its 428branch offices in 43 countries, the Dachser network is“precisely calibrated” in all major economic regions. GCE is counting on this. “In the past ten years, we havegradually developed and expanded our logistics in Europetogether with our partners from Dachser Road Logisticsand Air & Sea Logistics. We rely on smoothly functioningwarehouse and transport management systems,” says BjörnBengtsson, Group Supply Chain and IT Manager at GCE. Building on this solid foundation, GCE now wants to takethe next step together with Dachser and tap into the Mexicanmarket for technical gas applications. In addition, the company has begun to position itself in the booming US and Canadian markets for home care by launching an entire range of respiratory healthcare products.

Relying on local expertiseTo tap the North and South American markets, the plan is tocreate a competitive edge for GCE through the Interlockingservice provided by Road and Air & Sea Logistics, which hasalready been successful in Europe. Production is closely interlinked with distribution throughout Europe and world-wide. Dachser Air & Sea Logistics will handle shipments toMexico. But the customer is not interested solely in physicaltransports. “GCE needs a logistics partner that is establishedin Mexico and has a thorough knowledge of local marketconditions,” Bengtsson explains. Dachser has the advantageof having a history with GCE and being very familiar with its products and requirements. Besides, the integration ofeach company’s own systems is already quite advanced andcould now be adapted easily to a new geographic situation.“In Mexico, GCE was initially interested in a warehousingsolution and the local distribution of devices and applica-tions for technical gases used in, say, welding and cutting, or medical devices and labs,” says Christian Speit, ManagingDirector Air & Sea Logistics Dachser Mexico. The Dachserlocation in Querétaro is practically tailor-made for GCE’sinterests. “Mikado, our warehouse management system, isin place in Mexico as well. This means that GCE can trans-parently trace the warehousing processes, just like it is usedto doing in its everyday business in Europe,” Speit explains.

Additionally, Dachser Mexico is in the process of acquiringISO 9001 certification; this has become very important for many companies, especially for OEMs in Mexico’s fast-growing automotive industry. This is why it is not just large corporations like GCE that are increasingly interested in what Dachser has to offer inMexico; medium-sized companies are, too. However, manyof them don’t know the country, the people, or local regula-tions well enough, so they are glad to rely on an all-inclusivepackage that takes the hassles of market entry off theirhands. Speit continues, “Our level of interconnectedness,our IT standards, and our experience enable us to integratethe customer’s entire value chain worldwide. And that leavesthem free to concentrate fully on their core business.” For Björn Bengtsson, the advantages are obvious: “In Querétaro, Dachser can provide us with a complete logisticssetup, including warehousing, all customs requirements,and distribution through partners. This gives us a leg up toward achieving our objectives not only in Mexico but inother markets in the Americas.” “We can achieve a great deal when we work together,” agreesRoman Thurzo, Country Manager Air & Sea LogisticsDachser Czech Republic a.s. “When entering newmarkets, more and more customers want to coverall aspects of the value chain—air and sea freight,overland transport, warehousing, and customswarehouses. As part of the “logistics triathlon” wecan offer them the entire portfolio of logistics services from a single source. Ultimately, Inter -locking makes the world of logistics much, mucheasier.” M. Schick

DACHSER magazine 11

12 DACHSER magazine

Europe31.7

Middle East5.1

Africa2.3

Asia-Pacific31.6

NorthAmerica22.9

South and CentralAmerica, Caribbean 6.3

In its study “Global Freight Forwarding2016,” UK logistics consultancy Transport

Intelligence (TI) sets forth an optimisticforecast for the future. Following the turbu-lence of the last few years, the British marketresearchers are predicting that the globalmarket for air and sea freight services willreturn to solid growth. As the trade journalDVZ reports, the growth edge of the emerg-ing markets has finally disappeared. And although Europe’s market share of global air and sea freight revenues is expected todecline from 32.7 to 31.7 percent by 2019,the Asia-Pacific region could increase itsshare from 31.0 to 31.6 percent. TI sees theNorth American market share remainingrelatively stable over the next few years at22.9 percent, while the importance of theMiddle East and Africa will continue to increase.The trend is moving toward greater region-alization and shorter intraregional routes.According to the authors of the study, thetraditional East-West and West-East flowsof goods are clearly shifting to a more com-plex network between developed andemerging markets. Near-sourcing and crosstrade shipments could benefit continentaltransport operations in the medium term at the expense of air and sea freight. The TI study concludes that the big shippingcompanies are best positioned for these developments; today, the top 20 alreadyservice almost 58 percent of the world market.

FORUM

The global market for air and sea freight services is on the upswing:

an average annual growth is expected to reach 4.6 percent by 2019,

ultimately totaling EUR 159.8 billion.

World markets

REGIONALIZATION IS TRENDING

Global market volume in EUR billion

After decline growth returns

Global market volume by region as a percentage

Further growth in Asia

Europe32.7

Middle East4.8

Africa2.0

2014 2015 2019Forecast

159.79

133.34135.54

Asia-Pacific31.0

NorthAmerica23.0

South and CentralAmerica, Caribbean 6.5

Source: Transport Intelligence/DVZ

2019

2015

Interconnectedworlds

DACHSER magazine 13

FORUM

+++ NEW HONG KONG OFFICE +++ Dachser

is moving to a new office in Tsuen Wan in the

New Territories area of Hong Kong. Air freight,

sea freight, and logistics management will

all have offices under one roof. “This is our

response to the increasing importance of

Hong Kong as a logistics center in Asia; it is

also an attractive location with regard to infra-

structure and qualified staff,” says Nils Holder,

Managing Director Air & Sea Logistics Hong

Kong. The Dachser transit warehouse in Tsuen

Wan will continue to be used for air freight,

while the branch office in Tsing Yi will handle

contract logistics. +++

+++ VIETNAM IN THE FAST LANE +++ In

order to provide quickly growing industries in

Vietnam with logistics services for their exports,

Dachser has now opened a branch office in

Hanoi to support its location in Ho Chi Minh

City. “Many manufacturers, particularly those

in the textile, shoe, and electronics industries,

have established production facilities in north-

ern Vietnam. Our office in Hanoi will bring us

into closer proximity to our customers,” says

Michael Deisemann, Managing Director Air &

Sea Logistics Vietnam. The branch office will

provide air and sea freight (FCL and LCL) to

Europe, Central Asia, and the US and will also

offer warehousing and value-added services

if needed. +++

+++ SUPPLY CHAIN SERVICES FOR SOUTH

CHINA +++ Integrated supply chain solutions

through Interlocking and contract logistics are

the growth drivers for Dachser Air & Sea Logis-

tics South China. After moving to a new office

in Shenzhen, Dachser now has around 30 per-

cent more office space, thus creating the con-

ditions for additional growth. “Demand for con-

tract logistics and integrated multimodal trans-

port via air freight, sea freight, and rail is in-

creasing,” states Kevin Chen, Managing

Director Air & Sea Logistics South China. +++

+++ GROWTH MARKET INDIA: NEW

DACHSER OFFICE IN KOLKATA +++ In re-

sponse to increased demand in eastern India,

Dachser India has opened a new branch office

in Kolkata. It is located close to Bidhannagar,

or Salt Lake City as it is popularly called, which

is known as the mega-city’s new IT center.

It also offers fast connections to Kolkata and

Haldia, major seaports in West Bengal, and to

the Netaji Subhas Chandra

Bose International Airport

(NSCBIA). Huned Gandhi,

Managing Director Air &

Sea Logistics India, de-

scribes the new office in

Kolkata as “another mile-

stone in our efforts to fur-

ther promote the interna-

tional flow of goods to and

from Bangladesh, Bhutan, and Nepal by pro -

viding import/export services and customs

handling.” Dachser now has 25 branch offices

on the subcontinent. +++

Hong Kong skyline

Durga, goddess of supreme power

Dynamic Vietnam

Shenzhen—driving growth

14 DACHSER magazine

FORUM: PEOPLE AND MARKETS

Dachser’s reader survey yields valuable suggestions.

Reader survey

A HIGH OPINION

How do you like Dachser’s media offerings? In what ways do you use them? What improvements would you like to see? … In the last

issue of the Dachser magazine and in the Dachser eLetter, the editorial

staff asked readers and users a number of questions. Many of the over140,000 readers—both customers and employees—shared their opinions of Dachser’s media offerings. Over 90 percent thought they were “modernand contemporary,” “interesting,” and “easy to navigate and clearly struc-tured.” Over 80 percent considered them to be “high quality” and “gearedtoward actual practice.” This was good news to the editorial team led by Martin Neft, Department Head Corporate Public Relations. “Feedbackfrom our readers is valuable input for when we think about designing our media for the future,” Neft says.

Interlocking

SPORTING GREATNESS

T he term “interlocking” has multiple layers of meaning: it is to dovetail,intertwine, combine, or merge two or more elements. At Dachser,

“interlocking” refers to globalizing supply chains through integrated use of road logistics and air and sea logistics. The international Interlockingcampaign translates this into powerful images. “To communicate this idea,we developed a concept based on the triathlon. The message is that Dachser has mastered the athletic challenge of all three transport disci -plines,” explains Birgit Kastner-Simon, Corporate Director Corporate

Marketing at Dachser. A triathlon is a symbol of active diversification andtalent, endurance, and enthusiasm for major challenges. A PR campaign aimed at the international markets was rolled out early this year and is still ongoing.

For more on Dachser’s Interlocking concept, visit www.dachser-interlocking.comF

A global campaign by Dachser familiarizes customers with the advantages of interconnecting networks.

Keeping Dachser PR on the move: (from left) Martin Neft, Elisabeth Bauer, Kathrin Geis, Andrea Reiter, Christine Baumann, Christian Weber, Theresia Gläser, Dr. Andreas Froschmayer (Corporate Director Corporate Development, Strategy & PR), and Christian Auchter

DACHSER magazine 15

FORUM: PEOPLE AND MARKETS

Professor Knape, everyone is talking about digitalization. What does that mean forcommunication?Prof. Joachim Knape: People think and act within their own systems of logic and their cultural context. This means they are predictable to a certain extent, but not like a “machine.”The disadvantage of the digital world is that everything is based only on simulation andtechnology that guides the senses. But from a very early age, we learn to react to atmosphereand the prevailing mood. This is very hard for technology to accomplish.

What role does instinct play in people’s direct encounters?We need to have the feeling that all five of our senses, our skin, and our physical sensationsare perceived and appealed to in a face-to-face situation. Just think about a comfortableroom temperature, conversation volume—which we automatically adapt to the person weare speaking to—and the spontaneous reactions by which we can quickly react to our partners in a given situation. This creates trust and the feeling of authentic humanity.

What particularly resonates with the people having a personal conversation?Physical proximity and multi-sensory perception are part of the way a group experiences a given location. This includes smells, body heat, vocal inflections, handshaking, physically turning toward or away from someone. In a personal encounter, we normally do not have any sense of alienation as we do in pure network communication. We can respond in more ways and more directly in contact with other people. Even if you make mistakes, which happens constantly, this more intimate communication alone is a majorpositive because we have the feeling that we are being seen as we truly are. And that feeling is priceless.

Everything is going digital, with only people

remaining analog. A conversation with Professor

Joachim Knape from the Institute for General

Rhetoric at the University of Tübingen on

the meaning of the spoken word and personal

encounters in the era of digitalization.

Communication

THE HUMAN ALGORITHM

JOCHEN MÜLLERMOVES TO DACHSER AIR & SEALOGISTICSBy hiring Jochen Müller (52), Dachser

has recruited a veteran logistics

manager. On January 1, 2018, he will

take over from Thomas Reuter as Chief

Operations Officer (COO) of the Air & Sea

Logistics business field. The transition

period, during which Müller will work

on developing projects, will start on

October 1 of this year. Thomas Reuter

will remain on the Executive Board in

his role as head of Air & Sea Logistics

through the transition period until he

retires on December 31, 2017.

In 2011, Jochen Müller joined the Exe -

cutive Board of Schenker Deutschland

AG, where he was in charge of air freight

and sales (air/sea) for Central Europe,

as well as logistics for worldwide

relocations, trade shows, and sporting

events. Prior to that, Müller served as

CEO of Schenker’s British country

organization, where he was responsible

for land, air, and sea freight as well as

the trade show business.

Nothing beats a good conversation

FORUM: ESSAY

People like to think that good ideas strike spontaneously like bolts of inspiration out of the blue. In reality, they are the result of hard work and the often unexpected confluence of favorable circumstances.

EUREKA—FINALLY!

matician to examine a gold crown to determine if it was in-deed made of pure gold. Archimedes detected the gold-smith’s fraud because the crown displaced more water thana gold bar of equal weight. According to the legend,Archimedes came up with the idea for the test while gettinginto the bathtub. He leaped out of the tub and, joyfully shout-ing “Eureka!” (“I have found it!”), ran naked into the street.

A relaxing bath isn’t always enoughIn the 21st century, people yearn for such “eureka” momentsmore than ever—if only for economic reasons. The compe-tition for innovative products and services is tough, butthanks to the Internet and global logistics networks, a goodidea has the potential to reach the entire world. Unfortu-nately, the occasional bath just isn’t enough. Although researchers and creative thinkers often experience unex-pected breakthroughs, these flashes of inspiration are pre-ceded by hours, days, or even years of hard work and extremely intensive thinking. “No pain, no gain” as the saying goes—and scientists agree.One of them is Rainer Holm-Hadulla, creativity researcherand professor at the University of Heidelberg. In a scientificarticle, he states that people have to work to get good ideas. He believes a promising approach is the “interplay between structured work and free imagination, betweenknowledge and intuition, structure and freedom.” Holm-Hadulla therefore advises managers to create clear hierar-chies and secure working conditions, but also to providespace and opportunities for spontaneous exchange.

Make time to be creativeYet in companies where operations are carefully timed andcoordinated, this is easier said than done. A study by theGerman logistics association BVL cites a lack of time as thebiggest obstacle to innovation. The interviewed experts confirmed that the industry demonstrates a pronounced

T o the chagrin of the New York-based Roxbury IndiaRubber Company, the summer of 1843 was a hotone. An inventor who had developed a new valve

for life vests was being given a tour through the company’swarehouse, crowded with piles of returned merchandise.And if that were not already embarrassing enough, the itemsmade of natural rubber had turned into a sticky, foul-smelling mess. But the scene inspired the visitor, whosename was Charles Goodyear, to find a way to make rubberresistant to both heat and cold.After innumerable failed experiments, Goodyear had an accident that ultimately resulted in success. While handlingsamples, he accidentally dropped some rubber mixed withsulfur onto a hot stove. He was elated to find that his briefmoment of carelessness had resulted in hardened rubberthat was very tough. As it turned out, Goodyear had discov-ered the manufacturing process for modern rubber. Thiswould completely remake a huge range of products—from

tires to rain gear, tents to tennis balls and condoms.Soon, the elastic, water-resistant material would

become ubiquitous in everyday life.What happened here was typical for

many innovations. In the cultural his-tory of humankind, trial and error,

foolish mistakes, coincidences,and a combination of unex -

pected circumstances havefrequently played key roles ininspiring important ideas.And sometimes bolts of in-spiration prefer to strikeseemingly out of the blue.Take Archimedes, for ex-ample: Hiero II, who ruledSyracuse from 269 to 215

BCE, charged the mathe-

16 DACHSER magazine

DACHSER magazine 17

FORUM: ESSAY

What could stinginessand genius possiblyhave to do with eachother? When Americaninventor Richard GurleyDrew was working ondeveloping a maskingtape for sandpapermanufacturer 3M in1925, his prototype hada thin strip of adhesiveonly along its edges.During a trial run on atwo-color paint job in a body shop, it adheredpoorly and the frus-trated technician toldhim: “Take this tapeback to those Scotchbosses of yours and tell them to put moreadhesive on it.” At thattime, “Scotch” was asynonym for “stingy.”The nickname stuck.Drew’s invention, which swept the world,became known asScotch tape.

lack of creativity in some areas compared to other sectors of the economy. This despite the fact that, historically, ideas that facilitate the exchange of goods have been driversof major changes. In ancient Mesopotamia, for example,symbols scratched on clay pots used in trade became the basis for the cuneiform script.Today, technologies, such as self-driving vehicles, big dataanalyses, and 3D printing, have the potential to revolution -ize trade. Logistics providers and supply chain experts

would be well-advised to take a long, hard look at them. After all, history also teaches us that using ideas produc -tively is at least as important as the innovations them -selves. This was something that Charles Goodyear, who died leaving a mountain of debt, was not able to accom -plish in his lifetime. It was others who turned a hefty profit with his innovation, including two brothers whonamed a tire factory after Goodyear in 1898. That companystill exists today. S. Ermisch

After all, history also teaches us that using ideas productively is at least as important as the innovations themselves

Sometimes an idea becomes a world-changing innovation by accident

18 DACHSER magazine

EXPERTISE: CONTRACT LOGISTICS

Kao logistics director Hans-Michael Steenbock at the

Biebesheim warehouse

DACHSER magazine 19


Together with Japanese consumer goods company Kao, Dachseris tapping into challenging markets and customer bases in Europe and abroad. Contract logistics, complete IT systems, and the interlocking of the Dachser Road network with Air & SeaLogistics have become growth drivers in the process.

MULTIMODAL LOGISTICS—

FOR BEAUTY’S SAKE

On Friday, April 13, 1970, the Apollo 13 moon mis-sion was under way when astronaut Jack Swigertreported to Mission Control, “Houston, we have a

problem.” An oxygen tank had exploded and the ship washeavily damaged. The crew was in grave danger, and theironly option was to solve the problem—immediately. Failurewas not an option. The rest is history: the team survived to make a dramatic landing safely back on Earth. On a visit to NASA’s Kennedy Space Center in Cape Canaveral during a vacation to the US, Thomas Euler be-came captivated by the vibrant history of the place. There he saw an Apollo 13 postcard with the quote “Failure is notan option.” Smiling, he thought to himself, “I seem to knowthat from somewhere,” so he bought it. As the main con -tact person for Kao and site manager of the Biebesheim facility, Euler keeps the postcard on his desk not only as a souvenir, but also as a reminder. It encourages him toachieve the best results for customers even under the toughest circumstances and never to give up on the team.He is facing some major challenges. At the beginning of the year, Dachser took over the warehouse in Biebesheim,located in the greater Frankfurt area, and now operates it for its customer Kao, among others. Japan’s Kao Corpo -ration along with its brands—Goldwell, John Frieda, Guhl,Kanebo, Molton Brown, Jergens, KMS California, andBioré—have been working closely with Dachser since 2005.Since then, the scope of logistics services has grown steadily.In the beginning, Dachser provided just warehousing andland transport services, but in 2006-2007, Air & Sea Logis-tics services were added, especially for shipments to the USand Asia-Pacific, and later to the United Arab Emirates.

Hairstylists do not wait“We serve entirely different markets: mainly retailers andhair salons, but also perfumeries and luxury hotels,” saysHans-Michael Steenbock, logistics director for Beauty Careof Kao Manufacturing Germany GmbH, the supply chaincompany of the Kao Group for the EMEA region. Retailersrequire mass-produced goods and merchandise, while hairsalons need small quantities of very specialized products in time for their customers’ appointments. “Regardless ofwhether we ship as groupage or package shipment, every-thing has to run at maximum speed,” explains Steenbock.That’s why the old Kao system, which had the productionplant in Darmstadt supplying thousands of salons through-out Europe via small regional warehouses, was not a sus-tainable option. After all, hair salons, which have almost no warehousing capacity to speak of, order directly basedon their day-to-day customer demand and want to receivedeliveries of a special hair color or haircare product within24 hours, or at most 48 hours, depending on the region. “We wanted to replace the error-prone and costly small-scale system with an intelligent pan-European logistics network solution to better meet the needs of our target customers,” explains Steenbock. To this end, Kao consultedwith Dachser and selected a dual location strategy. Since the beginning of the year, hair salons throughout all of continental Europe have been supplied by the Biebesheimwarehouse through parcel services. On top of that, luxuryhotels are supplied with premium products from the Molton Brown brand, and Kanebo products are shipped toexclusive perfumeries. From the warehouse in Neu-Isenburgnear Frankfurt, groupage shipments and cargo loads are ‡

Hair care has alwaysbeen a part of people’s lives. In the19th century, Englishhairstylists began concocting the firstshampoos by boilingsoap flakes togetherwith herbal additives.Nowadays manu -facturers use up to 30 ingredients, andtheir recipes are a well-kept secret.

20 DACHSER magazine


sent to retailers throughout Europe, including Europeandrugstore and retail chains like Carrefour, dm, or Rossmann.Both warehouse locations are also the starting point for exports to overseas markets on all continents served byDachser Air & Sea Logistics.According to Steenbock, the company opted for Dachserbased on several factors: its uniform transport standards; its sophisticated, standardized, but above all integrated ITsystems; and the complex security architecture underpin-ning them. Furthermore, especially for a Japanese companylike Kao, outstanding quality standards and a company’sdedication to social responsibility and sustainability are key factors in selecting a strategic logistics partner.

An extra day of lead time“We want to focus our energies entirely on our core busi -ness and on the needs of our customers. We therefore haveto rely on a reputable supplier,” emphasizes Steenbock. “Forus it’s important that the processes run smoothly and wemeet our targets on schedule. Transport, warehousing, andvalue-added services from a single source give us an extraday of lead time. The fact that Dachser is able to do thiswithout system disruptions also minimizes potential sourcesof errors. Furthermore, Dachser shares the Kao philosophyof Continuous Process Improvement, according to which‘Standstill is a step backwards.’ This concept originated from the Japanese Kaizen manufacturing method.”This “single sourcing” approach is what makes Inter -locking—the networking of European and Air & Sea Logistics—possible. For Thomas Euler, such an approach“makes total sense, because valuable synergies emerge from it.” Moreover, if there are any problems, it is alwayseasier to find solutions between two colleagues than between competitors. “This is a win-win situation for ourcustomers and suppliers,” adds Euler.Steenbock agrees: “Bringing together many suppliers andthe inevitable system disruptions that would result wouldland us in a constant loop of coordination and regulationprocesses. For that, we would have to reserve sufficient re-sources, expertise, and capacity.” Steenbock also believes

Souvenir from space

Pick-by-voice in Neu-Isenburg

Pick-by-light in Biebesheim

KAO

Kao is one of the world’s largest manufacturers

of personal care, cleaning products, and

cosmetics for end users. Moreover, the group

manufactures the chemicals it needs to serve as

the base products for these goods and other

specialty chemicals. The company was founded

in Tokyo, Japan, in 1887 and currently employs

more than 32,700 people around the world.

www.kao.com

PROFILE

DACHSER magazine 21


If the supplier is integrated into all workflows and implementation processes,frictional and information losses become a thing of the past

Hans-Michael Steenbock, Director Logistics

Beauty Care, Kao Manufacturing

Germany GmbH

that the decision in favor of a “one-logistics footprint” solution is directly related to rising demands placed on logistics suppliers. “We’re a challenge for Dachser. In Europe, we have agreed on a service rate of 99 percent. It isvery ambitious, but it works,” explains the Kao logistics manager. One example of this is our value-added services, for instancebuilding and supplying promotional displays for retailer advertising campaigns. At the Dachser Neu-Isenburg faci-lity, 1,000 displays are currently being stocked with specially selected shampoos from Kao’s Guhl brand. TheDachser team has two weeks to finish the job. “This is an extremely time-driven business—with a distinct just-in-time mentality on all sides,” says Steenbock. “If the sup-plier is integrated into all workflows and implementationprocesses, frictional and information losses become a thing of the past.”

The competition does not sleepAnd that is very valuable, especially for product launchesthat are jealously eyed by competitors. Those who are tooslow to act, says Steenbock, will quickly find that their targeted market niche is already taken. As an example, the

rollout of an innovative hair color on the US retail marketrequired total commitment from Dachser. “The retailer was initially supplied by the Neu-Isenburg facility via airfreight,” reports Andreas Krieger, General Manager Air & Sea Logistics Central Germany. Later on, the bulk of the product was then shipped on schedule by road, rail, andsea to the Walmart subsidiaries in the US. “We have alwaysused the Interlocking approach with customers like Kao,”adds Krieger. Both Dachser business fields—Road andASL—identified with the customer’s business; that’s why there has been a lively exchange for many years now and constructive cooperation among the experts at both companies.Dachser’s end-to-end IT solutions form the foundation for all of this, especially its warehouse management system Mikado and transport software Domino. Currently,Dachser is migrating the warehouse in Biebesheim to Mikado. For five of its customers, this means more trans-parency, more efficiency, greater speed, and improved security. This is entirely in line with the philosophy of Kao and Steenbock. “We grow together with our oppor -tunities,” he says and adds, with a wink at Euler, “Failure is not an option.” M. Schick

Kao distribution center in Neu-Isenburg

22 DACHSER magazine

EXPERTISE: KEY ACCOUNT MANAGEMENT

On the way to the customer: Benjamin Fischer at Munich Airport

DACHSER magazine 23


Benjamin Fischer learned logistics from the ground up. AtDachser, his career path has led him to the position of CorporateKey Account Manager, where he is responsible for supportingmajor global customers as they penetrate markets worldwide.

utside there is a constant coming and going—or more precisely, taking off and landing. WhenBenjamin Fischer looks outside his office win -

dow, he can watch the parade of jumbo jets and Airbuses flying by at one-minute intervals. His office is right in thecargo area of Munich airport from where Dachser Air & Sea Logistics services its customers. “The world is my home,” says Fischer enthusiastically. As Corporate Key Account Manager, being at home anywhere in the world

is part of his job. His office isn’t located there just so that he can have a nice view of the airport; it’s because the depar ture terminal is just a short hop away. Since Fischer spends 80 percent of his working time traveling, that’s very practical. He trained as a freight forwarding and logistics agent, andnow, as Corporate Key Account Manager, he is the main contact at the interface between Dachser and major global customers. His responsibilities include drafting and ‡

LOGISTICS

CAREERS

24 DACHSER magazine


nego tiating agreements, making sure they are complete, then im plementing them and monitoring that implementa-tion. Currently, Fischer is responsible for five international companies that have branch offices all around the globe. “I connect the management and the plants with the branchoffices and provide custom solutions for complex require-ments.” This isn’t just about transporting the goods from A to B, but about working together with the customer to develop multimodal supply chain solutions. He needs an in-depth understanding of strategic requirements as well as a knack for practical applications and hands-on experi-ence. In addition to strong social skills and good interper-sonal relationships with colleagues abroad, a Corporate Key Account Manager has to be familiar with logistics andits processes from top to bottom.

A happy coincidenceFischer has acquired this expertise in the 17 years he hasworked for Dachser in various positions. He began his careerat Dachser in freight forwarding and logistics in 1999, when he was 18, and learned the business from the ground up. “That first opportunity was more of a happy coincidence; I wasn’t crazy about logistics or anything. But the offer of training was a good fit,” Fischer recalls. “I was in the right place at the right time.” He took a liking to logistics and decided that he wanted tolearn more. After Fischer had completed an internationaltrainee program at the head office in Kempten, he worked at a number of Dachser locations in Germany, where hegained a great deal of experience in the areas of EuropeanLogistics and Air & Sea Logistics. In 2006, he went abroad.“There was an opening for a Sales Executive in our branchoffice in Chicago,” he says. “I didn’t think about it for longand jumped on a plane.” It was a stroke of luck that his girlfriend had just finished her degree and had found a job with a German company in Chicago. This meant there were no personal obstacles to his adventure abroad.

Always on the moveLooking back, it was an experience that he wouldn’t trade for anything. “I would go back to the U.S. in a heart-

beat,” he says. “Everyone should experience what it’s like to live or work abroad.” His view of the world changedsignifi -cantly during this period, and his interculturalunder -standing grew exponentially. He continues to benefitfrom this experience to this day. “You don’t get very far inglobal logistics without empathy and intercultural under-standing,” he explains. The fact that he loves to travel con-tributed to the experience. “Being in sales in the Midwest, I traveled a lot to see customers. I really enjoyed this and it auto ma tically expanded my horizons,” Fischer recalls.

There are many careerpaths at Dachser: in Germany alone, 1,341 logistics workersstarted training pro-grams in 78 locations in 2015. At Europeanfirms outside Germany,the company had 264 trainees.

When it has to get there fast:

air freight

... Key Account Managers do?

Key Account Managers are responsible solely

for a company’s key customers. Their number one

priority is to ensure customer satisfaction and

maintain a high degree of customer loyalty. To do

this job, they need professional expertise and

social competence. Key Account Managers have

a great deal of responsibility for sales and earn -

ings. In addition, they check to ensure whether

and how contracts are being complied with and

agreements with customers implemented.

WHAT EXACTLY DO

DACHSER magazine 25


Everyone should experience what it’s liketo live or work abroadBenjamin Fischer, Corporate Key Account Manager

Find out more about career opportunities at Dachser on

Facebook www.facebook.com/dachsercareers and at www.dachser.com

F

He also did a great deal of traveling while on vacation, getting to know faraway countries and their cultures. Having acquired this knowledge in addition to his experi-ence in sales, acquisition of new customers, and preparingquotes, he was promoted to Key Account Manager in 2010,taking over direct responsibility for more important cus-tomers. In April of last year, Fischer took the next step in his career and became Corporate Key Account Manager. In this position, he is responsible for multinational corpo -rations, which have a global presence and utilize Dachser’sentire portfolio of services, from overland transport to airand sea freight and integrated contract logistics solutions.His responsibilities include centralized coordination andnetworking of strategic corporate levels with the interna-tional country organizations and branch offices, both on the customer end and at Dachser. To carry out this mainsupport and management function across all business divi-sions, Fischer maintains direct contact with their countryorganizations and branch offices. It is especially the majorglobal customers that appreciate these capabilities.

Fascinating diversityFischer has rarely been bored in his professional life. He has handled a diverse assortment of goods, ranging frommachine components to clothing to race cars and even entire solar farms. “I still find this diversity very exciting—

it’s the spice of life,” he says. No wonder, then, that he feels as though time has simply flown by. The logistics expert and his girlfriend had originally planned to stay in the U.S.only for three years, but those three ultimately stretchedinto ten. For family reasons, he has scaled down his privatetravels somewhat, and now has to rely on his business travel to quench his wanderlust. After all, he is at home all around the world. K. Fink

A direct line to the customer is crucial The solution is the goal

26 DACHSER magazine

T his year, Dachser Czech Republic a.s. is celebratingten years in the Dachser family. Those ten years tell

a very special success story. Not only were all the branchoffices in the Czech Republic fully integrated into the European Dachser network, but the range of services was significantly expanded, revenue increased by 250 percent, and the number of employees almost doubled.

Looking back—and looking forward to excellent prospects. Dachser has been in the Czech

Republic since 2006, offering logistics with passion and expertise from the heart of the Europe.

Dachser Austria is investing EUR 10 million

into the Hörsching logistics center.

One-stop logistics services: Dachser Austria and itslocation in Hörsching near Linz is positioning

itself to offer a broad portfolio of services. These rangefrom warehousing and customized contract logistics services to a direct connection to the seamless Europeantransport network and air and sea freight services byDachser Air & Sea Logistics. The Hörsching logistics center is currently being expanded to include a contractlogistics warehouse with 10,000 square meters of storagespace, offering room for 20,000 pallets. Dachser is invest-

ing around EUR 10 million in the new facility, which is set to be opened in early 2017. This expansion will createaround 30 new jobs.

Anniversary

DACHSER CELEBRATES TEN YEARS IN THE CZECH REPUBLIC

Warehousing

DACHSER EXPANDS CONTRACTLOGISTICS IN AUSTRIA

Today, the company’s eight branch offices employ some500 logistics specialists as well as 200 employees who workfor partner companies. Every day, 83 line haul services go to 37 destinations throughout Europe. “Ten years in the Dachser network have brought us remarkable growth—not just as far as the key economicfigures are concerned, but also with regard to the qualityand breadth of the logistics services and solutions that we provide to our customers,” explains Petr Kozel, Ma -naging Director Dachser Czech Republic. In the future,the company plans to continue to build on what it hasachieved. Kozel says, “Our response to changes in worldtrade and the new demands associated with shaping global supply chains is Dachser Interlocking, a seamlesscombination of European Logistics services and Air and Sea Freight Transport.” Line hauls running like clockwork

DACHSER magazine 27

NETWORK

+++ DACHSER IS EXPANDING ITS EUROPEAN

FOOD NETWORK +++ Dachser has taken an

important step in the expansion of its European

Food Network into Southeastern Europe. In early

June, food expert Nelt took over deliveries in

Serbia as an associate member. The company

has more than 20 years of experience in the

industry, and its seven own locations and 300

vehicles make it one of the largest logistics

providers in the Western Balkans. Ireland also

has a new associate member: Gerish, a family-

owned company, receives food imports brought

in through the European Food Network and

distributes them across Ireland via Dublin. +++

+++ GROWTH IN ÜBERHERRN +++ The lo -

gistics center in Überherrn continues to grow.

Dachser is investing EUR 10 million in an 11,000-

square-meter contract logistics warehouse. The

facility will contain around 22,000 pallet spaces

using a pallet racking system as well as 600

square meters of office space. The center should

be operational in late October 2016. +++

+++ KICK-OFF IN BALTIMORE +++ Dachser continues to expand

its US network. The new branch office in Baltimore, Maryland, which

is headed by Branch Manager Linda Hastings, gives customers,

primarily from the Mid-Atlantic region and the Washington, D.C.

metropolitan area, access to Dachser’s US and global networks. +++

+++ AZKAR DACHSER GROUP: ISO-CERTIFIED AIR FREIGHT

HANDLING +++ Aerospace Cargo Logistics (ACL), a company

belonging to the Azkar Dachser Group, has successfully com-

pleted the ISO 9001:2008 certification process, confirming

the quality and efficiency of its cargo-handling platforms in

Zaragoza and Madrid. This certifies that the transparency

and independence of ACL’s services meet the highest inter -

national quality standards. +++

A hive of activity: Überherrn at night

EFN: a multifaceted network Baltimore's Inner Harbor skyline

28 DACHSER magazine

NETWORK: DENMARK

Denmark straight out of a picture book: the old harbor in Copenhagen

DACHSER magazine 29

NETWORK: DENMARK

The Danes are the “world champions” of happiness. Why? One reason is that Denmark is home to key centers for logistics connecting the Scandinavian markets with the rest of Europe and the world.

A ccording to the United Nations’ latest World Happi-ness Report, the Danes are the happiest people inthe world; the little country leaves all others be-

hind. What makes them so happy? A successful mix of highgross domestic product per capita, a long average life ex-pectancy, plus all-around support from their own social en-vironment that is perceived as positive. Confidence in thegovernment and in companies also plays an important role,as does the freedom to independently make critical deci-sions about one’s own life. ‡

IN LEAGUE WITH

HAPPINESS

30 DACHSER magazine

Not only do all these things make the Danes the world champions of happiness, but they also form the backdropfor an economic success story that has persisted for morethan 30 years. This is what allows Denmark’s industrial and service companies, most of which are SMEs, to oftenplay in a world-class league. Examples include the NovoNordisk pharmaceutical company; consumer electronicsmanufacturer Bang & Olufsen; wind power specialist Vestas;and toy manufacturer Lego. Added to that are prominentcorporations in shipbuilding, the food industry, and beerbrewing. The furniture industry is also an important main-stay; it had already made an international name for itself at the beginning of the 20th century. Pieces such as the Egg, the Danish designer Arne Jakobsen’s classic wing chair,can even be found in New York’s renowned Museum of Modern Art.

Between the North Sea and the Baltic SeaYet quality and product range are just one side of the story—Denmark’s importance for trading with Europeanand world markets is another. Situated between the North

Sea and the Baltic Sea, Denmark is a gatewayto both Northern Europe and the Baltic

states. Dachser had already gainedground in the region as early as 2005through the Haugsted Group. At the

time, the shipping company not onlyhad eleven of its own branch offices in

Denmark, Sweden, and Norway, but wasalso a good fit for Dachser’s corporateculture and high quality standards.

Consequently, Denmark has been the gateway to the north for more than ten years now and an integral part ofDachser’s pan-European logistics network. “Our customersvalue the combination of regional expertise with a close-knit Europe-wide logistics network with intercontinentalconnections,” says Finn Skovbo Pedersen, Managing Direc-tor, Dachser Nordic. The Kolding branch office, located near the German border,is an important platform for shipments on their way to Scandinavia. “This is especially true for shipments headingfor Norway,” explains Pedersen. In 2008, Dachser expanded the Kolding location to more than 60,000 square meters. In2010, an additional branch office opened in Hvidovre, nearCopenhagen. Only a short drive away via highway E20, it isapproximately 13 kilometers from Copenhagen’s city center. “The Danish capital city is one of the most important centersfor logistics in Scandinavia,” says Pedersen about the stra -tegic relevance of the location. Of the 5.6 million people inDenmark, some 530,000 live in Copenhagen itself, while another million live in the surrounding area. The majorroads and railways all lead to or from the capital in a radialpattern. The most famous of these is the “Fugleflugtslinjen”(literally “bird flight line”) transport corridor, which connectsCopenhagen and Hamburg. Copenhagen Airport, in thesuburb of Kastrup, neatly rounds off the available infrastruc-ture—as Scandinavia’s largest passenger and freight airport,it is also the most important portal to overseas markets.

Bridge to the Baltic Sea economic clustersThe Øresund Bridge also offers a fast connection to Sweden.Since its opening in 2000, it has contributed significantly

NETWORK: DENMARK

The Dannebrog, theDanish national flag, is literally a stroke ofluck: according to legend, it first appearedon June 15, 1219, when King Valdemar II fought against theEstonians in the battleof Lyndanisse. The battle was as good aslost, when suddenly a large flag fell fromheaven and the enemywas defeated.

The Øresund Bridge between Denmark and Sweden

Typical Danish cookies

DACHSER magazine 31

The Danish capital city is one of the most important centers for logistics in Scandinavia

NETWORK: DENMARK

Denmark

Total area:

42,924 km2

Population:

5.67 million

Capital:

Copenhagen

Language:

Danish

Currency:

Danish krone

GDP: 266.3 billion

euros (2015)

Imports: machinery,

cars, chemicals, and

metal goods

Exports: machinery

and electronic

equipment, food -

stuffs, chemicals

IN BRIEF

Peter Winge, Country Manager Air & Sea Logistics Dachser Denmark (l.)

and Finn Skovbo Pedersen, Managing Director, Dachser Nordic

to the growth of one of the Baltic’s most important eco -nomic regions. In addition to excellent infrastructure, mar-ket participants have access to eight universities and a whole host of economic clusters. Among them are theMedicon Valley, with its focus on cancer and allergy re-search, the Øresund IT region, specializing in nanotech -nology, microtechnology, and software development, andthe Copenhagen Cleantech Cluster, which is focused on newenvironmental technologies. Around 30 percent of the Kingdom of Denmark’s total GDP is generated from exports. The lion’s share is comprisedof machine parts, machinery, raw metals, electronics, andpetroleum, which are mostly exported to Germany (18.6percent), Sweden (12 percent), and Great Britain (8 percent).From Germany, Denmark primarily imports machinery, vehicles, chemicals, agricultural products, and consumergoods. Some three-quarters of Danish exports travel overland viahighway A7/E45, also known as the Jutland route, which isthe most important transport axis to Germany. Another key logistics artery in the region is the B5, which stretchesfrom the German-Danish border through Hamburg andBerlin to the German-Polish border.

Interlocking connects“From 2014 to 2015, the number of shipments increased by 10 percent to 989,068,” says Pedersen happily. “In thatsame period, profits climbed by more than 20 percent.” In addition to the buildup of overland transport, another reason for this growth is the massive increase in Danish ex-ports to China and the United States. “China has now movedup to become the sixth most important export market for Denmark,” adds Peter Winge, Country Manager Air &Sea Logistics Dachser Denmark. The seamless connection between Dachser European and Air & Sea Logistics inDachser Interlocking creates the ideal conditions in Scandi-navia as well. “Interlocking is the perfect way to accompanyour customers on their path to global markets and to offerthem complex services from a single source. We offer anideal combination: the strength of our European networkwith the global reach of our air and sea solutions.” Two-digit growth in online trade has also had a positive effect on Dachser’s business figures. “That’s because therehas also been a sharp increase in demand for contract logis-tics and package delivery,” says Pedersen. Having established

itself on the market as a reliable partner with plenty of experience and strong IT expertise has worked to Dachser’sadvantage. The positive business development of Dachser Nordic AS is especially impressive, says Pederson, because this growthhas taken place when the signs all pointed the other way.The Danish economy also cooled off noticeably as a result of the global financial and economic crisis, after years ofeconomic prosperity. According to the Federal Ministry ofForeign Affairs, GDP declined by 5.9 percent in 2009 andanother 1.7 percent in the following year. Since 2011, thingsslowly began to turn around. Then finally in 2015, the econ-omy registered economic growth of 1.2 percent. “Despite this challenge, Dachser has seen successful growthand has continuously won new market share in the region,”says Pedersen. “In 2015 we posted tremendous gains.” If he has his way, Dachser Nordic in Denmark will soon belongto the top five one-stop-shop providers. Whether or not construction will soon begin on theFehmarn Belt tunnel in Denmark remains unclear. But once this gigantic European investment project is imple-mented, then the Hamburg metropolitan area and the Øresund region will grow closer together. A good reason for the Danes to be even happier. K. Fink

The Little Mermaid by the waterside at the Langelinie Promenade in Copenhagen

32 DACHSER magazine

BUSINESS LOUNGE: DACHSER FACE-TO-FACE

BERNHARD SIMON SPEAKS WITH ...PROFESSOR

ANDRÉ KRISCHKEDesigning and managing networks intelligently: Bernhard Simon speaks with Dr. André Krischke, Professor for Logistics and Supply Chain Management at the Munich University of Applied Sciences.

Has the term supply chain management become out-dated? Prof. André Krischke: To implement successful supplychain management, you really need a deeper understand -ing of the objectives involved. The term “supply chain” tellsonly part of the story. Value chains begin at a much earlierstage, namely with customers and their needs and are actu-ally not linear like the term chain might suggest. Instead,they’re all about networks that have any number of inter-twined elements.

What would be a more precise term?A. Krischke: “Demand network management” wouldcertainly be more precise. But if we keep customer needsand the network concept in mind when focusing on supplychain management, this established term isn’t wrong. Solet’s just stay with it.

Bernhard Simon: You’re also addressing why it’s essen-tial for supply chain design to take place at the strategic level. If we as a logistics provider cooperate with companiesat this level, we can work with customers to develop sce -narios and solutions that match their needs and their requirements for how markets should be developed. Thisenables us to identify untapped potential and create addedvalue for customers. A. Krischke: Even though it seems the world is becom -ing increasingly complex, on some levels it’s also becomingincreasingly simple. After all, we can now work world -wide with a multitude of similar standards, and that is precisely where supply chain management holds a great deal of potential. Standards enable us to create an under -pinning of fundamental supply chain design principles that make networks manageable even in volatile markets.That’s why we talk more about momentum rather than complexity.

Can you give us an example for how this momentumis expressed? A. Krischke: In the past, it usually sufficed to reexamineyour supply chains every five to ten years to see if they needed to be adapted to changing market conditions. Today,markets are more volatile so these reviews must also be more frequent.B. Simon: This is very important for the relationship between customers and logistics providers. In order to make firm plans, both parties have to understand each other’s processes and exchange information.A. Krischke: We are familiar with this from the auto -motive industry, where OEMs have been working with their strategic suppliers very closely for many years. Theyentrust them with the development and production of significant core modules of their products, thus laying the groundwork for important long-term development pro -

Even the most sophisticated solution is useless if it’s not workable in everyday practiceProf. André Krischke

DACHSER magazine 33


jects. This would not be possible without deep mutual trust.When it comes to managing supply chains, the importanceof a logistics provider’s role is similar to that of such a strategic supplier.B. Simon: In a strategic partnership, our experience, ourexpertise, and our networks often enable us to unlock sig-nificant rationalization and efficiency potential for our customers, which in turn gives them considerably more flexibility in their markets. In comparison to external ad -visors, our position as logistics provider with access to shipment information gives us far more insight into topicsthat are relevant for integrated supply chain managementand enables us to offer real solutions. A. Krischke: A great deal of expert knowledge and a deep understanding of the network and its processes are absolutely indispensable when creating scenarios. This isthe only way to identify the essential questions and to develop truly solution-oriented and, most importantly, feasible responses. Even the most sophisticated solution isuseless if it’s not workable in everyday practice. B. Simon: That’s exactly why it is so important for the development of a successful supply chain that the right people be assigned the right responsibilities. Both part -ners should always have a member of management at thecontrol level because business policy principles are themandatory underpinning for a clear planning horizon; they ensure that the project moves in the right direction and has the necessary guidance. This is a basic requirementfor creating a logistics balance sheet, which, in turn, has a positive effect on the overall result for the customer.A. Krischke: I completely agree. Designing a network isa complex project that must be coordinated with clearprocess steps and results. This typically begins with a precisedefinition of the objectives of the network design and isbased on current supply chain strategies or those one is aiming for. To prevent the model from getting too complex,the first thing to do is to implement the entire modelingprocess with the simplest possible version and minimal data. The model has to be expanded only if doing so pro -vides obvious advantages that justify the necessary addi-tional effort and cost.

What does supply chain optimization under networkconditions mean? Which parameters have priority inthe planning process—the customers’ priorities orthose of the network?B. Simon: We know what advantages our processes have in the control process and what customers have to do so that their networks and ours can function together. A minimum of information has to flow in both directions.That is at the heart of our consultations. We ask very detailedquestions—something that customers tend to greatly ap-preciate. Supply chain design begins at the customer endand not with the logistics provider. And when they learnthat they only have to engage with our interface once, evenfor European or worldwide supply chains, it becomes clear

very quickly how connected networks reduce complexityand make it so much easier for their employees to managesupply chains. Especially in worldwide projects, numeroussynergies can be leveraged that ultimately provide addedvalue for our customers.

What does the interpersonal level have to be like in this process?B. Simon: It’s not possible without people. Figurativelyspeaking, they are the seismographs for what happens inpractice and how the data received must be interpreted.Technologies are not an end unto themselves; at the end of the day they have to serve people. ‡

Network intelligence:systems and people understanding each other

34 DACHSER magazine


Professor André Krischkehas been Professor for Logistics and

Supply Chain Management at the Business

School of the Munich University of Applied

Sciences since 2007. After studying at the

Technical University of Munich, he received a

PhD in chemical engineering. Subsequently,

he was a senior consultant with McKinsey

& Company, Inc. for several years; his last

position was project manager, with emphasis

on logistics, product development, and

procurement. From 2004 to 2007, he was

supply chain manager of a business unit at

Osram GmbH, responsible for planning

and management of world wide flows of

goods in a product sector.

Bernhard Simonlikes to get to the bottom of things—even

if it gets a bit complicated. “The instruction

manual of a sports watch or a phone doesn’t

terrify me, it makes me curious to under-

stand what systems and possibilities are

associated with it,” the Dachser CEO says.

Supply chain design also requires a great

deal of background knowledge. “Getting

the best possible solution for the customer

doesn’t happen at the touch of a button;

everything hinges on expertise,” he adds.

PERSONAL FILE

A. Krischke: A basic requirement for this interaction is a common language. This is the only way to ensure that all participants understand exactly what is being talkedabout in supply chain design and where the value that thecustomer is prepared to pay for is being created.B. Simon: It is precisely because the interpersonal aspectof a business relationship is so important that we are not interested in outsourcing services to, say, a call center orsimilar facility. Instead, we would rather invest signifi -cantly in customer service and in expert employees who, in addition to managing complaints efficiently, have a deep understanding of the customers’ supply chains that allows them to actively shape solutions. This is why we involve our customer service people in the early phases of customer acquisition, so that our employees have a very thorough understanding of customers’ needs.A. Krischke: Consequently, the participants have farmore options for action when they react to the movement of the markets and can develop appropriate solutions early on. Technological advances help us here. Five yearsago, you practically had to be a mathematician and a pro-grammer to be able to operate a network optimization tool.That has fortunately changed. While such tools are still not as simple as Office software, they can be operated by supply chain experts who don’t necessarily have to understand all the mathematical intricacies of the process.

Steve Jobs once said: “Simple can be harder thancomplex. You have to work hard to get your thinkingclean to make it simple.” What do you think? A. Krischke: This approach is certainly correct when applied to supply chain design. But the model doesn’t need to map the entire complexity of the process because it would then become too big and inoperable. It’s impor -tant to fully understand all the requirements and to differ-entiate between what’s important and what’s less impor -tant. Ultimately, the model must be understandable andhelpful in finding solutions. And if—as is the case in supplychain design—the devil is in the details, hard work and clean thinking are compulsory.

B. Simon: Making things simple by just ignoring indi -vidual aspects sounds tempting, but it’s not a solution. It’s a way to preprogram unpleasant surprises. Take the king who wanted to reward the inventor of chess: accord -ing to the legend, the inventor asked the king for just onegrain of rice on the first of the 64 squares, double thatamount on the second square, double that on the third, and so forth. Ultimately, the king realized that all the stores of rice in his kingdom would not be enough. Look -ing at something with clear vision and making the effortahead of time to think things through was certainly goodadvice from Steve Jobs. But a simple design also has its limits. Complexity can be managed only with complexity.Intelligent supply chain design builds the necessary bridges. At Dachser, we call this intelligent logistics.

Supply chain design begins on the customer end and not with the logistics providerBernhard Simon

DACHSER magazine 35

GOOD NEWS

Archaeologists call them “sun catchers”: these prehistoric rock carvings have inspired artist Gerold Jäggle from the German

town of Ertingen to create fine art bronze sculptures. They embrace the motif of the gatherer, the seeker whose curiosity

pushes humanity forward by a dramatic step. Dachser engaged Jäggle to translate this primal urge for innovation and

progress into an original work of art, reproductions of which were then given to outstanding executives in

recognition of their achievements. The message of the “sun catchers” is being passed on:

now models of the sculptures, each measuring 4.5 meters tall, have been

reproduced using Styrofoam and elaborately painted by artist Isabel

Keller. On display in the foyer of the Dachser Head Office in

Kempten, they stretch up to the source of infinite

energy—and try to catch the sun.

PRIMAL URGE TO INNOVATE

magazine - dachser€¦ · dachser magazine is printed on novatech paper certified in accordance...

Documents