No. 2 2008

This is where our new headquarters will crop up

2 m o v e s

It is with great pleasure that I’m looking for-ward to the fact that Denmark – like Sweden, Finland and the Netherlands (on a trial basis) – will be introducing long combination vehicles or modular road trains (the so-called modular concept) by the end of this year. Although only a three-year trial scheme, I am still convinced that, in the light of the latest political deci-sion to expand the trial (which means that even more ports and transport centres will be included) the outcome will be positive and will probably allow the modular concept to become a reality on the Danish roads as soon as they have been readied for the 25.25m long vehicles.

To all parties, the advantages are obvious: the transport companies which will in future haul 50 percent more with the same truck: the consumers who will get cheaper transports and safer roads, and the environment which will benefit from less fuel consumption (33 percent less, on average for the same cargo volume) and consequently lower carbon emissions, for instance. In this connection, the modular concept is a windfall for the transport industry, embodying the answers to two of the hottestissues of today: the lack of drivers and the expec-tation that the industry will react proactively to the emission of dangerous substances to the atmosphere.

The modular concept will lend progress to the industry, not least in the environmental area, which would have taken years to achieve with conventional lorries. This is not the first time that the transport industry solves the problems themselves before a possible political interven-tion. Nor is it the first time that new challenges – global warming in this case – lead to new solutions which prove beneficial to the industry while also solving the problem. Consider the rising oil prices, for instance. What has this actually meant to the transport business? At any rate that we’re now organising our transports far more professionally than 20 years ago when no one was bothered about empty or half-empty lorries returning from their destinations, because there was no financial incentive to intervene. Things have changed, because now the margins are the difference between success and failure. The difference between whether the vehicles can be loaded more optimally and traf-fic planned to reduce empty runs and distances travelled to an absolute minimum. Perhaps

the best solution would be to transport cargo by rail some of the way? Perhaps the most optimal solution would be to politely decline a job and let another operator take over where our own network is insufficient?

I’ve just attended a meeting at the Society of Transport Economics in Copenhagen, atten-ded by politicians, researchers and business representatives. I told them that we’ve become wiser, more skilled and more careful in our planning because resources have become more expensive. We could never dream of asking for higher fees and taxes, but we must face up to the fact that fees, taxes and scarcity of resources – including a lack of drivers – have actually helped our business and improved our behaviour. Some in the industry also suffer from this. The small players have less clout to resist this trend, and fewer transports where they can optimise the packing. When they encounter market mechanisms of the kind we see today, they have often been forced to lay down their arms and leave the routes to the larger players – usually with the environment as a sure winner. Because “green transports” is very much a question of being better organised – and of course the possibilities made avail-able by technology, including the “modular concept” road trains.

These developments and all the ensuing obligations and new requirements have forced us to be become more efficient than ever, with the lowest price on transport ever, as well. So could we do it even better and at less cost? Yes, as a matter of fact I think we could. We’ve always risen to the challenges before us – and turned them into advantages for ourselves. And we shall continue to do so in the future.

Yours sincerelyKurt K. Larsen

Editorial

m o v e s 3

8

23

20

23

Russia in the EU

No, Russia is not about to join

the EU, but the Russian region

of Kaliningrad is surrounded

by the EU. DSV’s office in

Kaliningrad is going to get a

new transport centre which

will increase turnover fivefold

according to the captain on

the bridge.

From England

to Scotland

And from England to

Ireland. This is what

the future holds for the

company in the UK after

DSV acquired Roadferry,

thus booking a ticket

for domestic freight in

Ireland and England.

Spot on

Martin Professional supplies the

lighting for the coming Olympic

Games in Beijing – and DSV handles

the transport. The Danish lighting

manufacturer is backstage when

international rock celebrities go

on tour.

4 m o v e s

m o v e s 5

As far as the eye can see, this empty farmland is waiting for municipal approval of the construc-tion of a transport and logistics centre cover-ing more than 100,000 m². The advantages are obvious: consolidating 24 locations into two mega-centres – one in Ringsted (future DSV headquarters), and one in Horsens – as well as five regional centres will synergise and optimise knowledge-sharing across the organisation. At the same time, the measure will save millions in costs and thousands of kilometres as freight will no longer have to be transported from the warehouses in Taastrup for further distribution from Brøndby.

Less vulnerable to fluctuations“After several large-scale mergers, we need a framework for setting up a common DSV culture, and we need to make better use of our terminals. Having larger units makes us less vulnerable to volume fluctuations,” explains Henrik Nielsen, Managing Director of DSV Air & Sea A/S. To which Brian Winther Almind, Managing Director of DSV Solutions A/S, adds:“Having 24 locations in a relatively small coun-try like Denmark is not efficient. It impedes uniformity and common values and it’s not in keeping with our corporate visions. Since 2006, we’ve intensified our interdivisional coopera-tion at every level, and we’ve worked to get a common corporate profile and to reap the

benefits and gains that go with it,” he says.

Divisionalisation has generated growthDSV is not in the process of getting rid of its tri-divisional structure – neither in Denmark nor anywhere else. It is still expedient, and the focus within the individual business areas has had a great impact on the favourable growth experienced by the company in recent years. On the other hand, DSV in Denmark has reached a point where it’s expedient to increase the inter-divisional collaboration.“In the past year, we’ve made an effort to re-establish a common platform after the split-up into three divisions,” says Johnny Holm Jensen, Managing Director of DSV Road A/S, and continues:“We’ve especially trimmed down our own busi-ness, and we’ve reached a point where solidar-ity prevails instead of a desire to focus only on one’s own defined area. We’re in a situation where obvious gains can be reaped by optimis-ing our teamwork.”

Cross-cutting product development“We’ll be gathering lots of different, creative people in the same building,” Henrik Nielsen says. “Instead of having to spend our time out on the motorway or the phone, we can get together to develop products face to face. This will in-volve a high degree of knowledge-sharing across

ByconstructingDSV’slargesttransportandlogisticscentreintheworldincentralZealand,Denmark,DSVwillunitethreedivisionsataveritabletransportationsupermarket.TheconsolidationinZealand–mirroredbyasimilarprocesswestoftheGreatBelt–willimpacttheGroup’sfuturegrowth.

Henrik Nielsen (left), Johnny Holm Jensen and Brian Winther Almind (seated) look forward to turbo-charging the interdivisional teamwork on DSV’s 100,000 m² platform. Here, the three get a feel for the lie of the land: a field in Ringsted.

Moving into the country and sowing the seeds of growth

Continued on page 6

6 m o v e s

the divisions. We’ve had lots of fine solutions that have actual paralleled each other at the 24 lo-cations. But this reorganisation will enable us to shuffle the deck and enhance our knowledge of each other’s business areas – and make better use of all our good ideas,” predicts Henrik Nielsen.

Lots of synergyThe more tangible benefits worth mentioning include the obvious cost savings resulting from consolidating administration, canteen, insu-rance premiums, maintenance, custodian staff, cleaning, printed matter, fork trucks, telephony and IT, but also fewer pallet transports, shuttling costs between terminals and lost production and driving time. Add to that the staff-related gains in the form of training and related transport costs, as well as optimising the use of management resources.“We’re getting a chance to field the strongest team in the industry by moving from twenty-four locations to seven. We hope and believe that we can exploit the possibility of continuing to strengthen the company while enhancing each individual’s career possibilities at the same time,” says Johnny Holm Jensen, adding,“It’s important for us to emphasise that no one will be made redundant in this process. Quite the contrary, the synergy we will achieve will contribute to our continued ability to grow. The teams are made and we very much want to retain the people we have today.”

Informed from the outsetIt still needs to be decided who will be the first to relocate to the new transport and logistics centre in Ringsted. For the time being, a new local urban development plan for the newly acquired grounds (400,000 m²) is required for approving the previous farmland for commercial develop-ment. The construction project is not expected to be able to start until 2009. Even so, employees throughout the Danish organisation have been kept up to date continuously from the outset.“We know this will affect some of the employees in terms of transportation,” says Brian Winther Almind.

“We’ve analysed our employees’ transportation needs, and some of our employees, like those living in North Zealand, will have a somewhat longer commute. That’s why we chosen to announce the move as early as possible to nip rumours and discontent in the bud,” he says. Similarly, many employees west of the Great Belt will also have a longer commute.“This will unavoidably pose a number of chal-lenges,” Henrik Nielsen says. “On the other hand, we’ve already introduced guided tours in Horsens where some of the tour guides are employees who have experienced being transferred to Horsens from Padborg or Herning. It’s important for us to spotlight the many possibilities that make Horsens inviting and attractive – not least in a career perspec-tive,” he says, explaining that the new 21,000 m² in Horsens will be a ‘nice and orderly’ building complex with lots of new facilities. A complex that is also intended to inspire the forthcoming headquarters and “transport super-market” in Ringsted.

Military precisionAccording to Johnny Holm Jensen, all com-munications revolve around implementing the “Plan for Denmark” with military preci-sion where all announcements and dates are discussed and approved by the 18-strong joint Strategic Management Group (SMG) represent-ing the three divisions and the Group. Each of the 24 locations has been visited by at least one of the three executives who have explained everything there was to know with honesty and candour – and diligently answered every ques-tion posed by employees.“It’s been a tremendously positive process where those of us in the management have com-pletely agreed about our intentions, aims and strategy. I think this has been decisive in ensur-ing that the announcements have been favour-ably received by the employees. We’re under the impression that they’re looking forward to the new opportunities – even though it means a longer commute for some of them,” Johnny Holm Jensen says.

Continued from page 5

m o v e s 7

Withinfiveyears,DSVwillconsolidateitslocationsinDenmarkintotwotrans-portandlogisticscentresinRingstedandHorsensrespectively,andatfiveregionalcentres:Aalborg,Århus,Esbjerg,PadborgandOdense.

The Plan for Denmark

Jutland: TheactivitiesinSønder-borg,Billund,HerningandÅrhus(exceptfortheProj-ectDivision,however)willberelocatedtoHorsens;thiswillinvolveatotalof180employees,primarilyfromtheAir&SeaDivi-sion.Inthisconjunction,theHorsenslocationwillbeexpandedby21,000m2,dispersedoverofficeandterminalfacilitiesandcold-storeanddeep-storefacili-ties,whichareexpectedtobereadyforoccupancyin2009–2010.ThiswillbringthetotalfloorspaceatDSV’stransportandlogisticscentreinHorsensupmorethan75,000m2.Withinthissametime-frame,theterminalactivi-tiesinPadborg,OverJerstal,Hammelev,TaulovandHerningwillbegradu-allyrelocatedtoHorsens–whichwillbefurtherenlargedasaresult.Støv-ringAutotransportwillbetransferredtotheAalborgofficethisyear.

Zealand: DSVwillestablishanewplatform,includingtheheadoffice,atthenewlyacquiredproperty(400,000m2)outsideRingstedincentralZealand.Theestablishmentofthelargetransportandlogisticcentre(>100,000m2)willmeanthatallotherZealandlocationswillberelocatedtoRingsted,anongoingprocessthatisexpectedtooccurfrom2010to2013.ItremainstobedecidedwhowillbethefirsttomovetoRingsted,withits20,000m2ofoffices,20,000m2ofterminalfacilities(Road),55,000m2oflogisticsfacilities(Solutions)and2,500m2ofvehiclewashandworkshopfacilities.In2013,thecentreisexpec-tedtoaccommodatearound1,400dailyarrivalsoftrucksandpassengercarsandsome1,100employees.

8 m o v e s

concept for the Beijing Olympics. That DSV knows what we need and understands that this order is tremendously important to us.” Martin Professional’s contact is Claus Schrøder, Global Key Account Manager of DSV Air & Sea A/S.”You can’t help being excited when it’s about illuminating the Olympic Games in China. Everything simply needs to work flawlessly there,” says Claus Schrøder, who shipped off four containers fully loaded with lighting equipment by sea to China in March. Further air transports will follow.

Destined for the wrong portGetting the goods there on time is one thing, but getting them to the right place is equally important. And things almost went askew with the first shipment to Beijing’s Olympic Village, when Martin Professional – logically – ordered the lighting equipment to arrive to the port near Beijing Olympic Village. How-ever, the shipment was ordered by a company located in the south of China, so this is where the goods must arrive and be declared.”It may seem illogical to ship the goods to a city several hundred kilometres south of Beijing, which is the final destination. But this is no different than the customs rules that existed in Europe before the European Union. It was just lucky that we found out that the containers were going to the wrong port, because we ran the risk of not getting them released in time to test all the equip-ment,” Schrøder says. Schrøder happened to be in China and at a meeting with Martin Professional in Hong Kong he overhead by pure chance that the equipment was destined for the wrong port.”No novice to the Chinese market would have been taken aback by the fact that the containers were headed towards Beijing, where the equipment will be used. But we’re familiar with the problem of hav-

ing to declare the goods at the location of the distributor. Then the containers have to be transported to Beijing afterwards,” says Schrøder. Peter Hanghøj adds:”Things happened really fast all of a sudden. The Chinese wanted the lighting here and now and it was incredibly lucky that Claus had found out that the containers were on their way to the wrong port,” he says.

From the Rolling Stonesto the OlympicsMartin Professional has experience from a broad range of clients where precision of delivery is crucial for the success. The list includes names like Madonna, the Roll-ing Stones, Bon Jovi and Genesis, but also internationally renowned and extraordinary buildings, shopping centres and TV concepts are lit by Martin Professional, which also – through a customer – supplied light for the Olympic Games in Athens. Even so, the Beijing Olympics are the company’s single largest order and perhaps the most important ever:”The Olympics is an important showcase for us. Chinese buying power is increasing day by day, and Chinese consumers are keen on quality. This is our window for demonstrat-ing to the Chinese and the rest of the world that we can deliver large lighting concepts of superb quality,” says Peter Hanghøj and explains the difference between a MAC 2000 and a common 1200 watt spotlight to the unwitting reporter: ”Our light creates emotions and moods using features like colour and rotation, for instance. All light is controlled via a console programmed to create exactly the experience you wish to convey,” says Peter Hanghøj, who is not inclined to give us any clue as to the mood to be cast over the world’s 29th Olympic Games at the Olympic Village from 8–24 August 2008.

When China powers up the world’s most spectacular sports event as host

of the Olympic Games, Martin Professional will be supplying the lamps

– and DSV will deliver the goods.

1.2 million watts. This is the lighting capacity ordered by Beijing’s Olympic Village from Martin Professional, one of the world’s lead-ing providers of professional stage lighting, based in Aarhus, Denmark, with production facilities in China, Denmark (Frederikshavn) and the UK and storage facilities at DSV in Venlo, the Netherlands. The impressive amount of lighting will be provided by 650 of Martin Professional’s ”technology flagships”, Mac 2000 and 350 Mac 2000 XB which is a further development of the 2000 model. This will be supplemented by IT equipment for the light show setup used for the opening and closing ceremonies and other events at the Beijing National Stadium, dubbed “the Bird’s Nest”, which seats 91,000 spectators.”This is one of the largest single orders ever for Martin Professional, and for the XB it will be a baptism of fire”, says Peter Hanghøj, Customer Care Manager of Martin Professional, who can barely wait until August: ”We’ll be lighting up the entire stadium during the entire ceremony which will be broadcast to billions of viewers. It can’t get much bigger, really…”

Crossing all the t’s Martin Professional has chosen its longstand-ing transport partner, DSV, to handle the transport to China, which will involve all three divisions, Road, Solutions and Air & Sea. And the company had no qualms about putting all its eggs in one basket:“On the contrary! It makes us feel safer that we only have one partner and one contact person, who has even been to a meeting in Hong Kong with our company there,” says Peter Hanghøj. ”This order also reflects the extensive colla-boration we have with DSV world-wide. It’s important to us that our service provider realises that this is about delivering a turnkey

Martin sheds lighton the Olympics

m o v e s 9

Martin Professional includes some of the world’s greatest rock and pop starts among its customers: The com-pany has provided lighting for the likes of Genesis, the Rolling Stones, Metallica and Madonna. Christina Aguilera is in the spotlight here,during her Back to Basics World Tour.

Sony Center, Potsdamer Platz, Berlin, Germany, is “luminous, not illuminated,” in the words of the architect behind it, Murphy/Jahn of Chicago. The Martin lamps were put up by professional climbers 50 metres above the ground. Martin sheds light

on the Olympics

10 m o v e s

Crosstradeisthedesignationthatappliestofreightorderedandpaidforinonecountryandtransportedbetweenothercountriesaltogether.ThenewbusinessareasawthelightofdayatDSVRoad,Sweden,andhasexceededallexpectations.

The seed for the Crosstrade business area was planted at the previous Frans Maas, which merged with DSV in the spring of 2006. Today, five employees are working with Crosstrade. “The demand is rising concurrent with Swed-ish companies’ relocation of production abroad, primarily to Eastern Europe,” says Lars Holmström, District Manager in Gothenburg with executive Cross-trade responsibility.

The network does the work“Our customers are solely comprised of Swedish companies,” explains Maths Karlsson, whose strongest sales argu-ment is DSV’s network of some 350 of-fices in 35 countries. Karlsson is Busi-ness Area Manager in Crosstrade where turnover exceeded budget expectations for the first year by 30 percent.“Our network makes it fast and easy to manage a shipment from, say, Paris to recipients in a dozen countries. Cross-trade is fun and educational for those of us who work with it. Our work is international and we make new contacts every day,” he says.

Making it easy for the customerIn brief, Crosstrade is a service where

the party ordering a shipment is lo-cated in one country, while the order itself involves the transport of goods from a different country to one or more other countries altogether. The goods never pass through the ordering party’s country, where all ordering, invoicing and payment takes place. “We take care of all contacts with the carriers in Europe. All the customer has to do is order the shipment from us, and we take over from there. We make it easy for the customer,” Maths Karlsson explains.

Rising needKay Kleinhans is head of DSV’s of-fice in Mettmann, outside Dusseldorf, Germany:“We started in the spring of 2002 when Volvo Penta became co-owner of Deutz, a German engine manufac-turer. Today, we store and distribute 750 to 800 engines a month,” Klein-hans says, and continues:“After receiving Volvo Penta’s order, we distribute engines throughout Europe and even pack the containers for delivery to Asia and South Africa. The prognoses we’ve received show that the transport need is expected to

rise by ten percent in 2008.”

Freight volumes not recorded The demand for Crosstrade surpassed expectations already the first year. The explanation of this big difference is that such a service is impossible with-out conducting well-founded analyses based on import and export statistics. The freight volumes of Swedish com-panies between countries in Europe are not recorded in the statistics. This lack of statistics means that a pioneering effort in a new market is needed. “The very fact that the market is unex-plored is what makes it interesting. To us, the starting signal was Volvo Penta’s need for European transports. Now that we’ve presented our services with greater clarity, we’re conquer-ing the market and getting customers from virtually every sector in Sweden’s manufacturing industry,” Karlsson says.

Proximity and controlCrosstrade offers both proximity to and control of the transports. Crosstrade has its own sales representa-tive, Gert Rasmussen, who previously worked in the Frans Maas organisation.

makes it easy for the customerCrosstrade

m o v e s 11

He brings with him his expe-rience in crosstrade services developed at the then com-pany. This same experience is now being manifested in an all-embracing service that includes price information, transports and follow-up.“Crosstrade is a complex activity which few shipping companies have the capac-ity to match. Most have the capacity to plan the shipment of a full load from one place to another within Europe. But getting goods distributed from one location to five or ten different sites and coun-tries requires a more in-depth expertise, which is only found at large international ship-ping companies,” Karlsson explains. “The future looks very bright. Now that the service is available and known, the demand is also rising. Customers feel secure with the expertise and experience manifested by our shipping agents every day.”

makes it easy for the customer

”Getting goods distributed from one location to five or ten diffe-rent sites and countries requires more in-depth expertise, which is only found at large interna-tional shipping companies,” says Maths Karlsson, Business Area Manager for Crosstrade.

12 m o v e s

Each takeover of a new transport and logistics company by DSV also includes a new IT structure. In some cases, the most cost-efficient solution has been to continue operating the newly acquired business using the “old” IT systems, rather than making a clean sweep and change the finance system, production system and the rest of the IT setup. The result is self-evident: A never-ending series of more or less functional IT solutions which require an equally broad array of support, maintenance and expensive licences.

Thorough clean-upThe re-establishment of a proper IT or-ganisation two years ago has helped DSV to untangle the different systems; most recently with the transition from GNTS (the former Frans Maas production system), to CargoLink, so that all countries in the Road divisions will operate from the same

platform in future. The advantages are obvious: support and operation of just one production system and good-bye to licence payments for different production systems. All the new IT initiatives have one thing in common: nothing has been developed solely by IT staff. To ensure this, Group IT, headed by CIO Claus Rasmussen, has already joined forces with the business side through so-called Governance – a structure ensuring that IT and business operations maintain close dialogue and that all new initiatives are based on genuine customer needs and business considerations.

Business considerations: the driving force”IT facilitates, but business considerations are the driving force. We are constantly in close dialogue with the business opera-tions, who will examine the functionality of all new initiatives. This means that we

DSV has a plan. Within a few years, a myriad of different production, finance and other IT systems will be reduced to a handful. And this is not just a realisation of the IT department’s ideas. The process is controlled by business considerations in response to customer needs.

DSV’s customers lay down theIT track

DSV scraps countless autonomous operating systems and increases the centralised management of the business and finance systems. The results are savings running into millions.

m o v e s 13

consistently choose solutions where everyone has a sense of ownership, rather than having the IT department push developments,” says Claus Rasmussen, who has teamed up with business relationship managers in his organisation responsible for translating and interpreting needs between the IT and business organisations, and an innovation department, which partners with the business organisation in an attempt to develop new ideas and solutions to match current and future market needs. ”As a result, we get fantastic results that put customers and users first. The solutions are based on new technology and functionality to improve our market position and customer service,” he says.

Three divisions – three business systemsAlthough the Solutions division used to have 15 to 20 different business systems, a project has been launched to link everybody to the same system: Red Prairie. This will lead to significant changes in the local IT/operation departments of the individual countries, when operations are centralised in the future. The Air & Sea Division also uses many different business systems. A single system has now been chosen: ediEnterprise (an Australian system from CargoWise) which is already used in Asia. ediEnterprise is currently being rolled out in Canada based on a new, central platform, and the system is expected to be fully implemented in the rest of the Air & Sea Division over the next few years.”All group systems need to be operated from autonomous, central data centres. This will give us major savings com-pared to today,” Rasmussen says.

CargoLink to be replacedWhile the stability of CargoLink (the Road Division’s business system) has been improved compared to previ-ously, a number of technical challenges remain. As a result, CargoLink will be retired through a controlled phase-out within the next four or five years. The 25-year-old CargoLink system does not meet future expandability requirements as its architecture and language are outdated. Nevertheless, DSV has decided to roll out CargoLink in the South European countries in a move to phase out GNTS; the old Frans Maas system. ”We’re saving huge amounts by having all countries use the same system. Also, the transition to the new TMS (Transport Management System) will be far smoother when all share a common platform,” Rasmussen says.

After a selection process, three different candidates now remain for working on the group’s future business system in the Road Division: Kewill, SAP and Oracle. Within a few months, a system will be chosen for a pilot project and is expected to be installed in one or two pilot countries by the end of 2008.

Faster integration – faster synergiesAccording to Rasmussen, DSV’s Group IT is aiming to be-come the best IT department in Europe. Not just within the transport industry, but also compared to the private sector in general. The goal is to maximise efficiency, quality and service – and minimise the cost. And to DSV, a rapidly-growing transport company with an aggressive acquisi-tion profile, a smooth-running IT machine is an important prerequisite for integrating newly acquired companies. ”We have to be capable of quickly incorporating new companies into our IT structure. This makes the integration process far less painful, allowing us to reap the benefits of the inherent acquisition advantages much sooner,” he says.”Our newly-established Governance structure under which all new initiatives result from close dialogue with the busi-ness organisation – via project and steering committees – ensures that the solutions will always underpin the business strategy. The key to genuine success is when IT and busi-ness operations interact,” Rasmussen says, who also has focus on keeping DSV’s Group IT’s feet on the ground: ”We don’t want to be a developer playground; all the solu-tions will be based on existing standard solutions wherever possible. We leave basic research to others. We compose existing solutions for optimising the business’s IT,” he says.

More centralisedDSV’s new IT strategy focuses on increasing the centrali-sation, whereas previously, it was common for indivi-dual countries to blaze their own trails and undertake to maintain the systems to compensate for a lack of central innovation.”DSV’s country managers need to focus on generating more business – not on IT. In return, we need to create new solutions together with the business side, be utmost service-minded and ready for supporting and finding new solutions as soon as the need arises,” says Rasmussen, whose organisation currently numbers some 100 interna-tional employees, who are dedicated to creating Europe’s most efficient IT department, according to their manager.

Since taking office two years ago, CIO Claus Rasmussen, Group IT, has built up an IT organisa-tion that maintains close dialogue with the business organisation.

14 m o v e s

Why we want to work for DSV

DSV’s successful Air & Sea organisations in France and the

Netherlands are set to make quantum growth leaps over the

next three years. The first steps have already been taken by

engaging Stephane Gautrais, France, and Henk van Asselt,

the Netherlands. Moves met the newly appointed directors

to talk about their decision to leave the largest market

players in favour of the somewhat smaller, but far more

“progressive and dynamic” DSV organisation.

Stephane Gautrais and Henk van Asselt both radiate commitment and both are in Copenhagen to meet their immediate supervisor, Simon H. Galsgaard, Vice President in DSV Air & Sea A/S.“Good at negotiating and communicat-ing, fine social and management skills – and an expert in establishing and developing positive customer contacts,” writes Stephane Gautrais of France in his C.V. and also states that he is a man who chose DSV after pursuing a career with reputable transport companies like Kuehne+Nagel and Geodis, of France.

Flexibility, freedom and expectationsHenk van Asselt describes himself as “analytical, logical, determined, competi-

tive and focused on getting results,” and both DHL and Wim Bosman are included in his C.V. – among many other compa-nies. DSV is now the object of their affection. Not because of the size – because DSV simply can’t compare – but because at DSV they’ve found the qualities that make leadership enjoyable: the flexibility and freedom to get results. And big chal-lenges and expectations that neither of them find difficult to meet.“DSV is not at the level it should be. I predict we’ll have doubled our size in three years,” says Stephane Gautrais in the interview and bases his assertion on DSV’s wide-ranging experience acquired through many corporate mergers, which

constitutes DSV’s backbone and strength – not to mention the fact that DSV is simply better than its current market pres-ence: “Today DSV is at the same point where France’s Kuehne + Nagel were five years ago.”“The Netherlands and France are ripe for progress, indeed,” says Vice President Simon H. Galsgaard, continuing: “Both countries have been in a state of turbulence after DSV took over Frans Maas; many employees have found jobs elsewhere because of all the unrest. Henk’s and Stephane’s excellent back-grounds and invigorating vitality are a breath of fresh air in the divisions and they’re just the people we need to unite the organisation and look ahead.”

Air & Sea in France The NetherlandsEmployees 116 107 Turnover (EUR mill.) 69.1 70.2 EBIT 2007 (EUR mill.) 0.78 2.4Head offices Roissy Schiphol (Paris) (Amsterdam)

m o v e s 15

Stephane Gautrais (foreground) and Henk van Asselt want to generate growth in France and the Netherlands, respectively.

16 m o v e s

”You have to accept the challenges you’re offered. It’s the spice of life. You shouldn’t just stick around in your old job,” says Stephane Gautrais, head of DSV’s French Air & Sea organisation since last November. Gautrais has taken several big steps over his twenty some years in the transport business. The last ten have included executive positions at French SDV Logistique Inter-nationale, Geodis and Kuehne + Nagel, where Gautrais was sales and marketing manager from 2002, before switching to DSV last No-vember. Five years in Australia and five in Canada have made Gautrais’s mindset somewhat more “Anglo-Saxon” than is normally expected of a Frenchman.”People think that France is a cumbersome country to do business with, but that’s not true. France is a good market, and our approach is in line with the rest of the organisa-tion,” he says and emphasises the importance of this:”DSV is our largest prospective customer in the export market. Therefore, our colleagues in the rest of the organisation can rest assured that we treat the DSV network as a customer.” Gautrais adds that ninety percent of the imports are decided in France.

Strength in diversity According to DSV’s new French Air & Sea manager, DSV is currently where Kühne + Nagel were five years ago. In his view, the sound foundation and robust network have considerable growth potential in the years to come.”DSV is not at the level it should be. I believe we’ll be twice as big in three years’ time,” Gautrais says and states that the largest chal-lenges in the future actually con-stitute a perfect match for DSV’s strengths.”Today, DSV is a company based on many different cultures and people with widely different backgrounds: Our organisation includes people from the former Frans Maas, DFDS, ABX, Kuehne + Nagel and SDV. Bringing all of them together under a common DSV culture is a massive chal-lenge. Still, this diversity is also the company’s great strength if we can succeed in gleaning the positive elements from each of the cultures.”

Intensifying networkcollaborationAt the same time, the new manager is faced with the major task of heightening an awareness of DSV, which is a fairly unknown company

in France despite its 116 employees in the Air & Sea organisation alone.”We’ve got a big job to do: make DSV a ‘household word’, which is necessary if we want to fulfil our ambitions. We need to invest heavily in sales and intensify the collaboration with our DSVnetwork,” Gautrais says. He wasattracted to DSV precisely because of the specific challenges and growth ambitions: ”DSV is hungry for more business, which is why it’s so much fun. Many of the key market players are too rigid. We can offer flexibility to our customers. This is our core strength: more solutions and more products focused on the needs and expectations of our customers.”

An adventure”DSV thinks globally, but acts lo-cally”, says Gautrais, explaining: ”I perceive a great respect in DSV for local cultures. This is well in line with my visions of where the indu-stry is going. I now find myself in a position where I’m in the driver’s seat, and to me, it’s an adventure to invest the sum of my many years of experience in DSV’s further development,” says the former sales manager of Kuehne + Nagel, who will set out in his new job by turbo-charging sales.

“DSV is hungrywhich is why it’s so much fun”

Stephane Gautrais, 40,Managing Director, Air & Sea, France

19yearsofexecutiveexperienceinthetransportindustriesinFrance,AustraliaandtheUS.Lastposi-tion:SalesandMarketingDirector,Kuehne+Nagel,Paris.

m o v e s 17

With a background as managing director of Wim Bosman and the sea freight director of DHL, Henk van Asselt is used to orchestrating a major group of people. This is pre-cisely his strength: ”I like imparting what I’ve learned and coaching my employees to do their best and rise to a higher level,” says DSV’s new Managing Director of the Dutch air and sea freight division.

Intensified sales effortsStructural changes are also needed in the Netherlands. The organisation’s 107 sales staff reported directly to Henk van Asselt until 10 March, when the Dutch Air & Sea division got a new sales manager (Marco Vandegaar). This led to a restruc-turing of the sales force, who have already started to sell both air and sea transport solutions rather than specialising in one of the two.”The efficiency of the sales force is greatly improved, resulting in far less driving time for the same tasks. At the same time, it enables us to fo-cus our efforts on geographical areas that are only half as large as previ-ously, because the same sales rep represents both air and sea freight,” van Asselt says. He concedes that initially the sales staff may not be equally skilled in both areas, but

”they’ll just have to reach out and get help from their colleagues.”

Sales targets– and measurement methodsVan Asselt has also defined clear sales targets for his employees – fol-lowed by measuring methods aimed at optimising sales.”We want to focus on whether the sales staff meet their targets, but with a positive approach aiming to generate additional sales – not at spreading fear among the staff,” he says. In a concurrent move, the Air & Sea division has started to colla-borate closely with their colleagues in the Solutions division, involving mutual access to respective customer databases with a view to “commer-cial action”.”There used to be a tendency of keeping the cards close to the vest. Today, all three divisions are increas-ingly grasping the huge potential benefits of collaboration and turn this awareness into clear commercial and operational action plans.”

More fun at DSVHenk van Asselt experiences as a director at DHL, 20 times larger than DSV, makes it natural to ask him what made him want to pursue a career in one of the fastest growing

transport companies in the world.”I knew people at DSV, which I consider a progressive and dynamic company with an aggressive growth philosophy, similar to UTi World-wide Inc. who I’ve worked for in Indonesia, Thailand and Indochina from 1991 to 2003 and where we were very successful in achieving double-digit growth, year after year. Because of my background, I can add value to the company and have fun at the same time,” he states.

“We want to grow”Like his French colleague, van As-selt has a mission of strong growth in the next three years. Since his employment on 1 December 2007, van Asselt and his new colleagues have been developing plans for doubling the profits in the Air & Sea division during this period. Now it’s time to hit the road to present the growth philosophy to the more than 100 employees at the division’s four locations.“We want to grow. It’s important that all employees are fully familiar with the ideas behind the direction that has been set out for the Dutch organi-sation. This is the only way to release the requisite energy and creativity for achieving our goals,” the new Dutch Air & Sea executive says.

“A progressive and dynamic companywith an aggressive growth philosophy”

Henk van Asselt, 44, Managing Director, Air & Sea, the Netherlands

Morethan20yearsofexecutiveexpe-rienceinthetransportindustryintheNetherlands,Spain,Indonesia,Thailandandothercountries.Lastposition:Mana-gingDirector,WimBosmanAir&OceanBV,theNetherlands.

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DSV’s new acquisition is the biggest transaction in the Romanian logistics market to date. With this new terminal DSV Romania will meet the growing demand for integrated logistics solutions. Equipped with ultramodern systems, the warehouse will enable processes to be significantly enhanced and expedited.“This new facility will accommodate the growth of all three DSV divisions and will allow us to provide the comprehensive service our clients require,” says Sergiu Iordache, Managing Director of DSV Romania.

Big advantagesIordache goes on to say that, “Bucharest West Park is equipped with state-of-the-art IT systems where we can apply the latest DSV IT platforms and applications that will reduce lead times and increase our stocking and ordering accuracy to

ensure the quality of the integrated ser-vices we want to promote, allowing us to improve sales and operational activities. Obviously, all these services are tailored to the latest customer requirements, al-lowing us to consolidate the DSV brand on the local market.“Relocating our offices to Bucharest West, which in fact means relocating more than 300 people, won’t be easy, but we’re all enthusiastic about it, knowing the advan-tages this new site offers,” Iordache says and also points out that the new location will have bigger offices for all employees, as well as modern equipment and facili-ties and more docking areas. Pipera Cen-tre has 30 docking areas, while Bucharest West Park has 50.

New offices on the wayAs for DSV Romania’s future plans, Mr Iordache is considering multiple direc-

New logistics terminal in Bucharest– the biggest ever

DSV Romania is putting a new modernterminal into operation: a total of 29,000 m2 of warehousing space and 3,000 m2

of office space are now available forcustomers and employees.

m o v e s 19

tions. One is the development of the local network. In addition to the Timisoara and Oradea offices, a new office will open in Brasov in May and another is probably forthcoming in Bacau in 2009. “Since our activities are mainly based in Bucharest at present, this expansion will help to balance our activities, reduce our response and transit times for customers outside Bucharest, improve our under-standing of local markets and improve our chances of securing local forwarding and logistics contracts. According to our estimates, after opening new offices and improving existing ones, these locations will double their turnover and achieve 25 to 30 percent of our total turnover in one or two years, which are also our targets,” he says.

Total control of all activitiesAnother direction in Romania will be to focus on the customer service department. A first step will be to implement the TMS system that will allow DSV Romania to control 100 percent of the company’s forwarding activities and communications with customers.“We also want to promote our internal transport service. We already have effi-cient solutions for collecting and deliver-ing goods all over the country; all we have to do now is market them,” Iordache says.

Great expectations for Air & SeaAs for the Air & Sea Division, the new sales team is focusing on developing the traffic with the Hamburg (LCL) and Frankfurt (air) hubs. “We have our network colleagues’ sup-port and the required setup – the Otopeni Terminal next to our main national airport and our Constanta office, close to the Black Sea port. In Constanta we are able to handle customs formalities without the client’s presence, something new for Ro-mania. Last year, the Air & Sea Division didn’t make a major contribution to our turnover, but I’m sure this year, in light of all the new developments, we will rank among the top players in the Air & Sea forwarding market.”

Sergiu Iordache was appointed Managing Director of DSVRomania in May 2007.

Prime logistics areaThe new logistics site is located in Bucharest West Park, a building complex

covering roughly 90 hectares, developed by Portland Trust, and hosting some

450,000 m2 of warehousing space and 150,000 m2 of office space. This is the

prime logistics area in Romania and is just 10 km west of Bucharest. It relies

on a good transport infrastructure with close, direct links to the A1 motorway,

allowing easy access to Western Europe and shortened transit times (760 km to

Budapest in Hungary). A future Bucharest ring road will also link Bucharest West

directly to Otopeni International Airport and the A2 motorway, linking Bucharest

to the Port of Constanta.

The new warehouse has 4,500 m2 of controlled temperature warehouse facilities

and enough storage space for more than 50,000 euro pallets and 50 truck-docking

areas. In terms of security, the facility offers 24-hour surveillance and is equipped

with video systems, burglar alarms and fencing.

International brandsIn the next two years, DSV Romania intends to purchase another 20,000 m2

of warehousing space in the same Bucharest West Park. Altogether, DSV

Romania currently operates logistics facilities covering more than 58,000 m2

throughout the country. DSV Romania’s customers include international brands

such as Panasonic, Kraft Foods, Heineken, 3M, Bosch and Siemens. Last

year’s Romanian turnover exceeded EUR 21 million.

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As one of the smallest federal units in Russia, Kaliningrad is separated from the rest of Russia by Poland, Lithuania and Belarus. Since the EU enlargement to the East, the region has thus become a Russian enclave in the EU. Therefore Kalinin-grad’s fate is sealed by decisions made in Russia – as well as in the EU. This is the very place where DSV has just cut the first sod for the construction of a new terminal with space for of-fices, a workshop, parking and 10,300 m² of logistics with the option of expanding by 20,000 m² within three to five years. ”We’ve acquired 10 hectares of land and we’ll initially be building on a little more than half of it. Our CEO, Kurt Larsen, has instructed us not to sell the rest of the land,” says Mana-ging Director Leonid P. Stepanyuk, whose company with 100 employees, 65 of whom are drivers, today ranks among the Russian region’s largest transport companies.

Consolidating its leading position”This expansion will consolidate DSV’s position at the top of Kaliningrad’s transport and logistics companies. We’ll be the first to offer storage and logistics facilities in Kaliningrad – and the quality of our transport centre will be second to none. The demand is self-evident – we’ve already booked 60 percent of the capacity even before the terminal is erected,” he continues.

Gateway to RussiaDSV Road in Kaliningrad started out in 1994 as a local transport company, Prigge-Trans, partly owned by the current manager, Leonid P. Stepanyuk. In 1999, the company was acquired by DSV, which saw Kaliningrad’s potential as a gateway to Russia – and an important trading route between Russia, Germany and the Nordic countries. Kaliningrad is one of three Russian DSV offices. The other two are DSV Road in Moscow and DSV Solutions in Istra. Kaliningrad suf-fered from a severe financial downturn throughout the 1990s with declining income, a deteriorating healthcare system, environmental problems and increasing crime rates and drug

problems, but now unemployment has fallen in the last five years and the standard of living is significantly improved. The trend in Kaliningrad is now characterised by strong economic growth in the wake of the generally positive economic trend in Russia. The region has turned into a centre for import and export of goods from and to the EU, and DSV customers in Kaliningrad are local and international companies alike. The company mainly transports electronic articles, such as TV sets, clothes, shoes, foodstuff and other consumer goods from Europe to Kaliningrad – and vice versa, as Kaliningrad has a large production of food, paper and paper pulp, furniture and machinery.

Special economic zone”We have seen a boom in construction and business activity in Kaliningrad since the area was designated a Special Economic Zone (SEZ),” says Leonid P. Stepanyuk, who can look forward to reduced tax payments of around EUR 4 million over the next twelve years, with the impending investment in the terminal of some EUR 10.7 million, thanks to tax-exemption for foreign investors in the first six years and only half of the already low corporate tax rate from years seven to twelve.”At the same time, the region has a VAT exemption for imports, which has been crucial for the favourable economic trend,” he says, and goes on to mention that the growth in Kaliningrad’s gross regional product was twice that of the rest of Russia in 2005. The economic progress caused real income to increase by more than thirty percent in 2005 alone.”We currently witness great optimism and huge interest from foreign investors that will not only trade with Kaliningrad’s one million inhabitants, but also hope to gain access to the Russian market,” he says.

Relationship to neighbouring countriesLithuania is an important partner for Kaliningrad, which plays an important part in the relationship between the EU

If daddy is Russia, and mummy is Europe, then Kalinin-grad very much needs daddy and mummy to get along. DSV is establishing a new logistics centre in the Russian enclave – which should be called Kantograd (after German philosopher Kant) if it was up to the boss.

DSV in Russia – and the middle of the EU

m o v e s 21

and Russia in general. One of the reasons is that goods and passengers in transit must pass through Lithuanian territory to reach Russia. Lithuanian businesspeople are also active in the region, which they use as a stepping stone for penetrating the vast Russian market. Polish business-people mainly use Kaliningrad as a growing market for selling goods. The region is currently home to more than 500 companies with Polish funding, and an even larger number trading through the Russian counterparts. The business part-nership between Kaliningrad and Poland particularly includes the fields of energy, construction, agriculture and furniture production. Strained at times, the relation-ship between Poland and Russia has not affected the business relations vis-à-vis Kaliningrad.

Great expectationsLeonid P. Stepanyuk has great expecta-tions of the coming DSV transport centre which will initially be servicing the com-pany’s own 40 trucks and 60 trailers. The manager expects the terminal to be repaid five years after its construction – i.e. in 2014, when the company is expected to have a turnover of some EUR 27 million

compared to the EUR 5.3 million gene-rated by the company in 2007. Also in Brøndby, Denmark, expectations of the Russian enclave are hard and fast:”We place great confidence in Leonid P. Stepanyuk and Jaan Leep (Mana-ging Director in Estonia) and trust their judgement in this matter. Kaliningrad is a favourable place to set up a business right now, and we still have great confidence in the growth in the region,” says CEO Kurt K. Larsen, who has visited the DSV’s Kaliningrad office on several occasions, and also met Stepanyuk’s two twin girls, aged 6. Leonid P. Stepanyuk also has a son, 24, a daughter, 26, and stepson, 17, whom he hopes will grow up in a region called Kantograd after the German philosopher Immanuel Kant who lived and died in this city.”We’re not particularly fond of the name Kaliningrad,” he says.”Mikhail Kalinin was one of Stalin’s officers,” goes the argument from the former Königsberg and current Kalinin-grad, which is becoming more European in many respects – and soon will have its own brand-new DSV Road Transport Centre.

The new DSV Transport Centre in Kaliningrad is expected ready by September 2009, with more than 10,000 m² of storage and just over 2,000 m² of office space.

Leonid P. Stepanyuk is married to Natalia. Here is the manager on a day off with his two twin daughters, Sofiya and Anna. ”God’s gift,” he calls them.

22 m o v e s

DSV India is expanding its activities to include two more offices: a sales office in Pune with back-office functions for all offices in India, and a new air freight office in Mumbai.

Back office onthewayinIndia

Once again, a traditional rice-burning ceremony was held in a DSV office in Mum-bai, when a Hindu priest placated the gods’ view of the Group’s new air freight office in India. The ceremony which involves blessing the office by beans and making sacrifices to the gods is common practice whenever a new office opens. This time, Michael Carstensen, Managing Director, chose not to replace his lounge suit with a local costume as he did at the previous ceremony. It wasn’t considered necessary.“But the opening ceremony itself is unavoidable. It’s unthinkable to establish a new office in India without the blessing of the gods,” Carstensen says. He has relocated eleven air-freight employees from the Mumbai office, fifty metres further down the street into the newly-established offices.

Full speed aheadSince the founding of an outright DSV organisation in India more than a year ago, the four offices – Mumbai, Delhi, Bangalore and Chennai – have got off to a tremendous start and the number of employees has risen from 16 then to 90 today. This is why the Mumbai office’s activities are being enlarged and an outright sales

office is being established in Pune, 135 km from Mumbai.Pune is the centre of heavy industry, including the automobile industry, but also pharmaceu-ticals and other industries that typically ship their products via Mumbai are located here. The Pune office will be staffed by a branch manager, two sales reps and three service assistants, who will also provide a back of-fice function, i.e. a service unit for the other Indian offices.“Rent and salaries are high in Mumbai and other big cities. It pays to establish rou-tine functions outside these urban areas,” Carstensen explains. He hopes that the back office function will eventually benefit the entire group.

Intercompany outsourcingInitially, the service employees will usually be in charge of the documentation and keying-in tasks relating to bookings and other transport documents. After this, Carstensen intends to look into the possibility of outsourcing other functions within the DSV Group to the docu-mentation department in India, like updates of various statistics and route plans.“A back office is not a unique DSV invention. Most large-scale enterprises have back-office departments in India employing up to several thousand people,” Carstensen says, emphasis-ing the generally high level of education, fine English skills and the relatively low wage levels as the reasons why many large inter-national companies choose to site their back office in India.“In principle, we’ll be outsourcing in-house. Otherwise, others will reap the gains of effec-tively procuring labour for routine functions,” is the refrain from India’s country manager.

Michael Carstensen, Managing Director of DSV Air & Sea India, preferred to wear his lounge suit when a Hindu priest blessed the newly opened air freight department in Mumbai. Now, Carstensen intends to

establish a back office for all of DSV in India.

m o v e s 23

ThepurchaseofRoadferry(IrelandandtheUK)makesDSVamarketleaderintrafficbetweentheUKandIreland–andstrengthensthecompany’sdomestic-freightpositionineachcountryatthesametime.Andthenamechangewasrelativelypainless…

Roadferrybecame DSV Road

“The greater our presence in the UK and Ireland, the better our financial situation and the lower the environmental impact of our transports,” says René Falch Olesen, Managing Director of DSV Road Ltd.

DSV’s takeover of Roadferry Ltd means that the company is also taking over almost 10 percent of the shares of Palletline, the leading distribution network in the UK and Ireland, thus making DSV an outright market player in national British and Irish freight for the first time ever. Palletline is wholly owned by its network compa-nies and is solely represented in Ireland by Roadferry, so DSV’s logo will soon become a familiar sight to the 3.8 million inhabitants of this green isle. Roadferry’s turnover is GBP 50 million, 30 million of which is generated by transports between the UK and Ireland amounting to 50,000 full loads a year, that are conveyed by the accompanying 500-strong trailer fleet. The remaining GBP 20 million are generated by domestic pallet transports in the UK and Ireland respectively.

British breakthrough“This is a breakthrough in the UK for DSV Road, because it gives us a far greater product palette there. Up to now, we’ve limited our activities to transporting domes-tic freight (not including our international transports), to reduce our trucks’ empty runs – and because of the goods that our existing customers expected us to transport domestically,” says René Falch Olesen, Managing Director for DSV Road Ltd, who also hopes that DSV can further develop its working relations with Palletline.“The bigger we are in domestic transports in the UK and Ireland, the better the econo-my and the lower the environmental impact of our transports,” he says, referring to the fact that fully loaded trucks pollute less than trucks with a low rate of utilisation. “This will substantially reduce our empty

runs and, from now on, many customers will regard us as a ‘one-stop shopping’ option. In addition, Roadferry’s customers will now have access to DSV’s complete palette of products in Ireland and the United Kingdom, where the potential is also enormous.”

Management by coincidenceIt may seem like the Powers Above were at work when Roadferry suddenly became an interesting option for DSV. René Falch Olesen was contacted by Brendan Murphy, Managing Director of DSV Road in Ire-land, the same day that Olesen had received a prospectus from Deloitte stating that Roadferry was up for sale. Murphy stated that DSV’s growth in Ireland was heavi-ly dependent on increasing the transports between the UK and Ireland. Roadferry was mentioned as one of the possibili-ties for making this desired breakthrough. Olesen promised to look into the possibili-ties of buying up Roadferry and forwarded Deloitte’s prospectus that same day to DSV in Ireland.“They were impressed by my efficiency,” Olesen remembers, “but since then they’ve also learned what really happened. It seemed a little like ‘management by coinci-dence’, but it was an excellent solution for us,” he says.

Everyone feeds into hubsPalletline is just one of ten networks in the UK for distributing palletised goods, also known as pallet networks. Palletline opera-tions are based at three transport hubs, the largest of which is in Birmingham, while the other two are located in Heathrow and Leyland. All partners in the network, a

tenth of which is now DSV, feed pallets into the hub where the companies then make the deliveries in their respective areas (each carrier has clearly defined operational areas).“The network is expected to grow by 15 percent a year, and we’ll increase our share of the profits even more in the overall net-work,” Olesen explains, who also is pleased that the name issue was resolved reason-ably amicably.“Roadferry’s management had hoped that part of the previous name, Roadferry Ltd, would be continued in the new name. We offered them ‘DSV Road Ltd’, which satis-fied everyone,” he says.

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News

Publisher: DSV A/S.Editor: Mads Wedderkopp. Send content suggestions to mads.wedderkopp@dk.dsv.com, tel.: +45 4320 3766Distribution enquiries: Staff: Marie Laweatz, marie.lawaetz@dsv.com,Other recipients: Helle K. Hansen, helle.k.hansen@dsv.comPhotos: Lars E. Andreasen, Mads Wedderkopp, Johan Wingborg.Layout: Jacob Thesander. Translation: ad Astra Translators. Printed by: Scanprint.

Carbon calculator computes environmental strain / Over the summer, DSV will introduce a carbon calcula-tor which will be accessible to the Road divisions via E-services and the DSV Public Track and Trace System. In connection with a booking, the requisite data – such as transport time, number of kilometres, weight of the shipment and mode of transport (road, air, sea) – will be automatically generated and the system will then calculate the transport’s emissions of CO2, CO, SO2, NOx and HC particles. The calculator will be installed as an integral component of E-services software and will be able to measure the emissions all the way down to the individual transport, yet it will also be possible for the customers to download monthly reports via the forthcoming application. The system is being launched as part of our efforts to reduce unnecessary environ-mental strains and in response to a rising environmental awareness among the company’s customers.

Man the pumps! / DSV has concluded a framework agreement with the US company Flowserve regarding the transport of goods from various destinations all over the world. Flowserve is one of the world’s largest manufacturers of pumps, valves, gaskets and other components for the manufacturing industry (including oil, gas and chemical companies) and the pharmaceuti-cal industry.The transports will be carried out by air and sea to and from just about every country in the network, but will primarily involve the US, France, Germany, the Netherlands, the UK, Italy, Spain, Austria, Finland, Sweden, China, Australia and India. Flowserve was founded in 1997 and currently generates turnover of USD 3 billion, with 15,000 employees in 56 countries. The Global Key Account Manager is Claus Kjaer of DSV in Boston, while Mika Johansson, Shanghai, and Tommy Jensen, Copenhagen, are regional account managers for Asia and EMEA (Europe, the Middle East and Africa). Flowserve transports goods worth USD 65 million a year and uses a limited number of “Nominated Flowserve Carriers” – one of which is now DSV.

Everything for the manufacturing industry / What do the following brands have in common: Thermoking (refrigerated transport), ClubCar (golf carts), Hussmann (refrigeration systems) and Ingersoll Rand (quality tools, etc., for professionals)? They are all owned by

Ingersoll Rand which has been a supplier of a variety of products to the manufacturing industry for more than a century. DSV just won a cutthroat competition to be designated as a main carrier of Ingersoll Rand products to and from virtually every country in the network. Ingersoll Rand generates an annual turnover of USD 8 billion and the total transport budget exceeds USD 100 million.

Satisfied – and less sickness-related absence / Em-ployees in the DSV group are apparently more satisfied than ever. At least compared to 2006, which was heavi-ly influenced by the acquisition of Frans Maas. Staff turnover has declined in all three Danish divisions and in terms of the various employee categories, i.e. fewer have left than before. At the same time, sickness-related absence declined in 2007. The total sickness-related absence in the DSV group in 2007 was the lowest ever recorded since the monthly reporting of staff data be-gan. Group employees had an average sickness-related absence of 3.7 percent, equivalent to almost nine days of sickness-related absence a year. The healthiest em-ployees are in the Air & Sea Division.

“Are you going to lend a hand, or not?” Henrik Nielsen at a photo session at DSV’s newly acquired Ringsted property.