Supplychain Digital Magazine - December 2015

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Liberty Global in the business of broadband

Rakha Al Khaleej’s Global vision

SPECIAL FEATURE Costa reveals global growth

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EDITOR’S COMMENT

Tech time instrumental role in how supply chains perform and meet the exacting demands of customers.

New innovations and breakthroughs are constantly being made and will no doubt continue as the sector evolves to meet the demands of the 21st century.

In this month’s issue we highlight how one of the globe’s major shipping companies has grabbed innovation by the horns and made it work to its advantage with the launch of a new container tracking system.

You can find out how it works and what monumental effects it will have on the shipping line’s customers and staff alike.

Equally, big changes have also been introduced into how companies with supply chains effectively manage them to eradicate the worldwide problem of trafficking and human slavery.

New laws came into force in the UK last October which are bound to send repercussions around the world. Learn how it might impact your company and what compliance steps you need to take.

Finally, on a somewhat festive note, we find out what impact a boom in exports for the UK’s confectionery industry is having on its logistical requirements.

T E C H N O L O GY I S P L AY I N G A N

Enjoy the read, Lucy Dixon

Managing Editor EMEA

lucy.dixon@wdmgroup.com 3

CONTENTS

Features

06 Smart container tracking TECHNOLOGY

LOGISTICS

12 4

S U P P LY C H A I N M A N A G E M E N T

HOT CHOC: Forward logistics for global delivery

December 2015

18

The fight against human trafficking

Company Profiles

24 Costa

EUROPE 24 Costa 40 Liberty Global 62 MOD 74 Dusseldorf Airport Cargo DUS

MIDDLE EAST 84 Rakha Al-Khaleej Int’l LLC 98 First Bahrain

AFRICA 110 Oriental Weavers Group

First Bahrain

98

USA 120 Knichel Logistics

AUSTRALIA

130

130 Kuehne and Nagel 144 Santa Fe Wridgways

Kuehne and Nagel

144

LATIN AMERICA 154 Fastenal LATAM

Santa Fe Wridgways

110 Oriental Weaver Group

120

Knichel Logistics

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SMART CONTAI

CMA CGM’s flagship container Bouga world to adopt cutting-edge tracking te 6

December 2015

Image Copyright: P. Plisson

TECHNOLOGY

INER TRACKING

ainville is being hailed as the first in the echnology from solutions’ firm Traxens Writ ten by: SHEREE HANNA 7

TECHNOLOGY FRENCH SHIPPING GIANT, CMA CGM, has scored a global first by equipping its newly-built flagship vessel, Bougainville, with cutting-edge tracking technology effectively transforming containers into smart connected objects able to communicate.

The world-leading group operating in 160 countries through its network of more than 655 agencies has formed a strategic alliance with technology firm Traxens based close to its Marseille headquarters.

Their pioneering alliance has even received a nod of approval from French President Francois Hollande.

Utilising Traxens’ solution 4Trax transforms standard

Discover Smart Containers by TRAXENS 8

December 2015

containers and introduces the multimodal transportation system into the Big Data era.

It means the containers aboard the 18,000 TEU, flagship Bougainville are able to communicate among themselves and to the ship’s communication infrastructure by using built in relay antennas, allowing even the most deeply hidden container to be connected.

All the collected data can then be sent to CMA CGM’s headquarter via Traxens’ data centres.

Jacques Saade, Chairman and Chief Executive Officer of the CMA CGM Group, says: “With this technology, CMA CGM brings the shipping industry into a new era. We can offer new services to our customers and take a step ahead from our competitors.”

Adding value Traxens ingenious system adds considerable value to the shipping line, especially for customers, insurers and customs as it able to collect real-time data throughput of the container’s transport whether on land or at sea.

A vast range of data relating to things such as location, temperature,

S M A R T C O N TA I N E R T R A C K I N G

Building a CMA CGM container ship humidity level, vibrations, impacts, attempted burglary, customs clearance status and more can be gathered and transmitted to the CMA CGM Group.

The shipping company says the devices can provide even greater added value in the refrigerated transport of perishable goods. They can remotely control and adjust the temperature of refrigerated containers and will allow resource optimisation for routine inspections.

With more than 12 million containers transported by CMA CGM it means that a huge amount of information will be collected and analysed

with the objective of improving the service provided to end customers.

Investing in research Traxens is fast gaining a reputation for delivering the world’s most exhaustive, precise and timely information on containers and container transporters.

Its primary aim is to help multi-modal customers improve customer services in terms of cost, investment and allow for provision of premium services.

Earlier this year, CMA CGM, which employs 20,000 people, strengthened its investment in awardwinning Traxens, which was founded 9

TECHNOLOGY three years ago by a four-strong team of technology engineers.

The technology company undertook a three-year Research and Development programme to develop specific technology required to produce cost effective, durable and autonomous devices for a wide range of container data capture and real-time transmission of this data from anywhere in the world.

Traxens’ Founder and Chief Executive Officer, Michel Fallah, says: “We have created cutting edge technology.

Our radio communications device penetrates several layers of containers by relying on automatic radio meshing.

“The container is an intermodal transport unit handled by numerous

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December 2015

operators who don’t have any contact with each other. The idea is to send information extremely securely along the whole transport chain regarding the condition of the cargo and on the legal status of the container.”

Fallah adds that ultimately this could help fight against false declarations and counterfeits by facilitating control and also ensuring port passage is as smooth as possible.

In 2012, Traxens was the winner of a national competition in France for support to the creation of innovative technology companies (CNACETI) and received a grant of 260,000 Euros.

Presidential approval At Bougainville’s recent official

S M A R T C O N TA I N E R T R A C K I N G

inauguration in Le Havre, President Hollande remarked on the CMA CGM’s foresight with regard to technological development. He said: “You have always been one step ahead. This is a great success for you, your staff members and for France.”

Also present at the ceremony were: French Minister of Foreign Affairs and International Development, Laurent Fabius and the French Secretary of State for Transportation, Alain Vidalies along with many French parliamentarians and politicians.

Today nearly 90 percent of traded goods in the world transit by sea. Maritime transportation plays a key role in this sector as

well as in the world’s economy.

The Bougainville is deployed on the French Asia Line (FAL) - a CMA CGM’s emblematic shipping line between Europe and Asia and is a symbol of trade between these two countries.

CMA CGM group was founded in 1978 is the largest private employer in Marseille with some 2,400 staff based at its headquarters serving some 6,300 customer. In 2014, it posted revenues of US$ 17.6 billion in 2014.

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LOGISTICS

HOT chocolate Writ ten by: SHEREE HANNA

A boom in confectionery exports means this sector must ensure its supply chain logistics are up to the task of global deliveries.

Together with FedEx Express we examine the challenges 13

LOGISTICS TRADITIONALLY, THE FESTIVE season is a busy time for chocolatiers, but it would appear the UK confectionary business is undergoing an export boom with UKTI figures showing the trade recently surpassed £1bn for the first time in history.

Chocolate consumption is growing and demand for British-made chocolate is increasingly coming from those countries that are typically associated with it. Chocolate exports from UK to Switzerland increased by 160 percent in the past four years.

Consequently, British companies are now selling their soughtafter products to 150 countries worldwide. This is fuelling demand within the supply chain industry to provide the right kind of services to deal with transporting this often delicate and delicious foodstuff.

Martin Davidian, Managing Director Sales UK and Ireland for FedEx Express, said: “Confectionery supply chains can be complex and flexibility is fundamental, particularly during busy seasonal periods.

“While shipping perishable items over long distances may seem daunting, the right support from a logistics provider can make a 14

December 2015

huge difference in providing local knowledge and strategic insight.”

Global sugar rush Demand is not just coming from established markets, but also places such as China which is increasingly developing a taste for the cocoa bean.

And like Christmas, seasonal events abroad are stimulating demand such as in Mexico ahead of Dia de la Muertos, where chocolate plays a central role in remembering loved ones.

Exporters such as Lauden Chocolate based in the North of England supplies its awardwinning products to as far afield as Russia, China and Japan.

This successful company

Founders, Stephen & Sun Trigg

H O T C H O C O L AT E

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LOGISTICS

FIVE TOP EXPORTING TIPS FOR THE CONFECTIONERY SECTOR 1 Transporting safely and securely – The delicate nature of chocolates means that timely delivery is even more important, but finding a balance between value and speed can be a challenge. Seek out tailormade services, which offer time-definite, customs-cleared and door-to-door delivery.

2 Meeting customer demand – Speed to market is important in positioning your business.

Quality and presentation of the product on arrival should also be a top priority, as it certainly will be for your customers. Focus on agility and flexibility within your supply chain operations.

3 Customs regulations – Customs clearance can be challenging to understand – especially in the food and drink industry where each product will have different rules. Your logistics provider is best placed to have the latest customs information, advising on the right solutions and services for your business’ needs.

4 Choosing the right markets to enter – Do your research but also speak to the logistics experts. Their on-the-ground knowledge and experience will prove invaluable for both short and long-term decision-making, geared at making your business as profitable as possible.

5 Language barriers – Communication is essential at all stages throughout the supply chain and when shipping overseas language barriers can be difficult to navigate. FedEx employs team members globally to provide a presence in 220 markets to ensure brand consistency for its customers across all borders.

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December 2015

Lauden Chocolate produ throughout the UK and e capitalised on a unique Valentine’s tradition in Japan, where every business owner in the country gifts their employees with chocolates.

However, chocolates are temperature sensitive and also require delicate handling which makes transporting them over long distances more challenging.

Safe passage When exporting, Lauden Chocolate’s shipments are packed with ice and

H O T C H O C O L AT E

uces high-end, fine quality chocolates which are sold exported to a number of countries all over the world. temperatures must be maintained constantly throughout transportation.

As an artisanal chocolate company with the highest standards, it’s crucial the goods arrive at the destination in precisely the same condition as they left.

When it came to choosing a logistics partner, the owners of Lauden Chocolate, Stephen and Sun Trigg, set out extremely high criteria.

Stephen said: “As a company with growing international

ambitions, having a logistics partner which grants us access to new markets is incredibly valuable.

“Before working with FedEx we found it challenging to ensure our chocolates arrived at their destination tasting and looking exactly as they should. Lauden Chocolate is a luxury brand and this needs to come across in every interaction we have with the public.

“When it comes to logistics, FedEx is undoubtedly a world leader.”

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S U P P LY C H A I N M A N A G E M E N T

The fight against human trafficking A new law aims to eradicate slavery and human trafficking in supply chains Written by: SHEREE HANNA

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SCM MORE THAN 12,000 companies operating UK and international supply chains now have to adhere to new laws addressing slavery and human trafficking in the 21st century.

Failure to comply with the new legislation could result in the government initiating high court proceedings against an offending company forcing them to comply with its terms.

More damaging from a business perspective could be the threat

of bad publicity and damage to brand value, company reputation and investor relations.

The Modern Slavery Act 2015 came into force last October following a lengthy consultation process initiated last year.

Regarded as a global issue, the slavery and human trafficking trade is estimated by the UN and other national organisations to be worth a minimum of $32 billion a year. Construction, agriculture, textile, security food

THE FIGHT AGAINST HUMAN TRAFFICKING

‘Regarded as a global issue, the slavery and human trafficking trade is estimated by the UN and other national organisations to be worth a minimum of $32 billion a year’

Further information regarding MODERN SLAVERY ACT 2015 is available HERE

processing and packaging, hospitality and tourism are among the sectors most likely affected by it.

Who does it affect?

The new law requires companies with a turnover in excess of £36 million to report annually on what steps they have taken to prevent slavery and human trafficking occurring in their supply chains.

The definition of slavery is defined as those in servitude as well as forced or compulsory labour, while trafficking is arranging or facilitating the travel of a person with a view to that person being exploited.

The act’s Transparency in Supply Chains clause will mean those companies affected will need to understand the deeper tiers of their supply chains and demonstrate they have due diligence processes in place.

Each financial year they will be required to produce a statement of what actions have been taken and post it on their website.

While there is an option for the statement to simply say the organisation has taken no such steps, the UK government is hopeful affected firms will be ever mindful of the ethical 21

SUPPLY CHAIN MANAGEMENT

‘The act’s Transparency in Supply Chains clause will mean those companies affected will need to understand the deeper tiers of their supply chains and demonstrate they have due diligence processes in place’ stance of shareholders and customer/ consumer thinking thus not wish to damage their reputations or create any potential for financial consequences.

What does the law demand?

The legislation demands that all statements must be approved by the board or in non-corporate bodies those in positions equivalent of board status.

The act gives suggestions as to what should be included in 22

December 2015

a statement. They include: • The organisation’s structure, business and its supply chains; its policies in relation to slavery and human trafficking (so creating an implicit pressure to introduce such policies); • Its due diligence processes in relation to slavery and human trafficking in its business and supply chains; • The parts of its business and supply chain where there is a risk of slavery

THE FIGHT AGAINST HUMAN TRAFFICKING

and human trafficking taking place, and the steps it has taken to assess and manage that risk • Its effectiveness in ensuring that slavery and human trafficking is not taking place in its business or supply chains, measured against such performance indicators as it considers appropriate; and finally, • Training about slavery and human trafficking available to its staff.

What steps should companies take?

According to international legal practice Squire Patton Boggs, which advises a diverse mix of clients, from fortune 100 and ftse 100 corporations to emerging companies, local and national governments, affected businesses, if they haven’t already should consider taking a number of steps to reach compliance. These include: • Deciding which senior people within the business will be responsible for compliance; • Thinking about what information will need to be included in the statement and pulling this together; • Auditing the business and supply chains to help determine the level of exposure, whether or not

slavery and human trafficking is a potential issue for the business and where exposure is greatest; • Developing or updating supplier codes of conduct, tender requirements and supplier contracts to account for the issue including, for example, requirements on meeting minimum labour standards in their supply chain; • Putting in place policies and codes of conduct to combat slavery and human trafficking in the business and supply chains; • Identifying who will require training on the new obligations, for example, directors and employees who have direct responsibility for supply chain management and procurement; • Consulting with individuals in the workforce who may potentially be affected; • Ensuring there are effective grievance and whistleblowing mechanisms in place so that concerns over slavery and human trafficking may be raised HR Departments can play a key role in introducing policies and training as well as implementing risk analysis audits, due diligence, hotlines and monitoring processes.

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Growing globally Written by Nye Longman Produced by Richard Durrant

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C O S TA

The UK’s favourite coffee shop has just posted very promising growth results, backed up by an innovative, long-term supply chain strategy

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C

osta (part of the larger Whitbread group) has accrued a number of enviable accolades over the years and can boast equally impressive growth figures to boot. The coffee shop chain recently posted a massive 28.4 percent growth in underlying operating profits, from £52.4 million to £67.3 million. It has set itself the target of achieving £2.5 billion system sales by 2020; we examine how the company will expand globally and deliver a number of strategic initiatives.

Key Personnel

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Jan Jakubowski Head of International Supply Chain

Operations Costa’s position as the UK’s favourite coffee shop is supported by a large network of outlets, backed up by a rigorously well-organised supply chain. In the past 12 months, it has continued to grow its UK store portfolio taking the total to 1,999 coffee shops and has a further 1,168 spread across the 30 countries; its vending machines (known as ‘Costa Express’) have grown by 416 new units, taking the total to over 4,700 globally with the company hoping to roll-

Jan joined Costa in 2013 taking on the task of establishing an efficient supply chain supporting Costa Coffee’s international business. He established foundations for growth through process development and improvement and team expansion. He manages operations as well as supply chain strategy development.

Prior to working for Costa Jan was managing the customer supply chain function for Coca-Cola.

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Office Branch Profile

We deliver as promised.

Our Food Services aim is to deliver industry leading standards, through an invested network and committed teams, to our current customer base of Whitbread, Premier Inn, Costa Coffee, Greene King Pubs and Kerry Foods, and to our future customer base.

www.kuehne–nagel.com 28

December 2015

C O S TA

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out another 7-800 machines in the next year.

To get an idea of just how strong its position in the UK market is, you only need look at the number of people using its ‘Coffee Club Card’ which now make up 42 percent of all transactions across its stores – now that’s loyalty! What is more impressive is the fact that as many as 2.7 million people hold one of these cards – just under one in 20 people in the entire UK. A major part of Costa’s future growth will come from its international operations. Backing up these extensive, high-value operations is a combined operational and supply chain strategy. The supply chain component is headed up by Jan Jakubowski (Head Of International Supply Chain) and his centrally located team.

He said: “To understand the complex environment in which we operate, it is important to understand our structure of supply chain operations. We manage three main formats and several key categories such as hot and cold drinks, consumable

A major part of Costa’s future growth will come from its international operations w w w. c o s t a . c o . u k

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Costa express franchised machine

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items and sweet range products. The first format is the international franchise business - we have a group of franchise partners with which we cooperate and they are essentially our customer.

“Because we are not contractually empowered to impose solutions, relationship management plays a crucial part. We have developed over the years a mutual respect and our Partners believe in the quality of service that we provide.

“The second group is composed of countries in which Costa Coffee shops are operated by entities in which Whitbread PLC has an equity stake. These are our stores in Poland, France and Singapore; they are still perceived a customer to supply chain but the level of engagement is different compared to a franchise partner. We have, in this instance, greater impact on what choices are made and what specific solutions implemented.

“The third format is through joint ventures which we predominantly have in China. This is an essential requirement to growing a successful business over there. We have two JVs in China.

This business is supported by DHL, a leader in supply chain/ logistics services in the region who manages for us warehousing and distribution.

The international supply chain team supports them with strategic directions as well as providing key products from the UK supply base.

The company’s operations in China are certainly cause for much celebration, since it can now boast over 350 stores (the most

EUROPE

of any country outside of the UK) which have been formed using JVs and an ambitious goal of reaching 900 coffee shops by 2020; Strategic supply chain Jakubowski was proud to acknowledge that this growing global network of quality coffee shops would not have been able to reach this scale and popularity without the support of his team.

He said: “We are growing at an incredibly fast pace. We are not only concentrating on expanding businesses in existing countries but also working constantly to bring Costa into new territories; to be able to make sure that the business growth is supported we have to have a very well-functioning, future proof supply chain. Supply chain is and will continue to be a key enabler of Costa’s international growth.”

Costa has made the Times Top 25 Big Companies to Work For

Supply chain is and will continue to be a key enabler of Costa’s international growth

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C O S TA

Connect. Create. Enjoy.

CSM Bakery Solutions is an international leader in the baking industry, producing one of the broadest ranges of products for customers in more than 100 countries. Headquartered in Atlanta, Georgia, CSM is dedicated to developing and providing solutions that drive customer growth and success.

(+44) 151 343 1600 www.csmbakerysolutions.com info@csmbakerysolutions.com 32

December 2015 Copyright Š 2015 CSM Bakery Solutions LLC. All Rights Reserved.

C O S TA

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“Our ambition is to establish an end-toend supply chain into which new business partners will be able to easily plug in and out.

Flexibility and adaptability will be important in an ever accelerating business environment.”

“We build our supply chain with the elaborate mixed model and growth in mind and because of this we have particular focus on understanding cost. We need to understand what the cost of serving each country is, and then for each individual franchise or equity partner operating in them. Our model promotes flexibility and is developed to make it a competitive advantage for Costa.”

“Structural solutions enable good cost management but also a focus on continuous improvement. The lean mind-set is in everything we do, from planning headcount, projects, and travel to administration. We make sure that we develop a great service but when it comes to well defined systems (such as 6-sigma) we don’t use them in a structured and holistic way. We do, however make sure that they are used across our key service providers.”

He explained that, in order to reach so many locations with its branded coffee, while simultaneously delivering fresh, locally relevant cuisine, he and the international supply chain team used strategic partners and w w w. c o s t a . c o . u k

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C O S TA

Great fruity drinks, so easy to make!

Le Fruit de MONIN contains up to 50% whole fruit, it is an innovative one-step product, so there is no need to add sugar.

Designed for professionals, shelf stable, it delivers the true taste and texture of fruit for amazing smoothies, frappes, milkshakes and cocktails! Š MONIN - September 2015

For more beverage inspiration see

www.monin.com & the Free MONIN App.

DELIVERING AN OUTSTANDING SERVICE TO COSTA INTERNATIONAL EVERYDAY Market leading

Expertise

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Part of Bunzl plc a FTSE 100 specialist distribution group with origins back to 1854. Utilizing our global resource we provide Costa and other customers in the catering and hospitality sector an unbeatable range of catering disposables, food packaging and hygiene solutions.

Offering specialist product category advice and guidance on efficiency and cost control to drive customer profit.

Our dedicated national account team works closely with Costa International to deliver tailored working strategies and solutions to meet their worldwide growth plans and export requirements.

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December 2015

Blog: innovate.bunzlcatering.co.uk

T: 01236 850 210

Twitter: @BunzlCatering

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were also working to form a global 3rd party logistics (3PL) network. These aspects back up the company’s commitment to customer centricity; covering its end-consumers, its franchise and joint venture partners.

Jakubowski said: “We have a broad range of partnerships in the logistics area ranging from global companies such as Kuehne+Nagel, HAVI or DHL to specialised freight forwarders which have proved themselves in the last years of dynamic growth.

Those relationships were key during the initial years of Costa’s international developments.

Transcargo, for example, has provided us with great freighting services and has a strong understanding of how important collaboration and customer centricity is, two notions at the heart of Costa’s international supply chain.”

“Partnerships are important throughout the entire supply base covering all categories and types of operations. Bells of Lazonby is a good example of collaboration in a category and has supported our ambition to have a strong supply base with great coverage that will enable us to support Costa Coffee shops around the world.

“Bells were able to support us very swiftly in developing or adapting products for foreign markets. With such support we were able to bring the great proposition of the Costa sweet range to all corners of the world.

“Monin, the world famous flavoured syrup provider is a prime example of a great

“Another key focus for us is understanding our cost to serve. We need to understand what the cost of serving each country is, and then for each individual franchise or equity partner operating in them. Our model promotes flexibility and is developed to make it a competitive advantage for Costa” – Jan Jakubowski, Head of International Supply Chain

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December 2015

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understanding of local legal requirements and what needs to happen to deliver products to remote countries at speed.

This is very often fundamental for the successful launch of our campaign drinks. “We also are appreciative of partnerships with suppliers who share our ambition and are ready to support us with services that reach out of their core competency. A great example is CSM, the baking company who, through its excellent understanding of local markets internationally, can support us with insights and quick product adaptations. “We emphasise the need for collaborative planning, forecasting and replenishment. We have partners that understand the international Bells were able to support Costa very swiftly in developing products for foreign markets

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“We emphasise the need for collaborative planning, forecasting and replenishment.

We have partners that understand the international environment and are able to deliver a great service in the nuanced world of global trade” – Jan Jakubowski, Head of International Supply Chain

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December 2015

environment and are able to deliver a great service in the nuanced world of global trade.”

Talent management Since Costa is quickly becoming a globally recognisable brand, it is stepping up its efforts to ensure that its employees are enthused with this sense of pride and direction. Its efforts to this end have received a variety of awards in recent years which Jakubowski was keen to recognise: “In Costa international supply chain we have implemented an innovation panel managed by the Project Manager which identifies opportunities to innovate in our field and bring our operations ahead of the curve. We look at innovations constantly”.

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Furthermore, the company has recently been commended in the press for raising its employee’s pay ahead of the UK National Living Wage; this has been backed up by a commitment of between £15 and £20 million to ensure that it is correctly executed. It has also made the Times Top 25 Big Companies to Work For. Additionally, Costa is looking to employ 2,000 additional apprentices across its stores, offering them an invaluable experience, by 2020.

Having developed a solid, three-pronged business model, Costa has proved time and time and again that it is possible to retain local relevance while having global scope; the culmination of this has been its healthy financial and territorial growth. w w w. c o s t a . c o . u k

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In the business

s of broadband Written by: John O’Hanlon Produced by: Richard Durrant

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LIBERTY GLOBAL

Liberty Global may not be immediately recognised by the man in the street, but the chances are that he has a close relationship with the biggest international cable company on the planet, with operations in 14 countries, 12 of them in Europe and two in Latin America

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L

iberty Global was founded in 2005 and operates through brands that will be much better known however, brands like Virgin Media in the UK and Ireland, UPC in Poland, Ziggo in the Netherlands, Unitymedia in Germany and many more. In ten of its European markets, including the UK and Ireland, Liberty Global is the largest cable operator. But despite its growth and success, it remains very much an insurgent, challenging the incumbent telcos in each of its markets. It is predominantly a triple play operator, providing broadband as its core offering, adding fixed line voice and TV, and in some markets venturing into quad play as a mobile operator. Mobile for example is a strong part of the Virgin Media business.

A group that has been formed out of existing companies invariably has to face issues around synergy and disparity. Each constituent company

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Key Personnel has its own suite of equipment, its own processes and its own structures, and all that presents an interesting challenge in the sphere of supply chain management. Steve Rounsley and Willem Vesters are challenged to deal with this situation and turning it to the advantage of the business. As they see it, logistics optimisation is one of the biggest vehicles through which Liberty Global can keep its cost down and deliver the service that its customers expect. It’s a road paved with opportunities.

Rounsley is Vice President for VP Global Logistics and Vesters for Global Supply Chain Planning. The former looks after the warehousing and movement of goods while the latter leads the planning, streamlining and restructuring of these processes: needless to say they work very closely

Steven Rounsley VP Global Logistics

Willem Vesters VP Global Supply Chain Planning

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LIBERTY GLOBAL

$18m The amount of revenue generated by Liberty Global

together. The hardware in the chain falls into two broad categories, says Rounsley, customerpremised equipment or CPE, and network equipment, which covers everything required to lay fibre optic cables and connect them to the end user. “CPE includes set top boxes, broadband routers, and of course mobile phones.

The logistics function we manage supports all twelve European countries in the consumer and B2B market. It includes all product categories, fixed line to broadband, TV and mobile, in all countries, in all consumer and B2B markets.

E pluribus unum On the planning side, Vesters explains, it is essential to work with vendors on future requirements: “Lead times vary from a couple of weeks to 16 or 18 weeks so the planning function works out what we will need, where we need it and when.” Gathering all of this equipment into distribution centres and dispersing it to the national businesses based on customer and consumer demand calls for liaison with the sales and marketing departments on campaign activity, he adds. “We do this on both the CPE and the network equipment side of things.” Each of these has its own particular set of problems.

Both Steve and Willem are looking after a large number of different countries which have their own legacy systems in place, all at different stages of development. For example, he says, network planning in the UK is somewhat ahead

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of the other European markets. “The challenge is to get them all to the same level so that we can talk at a holistic level to our vendors to assure the supply of material across the board.”

Beyond the exacting job of stitching together twelve separate supply chains across Europe Liberty Global has stepped up to the challenge of extending the fibre network in a number of European economies. In the UK for example this is the first time major step in the 20 years since the UK government fudged the roll-out of a national cable network in the 1990s. An investment of £3 billion announced by Liberty Global in February will redraw the competition map in the UK where Liberty Global’s brand Virgin Media faces competition notably from BT. The investment marketed as Project Lightning will bring ultrafast broadband to a total of 17 million homes by 2020, reaching four million more

“The challenge is to get them all to the same level so that we can talk at a holistic level to our vendors to assure the supply of material across the board” – Willem Vesters, VP Global Supply Chain Planning

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Regional Depot

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Regional Depot

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Pioneers in Set Top Box Test Technology and Refurbishment The founding principal of our Home Entertainment Business is focused on delivering what our customers need to deliver to their customers both now and in the future. We take the view this means developing objective and automated processes that deliver fantastic products and services to the market at optimised capital and operational cost.

Why Customers Choose Regenersis...

Continuous Improvement Part of our DNA Proven track record Focused On Customer Needs Product quality Operational cost Flexibility Business Practices Integrity Open relationships Honesty Financial stability

Experience More than 10 years, 20 million units UK, Europe, USA Average customer relationship - 8 years OEM Relationships Cisco - 8 years Pace - 10 years Samsung - 6 years Vision (Short, Medium, Long Term) Service - keep the box in the home Operational cost – asset utilization, process costs, materials consumption

+44 (0) 1592 774 704 | stuart.williams@regenersis.com

Company Information Founded 1979

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Employees 4,200 Sectors Home Entertainment Information Technology Mobile Communications Industrial Electronics Locations

Our Key Deliverables • Automated Test Systems • Real Time Data Integrity/Reporting • Perfect Product Quality • Supply Chain Efficiency • CSR (Environmental Benefit)

UK Germany (2) Czech Republic Poland (3) Spain Netherlands Belgium USA (3) Mexico Argentina Russia South Africa (2) India

• Asset Utilisation & Recovery • Logistics Integration

www.regenersis.com

SUPPLIER PROFILE

Regenersis is a global provider of diagnostics, repair and data erasure services to the consumer electronics industry, helping our clients and their customers successfully, protect, maintain, and retire technology.

Our international network of facilities provides product diagnostics, repair, refurbishment for mobile, home entertainment and B2B products. Our technically-advanced diagnostic are regarded best in class, combining service excellence with continuous gains in cost efficiency.

Our industry-leading fault diagnostics and issue resolution technologies include the In-home Tester for set-top boxes, and our SmartChk applications suite for smartphones. These advanced diagnostic platforms improve consumer satisfaction with their devices and support our returns avoidance strategy Partnering with leading insurers, our Digital Care operations deliver innovative insurance and extended warranty programmes for our clients, protecting customers’ investments in mobile products.

Blancco is the global leader in data erasure management. Blancco software provides comprehensive data erasure for every type of electronic storage media, ranging from flash drives to solid state drives, virtual drives and cloud storage. Blancco is a vital part of any organisation’s security infrastructure, underpinning data retention policies and ensuring compliance with international regulations.

Tel: +44 (0) 1592 774 704 Stuart.williams@regenersis.com www.regenersis.com

LIBERTY GLOBAL

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than at present. Virgin Media also calculates the project will generate 6,000 jobs and 1,000 apprenticeships, with an overall benefit to the economy of £8 billion. Not surprisingly this commitment goes down well at government level, with UK Prime Minister David Cameron commenting: “Together with this government’s rollout of superfast broadband which has now reached more than two million UK homes and businesses, this additional private investment will create more opportunities for people and businesses, further boosting our digital economy and helping secure a brighter future for Britain.”

The investment illustrates a change in Liberty Global’s strategy as it matures from rapid M&A driven growth to a more sustainable, organic model, and doing this will demand different approaches to supply chain management.

“Much of what Willem and I are doing is looking at the opportunity of synergy and consolidation,” says Rounsley, “but we are also creating a planning and logistics infrastructure to support significant new network build in several European countries. That is an exciting and I’d even say unique part of what we are doing.”

“This additional private investment will create more opportunities for people and businesses, further boosting our digital economy and helping secure a brighter future for Britain” – David Cameron w w w. l i b e r t y g l o b a l . c o m

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Making your customers smile is our primary goal

www.teleplan.com

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33 years of supply chain and after-market service experience for connected devices, home entertainment equipment and networking devices

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Leading edge automated objective test solutions delivering consistent results

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Unrivalled test scripting capabilities

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Embedded lean culture and mind set resulting in high customer service program efficiencies

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Strong CSR commitment helping our customers to achieve their environmental impact and carbon footprint objectives

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Our innovative test solutions adapt as your business requirements evolve

LIBERTY GLOBAL

“We are also creating a planning and logistics infrastructure to support significant new network build in several European countries” – Steve Rounsley, VP Global Logistics

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Less is more, in the supply chain Consolidating the supply chain model around best-of-breed partners will be essential to this vision. “We are evolving onto a journey that sees us partnering with genuine global logistics providers and repair partners,” he continues. This will bring in us the scale and the level of innovation that we need to look after our existing business, and we are designing physical infrastructure to support the new opportunities like Operation Lightning.”

For Willem Vesters this means stretching the planning perspective progressively. “It’s

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meeting the challenge of Liberty Global’s transition from a company that buys and sells operating companies go to one that commits to being in the communications space for much. The UK is the most concrete and tangible example right now, however our wider ambition is to extend superfast broadband to 10 million homes throughout Europe.”

So instead of focusing on the company wide requirements for the next quarter he needs to be planning at least two years ahead.

“My ambition is to arrive at a ROI conversation and operationally manage that before we invest w w w. l i b e r t y g l o b a l . c o m

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Vi s i t o u r w e b s i t e : w w w. t e l e p l a n . co m Email: marketing@teleplan.com

Teleplan International N.V. is an industry leader in lifecycle care for aftermarket service, operating in the areas of Computers, Communications and Consumer Electronics. Focussing on Customer Care, Reverse Logistics, Parts Management, Screening & Testing, Repair/Refurbish and Resell/Recycle, Teleplan 33 years of proven performance providing value propositions throughout the supply chain from the point of purchase to the end of life. Teleplan innovate to consistently keep up with the advances in interactive connectivity and communication and our Telemade approach tailors to each individual customer’s needs.

Headquartered in Amsterdam/Schiphol, the Netherlands, Teleplan’s service centers have a global reach of over 95 countries and employ over 5000 people.

Our philosophy is simple – create the most optimized solution designed around our customers. Every solution design starts with a series of comprehensive discussions with the customer to understand their business drivers, strategy and learn what works well and has proven to work less effectively from their after sales experiences so far.

This process is led by our team of solutions architects who specialize in selecting the right approach to get the necessary insights which will help our customers the most. We understand that different customers have different needs, which is why at Teleplan, no two solutions are ever exactly the same.

We are proud to play a vital role in managing the environmental and social impacts of the computer, communications and consumer electronics industries. Our business is the provisionof repair services and, in the instance when a repair cannot be made, the recovery, reuse, recycling or safe disposal of products. The efficient and effective delivery of our services, enables our customers to manage faulty, damaged and waste products in order to reduce waste and prolong the life of the product.

Our engineers at our Innovation Center in Tallinn, Estonia lead the development of next generation technical solutions.

They also leverage and coordinate our global engineering community on key projects. Teleplan has introduced many test solutions to support our customers with their lifecycle care needs in radio access networks, smartphones, tablets, notebooks, cameras, HDDs and set-top- boxes to name a few.

We recently opened our first Customer Experience Centre in Roseville, California, USA, offering a new way for customers, prospects and business partners to engage with and understand Teleplan better a notable industry. The customer experience center will help visualize Teleplan’s range of end to end innovative supply chain capabilities, from product return to end-of life recycling, in a single location and will unlock new business opportunities. The center showcases many of the innovative and value added services Teleplan provides, including: Revolution, the after-market service industry’s first fully automated multi-brand smartphone tester; 3D printing for hard to source parts; and demonstrations of the way Teleplan’s first class reverse logistics capabilities have been used to support some of the world’s largest sporting events.

We are passionate about delivering great service

Sky Italia is synonymous with quality and customer satisfaction and to guarantee we deliver on our promise we are constantly looking for innovation. By introducing test automation and well controlled repair and refurbishment operating processes, Teleplan is instrumental in ensuring that every set-top box we deliver back to our customers has the highest standards. Matteo Pecci, Head of Supply Chain & After Sales, Sky Italia

Teleplan International N.V. World Trade Center, Schiphol Boulevard 201, 1118 BG Schiphol, The Netherlands

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in specific European areas. Return on investment should be factored in at the very earliest point, as we begin to extend our horizon and work with a larger project funnel, and a wider innovation funnel.” In order to develop this kind of capability we use knowledge partners like EY to get there.

A leaner logistics operation will play its part here, suggests Steve Rounsley. “Our vision is to become intensively partnering so that a small team of Liberty Global people will set the tone and direction, and manage the relationships with a small number of key strategic outsourcing partners.” He does not need to run warehousing, product customisation or transportation, things better done by specialist logistics service providers, distributors and repair partners.

There are two concurrent dynamics at work

27m Number of customers subscribing to Liberty Global’s communication network

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LIBERTY GLOBAL

Virgin Media’s logistics operation means handling anything from smart-phones to set-top boxes. With cabling, consumables and critical parts in the logistics mix – Kuehne + Nagel provide everything required to ensure Virgin Media roll-out their next generation optical fibre network.

From our 500,000 sq. ft. NDC in Wellingborough, Northamptonshire – Kuehne + Nagel are proud to serve 3,800 Virgin Media technicians and a field-store network of over 50 locations across the UK with 24-hour access to critical parts.

ABOUT KUEHNE + NAGEL With over 66,000 employees at more than 1000 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions.

www.kuehne–nagel.com 56 December 2015

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here, he points out. “On the one hand we are consolidating and using our skill to work with a smaller number of suppliers to advance the strategic goals of the business. On the other, there’s convergence within the supply chain itself; the number of true global or EU scale logistics providers is shrinking. As their clients we will pick the best global players to achieve the economics of scale.” And to work with a global company such as Liberty Global it is no longer enough to have a wide but patchy presence – they need to be strong in all territories.

The consumer the final judge Perhaps its most important benefit is that the evolving model helps maintain focus on the

“On the one hand we are consolidating and using our skill to work with a smaller number of suppliers to advance the strategic goals of the business. On the other, there’s convergence within the supply chain itself; the number of true global or EU scale logistics providers is shrinking. As their clients we will pick the best global players to achieve the economics of scale.”

– Steve Rounsley, VP Global Logistics

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LIBERTY GLOBAL

XPO Logistics team is proud

to support

Liberty Global with added-value

solutions

in Europe

Liberty Global relies on XPO Logistics’s proven e-commerce expertise, flexibility and capability to deliver high level supply chain services with the aim to bring satisfaction to the end-customer at European level.

Order preparation, next-day delivery, reverse logistics, our teams develop and manage tailor-made solutions supporting the expansion of Liberty Global’s activities in Europe.

CONTACT US: info.log.nl@xpo.com nl.xpo.com

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#1

in e-commerce logistics in Europe

Added value services:

Co-packing, automation, returns management, reverse logistics, control quality

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customer, whose expectations and desires are higher than ever. Over-the-top content must be delivered seamlessly, wherever, whenever and on whatever device the customer chooses. “Everything we do must be reliable and predictable, especially in the mobile arena: people’s mobiles are their best friend! Our job is to ensure their equipment and devices, can be upgraded or changed, kept going and repaired.”

Liberty Global’s ‘halo product’ is broadband, he says, just as important to the household as gas or electricity. Ensuring the network is up and running is a minimum expectation.

Another expectation is that they can choose the level of service they are comfortable with.

Across Liberty Global customers are able to choose single to quad-play services. Increasingly,

SUPPLIER PROFILE

XPO LOGISTICS

XPO Logistics is a top ten global provider of cutting-edge supply chain solutions to the most successful companies in the world. The company provides services for less-than-truckload transportation, truckload brokerage and transportation, last mile logistics, engineered supply chain solutions, high-value-add warehousing and distribution, ground and air expedite, intermodal, drayage, global forwarding and managed transportation. XPO serves more than 50,000 customers with a highly integrated network of over 84,000 employees and 1,469 locations in 32 countries.

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the self-install model is being chosen, people receiving equipment like modems and set top boxes through the post (to the home, a pick-up point a Liberty Global store, or to a workplace) and installing it themselves by following simple instruction. Others prefer to have them installed by a professional. All the complexity is at the back end. “We have to be able to cater for all those different needs. The days of ‘one size fits all’ belong in the past!” The final expectation is that the product (or service) will be delivered fast, and that it will work.

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While developing a more standardised product suite is inevitable, and can be achieved as equipment is replaced, with post production customisation addressing local variants, to call in everything in a single operation would be a mistake, even if that would simplify the supply chain. “We are in the happy position that our technology is continuously evolving to keep up with technology that evolves according to Moore’s Law!” Willem Vesters concludes. “Today’s high speed broadband is tomorrow’s low speed, and speed is the lever that moves the market on to the next generation of products. Legacy thinking can be an existential threat these days, however great the legacy offering,” he says.

It’s easy for a company growing this fast to overlook its societal impact but Liberty Global is too dependent on its communities for that. Apart from its headline mission of Promoting A Digital Society, which can be seen as part of the day job, and which it fulfils by supporting initiatives like the European Commission’s Grand Coalition for Digital Jobs, it puts sustainability at the heart of it operations, not least the supply chain. “Take just one example,” says Rounsley. “The recovery, reuse and disposal cycle used to be a cost to the business. Now we work with innovative partners to extract value at every stage. The programme has not only become self-funding, it is a revenue stream for the business – and we have achieved zero landfill in the UK. I am very proud of that.”

“Today’s high speed broadband is tomorrow’s low speed, and speed is the lever that moves the market on to the next generation of products” – Willem Vesters, VP Planning and Supply Chain

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Bringing home Bastion Written by Lucy Dixon Produced by Richard Durrant

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Building and then deconstructing the largest operational UK military base since the Second World War was an immense logistical challenge

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ou’ll have heard of Camp Bastion. The British Armed Forces base in Afghanistan became synonymous with the fight against the Taliban. But what you might not know is what was involved in creating a town the size of Reading in a land-locked country, while under attack from a pretty determined enemy. And unlike most towns, Camp Bastion needed the ability to evolve and fully support the troops there with everything they would need from vehicle maintenance to a hot meal. And then, of course, it would need to be dismantled and taken back to the UK again at the end.

The camp started as just a few tents back in 2005, but as the need for a logistics hub in Afghanistan became apparent, its importance grew, as Senior Infrastructure Office for the British Armed Forces in Afghanistan, Lieutenant Colonel Laurence Quinn, explains:

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“Initially we thought of Kandahar, but it was just a bit too far away to provide a forward hub of logistics, so that was the genesis of Camp Bastion. One of the key drivers was to place a hospital within easy reach of the guys engaged in combat on the ground. A metric we have is one hour between being a casualty on the battlefield and going in to surgery in the hospital, so the siting of the hospital was a key factor.”

The location of Camp Bastion was also central to where they thought the operation would be conducted, but out of easy rocket range, to learn lessons from Iraq and avoid indirect fire.

And another point in Camp Bastion’s favour was its location on top of an aquifer, which meant the team could drill down deep enough to get water.

But, as Quinn points out, Camp Bastion was only ever designed to be a small

FACTS 50 aircraft were packed up and brought back to bases across the UK 3,400 vehicles were checked and cleaned before redeploying back to the UK 26km2 size of built up area at Camp Bastion 3,5000m length of the camp’s runway in 2011 10-14k military personnel and contractors lived at Bastion between 2011 and 2012

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It’s not a military secret

KBR work behind the scenes for the Armed Forces As the Chinook climbs into a sky almost white with heat, soldiers prepare to patrol against an enemy hidden in the dust of the barren desert. This classic image of the British Army at war in the 21st century paints a powerful picture. But it only tells half the story of how the Armed Forces operated on the frontline in Afghanistan.

From the hub of Bastion to the outposts of Shawqat and Naridullah, deep into Helmand Province, a support force stood side-by-side with soldiers every step of the way; unseen, unheralded, but fuelling their fight, civilian defence contractors ensured troops could focus on what they do best.

The organisation which was backed by the Ministry of Defence to support the British military in greater numbers than any other on the frontline was KBR. It was the first in, and often last out of the conflict zones.

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ndy Nixon was on site at what became the military metropolis of Camp Bastion when it was still just two tents and a vast expanse of nothingness. Richard Card, Peter Bunting and Nixon were the first three KBR UK employees of near to a peak of 4,000 in Afghanistan, dedicated to supporting military operations behind the scenes. Together, they helped the military create cities out of sand, sustain homes from home for British troops and create a better life for all. For KBR, it became a vast scale operation providing 65 different services at 28 locations, spanning two fronts, in

the most demanding of environments. “The military call it ‘life support’ – and that seems pretty apt,” said Andrew Pringle. The President of KBR’s defence business, and a former Major General in the British Army, he said the past decade has been an era “when contractor support to military operations came of age”…“In the context of the ever decreasing size of our uniformed Armed Forces, the use of contractors by the military became accepted as normal, and then graduated into becoming essential.

I hope that this decade, of which KBR has been a fundamental part, sets the benchmark for what can be done.”

In a fog of moving parts and dust in Afghanistan, the one thing that stayed constant was perhaps most important: KBR was the only permanent presence. With such deep experience and knowledge it became the glue that bound together the inner workings of camps and campaigns, set against the regular turnover of personnel on six month military tours. “Continuity was one of our great strengths,” said Pringle.

“I presented to our staff the official Accumulated Campaign Service Medals, which is the military award for every two years of operational duty. Our people have got two or three bars on theirs because

they have been supporting operations solidly for eight or nine years. It’s a remarkable achievement – the equivalent of a soldier doing 18 operational tours back-to-back”.

From the moment troops arrived in-theatre to the moment they left, life was sustained at the hands of KBR’s often unseen army of support. They handled their cargo from the plane, delivered the tents they slept in, the food they ate, the water they drunk, laundered the clothes they wore; presented every day a working shower, a clean and functioning toilet, an emptied bin; transported troops where they needed in shuttle coaches or white fleet vehicles; washed down their military vehicles, maintained the roads they drove on, even the running track they jogged on. Last but not least, KBR serviced the air conditioners and

In the context of the ever decreasing size of our uniformed Armed Forces, the use of contractors by the military became accepted as normal, and then graduated into becoming essential. I hope that this decade, of which KBR has been a fundamental part, sets the benchmark for what can be done.�

Andrew Pringle, President, KBR Government Services

maintained the generators that gave them relief from the heat, warmth from the cold, power and light.

For all the different moving parts, there was a simple and powerful thread running through this work: it was to

create a better life for troops on the frontline; to allow them to focus on their job; to keep the mission moving forward. www.kbruk.co.uk

SUPPLIER PROFILE

From the barracks of Aldershot and Salisbury Plain to the camps of Afghanistan and Iraq, KBR is a trusted long term partner to the British military. We are world leaders in programme management, services, logistics and training, supporting the Armed Forces at home and abroad.

We have forged a trusted partnership with the Ministry of Defence over a quarter of a century – trusted partnerships and joint-working form the backbone of our culture. To deliver the most efficient and effective solution requires a fully integrated and joined-up approach and KBR prides itself on thinking differently and building upon lessons learned from across different sectors. We believe KBR’s leadership of complex, large-scale, global energy programmes provides experiences directly relevant to the UK defence environment as the military rethinks the way it does business. www.kbruk.co.uk

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base, a logistics hub, with a hospital. But over time, this changed. “We thought actually we need to invest in Bastion,” says Quinn. The runway wasn’t big enough to airlift, so it an expansion was invested in. And then a maintenance facility was built in Bastion, to avoid having to fly helicopters to Kandahar for essential work. So, bit by bit, Camp Bastion grew. It even built its own bottling plant for bottled water. “When we asked a logistics question, the answer always turned out to be to invest in Camp Bastion,” says Quinn.

Eventually, it had the same footprint as the English town of Reading. Although Quinn prefers describing it as more similar to Aldershot – with Gatwick Airport attached. Because during the peak of Camp Bastion’s operations, it had one of the busiest UK airports in at that time.

Building and sustaining such a base was an immense task – as was closing it down. Major Charlie Perkins, was the Adjutant of the Theatre Logistics Group, a role which involved overseeing

“When we asked a logistics question, the answer always turned out to be to invest in Camp Bastion” – Laurence Quinn, Senior Infrastructure Officer

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“The Theatre Logistics Group was responsible for taking all the kit and equipment, triaging it, deciding how it was going to be disposed of and what was going to be returned to the UK” – Major Charlie Perkins

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the breakdown of the camp. Perkins says: “The Theatre Logistics Group was responsible for taking all the kit and equipment, triaging it, deciding how it was going to be disposed of and what was going to be returned to the UK. The first unit deployed in March 2014 and we were all out by December of that year.”

Just nine months does not seem like a huge amount of time for such as challenge, and Quinn says that every single item was assessed to decide what was cost-effective to return to the UK and what could be disposed of or handed over to the Afghan National Army. He adds: “Then, the question is, how do we get the stuff back? This process works by first designing the last 90 days or so in the camp, working out what our footprint on the ground would be and what we would need and then working back from there.”

Perkins was involved in this from right at the start, as she explains: “I was in central Helmand back in 2012, decommissioning check points and patrol bases, so I saw the very start of the process. But we had something to collapse into – Camp Bastion. We had to think about how we were going to go through the same process with Camp Bastion itself.”

By the time the First Logisitcs Support Regiment turned up at Camp Bastion in March 2014, the big strategic thinking had happened. “We knew what our timeframe and deadlines were, so it was a case of rolling

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“Even if logistics wasn’t your day job – it touched everybody to some extent” – Laurence Quinn, Senior Infrastructure Officer

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on from what the previous Theatre Logistics Group had already started. And what we did find was that we managed to speed things up, which was great,” says Perkins.

The Theatre Logistics Group, at its absolute peak, consisted of around 800 people, with that number constantly reducing as the December deadline approached. But a far higher number of people were involved in the close down of Camp Bastion, as Laurence Quinn says: “It’s a lot more than you imagine and it depends on when you stop counting them! As well as those involved in Afghanistan on the ground, there was a large number of UK-based people too. Even if logistics wasn’t your day job – it touched everybody to some extent. And then the other hidden number is contractors, we had thousands of contractors involved.”

The closure of bases came under the acronym of BRAC-T - which is bases realignment and

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closure (transition) – and there was a policy on how it was conducted, including the condition kit and equipment was sent back in. Generally, says Perkins, as much as possible was done in Camp Bastion so a minimum of intervention was needed when it arrived back in the UK. Quinn adds: “A large amount of kit went by sea because flying wasn’t always cost effective, so it would fly out to marry up with sea transport. We did try some land movement but it took a long time and could only do with low risk items such as tented camps.”

And all this had to be done while not compromising the troops on the ground. Quinn says: “To the time we handed it over to the ANA, Camp Bastion was evolving. Stuff was still being built two months before it closed – because it was needed for our capabilities.

Everything we did was for our capabilities. Camp Bastion was an incredible achievement.”

Every single item was assessed to see if it was cost-effective to bring back to the UK

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Serving the PHARMA MARKET Written by Nye Longman Produced by Richard Durrant

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DUSSELDORF AIRPORT CARGO

DUS Cargo is 100 percent owned by Düsseldorf Airport

Situated in a major economic growth area at the heart of Europe, DUS Cargo is exploiting opportunities to offer its clients an even wider range of services 76

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D

usseldorf Airport Cargo annually handles >114,000 tons of cargo and has invested €3 million in a new temperature-controlled warehouse facility to meet the ever-growing demands of the pharmaceutical industry.

The company, which is owned 100 percent by Düsseldorf Airport, is also set to become one of the first cargo companies to attain IATA’s (International Air Transport Association) accreditation for the specialised handling of pharma products, a goal it hopes to achieve by early 2016.

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190 Thomas Schürmann, Head of Sales and Marketing at Düsseldorf Airport Cargo says: “We currently handle 25 airlines most of which are for full handling contracts and therefore we try to offer a wide range of services to airline clients to enable them to ship all kinds of commodities in and out of the airport.

“A very big project has been establishing the DUS Pharma Centre which has been equipped with special temperature controlled storage facilities. We have built 23 individual cells where

Number of jobs to be supported

by Dusseldorf Airport Cargo

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Dusseldorf Airport Cargo team

and the escalating pharmaceuticals business.

In 2014, pharma exports were worth a total of €5.5 billion to the state of North Rhine-Westphalia, in which Düsseldorf is located. Imports to the state amounted to €4.7 billion representing 12 percent of the pharma trade in Germany.

“In the past few years we have seen huge growth in pharma imports with products mainly coming from the US, but also exports too, and we wanted to be in a position to offer our clients the biggest range of commodities hence the investment in DUS Pharma Centre,” he says.

The main countries for pharmaceuticals exports from North Rhine-Westphalia are the US (12.5 percent of all goods); UK (7.7 percent); China (7.1 percent); Japan (five percent) while on the imports side some of the biggest countries sending goods are the US (9.5 percent); China (2.8 percent); and India (two percent).

“In 2013, it was rebranded Dusseldorf Airport Cargo to enable it to be more easily recognised as being part of the airport” – Thomas Schürmann, DUS Sales and Marketing Director

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DUSSELDORF AIRPORT CARGO temperatures can be set at a range of between two and 25ºC in order to safeguard pharma products.”

Düsseldorf is ranked among the top 10 of the world’s largest economic regions

Growth region Situated at the centre of Europe, the region around Düsseldorf is ranked among the top 10 of the world’s largest economic regions. More than 18 million people live within a radius of 100 kilometres.

It is also the heartland for numerous major international companies along with a wealth of medium-sized enterprises thus making its airport a major hub for the export and import of goods.

DUS offers a total of 12,650 square metres of storage facilities and has the capability to handle a wide range of cargo including

Sektion / section 1 2 x 26 m2 3 x 13 m2 5 Kühlzellen/ cooling cells 2° - 25° C/ 35,6° - 77° F

Your future is digital.

And just a wing beat away.

Boost your business with ELWIS – the complete, modular IT solution that covers all of your current and future needs in air cargo handling.

Now also available as a cloud solution.

www.lufthansa-industry-solutions.com

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segregated areas for dangerous goods, which are divided into three areas.

There are also two dangerous goods areas and a third one for radioactive material. “The only thing we are unable to handle is live animals because there are no facilities at the airport and no approval from the Veterinary Association,” says Schürmann.

Exports and imports Because of its proximity to such a vibrant economic area where there is a lot of manufacturing, DUS Cargo handles a wide variety of goods including textiles, electronics and foodstuffs, but its three largest product areas are automotive parts for car manufacturers, machinery

DUS Pharma Center

“We currently handle 25 airlines most of which are for full handling contracts and therefore we try to offer a wide range of services to airline clients to enable them to ship all kinds of commodities in and out of the airport” – Thomas Schürmann, DUS Sales and Marketing Director

Sektion / section 3 10 x 13 m2 10 Kühlzellen / cooling cells

Sektion / section 2 8 x 13 m2

2° - 25° C/ 35,6° - 77° F

8 Kühlzellen/ cooling cells 2° - 25° C/ 35,6° - 77° F

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DUSSELDORF AIRPORT CARGO

16m Euro The amount of revenue generated by Dusseldorf Airport Cargo

Component of success The automotive parts business has grown from out of the success of German car manufacturers such as Volkswagen, BMW, Audi and Porsche.

“Most of the major car manufacturers are in the South but we have a lot of local suppliers located near Düsseldorf and they send spare parts equipment and components all over the world,” says Schürmann.

Established in 2001 following the German government’s privatisation process of Düsseldorf Airport, the cargo company was originally named Düsseldorf Cargo Logistics. In 2013, it was rebranded Dusseldorf Airport Cargo to enable it to be more easily recognised as being part of the airport.

Today, DUS Cargo serves 25 airlines including Emirates, Lufthansa, American Airlines, Airlines, and Turkish Airlines, Air Berlin, Etihad and Mahn Air. Exacting standards Training and retaining the company’s 190 staff is an important part of its operations and keeping employees up to date with the latest

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industry standards is regarded as paramount.

“When we talk about dangerous goods, for example, management and staff are trained to meet regulations issued by IATA,” explains Schürmann. “As with the new certification for pharma products we decided to go-ahead with it while many airports are still just in the early discussion stages.

“We decided to go for it because we strongly believe that in the future it will become an industry standard.”

Whatever is happening in the global economy impacts DUS Cargo’s business and it has little control over what the markets are doing, nonetheless the company constantly endeavours to stay at the top of its game.

“It has been a challenging year and we are facing volatile volumes in the industry particularly with China’s decline in growth. However, trade is getting a bit better now,” concludes Schürmann.

DUS Cargo serves 25 airlines including Emirates, Lufthansa, American Airlines, Airlines, and Turkish Airlines, Air Berlin, Etihad, Mahn Air

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Global Vision Written by Sheree Hanna Produced by Dennis Morales

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RAKHA AL-KHALEEJ INT’L LLC

Rakha Al Khaleej International (RAI) is a leading polymer distribution and chemical trading company based in the UAE and has grown from just serving the GCC region and Yemen to become an international player 86

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akha Al Khaleej International (RAI) is celebrating its 25th anniversary this year with plans to further expand its geographic reach across the globe becoming an even bigger and better business than it is today.

The company primarily distributes polymers and trades chemical and petrochemical products and has grown exponentially since it was first established in 1990 to supply the GCC region and Yemen.

Just 10 years later, its first international subsidiary was created in Jebel Ali, Dubai, and in less than a decade RAI

EUROPE

Various stocking points globally ensure speedy supply of polymer resins

International had established subsidiaries in almost all polymer hubs worldwide.

Today, the company has operations in Europe, USA, Africa, the Far East and Latin America, but according to CEO Henry Roth, initiatives are afoot to broaden the company’s footprint.

He says: “We are a progressively growing this privately-owned company located in Dubai.

“Our owner has taken an interesting business approach over the years. He acquired shares in other distribution firms internationally and so we have become a network of companies that are either fully- or majority-owned.”

11 number of territories RAI International operates in

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Around the globe RAI International boasts 14 locations in 11 territories worldwide. Earlier this year, it formalised a partnership with a group of businessmen from Saudi Arabia to establish a company to distribute product across the Saudi market.

Roth says: “We hope over time that this partnership will help us establish a link to interact with Saudi producers and facilitate exports out of Saudi Arabia to our various sales outlets across the world.”

In India, RAI International operates from two locations, a distribution centre in the South and an office in Mumbai, while there is also an office in Pakistan.

There is also a fully-owned distribution

Said Al Naqeeb, Founder and Chairman Rakha Al-Khaleej Int’l LLC

Expansion across Europe is on the cards for RAI International

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R A K H A A L - K H A L E E J I N T E R N AT I O N A L L L C

About Emirates NBD Emirates NBD is a leading banking Group in the region with operations in the UAE, Egypt, the Kingdom of Saudi Arabia, Singapore, the United Kingdom and representative offices in India, China and Indonesia.

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Polydist Europe would like to congratulate RAI on their 25th anniversary and wish them many more happy years to come!

The vital link in your polymer supply chain www.polydistuk.com sales@polydistuk.com +44 (0) 1283 517517

EUROPE

“I believe a lot of the product from the US Gulf coast region will eventually find its way to Latin America, therefore, we hope to reactivate our presence there” - Henry Roth, CEO

company in Turkey which imports products from various suppliers and locations. It also sources product from Asia and the Gulf.

“We have our eye on Iran because it has reentered the global scene. Historically, before trade embargoes were implemented, Dubai was a major business hub for Iran and it has maintained those relationships,” says Roth.

Widening the network RAI International currently has a representative office in New York, USA, but Roth says it is intended to eventually create a fully w w w. r a i - u a e . c o m

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RAKHA AL-KHALEEJ INT’L LLC

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registered company in either Houston or around the US Gulf of Mexico area.

“We would very much like to tap into the stream of product that is coming on line as a result of the boom in shale gas and oil,” he says.

“We have been hesitant to create a legal presence in the US, one of the reasons we haven’t is because of the situation with Iran, but now it is becoming acceptable again and I think the embargo will eventually be lifted.”

Expansion across Europe is also on the cards for RAI International, which already operates from three locations – the UK, Spain and the Benelux.

In England, a majority-owned affiliate company called Polydist UK is probably the largest, independent polymer distributor in the UK. It operates subsidiaries in Spain and Amsterdam.

“In Europe, we have strong growth ambitions. We hope that before year end we could have legal representation and commercial activities in both Germany and France, so we could well go from three to five locations very soon,” says Roth.

Reinstate operations The company also has representative offices in Jordan, China and Korea and before economic difficulties hit South America had a distribution operation in Brazil.

“We continue to sell in Brazil and along the West coast of Latin America,” says

‘RAI International has around 40 employees at its Dubai headquarters and within its global network a further 100 staff members.

It also operates a warehouse and small compound facility in Jebel Ali’

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RAKHA AL-KHALEEJ INT’L LLC

A trade fair

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Roth. “That is another reason why we are keen to establish a legal presence in the US. I believe a lot of the product from the US Gulf coast region will eventually find its way to Latin America, therefore, we hope to reactivate our presence there.”

RAI International has around 40 employees at its Dubai headquarters and within its global network a further 100 staff members. It also operates a warehouse and small compound facility in Jebel Ali. The diverse and expert staff, experienced management, optimised logistics and comprehensive financial services allows RAI International to be able to guarantee consistency and excellence of execution for customers and suppliers alike.

“We do look after the training requirements

EUROPE

The team at a recent trade fair

of our staff, but generally we rely on outsourced training tools for this purpose,” explains Roth. “If for example we have an accountant that needs training we will go to a specialised provider to fill the skills gap.”

Product is distributed normally via land and sea and in a bid to strengthen the supply chain, RAI International has recently chartered an ocean going vessel and may well expand its use of such means if the business warrants it.

Bonded facilities Customers can also take advantage of RAI International’s bonded warehouse facilities located in Turkey and China. Roth says: “This is primarily for customers who wish to reexport or polymers for off-shore production.

40 The number of staff employed

by Rakha AlKhaleej Int’l LLC

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RAI HQ Building

“Where we operate bonded operations it means that you don’t localise the product and it stays in a duty free state until it is exported again.

“So, for example, a polymer could be used at an extrusion facility where our customer is maybe exporting suitcases or plastic bags out of China to the US. The focus is exporting the product and not acting for the China market.”

With regard to the company’s geographical initiatives, it is always looking to diversify its product streams and network of suppliers that feed its polymer chain.

“We have commodity and speciality grades and there is also growth dictated by market needs, which is why we are introducing some ‘green’ chemistry in the polymer sector,” said Roth.

Green initiative RAI International has secured the rights to an oxo-biodegradable additive which when added to a polymer conversion makes the product fully decompose and biodegrade within a selected time span at the end of the product life cycle.

“We have found this state-of-the-art technology in Japan and have secured the rights. We will try to establish market position and penetration for this speciality additive we believe fits with the evolving demand for environmentally-friendly products,” adds Roth.

Having 25 years of experience under its belt has helped RAI International to become the

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The Polydist team at a recent ceremony

strong and forward-looking company it is today.

This year’s anticipated annual group turnover is expected to be in excess of $500 million.

“As we grow and diversify both product wise and geographically, we will continue to expand our IT capabilities to synergise and to reduce cost by common practices and approaches,” says Roth.

“We have been around for 25 years and we hope to still be around in another 25 as a much larger and even more successful company.” w w w. r a i - u a e . c o m

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El Mercado Janabiya neighbourhood market

A real esta

ate success story Written by Sheree Hanna and Produced by Dennis Morales

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FIRST BAHRAIN

A Bahrain and Kuwait-based development company has its eye on expansion into new territories

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irst Bahrain Real Estate Development Company is celebrating its success with plans to share its expertise and establish partnerships in opportunity-rich markets such as neighbouring Saudi Arabia.

The real estate development company, which operates out of Bahrain and Kuwait, is riding on the crest of a wave after the completion of its inaugural project last year and the 2014 announcement that it had made its first profit for four years.

MIDDLE EAST

Chief Executive Officer Amin Al Arrayed says: “Our partnership agreement with Kuwaitbased Mazaya Holdings is a clear example of how we have engaged and leveraged our footprint in Bahrain to support a GCC company. Now I want to do the same in Kuwait or Saudi Arabia where I would be interested in investing to develop with partners that could provide First Bahrain with that access.

“Real estate is a local business and really it’s not possible to manage effectively across borders. You need to have a presence or engage in a partnership that brings you close to your tenants. We have successfully convinced others that we are the right partners and we hope to continue doing that.”

COMMERCIAL DEVELOPMENTS The Majaal Warehouse Co, First Bahrain’s subsidiary, was appointed by Mazaya Holding Co to guide development of its $20 million industrial facility, located at Bahrain Investment Wharf (BIW) in the Salman Industrial City, and also act as facilities and leasing managers.

Majaal is a flexible-use industrial facility now operating at full occupancy and providing a base for some 30 businesses representing a range of activities from FMCG distribution to small manufacturers.

BIW is strategically located close to Bahrain International Airport and has easy access via the King Fahd causeway to Saudi Arabia. “Majaal

215,899

KD

The amount of Revenue generated by First Bahrain in 2014 “Real estate is a local business and really it’s not possible to manage effectively across borders. You need to have a presence or engage in a partnership that brings you close to your tenants” – Amin Al Arrayed, CEO

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FIRST BAHRAIN

P.O. Box 22964, Manama, Kingdom of Bahrain Tel: +973 1729 6922, Fax: +973 1729 6933 E mail: info@sanadengineering.com

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Key Personnel

Amin Al Arrayed Chief Executive Officer

is heavily dependent on the trade between Bahrain and Saudi an increasingly important dynamic for Bahrain,” explains Al Arrayed.

“The Saudi market is huge and we are keen to understand this new realignment in the GCC, and vast opportunities the Saudi market has to offer.”

First Bahrain was founded in 2005 in Kuwait and 2007 in Bahrain, and in December 2014 reported its first profit, KD 215,899 representing its largest gain since the collapse of the regional retail market in 2007/2008.

RETAIL MARKET First Bahrain is also behind the construction of a new retail centre and residential project in Janabiya covering an 86,000 square foot

Amin Al Arrayed has skillfully provided wise and stable leadership to the Company throughout a period of tremendous market volatility over the past six years. He brings an in-depth knowledge of banking, financial services and real estate developed over an 18 year career.

He holds a Master’s degree in Business Administration from the Kellstadt Graduate School of Business at DePaul University, Chicago, USA; and a Bachelor’s degree in Economics from the University of Redlands, California, USA.

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FIRST BAHRAIN

Key Personnel

Daniel Taylor Chief Financial Officer An entrepreneur, with a diverse career spanning 26 years, Daniel Taylor has a wealth of operational and management experience.

At First Bahrain, he leads the Operations and Finance teams, overseeing the planning and execution of the Company’s activities; contributing directly to the achievement of the Company’s strategic objectives.

Prior to joining First Bahrain, he was General Manager of New York Coffee, and General Manager of Mariner Technologies, where he was the chief architect of the GCC business news portal, TradeArabia.com.

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plot to provide a new supermarket, three restaurants and 23 shop. Building work has commenced and the centre is due to open in the second quarter of 2016.

Kuwait Finance House is providing funding for the $30 million project, which also includes a plot for residential development. It is being designed by Sanad Engineering and contractors Almoayyed Construction Group has been appointed to carry out building works.

“The development is situated in a very nice area of Bahrain and the name El Mercado was chosen to reflect the Spanishstyle architecture,” says Al Arrayed.

Also under study is a $150 million scheme, located in the heart of Bahrain’s Seef

MIDDLE EAST

District comprising a 13,000 square metre mixed use residential development.

COMPANY ETHOS First Bahrain’s success has undoubtedly been built on strong foundations relating to its core values of integrity, innovation, partnership and prosperity.

As a Sharia-compliant business, the company operates a transparency policy and in the same way it would send new contracts to lawyers for approval also sends information to a Sharia board for review. “Our shareholders have chosen to invest in us because we are Sharia compliant therefore we have to ensure our compliance and maintain codes of conduct

Key Personnel

Yasser Abu-Lughod Chief Development Officer Yasser Abu-Lughod brings over 29 years of international project management and engineering experience to the team at First Bahrain where he serves as the Head of Development, leading the Company’s development efforts from concept to construction to commissioning and beyond.

He holds a B.Sc. in Civil Engineering from University of Wisconsin, Milwaukee; USA. He is a Charted Professional Engineer and a member of the Institution of Engineers in Australia and a holder of the Project Management Professional certification (PMP).

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FIRST BAHRAIN in keeping with Sharia,” says Al Arrayed.

The company has a small core staff of 13 based at its offices in Bahrain and Kuwait and outsources services such as marketing and legal thus allowing it to select providers who are best in market, ensuing high level of quality in terms of the people it deals with.

Al Arrayed says: “Internally we have a very flat structure so there is not a lot of bureaucracy and we are able to make quick decisions. We have the ability to do a bespoke deal which has been instrumental to our success.”

While many companies outsource to leasing agencies, this is one aspect of the business First Bahrain keeps in house.

It means it can offer prospective

“Our shareholders have chosen to invest in us because we are Sharia compliant therefore we have to ensure our compliance and maintain codes of conduct in keeping with Sharia” – Amin Al Arrayed, CEO

MIDDLE EAST

tenants a greater degree of flexibility during negotiations as it is not governed by working from a rate sheet. “There is nothing between the decision maker and the tenants and in this market that has made all the difference,” he adds.

COMMUNICATION IS KEY When it comes to hiring and retaining staff, First Bahrain looks first at skill sets and aims to motivate employees by ensuring everyone is kept up to speed with company business and is involved in the decision-making process.

“Our individuals are very much part of our strategy and I think it is huge motivator once you have your staff reacting as fans of your organisation because they are empowered and aware of the ongoing projects,” he says. “We don’t silo people and everyone, including the junior staff, is made aware of what is going on and that is really creating the culture we want.”

Al Arrayed is on the board of the University of Bahrain’s Business College and Bahrain Polytechnic Logistics Management programme.

The company has good relationships with government bodies offering training opportunities and regularly places interns who provide new energy and a prospective pool of talent for future employment.

He says: “We run bonus schemes and if we hit our targets we reward our staff. We also provide clear career trajectory planning so employees can see how in the future they can

13 The number of core staff located in its Bahrain and Kuwait offices

First Bahrain looks first at skill sets and aims to motivate employees by ensuring everyone is kept up to speed with company business

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FIRST BAHRAIN

assume senior posts. This is, I believe, the reason many people have stayed with us.”

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SUSTAINABILE EFFORTS First Bahrain has strong corporate responsibility culture and takes the issue of sustainability extremely seriously.

In December 2013, 3BL Associates Consultancy was appointed as Corporate Sustainability Consultant for its industrial facilities projects with the aim of providing key recommendations to improve Majaal’s operational efficiency through a corporate sustainability framework.

Al Arrayed says: “An example is when

MIDDLE EAST

we advanced the project in Janabiya we got a positive response from the local community because they know what kind of developer we are. If you look at the rendering on the project it is very green and complements the local environment. “There is a lot of innovative thinking. In our industrial facilities, we have installed sky lights for energy efficient ambient lighting and used insulated panelling for temperature control. We have also invested in landscaping on our warehousing project, which is unheard of. We want to beautify our projects and make people happy.�

In First Bahrain’s industrial facilities, it has installed sky lights for energy-efficient ambient lighting

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Dream weaving

Written by: Lucy Dixon Produced by: Daniel Prit

tchard 111

O R I E N TA L W E A V E R S G R O U P

The ability to respond to changing markets has helped Oriental Weavers become one of the world’s most successful carpet manufacturers

O

ne of the world’s largest carpet manufacturers, Oriental Weavers Group was founded in 1979 by industrialist and entrepreneur Mohammed Farid Khamis. The company’s Supply Chain Director, Tarek Shedid, has been working for the company for just over a year and, in this time, has implemented a centralised system for procurement, planning and warehousing, as well as moving some previously outsourced operations in house. This vertical integration helps to reduce costs by allowing economies of scale and ensuring the company is in control of both production and distribution.

Shedid says: “Our strategy is to transform to a secure supply chain model whichwill include

Oriental Weavers produces three grades of machine woven carpets

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three levels: content, technology and culture.

We have central corporate procurement for the group and we have central logistics for the group, which includes shipping, customs clearance and taxation. By the end of this year, we will have covered the whole activity over the group.�

Oriental Weavers produces three grades (A, B and C) of machine woven carpets and rugs for the market, and it also operates as OW Hospitality, which produces woven broadloom products, with offices in London and the American cities of Dalton, New York and Las Vegas. In 2014, the company produced 113 million square meters of carpet and rugs, which equals 5.7 billion Egyptian Pounds, a three percent increase on

17,300

Number of jobs to be supported

by Oriental Weavers Group

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O R I E N TA L W E A V E R S G R O U P

Materials. Powering Ideas.

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Trinseo textile binder solutions deliver success through innovation, market expertise, and operational excellence. www.trinseo.com

AFRICA

2013. Shedid speaks fluent Arabic, English and French – he studied for an MBA in France and has previously worked in the UK – languages are incredibly useful as Oriental Weavers operates on a global stage, with facilities in China and the USA, as well as Egypt (95 percent of production takes place in Egypt).

Shedid explains that the company uses cost efficiency, technology and innovation to deliver growth. “A flexible production capacity that can respond to market conditions exists across all price points,” he adds. With products to suit every budget, Oriental Weavers ensures it is successful across different sectors.

Part of its flexibility is achieved by having some of the biggest factories in the world and a fully integrated production line, capable of exporting to around 130 countries worldwide.

Oriental Weavers had traditionally imported

Oriental Weavers’ HQ

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“We now have to think outside the box to innovate and keep our position as market leader” – Tarek Shedid, Supply Chain Director 116

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Oriental Weavers owns some of the largest factories in the world

polypropylene, a raw material from the Gulf, as well as China and Korea, and Shedid believes that moving away from this is crucial, so that any issues in these areas will not affect production.

It now operates a complete production process — from producing polypropylene granules as raw material for synthetic fibres, to spinning and dyeing yarn. And then weaving, finishing, packing, delivering and distributing the products through its domestic and international distribution facilities and retail outlets.

Shedid also talks about the importance of amending the corporate structure of the company. “Oriental Weavers is currently changing so it can adapt to the markets. For example, we now have to think outside of the box to innovate and keep our position as market leader.”

Examples of such innovation in order to meet the company’s 2020 objectives include being w w w. o r i e n t a l w e a v e r s . c o m

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O R I E N TA L W E A V E R S G R O U P

Oriental Weavers exports around 55 percent of its production

the first in the world to develop four millionpoints-per-square-metre technology and an automated carpet warehouse – the only one of its kind in existence. Oriental Weavers exports approximately 55 percent of its production through a distribution network that includes offices in the United Kingdom, Egypt and the United States. Distribution and warehousing centers in Egypt, the USA, UK and Canada offer direct access to the largest markets in the world.

Such a global business is a challenge, as Shedid explains: “It is not easy because the market is very dynamic and the competition is very aggressive. We have a lot of challenges, especially in Egypt, such as the foreign currency shortage. But Oriental Weavers is able to withstand this given our international exposure. As for the energy shortage in Egypt, 118

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we did not suffer from this due to our diversified supplier base of the oil-based raw materials.”

As a result of the restructuring, Oriental Weavers has been working closely with a consultancy which can give an impartial view.

Shedid adds: “This has helped us to have the right direction for the coming 20 years, but we needed someone with a helicopter view to give us this clear direction.” The direction Shedid talks of includes its focus on ensuring it has a world-class workforce. Shedid himself has been working with HR to develop a training programme to make the most of its 17,000 staff and allow talent to be developed from within.

He adds: “We have the best salary structure, as well a bonus scheme, a retention policy and an end of service policy. All of that is designed to create loyalty for the group, a group family.” w w w. o r i e n t a l w e a v e r s . c o m

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Knichel Logistics

A company culture where everyone is family Knichel Logistics has been rising quickly in the industry, led by CEO Kristy Knichel Written by: Eric Harding

Produced by: Jason Wright 121

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OTR department

K

risty Knichel had a unique upbringing as the daughter of a successful CEO. In turn, she has come full circle to lead her own unique company that continues to solidify its spot in a very competitive and ever changing thirdparty logistics (3PL) environment.

Western Pennsylvania-based Knichel Logistics has positioned itself as a best-in-class 3PL company, with a strong focus on intermodal rail and a reputation of superior service for its customers.

Through this, Knichel has become one of the industry’s fastest-growing 3PLs by offering customized 122

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solutions, priding itself on excellent customer service and recognizing its employees are the backbone of the business.

A new era After the company was founded in 2003 by her father William Knichel, Kristy Knichel took over the family business as President and CEO following her father’s retirement in 2007.

Since then, Knichel has won the Business Woman First award from the Pittsburgh Business Times, the Distinguished Woman in Logistics award from the Transportation

USA

Intermodal department Intermediaries Association, and also wrote an article about her experiences in the business featured in Forbes Magazine. The company was also recognized on the INC 5000 list in 2012 as one of America’s fastest-growing companies.

But Knichel hasn’t had the motivation to achieve this all on her own. There’s always been something else pushing her in the back of her mind.

“What drives me the most is proving to myself and to my father that I can do this,” said Knichel.

“It’s a male-dominated business that we’re in, so I have to push myself harder to be on the same playing field and earn the respect of others in the industry.

“I know that’s why my father was hard on me.

But I can’t complain.”

“Employees are the backbone of my business.

Without my people, we would not be here today. The number one reason I am successful is because of my people” – Kristy Knichel, Knichel Logistics CEO

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KNICHEL LOGISTICS

– Kristy Knichel, Knichel Logistics CEO

ATADEX

People first Knichel has taken a very specific path to achieve such great success. It begins with Knichel Logistic’s investment in people. Employees are a top priority and are taken care of like they are part of the family. It has become a near obsession of Kristy’s to create the best working environment possible for her employees. The fruits of her labor have been recognized in year after year Pittsburgh Business Times Best Places to Work awards.

“Employees are the backbone of my business,” said Knichel. “Without my people, we would not be here today. The number one reason I am successful is because of my people.

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Knichel Logistics staff during customer service week “We have been able to retain our employees for a long period of time with low turnover. Our customers are talking to the same people and our employees keep learning, so they are able to provide a seamless and operationally effective experience to our customers.”

Knichel continued, “Customers in this business want to ship their freight and get it done right away.

If you don’t understand what you’re talking about, they can get aggravated and may want to use someone else. That’s definitely something we want to avoid.”

Some of the many ways in which Knichel shows a commitment to its employees is by bringing in massage

therapists multiple times each year, awarding employees extra time off, and taking the entire office staff out to Pirates games. They also offer a gym membership that is fully paid for by the company, and for those who use it, employees are awarded an extra 30 minutes during lunch.

“As the owner, I go around and talk to everyone and thank them for their hard work,” said Knichel. “We also share our numbers with employees so they know what’s going on within the company and that they are a part of that success.

“One of the big things is just listening to our people. We ask our employees for their opinions. We don’t act like we know everything,

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Customer service week Pajama day because I certainly don’t know everything.”

Besides basing its priorities around the needs of its workforce, the company also pays special attention to the type of people it brings in. Knichel said one of the top traits Knichel Logistics looks for in potential employees is whether or not they fit into the company’s culture.

“Fitting into the company culture is non-negotiable. When looking at potential hires, it’s important that we feel like they could be somebody we can hang out and spend time with outside of work,” said Knichel. “Also, 126

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they must be trustworthy, loyal, dedicated, a forward thinker and have a positive attitude.”

Another aspect that is important to Knichel Logistics is contributing to the community and society through charity work.

One of the largest organizations the company works with is Positive Athlete Pittsburgh, an organization that works with local high schools to show students they should keep a positive attitude about life, no matter what obstacles they’re forced to overcome. Former Pittsburgh Steelers wide receiver Hines Ward is heavily involved in the program.

KNICHEL LOGISTICS

USA

In addition to helping high school students, Knichel also awards college scholarships twice a year.

compromised as the company continues to grow. This includes automating specific operational activities and implementing best Staying ahead of the rest practices to ensure the customer Knichel has a clear vision of what stays in the forefront of everything the perfect logistics flexibility they do. looks like.

“What I’ve found works the best “It’s the ability to react to our is assigning a CSR to each account customers’ needs and offering by mode. They’re responsible for a solution no matter what,” said knowing what’s going on with each Knichel. “If it’s important to our shipment every step of the way,” customers, it’s important to us.” said Knichel. “Our staff understands Knichel Logistics offers customers the customer comes first, and they customized solutions, understanding work to satisfy the customer’s needs that one size doesn’t fit all. no matter how challenging it can be.

With the shipment mode of “Our job is to provide a solution intermodal transportation continuing with no excuses,” she said. to grow, as well as the continued growth of the third-party segment, Key partnerships Knichel Logistics is in a prime With an understanding that it position to take advantage behind has a social responsibility to the its existing wholesale contracts with environment, Knichel Logistics the class-one railroads and carrier has developed a partnership with relationships.

SmartWay to continue shipping Customer service is key to customers their product in the most Knichel Logistics’ success. The efficient ways possible. company continues to focus “This includes partnering on operational effectiveness to with underlying carriers that are ensure the element of personalized SmartWay partners and continuing customer service is never to focus on mode optimization for w w w. k n i c h e l l o g i s t i c s . c o m

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Finance Department members Rachael Shaffer, Tammy Miles, Nicole Papinchak customers,” said Knichel.

Knichel Logistics has wholesale rail contracts with the class 1 railroads, which include the Union Pacific as well as CSX, to ship its freight via railroad since 2003. The contracts provide Knichel with access to approximately 70,000 53’ intermodal containers, and it services shipments through its network of core drayage carriers in every major intermodal market.

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through its own network of carriers, which results in better control and ultimately better and more consistent service.

To further expand its service offerings and increase its overall value proposition to its customers, Knichel Logistics created a separate company – Knichel Logistics LTL – by purchasing a BlueGrace Logistics franchise in May of 2015. This business opportunity has substantially raised Knichel’s ability to offer seamless LTL service to its existing customers while simultaneously attracting new business.

USA

Evolving technology Two years ago, Knichel Logistics implemented a new operating system for its intermodal and freight brokerage divisions. This transportation management software created by Quantum Edge Technologies has allowed Knichel to continue to increase its operational effectiveness and overall service that it can provide its customers.

The company also purchased new analytical, business intelligence software called Domo last year, which syncs with its transportation and accounting software to give real-time data on how the business is operating.

“We can see everything from how operations are running to how the sales group is doing in real time,” said Knichel. “I even have an app on my phone so I can check when I’m away on a business trip.

In the future, Knichel Logistics is looking to continue to build on the growth it has had as a company in recent years. This includes year over year double-digit revenue growth over the past 10 years as a whole, and regarding LTL specifically since opening its Blue Grace franchise in June, Knichel Logistics has already tripled its LTL business.

“We expect the LTL business to grow at a hyper-growth pace in addition to 10-15% year over year growth for the company as a whole.” said Knichel.

Company Information INDUSTRY

Logistics HEADQUARTERS

5347 William Flynn Hwy Gibsonia PA, USA, 15044 FOUNDED

2003 EMPLOYEES

40 REVENUE

$50 million PRODUCTS/ SERVICES

Logistics

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Innovating logistics from end to end With a fleet of new technology, Kuehne + Nagel is helping its clients achieve greater transparency and understanding throughout their supply chains Written by: Sasha Orman Produced by: Vince Kielty

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oday more than ever before, transparency and clarity is vital in the logistics world.

To satisfy consumers and partners, a business must be able to clearly track and supply updates on materials and finished products at every point along the supply chain.

Kuehne + Nagel is committed to achieving this supply chain connectivity with an evolving suite of cutting-edge solutions that are 132

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practical and grounded in real world logistics.

The start of a strong journey with KN FreightNet In the business world, time is money.

But speed is not the only factor involved in finding the right logistics partner: accuracy and dependability are also critically important. In 2014 Kuehne + Nagel launched KN FreightNet in select test cities

SECTOR

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in Germany and the United States—today the company has made KN FreightNet a global focus, aiming to raise the worldwide bar on what a logistics provider can do for its clients.

KN FreightNet is an online solution that allows clients to obtain quotes and book import and export shipments more efficiently and conveniently than ever before. Quotes include fuel and security surcharges up front, so there are never any cost surprises on the back end, making for smoother and more stress-free transactions.

By entering just a few key shipment details, clients can receive accurate and binding quotes within seconds and then place orders directly through the program either immediately or up to 14 days later.

SUPPLIER PROFILE

BUSINESSFRIEND

Businessfriend is the Ultimate App - a One-Stop Social Media Destination for Professionals Discover, connect and share with your colleagues and peers.

Communicate, manage and store your content and notate all aspects of your working life.

Website: www.businessfriend.com

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Material Handling solutions for all Applications

Crown Equipment is proud of our international association with Kuehne & Nagel

crown.com contact.singapore@crown.com

The Perfect Partner ...

B H S Kinetic, known for our innovative logistical solutions, specializes in the following: • Customized Transportation • Sensitive Equipment Move • Warehousing B H S Kinetic

• Packing / Crating • Mechanical Installation

SO, WHAT’S YOUR MOVE?

Tel: +65 6261 2665 | Fax: +65 6262 0334 | Email: info@bhskinetic.com | Website: www.bhskinetic.com An ISO9001, 14001, 18001 certified, BizSafe Star, STP Accredited Company

KUEHNE + NAGEL Through KN FreightNet, users can: • Easily compare pricing and delivery dates between air, land, and sea freight options • Calculate shipment date deadlines based on an input requested delivery date • Find the closest Kuehne + Nagel station in both your arrival and departure countries for effective planning • Use and save templates to save time when making similar reorders • Keep quotes in one convenient place for comparisons and bookings later on.

The availability of templates and saved shipping data is especially vital in providing clients with a clearer supply chain, allowing them to easily look back over both confirmed shipments and quotes

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so that business decisions of the past can influence decisions in the future. This further simplifies the user experience for Kuehne + Nagel clients, while ensuring that clients can rely on receiving clear and upto-date pricing on each return use.

“We are proud to be a firstmover in our industry and we are committed to making processes as easy as possible for our customers,” Tim Scharwath, Executive Vice President Air Logistics explained.

“The launch of KN FreightNet not only reflects current market needs, but also the ever-increasing trend towards e-commerce solutions.”

Following the journey with KN Login “Companies face increasing pressures and complexities within supply chains,” states Kuehne +

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FPS Global Logistics Pte Ltd is a subsidiary of Singapore Post Limited, the designated Public Postal Licensee for Singapore. Our services include: • • • • •

LCL cargo consolidation services FCL shipments Project cargo Multi-modal shipments Import clearance

• • • • •

Local delivery, including last mile delivery Cross trade shipments Buyers’ Consolidation Container trucking services Warehouse terminal & CFS operations CONTACT US: FPS Global Logistics Pte Ltd 1, Changi South Lane, #03-01 Accord Famous Districentre Singapore 486070 T: +1 65 6587 1888 F: +1 65 6785 3588 E: admin@famous.com.sg

www.famous.com.sg

FOR ENQUIRY enquiry@herculesproject.com.sg

Hercules Project Logistics provides comprehensive logistics services such as warehousing, special project, transportation and logistics-related consultation services.

DELIVERY ALWAYS ON TIME

Office: 124 Pioneer Road Singapore 639584

Warehouse: 20 Gul Way Singapore 629196

Tel: +65 6863 6386 Fax: +65 6558 7042 Web: www.herculesproject.com.sg

KUEHNE + NAGEL Nagel. “With growing numbers of suppliers, customers and partners, end-to-end visibility has never been more critical in order to achieve sustainable success and competitive advantage.”

Kuehne + Nagel understands that the phrase “out of sight, out of mind” is never an option for a successful business. With the launch of supply chain management tool KN Login, Kuehne + Nagel grants clients full and individualized web access to important data allowing them to take full stock of their inventory and supply chain and to improve visibility within their supply chain from end

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to end. “This is a comprehensive supply chain management platform developed to give customers a bird’s eye view of their entire inventory in motion, allowing them to optimise critical logistics, procurement and customer service processes,” states the company.

By accessing their KN Login web account, users gain real time access to data ranging from order books and inventory to shipping documents and invoice numbers.

Meanwhile an interactive delivery planner (IDP) enables clients to plan, book and even prioritize shipments.

KN Login’s modular nature allows

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We’ve got you covered

Shipco Transport Your Global Solution Offering LCL & FCL Ocean Freight, Air Freight & Sea Air options to origins & destinations around the world.

• Global Locations & Worldwide Coverage • 24/7 Access & visibility through our E-Commerce platform • Member of WorldWide Alliance & AirCargoGroup Member of

For more info visit www.Shipco.com

WHS Global Logistics Pte Ltd specializes in the fabrication of Wooden Casing, Packaging, Warehousing, Forwarding and Transportation services. Combination of Wooden Cases & Packing plant, Transportation, Warehousing and International Freight with experienced and qualified on-site professionals have enhance the company’s capabilities by improving support services to handle clients’ demands.

34 Pioneer Sector 2 Singapore 628389 | P: +65 6863 4527 | F: +65 6861 7539 | www.whs.com.sg

KUEHNE + NAGEL businesses to scale and tailor the program to each one’s individual needs across land, sea and air transport options, cutting out waste and speeding up the business’s ability to make quick decisions regarding inventory and budgets.

Providing a clear overview of your actions and movements, KN Login gives clients the power to identify issues and tighten their supply chains. Kuehne + Nagel has also partnered with SAP to offer SAP BusinessObjects™ fully integrated within KN Login, providing organized statistics and reports that can help businesses better understand their data on hand and make more

AUSTRALIA

informed decisions in their daily operations.

Bringing ASEAN closer together with KN Overland While demand remains as strong as ever for sea freight and air freight solutions for clients throughout the Association of Southeast Asian Nations (ASEAN), a more interconnected world has created a growing demand for options in the field of road logistics. To meet these needs, Kuehne + Nagel is developing its KN Overland services in Singapore and beyond.

KN Overland’s truck fleet transport offers several advantages to give

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KUEHNE + NAGEL clients more flexibility and choice in shipping, including competitive transit time, an extensive fleet network for full coverage, pointto-point monitoring to ensure the shipments reach the destination safely and on time—businesses shipping within Singapore can look forward to same-day delivery, whereas transport to Malaysia or Thailand can be achieved in as little as 1-3 days.

For the more specialized needs of pharma and healthcare suppliers,

Kuehne + Nagel also offers KN PharmaChain as a specialized network offshoot of its Overland service. Taking the sensitive nature of pharmaceuticals and healthcare equipment into consideration, this dedicated fleet is GXP compliant across all continents and offers such features as: • 24 hour real-time tracking and tracing through integration with KN Login • Wireless sensors to monitor

Unequalled Service You Can Count On

Cargo Community Network (CCN) is a leader in providing solutions to the Logistics Industry.

Lo-Net Handling Pte Ltd is a six-year old logistics company specializing in inland transportation and air-freight clearance services.

Our CCNhub LINC is a complete suite of solutions for the Freight Forwarding & Logistics Industry, incorporating many other value-added applications to fully harness the data from source methodology. :: :: :: ::

Social Supply Chain Platform Complete Suite of Solutions eAWB and eFreight Enabled Cost-effective & Customizable

Tel: +65 6776 1200 | Fax: +65 6778 1875 Email: marketing@ccn.com.sg

www.ccnhub.com

LO-NET HANDLING PTE LTD

70 Alps Ave #01-03 Singapore 498801

Ph: +65 6542 7201 / +65 9069 9971

Email: lonet@singnet.com

AUSTRALIA

temperatures while products are in transit from pickup to delivery • The ability for clients to access temperature data in real time • A dedicated CareTeam to ensure that shipments are cared for properly every step of the way.

“Kuehne + Nagel Overland in South Asia Pacific is established to provide our customers an integrated transportation solution and give our customers an alternate option in term of supply chain lead time and transportation cost,” states Kuehne + Nagel.

“Our excellent Overland expertise in transport implementation, execution, and management provide the customers with flexibility, timedefinite deliveries, and quick response to any business contingency.”

Company Information INDUSTRY

Supply Chain HEADQUARTERS

The Capricorn Science Park II Science Park Road 1 Singapore FOUNDED

1970 PRODUCTS/ SERVICES

Integrated Logistics

Working smarter in a complex world While communication and technology has made the world seem smaller, supply chains have grown increasingly complex. Effectively managing so many moving parts can be overwhelming—but a dedicated partner can make all the difference in keeping that supply chain clear and simple to understand. With these latest developments in supply chain technology, Kuehne + Nagel can look forward to continuing to grow and develop alongside Singapore for decades to come.

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Making the world a smaller place To lead the relocation industry, Santa Fe Relocation Services, supported by the Santa Fe Wridgways brand, emphasises customer service and technology Written by: Eric Harding Produced by: Phil Duran

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Santa Fe Wridgways makes every move a great move for all Australian domestic customers

C

ompanies often say they want to put the customer first, but rarely do they back up this promise with action.

Santa Fe Wridgways is committed to delivering on this promise for each and every one of its customers, while Santa Fe Relocation Services supports this same promise for its 146

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clients in the corporate sector.

As one of the world’s leading removals, immigration and relocation providers, the company prides itself on the passion it puts into providing people with the highest quality customer service in the industry, in line with its company motto of “making it easy�.

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With over 123 years of history in providing excellence in customer service and as part of the Santa Fe Group, the company’s ambition is to use its logistics skills to make the world a smaller place.

“We make it easier for people and companies to live and work freely and flexibly around the world,” said Andrew Simpson, CEO of Santa Fe Australia.

“We service both corporations who are moving their employees, as well as consumers.

“Whatever reason a person chooses to relocate, whether it’s within Australia, outside of Australia, or into Australia, they are equally as important a customer to us as anybody that works for a large corporation.”

A company on the rise Santa Fe has grown immensely over the last five years, with three large businesses merging together on a global scale.

Wridgways has long been seen as the premium moving services provider in Australia and throughout the world, and was acquired by the Santa Fe Group in 2010. Santa Fe’s 35 years as the market leader in global mobility throughout the Asian market saw them well positioned to further strengthen their mobility resources by merging with Interdean Relocations, the global moving services leader for Europe. The result of these acquisitions was the formation of a professional relocation behemoth spanning 56 countries across six continents.

“We make it easier for people and companies to live and work freely and flexibly around the world.

We service both corporations who are moving their employees, but also consumers” – Santa Fe Wridgways CEO Andrew Simpson

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Sales and rental of big Hyster pneumatic tyred forklifts for handling heavy project cargo and shipping containers. Supporting leading companies in the mining, energy, intermodal transport and logistics industries throughout Australia and the SE Pacific region.

Heavy Cargo & Container Handling Equipment Specialists

Phone: 1800 688 788 / +61 2 9897-5111 Email: sales@FLT.com.au www.FLT.com.au

Forklift Traders Pty Ltd 45 Parramatta Road Sydney NSW 2142

WWW.ASEAN.COM.AU ASEAN Cargo Pty Ltd is an Australian owned company founded more than 25 years ago, with offices in all major Australian and New Zealand gateways, as well as an international reach providing a truly seamless operation with uniform and consistent standards worldwide.

SYDNEY, NSW Head Office L2-202, Bayview Tower 1753 Botany Rd. Banksmeadow, NSW 2019 Ph: +61 2 8221 6666

BRISBANE, QLD Branch Office Unit 9B, 10 Depot St. Banyo, QLD 4014 Ph: +61 7 3621 0866

MELBOURNE, VIC Branch Office 7 Tarmac Dr. Tullamarine, VIC 3043 Ph: +61 3 8346 0166

We have a global network of trusted partners who work collaboratively to ensure that our clients freight is managed and delivered in a professional and timely manner.

PERTH, WA Branch Office Unit 10, 2 Ambitious Link Bibra Lake, WA 6160 Ph: +61 8 6214 2675

AUCKLAND, NZ Branch Office 160 Montgomerie Rd. Mangere, Auckland 2022 Ph: +64 9 275 3325

S A N TA F E H O L D I N G S P T Y LT D With over 3,000 employees globally and close to 500 in Australia, the Santa Fe Group now has offices throughout the United States, South Africa, Kenya, and the Middle East as well as an emerging market in Mongolia. The company’s revenue is €400 million per annum, according to CEO Andrew Simpson.

Santa Fe’s wide range of services begins with managing visas and immigration for people moving anywhere around the world. The company also remains closely aligned with its original business model and excels in moving household goods, finding customers a place to live, finding schools for their children, and offering any cultural training they may need such as learning a new language.

“We’re looking to use both technology and also our people in order to make some efficiency gains in order to give our customer the best service at the lowest possible price,” said Simpson.

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Fe’s core values and this is evident not only in the company’s dealings with its customers, but also in the way they treat their employees.

Santa Fe’s goal is to be customerdriven, and the culture across

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S A N TA F E H O L D I N G S P T Y LT D the organisation globally is one of absolute passion. As a result, Santa Fe’s top-level managers and executives have the pleasure of working with employees who are happy to do the right thing for the company and for its customers.

This commitment to service and promoting a positive work culture is embedded in each employee and becomes an automatic way of thinking for all who join the company.

“That’s a wonderful thing,” said Simpson. “It was instilled long

                                     

•    •    •   •    •  

FEEL AT HOME AT QUEST SOUTH PERTH       

before my time, and we’ve been fortunate enough to inherit that.

“Our challenge, of course, is to make sure that attitude is maintained and that we progress to be a company that is a winner across all of its requirements.”

Committed to new technology, not just people As an industry leader in technologies designed to enhance customer experience, one of Santa Fe’s primary focal points is creating an

AUSTRALIA

interface and bringing collective data from all of its databases back to consumers from its legacy platforms.

The company’s new Santa Fe app allows customers to have immediate access to any information or updates they might need from the convenience of their mobile device. The app was launched in early 2015, and even those who aren’t Santa Fe customers can download it to use for its destination services.

“It’s all about having real-time, accurate information available to the customer,” said Simpson. “It includes anything you need at your new home, like the nearest café or a translator tool. Above that, it has personal details such as when you can expect household goods shipments to arrive, your personal flight times and any accommodation requirements you might have as well.

“Think about all the different apps you use when you travel, and the Santa Fe app has all of those in one place.”

“It’s simply an education process, as we’re taking customers on the journey of understanding that they can trust the information on the device,” said Simpson.

“We’re dealing with the challenge of having a whole bunch of disparate legacy platforms around the world. We’ve been very successful in being able to pull them together so the customer experiences one common location of information, and that is certainly a unique proposition for us.

With a team of highly trained moving professionals, Santa Fe makes it easy for each and every customer

“We’re looking to use both technology and also our people in order to make some efficiency gains in order to give our customer the best service at the lowest possible price.”

– Santa Fe Wridgways CEO Andrew Simpson

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I highly recommend the app for anyone traveling around the world for the holidays.”

Five-year plan The Santa Fe Group has what Simpson calls a “2020 strategy,” which is the five-year plan the company recently implemented. For 2015-2016, the company’s focus is reorganising its core moving services business, while strengthening its group skills technology and processes.

Essentially, these two years will be used to build a platform for stronger growth.

For 2017-2018, the goal is to accelerate the company’s growth and increase its market share, resulting in true global market leadership by 2019-2020.

In the long term, Santa Fe wants to be able to explore consolidation opportunities across what is presently a very fragmented mobility industry.

“We’re moving from being very much a logistics provider to something that is far more about how we can make it easy for a person to settle into their new home, particularly when they work for a large corporation,” said Simpson. “We ask ourselves what we can do to help that corporation ensure that their new employee is fully effective at doing what the corporation wants them to do, and not have to worry about anything else.”

Company Information INDUSTRY

Supply Chain Digital HEADQUARTERS

450, Santa Fe Australia 3000, Worldwide FOUNDED

1892 Wridgways; 1980 Santa Fe; 2011 Santa Fe acquires Wridgways.

EMPLOYEES

450, Santa Fe Australia 3000, Worldwide REVENUE

Santa Fe Group - €400 million per annum

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L sup

Latin America has a top pplier for industrial and construction goods Fastenal LATAM brings its unique know-how, schemes and solutions, resulting in successful operations worldwide Written by: Mateo Rafael Tablado Produced by: Andrea Duque Interviewee: Fernando Garcia, Vicepresident for Fastenal LATAM

FA S T E N A L

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rom consumable items to equipment and machinery, Fastenal supplies everything from hardware, tools, automotive products, electrical and fueled motored equipment, to janitorial products, safety materials, cutting tools, adhesives and many others, providing inventory management and other industrial services.

What begun in 1967 as a single outlet company in Winona, Minnesota is now a 20,000-employee operation running from 2,700 locations worldwide.

Most of the company’s products and services available in the States are successfully deployed to subsidiaries abroad. Fastenal is a reliable company with a vast array of resources, able to detect areas for improvement in any procedure, easing both theirs’ and their customers’ operations.

On site inventory management is one of Fastenal’s unique services

The company first ventured in Latin America around in 2001, setting foot in Mexico, where conditions provided Fastenal with continual growth nationwide. Soon after, the company opened affiliates in Panama, Brazil, Colombia and Chile. Fastenal’s LATAM operations are focused on effectiveness and certain corporate standards such as working from luxury facilities do not necessarily apply to their policies.

“We work in an industrial environment, we have clearly defined where our investments should go.

You may hardly ever see me wearing a suit and a

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tie during working hours,” said Fernando Garcia, Fastenal Vice-president to Latin America.

Key People Fernando

Fernando Garcia has been a part of Fastenal since 2004, holding management positions in different cities in Mexico, including his hometown Monterrey and the Bajio area, home to a cluster for the automotive industry and other important businesses in the country. In 2012, he was appointed as Fastenal VP for LATAM. Prior to his experience at Fastenal, Garcia was a consular officer at the Consulate of Mexico in Portland, Oregon.

García Gandara Vice-president to Fastenal LATAM Garcia graduated from the Autonomous University of Nuevo Leon (UANL), earning a bachelor’s degree on International Relations; afterwards, he attended Portland State University, where he earned a Masters of International Management.

Garcia is fluent in English and Spanish. Before being hired by Fastener in 2004, he was a consular officer for the Consulate of Mexico in Portland, Oregon during three years. His tenure in Fastenal first brought him home to Monterrey, Nuevo Leon (Mexico) where he first performed at positions such as key accounts, as general manager, and district sales manager before being appointed as Regional Vice President to LATAM for Fastenal.

Every item is properly organized for resource management operations

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FA S T E N A L

Packaging solutions, another service by Fastenal

The correct approach for success in every country

Fastenal’s 24/7 solutions include tools and safety items dispensers

Fastenal’s success in Latin America is a result of approaching each market as a different entity from others, considering the local behavior in business-related matters. From a starting point implying the company’s flexibility and adaptation to any new surroundings. Some of the core values shared by Fastenal collaborators worldwide include: · Integrity · Teamwork spirit · Keenness to innovations · Address the importance of safety

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L AT I N A M E R I C A

Fastenal provides pieces for multiple purposes

The company’s standards for internal procedures in LATAM are the same as those created by the company in the United States -- every Fastenal location in Latin America is supported by the same sales and inventory management software that was custom-made for transactions in North America.

The Fastenal School of

One of Fastenal’s most recent and heralded achievements in the region is the successful deployment of on-site solutions such as providing inventory management services, which was a proven solution for the company’s clients in North America and has become a fully-developed scheme in Latin America, also.

Business benefits the company’s operations worldwide by providing up to date training to the company’s employees

“This model had been deployed into Latin America some years ago, but it took some time for it to operate at the same level it does on North America”, the executive said.

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MCR Safety has more than 40 years of experience as a leader in manufacture and marketing of a wide variety of gloves, glasses and garments for the industry manufactured with the highest quality to ensure the highest security, comfort and style.

CHINA

Our suppliers and trading partners considered MCR Safety as their trusted provider most respected.

SLP, MEX

Our strength‌

MCR Safety grateful Fastenal all the support and trust they have placed in us along these years.

The flexibility to create new products adapted to the industry together with our trading partners

PUE, MEX

www.mcrsafety.com

Partners at home, partners abroad

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Most of Fastenal suppliers also have a solid presence in the same foreign markets as the company does. Business relationships are also carried abroad, but local purveyors, normally leading companies in their specialty, also carry out some tasks. The company’s operations are eased by long-term relationships with reliable suppliers, and this same principle is exported to Fastenal subsidiaries worldwide.

L AT I N A M E R I C A

“We work hand in hand with our suppliers when use of a certain product requires special training, some of them have preceded us in presence abroad,” Garcia explained.

Point of Use vending machines, the permanent supplier Fastenal’s innovation spirit shows that vending machines are not just for soft drink or food consumption, but also for supplying of materials and other consumables inside clients’ facilities.

Fluids, abrasives, adhesives, tools, safety items (gloves, helmets, etc.), and other items are now available on-site 24/7 through vending machines, avoiding long waits to replenish supplies, item delivery and other difficulties.

Fastenal’s vending machines for industrial consumables are connected to their database, providing useful data about

Machines are connected to the Internet, providing helpful data such as remaining stock, item use and other fields to be evaluated by Fastenal and its clients.

item usage

“Our vending machines provide an outstanding solution to our clients as an on-site solution, its software and analytics result in savings and supply optimization”, explained the VP.

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FA S T E N A L Company culture Aside from the core values shared by Fastenal’s staff at every level on every location, the company provides the same training programs worldwide.

Common and hard to find equipment availability

Around 15 years ago, the company opened the Fastenal School of Business, where employees from every affiliate receive on-site and online training according to specific needs in the market they are engaged at. The Fastenal School of Business’ HQ is located in Winona, Minnesota, with locations in other countries where the

CRC Industries, Inc. Certificado ISO 9001:2008

Más de 50 años de experiencia y desarrollo tecnológico

Pueden hacer, que lo que hoy es un problema de manejo en productos químicos dentro de la planta, se conviertan en una oportunidad de lograr operaciones de mantenimiento más eficiente, seguras y sin afectación al medio ambiente.

Tel: +52 (81) 2139-0572

www.crc-mexico.com

L AT I N A M E R I C A

company operates. Sometimes employees travel to a certain training from a foreign location; other times instructors are sent to Fastenal locations to provide the School of Business trainings in different countries.

Company Information NAME

Fastenal

Also, Fastenal’s Blue Team Sports program supports employees and their families to engage into team sports by providing uniforms, equipment and other benefits.

INDUSTRY

“Our road to success begins when we hire the right individuals, people sharing our same values,” Garcia pointed.

HEADQUARTERS

Future: room to grow amidst difficult conditions

FOUNDED

Fastenal’s main challenges within the LATAM region are related with currency exchange-related matters, and 2016 may bring harder conditions; nevertheless, this is not stopping Fastenal from engaging in new business ventures and continue to increase its market share within this region, with more Fastenal locations to open next year.

EMPLOYEES

Industrial and construction supplies, inventory management systems

Winona, Minnesota, Estados Unidos de América

1967

20,000 (a nivel global) REVENUE

US $380 millones WEBSITE

www.fastenal.com

“Our clients should focus on their own productivity while we become in charge of their inventory’s management,” the executive stated.

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