n0. 1 2007

New Name for a New Era Mrs. Boss DSV in India

2 moves

Editorial

It’s been a while since we felt that the term “shipping and haulier business” covered our activities. It was probably as far back as in the years after the summer of 1976 when DSV came into existence as a modest merger of 10 in-dependent hauliers – most of whom had just one lorry. This marked the begin-ning of our present business and now we call ourselves a global supplier of trans-port and logistics services. It may not sound like much of a difference to the untrained ear – perhaps the words are just a bit flashier today so it all sounds a bit bigger? The truth is that our busi-ness today – and the expectations of our services – is quite different from before. We have increasingly become a strategic business partner to our customers, who place ever-increasing responsibility for the supply chain on our shoulders. Price used to be the main focus – how cheaply could we transport from A to B? - but now security, precision and documenta-tion are equally important buzzwords. Security that the goods will be delivered to the right place at the right time as well as precision and reliability in the task performance to ensure uniform quality and standard all over the world – and documentation that we keep our promises. Logistics has become crucial in deter-mining success or failure. No one can afford random chance when it comes to stability of supply – or when it comes to the situations where we more or less

add new value to the products and actually become part of the company’s production apparatus – even at our own locations. Visibility is a significant component when it comes to satisfying the new requirements. We are in the process of testing out new functionality which allows our customers to go online and “breathe down our neck” to get answers to some of the standard questions that are always related to a service. This is not because we want to introduce self-service and don’t feel up to answer-ing questions about lead times, track & trace, CO2 emissions, customer statistics, total turnover, etc. On the contrary, the idea arose out of in-depth interviews with a number of our cus-tomers who demand more homogeneity on a global basis together with stricter requirements for information flow and precision. The widespread uniformity of our IT solutions (booking systems, etc.) at DSV gives us a unique op-portunity to meet these demands and enable our customers to retrieve more information about the transport services than ever before. In this edition of Moves, you can read more about the developments within customer-related IT (page 20).

But we don’t want things to get too complicated, either. Because even though transports and logistics are more

important to the business community than ever before, and even though there seems to be no limit to the range of new services fitting that description – we are still fully dependent on those who load the vehicles and transport the goods from one end of the world to the other. Precision, timing and documentation are important. But it’s equally impor-tant that containers and trailers are utilised at full capacity. Environmental issues and reduced CO2 emissions are absolutely critical for an increasing number of customers when choosing their transport provider. In this context, it is worth stressing that a company’s size gives obvious environmental gains in terms of geographical planning and better capacity utilisation – so in this area, too, DSV has clear advantages that we continuously translate into new, environmentally sound transport solu-tions for the businesses of the future.

Yours sincerely

Kurt K. Larsen

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12

8

20

Women at the top

“Embarrassing”. This is

how men may react when

area manager Monica

Fredriksson wants to pay

for the work dinner as the

most natural thing in the

world. She hopes it will be

more natural in the future.

Pages 12-13.

Hello India

DSV has set up own op-

erations in India. The four

new offices in the world’s

number one growth centre

were inaugurated in keep-

ing with Hindu tradition

– and the gods listened

from day one.

Pages 8-9.

Bull’s eye

Rene Falch Olesen creates

new weapons in the

struggle to win customers.

Precision and documen-

tation are the building

blocks.

Pages 20-21.

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The letters for the new logo were developed specially for DSV by graphical designer Muggie Ramadani whose idea was to use an unbroken line to symbolise a road. “This is DSV’s field of work,” says Muggie Ramadani showing his working drawing to illustrate the strict geometrical construction of the fount which leaves nothing to chance.

Since 1 January 2007, 19,000 DSV employees all

over the world could tell the time on the same

clock: the gift to the employees marks a new

era for the transport group whose name is once

again DSV as it was in the early days of the

company.

New era - new name

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To some employees at DFDS Trans-port, it felt somewhat like coming home when the company changed its name to DSV on 1 January 2007, because they are among the 1,000 employees of the original DSV, “De Sammensluttede Vognmænd af 13-7 1976 A/S” (“Federa-tion of Hauliers”) which bought Samson Transport Co. A/S back in 1997. From then on, DSV was no longer just “DSV”, but “DSV Samson Transport A/S”. This name lasted some three years before the company acquired DFDS Dan Transport Group A/S in 2000 and continued under the name DFDS Transport Group A/S, which constituted the operational section of the company until the name change in January. It was the “operational” section, because DSV was still the name of the holding company and, therefore, the name referred to every day by analysts and shareholders in the newspapers’ stock exchange listings.“It was confusing to everyone involved. Not a day went by without having to ex-

plain the situation to customers or share-holders who couldn’t understand why the lorries didn’t have the same name as that in the stock exchange lists,” explains global marketing manager Peter Krause, who headed the process for changing the name and logo. “The name DSV gives us just one logo for the entire undertaking and a much clearer brand structure,” he says. “We were very close to changing our name to DSV in 2000 when we took over DFDS Dan Transport,” reveals CEO Kurt K. Larsen, but he could not ignore the money paid for the use of the DFDS Transport name; a brand which was a significantly better known than DSV.

New era “We chose to call the business DFDS Transport and I’m convinced that this was the right decision at the time. It felt right, and the name was good for us even though there have been times when I have wanted more clarity regarding our

name structure,” says Larsen.It became evident that the time was ripe for a name change when DFDS Transport acquired Dutch Frans Maas in April 2006 and was on the brink of a new era. There was no doubt that DFDS Transport had once again acquired a competitor whose name and logo were even more common on European roads than the acquirer’s name. On the other hand, there was also a need to signify a new beginning for both merging companies, and it was decided to make a clean sweep of it for the group once and for all and establish conformity between the holding company, the opera-tional business unit and the name used on the Copenhagen Stock Exchange. The choice fell on DSV.“It was exciting to follow the process, not least among Frans Maas employees who tended to prefer a model that included both company names right after the ac-quisition. As things proceeded and we got to know each other better, the vast major-ity of Frans Maas employees - even in the

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Netherlands and Belgium - supported an entirely new name. This was very reassuring and comforting for the future unity in the company,” Larsen says.

Electronic design manualSince the summer of 2006, DSV has been working with Inclusive in Co-penhagen to create the new graphical identity. Inclusive has extensive experi-ence of developing corporate identity and branding strategies. The work has resulted in a web-based manual from where marketing staff in the 50 DSV countries can download relevant information about the use of the logo, colours, sizes, placement of the logo in documents, on lorries, trains, containers, etc. The materials have been extensively used since mid-November, as the coun-tries needed signboards and flags for buildings and new printed material to be ready in time for logo launch day on 1 January 2007, includ-ing 34 websites with updated information, logos and pictures. On that day, 100 lorries also displayed the new logo - and 50 units are added every week. Due to the costs involved, tarpaulins and logos on cars, etc., will be changed as and when the vehicles are due for replacement. It is esti-mated that all transport units (10,000) will be replaced in seven years.

Name partyName parties were held in all offices worldwide in the days following the name change on 1 January, and the employees received a watch as a direct reminder of the new times and the new name. The watch was specially designed for the occasion by Russian watchmaker Alexey Asvarisch, and the company bought 21,000 watches with a discreet DSV logo on the side in both men’s and women’s models. The idea is undoubtedly Kurt K. Larsen’s: The DSV CEO is an impassioned watch afi-cionado and has single-handedly chosen the very stylish watches.

Jaan Lepp from the Baltics planted the DSV flag at the top of mount Kilimanjaro in Tanzania. Top class branding.

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In Estonia, 700 people formed a DSV sculp-ture, as the com-pany simultaneously celebrated its 15th anniversary.

The employees of the Finnish Road division drew the lines for the large DSV picture now decorating the main office in Vantaa.

DSV in Sweden treated its employees to lunch, DSV water and scrumptious cake.

Collaboration / In connection with the name change, DSV Denmark established a strategic management group across the three divisions, DSV Road, DSV Solu-tions and DSV Air & Sea. The purpose of the 16-man strong management group is to establish even closer collaboration among the companies. At the same time, sales manager Peter Fog-Petersen, 34, has been appointed head of a joint sales organisation aimed at making DSV an even stronger partner.

Double glazing / DSV has taken over 23 articulated lorries – and all employees of haulier Bent Kristensen A/S in Hvidbjerg, Denmark. Bent Kristensen A/S is the larg-est carrier of Danish double glazing. The added volume strengthens DSV Road A/S’s position within transport and logistics solutions for the construction industry.

Good cause / DSV Road A/S donated EUR 13,500 to BØRNEfonden, a Danish children’s aid organisation which helps and supports children and their families through sponsorships to promote health, education and independence. The donation was made after an employee at the termi-nal in Brøndby, Denmark, encouraged the management to support the good cause.

Donation instead of Christmas gifts /DSV in Sweden cancelled its Christmas gifts to the customers and donated EUR 11,000 to the Swedish Child Cancer Foundation instead. The employees were also given the option to decline the company Christmas gift and use the money to support the Foundation’s efforts to establish sponsorships to help and support children and their families in poor countries: EUR 4,360 were donated by the employees.

Less is more / The DSV canteens in Denmark are reducing their menus – but raising the quality by using healthier pro-duce, more home cooking, veggies, lots of fibre and less fat. The idea of investing more resources in preparing more nutri-tious food originates from last year’s life-style analysis which indicated food as a possible focus area for enhancing health. The changes are already implemented and will be regularly adjusted.

Ocean transports / After intense competition with the major European transport companies, DSV won a global contract tendered by Bombardier Trans-portation (BT) in Bremen, Germany, for shipping BT’s deliveries from all suppli-ers in China to Europe. The agreement is based on the transport of some 1,000 containers annually as well as LCL (Less than Container Load) and air cargo - and BT is currently expanding its sales or-ganisation in China with expected volume increases already by the end of this year. DSV has established control towers in Shanghai and Bremen for handling book-ing and communication with BT.“The choice of DSV is largely attributable to the major effort invested by our local offices in China and Germany. BT has mentioned confidence in the communica-tions and our presentation of the solu-tions as the reasons behind their choice. The personal contact was decisive,” says Business Development Director Erik B. Andersen.

62,000 m2 in Spain / DSV in Spain has now officially opened the new logistics centre in Rubi outside Barcelona. Aceremony attended by Jonas Hansen,Kurt K. Larsen, the mayor of Rubi amongmany others marked DSV’s opening of the largest, most advanced logistics centre in Spain of no less than 62,000 m2 early this year. Among the goods housed in the new storage facility are 15,000 Yamaha motorcycles, 8,000 m2 of hazardous goods, 11,000 m2 for multi-clients and10,000 m2 for special logistic services. The building also has 10,000 m2 available for receiving international cargo and is equipped with no less than 89 gates for loading and unloading.

DSV FC / While DSV belongs in the pre-mier league of transport companies, we find ourselves in division 6 when it comes to soccer. DSV FC gets its kicks in the British Sunday League Team, also called the Scunthorpe League – headed by three employees from the South Killingholme office. The amateur soccer team, which plays according to the FA rules, also counts other DSV employees. The team started in the league a year ago and hopes to be promoted to division 5 next season.

News

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N E W D E L H I

M a d r a s( C h e n n a i )

B a n g a l o r e

B o m b ay( M u m b a i )

D e l h i

India is now on the DSV map – and it was full throttle from

day one with the opening of four offices. India aims to gen-

erate growth for the group – and growth in India with even

more locations before the end of the year.

Top professional from day one

The bare-chested Hindu priest chanted prayers in Sanskrit, blessing the office, the boss and the staff. Sand was spread on the table in meticulous patterns swirling around bananas, coconuts, flowers and leaves. Rice was burning in a brass bowl, blanketing the new DSV office in smoke and fragrance, marking the opening of DSV in India. May Krishna and the other gods be benevolent from the beginning.Indications are that the Hindu gods were present, because the office was off to a flying start with more than 550 shipments in the first months – 200 more than budgeted. On the other hand, little was left to chance when DSV, like many other global transport groups, decided to conquer the Indian continent with its more than 1.1 billion inhabitants.

Great ambitions”We are obligated by our size when we start operations in a new country. Our credibility as perceived by Indian and overseas clients is decisive, and our colleagues in other countries expect us to operate professionally from day one”, says vice-president of DSV Air & Sea, Peter M. Larsen, who visited India several times last autumn to pave the way for DSV’s entry into the country as an independent company on 1 October 2006. Before, DSV was rep-resented by only one employee, Lars Nielsen, at Flyjac, the former agent in Mumbai. This was not a tenable solu-tion in the long run, however, in the light of the division’s aim to double turnover in Air & Sea from the current EUR 1.1 billion. This means that India

cannot be ignored, as it is currently among the very largest growth centres in the world with an annual growth rate of 9.5 percent in 2006.

Plenty to go roundThe new offices in Mumbai, Delhi, Bangalore and Chennai are expected to give a positive return already in the first financial year. Though the break with Flyjac, the former agent, cuts us off from some of the old clients, managing director Michael Carstensen, Mumbai, sees no reason to dwell on the past. ”The cake out here is so large, there is more than enough to go round. We’re extremely optimistic,” says Carstensen, stating that already in December, the company had more than 1,000 shipments: ”And this is just scratching the surface,” is the optimis-tic message from the boss in Mumbai, which is the largest city in India with almost 18 million inhabitants.

New employeesIn keeping with the rising number of shipments on a daily basis, not a week passes by without seeing new employ-ees in the offices. Indians are generally well educated and speak English from north to south, so the recruitment base is larger than in most of the Asian region.”We start every Monday in the offices by greeting new faces,” Christiansen says, who has employed headhunting and professional recruitment agencies to find staff, and there are now more than 60 employees at the four offices after starting out with 16.

”By and by, we’re also receiving quite a number of enquiries from employees in the other large, international ship-ping companies, who are well familiar with DSV. There is always a lot of commotion when a new player enters the field.”

Well-preparedIt was no secret that DSV wanted its piece of the action in what is perhaps the world’s largest growth centre with massive production of textiles, toys, household appliances, comput-ers and other electronics products. The country’s most important trading partner is China, and shipments are sent on daily basis to and from China, USA, Scandinavia, UK and Germany – just to mention the most significant destinations.”It’s important to us that the new Indian offices are operated in the DSV spirit,” says vice president Peter M. Larsen, who spent a lot of time during his visits to India talking with the relevant authorities, the embassy and chambers of commerce about the company’s entry into India. ”We’ve chosen the same structure and the same IT systems as in the other 11 Asian countries where we’re pres-ent. This gives the highest level of operational reliability together with the group’s finance department and enables optimal support from the head office whenever this is required,” Larsen says.

Teamwork”Our team here has been extremely dedicated and has solved the requisite

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N E W D E L H I

M a d r a s( C h e n n a i )

B a n g a l o r e

B o m b ay( M u m b a i )

D e l h i

tasks,” says Michael Carstensen. ”It’s simply been teamwork in the best pos-sible sense of the word, and everyone has made a huge effort in their offices – over and above their daily tasks.”Lars Nielsen has been appointed Busi-ness Development Manager in Delhi, as have Martin Roos and Christian Høgh Andersen in Bangalore and Chennai, respectively.”The support they’ve provided, to-gether with the local teams, has been essential for enabling us to do what we did”, says Carstensen, who has also received invaluable support from Rajesh Seshadri, his Indian CFO.”Society is incredibly complex here, and sometimes also quite bureaucrat-ic. Opening a bank account requires signatures on 15 different documents, and I’ve had to give out 20 passport photos for all kinds of registration purposes. Rajesh has sternly managed the processes and been indispens-able – and the accounts department has done a thorough job” Carstensen states.

PainlessEven with the thorough preparations, the director in India encountered a few surprises when the operations finally kicked off. ”We have some-what differing perceptions of the word deadline, and today we can look back with pride and joy at the rather painless initial period when we actu-ally succeeded in handling the goods under extremely difficult conditions - without phones, for instance,” Mi-chael Carstensen concludes, thinking kindly of the gods.

A Hindu priest gives managing director Michael Carstensen, Mumbai, a blessing - and the gods listened. After only the first month, DSV’s business in India was 50 percent above budget.

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With the takeover of Dutch Frans Maas in April 2006, DSV became one of the world’s top logistics operators overnight. Earlier, turnover hovered around EUR 150 million but now the figure is heading for half a billion Euro – and the expertise and professionalism is up a notch, which means that DSV’s client base today counts some of the world’s largest and most chal-lenging accounts: Xerox, Sun Microsystems, General Electric, Nissan, Océ and Volvo, to name a few. And all of our custom-ers expect us to continuously optimise and adapt our services to the latest standards within IT and technical solutions at our warehouses. They also demand ever higher quality, greater ac-curacy, more flexibility and better service – at a lower cost.”We are currently reviewing our activities and procedures, primarily to please our customers and reduce their costs – and then to improve our profitability,” says Director Meinderdjan Botman, who headed the Development & Engineering Depart-ment in Moerdijk, the Netherlands, since the establishment of an independent logistics division in April 2005.

Operational experienceThe department has 26 employees, all of whom have great

operational experience. Eleven work on software development and process analysis and fifteen work as project managers and logistics engineers. The staff work in teams and often in close collaboration with operational staff so they can continuously develop and adjust the systems to match the tasks at hand.”We owe our success to the fact that our employees, the sys-tem developers and the practitioners, work together on a daily basis. This increases their interaction which is reflected in our solutions that are based in practice and user-friendly,” Botman says, who has hand-picked most of his employees during his eight years with the division. ”Today, we’re running projects in more than ten European countries - and often several proj-ects in each country, so it’s quite rare to see everyone in the office at the same time,” he states.

Task forceThe Development & Engineering Department is not necessari-ly involved every time a new logistics client is implemented in the operations. The department is a task force which is brought in when large projects require innovation and for large-scale

In the pursuit

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A task force of 2� top-professional logistics experts is on a mission: to develop the world’s best logistics so-lutions based on knowledge and in-novation. No knowledge must be lost – and there’s only way for the costs to go: down.

tendering procedures where outright commercial teams are set up to develop new systems and facilities. And the department is also active when current tasks require an overhaul – if a problem of some sort arises, for instance, or if a location turns out to be unprofitable. ”We don’t have to start from scratch every time. Our work is mainly based on documented solutions that need to be adjusted to a given task. Before we start working on a larger project, we always present a project plan to the customer. But it is never complete. We always leave about 20 percent open for pragmatic solutions that we invent after project launch. Defining the job to the full from the outset would be a wasted effort – changes will always be made along the way,” says Botman, indicat-ing that customer requirements also vary considerably. Large international accounts often request more project management documentation than small companies.

Driving down the costsThe duration of the tasks also varies

greatly. When the Development & Engineering Department moves in, it can take from a week to a year before a task is resolved. The long-term projects typically involve construction work, like a current project in the Netherlands where the department is helping to develop a fireproof warehouse by low-ering the oxygen level from the normal 20 percent to 16–17 percent. The previ-ous warehouse burnt down, resulting in a tremendous claim for damages as the fire raged for four days despite the sprinkler system which was dousing the flames with water. The only problem was that the water could not penetrate the cocoa powder in the warehouse, which burnt from the inside out, so to speak. ”The oxygen-depleted environment would never allow a fire to catch on, but the authorities are reluctant to approve the solution as they have never seen it before,” Botman asserts, who always keep both feet on the ground when developing new concepts and solutions. Because even though the customers expect expertise and a first-rate job,

of reliable knowledge

the costs must be rock-bottom, because otherwise you lose them as customers.”There are two methods: either lower the price and lose your profit or change the concept to drive your costs as far down as possible. We opt for the latter.”

PartnerThe Development & Engineering De-partment also provides external consul-tancy to companies and other logistics suppliers, though most of their time is spent on performing tasks for clients within the DSV organisation, such as customers of the former Frans Maas or-ganisation and the former DFDS Trans-port Solutions – and the department has also been charged with implementing and developing the company’s stock control systems. ”Previously, our customers regarded us as a supplier; as part of the warehouse or procurement function. Today, most think of us as a partner. Transport and stock control are of huge strategic importance, so the supply chain is abso-lutely a decisive parameter,” according to Meinderdjan Botman.

Director Meinderdjan Botman in front of his task force. ”Transport and stock control are of huge strategic impor-tance,” he says.

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Monica Fredriksson of Borås, Sweden, is the only woman

among eleven area managers at DSV Road in Sweden:

“Naturally, I would like to see more women, also at the

executive level.”

are more attentive

When Monica Fredriksson invited her Kiev clients out to dinner, she was met with confused mumbling. She had just been negotiating with the men, but now they discussed if it was alright to be asked out to a dinner by a woman. They came round eventually but couldn’t resist com-menting: “It’s a bit embarrassing,” one of the men said when the bill arrived.Fredriksson laughs at the incident. She is getting used to some people reacting to the fact she is both a woman and a senior manager. Perhaps this is why she would like to see more women among the executives.“I think it could give a better balance,” she says.

ChallengeShe personally does not see anything un-usual in being a women and an executive. “But when I started out as a transport manager, it was sometimes a bit tedious. People would often ignore me at meet-ings, but now they’ve seen that I’m quali-fied and I feel accepted.”She thinks that a woman holding a senior position has to be slightly better prepared than her male counterparts.“As a woman you have to prove your worth. A man finds it easier to take on a challenge, whereas we women are constantly in doubt: Can I manage it? I’ve never been afraid of a male-dominated world. You have to jump at the chance when it’s there.”She likes being the boss.“I like having to come up with differ-ent solutions and having the skills to do so. That’s my challenge: Doing my job well!”

Fine balanceHer workplace is not male-dominated as such. There are actually lots of women forwarding agents, she explains.“Ideally, a workplace should have an equal distribution between the sexes, in my opinion. Naturally, I would like to see more women, also at executive level! I think that we women are more attentive and if there were more of us, the interpersonal communications would become more open and generate better results,” she says.

Joined by accidentShe has been in the industry since she was 17, making it 33 years so far.Back then, in 1973, she was in upper secondary school but was fed up with it. She was attracted by an ad from the transport company ASG which was looking for office staff with language and typing skills, and as soon she gradu-ated, she joined the transport industry.“I never thought I would stay on this long! But I’m enjoying it and learning something new all the time. I have a thirst for knowledge and keep wanting to move on.” She went from being an assistant to a forwarding agent and ended up as trans-port manager. Last autumn, she became area manager for the Baltic region/CIS (republics of the former Soviet Union). She is responsible for the offices in Stockholm and Borås with 18 employees and travels around Sweden at least once a year to visit most of the sales team and present the business area. She also trav-els to Eastern Europe quite frequently.

Develops transportsIn addition to the Baltic States, Russia, Belarus and Ukraine, she often visits countries like Moldova, Kazakhstan and Kaliningrad.“This is an incredibly exciting, devel-oping area.” The transports across the country borders involve commodities such as clothes and wood (for Sweden) and fit-tings and steel (for the Baltic States).“We run fully loaded trailers, bulk shipments and parcels. Fifty-four percent of the total number of ship-ments are parcels and partial loads up to 2,500 kilos by volume weight. This requires great knowledge of cargo planning and routing.”Fredriksson is currently working on establishing a direct line between Kiev and Sweden.“It would be a completely new route for DSV Road in Sweden, and I con-sider it a great challenge!”

Recharging in natureIt is not a nine to five job. She often turns to the outdoors to clean out all her thoughts about work. A couple of days each week she goes to the stable with her own horses, Cherie and Chanel, to ride into the woods or train the horses. Other times, she goes for a spin on her motorcycle, her other passion.“I love being outdoors! It gives you a sense of freedom! I let go of all my thoughts about work and clean out all the cobwebs – and then I actually often get some good ideas for work,” she says.

Women

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Monica Fredriksson, the only female boss at DSV Road in Swe-den, finds that her horses serve as an important contrast to her managerial position.

Name: Monica Fredriksson, age 50 Lives in: Borås, southern Sweden.Family: Her children Bill, 18, and David, 15. Her dog Fanny and horses Cherie and Chanel.Function: Only woman among a total of eleven area managers. Women are also absent from the ranks of site managers, regional managers and the management group.Recent developments: New area manager for the Baltic States/CIS since November.Leisure: Her animals, the outdoors and her bike. Has driven a motorcycle from Sweden to the Mediterranean twice. “It gave a taste for more and a sore bottom”.

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Every year, 400 polluting vehicles are replaced in DSV’s Swedish truck fleet. The oldest EURO 0 engines have been removed from daily operations and replaced by the latest EURO 4 and 5 engines which generate less than a twentieth of the pollution roughly speaking. Now, the Swedish management is in the process of phasing out the EURO 1 lorries and even though vehicle replacement is one of the costliest environmental options, there is no going back in the industrial country of Sweden where en-vironmentally responsible transport is demanded by more and more customers – who also make some of the world’s toughest demands for quality assurance. Being a green transport company with the latest environmental and ISO certifications may appear both expensive and trouble-some. However, the Swedish management has discovered that the money invested in environmental measures often pays for itself. Large volumes combined with high capac-ity utilisation of the lorries improve profitability, and high quality throughout the transport chain means fewer errors that may be costly to fix. “There are several large, international manufacturing in-dustries in Sweden, and these companies simply demand that we adhere to the strictest environmental requirements and quality controls,” according to managing director Henrik Holm, DSV AB. He cites ABB Robotics (a Swed-ish car and lorry manufacturer) and Tetra Pak as examples of industries and companies where environmental certi-fication 14 001 is a minimum requirement and for whom process optimisation and error remedying are integral parts of the transport service.

Environmental surchargeAll invoices from DSV AB in Sweden include an envi-ronmental surcharge of 0.6 %; money which the company has earmarked for environmental improvements. The

Environmental thinking is both common sense and good business – and some-thing they are good at in Sweden. Not because saving the world is higher on the agenda of the Swedish management than in other DSV countries, but because the Swedish customers demand it.

Progress in Sweden

DSV in Sweden passes on the environ-mental bill to the customers who in turn receive green accounts indicating the en-vironmental impact of the transports. This photo shows chainsaws on the production line at Husqvarna.

- that benefits the environment

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actual use of the money is specified in the green accounts. Examples include support for hauliers who want to replace their old lorry with a new EURO 5 vehicle or an in-vestment in green energy. Thus, 25 percent of the electricity used by DSV AB must de-rive from renewable energy sources, mainly wind turbines and hydroelectric plants OR wind power and hydropower.”Actually, the customers are pleased with the environmental surcharge because it helps them to achieve their own goals,” Holm says, who spends some of the money on preparing green accounts which are in-creasingly in demand by transport custom-ers. Thus, DSV AB draws up a total of 250 individual green accounts for the customers’ specific environmental impact, compared to only four three years ago.

Rail transportIntegrating the use of sea and rail transport also contributes to reducing the annual CO2 emissions wherever it is possible. Today, DSV in Sweden runs their “own” train between Eskilstuna and Malmö and also uses the rail connections be-tween Malmö – Duisburg – Travemünde, Mannheim, Basel, etc. Rail transport is also used between Lübeck and Verona, and there is a direct line from Malmö, Sweden, to Busto, Italy. Sweden is also negotiating a rail connection between Rostock, Germany, and Krems, Austria, as well as between Lübeck, Germany, and Rotterdam, the Netherlands. Domestic transports in Swe-den mainly go by train to/from Stockholm and Norrland. The rule of thumb is that the transport route should be at least 500–600 kilometres for rail transport to be viable. Henrik Holm mentions the daily departure from Sweden’s Scania Province to Germany as an example of sea transport. This spares Denmark’s island of Zealand more than 400 trailers on its roads – every day!”We have set clear goals for reducing CO2 emissions by optimising vehicle loads and optimising the use of alternative modes of transport,” says Holm, who witnesses an annual growth increase of EUR 5.5–6.6 million with 4,000 vehicles on the Swed-ish roads on a daily basis. Of course, this increases the overall CO2 emissions from the company but, on the other hand, the larger volumes involve a more efficient and environmentally friendly mode of transport. The company reports on this annually with a detailed specification of goals and emis-sions in an environmental report available at the corporate website.

Prior to 2003, DFDS Transport in Sweden mainly consisted of Fraktarna and NTS. Though the companies had merged on paper and had had the same owner for four years, all functions were still being duplicated: directors, staff, site managers, bookkeepers, etc. The past had dealt hard blows in a market of cutthroat competition, and even with the same owner, the competitive mental-ity prevailed. Until Henrik Holm took charge in January 2002, that is.”We physically merged Fraktarna and NTS and reduced the number of of-fices from 70 to 35 – within a year!” says Holm, who had learnt to “do things quickly” from his time in DSV.”Much had been lost in the preceding four years as nobody had made deci-sions for the future. Everyone was waiting to see what would happen,” Holm says. He reaped great gains from amalgamating offices and developing cross sales among the companies that used to fight each other and would rather give a domestic transport to a competitor than to the family member.

Growth begets growth Today, the number of DSV offices in Sweden has been reduced from 70 to 26, and staff has been cut back by some 100 to the current 1,400 employ-ees. Conversely, turnover has increased from EUR 374 in 2001 to EUR 682 in 2006, and profits are up from EUR 5.5 million to EUR 23.2 million in a market which the Swedish manager assesses to be twice that of Denmark or Norway. ”Sweden has enormous develop-ment potential. Our largest customer [Volvo, - ed.] has a transport turnover of EUR 880 million (of which DSV accounts for EUR 60 million). There are also lots of customers with annual transport turnovers in excess of EUR 11 billion! Although we are up against tough competition from the world’s largest transport companies, we an-ticipate continued growth - and focus on our bottom line,” says Holm, who points out that further growth in Swe-den will generate growth in the DSV countries that trade with Sweden. Out of an annual turnover of EUR 561 million in the Road Division, 75 per-cent of the transports are international, and increased volumes in this area give colleagues a better opportunity to sell Sweden. ”In so doing, we generate growth in the other countries,” Holm concludes.

Reducing the offices by half - doubling the turnover

When Henrik Holm became managing director of the then DFDS Transport in Sweden in January 2002, it was time to synergise – and fast.

Sweden is home to companies with transport turnovers in excess of EUR 100 million and this is a sound basis for further growth, according to managing director Henrik Holm, DSV AB.

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From 2007, DSV will handle all of Plastkretsen’s transports from northern Sweden to the recycling facility in Premnitz near Berlin, Germany. “It was important for us to get a good, turnkey solution. Plastkretsen is a recycling company, and when DSV offered a concept which minimises the environmental impact and gives a good transport economy at the same time, we selected DSV to handle our transports to and from Norrland,” says Lars Stark, head of logistics for Plastkretsen.

Environmental concernsJimmy Bergflod is a DSV sales rep with responsibility for large accounts. He tells us that customers are increas-ingly considering the environmental impact when choosing a supplier. “Our customers have become consid-erably more environmentally aware over the past three years. As a sales rep, it’s my job to find a complete solution which takes the customers’ requirements for price, quality and environment into account,” Bergflod says, adding that the solution for Plast-kretsen involved adjusting the loading times. DSV usually picks up goods within one or two days. The loading times have been extended for Plastkretsen, which means that the chances of find-ing a DSV vehicle driving to or from

Trailers by rail – a successful combination

a place near the loading site increase considerably. “This is economically sound for both DSV and Plastkretsen, but the big winner is the environment because we avoid unnecessary empty runs,” Bergflod says. DSV picks up recycled plastic in six Swedish cities: Gävle, Borlänge, Hudiksvall, Östersund, Umeå and Luleå. The trailers are driven to the nearest combi terminal and transported by rail to Trelleborg from where they travel by ferry to Rostock, Germany. The trailers are transported by road on the short stretch between Rostock and Premnitz. ”You can’t offer combined rail and trailer transport there,” Stark says. “Combi transports are usually only profitable over longer distances.”

Less harmful to the environmentClaes Meijer of DSV, business area manager for Italy, Austria, Spain and Portugal, verifies that transport dis-tance is important. “Italy has always had combi transport, but the volumes have increased consid-erably in recent years. All modern companies have an environmental policy. Environmental considerations increasingly have a say in transport solutions. And there is no doubt that the environment suffers less when a trailer is loaded onto a railway car and

transported 1500 kilometres than when it is pulled by a lorry,” says Meijer, who believes that the combi transports also benefit DSV. A trailer transported by rail may carry 28 tonnes, whereas the limit is 24 tonnes for road transport. Rail trans-port has also become more advanta-geous financially. “Railway operators have made a great effort to come up with solutions that are more interesting to us, and the costs of road transport have risen sharply. Not least due to all the road taxes. The EU’s new working hour regulations are another factor,” Meijer states, but also sees limitations to the potential of combi transports. One reason is that it is difficult to make transports of parcels/partial loads profitable when you pick up and deliver small cargo loads at several different sites. This is an area where the vehicles’ flexibility outweighs the train’s benefits.

Facts about PlastkretsenThe background for Plastkretsen’s business is that the industry has been required to collect and recycle its own packaging materials since 1994. Plastkretsen is responsible for collect-ing and recycling plastic packaging. Seventy percent of all plastic packag-ing must be collected, at least 30 % of

When DSV collects recycled plastic in central Sweden, we only

transport it a single kilometre by road – the stretch from the load-

ing site to the combi terminal.

The trailers are transported by rail for the rest of the way to Ger-

many. “You can’t be much more environmentally efficient that

that,” says Lars Stark, head of logistics for Plastkretsen.

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Trailers by rail – a successful combination It is important to

recycle plastics. Plastic is made of

oil and one kilo of plastic contains

the same energy as one litre of heating

fuel.Collected plastic

items are for instance used for

pipes, furniture and building

materials.

This year, DSV’s combi transports for Plastkretsen from northern Sweden to Germany are expected to generate 13 tonnes of carbon dioxide. If the transport took place by road instead, the carbon emissions would have been 195 tonnes.

When DSV loads plastic waste on railway cars, carbon emissions are reduced by more than 90 % compared to road transport.

the material must be reused and energy must be recovered from the rest. Plastkretsen believes there is a Euro-pean market for plastic recycling.“Before materials are sent to final sort-ing, they have usually been presorted before being recycled. Plastkretsen’s objective is to only collaborate with fa-cilities that are furnished with automat-ed sorting and recycling processes, and we’ve achieved this objective. During the process, Plastkretsen first of all im-proved the working environment at our contractors, but we have also enhanced the recycling rate, which is increasing-ly higher at automated facilities than at manually operated plants. This means that Plastkretsen is close to achieving the targets set out in the packaging regulation,” Lars Stark says.

Tonnes of CO2generated bylorries.

Tonnes of CO2 generated by combi transports (lorry + rail).

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Since 2002, DSV has given donations to the danish Children’s

Cancer Foundation which saw its best results ever in 2006. The

money is spent on pampering the children and on research and

information.

DSV donates Christmas gift to help children with cancer

Most businesspeople can do without three bottles of good red wine at Christ-mas – particularly if this will help can-cer-stricken children. This is the idea behind DSV’s Christmas gift priorities: instead of giving to clients and contacts, DSV in Denmark has donated EUR 33,500 to the Danish Children’s Cancer Foundation for the fifth consecutive year. Since 1995, the Foundation has made life a little better for the 150 Danish children who develop cancer every year. The Foundation contributes to research in therapies, and the most notable result is that three out of four children now survive cancer. Only 40 years ago, a child diagnosed with can-cer would almost invariably die.”It’s not because of great advances in curing cancer in children. But thanks to close collaboration in Denmark, Scandinavia and internationally, we have become better and better at treat-ing cancer,” according to Henrik Hertz, Consultant Doctor, MD and chairman of the Children’s Cancer Foundation. Yet he also emphasises the large dif-ference in the success rates of treating various cancers in children who are normally stricken by entirely differ-ent types of cancer than adults, i.e. leukaemia, lymphatic cancer and brain tumours.

A mysteryIt remains a mystery why children – usually at the age of four or five – develop cancer. For the same reason, Hertz cannot offer any predictions about when all children will be cured of cancer. Or if research efforts will ever succeed in eliminating cancer in children entirely.

”If a child develops cancer, this is prob-ably the result of several unfortunate circumstances,” says Hertz. ”It’s possible that the child has to be predisposed already as a foetus. Then, the child must encounter a combination of other circumstances in the earliest stages of life; such as a period of re-duced immune capacity when the child is exposed to a certain virus, etc. As long as we don’t know what causes can-cer in children, it is virtually impossible to prevent it from occurring,” he says. Until they succeed, the Children’s Cancer Foundation contributes in three areas: research in therapies, information about children and cancer and finally by pampering the children and their families who are also deeply affected by anxiety, deprivation and long hospital stays.

Private researchThe public sector pays for the treatment of diseases, but much of the research is wholly dependent on private funding. Therefore, the Children’s Cancer Foun-dation is involved in different projects, such as planning the treatment of the individual child so as to avoid adverse effects. Another trial aims at placing more of the treatment in the child’s home monitored by nurse. ”It’s a great relief to families when

Sportscar Event is a charity event for the Children’s

Cancer Foundation. Owners of exotic sports cars get

together for these events for a few days a year to give

people an experience for life. You can buy a ticket for

one of the exquisite cars and then you get to be co-

driver for two laps. The earnings on the day – usually

around EUR 70,000 - go fully to the Foundation’s work.

This year, it will be held on 2 June at the Jyllandsringen

race track in Jutland, Denmark, before the event moves

to Roskilde on 10 June.

routine treatment can take place in the home. It’s important, not least to the cancer-stricken child’s brothers and sisters, that the family need not be in hospitals for long periods of time”, says Dr Hertz. Pampering the children involves things like the Children’s Cancer Foundation’s summer house which the cancer-stricken children and their families may use. The Foun-dation also typically gives about EUR 500 to each family with a cancer-stricken child who applies for aid.”This is money to brighten the life of the sick child and his or her family. Keeping a family together is a great problem when you have to live with such a serious disease,” Dr Hertz says. And then the Children’s Cancer Foun-dation organises family outings for the children. Among the activities in 2006 was a trip to a race track where the children drove super sports cars with famous race-car drivers behind the wheel.”These children display an incredible will to live and experience life. The at-mosphere is definitely not dismal in the cancer children’s hospital ward. They are all over the place with their IV racks, all unspoiled and natural … they handle it incredibly sensibly,” Henrik Hertz concludes.

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Sportscar Event gives the children and their families a breather from the harsh realities of everyday life.

20 moves

Customer Self Care – where clients have direct access to all

types of information online – was created in close dialogue with

DSV’s customers. The new strategy is the result of DSV’s devel-

opment from supplier of transports to supplier of services.

DSV creates unique position

When Gabriel Andersson, head of Customer IT Services at DSV, explains the objectives of step 1 in DSV’s new IT strategy, he draws a parallel to the situation in the banks a few years ago when many of us queued up for our turn with the teller who could provide us with some cash, tell us the balance on our account or transfer funds to the insurance company. Today, these trivial everyday tasks are handled electroni-cally and we check the movements and balance of our account online. We only meet our bank consultant in connection with loan conversions or other major transactions. ”Customer Self Care, as we call the new strategy, is the outcome of close collaboration between the business operations and IT. We want to provide our customers with interactive ac-cess to transport-related information. By automating the simple, recurrent questions, the operational staff frees up even more time to solve the difficult issues,” Andersson says.

Unique positionCustomer Self Care is developed by Business Process Owner Group Sales & Marketing, a key business develop-ment team at DSV. The unit is based on comprehensive analyses and interviews with customers on what they would need and require from a transport sup-plier in the future.”Previously, we focused only on transports, but a vast range of factors have turned transport purchases into “strategic procurement” with differ-ent demands for information flow and precision. The price used to be the only parameter to many in the past, and they saw little difference in buying trans-

ports from us or from another vendor. Today our customer approach focuses on delivering the goods on time and our ability to track the process. It’s visible, easy to understand and the customer can find the information on their own monitors”, says Rene Falch Olesen, deputy MD and chairman of Business Process Owner Group Sales & Marketing.

Same standard everywhereCRM (Customer Relationship Manage-ment) is the name of one of the build-ing blocks in the overall DSV objective for ”Customer Self Care”, which is all about providing the right information at the right time. To begin with, CRM will be introduced as a pilot project in the UK, Sweden, Denmark and some locations in the USA by mid-May. Eventually, the sys-tem will provide an insight in all the re-lationships between customer and DSV – across all divisions and in all coun-tries. ”The CRM system will become our library of all customer-related info. As a company, we have entered the category of “global player”, but it’s not just a question of a world-wide pres-ence. It is very much a question of our ability to service the needs of global customers, offering the same standard and quality throughout. Everything is fully transparent: aggregate turnover, customer statistics, information and re-ports, delivery precision, track & trace, etc. CRM helps us ensure that at a minimum we deliver what is required, expected and agreed with the customer at all levels,” Olesen says.

Just like LEGOCRM was not invented by the IT

people at DSV. The functionality is provided by the Salesforce.com com-pany and the basic idea underlying several of DSV’s coming IT solutions is that the individual products may be integrated with proprietary systems to rapidly generate new transport and logistics services:”Most of our energy used to be spent on developing our own systems. Today, it’s the exact opposite: We purchase standard components or subsidiary systems from different suppliers which we configure for our own use,” says

GabrielAndersson, Customer IT Services, who compares the processes to building with LEGO blocks: ”You take existing elements and combine them in new ways to make unique products, opening up new potential.” ”Today, it’s more about selecting part-ners with core competences in niche areas,” Gabriel Andersson concludes.

moves 21

DSV creates unique position

Rene Falch Olesen (Right) and Gabriel Andersson put the customer first with new IT solutions constructed like LEGO: You take the elements you need to create your own uniquebusiness model.

22 moves

Søren Skive from DSV in Sweden is no sissy. He’s got enough on his plate with a demanding job as Business Development Manager, usually involving at least twenty meetings a week from Malmö to Bottenviken, two small children and fairly high sports ambitions, which includes running one marathon a year. And “snivelling” is not a word that one would use to describe Søren. But when the inbox is crammed with 50 to 100 emails a day – even more on some days – his cup runneth over:”We operate with hysterical deadlines. With 100 daily emails, it’s impossible to avoid the occasional slip-up. We may miss a deadline and with a schedule that is already stretched to the limit, this is a stress factor for the entire organisation.”

Taken as a hostageSøren Skive gets many “Cc” emails, i.e. not really intended for him, but just something that his colleagues want Søren to check, too, and share responsibility for.”You’re not actually obliged to read through a long email cor-respondence when you’re just a Cc recipient. But there could be something important further down in the message,” he says.And then there are the ones who use emails to take hostages: ”I sent you an email about it, remember!” they might say. Or those who end their email with the words: ”Expecting to hear from you if you disagree.” Or: ”I take the liberty of regarding this to be agreed.” You have to react straightaway, because otherwise you’re stuck. You’ve been taken hostage by your own inbox.“That’s the worst. Because you have to react, even though you actually have more important things to do,” Skive says, adding: ”There are also far too many “nice to know” emails and queries about this and that. Why can’t people just call and get the infor-mation they need?”

Wasted working timePerhaps it doesn’t have to be like this at all. One thing is certain: Søren is far from the only one who feels that his email inbox takes up a lot more time than necessary. So we presented Søren’s statements to linguistics experts Susanne Nonboe Jacob-sen and Ellen Bak Åndahl, who have published a manual called “Sheer Happiness or Sheer Stress?” about this very subject of sending efficient emails and the art of turning an inbox into something that helps you, instead of stressing you.”Many Cc mails are totally unnecessary. They’re an attempt to involve the boss in the correspondence to be on the safe side and to avoid taking the blame. But this results in lots of wasted working hours,” Åndahl says, to which Jacobsen adds:

”It can take quite some time to get acquainted with a case right from the start. A correspondence may involve ten emails and if you’re asked to share some of the responsibility – which Cc mails are actually seeking – you also have to study the matter properly.”

Email policyA company email policy might solve the problem. In any event, it would no longer be up to the individual employee to decide on a case-by-case basis whether to send a copy of the correspon-dence to the boss or a colleague who then may need an hour or more to study the matter. One routine to replace autopilot Cc’ing of long mail correspondence would be to pick up the phone and inform the colleague or summarise the issue in two lines at most.Another, and no less important, ingredient of an email policy is the use of subfolders. Often, you read mails and see a mes-sage that requires action – but which is not so important that it couldn’t wait a few hours. If a fixed system for handling this type of email has not been established, things could easily go wrong.“Subfolders are paramount. Otherwise the an inbox turns into a chaotic mess which causes unnecessary stress,” says Jacobsen, explaining that having more than a hundred subfolders is not ex-traordinary, i.e. one for every client, one for “to do” email, one for “private email”, etc. And it’s important to avoid becoming enslaved by the electronic voice saying “You’ve got mail!”.

Three times a day“It is important for the company to set targets for how often employees should check their email – and for the employees to observe these rules. This could be morning, noon and before go-ing home. Otherwise you may experience that you did nothing all day but check your inbox,” she says.It’s equally important to reduce your replies – even though the send button is alluring.“Sometimes, Susanne and I sit at the office discussing whether to reply when someone ends a email with “.. and have a nice weekend.” We usually decide that it’s not important because we don’t want to pressure others during their working hours,” Ellen Bak Åndahl asserts. She and Susanne Nonboe Jacobsen give linguistic ideas for reducing the volume of emails in their book “Sheer Happiness or Sheer Stress?”: ”Many people write things that trigger new emails – and potentially turn it into a never-end-ing correspondence.”

We all know the feeling: your inbox is bursting with 56 unread mails and your hard disk – the one between your ears – is already close to overloading from the infor-mation continuously invading your mailbox. But it doesn’t have to be like this.

Stoptaking hostages

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Ellen BakÅndahl (Left)and Susanne

Nonboe Jacobsen of the Danish

language consul-tancy firm “Sprog-kontoret” organise

language courses and courses on

efficient email use: “Subfolders are

paramount,”they say.

taking hostages

“It’s important to avoid pres-suring each other,” according

to Business Development Man-ager Søren Skive, who would

like to receive far fewer emails.

Efficient email

1 Always consider whether the email is the right communication medium - and if you it’s always necessary to reply to an email with another email

2 Don’t waste people’s time with many Cc mails

3 Keep your email boxes tidy

4 Check your inbox daily – preferably at fixed times

5 Avoid becoming dependent

6 Remember to set up an auto reply when you’re not present

7 Refer to a colleague in your auto reply

More information in Danish at sprogkontoret.dk

2� moves

Publisher: DSV A/S.Editor-in-chief: Mads Wedderkopp. Please send suggestions for content to mads.wedderkopp@dsv.dk, tel: +45 43 20 37 66Photos: Görgen Persson, Søren Jensen, Bengt Öberg, Anette Markert, Johan Wingborg. Jesper Grønne.Layout: Jacob Thesander. Translation: ad Astra Translators. Printed by: Scanprint.

”Safmarine Mulanje” has been giv-en her name, and godmother Vibeke Larsen (red coat) is flanked by Kurt K. Larsen and Captain Cameron Mackenzie. From left: Mr Hwang, Senior Executive Vice President, Hyundai Heavy Industries, Chief Engineer Colin Smith and Ms Hwang. Far right: Rudi Labeau, Sales and Marketing Executive, Safmarine Container Lines.

Kurt K. Larsen’s wife, Vibeke Larsen, was the

godmother when Safmarine named the ship-

ping company’s tenth container ship. Several

DSV employees took part in the ceremony in

South Korea.

Godmother Vibeke Larsen swung the champagne bottle firmly into the side of ”Mulanje” with the bubbly foam flowing down the huge container vessel. Minutes before, Vibeke Larsen used a silver-plated hammer to set off a large fireworks and release a cascade of balloons over “Saf-marine Mulanje”, named after Mulanje, a 3,000 metre high mountain in southern Malawi.

New vesselsThus the scene was set for a memorable ceremony for Safmarine which launched an ambitious programme in 2002 to enlarge the fleet with new vessels. The South African-based shipping company plans to receive an additional nine vessels from shipyards in South Korea and Ger-many over the next two years, which will bring the company’s fleet up to no less

than 19 ships by late 2008. Safmarine, which recently celebrated its 60th anniver-sary, transports a total of some 1.5 TEUs annually and operates some 50 ships (both container and universal). ”Mulanje”, is 292 metres long and carries 4154 TEU. It was deployed in Safmarine’s fleet on Valentine’s Day, 14 February.

More businessIt is a great experience to name a ship like ”Mulanje”. The honour usually befalls the wife of the top executive of the compa-ny’s largest and most loyal business part-ners - in this case Vibeke Larsen, wife of Kurt K. Larsen, DSV. Safmarine and DSV have worked together on cargo transports from various destinations in the Far East to the west coast of the US since 2001. Last year, the business was expanded with shipments from Far East destinations to

Europe, traffic that will grow rapidly in the years ahead.

The world’s largest shipyardThe naming ceremony took place at the Hyundai Heavy Industries shipyard in Ulsan, South Korea, where ”Mu-lanje” was constructed. Hyundai Heavy Industries is the world’s largest shipyard, holding 15 percent of the world market. The company occupies no less than four kilometres of coastline at Mipo Bay in Ulsan and has nine large-scale dry docks and six huge Goliath Cranes.In addition to Kurt and Vibeke, DSV was represented at the ceremony by Kurt’s mother, Agathe Margrethe, one of his daughters, Pernille, and Jørgen Møller and wife from the USA, Carsten Trolle and wife, also from the USA, and Peter Minor and wife from Hong Kong.

I name you

Mulanje