No. 1 2010
SVENJA TOOK THE LEAP PAGE 20
SPRING FOR LIVET!
who supported this decision – all the shares were sold the same day that they were put up for sale, thus emphasising their confidence in the company and in the future.
Jens Bjørn Andersen Seeing that the year’s first issue of moves coincides with the publication of our 2009 Annual Report, I would like to take this opportunity to look back on the past year while also looking forward at some of the tasks ahead of us. 2009 started out with major challenges caused by the sharp decline in consumer spending on the heels of the economic crisis. In addition, companies all over the world chose to reduce their storage capacity, furthering the stagnation already affecting world trade and, thus, the transport sector. At DSV, we took the opportunity to complete the process of integrating ABX Logistics into our organisation and turned our attention inward to optimise our in-house operations and procedures, just as we fundamentally strengthened our organisation by implementing new IT and by expanding our e-service platforms. This led to comprehensive restructuring, through which we trimmed our organisation over the past year and now have roughly 20% fewer employees worldwide than a year ago. At the same time, DSV carried out a capital infusion in 2009 by issuing new shares (in the amount of 10%), which helped to reduce our need to borrow capital, thus bolstering our capital structure. I would like to extend my warmest appreciation to all shareholders
During the course of the year, the clouds dispersed slightly, even though we are still operating in a world affected by crisis, and each day can bring new positive or negative surprises for the market. Regardless of whether the future is favourable or unfavourable, DSV as a company is in incredibly good shape after the past year’s restructuring and adaptation of our procedures to new markets. I would like to emphasise that we are sounder and more integrated than ever with a crucial balance between the company’s two divisions, Road and Air & Sea. In addition to this is our Solutions Division, whose value-adding and often highly sophisticated operations carried out in close dialogue with our customers help to boost our core business and profile us an integrated logistics company. Our most recent corporate acquisitions – primarily ABX Logistics in 2008 – have strengthened not least the Air & Sea Division, so we now have the strongest foundation ever on which to generate growth in all three areas. A solid roadtransport network on the European continent, combined with logistics and air-and-sea forwarding from our own offices on every continent, provide optimal growth conditions and bolster the company’s position vis-à-vis our key global clients. Now that we have entered 2010, DSV will be more extroverted in our interaction with customers
as we see them eye to eye. We will literally ask them what we can do to become even better. In the words of Rene Falch Olesen, our new Group Sales Manager, there is only one answer when our customers ask us to perform a given assignment: “Yes!”. Naturally, we must work on terms that are commercially viable for DSV, but it is crucial for us to be capable of meeting our customers’ requirements and to not put ourselves in a position where our only tool in negotiations with customers is to shave off the price. We have to be more creative than our competition, we must generate added value for our customers, and we must think out of the box and make the extra effort required for winning market shares in the years ahead. In this context, I would like to draw your attention to our working relations with the sportswear company hummel, described here in the magazine. Here, an unconventional solution is decisive for DSV getting extra Air and Sea transports while hummel is benefitting from having a more streamlined organisation – in the forwarding department as well as in the rest of the company. This links us to our customers and forms the basis for a longstanding, mutually sensible partnership. Like other managers in DSV, I wish to personally meet our key account customers in the course of this year and ask them directly what we can do to become even better. This will bring essential knowledge to light so we are ready to get our share of the growth that is emerging on the horizon. Yours sincerely Jens Bjørn Andersen
Out of the box It took some out-of-the-box thinking for DSV to increase the work generated by the sportswear company hummel. It ended in a unique agreement.
Ready for growth When growth comes, it will occur twice as fast for DSV as in other sectors. A futurologist predicts a busy 2010.
10 Aerospace Division It takes only three people to move heavy aircraft engines weighing 15 tonnes from one end of the world to the other. A profile of DSV’s smallest division – with the biggest assignments.
20 On land, at sea and in the air Svenja Zander is living her life to the fullest at DSV in Houston – where she is a trainee, seconded from Germany – by taking part in cowboy dancing, kickboxing, trips through the US and free falls from a height of four kilometres.
8 Middle of the night Together with Solar – an electricity and HVAC wholesaler – Group IT has developed an IT system which can acknowledge the receipt of goods at night – without anyone being present.
External profile Eleven DSV employees are essential to GM’s supplies of spare-parts out of the US. With their daily workplace at GMSPO in West Chester, Ohio, they are the giant automobile manufacturer’s interface with GM’s customers – which places an obligation on them.
22 Viva DSV in Mexico Chaotic traffic, red tape and corruption in a city of 20 million inhabitants, heavy industry, enormous hospitality and unique culture. Letter from the managing director in Mexico. 3
– growth ahead! Going into 2010, a leading futurologist predicts growth for the transport industry. The rate of growth is actually expected to be twice that of the world’s overall economy.
If you ask Denmark’s leading futurologist, Jesper Bo Jensen of Fremforsk, Centre for Futures Studies, there’s every reason for optimism Growth will come, and the longer the perspective, the more certain is the futurologist’s prediction of an average annual growth in consumer spending of 2.6% in the Western world. Or 30% in 10 years and a doubling in 27 years. The annual growth in private consumption is as high as 5–8% in the Far East – that’s a doubling every 10–15 years. In addition, there’s all the other growth areas in society. Just imagine the new opportunities – and ensuing requirements – in an area such as health and disease… No limits But are there no limits to
consumption at all? ”None whatsoever,” says Jesper Bo Jensen and eliminates any doubts by asking: “Don’t you spend at least 30% more today than you did 10 years ago? We all invent new needs. Today, not many can afford an apartment in Burj Khalifa (the world’s tallest building in Dubai), but it will come into demand in future, because it’s human nature to act and exploit the potential that materialises,” says Jensen.
recession and growth run at double speed, so according to the futurologist we might as well buckle up when growth resumes after the financial crisis. “This means that the transport industry can expect growth that is twice that of the growth in GDP in the individual countries,” says Jensen, who does not believe environmental concerns will have a major impact on consumer spending.
Growth ahead When consumer spending goes up, so do production rates. And the increase in world trade will be double that of the increase in production. This makes the transport industry sensitive to economic fluctuations, for better or worse. Roughly speaking
The climate change cause is dying “Many people feel passionate about the environment, but the truth is broad public appeal is quietly fading. Some fight passionately for the environment, but this trend does not translate into reality. It simply has no effect,” says Jensen, referring to
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“It’s human nature to act and exploit the potential that materialises,” says Jesper Bo Jensen of Fremforsk - Centre for Futures Studies.
Wilbert Tholhuijsen Director, Global Accounts Road “The internet has created, and will continue to create, a generation for whom distance becomes less important and remote contacts are normal. This normalises a global mindset and doing business world-wide. On the other hand, climate change will lead to a different approach to the community, resulting in political choices and governmental regulations that will prompt companies to change their economic priorities.”
Carsten Trolle President, DSV Air & Sea Inc., USA “Growth is clearly expected throughout the media and the financial market, and we are currently seeing some momentum within the United States resulting in crucial, increased consumer confidence. The financial crisis is, however, not completely behind us at this time, and we now need the same increased confidence in the housing market, which is expected during 2010.”
Claus Thomsen Managing Director, DSV Air & Sea Co. Ltd., China “As a result of the stimulus packages issued by the Chinese Government during 2009, we expect to see further escalating growth in China’s consumer spending during 2010, as the prosperity continues to spread throughout the population of more than 1.3 billion. Our 24 locations all over the Chinese mainland make DSV China well positioned to offer our expertise to the many foreign brands that are increasingly seeking to gain a toehold on China’s highly lucrative domestic market.”
Rene Falch Olesen Group Sales Manager, DSV Road Ltd., UK “We are confident that 2010 will see growth return for many of our customers and thereby for us. Furthermore last year’s challenges have focused many minds on further improving our products and processes, which continues to provide vast opportunities for DSV as a major player in the industry. Fortunately, we have been able to maintain a position of strength when it comes to infrastructure and financial foundation, even through the ‘troubled waters’. So for DSV, the return to growth will be a change of environment that we will welcome and quickly get used to embracing. DSV’s assetlight model enables us to continuously focus on environmental improvements in the way we operate – personal interest in this issue seems to increase or decrease with the level of inconvenience any change would have on their life. It is our job to ensure that we are continuously innovative in the way we operate, thus lessening our environmental impact, both when it comes to pollution and congestion. The latter is likely to be solved partly through different working patterns (more and more happening at night, for example), which is also required to be able to cope competitively with the volume increases predicted by Jesper Bo Jensen – and you can bet that we want his predictions to be true!”
Shigeru GOTO Managing Director, President DSV Air & Sea Co., Ltd. “Unfortunately, Japan is slightly stagnating in terms of growth these days and is not like other Asian countries which were once very quiet and are now starting to boom as fast-developing countries. Like other major European countries and the US, Japanese companies are relocating their factories to other Asian countries. And as these companies have export traditions of their own, Japanese exports are not expected to grow or recover very much any more. However, DSV in Japan will play a very important role for the triangle business for companies originating in Japan and which are now all over the world. Such traffic is still mainly controlled in Japan and also by Japanese managerial staff in other countries.”
Søren Schmidt, COO, DSV Road Holding A/S: “Looking back on the developments of the past 10 or 20 years, I think Jesper Bo Jensen is absolutely correct in predicting that world trade will increase immensely and, in spite of the financial crisis currently raging, you can see that the world economy is quickly recovering. The standard of living will increase substantially in the East (India, China) due to efficient, costeffective production, whereas, in my opinion, the Western hemisphere will experience only a modest increase in living standards. After all, the stimulus packages will have to be paid back sometime.”
Tobias Schmidt Managing Director, DSV Air & Sea GmbH “The German logistics market still has great business potential and is predicted to pick up pace again in 2010. Already towards the end of last year we saw positive developments. At DSV Air & Sea we recently managed to secure major key accounts in the automotive and industrial segment which are leading the way into 2010.”
Continued from page 4 analyses confirming this claim: People are less willing to reduce their car use or travelling out of concern of the environment than they were a year ago. And less than 1 out of 1,000 soothe their conscience by buying carbon offsets from airlines if given the choice.
gold in store for those who invent a well-functioning distribution network which can deliver daily commodities to everyone once a day. “The postal service has failed to do it, and they have no intentions of setting up distribution of fresh food to households,” he says.
Gold in store… Neither have consumer activist movements been successful with messages such as “Think globally – buy locally.” On the contrary, we will travel longer today for an exquisite shopping experience. “People want to shop where it’s most convenient for them. Preferably in supermarkets near our daily transport routes and close to where we live. When we go shopping for non-essentials, we’re willing to travel a bit further to exciting city centres and shopping malls – we accept more transport in exchange for a good experience. All this aside, internet trading will boom, however,” adds Jensen and promises that there is
Growth driven by the middle classes According to Jesper Bo Jensen, the major growth in the world will be generated by the middle classes in developing countries, whose basic needs are now met and who will begin filling their shopping baskets with globally produced articles. It all bodes well for the transport industry, which can expect figures twice that of the production companies, regardless of whether the trading takes place in local stores, shopping centres or on the internet. But will the consumers accept steep increases in lorry traffic and the ensuing higher carbon emissions when consumer
spending – and thus trading – doubles every 10 or 15 years? Batteries in the lorries “Consumers are not interested in the transport. It’s not part of the product. You must be extremely focused on climate change to take this into consideration, and very few consumers are. We do think about it: People are scandalised that the neighbour has not turned off their Christmas lights, all the while they’re busy planning their winter getaway to Thailand. But the truth is that we’re all busy just living our lives,” says Jesper Bo Jensen, adding: “It’s not the consumers’ responsibility to take a stand on carbon emissions from lorries. We’ve witnessed a consumer protest movement, but it didn’t really take off. But we could also just make some lorries that don’t pollute. Put some batteries in them! Sooner or later the area will be regulated, and that’s actually the only thing that works,” argues the futurologist.
Night delivery powering success
Outstanding service, good quality and reliable delivery. That is the recipe for Solar’s success. Solar is one of the largest HVAC and electrical supplies wholesalers in Northern Europe and offer the industry’s best deal: have your goods delivered at night!
Being a customer must be simple, and it hardly gets any simpler than for the Swedish and Danish customers of HVAC and electrical supplies wholesaler Solar: Take your pick among 40,000 articles before 6 p.m. and your purchase will be delivered on your doorstep no later than 7 a.m. next morning! This transport concept is a further development of DSV and Solar’s partnership, so far in Denmark and Sweden, and the plan is to also implement the concept in the other companies in the Solar group in Northern Europe wherever geographically possible. “We want to provide the best service and quality in terms of delivery. The night deliveries effectively reduce our customer’s need for maintaining a stock. We have delivered all the parts before the tradesmen come in for work in the morning, and that’s an essential competitive parameter,” says Corporate Transport Manager, Michael Løth Dencker, Solar.
Greater Stockholm, says Jesper Hansen, who expects the annual turnover for Solar in Sweden to reach EUR 680,000– 780,000 by 2010.
Expanding partnership in Sweden The partnership with Solar in Denmark is only 12 months old, but Solar has been running as line hauls from the central storage facilities in Halmstad and Örebro to various distribution points all over Sweden for three years. From 1 February in Denmark and 1 March in Southern Sweden, the collaboration will be expanded to include night and day distribution, and Solar in Sweden will thus become the largest single customer for DSV Sweden. “There’s huge potential in Sweden,” says Business Area Manager, Jesper Hansen, who looks forward to implementing electronic scanning for the night distribution before summer. Up until now, the Southern Swedish night distribution has been handled manually, but by upgrading to the scanning model that has just been developed by Solar in Denmark in collaboration with DSV Group IT, the road is cleared for cutting costs and improving distribution quality. “We make an effort to continuously streamline our services, and Solar has so far returned the favour by increasing their business with us. We hope to soon win the deliveries in
“The finest concept…” At night, 14 or 15 line hauls depart from Solar’s warehouse in Vejen, Denmark, destined for eight decentralised hubs all over the country, where the goods are reloaded into a total of 65 smaller vehicles that take care of the distribution to the night’s 1,400 destinations all over Denmark. Each vehicle visits 22-23 customers on average. “Seeing them pack the vehicles in Vejen and driving out of the warehouse is actually impressive!” says Flemming Jessen, Branch Manager in DSV, who is responsible for the night distribution. “I’ve been in the transport industry for 35 years now, and this is probably the finest concept I’ve seen. This is efficiency on a very large scale, and that’s a strong sales argument for our customers,” says Flemming Jessen.
Same service in all countries The challenge of night distribution was to invent a system to acknowledge the receipt without requiring the recipient to be physically present. “We scan the relevant goods and an authorisation code posted on a wall at the recipient’s premises to validate that the right parcels are delivered to the right place at the right time. Data is then automatically transferred to the control tower,” says Domestic Distribution Division Manager Michael Dal, who has coordinated the development of the database and IT system in a joint effort between DSV Group IT and Solar.
Debriefing every morning Getting in contact with 1,400 plumbers and electricians in the middle of night is not easy. The driver has therefore been thoroughly briefed on the exact delivery details for each
Driver Steen Jessen from DSV in Aalborg, Denmark, on his night route with supplies from Solar. Steen scans all the goods himself on site to make sure he is delivering the right goods.
individual customer – nothing must go wrong because there is no-one to help at this time of night! “Our success rate is close to 100%, but a new location can always provide a challenge. If for some reason we have to abort a delivery, we submit an electronic report to Solar who contacts the customer before 7 a.m. to inform them of the delivery problems,” explains Flemming Jessen. Kick-starting night distribution Developing the IT and scanner systems for a successful night distribution has not been cost-free, but DSV sees it as an investment in the future: “This could kick-start our entire European roll-out of night distribution, not only for Solar but also for other customers,” says Michael Dal, who is enthusiastic about collaborating with Solar, not just because the company has developed into the Danish organisation’s largest groupage load customer in just one year, but also because they really strike a chord with us: “Solar is incredibly proactive in relation to their customers, and they are fully focused on deviations and follow-up. We’re going in the exact same direction.” Focusing on the environment Environment is a key issue for the HVAC and electrical
supplies wholesaler. The company launched the “Solar Explorium” in 2009, which is a groundbreaking building project at the headquarters in Vejen, Denmark, based on renewable energy. The building is classified according to the building code’s energy efficiency Class 1 and serves as a showroom for the latest and most energy-efficient products and solutions. “Night distribution helps us exploit roads and the time factor optimally – the accessibility is simply better, and I’m in no doubt that night distribution will make up a larger percentage of transports in future. At the same time, we expect that DSV, in line with the rest of our suppliers, have a defined environmental policy and that their equipment is up to date. Environmental consideration is a requirement for our collaboration,” says Michael Løth Dencker. Top quality required The barometer shows growth – for Solar and for the wholesaler’s preferred forwarder, DSV: “We have just invited DSV in Germany to bid on our transports there, and the next area of focus will be the Netherlands. As our preferred partner, DSV is always invited to submit a tender, but they can’t just pick and choose: quality and price must also be up to par,” says Michael Løth Dencker.
Aerospace Division Small division – heavy jobs
Only three people in the DSV Group can write “Aerospace Division, Boston” on their business cards. But they are joined by a worldwide web of dedicated agents with special training in handling some of the biggest and most expensive cargo for a freight forwarder: aircraft engines for the world’s largest airliners.
Manager Juergen Horak heads DSV’s smallest division: Aerospace. At the back is supervisor Orlin Angelov (left) and agent Jesper Meldgaard.
Aerospace Division ABX established the Aerospace Division in Boston in 2004 when the contract for transporting the GP7200 engine for the A-380 in Toulouse was awarded. The division handles 350 aircraft engines each year. In addition there are sundry aviation parts, thrust reversers, oversized cargo and aircraft stands. Pratt & Whitney opened its first non-US office in Belgium, and DSV (ABX) is the appointed forwarder for transporting military equipment and parts between the US and Belgium. The division’s clientele: Pratt & Whitney: Almost 100 of the more than 350 annual transports are aircraft engines from the US company Pratt & Whitney. IAE (International Aero Engines) – a joint venture between Pratt & Whitney, Rolls Royce, MTU Aero Engines (Germany), Aero Engines Corporation (Japan) and others. Last year, Juergen Horak of the Aerospace Division obtained the sole right to handle all V2500 aircraft engines for the Airbus A-320. This amounted to more than 250 engines in 2009. IAE is responsible for repairing, maintaining and leasing the engine. Engine transports – typically for maintenance – for a range of different airlines. Pratt & Whitney and IAE are among the top 10 DSV customers. In addition, aviation parts are transported for MTU Aero Engines and AOG (Aircraft On Ground) parts from India to customers like Hamilton Sundstrand, as well as Russian heat exchangers for the B-787 Dreamliner. The target for 2010: Additional contracts for transporting aircraft engines for other manufacturers and contracts with airlines for transporting engines for maintenance and repairs.
Aerospace Division handles 350 aircraft engines each year - in addition to aviation parts, thrust reversers and more. Nothing must go wrong when the 15-tonne GP7200 leaves Pratt & Whitney in Connecticut to cross the Atlantic headed for Toulouse in the south of France, where the A380, the world’s largest airliner, is waiting for one of the world’s most powerful turbojet engines. Every time the engine is moved from one place to another, a DSV agent is on location to take thorough documentation photos of the engine – just in case anything should go wrong. To ensure that nothing actually does go wrong, the small division is 100% dedicated to aircraft engines and aviation parts. “Airplane engines and spare parts represent tremendous values and handling the various engine types requires a great deal of specialist knowledge. Each engine comes with detailed handling procedures, and we only work with select airlines and specialised trucking companies that have proven they can deliver without damaging the goods,” says Manager of DSV Air & Sea Aerospace Division in Boston, Juergen Horak. Open 24/7/365 Even though Juergen Horak might dream of expanding the business to also transport other bulky and costly cargo, the division of just three men that is open 24/7/365 is fully occupied with the aviation industry. The division handles 350 aircraft engines each year – in addition to aviation parts, thrust reversers and engine stands. The customers include Pratt & Whitney, IAE International
Aero Engines AG – as well as the airlines when engines need to be transported forth and back for maintenance and repairs. Customer relations are based on experience and trust, which is one of the reasons it took Juergen Horak more than 10 years to develop the division with its extensive network in the DSV organisation. Just like the Aerospace Division which was established by ABX Logistics in the late 1990s, many of the core contacts in the division’s overseas network were originally ABX employees with longstanding experience in working with Juergen Horak. Boston colleagues Orlin Angelov and Jesper Meldgaard joined later but are dedicated to the airline industry just like their boss. Dedicated employees all over the world “It is just as important to have specially trained staff to handle engines all over the world as it is for us to be specialists,” says Juergen Horak and mentions a handful of destinations in Europe, Asia and Oceania, in addition to offices in South and North America, where 2 or 3 selected DSV employees have received special training in handling the costly cargo – often with direct airside access. ”When you work in a field that’s as specialised as transporting airline engines, the world quickly becomes smaller. We know key staff in airports all over the world, and that’s essential to our success,” says Juergen Horak.
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– a LEAN MACHINE with character and karma One good turn deserves another. This principle is cherished by both DSV and hummel, the internationally renowned sportswear manufacturer. DSV wanted more transports, hummel wanted help with Lean. And so they swapped.
DSV had held the contract for hummel’s import and export of sportswear for 10 years, but only for the road part of the transports, driven in lorries on the continent. hummel’s major imports by air and sea – mainly from China – went to other transport companies, and DSV tried to maintain a dialogue with hummel to also secure these transports. The efforts were not crowned with success until DSV’s good results with in-house Lean came up in a discussion one day. “Then they said this might be something for us,” says DSV Sales Manager Steen Kristiansen, who has been in charge of the hummel contract for a number of years. Steen proposed a meeting between hummel and Preben Hildebrandt, DSV’s Lean Director, who took some time to explain all the details of Lean in DSV. Practical approach “DSV had the most practical approach to Lean, which appealed to us. The others were more theoretical in their ways,” says hummel CFO Jens Binek, who also contacted more conventional Lean providers. But he liked the ingredients in DSV’s recipe for smoother processes: “We were actually not surprised. The logistics industry has extensive
experience in Lean, which has a great impact in their sector,” he says. Bartering But it’s one thing to sell transportation and logistics and another to sell Lean consultancy. This was not exactly DSV’s line of business, so the Danish management initially gave the thumbs down for helping their customers with Lean. “But as I’d been trying to squeeze added air and sea business out of hummel for years, Preben and I thought that if it could increase our volume, we should be able to help hummel with Lean,” says Steen Kristiansen, who went on to draft a contract stipulating added sea and
air turnover and describing a Lean procedure with training of 8 Lean agents from hummel at DSV’s Lean Academy. Firewall “A Lean process gives the same insight as due diligence. Therefore, we’ve split things up so we know nothing about the Lean work being done, and the Lean agents are not familiar with the transport issues,” says Steen Kristiansen, and Preben Hildebrandt adds: “I gain insight into hummel that I mustn’t abuse. It’s a set agreement,” he says, and explains: “We review the entire value chain and discover hidden savings everywhere: booking, follow-up, the shipping
department’s structure, etc. This reduces the importance of the actual cargo pricing. We establish closer ties with the customer and increase our mutual commitment, not so that we can never be separated, but so that both parties have something to gain,” he says. Experts needed Jens Binek, hummel: “Yes, we’re closer to each other. DSV learns about our procedures, but why shouldn’t we trust each other? We need experts, and DSV has proven Lean experts. We’ve also made a transport agreement which fully matches our previous contract. We don’t pay more than before, and we get Lean at cost,” he says.
DSV has had the contract for hummel’s air and sea transports from China to Denmark since December 2009. In return, DSV has helped hummel with Lean.
hummel is a fully Danishowned, internationally oriented sportswear manufacturer which markets its products through own sales offices in over 40 countries across the globe. The success was based on extensive sponsorships for top European clubs and national teams, mainly within soccer and team handball. hummel was acquired by Managing Director Christian Stadil in 1999, who immediately relaunched hummel designs from the 1970s, thus setting the worldwide retro wave rolling. “Such events strengthen our ties with the customers. Out-ofthe-box ideas give us other parameters than just the price. And for the customer it’s a great advantage to streamline the shipping department and realise the many hidden savings beyond the actual cargo pricing.” Peter Fog-Petersen Sales Director
Bridging the gap between Denmark and Sweden 30,000 runners have signed up for the anniversary run across the Øresund Bridge which was sold out long ago – and DSV is taking part as a baggage sponsor.
The stage is set for a veritable national DanishSwedish festival when the 10th anniversary of the Bridge Run is celebrated on 12 June. Already at 10 a.m., the starting area will be abuzz with activity, with brunch for participants, a giant screen, music and entertainment. It will also be possible to enjoy the sight of the 30 DSV lorries assigned to transport the participants’ change of clothing from the starting area in Kastrup, Denmark, to the finish line in Limhamn, Sweden – 21.0975 km across the bridge. “This unique event will help to bring these two countries closer together – and offers a splendid opportunity for DSV to connect with lots of people for a relatively modest sum of money,” says Ingelise Wolter, DSV’s coordinator of the 2010 Bridge Run, from the Marketing Department of DSV Road A/S. “Because of the 30,000 participants and four times as many spectators – not to mention television coverage – we’ll be getting lots of publicity compared to ordinary advertising.”
Wild about lorries This is not the first time that DSV is lining up to take part in a major exercise event. DSV was also the baggage sponsor when 10,000 runners ran across Denmark’s Great Belt Bridge on a half marathon in 2008. DSV will apply the lessons learned from this event in serving as the baggage sponsor for Sparta (the organiser of the 2010 event), which in return is giving DSV exposure on sponsor stanchions, banners and number bibs and placing VIP marquees at DSV’s disposal in Kastrup and Limhamn. “They loved our lorries where we raise the tarpaulin along the entire length of the vehicle to provide 13 metres of service area labelled
with registration numbers so participants can easily retrieve their baggage at the end of the race. They’re used to small postal vehicles with permanent sides that could only be accessed from the tailboard. Therefore it will be quite a different sight this year where the baggage pick-up will cover almost half a kilometre of vehicles lined up in a row,” says Ingelise Wolter, who took a lorry model to one of the introductory meetings with Sparta: “They were completely sold on the idea!” she says. Crossing national borders Besides publicity for DSV’s name, Sparta has also made registration numbers available for some 200 DSV employees and a handful of customers—all of which are sold out! Also, DSV will use this opportunity to make a pitch for health and teamwork across national borders. “The event provides an ideal opportunity to organise some activities that not only profile DSV outwardly but also boost a sense of teamwork and pride within the organisation,” says Tina Hindsbo, Communication Consultant for DSV Denmark. “Everyone knows that a half marathon is an individual achievement, but we intend to make a pitch for a team effort and hope to be able to give our participants joint training and coaching before the run, which will include good advice on how to help your colleagues if he or she hits the ‘wall’. We want it to combine serious training with strengthening ties between the Danish and Swedish runners,” she explains. Closer to one another “The point is to not regard it as a Danish event,” says Ingelise Wolter, who continues: “It should be equally important to both sides of the Sound, and somehow bring us closer together. Because, in fact, we’re not that far away in our daily work,” she says.
30,000 runners have signed up for the 2010 Bridge Run, where DSV will be the baggage sponsor by providing 30 large lorries.
DSV is GMSPO’s face to the world 11 DSV employees are seconded to General Motors Service Parts Operation where they are responsible for supplying parts to the international customers of one of the world’s largest automakers.
Every day, 40-50 lorries deliver automotive parts from all over the US to the 37.000 m² Processing Center in West Chester, Ohio – just north of Cincinnati. There are up to 6,000 different part numbers logged in the system by seconded DSV staff who immediately inform GMSPO’s overseas customers that the ordered parts have arrived and when they can expect to receive them. DSV subsequently handles all the paperwork related to the shipment to the country in question – including invoicing. Everything takes place
directly in GMSPO’s own IT systems though the 11 DSV employees in GM’s Service Parts Operation are employed by DSV for all intents and purposes – formal and practical, and not by the largest US automaker. Customer’s only contact ”We‘re GMSPO’s public image and in many cases the customer’s only point of contact with GM. That’s why we place great emphasis on a high level of service and generally strive to exhibit the same culture as we see at GM,” says Operations Manager
Kristian Kraemer, who has been at the helm of DSV in West Chester since it was established in September 2008. Public image GM has utmost confidence that DSV manages shipments and customer contacts in the same spirit that prevails in the century-old automobile giant. But none of the 11 DSV staff have been trained at GM because for the past 10 years, this GMSPO function has been outsourced to ABX (acquired by DSV in autumn 2008). ”We actually trained GM in handling
The General Motors Spare Parts Operation (GMSPO) is located in West Chester, Ohio, and is managed by 11 DSV employees who function as an “International Traffic Centre”. The job comprises order management, documentation, customer service and materials handling of 20,000 weekly orders, including 2,000 VIP orders and management of a catalogue of as many as 6,000 spare parts. Every month an average of one hundred 40-foot containers are dispatched from GMSPO which services all markets outside North America. The biggest customers are in the Middle East, China and Mexico. The function is the only one of its kind in DSV’s US organisation. 16
a number of the functions, as the carmaker wanted to take over a few tasks in connection with an assessment and subsequent renegotiation of the contract; primarily warehousing tasks. But you might say we’re GMSPO’s public contact because as a service organisation, we’re fully focused on customer needs,” says Kristian Kraemer. 100% DSV Do the employees actually feel like they’re DSV staff or GM staff – after all, they never see a DSV office? ”We basically follow DSV’s rules and HR functions, but we’re a bit like an island in the organisation where we try to blend in. For instance, we wear the same type of safety vests as the GM staff when moving about in the centre, follow all other GM Safety Rules and Procedures - specifically a Fork Truck 2-Foot Rule - and follow GM’s Production and Holiday Schedule. But people feel like DSV
employees and are generally proud of this,” says Kraemer and is backed up by Thomas Christensen, Regional Manager in DSV Air & Sea Inc. (Cincinnati): “They’re 100% DSV people, and they follow DSV’s rules and wage systems. The great difference between us and our colleagues at the GM warehouse is that our employees are not unionised, whereas all GMSPO warehouse staff are organised in UAW, which is a very influential union. And then there’s the difference, of course, that we are a service provider while GM is a manufacturer,” says Thomas Christensen. Impressive reference DSV continuously makes suggestions about how to improve the daily operations at GMSPO. This strengthens the relationship, and Kristian Kraemer and Thomas Christensen both state that working for one of the world’s largest
automakers is an impressive reference for a foreign company in the US. ”This contributes greatly to boosting our brand and opens doors – not least within the GM Group,” says Thomas Christensen, who looks back with satisfaction because Air & Sea ended 2009 by landing yet another major contract with GM: DSV is responsible for the complete supply of GM Parts from Europe to GM plants in the US, Canada, Mexico and South Korea. In addition to the normal transportation and forwarding services (Air, Sea, Express), the control tower in Germany performs complete order management for GM plants all over the world. This includes the monitoring of every order placed by GM and the delivery status of each shipment. All shipments are updated live directly in the GM EDISystem and in the DSV software application D-Chain-PRO to give GM complete control and overview of their transports and order status.
Kristian Kraemer (left) and a total of 11 DSV-employees are seconded to GMSPO, where they are the department’s face to the world. “But we are 100% DSV,” he says.
General Motors (GM) is one of the world’s largest automakers. The company was founded in 1908 and currently manufactures cars and trucks in 34 countries. With global headquarters in Detroit, Michigan, GM employs 209,000 people in every major region of the world and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million passenger cars and trucks worldwide under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM’s largest market is the US, followed by China, Brazil, the UK, Canada, Russia and Germany.
Military airlift to Afghanistan – via DSV in Dubai The Danish Army is saving millions by forwarding supplies and matériel for Danish troops in Afghanistan via DSV’s new traffic centre, DSV Dubai Hub.
Danish troops have been stationed in Afghanistan since 2002. At first, Denmark took part by providing special forces for the US-led war against the Taliban and al-Qaeda. Later, Denmark was a member of the UN’s international security force. From 2003, Danish troops have been part of ISAF, a NATO-led coalition of soldiers from 42 countries, including 26 NATO countries. Denmark has about 670 troops in Afghanistan.
The transport time by ship from Denmark to Dubai, UAE, is three weeks. In return, the bill for shipping matériel and food for the some 670 Danish troops in the Helmand Province’s Camp Bastion is also only about half of what it used to be, when most supplies were primarily airlifted directly from the military airport in Karup, Denmark. “Aircraft fuel costs increased by 45% last year. We had no choice but to reorganise the transports because otherwise we couldn’t stick to our budgets,” says Lars K. Jensen, General Manager for DSV Projects. Jensen accompanied members of Denmark’s Army Operational Command to Dubai to inspect the area’s infrastructure and take a closer look at DSV’s 60-person local office, including DSV Projects, to hear about the possibilities in what eventually became DSV Dubai Hub, with weekly flights to some of the world’s hot spots. Regular rotation every six months The Danish military has continuous, comprehensive transports to and from Camp Bastion. A rotation is carried out every six months which involves the transport of personnel and matériel to and from the regiments from which they originate. This includes the transport of tanks, armoured vehicles and other equipment. It also includes daily commodities which the Danish military now buys regionally, as part of efficiency and cost-cutting measures, via Seven Seas in Dubai, after which DSV takes care of transporting the goods by air to Camp Bastion. “We save lots of money by buying regionally instead of having consumer items and daily commodities flown in all the way from Denmark. To us it’s vital to keep security and flexibility at the same high level as before,” says Major Jan Heine Pedersen, leader of the Danish Defence’s Road Transport Centre (FLC) under the Army Operational Command. Pedersen points out that the overland highway route through
When ready for combat, the IKK CV 90 tank weighs about 35 tonnes with a three-man crew and an infantry unit of six.
Pakistan is an Achilles’ heel when it comes to avoiding attacks from the current enemy: “We mustn’t underestimate the Taliban, for instance: they’re 1excellent -F.Y.R.O.M, the Former Yugoslav Republic of Macedonia at anticipating our next 2-The Israel Parlement (KNESSET) decided JERUSALEM to be the capital. move, and we having As negociations regarding the status of this citycan’t haven't risk come to something yet, most of thebattle-winning embassies are based at TEL-AVIV-JAFFA. sensitive matériel 3-U.A.E, United Arab Emirates fall into the wrong hands,” he says. 4-Dharmsala is the seat of the tibetan government in exil.
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Four different supply routes For this reason the Danish Defence has in recent years been satisfied with the security entailed by flying Noril'sk personnel and matériel directly Dudinka from Karup, Denmark, to the camp situated in the flat, uninhabited area Igarka of the Helmand Province. This route is still one of the four possible supply routes for Danish troops, which can also be supplied by ship via Pakistan or train from the north, but the new option makes it possible to cut 50% of the costs compared to air cargo, while maintaining the same high level of security. “The Dubai Hub could also be of interest for supplying naval and air-force missions in the future. Geographically, Dubai is right at the Tomsk Krasnoyarsk heart of the world’s hot spots,” says Kemerovo OmskMajor Jan Heine Pedersen. Novosibirsk
Barnaul Ministerial negotiations Gorno-Altaysk Samara It takes time to develop new Orenburg Saratov Lipetsk ASTANA Kyzyl Uralsk Kursk Tambov supply routes for the world’s Semipalatinsk Ust-Kamenogorsk Belgorod Karaganda Voronezh hot spots. Especially if the route Aktyubinsk Kharkiv MONGOLIA Volgograd passes through countries which are ovs'k Donets'k K A Z A K H S T A N Atyrau not members of NATO or do not Rostov-na-Donu Dzhezkazgan Astrakhan' Elista consider themselves to be part of a ol' rop v Taldykorgan a k St Krasnodar ess western alliance. ThatShihezi is also why all erk k i Almaty h Kyzyl-Orda h y C c ' Maykop y l n topol Urumqi (Alma-Ata) Yining Na oz UZBE negotiations concerning transports Gr Vlad Nukus KIST BISHKEK ikav Makhachkala kaz AN Chimkent in and out of the United Arab GEORGIA Sinop KYRGYZSTAN Urgench Namangan Andizan TBILISI Yumen TURKME Emirates take place at a ministerial AZE TASHKENT Osh RBA BAKU N YEREVAN I KARA S Khujand TAN IJAN S I N K I A N G Samarkand Kashi level between the countries – for Turkmenbashi Chardzhev TA JIKISTA TURKEY N ASHGABAT Kayseri each shipment. Mary Tabriz DUSHANBE Adana Gaziantep K U R D I S Gorgan Mazar-e T A N “There are major challenges rsin Sharif Al Mawsil Aleppo Mashhad TEHRAN Kirkuk related to transporting military KABUL SYRIA Srinagar Heràt IRAQ Kermanshah Qom KASHMIR BEIRUT ANON Peshawar equipment through the Emirates, DAMASCUS I R A N BAGHDAD AFGHANISTAN ISLAMABAD affa AMMAN 4 involves Ahvaz Isfahan T IbothB theE T and this Dharmshala Faisalabad 2 Kandahar M Lahore Kerman ISRAEL Chandigarhof Foreign Affairs Lhasa Multan Basra Abadan Ministry and the Quetta JORDAN KUWAIT N says Shiraz Delhi KUWAIT E Consulate,” Lars K. Jensen, P Zahedan NEW DELHI Bandar-e BHUTAN KATHMANDU A L ´Abbas who is seconded by MajorTHIMPHU Jan Heine Lucknow Jaipur Jodhpur Ad Dammam Buraydah Kanpur PAKISTAN BAHRAIN Guwahati MANAMA Pedersen: I DOHA Hyderabad N Dubai Varanasi Karachi Patna QATAR Medina RIYADH D BANGLADESH ân ABU DHABI Gandhinagar “OurBhopal transport has to be Harad I supplier Ahmadabad Indore A CalcuttaADACCA MUSCAT Rajkot Vadodara appropriately resilient. business Mandalay SAUDI ARABIA Nagpur Chittagong Jeddah Porbandar Mecca Surat partner forDurgthe Danish Defence - in Sittwe Bhubaneshwar Port Sudan MYANMAR Bombay this case the army must in every Abha (BURMA) Sholapur M (Mumbai) Vishakhapatnam N O RANGOON respect be prepared and willing bara Hyderabad Salalah Pathein SANAA ERITREA Panaji N E Kassala ASMARA M Madras YAdenE (Chennai) Bangalore Orel
to work 24/7 and should know the value of due care. A transport permit may not always be available when you need it in your ordinary work scheduling; which means you have to be flexible and proactive in the actual planning process.” Airlift to Afghanistan As part of the current rotation, DSV just established an airlift to Afghanistan where 35 cargo aircraft will be transporting things like 10 of the new Cevenity 90 (Swedish-made infantry tanks, weighing almost 30 tonnes) to Camp Bastion. The operation is part of the recurring half-year rotation scheme. After being shipped from Denmark to Fujairah, the cargo will be escorted on its transport along the six-kilometre road to the airport, where the tanks – once the permits are available – will be driven up ramps directly on board the spacious Ilyushin 76 cargo planes which will subsequently fly them directly to their final destination: Camp Bastion. Our man in Kabul “Our military transports for a number of countries with troops stationed in Afghanistan put us in touch with a wide variety of companies, selling things like personnel containers, sanitary installations and protection equipment. For this reason we’ve seconded Henning Dal Hansen to Kabul to attend to the interest of our customers and DSV Projects and to cultivate the Afghan market. We anticipate that the need for transports for rebuilding the country will skyrocket,” says Lars K. Jensen. Like the Dubai Hub, the Baltic Hub corridor (railway transport through the Baltic States via Russia/ Kazakhstan/Uzbekistan to the northern border of Afghanistan) is being reinforced. Energetic efforts are being made – together with the project offices in the Baltic States – to establish regular flatbed trains which reduce the transit time to 11 or 12 days, and the first contracts for this newly established project have already been concluded.
Name: Svenja Zander Age: 24 years Position: Trainee at DSV Houston, Texas, for 18 months. Works for Ocean Imports. Before starting to work for DSV, she became a qualified shipping agent via two other transport companies. Leisure interests: Parachuting, kickboxing, country and western music and dancing. Travels around the US together with other seconded DSV co-workers from Europe. Her next destination is a trip to Las Vegas with DSV colleagues. Previous employment: DSV Bremen, Germany, where she is seconded from the Ocean Imports department. 20
Jump for your life! Svenja Zander would have preferred to return to the drop zone on the back seat of the twin-engine Twin Otter which was now in the process of elevating her and her new American friends into the troposphere above Houston. Her heart was pounding and cold sweat was trickling out from underneath her protective suit and helmet – and not least under the parachute attached to the back of this 24-year-old woman. But there was no turning back. The turboprop plane’s door opened and everything in her was resisting this crazy act of jumping out of a perfectly operating aircraft four kilometres in the air. One by one her smiling friends jumped out the door, and when it was Svenja’s turn, she cast her fate to the wind and experienced the rush of a lifetime. “It was fantastic. After I landed, all I could think about was going back up and trying it again!” says Svenja Zander who has now completed more than forty jumps since the first back in May 2009. Enjoying the moment Today Svenja is still high from skydiving – she jumps to live life to its fullest. Her
nervousness has been replaced by enjoying the state she is in as she rushes through the air in a 200 km/h freefall. The experience is so intense that anything but enjoying the moment is impossible. And when she makes loops and skydives with a group of friends from a drop zone, she is happy: “We’re like one big family. Like a football team where everyone is there to help one another and check one another’s equipment. I love going to the drop zone to meet my friends and plan our next jump,” she says. Shaking it off Svenja is not afraid of having an accident. The worst injury she knows of was when one of her friends broke a leg after an unfortunate landing. The “only” incident Svenja has experienced was when her main chute failed to open properly. The problem was resolved at 3,000 feet and the chute opened, but Svenja landed hard, without getting injured though. “I was quite nervous, so I hurried back to the plane and took an extra jump to shake off the bad experience,” says the indomitable DSV trainee from Houston.
Bonus info! One of the most spectacular parachute jumps occurred when Joseph Kittinger, a US Air Force pilot and officer, parachuted from a height of 31.3 kilometres on 16 August 1960. Wearing a specially designed pressure suit, he was transported up through the atmosphere in the open gondola of the balloon Excelsior III, taking 1 hour and 31 minutes to reach the balloon’s maximum altitude. Here, where the temperature was minus 70° Celsius, he waited 12 minutes before jumping out into space. After a 13-second freefall, his drogue chute was released. Its diameter was 1.8 metres and it stabilised his fall to keep him from entering into an uncontrollable spin. After another 4 minutes and 36 seconds of falling at speeds of up to 988 kilometres an hour, his main chute opened at a height of 5.3 kilometres, bringing him safely down to earth. Joseph Kittinger still holds the record for the highest parachute jump and the longest freefall anyone has ever experienced.
– THE LAND OF CONTRASTS
The management of DSV Air & Sea in Mexico on the stairs outside the head office in Mexico City. Left to right: Torge Koehnke, Managing Director, and Mayte Valencia and Søren Jørgensen – Mayte and Søren are managers of Finance and Operations respectively.
MEXICO CITY Acapulco
MEXICO CITY Acapulco
Torge Koehnke writes from Mexico City. Most people associate Mexico with tequila, margaritas and spicy food – and of course the holiday resort of Cancun. The country is filled with contrasts. There are four different climate zones and in some areas the temperatures can fall to below freezing at night in the winter, whereas it is warm all year round in holiday areas like Cancun or Acapulco. Mexico has a lot to offer, and besides a varied countryside and unique culture (from Aztecs to Mayans), Mexicans are renowned for their hospitality. By contrast, the crime rate is very high and the media often report violent confrontations involving influential drug cartels, the police and the military in Ciudad Juarez and Tijuana. DSV’s headquarters are located in Mexico City, whose population of 20 million makes it the eleventh largest capital in the world. Working in Mexico City is not always easy. Besides struggling with chaotic traffic day in and day out, you have to do your best to work in an environment dominated by red tape and corruption. Many colleagues have already learned that customs procedures are very demanding and time consuming. As soon as goods arrive, all items have to be manually counted and inspected before being cleared through customs. This can take several days at the moment. On the other hand, Mexico is a huge import market with gigantic potential. Mexico is a classic FOB market and generally imports more than it exports. China and the EU are Mexico’s biggest markets after the US. Mexico’s stable growth makes it one of the biggest growth markets in Latin America. I have worked for more than four years in Mexico, but before I moved here in 2006, I worked for four years in Sao Paulo, Brazil, in project forwarding from 2002 to 2004.
I originally started out in the shipping sector, before eventually getting involved with forwarding via a two-year study programme. I have never regretted this step, as few jobs offer so many opportunities for travelling abroad and gaining experience. Many people are probably wondering how DSV is organised here in Mexico. Our customers are found in every sector, but primarily in the automobile industry. We also have many customers in the textile and fashion sector and in the machinery industry. Our customers include General Motors, whom we primarily service with air cargo in Monterrey and Mexico City. We also gather goods transports for Europe for Autotek (the Magna Group) in weekly container shipments. Ferragomo is one of our important customers in the textile industry. Yet, we also work together with companies like Autoliv, Danfoss, Danisco and Pemex (Mexico’s national oil group). In addition to sea and air cargo we also offer customs clearance and road transport. We have a young team of about 45 employees in Mexico City and in Guadalajara, Monterrey, Puebla and Queretaro. Many people probably know Mayte Valencia (Finance Manager) and Søren Jørgensen (Operations Manager) from our team. Our primary goal for 2010 is to ensure the continued build-up of our organisation and to increase our earnings within all areas. We have an excellent team and naturally hope for the support of our overseas DSV colleagues. “Saludos” from Mexico and our best wishes for a successful year to all our colleagues in DSV. Torge Koehnke
News Dutch help for KiKa. The employees at DSV’s Dutch locations have teamed up with the General Works Council in a fundraising campaign for KiKa, the Dutch charity for children’s cancer research. KiKa, which supports the Netherland’s seven children’s cancer centres, received a cheque for EUR 6,000 from DSV at the beginning of the year. EUR 33,600 to the Children’s Cancer Foundation. This year’s Christmas gift from DSV in Denmark was again given to the Danish Children’s Cancer Foundation (Børnecancerfonden), which helps children with cancer in Denmark. The donation from the Danish company will go towards providing more information about children’s cancer; intensifying research into treatment methods; and improving the conditions for children and their families affected by cancer. At DSV, CEO Jens Bjørn Andersen presented the amount to the patroness of the foundation, actress Ghita Nørby, and Henrik Hertz, MD, Consultant Doctor and chairman of the Children’s Cancer Foundation, and pledged his unreserved support for the Foundation: “I have Patroness Ghita Nørby, the utmost respect for the Danish Children’s the work of the Children’s Cancer Foundation . Cancer Foundation,” he said. Sweden supports children with cancer. As in previous years, DSV in Sweden has once again supported Sweden’s Children’s Cancer Foundation, based on an initiative by the employees in the Swedish offices, who raise money for children with cancer in Sweden. In Christmas 2009, this amounted to EUR 2,315. Ole S. Iversen – 25 years with DSV. Ole S. Iversen, Regional Manager in the US gulf region, has enough on his plate. The region supports seven states and four DSV offices: Dallas, Houston, Austin and Denver with a total of 50 employees. Ole S. Iversen, 46, works out of the office in Dallas–Ft Worth, situated in the enormous state of Texas (actually about twice the size of Germany). This is home to the executive offices of
companies like American Airlines, Southwest Airlines, Continental Airlines, NASA, Dell Computers, Valero Energy, Samsung and Solectron. Ole qualified as a freight forwarder in Dan Transport in 1987 and first came to Atlanta in 1989 from Billund in Denmark. He was appointed Assistant Branch Manager in 1993, opened the office in Dallas-Ft Worth in 1995 and became Regional Manager in 1997. Ole and his wife, Crystal, have two children: Ava (8) and Wesley (5). Difficulty donating. DSV in Osnabrück, Germany, was suddenly left with 1,900 duvets and 1,500 pillows which the customer was not contractually obliged to receive as they were not delivered on time due to national strikes and blockades in France. An attempt to sell the duvets at market price failed, as the duvets were made to order. Detlev Otto, Manager at the Osnabrück DSV office, then decided to donate the duvets to charity, but this was easier said than done. It took three years’ of persistent effort before this winter, the bedclothes – valued at EUR 50,000 – could finally bring joy and comfort to orphanages, nursing homes, hospitals and institutions for the destitute in Russia, Moldova and Ukraine. “I couldn’t bear the thought of destroying the duvets when there are people freezing out there,” says Detlev Otto, who is pleased that the bedclothes found good use in Eastern Europe with the help from Christliche Diakonische Hilfswerk, Stephanus, rather than being stored unused in Osnabrück’s Solution Warehouse in Lohne. Apologies to UK Claims! It appears that MOVES missed the DSV UK Claims Team in last edition’s mention of the event where more than 1,000 competitors battled at sea on homemade rafts off the beach in Harwich. UK Claims was the only DSV team to win a prize: a crate of beer – for being the last team ashore. “Not only that, we were the only ones who didn’t cheat!” says Anthony Wilde of UK Claims. Green and good. DSV Solutions’ key accounts in the Netherlands got a Solio for Christmas. It’s a solar energy charger for eco-friendly charging of mobile phones, powering iPods, etc. For each Solio presented by DSV solutions to its customers, the company behind the charger donates a similar solar energy charger with an LED lamp to families in developing countries living on less than one US dollar a day.
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