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1 panorama The Magazine of the M+R Spedag Group July 2010 Responsibility for the future GREEN LOGISTICS PHOTO CHALLENGE! The Rhombus

2 CONTENTS Editorial 3 Guest Article: The Supply Chain of the Future 4 How will Supply Chains evolve in an energy-constrained, low-carbon world? A future study conducted by PricewaterhouseCoopers Agent Partners 6 A strong partner network is a key prerequisite to fulfill highest quality and service requirements Certifications 8 ISO 9001:2008 Quality Management is joined by Environmental Management and the certification as Authorized Economic Operator (AEO) Kaiseraugst Logistics Park 10 By the end of 2010, M+R Spedag Basel will operate a new terminal and warehouse facility in Kaiseraugst, Aargau Real Time Scanning 12 National Distribution in Switzerland is to be supported by a new system, introducing advanced technology for handling operations and event monitoring The Journey of the Yeast 14 Logistics for the brewing industry: temperature-controlled transportation in one of the hottest areas of the world Beyond the Dutch 16 Fine Arts Logistics in Indonesia: M+ R Jakarta is handling the shipment of exhibits from Indonesia to an arts exhibition in Utrecht, Netherlands Photo Challenge 18 Our corporate symbol, the rhombus, is the theme of our new photo challenge PANORAMA - THE MAGAZINE OF THE M+R SPEDAG GROUP Edition July 2010 Publisher M+ R Spedag Group Ltd., Kriegackerstrasse 91, 4132 / Switzerland Editor Bernadette Jourdan Design + Layout Stephan Schneider Copyright M+ R Spedag Group Ltd. Contact Internet Titel The Green Highway? 2 PANORAMA

3 Our guest article focuses on efficient energy use and considering the environmental effects of emissions. A large-scale study by PriceWaterhouseCoopers on the influence of ecology on the supply chain may provide some scientific background on this topic. In this study, three key hypotheses were analyzed with respect to the probability of their occurrence and their potential repercussions for the logistics sector. The conclusions were not surprising: policy will, in the form of new laws, be increasing the emphasis on more efficient energy sources and more environmentally friendly supply chains. It is also assumed that consumers will consciously be shifting their buying patterns in favor of products that feature the stamp of a green logistics process. Of course, the cost-benefit ratio will remain a decisive factor as well. The question is, can increased costs be passed on the consumer, or might it even be possible to obtain a cost advantage in the form of subsidies? Companies can hardly be expected to focus on protecting the environment without the end result being worth the effort from a financial perspective. There are, of course, exceptions to the rule, but even these serve to confirm the rule. It is now upon us as M+R Spedag Group to decide how to act with respect to the environment. As a first step we sought and received ISO certification in order to gradually take greater consideration of the environment when making decisions in our everyday work, and to make our improvements measurable. A second step will involve prioritizing our clients wishes when choosing transport modes and routes, and after that questioning whether the affected route or transport mode show improvements. Third, we would like to develop tools to help us show our client base how we measure our so-called ecological footprint. This will de done in the spirit of our company vision: The client is impressed by our performance and considers us an equal partner. I would like to conclude by making a film recommendation. Against the backdrop of the recent World Cup in South Africa, I would like to suggest the film Invictus. The film is not about the poverty and poor living conditions of large sections of the African population, as the impressive images and background reports have showed us all through the broadcasts of the games. Instead, this moving film shows how Nelson Mandela used the 1995 World Rugby Championships to create a common identity for his country and its rival groups by way of a national rugby team. This film will give those who see it a better understanding of the meaning of the World Cup for South Africa, and will silence critics who question the benefit of this momentous event for its beautiful host country. Daniel Richner PANORAMA 3

4 GREEN LOGISTICS THE SUPPLY CHAIN OF THE FUTURE The following article is an adaption from the study of the future Transportation & Logistics 2030 How will Supply Chains evolve in an energy-constrained, low-carbon world? conducted by PricewaterhouseCoopers and the Supply Chain Management Institute of the European Business School. How will Supply Chains evolve in an energyconstrained, low-carbon world? For one thing, they will go much further in the direction of ensuring that the cost of emissions is paid by those who reap the benefits, spurred not only by regulation, but also by changes in consumer behavior. Supply chains will bene fit from improvements in technology which enable significant real-time control, allowing greater flexibility. And although in some sectors regional supply chains are likely to grow in importance, overall the supply chain of 2030 will remain primarily a complex global system but one where transport costs and emissions are increasingly key constraining factors of energy. Fueling the T&L sector Transport and logistics companies see themselves confronted with major challenges in the areas of supply and costs. While oil price developments are unlikely to revolutionize the T&L sector over the next 20 years, reducing emissions will pose a greater challenge to T&L companies than obtaining sufficient energy and fuel supply. How consumers may reshuffle the cards for T&L operators While current and future regulations will certainly have an important impact on the industry, some of the push towards ensuring sustainable supply chains is likely to come directly from the end-user, whose purchasing decisions have a strong influence on manufacturing supply chains. This will perhaps necessitate a highly sophisticated technical infrastructure, which may require investments in hardand software as well as skilled workforce. T&L companies will have to rethink their business model to position themselves for the long term. Companies who respond to greater consumer preference for locally-produced products, for example, may be able to build faster and more efficient local supply chains to differentiate themselves from the competition. Increasing urbanization affords T&L companies the opportunity to diversify their service portfolio. For example, there might emerge home delivery specialists able to negotiate the congested last mile in urban environments and provide quick, customized solutions for end-user needs. Logistics service providers may want to consider whether to position themselves as lowcost logistics providers, where customers can select just the services they need, or as high-technology providers offering highly sophisticated real-time control of the flow of goods. Minimizing energy use will take on greater significance in the coming years. Transport modes - more automated, but marginal modal shift Recent decades have seen considerable development in transport modes. The introduction of large aircraft and oversized vessels as well as driverless transport systems (DTS) represent just a few examples of such development. Innovative developments will determine how products get from the assembly line to the end consumer. Competition among transport modes will remain the subject of endless discussion and pose the eternal question of finding the proper balance between individual modes. Infrastructure bottlenecks such as congestion in mega-cities are virtually inevitable and impede growth. More bundling efforts may be required in order to overcome the growing volume of traffic. However, only minor changes are expected with res pect to the modal split. One possible transport concept for T&L operators in mega-cities is cooperation with competitors, also known as co-opetition. For example, divi ding up delivery zones of competing manufacturers could result in significant cost savings. Supply chain design, including the location of production sites, will need to take energy and emission costs into account. There will be no reverse of globalization, but many supply networks will tend towards stronger regional organization. More efficient supply chains The logistics industry provides the backbone of global supply chains. In recent years, global supply chains have evolved in many industries, often due to substantial cost advantages obtained via low-cost country sourcing. The 4 PANORAMA

5 5 4 Oil price at US$ Global energy turnaround Allocation of carbon footprint Impact on T&L Estimated Probability (%) Theses Delphi Results 2030: The oil price has risen to US$ per barrel because oil peaked years ago. Probability: 26% Impact: 4,6 Desirability: 1,7 2030: the global energy turnaround has now advanced to the point so that in some countries alternative energy accounts for up to 80% of the overall energy mix. Probability: 51% Impact: 3,8 Desirability: 4,0 Impact on Transportation & Logistics and Desirability are measured on a scale from 1 to : By using standardised measurement and evaluation systems (i.e. emissions trading, toll systems), the carbon footprint of logistics processes in supply chains must be allocated to the causer and factored into the price of the product. Probability: 68% Impact: 4,1 Desirability: 3,8 Delphi results of trends in energy and emissions complexity of these networks raises serious risk issues, however. Part of the solution to the monitoring problem will come in the form of technological developments. Real-time control systems, for example, will provide T&L operators and their customers with a highly efficient way to monitor many business processes using the Internet. Some experts believe that customers will use the real-time control system to intervene into logistics processes, a development which they believe will be of decisive important for the future of logistics as whole. Some smart containers will not only communicate data through RFID tags; they will organize their process flow themselves. Logistics service providers with sophisticated tracking and tracing systems may be able to employ these to speed the process of adhering to government-mandated security measures. Customs authorities in the European Union perform systems controls rather than physical controls, provided that the logistics service provider is an Authorized Economic Operator, AEO. Obtaining this status affords significant advantages in terms of time and cost during customs clearance. Logistics service providers will thus have to find a balance between energy efficiency and speed of delivery. Opportunity Radar 2030 What do these developments mean for transportation and logistics operators? Some 20 promising future opportunities for transportation and logistics operators have been identified and categorized into four spheres of events on an opportunity radar : Products and Services, Finance and Accounting, Processes and Organization, and Strategy and Positioning. Outlook It s important to be prepared for anything - even the worst case scenario. Logistics service providers should better familiarize themselves with future trends and develop scenarios for various potential outcomes. While the service sector has been working with innovation management for years, logistics companies have yet to systematically put this tool to use. Logistics operators should carry out active management of their innovation processes to better tailor services to their customers needs and increase competitiveness. The conditions governing the development of logistics networks are changing - and so are the networks themselves as a result. Due to growing awareness of climate change and greenhouse emissions, consumers buying decisions will be increasingly based on sustainability criteria. Flexible logistics operators who create new business models and seize opportunities such as co-opetition, bundling of goods flows and diversified positioning will profit from these developments. Source: PricewaterhouseCoopers. PANORAMA 5

6 SWITZERLAND THE RIGHT AGENT PARTNER The M+ R Spedag Group is built on strong partnerships. This fundamental principle remains as true today as it was over 50 years ago at the time of our founding, even though the company long ago grew beyond the Swiss domestic market and is now represented at over 50 locations worldwide. Just like every journey, the transport of goods is marked by a beginning and an end: at the point of origin stands a sender, and at the destination, a recipient. National consignments often involve a single service provider who single-handedly oversees the entire transport by communicating with parties at both ends. The situation is very different when it comes to cross-border international traffic. The goods being transported must pass through various stations and be transferred from one mode of transport to another. Other tasks must be performed along the way in addition to the actual transport itself, such as processing at different hubs, customs and transit formalities, transport documentation, etc. In international traffic, the entire transport is almost always performed by two cooperating parties - the transport service provider at the point of origin and its counterpart in the destination country. There is a fundamental difference between a global logistics operator with offices in all of the world s major trading centers, and a small or medium-sized enterprise (SME). While the latter may be represented in several places, it lacks its own worldwide network of branch offices. In a global company, the office in the country of origin usually works with another of the company s offices in the destination country. The SME logistics company, on the other hand, is based on a network of partner enterprises. These are independent transportation and shipping companies connected in a jointly agreed partnership. Today, M+R Spedag Group is represented by own subsidiary companies in over fifty locations in Europe, Asia, Africa and the United States. While the group can certainly no longer be considered a small enterprise, it is still far from being one of the global giants of the logistics branch. One thing that has not changed since the founding of the M+R Spedag Group over five decades ago is our partneroriented conduct. Of course, there are some business relationships which are covered by independent services at both ends. However, the various divisions of our company conduct over 90% of all transports in cooperation with partner agencies. How does this situation affect our customers? Companies with their own global presence often argue that representation through global offices means better customer service. This is arguably not the case. From the perspective of M+R Spedag Group, our partner-focused conduct is a decisive advantage in itself. In order to provide highquality services, all parties involved must operate at a high service standard. In a rigid network where involved parties are automatically predefined through company affiliation, this is not necessarily possible. As a partner-oriented company, however, the M+R Spedag Group is always able to select its own partners. Another major advantage is that partnerships between independent companies are one hundred percent scalable. The type of rigid structures often found in global companies typically do not allow for this. This inflexibility represents a major problem, particularly in crisis situations. The company is under pressure to utilize its own structure to capacity for the sake of cost savings, which may not have a positive impact on the quality of services. 6 PANORAMA

7 It has always been our philosophy to find the right partner for every transport relationship. Companies vary in the strength of their alignment to different business relations or modes of transport. This is why in some countries we work together with more than one company. For road transports in one particular European country, for example, the Group s Swiss organization works with Partner A, who is entirely focused on group-based transports, while the Spedag East Africa division cooperates with a different company altogether for its project logistics in the same country. Both sides benefit from the ability to choose a partner who best fits the company philosophy and meets our own demands for quality. Both partners are under constant pressure to treat the other side with the same respect one would a customer. Both are always making the effort to offer their service partner the same standards of high quality one would one s own customer. In our industry, independent logistics companies who work in mutual cooperation are known as agents. However, we generally view our connection with these agents as a business relationship among equal partners who are pursuing a common goal. From this perspective, we find the term partner or agent partner a much more fitting term. A successful partnership involves setting aside one s own interests to give central priority to customer advantage. Processes must be jointly structured and optimized from A to Z. A joint purchasing and margins policy must also be defined. Accomplishing this puts us on a par with the industry s giants, because these processes are centrally steered in a global company. A medium-sized company familiar with the logistics market in its own country is more dynamic than any global company. A very important aspect of the partnership, however, is to always view the relationship from the point of view of the partner. Particularly in times of economic difficulty, it is essential not to seek only what is best for one s own organization, thus passing off the pressure on margins onto one s partner. This type of conduct only forces the partner to reduce its own productivity. Instead, processes must be jointly restructured and streamlined, and IT solutions must optimized to benefit both partners. Stephan Schneider, GO EAST! The M+ R Spedag Group AG is expanding its European traffic operations and has set a medium-term goal of attaining a leading position in Central and Eastern Europe. The aim is to cover a modern portfolio of services: from Scandinavia to the Mahgreb countries, from Portugal across the countries of Central and Eastern Europe all the way to Russia. Access to markets, transit points, and customers are of decisive importance when choosing a location. However, by establishing branch offices in Central and Eastern Europe (CEE), manufacturers and producers are striving not only for cost savings, but on-time deliveries to local markets as well. The longer the retail and market expansion continues, the more important these markets will become for logistics providers. Rising consumption on domestic markets combines with the growing significance of the manufacturing industry to increased demand. Sixty percent of the jobs created in Europe are located in Central and Eastern Europe, and infrastructure and transport networks in this region are under constant forward development. Meanwhile, rising fuel prices, changes in market demand and the need to alleviate difficulties in coordination necessitate a reevaluation of the supply chains in the Far East. However, even the domestic markets of Eastern Europe have made a true leap forward in development in recent years. Old economic disparities continue to disappear. Development in the CEE region is one of the cornerstones of the M+ R Spedag Group AG strategy. The logistics sector will be expanded here, as will regularly scheduled land transport routes. M+ R Spedag aspires to a leading position in this region in order to offer a modern service portfolio through a powerful network of partnerships. With the designation of Schaffhausen as the overseeing branch for the CEE region, the group has assigned leadership responsibilities which are in alignment with this goal. The Schaffhausen branch with also enjoy new potential for development. The M+ R Spedag Group AG CEE solution seeks to expand the range of services which the Group has developed over the decades. In every country, the Group will additionally seek the support of a network of partners who are very familiar with the local market and who hold a strong position on the regional market. In the next few months, we will work together with our partners to offer regular direct service from Schaffhausen to Poland, Czech Republic, Slovakia, Hungary, Romania and Bulgaria. Stefan Höcketstaller, PANORAMA 7

8 SWITZERLAND CERTIFICATIONS Supply chains are faced with the challenge of bridging ever longer distances and meeting ever shorter deadlines. In this type of environment, process-controlled business flows are an absolute necessity for logistics operators. Only structures which are efficient and reliable will meet customers requirements. AEO Authorized Economic Operator Effective from 1 January, 2011, new EU regulations will enter into force for customs-approved treatment of import and export goods. One provision of the new regulations is that economic operators must submit certain information to customs authorities when importing and expor ting goods. In order to guarantee a high level of security for the free flow of goods, reliable companies will be given the opportunity to seek Authorized Economic Operator status. An Authorized Economic Operator is a company in the supply chain which has been tested and certified for customs administration, financial solvency, compliance with customs regulations and safety standards and accurate bookkeeping. Beginning in the summer of 2010, all companies listed in the Swiss Federal Commercial Registry or the Liechtenstein Trade Registry will be permitted to apply for AEO status. Although AEO status is not mandatory, it is likely to become a necessity for international trade in the medium- to long-term future. AEO status is recognized between Switzerland and the EU. Switzerland is also aiming toward mutual recognition of this status with other overseas trading partners, including the United States, China and Japan. The M+R Spedag Group AG is on the path towards AEO certification at the earliest possible opportunity. We are also happy to advise our customers on the topic of AEO/authorized economic operator status. ISO 9001:2008 Already more than ten years ago, M+R Spedag had introduced a comprehensive quality management system in Switzerland and subjected all internal processes to strict quality control. In 1997, the M+R Spedag Group received certification for quality management standard ISO 9001:2000 by the renowned testing, inspection and certification group SGS. Since then, annual quality audits have been performed and recertification obtained on a regular basis. Our internal processes are additionally subject to constant internal review, improvement and adaptation to the latest standards. Even the quality standard has been modified and now reflects the current ISO 9001:2008 standard, for which the company has also been certified. Of course, the M+R Spedag Group performs quality control not only in Switzerland, but worldwide. Our East Africa division has already received ISO 9001:2000 certification in Uganda and Kenya, our two largest national branches on the African continent. ISO 14001:2004 Previously, logistics was considered incompatible with climate protection. For some time now, however, a paradigm shift has occurred in our industry, with the concept of Green Logistics growing considerably in significance. We, too, view environmentally friendly process design and sustainable logistics concepts not as trends but as integral components of our company policy. This is why the M+R Spedag Group AG sought 14001:2004 Environmental Management Standard certification. The group s Swiss division underwent the relevant audit on July The key features of ISO certification are reduced waste 8 PANORAMA

9 production and energy and water consumption. The certification examines all technological devices used for logistics operations, from lights and sanitary installations all the way to paper consumption. Other important aspects are vehicle fleet optimization and building/property management. Examples of steps in this direction are using vehicles that feature state-of-the-art motor technology and meet the latest European standards, and/or the consolidation of several branch offices onto a single platform for the sake of greater efficiency. One good example is the new terminal in Kaiseraugst which we will put into operation in late Of course, our environmental strategy will not rely solely on the company; employees, too, will be encouraged to make a personal contribution to environmental conservation at their place of work. Modern engine technology helps to reduce carbon dioxide emission Christoph Wieber, Movie Recommendation Book Recommendation Invictus Morgan Freeman, Matt Damon Regie: Clint Eastwood 2009 South Africa, 1995: Newly elected president Nelson Mandela finds hope for of national unity in an unlikely place: the rugby field. He believes the national team could provide an example of reconciliation in action, and asks the national rugby team captain to do the impossible. In the tradition of big Hollywood movies, this true story has a happy ending. Laduuuuuma! Bartholomaeus Grill (2009) 255 Pages, Hoffmann and Campe On the eve of the 2010 Soccer World Cup in South Africa, Bartholomaeus Grill has compiled a collection of reports on the theme of Soccer. The result is an informative guide about countries and people and an enjoyable reading experience. His book intends to be a homage to African soccer, its power of reconciliation, its seduction, its irresistible magic. PANORAMA 9

10 SWITZERLAND KAISERAUGST LOGISTICS PARK In late 2010, the Basel headquarters of the M+ R Spedag Group will be acquiring a terminal in Kaiseraugst, Aargau. From this point forward, all incoming and outgoing goods will be handled on a single platform, rather than at three different terminals in the municipality, as is the case today. The name Augst refers to the ancient Roman colonial city of Augusta Raurica. Founded in 45 BC, the city is the oldest Roman settlement in Switzerland. Around 100 AD, a city with a river port, craftsmen s quarters and a commercial center stood along the Rhine in the area now known as Kaiseraugst. Today, August Raurica is the best-preserved ancient Roman city north of the Alps and should be maintained for generations as a cultural landmark of national significance. Following construction of the expressway system in the mid-1960 s, countless industrial enterprises moved to Kaiseraugst, which is located in the Aargau region. The most well-known of these is the pharmaceutical company Hoffmann-La Roche, who chose Kaiseraugst as the site of its largest and most modern packaging and logistics center. The municipality has a population of more than 5,000 and provides around 3,500 jobs, approximately 69% of which are in industry, and 30% in the service sector. Soon, the M+R Spedag Group AG will also bring a part of its operations to Kaiseraugst. Starting January 1, 2011 a new logistics center and terminal will commence its operations in the industrial region known as Hirsrüti. Until then, goods handling and national transport remains divided among warehouses in various locations. In the future, the company will be bundling all its terminal operations at the Kaiseraugst Logistics Park and managing them themselves. At the same time, the new location will help contribute to optimized vehicle use. This aspect will be of considerable importance, particularly with respect to the forthcoming ISO 14001:2004 Environmental Management certification. Future storage capacity will allow for an expansion of the service spectrum and an intensification of earlier logistics activities. The Kaiseraugst Logistics Park is located in the center of the border triangle, in immediate proximity to the German and French borders and with excellent access to transport connections. The facility has a direct connection to expressways A2 South and West and A3 East. Junctions to German expressways A5 and A98 North are within a very short distance. The customs offices in Rheinfelden and Basel are respectively just one and fifteen km away. The modern, partially climate-controlled facility comprises approximately 10,000 m 2 of handling and logistics space on three levels. The warehouse on the ground floor is equipped with 32 loading ramps, the majority of which can be electronically customized, and which are compatible with all types of vehicles. Three floors are available as needed in the neighboring logistics area for storage and processing. All floors have the same floor plan, a ceiling height of 4.3 m and more than 2,000 m 2 of combined stor- 10 PANORAMA

11 Range of Services Besides the standard service portfolio offered by M+ R Spedag Group AG, M+ R Logistics Service AG and Spedag East Africa AG, we offer our clients at our new Kaiseraugst Logistics Park numerous additional services. The services can be tuned to the individual needs of each client. Services include: Warehousing and inventory control Stocktaking Quality control Sorting Cargo handling activities at the Kaiseraugst Logistics Park age space. The floors are connected to one another with powerful transport elevators. The Kaiseraugst Logistics Park is equipped with a stateof-the-art fire protection system and a comprehensive video surveillance system to meet the latest safety standards. An additional electronic access control system in the storage area and office building help further minimize the safety risk. The customs requirements for the upcoming AEO status application process for Kaiseraugst are thus completely fulfilled. With an area of 650 m 2, the adjacent two-story office building even provides enough room to offer on-site office space to prospective customers. Pick & Pack services Labelling / Relabelling Packing / Repacking Removal of markings Reverse Logistics Waste management Lease of office- and storage areas Bonded warehousing Documentation Track & Trace Bastian Scheffner, PANORAMA 11

12 SWITZERLAND REAL TIME SCANNING In parallel with the relocation to the new terminal in Kaiseraugst, M+ R Spedag Group AG will also be introducing technical improvements in the areas of goods handling and national distribution. Starting January 2011, all handling operations, as well as pickup and delivery of goods to and from the customer, will be supported by a real-time scanning system. Handheld scanning devices include a multitude of functions Modern logistics concepts rely on complex process-controlled operations which encompass a wide spectrum of work flows and steps. For over half a century, little has changed in the way of the tools used for the manual labor of vehicle loading and unloading. Now these work steps will become part of IT-controlled processes and monitored by state-of-the-art electronic assistance devices that have only become available in recent years. Although electronic data and information flows have only been an important component of the logistics process for a short time, they now represent the backbone of any efficient supply chain all over the world. One main priority in optimizing these supply chains is to eliminate an interface where manually collected information must be entered into electronic media. A significant step towards attaining this goal is electronic registration of goods as they are transferred through the transport chain, starting with pickup from the sender, through reloading at the various transport hubs and ending with delivery to the end recipient. In order to accomplish this, logistics companies can use modern scanning systems. The Real-Time- Scanning System (RTS) used by M+R Spedag as of January scans the barcode label on each individual package and stores the transfer data not only on the physical interface, but on the central server of our Transport Management System in real-time as well. At our terminal facilities, employees involved in technical operations on the ramps and in the cargo handling areas are equipped with these scanners. When unloading incoming trucks and containers, the barcode of each individual package item is scanned and wirelessly transmitted to the TMS. This code is compared with the cargo list transferred via EDI from our partner at the point of origin, and the time and precise location of the scan are automatically recorded and saved as status information. The same thing happens when trucks are unloaded at the terminals. Discrepancies with the cargo lists are automatically recorded and will activate an alarm message. Any type of damage to the packages are documented and recorded by the scanner s built-in digital camera. The scanning process continues in national distribution, the division responsible for delivering individual consignments from the entry terminal to the end recipient as well as for picking up consignments bound for export. Every driver is equipped with a mobile scanning device. In addition to the laser required for the scanning process and a built-in digital camera, these devices also feature a GPS locator and a GMS communication module. The latter allows for constant data exchange with the server at the control center. Complete information about the pickup or delivery route is stored on the device prior to the driver s departure. This data can also be updated with new in- 12 PANORAMA

13 formation while the vehicle is en route. For example, the control center can use GMS to send the driver information about a pickup that has just been ordered. The driver can also make calls or send text messages to the control center on the GMS device. During the drive itself the mobile device functions as a navigational tool, showing the driver the best route to take. At the loading/unloading site, the individual packages are scanned once again, and the recipient confirms receipt by giving an on-screen signature using the device s stylus. The device instantly sends all data via GMS to the control center with a time and location stamp. For the entire duration of the route, the dispatcher at the control center can view the vehicle s current location on his monitor. Of course, using a modern RTS system allows for increased efficiency and conveys a decisive advantage. However, we will not be the only ones to obtain this advantage; all other parties involved in the supply chain will benefit as well. Electronic tracking and real-time data transmission provide for a high level of transparency and information density which can in turn help customers and partners optimize their own processes. Stephan Schneider, OVERNIGHT EXPRESS SEES A RISE IN DEMAND In the summer of 2009, we began collaborating with our partner TNT Innight to offer express transport service from Germany, Austria and the Netherlands. Demand for this time-sensitive product continues to rise and opens new growth potential for us. Overnight express goods may vary in their size and weight but they have one thing in common: they are urgently needed at their destination and must therefore be delivered as quickly as possible. Each day we pick up between 250 and 300 consignments from suppliers in Germany, Austria and the Netherlands and deliver them during the night onto the central terminal in Ludwigsburg near Stuttgart. Here, the goods are quickly loaded onto different types of vehicles to be transported to Schaffhausen. While the consignments are en route to Switzerland, our customs brokers and dispatchers make all the necessary preparations to ensure their seamless further transport. In order to avoid delays during transport, all parts of the process must fit together perfectly. Customs clearances must be prepared, handling personnel must be present and ready, and all seventeen drivers must be with their delivery vehicle awaiting assignment. Our performance target is Switzerland-wide delivery by 12:00 a.m., Monday through Saturday. Export traffic to Germany is also constantly on the rise. For this service, deliveries will reach the recipient between 4:00 a.m. and 8:00 a.m. Because urgent shipments of spare parts are of major significance in Germany, we also deliver directly to auto repair shops or to mechanics service vehicles. The overnight express option allows us to offer our customers quick, affordable and reliable service. This new and innovative logistics solution is a major advantage for our customers who face today s dramatically changed market conditions. Jörg Schlobies PANORAMA 13

14 AFRICA THE JOURNEY OF THE YEAST For many years, Spedag East Africa has been overseeing and handling the logistics for a number of breweries owned by the SABMiller Group in Uganda. SABMiller is the world s second largest brewer and one of Africa s leading players in the brewing industry. We had already delivered the containerized goods, the wide-load flatbed trucks and the heavy machinery to Juba. Now all that was missing to start the brewing process was one particular and very important ingredient: the yeast. Yeast is a living organism, and the particular variety used for brewing beer is considered highly sensitive cargo. The temperature of the yeast must lie within 3 C and 5 C at all times. If these conditions are not met even for a short time, the microorganisms will immediately perish and the product will be ruined. We took on the challenge of transporting the delicate shipment from Jinja, Uganda, to Juba in Southern Sudan, one of the hottest regions on the planet,. We had to quickly come up with an idea for a way to implement this unusual project. The yeast was at the perfect temperature inside storage vats in Jinja. We arranged for a charter flight, a pickup truck and larger vats to hold the vats that already contained the yeast. What we really needed was ice - and lots of it. We reached Jinja early the next morning with six empty plastic vats on the bed of a pickup truck. With a local temperature of just 4 C, unusually cool for local conditions, we got to work in the cold storage room. We placed ice-filled bottles in the plastic vats, added the vats of yeast and covered everything with a thick layer of crushed ice. Then we closed the barrels tightly. Although it was still early in the morning, the temperature had already reached over 20 C. We quickly loaded the barrels onto the pickup truck, secured the load, drove off, crossed the River Nile and the Owen Falls dam, reaching the neighboring runway in an incredible 15 minutes. In a stellar example of precision planning, the charter flight was already prepared for departure. We loaded the six vats onto the aircraft and secured them in place. Within minutes, the plane was ready for takeoff. As we hurtled across the bumpy tarmac, we could hardly believe that only a few minutes had passed since we left the cool storage room. After a brief pit stop in Entebbe to take care of export formalities and to refuel the plane, we continued on to Juba. Every thirty minutes we added ice to the vats and optimistically awaited our arrival, knowing our colleagues at SPEDAG S.SUDAN had already begun preparations for import customs clearance. As we approached the landing strip, we saw our colleagues waving and the truck standing at the ready. As we disembarked, we were overwhelmed by the tremendous heat: 45 C in the shade, and even hotter under the scorching sun. The customs officer was waiting on the landing strip and made sure we could enter the country with our registered cargo within minutes. While the customs officer took care of the formalities, we wrapped the vats in towels that had been immersed in cold water. We were now on the last leg of our journey: the dusty, rocky streets of 14 PANORAMA

15 the city of Juba. Signs warned travelers not to leave the marked paths. After a long and seemingly endless civil war, the ground in Juba is still teeming with land mines. Just a few kilometers outside the city lies the brewery, which had until now been unable start production without the yeast as a key ingredient. We were immediately dropped off at the facility and drove directly into the cooled storage room where the brewmaster took receipt of the cargo. We delivered the yeast in perfect condition, at the optimal temperature of precisely 4 C. SPEDAG needed exactly four hours to handle the task. When I returned to the brewery after a short break, we got to witness production of the very first beer. As you read this article, people in Juba are making a toast to peace over a cold glass of White Bull, produced by Southern Sudan Beverages Ltd. (SSBL). Since the start of the project, when the brewery was nothing more than a draft on the drawing board, SSBL has been working exclusively with SPEDAG for its logistics needs, and will continue to do so in the future. Michael Bubendorf, Kampala Strategic reinforcement for East Africa Dennis Keiser is now filling a double role as Group Financial Controller for Spedag East Africa and General Manager for Mombasa-based Spedag Spedition Kenya Ltd. He completed his study internship while pursuing his degree in shipping management, and has been working for us since Following the successful completion of his studies, Dennis Keiser spent several years working as a Controller at the head office of the Spedag East Africa organization. Spedag East Africa has three offices in Kenya (Mombasa, Nairobi and Malaba) with over eighty employees. The port of Mombasa is one of the most important gateways to the entire East Africa region. Spedag Kenya works in close collaboration with its sister companies in East Africa to forward incoming consignments from Mombasa to their interior African destinations. Dennis Keiser Spedag Kenya receives ISO certification In December 2009, Spedag Spedition Kenya Ltd. was certified by the international testing organization Bureau Veritas for the ISO 9001:2008 Quality Management standard, following in the footsteps of its sister company Spedag Uganda which received the same certification in the year The Spedag East Africa division is intensely involved with the project management business and provides logistics services to an international client base for large-scale projects in the areas of infrastructure, construction and civil engineering, etc. Kenya Sponsorship Project It began three years ago, when three employees from Spedag Kenya formed a soccer team with the name of Spedag. The team is extremely successful and has won first or second place in ten tournaments during the three years of its existence. These tournaments enjoy a great deal of popularity, and more and more teams have been founded over the past few years. Last year saw the establishment of the official Kenyan Women s Premier League. Of course, Spedag Spedition Kenya Ltd. is the main sponsor of the Spedag soccer team. The company s employees also founded the Spedag Community Program, in which employees make private contributions used to help players from the Spedag team build up financial security. PANORAMA 15

16 ASIA ART AND LOGISTICS The Centraal Museum in Utrecht recently held an art exhibition entitled Beyond the Dutch which demonstrated the influence of Dutch culture in Indonesia before and after the colonial period. For the exhibition, Indonesian artworks from the past 110 years had to be transported to Utrecht and later back to Indonesia again. M+ R Indonesia was entrusted with the regional logistics. Those who have traveled to Indonesia are aware that the inhabitants of the largest archipelago in the world have a particular penchant for art. Their love of beauty is evident in the multitude of statues, carvings, paintings, special architecture, richly embellished buildings and colorful batik patterns found everywhere. Dutch colonial rule in Indonesia lasted almost 350 years and left its mark in both The original billboard advertising of the exhibition in Utrecht (with kind permission of Centraal Museum) countries, particularly in the world of art. In order to demonstrate to the public the two countries mutual influence in the visual arts, the Centraal Museum in Utrecht, Netherlands, ran an exhibition from October 2009 through January 2010 entitled Beyond the Dutch. The exhibition was composed of a broad spectrum of works from Indonesian and Dutch artists, from classic paintings to modern art created between 1900 and today. Among the sponsors of the exhibition were the Dutch Embassy in Indonesia and the Indonesian Embassy in the Netherlands. Particularly in the case of a temporary exhibition, people are often unaware of the extent of the logistical challenge that must be overcome in order to allow visitors the pleasure of beholding art objects from faraway countries in their own hometown. The Centraal Museum hired a Dutch company specializing in fine arts logistics to transport the paintings from Indonesia to Utrecht. However, because it lacked its own setup in Indonesia, the company first needed to find a reliable and competent partner to take care of local logistics in Indonesia. Numerous Indonesian companies were contacted before PT M+R Forwarding Indonesia became the clear choice. Transport preparations began in August A series of artworks totaling 10 m 3 in volume was prepared for dispatch by sea freight and 85 highly valuable paintings and drawings were sent via air freight to Utrecht. M+R Indonesia picked up paintings and art objects at various museums and art galleries in Jakarta, Bandung, Magelang and Yogyakarta. All works were collected at a warehouse in Jakarta and specially packaged for additional protection during transport. The works remained under constant surveillance and were subject to maximum security measures until it was time for shipping or takeoff. In early October, the consigned works arrived safe, sound and on time in Utrecht. The exhibition opened its doors on October 17, Over 35,000 art enthusiasts visited the Centraal Museum over the next two and half months. The exhibition was a huge success, due in great part to the fact that some of the older works were being 16 PANORAMA

17 put on public display for the first time anywhere outside of Indonesia. At the end of the exhibition, it was time to organize the return transport to Indonesia. The artworks were all professionally packaged once again and sent back to Jakarta, where they were received by M+R. Once the artworks arrived and before being returned to their respective owners, each one was examined a second time by an expert from the Centraal Museum Utrecht to determine whether any damage had occurred during transport. Arnold van der Veen, Jakarta TAKE-OFF Eurocopter, a subsidiary of the European aeronautics and astronautics company EADS, is investing US$ 12 million for the construction of a Southeast Asia regional office in Singapore s Seletar Aerospace Park. With its 52 percent market share, Eurocopter is the global leader in helicopter development and manufacturing. Over 10,500 of the company s helicopters are in use in more than 140 countries. The oil and energy sector has seen a dramatic boom in recent years. In Southeast Asia, many companies are active in the offshore sphere of this sector, and demand for small and medium-sized helicopters continues to grow. For distances of up to 400 kilometers, a helicopter is the absolutely fastest mode of transport, fast-tracking the user to his destination in a very short time. And particularly for crews working on oil platforms, a helicopter is just about the only way to reach their place of work. Applying to become an accredited logistics operator with Eurocopter represented a challenge for M+R Forwarding Singapore. The application process is extremely complex, and only the best are selected to transport the aircraft and aircraft parts. Part of the challenge comes from the requirement that the machines can only be loaded with certified claw arms, cranes, etc. Specially manufactured aircraft palette mounts prevent helicopters and parts from slipping or falling to the ground. Gareth Evans, Singapore PANORAMA 17

18 INTERNAL PHOTO CHALLENGE The M+R Spedag Group s corporate symbol is a rhombus. This geometric shape is seen more often in everyday life than one might expect. The rhombus can be spotted as a decorative element, in modern architecutre, or even in nature! The M+R Spedag Group is launching a photo competition on this theme. We invite all our employees, clients, partners and suppliers to submit to us their best photos that feature rhombus in any way. We will display the submissions in a digital gallery. Twice a year, we will award a prize for the five best photographs. By submitting a photograph, the participant confirms that he or she is the owner of this image. Photos which violate third-party copyrights shall not be permitted. The M+R Spedag Group reserves the right to deny participation in the contest to submitted photos which may be considered morally, ethnically or otherwise objectionable. There is no restriction as to the number of pictures each participant is permitted to submit. However, individual participants may only receive one prize per round of judging. The copyright to submitted photos remains with the photographer. However, by participating in the competition, the photographer consents to grant the M+R Spedag Group permission to use submitted photos for its own ends, including for promotional purposes. All photographs must be submitted in digital form as a JPEG file. your pictures to mrspedag.com. No more than one photo per , please. All s must contain the name, address and contact number of the sender, as well as the title of the photo. We would appreciate, but do not require, information about where the picture was taken and and any comments you may wish to add. The management at M+R Spedag Group will appoint a jury to select the best of the submitted photos twice a year. Selected photos will be awarded a prize. 18 PANORAMA

19 ANNIVERSARIES 10 years Max Aberer Roman Battaglia Ruth Biedermann Petra Blümli Jose Chow Carlo De Laurentiis Monika Frech Dany Furet Birgit Häringer Claudia Heidrich Walter Hugentobler Rudolf Hügi Bernadette Jourdan Kirsten Kaiser Elmar Kolb Fabien Lehodey Antonio Longhitano Alfred Mamedow Dieter Martin Annabella Massafra Amy Sun Eckhard Süsskoch Pattama Tongtidrum Beatrice Wanner Jiaqi Wen Eva Wong Sunny Yeung Reiner Zimmermann 15 years Ruth Beck André Messerli Simon Mokonyane Christina Motloung Maureen Setz Beat Zbinden 20 years Andreas Hirschi Lai Chi Kin Clément Reinhart Johanna Renggli Freddy Rothmund Sandra Schlegel Almond Tse Ingrid Winkler Bp. Supriyono Ibu Syahroni 25 years Judith Nebel 30 years Doris Ulinski Gunzgen Gunzgen Hong Kong Schaffhausen Schaffhausen Schaffhausen Gunzgen Schaffhausen Hong Kong Schaffhausen Gunzgen Shanghai Bangkok Shanghai Hong Kong Hong Kong Schaffhausen Gunzgen Gunzgen South Africa South Africa Schaffhausen Gunzgen Hong Kong Schaffhausen Hong Kong Jakarta Jakarta PANORAMA 19

20 And the winner is... The country which is home to the current champions in tennis as well as soccer also uses the rhombus as their symbol. Seen in the Spanish Village at Europapark Rust (Germany). (Photographer: Daniel Richner) A NEW CHALLENGE In future, we will show on this page photographs that have been submitted for our new photo challenge. The above pictures are placeholders - we are looking forward to presenting the first contributions in our next issue.

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