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The magazine for logistics customers and decision makers 02 | 2009
India:
Set for growth
Interview The Sprinter
with John Sobeck, network
ZF Friedrichshafen AG,
Multi-talented perfor-
about automotive
mers: Newspapers by
industry logistics
night, auto parts by day
editorial
ABOUT LOGWIN
As an integrated logistics
and service provider, Logwin
develop comprehensive solu-
tions for industry and com-
merce. With a staff of 8,000 at
400 locations in 45 countries
around the world, Logwin offer
contract logistics, international
air and sea freight as well as
road and rail transport services.
Logwin’s customised logistics
solutions help create sustain- Dear Readers,
able growth for its customers.
To find out how this can happen
for you too, log on to There’s one thing we can say for certain about 2009: it has been an eventful year – indelibly
www.logwin-logistics.com marked by the effects of the global financial crisis. We too have been affected by these turbulent
events – declining freight volumes and the drastic fall in cargo rates have weighed upon our busi-
ness. Our response: capacity adjustment and cost reductions. We are fighting against the crisis
with measures aimed at achieving stability. In these difficult economic circumstances, all busi-
ness are looking for ways to increase efficiency. Effective long-term solutions are emerging
mainly through collaborative partnerships with our customers. Meeting their requirements is
the focus of all of our efforts.
Despite the overall economic situation, however, 2009 is also a year of new beginnings for us.
Logwin has developed significantly as an integrated logistics service provider. You will find new
evidence of that every day – even right here in this magazine. In this issue we bring you stories
from the business world and the wider community. We talk to internationally renowned experts
and tell you about exciting logistics solutions. We’ve deliberately chosen to focus on India be-
Imprint cause in 2009 we made a strategic move to expand our presence on the south Asian subconti-
Logwin Magazine 02|2009 nent by establishing a Logwin national subsidiary. Today, we are there for our customer in over
400 locations in 45 countries with internationally uniform IT systems, standardised processes
Publisher and tailored solutions.
Logwin AG
ZIR Potaschberg This high standard will remain our guiding principle into 2010. Our agenda is to extend our global
5, an de Laengten network and to continually improve our customer-focussed logistics services. Our aim is to be a
L-6776 Grevenmacher reliable, high-performance partner for our customers – now and into the future.
Phone +352 719 690-0
Fax +352 719 690-0 I would like to take this opportunity to express my thanks to our customers for their confidence
E-Mail magazine@logwin- in working with us and to our staff for their dedicated work. It is our staff that gives our business
logistics.com a face and that turns our commitment to service into a reality every single day.
V. i. s. d. P.
Mara Hancker Sincerely
Titel:
Shweta Jain is a Logwin employee
in Delhi and responsible for sea-
freight export. Berndt-Michael Winter
CEO Logwin AG
2 www.logwin-logistics.com – Logwin Magazine – 02|09
contents
4 12 14
Focus on India ZF Friedrichshafen The Sprinter network
The Subcontinent charts a course for growth Out of tradition comes a partnership for Making intelligent use of synergies:
the future 500 vehicles delivering auto parts by day
and print media by night
FOCUS BACKGROUND NEWSFL ASH
4 The United States of India 12 Interview 24 News in brief
High-tech metropolises and 650,000 with John Sobeck, Head of Logistics at Customers, projects and awards
villages – The world’s most populous ZF Friedrichshafen AG
democracy is setting itself some big 28 Racing fever
challenges 14 The Sprinter network The fourth Allgäu-Orient Rally and
A clever transport solution for media the 24-hour race at the Nürburgring
7 “Europe is no longer the and automotive industries
benchmark” 30 Competition
Interview with Dr. Aditya Dev Sood from 17 Heavy transport
the Indian Center for Knowledge Societies An Airbus engine on board
9 The global network continues 18 Project logistics
to grow Spare parts in a hurry for Beluga Shipping
Logwin’s national subsidiary in India gets
up and running 19 Specialised solutions
Using silos as a logistics strategy
9 “Investing in the future”
Interview with Vijay Nair, Managing 20 Interview
Director India with Lai Bou Leong, Managing Director of
Fresenius Medical Care Singapore
10 On the information
superhighway in India 22 Country report
India is not being left behind: New branch Singapore and Malaysia:
offices have full access to online services two dynamic trading nations in
from day one. South East Asia
11 The fantastic four
BRIC – from problem children to
golden boys
www.logwin-logistics.com – Logwin Magazine – 02|09 3
focus india 4 www.logwin-logistics.com – Logwin Magazine – 02|09
ROLE MODEL AND BEACON OF HOPE
The United States of India
With 1.2 billion people, India is the most populous democracy on Earth. Over the last few decades, the Subcontinent has
developed at an impressive rate. Following China, India is now regarded as the new economic power of the future and the
country is showing healthy growth despite the economic crisis.
Anyone who follows reports on India will know that the rapid growth current status of these collaborative efforts remained unanswered at
of the country’s major cities is in stark contrast to the backwardness the time of our editorial deadline.
of its rural areas. As a consequence, many people from rural areas are
drawn to the cities looking for work, a place to live and a secure income.
Providing better services for the rural population is one of the highest One government, many peoples
priorities of the government of President Pratibha Patil and Prime
Minister Manmohan Singh. Not least because of the hope that, through To understand the current political and economic situation in India, you
this support, farmers will also join the ranks of India’s consumers – can’t overlook the country’s history. India is one of the oldest civilisa-
domestic demand currently being the key factor that underpins the tions in the world. The first Indian empire arose in the fourth century
growth of the Indian economy. BC. In the north of the country and in what is now Pakistan, pre-planned
cities with water supply systems and sewerage systems date back as
far as 2500 BC. In the eighth and twelfth centuries, the influence of
Getting from A to B Islam increased in northern India, and this had an effect on both the ad-
ministration and the culture of the region. European colonialism began
India’s transport infrastructure has so far been unable to keep pace to make its mark around 1500 when Portugal seized minor bases along
with the growth in industry, IT and communications. While many farm the coast. From the 18th century onwards, the British gained influence
workers own a mobile phone and are connected to a communications in India, driving out the French and the Portuguese. From 1877 to 1947,
network, travelling to the nearest big city is often an ordeal. Only about the kings and queens of England bore the additional title of Emperor/
half of India’s roughly 3.3 million kilometres of road is sealed. But even Empress of India. As a result of the Indian independence movement
these roads are not able to cope with growing traffic volumes. India’s headed by the spiritual leader Mahatma Ghandi, India was divided into
transport minister, Kamal Nath, has announced that over the next few two independent states in 1947, each with its own government: the
years 30 billion euros will be spent on upgrading major highways alone, Hindu state of India and the Islamic state of Pakistan.
with the government providing half of these funds. The Minister is as- Today, India is made up of 28 federal states and 7 union territories;
suring private investors of toll revenues and high returns. the latter do not have their own government and are administered by
Despite the urgent need for roads to be upgraded and extended, the federal government directly. In addition to the official languages
and despite the long distances within India, 75 per cent of the country’s Hindi and English, a further 21 languages are recognised. A total of over
transport is by road. Rail accounts for just 15 per cent of freight move- 100 languages are in common use, while more than 300 spoken langua-
ments. The railway network is equally in need of improvement: delays, ges and over 1,600 dialects are documented. The majority of Indians
standby times and a low average speed of just 23 km/h are the norm. are Hindu (approx. 80 per cent), followed by Muslims, Christians, Sikhs,
While there are private investors to be found for the road network, the Buddhists and others. The diverse range of faiths has given rise to politi-
search for financial backers for the railways is coming up with limited cal unrest – the ultimate splitting apart of Pakistan being the clearest
results. That’s because of the significant challenges involved. A large manifestation of this. Up until1971, Bangladesh (formerly East Pakistan)
part of India’s landscape is mountainous and difficult to access. There was a part of Pakistan; since that time, the region also known as Bengal
are no less than four different gauges and the majority of lines are has been independent. Despite independence, the potential for conflict
single-track, with twin tracks on only a quarter of the entire rail network. in the region is as great as ever. One reason for that in particular is the
Electrification is also limited to just 30 per cent of the network, with the disputed former princely state of Kashmir, to which not only India and
other 70 per cent being serviced exclusively by diesel locomotives. On Pakistan, but also the People’s Republic of China, lay claim.
top of that, the administration of the 64,000-kilometre rail network is Prior to the end of the Cold War, India had an especially close rela-
shared between 16 regional railway authorities. Although Deutsche tionship with the Soviet Union. This was the result of, among other
Bahn [German Railways] and Indian Railways reached an agreement in things, the fact that neighbouring Pakistan had sought support from
January 2008 to jointly develop freight centres in India, we regret that the USA and China in the conflict over Kashmir – so India needed a
an inquiry made to Deutsche Bahn by Logwin Magazine as to the strong ally too. This connection to some extent explains the central
www.logwin-logistics.com – Logwin Magazine – 02|09 5
US$13 billion in revenue, today they are reporting losses. Demand
from Europe alone has crashed in comparison to last year, with the
total value of contracts falling by 45 per cent. But overall the sector
is optimistic. By 2020, revenue from IT services is expected to climb
to US$175 billion.
Nationally, agriculture still plays a significant role, accounting for
over half of India’s workforce. The main crops are rice, wheat, oilseed,
jute, tea, sugar cane and potatoes.
India is growing
Despite the crisis, the Indian economy is expected to grow by seven
per cent in 2009, with optimistic forecasts putting the figure as high
as nine per cent. India’s new role in the marketplace is less that of a
supplier of raw materials and more that of a producer. Crude oil and
petroleum products top the list of exports; textiles, precious and semi-
precious stones and jewellery, and chemical products, especially
pharmaceuticals, are the main exports. India’s main trading partners
planning flavour to India’s otherwise democratic economic policies. are the USA, Great Britain, Japan, China, Belgium and Germany.
It was not until the fall of the Iron Curtain that India pursued an agenda Nominal gross domestic product for 2008/2009 is estimated to
of liberalising and opening up its economy – a major pre-requisite for be 768 billion euros. This equates to an increase of 15.5 per cent over
engaging overseas investors. the previous year. Per capita income has doubled over the past seven
years and amounts to 586.300 million euros Indians still live below
the poverty line. But, thanks to continuing economic growth, more and
Yesterday spices, today IT more people are rising to the middle classes.
If India can successfully eliminate the factors that are impeding the
India is still going through a process of internal political reform, through economy, such as inadequacies in infrastructure and the disparities
which the country is advancing its integration into the global market- between urban and rural areas, it will continue to stake its claim as one
place. The range of goods being traded has changed a great deal from of the world’s strongest growth markets. I
the days of India’s first trading relations. While spices, cotton and tea
were at the top of the sales list in those early days, today services in
industries such as IT represent India’s primary export. But the global
economic crisis has not passed India by. While in 2008 India’s IT out-
sourcing firms employed as many as 800,000 workers and posted
EXPERT OPINION
It all comes down to
infrastructure
“The structure of the nation’s transport network expansion and modernisation of the country’s
has an effect on final dispatch at the port. The twelve major ports is a matter of the highest
connections to inland areas must be improved priority. These ports already account for three-
dramatically; warehouse capacity must be in- quarters of all shipping.
creased enormously. It is absolutely essential
to modernise and increase the size of the The greatest visible progress is being made
ports. It’s only by doing all of these things that in the modernisation of India’s airports.
current laytimes of 3.85 days can be brought Numerous private sector companies are
down nearer the average laytime of 10 hours involved in the expansion and upgrading of Helmut Kaspers,
in Hong Kong for instance. As 90 per cent the country’s twelve international airports COO within Logwin’s business
segment Air + Ocean
of India’s foreign trade travels by sea, the and more than 1,274 domestic airports.”
6 www.logwin-logistics.com – Logwin Magazine – 02|09
interview
TALKING TO DR. ADIT YA DEV SOOD
“Europe is no longer the benchmark”
Market research is immensely important in India due to the country’s very heterogenous make-up. Economic activity is
concentrated in the major cities such as Delhi, Mumbai, Pune, Bangalore and Chennai, while regional areas are falling
behind in terms of industrial development. Dr. Aditya Dev Sood is the founder and CEO of the market research organisa-
tion, the Center for Knowledge Societies. What is his assessment of the current situation and where does he see new
opportunities? Logwin Magazine digs deeper.
Logwin Magazine: Indian consumers’ habits are changing at a breath- Logwin Magazine: The Golden Quadrilateral, the road network that
taking rate. How do you see things progressing from here? connects Delhi, Mumbai, Kolkata and Chennai, is India’s largest high-
Dr. Dev Sood: There are several aspects to this. The elite are looking way construction project, consisting of 5,846 kilometres of four- or
better and better all the time in comparison to the rest of the world. six-lane roadway and costing around US$13 billion. It was due to be
People moving away from rural areas are finding a wealth of possibili- completed in June 2009. What is the current status of the project? And
ties in the cities. Consumption is increasing and industry is developing what does this network mean for transport in India?
according to its own standards – it is no longer looking to Europe or the Dr. Dev Sood: The Golden Quadrilateral is already out-of-date when
US as the benchmark. you consider how much the needs of India’s cities have grown in the
When you look at current consumer behaviour in India, young people meantime. Last week I drove from Delhi to Jaipur. It was stop-start the
are playing the most significant role. Young people have different values whole way, packed with buses, trucks and cars. The trip resembled the
to their parents; progress and change have always been a part of their journey I made from Shikou to Guangzhou in the Chinese province of
lives. They have their own style and modern views that are increasingly Canton in 1997. There was a similar degree of industrial development,
being expressed in distinctive, contemporary Indian designs. but in China there was a lot less traffic and the roads were of greater
capacity as well.
Logwin Magazine: In your research you’ve looked at the change in
consumer behaviour in the telecommunications market. What propor- Logwin Magazine: What means of transport have you used in the last
tion of the Indian population is connected to mobile communications 24 hours and what were the costs associated with each of them?
technology today? Dr. Dev Sood: I used my chauffeur-driven car – petrol costs 1 euro per
Dr. Dev Sood: In the coming year nearly 400 million Indians will be litre and I get six kilometres to the litre, so that works out to be 18 cents
connected to a mobile communications network – that will be close to per kilometre. On top of that, there are the chauffeur’s wages of 5 euros
35 per cent of the population. But you have to look at those figures in a day, roughly 65 cents an hour for an eight-hour day. Then you have to
a different way. In India there is an average of 5 people per household, take into account depreciation or wear-and-tear on the car. Apart from
so that means around 80 per cent of the population live in a household that, I was picked up from the airport in Mumbai today. That cost 10
with at least one mobile phone or telephone. It is only people living in euros.
the country or in very remote places with fewer than 2,000 inhabitants
that are the exception, but in many cases even they will benefit from
telecommunications nearby – in most cases they will find access to
some form of communications network within five kilometres of where
they live.
Logwin Magazine: Only half of India’s total road network of 3.3 million
kilometres is sealed. What’s the outlook for individual mobility over the
next few years?
Dr. Dev Sood: We’re facing some tough challenges, especially with the
introduction of the very affordable Tata Nano and other similar small
cars. Major highways connecting the suburbs with the big cities are
choked with commuters. Road design is inadequate and flooding is a
common occurrence especially due to inadequate drainage systems.
Dr. Aditya Dev Sood (born 1970) is the founder and
CEO of the market research organisation, the Center for
Knowledge Societies, based in Bangalore and Delhi.
Dr. Dev Sood graduated from the University of Michigan
and received a doctorate in anthropology from the
University of Chicago.
www.cks.in
interview
Logwin Magazine: What is the government’s are a number of separate networks, originally Logwin Magazine: Domestic and interna-
position on carbon trading? The UN climate built by the British, that are not integrated in a tional shipping in India is handled through
conference is due to take place in Copenhagen meaningful way. twelve major ports and around 180 medium-
on 18 December. What is the official position The landscape is another challenge – rail sized ports. Which of the major ports will see
on the target of reducing CO2 to pre-1990 freight is not competitive in mountainous re- especially dynamic growth over the next few
levels by 2020? gions such as Kashmir, and a number of other years and why?
Dr. Dev Sood: When Hillary Clinton visited the mountain areas cannot be reached by rail at Dr. Dev Sood: That’s an area I’m not all that
Indian environment minister, Jairam Ramesh, all. Finally, there is inadequate integration bet- familiar with. I think that growth in India’s
he restated the view that India bears little ween coal, steel and other primary industries ports will be the result of the following factors:
responsibility for climate change so far. Indus- as far as rail links are concerned. Regional areas are steadily being opened up
trial nations would therefore do well not to to enable further industrial development. The
impose an emissions cap on India. Neverthe- issue is meeting consumer demand as well
less people are becoming increasingly aware
that the government must take proactive steps
“ Regional areas are steadily as the needs of the primary industries. Then
there are various national programs or pro-
being opened up to
to restrict carbon emissions, through initia- grams in individual states that relate to de-
tives in government research, for instance, enable further industrial veloping ports. But often these are not main-
and supporting similar initiatives from private
enterprise.
development.
” tained over the long term. Maximising existing
capacity – can this port grow any further than
it already has? – is also an issue.
Logwin Magazine: Each year India’s state- Logwin Magazine: India clearly has one of the
owned railways, Bharatiya Rel, convey five busiest air transport networks in the world. Logwin Magazine: Dr. Dev Sood, thank you
billion passengers and 350 million tonnes of What are the most significant projects for the very much for this interview. I
freight. Why is this transport system not being coming year on this front?
developed further rather than there being an Dr. Dev Sood: Firstly there will be increased
emphasis on building roads? emphasis on building airports in cities that
Dr. Dev Sood: Industry in India does make have not previously had one. This is part of
extensive use of rail freight. But there are a India’s Green Field Airport strategy. In addition,
number of challenges – loading and unloading major new airports such as Delhi, Mumbai,
containers from trucks often leads to delays Bangalore and Hyderabad will be privatised.
at freight yards. Then there are the costs – the Small private airlines that are not financially
government sets the prices for commercial viable will be closed down. Major Indian air-
freight and the prices change constantly. Then lines, such as Jet and Kingfisher, will expand
there’s just the general complexity and fre- overseas.
quent breakdowns in the rail network. There
8 www.logwin-logistics.com – Logwin Magazine – 02|09
focus india
NATIONAL SUBSIDIARY ESTABLISHED IN INDIA
Global network keeps on TA N
LOGWIN IN INDIA
PA K I S -
NE
CHINA
growing New Delhi
PA L
BANG
INDIA
Own branches in Bangalore, Chennai, Mumbai, New Delhi and Pune are just the
LADES
beginning. All the signs are pointing to growth for Logwin’s national subsidiary Mumbai
in India, which began operating in July this year. A further five new branches are
Pune
planned for the Subcontinent over the next twelve months.
H
G
Bangalore
U NG
BE
LF A
Proximity to our customers and optimal con- Bangalore is an internationally renowned IT Chennai
IN CE
O
O
D AN
nections to international trade were the key city. The branches planned for the future will
F
IA
L
N
criteria in choosing the locations for Logwin’s consolidate Logwin’s network even further. 500 km
branches in India. The headquarters in Mum-
bai, city of 14 million inhabitants, and the
branches in the Indian capital New Delhi and Better service through
in Chennai, the centre of the south-east, are experience
all in well-connected locations close to air- project. In terms of organisational structure,
ports. Pune – around 160 kilometres from Logwin endows its new national subsidiary Logwin Air + Ocean India Private Ltd. forms
Mumbai – is one of the major centres of with 20 years of logistics experience in the part of the business unit South East Asia
India’s automotive industry. Chennai is an Indian marketplace – valuable expertise that (SEA). I
important port on the Gulf of Bengal, while the 80 staff put to good use on every customer
“Investing in the future”
Vijay Nair is the head of Logwin’s national subsidiary in India. With his com-
prehensive expertise in logistics, the 44-year-old knows all the ins and outs
of the Indian market.
Logwin Magazine: Mr Nair, Logwin has al- Logwin Magazine: Which industries do you
ready been active in India for the past 20 years. mainly work for in India and what services do
Why do you think now – in these difficult you provide to your customers?
economic times – is the right time to establish Vijay Nair: Our customers include businesses
a national subsidiary? in the fashion and lifestyle industry, for example,
Vijay Nair: Up until now, we have been working but also medical supplies, electronics and
with our commercial partners in India on an automotive industries as well. We assist our
agency basis. Setting up a national subsidiary customers with a full range of freight services
is part of our strategy to increase the empha- as well as individual SCM and outsourcing
sis on developing our own business. We offer solutions.
our customers the advantages of being a logis-
tics group with international operations, and Logwin Magazine: What challenges does
at the same time, as a flexible, medium-sized India’s infrastructure pose to logistics opera-
operator, we are in close proximity to our cus- tions? Vijay Nair, Managing Director Air + Ocean India
tomers in the region. Although India – just like Vijay Nair: The volume of freight in India has
every other country – is affected by the global risen rapidly over the past few years. The de- ports lack adequate rail and road connections.
crisis, the economy is still developing in a very velopment of infrastructure has not been able The Indian government has recognised this
positive way here with growth forecast to be to keep pace. To give you one example, the and is giving high priority to the expansion of
between 6.5 and 7 per cent this year. In that transit time for ships in Indian ports is around infrastructure. Through government funding
respect, now is exactly the right moment to three to four times longer than in Europe or and with support from private international
invest in the future. North America. On top of that, many Indian investors the bottlenecks will be overcome. I
www.logwin-logistics.com – Logwin Magazine – 02|09 9
focus india
QUICK CONNECTION New branches, tried and tested
IT structure
India’s information The new branches could be connected with
very little installation effort thanks to the
super highway ‘thin clients’ utilising a virtual private network
(VPN). “We only had to ensure the existence of
an appropriately broad Internet connection”,
Simply amazing: IT connectivity with the new branch offices in India explains Andy Nutz, Director of Information
was achieved with virtually the press of a button. The centres in Technology in the Logwin business segment
Bangalore, Chennai, New Delhi, Pune and Mumbai were furnished Air + Ocean. “As India’s cities have good IT
infrastructure with the appropriate broadband
with all applications right from the start.
capacity, connecting to the computer centre in
Luxembourg took very little time.” Thanks to
the broad information superhighway, access
times for users abroad are similar to those for
Plug and play – an Internet connection was all European users.
that was required to network the Indian offices
with the Logwin computer centre in Luxem-
bourg. The computer centre has all applica- Central, standardised, powerful
tions on standby. This means that customers
in India have access to every tool, from ship- Logwin is structured essentially in terms of its
ping and product orders, goods receipt alerts, IT. The Luxembourg computer centre provides
and product delivery instructions to the trans- all encompassing infrastructure with a stand-
mission of status information and electronic ardised application environment and a com-
invoicing. There are also several special tools mon database for globally identical IT services
available. For example, the “Logwin Bots” sup- and system availability. There are numerous
ply chain management tool can be calibrated advantages to this standardised server farm,
individually to the needs of our Air + Ocean including higher data throughput rates, maxi-
customers and is available in five languages: mum security, redundancy prevention and
Chinese, German, English, Portuguese and lean processing. If a software update is neces-
Spanish. sary, this only needs to be done once to be im-
All relevant documents such as for instance mediately available worldwide. “These days a
packing lists and commercial invoices can be high performance network can only be created
accessed online. Customers are able to enter using centrally controlled and uniform IT struc-
bookings directly around the clock, allowing tures encompassing the highest business pro-
paperless processing of transactions. cessing standards”, according to Andy Nutz.
“Consequently, activating new branches
around the world is also a dream that can be
Global transparency realised in no time.” I
All Logwin sites offer the same transparency.
All information regarding shipments can be JUMPING INTO THE NET
viewed online, including a virtual inspection
of individual containers. Documentation of In India, access to the Internet first
purchase order transactions extends to the became available in 1995. But it wasn’t
level of individual items. Similarly, packing lists, until the monopoly of state-owned
certificates, bills of lading and airway bills and Videsh Sanchar Nigam Ltd. came to an
their documentation are also managed digitally. end in 1998 that things really took off.
Tracking and tracing of air and sea freight ship- By 1999 the number of individual
ments not only allows customers to determine Internet connections had doubled to
the current location of their consignment, but 280,000; by 2004 the total had climbed
they also receive proactive reports, e.g. with to 39.2 million. At the end of 2008,
Tracking Events (change in shipment status) or records indicated there were 81 million
a new purchase order status being generated. Internet users in India. While that
sounds like a lot, it still only represents
7 per cent of the entire population.
10 www.logwin-logistics.com – Logwin Magazine – 02|09Grass fire or long burning issue?
Together, the BRIC countries currently gene-
rate 15 per cent of global economic output
and are responsible for 13 per cent of inter-
national trade. With US$2.8 trillion, they also
hold almost half the global reserves of foreign
currency. In recent months the BRIC stock
exchanges have left the sharemarkets in the
industrialised countries in their wake. Never-
theless, experts doubt that the large and newly
industrialised countries are fully detached
from developments in the industrialised world.
Although their domestic demand has in-
creased considerably, their internal markets
can only partially compensate for the huge
The leaders of the BRIC countries at their first summit in June 2009 (from left): decline in exports. The BRIC quartet has never
Luiz Inácio Lula da Silva (Brazil), Dmitry Medvedev (Russia), Hu Jintao (China) disengaged itself from the industrial countries
and Manmohan Singh (India)
on the stock exchange as the global financial
markets are too closely interwoven with each
other.
In accord: Indian tiger and
Chinese dragon.
BRIC IS BACK
The economic relationship between the BRIC
The fantastic four partners India and China, which also share a
common border, is especially strong. Trade
agreements underlining their common eco-
nomic interests have existed since the1980s.
From troubled kids to star performers: In the wake of the catastrophe on
The volume of trade between the two most
the world’s stock exchanges in 2008, the four BRIC countries – Brazil, populous countries in the world is currently
Russia, India and China – are the major beacons of hope in the crisis with estimated to be worth around US$30 billion.
very buoyant share markets. Following the USA, China is India’s most im-
portant export partner, with the neighbouring
country occupying the number one spot for
imports. Popular Chinese exports include
The BRIC countries are seen as the most Four countries, one superpower machines and electronic appliances. India’s
promising emerging markets. Roughly 40 per trade consists primarily of mineral oil products
cent of the world’s population, i.e. 2.8 billion In June of this year the BRIC heads of state, and textiles, but also IT services and software
people, live in these four newly industrialised Luiz Inácio Lula da Silva, Dmitry Medvedev, products. Numerous Indian companies, for
countries. The term BRIC was coined in 2003 Manmohan Singh and Hu Jintao met in the instance in the automotive or pharmaceutical
by Jim O’Neill, a strategist with the US invest- Russian city of Yekaterinburg for the first time industry, have relocated their activities to
ment bank Goldman Sachs. According to for a joint summit. In addition to some diffe- China. I
O’Neill, the People’s Republic of China would rences, there was one point upon which all
pass the USA as the world’s most powerful agreed: Nothing in the world will function
economy. Today, just six years later, the talk without them in future. Selfconfident, they
is of 2037. Then, according to the forecast, are demanding a new global monetary system.
the new world order will be dominated by the They argue that the international financial
Middle Kingdom, together with India, Brazil institutions must adapt to the modified global
and Russia. economy. The countries have called for a
stable and predictable monetary system, at
least indirectly supporting a reduction in the
role of the US dollar as the reserve currency.
The BRIC superpower appears to be emanci-
pating itself from the USA during the global
crisis.
www.logwin-logistics.com – Logwin Magazine – 02|09 11interview
Hybrid technology on the move:
Dynastart, the 15 kW electric device made
by ZF Sachs, is incorporated into Mercedes
Benz’s S400 Hybrid and BMW’s Active
Hybrid 7.
On the same wavelength
Working together for over 40 years – that counts for a lot in the business world. Logwin Magazine asked John Sobeck,
Head of Logistics for ZF Friedrichshafen AG, about the ingredients for success. How does a collaborative partnership
continue to be effective over so many years? And what does the future together look like?
Logwin Magazine: ZF has been working with Logwin Magazine: What effect has the John Sobeck: At first it was straight delivery
the logistics provider Logwin for 46 years now. current realignment at Logwin had on you? services that were the main focus. From the
How did the relationship begin and what is the John Sobeck: The realignment doesn’t have 80s onwards, we’ve been making greater use
secret to this long-term partnership? any significant effect on us – it’s happening of logistics services. The biggest change has
John Sobeck: The two companies began behind the scenes, so to speak. What counts come about through IT. It’s only when the flow
working together years ago with dispatch is the quality of the logistics service, both in of goods is accompanied by a real-time flow
deliveries for Fichtel & Sachs. From that time terms of freight forwarding and production- of information that we are able to react with
on, a relationship of trust has been built up related value-added services. And Logwin gets the speed we need to remain competitive.
over the years. Right up to the present day, it right. Putting it all into practice remains as impor-
the secret is consistently high-quality service tant as always – we source parts from more
at competitive prices, and the willingness to Logwin Magazine: What does the automotive than 2,500 suppliers all over Germany. The
continue developing with us. industry require of logistics providers? To what coordination of the various logistics processes
extent have the logistics requirements changed has to run like clockwork.
over the last few decades?
12 www.logwin-logistics.com – Logwin Magazine – 02|09Logwin Magazine: What are the value-added Logwin Magazine: With the addition of new
services that are of particular interest to you? areas at the beginning of the year Logwin has
John Sobeck: As you’d expect, it’s those become your sole freight forwarder for Ger-
services that require special knowledge of the many. What are the advantages of bundling all
industry and a particular level of experience. these services together?
That includes production-related logistics John Sobeck: ZF is pursuing a clear strategy
services such as on-site logistics for running of standardising our processes with a high
our parts warehouse, developing custom degree of automation. This requires a high
packaging solutions and operating the level of integration between the IT systems of
all parties involved in these processes. With
this in mind, we are keen to work in closer
“ What counts is the quality collaboration with just a few service providers.
of the logistics service, Logwin had previously been our freight for-
both in terms of freight warder in eight postcode regions. As we were
forwarding and production- happy with their service, it was an obvious John Sobeck, Head of Logistics
decision to assign the other areas to Logwin ZF Friedrichshafen AG
related value-added as our logistics partner. Consolidation was
services. ” another key factor – Logwin bundles single
dispatch items and smaller partial loads for
distribution warehouse for ZF Sachs near the us at the central hub in Gochsheim.
Schweinfurt production facility. From there
Logwin supplies 40 assembly facilities and Logwin Magazine: ZF ranks amongst the
manages all aspects of coordination and dis- world’s ten largest automotive industry sup- our products with more efficient and more en-
patch, from warehousing and configuring the pliers. What is your strategic focus – speaking vironmentally friendly fuel saving technology.
kanban system right through to electronic in relation to the current economic situation
just-in-time delivery, stock control and con- as well – to maintain and build upon this Logwin Magazine: Mr Sobeck, thank you very
tinuous inventory. But also, managing empty position? much for this interview. I
containers, organising container loading and John Sobeck: The current economic situation
provisioning, which includes supply control has had a particularly severe impact on the
and freight management, are all important heavy commercial vehicle market. At the
elements. present time we are focussing on developing
Logwin’s staff are responsible for coordinating
various elements in the logistics chain – from freight The assembly of ZF Friedrichshafen AG’s Ecolife/
forwarding right through to a range of production- Ecomat commercial vehicle transmissions is a
related value-added-services. process which demands the utmost precision.
THE ZF GROUP
ZF Friedrichshafen AG is
one of the world’s lead-
ing automotive industry
suppliers, specialising in
engine and vehicle tech-
nology with 125 production sites in
26 countries. ZF employs around
61,000 workers, including around
24,600 outside Germany. In 2008,
ZF recorded sales of 12,501 million
Euros.
www.logwin-logistics.com – Logwin Magazine – 02|09 13sprinter network SPRINTERS NEVER SLEEP Night and Day and Night and Day In the beginning there was the (printed) word: He who reads the morning newspaper starts the day well informed. To ensure that printed products arrive for their readers hot off the press, Logwin has developed the “Sprinter Network”. Overnight vans deliver printed products and other vital documents to their destinations. But the logistics service wouldn’t live up to its name if it wasn’t constantly on the lookout for synergies: Why not use the vehicles during the day as well? For example, for the same day delivery of original parts to automotive dealers and workshops. 14 www.logwin-logistics.com – Logwin Magazine – 02|09
Print media hot off the presses or genuine spare parts in a hurry –
over 500 Sprinter vehicles provide rapid, reliable deliveries around the clock.
The Sprinter Network has been a media success story. Anyone buying Cars must be driven
the DIE WELT newspaper at the train station or receiving the Handels-
blatt business daily on a plane is doing so thanks to Logwin’s logistic Stefan Berger, an employee in the field for an agricultural machinery
performance. The basis for the flexible, reliable delivery: Clever sched- manufacturer covers 2,500 km each week. Today his company car
uling, professional drivers, access to a large fleet of modern vehicles is due for a service. His BMW is booked in at the workshop for eight
and 11 locations throughout Germany. But it is not only printed products o’clock on the dot. The car must be ready again at 1 p.m. – then off to
and other vital documents that need to arrive safely and quickly: Rapid the next customer. At 9:30 a.m. the head mechanic calls: “Mr Berger,
delivery is also decisive in the automotive world. Why? Let’s have a have you noticed the crack in the rear window?” A repair is no longer a
closer look ... real option. Whether they should replace the window? “Have you got
an original window in stock?” asks Mr Berger. No, but they could get
www.logwin-logistics.com – Logwin Magazine – 02|09 15sprinter network
SPRINTER NETWORK – FEATURES AND SERVICES
I Fixed and exclusive routes in response to customer requests
I Centralised fleet planning for maximum availability
I IT tools for planning, monitoring and evaluating the routes;
Reporting
I Regional service centres ensure local presence
I 26 locations in Germany, the Czech Republic and Poland
I 200 employees
I Over 500 Sprinter vehicles
one, the head mechanic assures him. Within the next three hours, sub-contractors for a number of years. The advantage is not only in
guaranteed. How is that possible? terms of trust, but above all experience. The drivers know how to avoid
A quick response in the automotive world is not the exception, but traffic jams and where they need to leave consignments with each re-
rather the rule. “A stationary vehicle costs money”, states Kai Albus, cipient.” The drivers return between 3 p.m. and 5 p.m. The last sprinter
Head of Logistics Engineering | Warehousing Industrial at Logwin. is now ready at the agreed changeover point to be deployed on its
“Regardless of whether it is a company vehicle or a private one, rapid nightly media shift.
repair is always the most efficient solution. This is because when the
costs associated with a rental vehicle are included, things can get
expensive.” Mr Berger won’t need a replacement vehicle. After the Evening printing, nightly delivery, morning read
call the head mechanic immediately orders the new rear window from
the regional BMW warehouse. The logistics service provider Logwin is Hundreds of vans pick up printed products from printing houses and
responsible for delivery: When the Sprinter leaves the yard for the next publishers right across Germany every evening on behalf of Logwin,
tour at 10:45 a.m., the original part is already on board. This Logwin operating like a relay. The vehicles that have just picked up printed
service even has its own name: “PartsDirect”. materials and delivered them to one of the Logwin distribution centres,
then set off shortly after to railway stations, airports, media wholesalers
and Post Office mail centres to deliver the newspapers. “We bundle
One example: Original parts distribution from the consignments in our distribution centres”, explains Lutz Westphal,
Berlin project manager for Logwin’s Transport and Retail Networks business
unit. “The consignees receive magazines and newspapers from various
The logistics provider operates 40 routes from Berlin for BMW. The publishers and printing houses. We bundle the specific media for each
starting point is the Dealer Metro Distribution Centre (DMDC) at No. 4 recipient from the deliveries we receive in our logistics centres.”
Naumburger Strasse. Within 15 minutes the van has been loaded with For example Neu Isenburg: 200 vehicles are deployed for Logwin
original parts of every size and type. Small items are packed in crates customers from 6 p.m. until the early hours of the morning. “The drivers
and all consignments sorted according to their recipients. come from the Frankfurt/Main region”, says Lutz Westphal. “This huge
The sprinters have a fixed route. But no driver turns the key until he area is where the Frankfurter Rundschau, DIE WELT kompakt, Hürriyet
has gone through the current schedule very carefully. This is because and other publications are printed for domestic and international con-
variations due to urgent orders such as the one for Stefan Berger are sumption.” The printing and publishing houses are only a stone’s throw
not uncommon. Sometimes, other consignees are added to the list or away from the Logwin facility. On average it takes 15 minutes for the
certain regulars are absent when they are fully stocked at the present sprinters to return with their freight. As soon as the consignments have
time. been assembled, the drivers deliver to the railway station kiosks in
Each driver will have visited up to 15 car dealers and workshops Darmstadt first, then the press wholesaler in Langen or Frankfurt Air-
along a route before he pulls up at the DMDC site again. The sprinters port - the scheduled routes are planned in accordance with the needs
set off from here a total of seven times; the first tour starts at 8:45 a.m., of individual customers. “The newspaper must be there when the shops
the last at 2:45 p.m. Some dealers may receive deliveries four times open in the morning”, declares Lutz Westphal. “Currency counts more
a day, others twice, and some only once depending on their needs. than ever before in the Internet age. If the front page needs to be modi-
Sometimes drivers cover up to 450 km. fied in response to breaking news immediately prior to printing, logistics
Logwin only employs sub-contractors with their own vehicles for companies need to respond accordingly.” Logwin’s Sprinter Network is
the Sprinter Network. A groomed appearance applies equally to both so flexible that urgent and/or immediate consignments arrive reliably
equipment and personnel. “Ultimately we are representing our and quickly. In this case the secret lies largely in its size: Logwin has so
customers at the dealers’ premises”, says Kai Albus. “Consequently, many vehicles and drivers across Germany that it is able to respond
we also value continuity: We have been working together with most spontaneously anywhere. I
16 www.logwin-logistics.com – Logwin Magazine – 02|09projects
An Airbus engine as a passenger
Every car owner knows how important regular maintenance and inspections are. As we’d all expect, the bits and pieces
that make up an aircraft also undergo routine checks and are sent for servicing when needed. An airline in India relies on
the expertise of SR Technics in Zurich for the crucial maintenance of its aircraft engines.
Stage one complete: Vincenzo Ballatori from Fischer Road Cargo and Logwin Export staff member,
Jeanne Graf, ensured the massive engine arrived in Brussels on time.
After servicing, the Pratt & Whitney PW4168 turbofan engine that powers an Airbus A 330 needs
to find its way back to India as quickly as possible. No easy task for a cargo item that weighs
8,500 kilograms and is over five metres long. “The biggest challenge is to avoid downtime for
the Airbus and find a suitable air freight connection quickly,”
says Jeanne Graf from Logwin’s air freight office in Zurich.
“We engaged Singapore Airlines to handle the transport.”
Weighty passenger
The Logwin team in Switzerland first trucked the aircraft engine to Brussels just over 500 km SR TECHNICS
away. Appropriately packed for air transport and securely stowed in the belly of a Boeing 747,
the mammoth consignment embarked upon the second leg of its journey to India. After an
8-hour flight the XXL item reached its destination of Mumbai on schedule and in perfect SR Technics is one of the world’s
condition. leading independent providers of
Jeanne Graf: “This job involved a lot of organisational effort. It wasn’t just a heavy freight item; technical services in the civil aviation
because of fuel and lubricant residues, it also qualified as hazardous goods. On top of that, we sector. Each year, SR Technics looks
had to deal with long and involved customs processing in India.” after around 800 aircraft, 300 engines
and 78,000 components for its 500
clients.
www.logwin-logistics.com – Logwin Magazine – 02|09 17projects
SPEEDY SPARE PART FOR BELUGA SHIPPING
530 m below and 112 degrees east.
In 1440 minutes.
A consignment for a shipping customer from Vorarlberg (Austria) to the mouth of the Yangtze is nothing strange in itself.
But when it is flagged as being “at very short notice” and “extremely urgent” then it is a case for Logwin’s Ship Parts
Logistics specialists.
Hamburg, 13th August 2009, 10 a.m.: deadline is 8:05 p.m. – time enough for the BELUGA SHIPPING GMBH
Stefanie Räuscher, Export Manager in 500 km trip under normal circumstances. But
Logwin’s Hamburg airfreight office, takes then: Traffic jam on the A8 motorway at Stutt- Founded in Bremen in 1995, Beluga
the call. On the other end of the line is Katrin gart! Nothing is happening and the schedule Shipping GmbH can now be found in
Krone from Beluga Shipping GmbH in Bre- is under severe pressure. The Logwin team in 13 locations worldwide with around
men. The motor vessel “Beluga Constellation”, Hamburg is in constant contact with the driver 475 staff. As a project and heavy goods
a multi-purpose heavy lift cargo ship in the and Lufthansa, who are to fly the replacement specialist, the shipping company cur-
Beluga fleet, desperately needs a new shaft part to Shanghai. They do everything possible rently has 66 multipurpose heavy lift
for one of the two heavy duty cranes on board. to ensure that the consignment can still go on cargo ships with a crane capacity of up
The challenge lies in the fact that the ship is board despite the delay. to 700 tonnes, but this will increase to
in Shanghai, while the requisite part is in Nen- 1,400 tonnes by the end of the year.
zing (530 m above sea level) in the Austrian Frankfurt, 13th August 2009, 9:50 p.m.: They transport all kinds of XXL freight
Alps. Furthermore, the “Beluga Constellation” The consignment reaches Frankfurt airport to every harbour on the planet, includ-
will only be docked in Shanghai for two more almost 2 hours behind schedule, but the ing those far from the standard trade
days. Consequently, the replacement part Lufthansa aircraft is still waiting. 12 hours routes. The consigned goods include
absolutely must arrive within 24 hours. after the initial phone call in Austria, the harbour cranes, wind power systems,
plane lifts off for Shanghai with the shaft generators, turbines and luxury yachts,
Feldkirch, 13th August 2009, 10:30 a.m.: stowed securely on board. but also entire factories.
Stefanie Räuscher has the coordination under
control. She immediately informs her colleague, Shanghai, 14th August 2009, 3:20 p.m.:
Tobias Holderied in the Austrian town of Feld- Flight LH 732 lands in Shanghai on time. The
kirch. He arranges the urgent pickup of the customs formalities organised in advance go Marintec China 2009
consigned express item from the supplier in without a hitch, so the “Beluga Constellation”
Logwin will be exhibiting at “Marintec
Nenzing 50 km away. Then Tobias Holderied crew are able to take receipt of the consign-
China” in Shanghai from 1-4 December
and his team check whether the part is suitably ment shortly afterwards. “Assignments such
2009. The trade fair has been held for the
packaged for the flight and apply airfreight and as this are routine for our Ship Parts Logistics
last 28 years and is regarded as one of
express labels to the consignment. At the same Team, but are still always something special”,
the most important maritime business
time they have already prepared the transport explains Stefanie Räuscher. “Unforeseen
exhibitions.
documentation. circumstances really motivate us!”
www.marintecchina.com
Feldkirch, 13th August 2009, 3 p.m.:
The special consignment sets off from Feld-
kirch headed for Frankfurt Airport. The delivery
18 www.logwin-logistics.com – Logwin Magazine – 02|09SILOING AS A LOGISTICS STR ATEGY
From bulk to packaged goods and back
At first glance, the use of silos for storing and/or transporting bulk goods would always seem to be the right choice.
The large capacity of silo-type containers would appear to provide maximum utilisation. However, it often makes sense
to switch within the supply chain – namely, to refill bulk material from silos into packaging and then back again (siloing).
Almatis, a leading supplier of high-quality alu- “For example, the distance between the pro- annum change transport containers in Lud-
minium oxide materials, is one good example. duction site and consignee are too large for wigshafen and Weiden – and the trend is
“Our customer Almatis is only a stone’s throw direct transportation in a silo container in the upward. The packaged goods deliveries then
away from our facility in the Ludwigshafen case of intercontinental dispatches. There- continue their local or international journey
industrial estate, only about 8 m from door to fore, the bulk goods are packaged and packed to their consignees in silo trucks. We have 60
door”, explains Klaus Wolf, Branch Manager on pallets in shipping containers.” of our own silo and tank vehicles available for
at Logwin in Ludwigshafen. When the storage Paper and foil sacks, octabins or big bags pan-European land transport, as well as over
capacity at Almatis does not suffice, Logwin are suitable for packaging loose bulk goods. 150 subcontracted vehicles permanently
helps out: “We fill the aluminium oxide pro- Stable plastic big bags are primarily employed underway for Logwin. I
ducts into so-called big bags”, explains Astrid for transporting lightweight bulk goods and
Lindner, Manager Transport & Logistics and construction materials. They come – some pal-
Tolling at Almatis. “These can simply be stap- letable – in different sizes ranging from around
led for interim storage purposes.” Depending 500 to 2,000 litres.
on the volume and customer requirements,
the material can be transported either in the ALMATIS GMBH
big bags or in silo vehicles. “At the time of Individual storage and
production it is often unclear whether the transportation Almatis GmbH is a leading supplier of
consignee requires the product in bulk or high-quality aluminium oxide materials.
packaged”, explains Wolf. Logwin refills the Logwin transports packaged and unpackaged Among other things, these are used for
contents accordingly. goods for customers, including those in the manufacturing fire resistant products,
chemical and construction industries. The ceramic goods, papers, coatings and
packaged goods are refilled, stored and/or for polishing. Almatis employs 900 staff
Clever alternative siloed in Ludwigshafen or Weiden. Both in 20 locations worldwide. Production
Logwin facilities have pallet storage spaces facilities are found in China, Germany,
Whether chemicals, building materials or for powdered and granulated products. “Our India, Japan, the Netherlands and the
minerals, siloing raw materials has become special equipment allows us to refill any type USA. The company’s headquarters are
fashionable as an alternative to pure silo trans- of goods from packaging into silo containers in Frankfurt am Main.
portation. “This intermediate step allows us appropriately for each product,” says Klaus
to cater better to the project-related require- Wolf. “We prevent impurities by using inter-
ments of our customers”, explains Klaus Wolf. mediate sieves.” Around 20,000 tonnes per
www.logwin-logistics.com – Logwin Magazine – 02|09 19interview
TALKING TO L AI BOU LEONG
Leading through innovation
Fresenius Medical Care (FME) is the world’s largest, vertically-integrated supplier of products and services for people
who have to undergo dialysis because of kidney failure. Logwin Magazine talked to Lai Bou Leong, Managing Director of
Fresenius Medical Care, Singapore, about the company’s current business development and the special characteristics
of the South East Asia market.
Logwin Magazine: Fresenius Medical Care has branches in over 100 Lai Bou Leong: Our responsibilities encompass business in Singapore
countries. What makes your company stand out? and Brunei, which is deemed to be a single business unit. Each business
Lai Bou Leong: FME is the only global company which offers both unit is responsible for business development and overall Profit and Loss
products and services for the entire dialysis – medical care continuum. accountability for the territory under its care. The business units coope-
We have successfully combined our position as technological leader rate closely with one another with regards to regional manufacturing
with clinical as well as nursing expertise and therefore offer extensive and procurement initiatives.
coverage of both the goods and services segments.
Logwin Magazine: Are there special regional characteristics which
Logwin Magazine: 2008 need to be taken into account in these countries?
was another successful Lai Bou Leong: The practice and standards in delivering dialysis
financial year for Fresenius therapy are fairly universal. Local factors such as affordability of
Medical Care. What is your patients and payors, healthcare infrastructure and access to health-
current position and how
much have you been affec-
ted by the global financial FRESENIUS MEDICAL CARE
crisis?
Lai Bou Leong: In Singa- Fresenius Medical Care (FME)
pore, our customers have – the largest company under
been more cautious in the Fresenius Healthcare
spending, especially on Group from Bad Homburg
capital expenditure. This (Germany) – is world market range of goods and services
Lai Bou Leong is Managing Director of is due to the fact that our leader in dialysis therapies in over 100 countries world-
Fresenius Medical Care Singapore biggest customers are and products. FME looks after wide, with its largest market
the Voluntary Welfare around 190,000 patients with in the USA. Its business activi-
Organizations (VWO’s) chronic kidney failure in a ties worldwide are divided into
which depended on spon- network of more than 2,400 two areas: North America and
sorships and donations for their funding. The impact continued on into dialysis clinics in North the international market with
this year, and we expect recovery to begin in the second half of next America, Europe, Asia, Latin the following three regions:
year. America and Africa. The Europe/Middle East/Africa,
dialysis specialist maintains Asia-Pacific and Latin America.
Logwin Magazine: What are the focal points of your activities in Singa- over 30 international produc- FME employs around 65,000
pore and/or Malaysia? What is the situation vis-à-vis business develop- tion facilities and sells its employees altogether.
ment in this region?
20 www.logwin-logistics.com – Logwin Magazine – 02|09You can also read
