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BETWEEN EVOLUTION AND REVOLUTION: INDUSTRY 4.0

INTELLIGENCEWINS

A MATURE PERFORMANCE60 YEARS OF LOGISTICSFOR CHAMPIGNON

THINK BIG PROJECT LOGISTICS IN XXL FORMAT

EDITION 4/2015

THE WORLD OF INTELLIGENT LOGISTICSmagazine

02 DACHSER magazine

years or the Early Stone Age—that is how far back

the first “hand ax production” can be traced in

Central Europe. The Abbevillian culture, one of the oldest cultures of mankind, produced

custom-made hand axes. They are supposed to fit neatly into the palm of the hand;

they were therefore oval in shape and between 100 and 250 millimeters long.

600,000Industrie 0.0

the Arab engineer Al Jazari wrote The Book of Knowledge

of Ingenious Mechanical Devices. In it, he described

humanoid automata for the first time ever, which are considered the

predecessors of robots, as well as all kinds of practical devices, such as a

hand washing device.

1205,Industrie 0.5

silk weavers in Lyon developed punched strips

of paper or punched pieces of cardboard that were

connected to one another in a chain and used to control looms.

With the invention of the high-performance Jacquard loom, this

early “software” launched the first Industrial Revolution in 1803.

1725,Industrie 1.0

Thomas Alva Edison patented the incandescent light bulb,

which enabled people to turn night into day. This made it

possible to run production in factories around the clock. Since then, electricity

has been the motor of continued industrialization.

1880,Industrie 2.0

Timothy Berners-Lee, a scientist working at the European Organization

for Nuclear Research (CERN) in Geneva, wanted to

connect its 7,000 employees. He developed a program that makes

it possible to find data on other computers and to link files.

He called this WWW, the World Wide Web. With new opportunities

for automation, the digital revolution forges ahead.

1989,Industrie 3.0

23.5 trillion (1018) bytes of data are being generated worldwide. Every single day. It would take

183,593,750 super thin 128 GB tablets to store this information. Stacked one on top of the other, the

pile would be 1,119.9 kilometers high, which is equivalent to 3,456.5 Eiffel Towers placed one on top of the other.

Big Data creates the foundation for the computerization of manufacturing technology, machine-to-machine communi-

cation, and new forms of intelligent logistics.

2015,

NUMBERS THAT COUNT

All of a sudden, everything is different. To maintain perspective when technological revolutions occur, keeping count is worth it. For example, in the case of the Industrial Revolutions.

POINT ZERO

In

In

In

In

In

Industrie 4.0

www

DACHSER magazine 03

CONTENTS

04

12

22

28

TITLE STORY

Logistics 4.0: Supply chain managementin the age of digitalization 04

FORUM

People & Responsibility: 12United we are strong: Dachser and terre des hommesEssay: Disruptive innovations:revolution comes quietly 16

EXPERTISE

Career: Getting things moving:job description of the project logistician 18Food Logistics: Pastoral happiness:60 years of collaboration between Dachser and Champignon 22

NETWORK

Network Expertise: News from the Dachser world 26South Africa: In the country of Good Hope 28

BUSINESS LOUNGE

Smart Data: Bernhard Simon speaks with the economist Prof. Michael Henke 32

GOOD NEWS

Win-win with candles and gnomes: Merry Christmas in Sweden 35

Publishing informationPublished by: DACHSER SE, Thomas-Dachser-Str. 2, D – 87439 Kempten, Internet: www.dachser.com Overall responsibility: Dr. Andreas Froschmayer Editor-in-Chief: Christian Auchter, tel.: +49 831 5916-1426, fax: +49 831 5916-8-1426, e-mail: [email protected], Martin Neft, tel.: +49 831 5916-1420, e-mail: [email protected] Editors: Theresia Gläser, Christian Weber Editorial Assistant: Kathrin Geis, tel.: +49 831 5916-1427, e-mail: [email protected], Andrea Reiter, tel.: +49 831 5916-1424, e-mail: [email protected] Publisher: C3 Creative Code and Content GmbH, Heiligegeistkirchplatz 1, D – 10178 Berlin, tel.: +49 30 44032-0, e-mail: [email protected] Project Management C3:Marcus Schick Design: Ralph Zimmermann, Kerstin Spörer Photos: all photography Dachser except thinkstockfotos.de (pp. 2, 3, 7, 8, 9, 16, 17, 22, 23, 26, 27, 28, 29, 30, 31), Festo AG & Co. KG (pp. 1, 3, 4, 5), Fraunhofer IML (p. 6), Audi AG (p. 11), Klöckner & Co. SE ( p. 11), terre des hommes (p. 3, 12, 13, 14, 15), Elbe & Flut (p. 18, 19, 20, 21), Käserei Champignon(p. 24), Affari AB (p. 35) Illustration: Ralph Zimmermann (pp. 32–34) Printer: Holzer Druck und Medien Druckerei und Zeitungsverlag GmbH, Fridolin-Holzer-Str. 22-24, D – 88171 Weiler im Allgäu Print run: 44,000/56th volume Publication: 4x per year Languages: German, English, French, Spanish. DACHSER magazine is printed on NovaTech Paper certified in accordance with the FSC® mix for sustainable forestry.

F Further information can be found in our DACHSER eLetter.

Autonomous processes:robo-ants show whatthey can do

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04 DACHSER magazine

INTELLIGENCEWINS

DACHSER magazine 05

TITLE STORY

Digitalization and the fourth Industrial Revolution are changing our world from the ground up. How can logistics help supply chains get fit now for the new digital age?

A nts in the house—we can really do without that,right? Not really, say the developers of Festo. Thesecontrol and automation technology experts from

the Swabian town of Esslingen brought several ants withthem to the Hannover Messe 2015, the most important industrial trade show in the world. These were not just any ants, but BionicANTs. Equipped with sensors, cameras,and microprocessors, these robo-ants—produced on a 3Dprinter—teeter across a test surface. Together, the 14-cen-timeter creatures transport objects that are much biggerthan they are to different destinations. No remote control is used. In the process, they communicate and respond autonomously just like real ants, while all data is processedon the computers.The appearance of the BionicANTS at the show representsmore than just a technology game. The ants are following an ingenious plan. Their “intelligence” is based on algo-rithms. Obeying the will of their creators, more and more

of these clever systems will define our production and determine supply chains. Economists believe that the fourthIndustrial Revolution is already well underway. As an in-herent part of what is referred to as Industry 4.0., there are already extensively networked, autonomous productionlines in use in many smart factories. These lines produce individual products up to and including single items—theexpression of a fundamental departure.

Data is the oil of tomorrowEconomists and digital experts in political circles believethat data will be the “raw material of the future,” in otherwords, the oil of tomorrow. In just the last two years, moredata has been saved than in all of human history. Even ifrecording each and every obvious or supposedly banalprocess does not appear to make sense at first, the scale ofthis cannot be underestimated. The German news maga -zine Focus describes the challenge in a nutshell: “There ‡

What other new logistics solutions and services can weoffer our customers?What will the work-place look like in thefuture? Dachser Idea and Innovation management Idea2net addresses these and other questions. In this framework, employees and exe -cutives are called on to develop responsesand come up with new ideas to meet the challenges of thefuture.

is huge potential in the linking of various data. During the computer age, we were busy with individual data -bases, now it’s all about networking them. If data is the oil of the future, then many oil fields have not even been discovered yet.” Digitalization does not just involve fasci-nating technology and lessening workloads. The related economic incentives are also lucrative for market players.The Accenture study, “Winning with the Industrial Internetof Things,” among others, makes a case for this. Accordingto it, in the U.S. alone, investments in the Internet of Things and the resulting production surges are going to contribute an estimated USD 6.1 trillion to the total GDP by 2030. The same applies to Germany as a manufacturinglocation where similar investment efforts could increase the cumulative GDP by USD 700 billion—or 1.7 percent—by 2030.Time is short. “Booming Internet commerce, the advance of digitalization, new business models, and competitors arechanging goods transport and logistics. Moreover, the com-plexity of the requirements is growing in many dimensionssimultaneously,” says Professor Michael ten Hompel. He hasspent many years at the Fraunhofer Institute for MaterialFlow and Logistics in Dortmund researching how data processing can be used to combine and shape industrialprocesses as well as the supply and procurement chainsmore and more efficiently.

“We have to do a better job of reconciling logistics and IT because it harbors great potential for a sustainable logisticslocation,” urges Professor ten Hompel. If the real world, its processes, and its organization were always reflected digitally, there would be multiple, never-before-imagined options for controlling them and their multifaceted rela-tionships and connections at all times and for adapting tocurrent needs. Digitalizing work and process worlds canopen up exciting perspectives. Here are two examples todemonstrate this:

Example 1: In a research project, Dortmund-based Fraun-hofer developers from Professor ten Hompel’s team came up with new solutions for intralogistics. They used the model of swarm intelligence in ants to replace traditionalconveyor technology in the warehouse with autonomous transport shuttles networked to one another.In a 1,000-square-meter hall, the researchers made a modelof a small distribution center, including a high-bay storagearea for 600 small parts carriers and eight picking sta -ti ons. “The centerpiece of the test area was a swarm of 50 autonomous vehicles. In the future, the autonomoustransport robots with ant-like intelligence will take over all jobs in the warehouse, from removing items from theshelves to delivery to picking stations, thus replacing tra -ditional conveyor technology solutions,” explains Professorten Hompel. In the process, the systems in the backgroundwould organize all transport routes and make it possible for both the logistics specialists and the customer to knowwhere the goods are at all times.

Example 2: At a digitalization conference in Berlin, GisbertRühl, CEO of Klöckner, recently reported on digitalizingprocesses and customer relationships in the steel industry.Klöckner wanted to streamline its processes and make themmore efficient. Most of all, management questioned the extremely expensive temporary storage of a million tons of steel annually. In Silicon Valley, Rühl adds, he came upwith the idea that intelligently linking and analyzing marketand company data would make customer processes muchmore efficient and adaptable.However, after more than six months, a company innovationproject on this topic brought no satisfactory results—the internal structure within the company was too cumber -some for “out-of-the-box” thinking, says Rühl selfcritically. The answer was a sort of start-up, spin-off com pany called kloeckner.i in Berlin. There, all projects

We have to do a better job of reconciling logistics and IT because it harbors great potential for a sustainable logistics location

Professor Michael ten Hompel

Transport shuttles at Fraunhofer

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06 DACHSER magazine

focused on digitalizing the supply chain were bundled under one roof in a “Group Center of Competence.” Sincethen, its main tasks have included developing, testing, and rolling out company-wide digital solutions as well as co ordinating the digitalization of all Klöckner & Co. country organizations. According to Rühl, one result is already visible: the company has an even better under-standing of when and where steel is needed, and how much. Less inventory is required, so less capital is tied up.

Setting standardsUnlike many other industries, digitalization has long sincearrived among the operators of large logistics networks.“The pre-requisite for successful and expedient digitaliza-tion is the standardization and harmonization of pro -cesses as well as internationalization,” explained BernhardSimon recently at a conference of the German logistics magazine, Deutsche Verkehrszeitung or DVZ. Dachserachieves this through pan-European connections between36 countries, 333 European Dachser logistics locations in 23 countries—combined with consistent IT systems Domi-no and Mikado and comprehensive, uniform regulations.“We do not sell price-based or tariff-based services, butrather integrated solutions,” explains Bernhard Simon. Allgoods and processes are controlled online—consistently and everywhere with maximum transparency for all parties involved. “Today, logistics must be able to integratevalue-added chains into global networks,” says Simon. Thedigitalization of production and sales systems creates theconditions for this, for example, by scanning all processes, digitalizing the flow of goods in systems, transparency, and autonomous processes.Reconciling logistics and IT leads to “Cyber-Physical Systems,” or CPS. Behind this is the intelligent linking of the real and virtual world. This means that flows of goodswithin fully developed physical networks are also com -plexly networked information and data flows. In Logistics4.0, transport from A to B is “only” one side of the coin. “Inthe meantime, we are almost more of an information logistics specialist than a goods logistics specialist,” findsBernhard Simon. The digital flow of goods model is found, for example, on the eLogistics platform for ship -ment tracking and order management, or in the EDI, the Electronic Data Interchange Center for data exchange withthe customer. Added to that are other technologies at the

warehouse as well as an online supply chain event manage-ment system that oversees everything and that Dachser uses to precisely control each individual shipment, frompick-up to delivery. “In the Dachser world, we are currentlyprocessing all orders electronically, without exception. Almost all of our 17,000 customers use eLogistics tools. Our core IT systems offer integrated and globally uniformsolutions,” explains Michael Schilling, who, as COO for RoadLogistics at Dachser, is also responsible for IT.

Nothing works without peopleDigitalization holds a great deal of potential for shaping not only processes, but also business models. However, Industry 4.0 solutions are also creating worries about jobsdue to their increasingly faster and more efficient pro -cesses and advancing robotics. Does the road toward full auto mation mean that the human will ultimately be re-placed? “Actually, the opposite is true,” assures Professor ten Hompel. “Humans are anything but redundant in Industry 4.0. IT systems have to prepare the information ‡

Barcode scans unite thereal and digital world

Industry 4.0: networking on the job

Read more on p. 10

DACHSER magazine 07

TITLE STORY

TITLE STORY

08 DACHSER magazine

NETWORKEDWORLDS: LOGISTICS 4.0

Logistics 4.0 check-up at Dachser

Smart technologies

‡Barcode scanning

Logistics and IT integration

‡Dachser as a system house and “private cloud”

Smart Logistics solutions

‡ Individual contract logistics and IT

Big Data vs. Smart Data

‡Process-oriented data analysis

Internet of Things/Services

‡System capacity connections

Horizontal/vertical integration

‡From processes to systems

Opening for interfaces

‡Customer platform: Dachser eLogistics

INFO

The fourth Industrial Revolution is advancing. “In-

dustry 4.0” is becoming a model for a forward-

looking global economy. Logistics is one of its

most important “supporters” and “trailblazers.”

The structures at Dachser follow the basic prin -

ciples of the fourth Industrial Revolution: Decen-

tralization, autonomous processes, and organized

networks are becoming drivers of development.

While logistics suppliers like Dachser once inte-

grated process chains into value-added chains,

nowadays, they are integrating the value-added

chains into global networks.

Cyber-physical systems in which IT goes hand-

in-hand with the physical world are creating the

foundation for this. Online and offline worlds are

thus coming together. The individual logistics

processes are therefore defined by the use of

barcode scanners, information logistics, and data

exchange in the EDI Center, digitalization of the

flow of goods in systems, and maximum trans-

parency of all process steps.

Manufacturer Transit

DACHSER magazine 09

TITLE STORY

Transit/Warehouse

Barcode scanning

Data exchange in the EDI Center

Contact to the shipment from anywhere in the world

Dachser Private Cloud

eLogistics

Internet workplace/Big Data analyses

Customer

so that people are able to use it as a basis to make reason -able decisions in production.”“When the computer was introduced, massive job losseswere anticipated in industry,” says Jörg Friedrich, head of the Education and Training department at the VerbandDeutscher Maschinen- und Anlagenbau or VDMA (GermanMechanical and Plant Engineering Association). Today,however, with a workforce of over a million, more peoplethan ever before are working in the German plant con -struction and machine manufacturing industry. Accordingto estimates from the Boston Consulting Group (BCG),390,000 new jobs could be created in Germany alone overthe next ten years as a result of the trend toward Industry 4.0. The BCG also foresees that the transformation duringthis timeframe will mean an additional EUR 30 billion in the GDP. New intelligent products in machine manufac -turing that support Industry 4.0 would contribute to this, onthe one hand. On the other, Industry 4.0 would facilitate the production of a multitude of products, thereby also better serving demand in niches, which could not previ -ously be reached.Nevertheless, Professor ten Hompel reminds us to questionthe role of humans in our search for the ideal flow of materials: “We must always integrate people intelligently,taking into account their individuality,” he stipulates. Because, in the end, technology and its products must serve people, not the other way around.“The demands of our customers and the market are chang-ing at an increasing rate. That’s why we have to calculate and streamline flows of goods using better and better meth-ods,” says Michael Schilling. “Our IT department currentlyhas 600 employees who have built up an extensive total data architecture and, in cooperation with our customers,are constantly updating and enhanc ing it. “To guarantee that customer data is handled with a maximum level of security and trust,” adds Schilling. Dachser relies on a private cloud within its own, highly protected data center.The ISO 27001 certification is the heart of the data pro -tection concept.The digitalization approach at Dachser pursues the goal ofnot only overseeing changes in its business processes andalong supply chains, but also actively shaping them. And itis doing so by efficiently networking B2B and B2C saleschannels and merging online and offline worlds, as they are driven by eCommerce. One example of this is the prod-uct targo on-site, one of several that Dachser is using for its

customer Kare in B2C furniture logistics (see also DACHSERmagazine 2/2015). Through the use of eInvoice, the Down-load Invoice Center function in eLogistics, the invoice is automatically prepared digitally, thus considerably shorten-ing the billing time and effort required by analog and par-tially analog versions.Another example of Logistics 4.0 according to the Dachsermethod is interlocking, which refers to the networking ofnetworks. In this process, Road Logistics and Air & Sea Logistics offer an outstanding one-two solution to cus-tomers, if needed. With the roll-out of Dachser’s own ASLsoftware Othello, Dachser inextricably combines Tracking & Tracing in Air and Sea freight worldwide with those actions in Road Logistics. “This will make interlocking evenmore attractive and efficient,” says Michael Schilling. Whatdoes this mean in practical terms? If, for example, a machinepart from Asia is to be integrated into the assembly pro -cess in Spain, the customer can track the transport status of its product transparently at all times—from the air to the truck’s arrival at the Spanish factory.

Rethinking the organizationAt Dachser, Industry 4.0 and Logistics 4.0 also mean Organ-ization 4.0. This is motivated by the conviction that large logistics networks can only be managed decentrally. “Ourstructures have grown organically over the years and have always followed today’s current basic principles of the fourth Industrial Revolution: decentralization, auto -nomous processes, organization in networks,” explains Dr.Andreas Froschmayer, Corporate Director Corporate Development, Strategy & Public Relations at Dachser. Thesystems geared toward optimal customer value required that the respec tive self-interests of the players had to be reduced in favor of the network. “The key principle is calledcollaboration,” adds Dr. Froschmayer. For Dachser as a“learning” organization, this means “traditional hierarchicalthinking is a thing of the past.”How will it go forward? “Logistics 4.0 and advancing digi-talization offer considerable developmental opportunitiesin increasingly networked markets,” asserts Dachser CEOBernhard Simon. “Those companies will win that have theability to shape logistics with autonomously controlled multi-dimensional networks across company and nationalborders.“ The “Dachser house of the future” is built on thisfoundation. The robotic ants would probably feel very muchat home in this inherently innovative culture. M. Schick

Today, logistics must be able to integrate value-added chains into global networks

Bernhard Simon, CEO of Dachser

To-do list for logistics in the digital age

Adhere to clear

standards and

regulations

Focus more on

the network

Listen to and under-

stand the customer,

implement ideas

Reduce self-

interests

Facilitate the

integration of busi-

ness processes

IT harmonization

and further

digitalization

Make collaboration

a key principle

INFO

10 DACHSER magazine

TITLE STORY

Look into the future: Gesture control for virtual assembly at Audi

Digitally controlled flame-cutting of steel at Klöckner

DACHSER magazine 11

TITLE STORY

Sustainable development

STRENGTH IN EDUCATIONA promising future for children and young

people: with this goal in mind, Dachser

began its collaboration with the children’s

aid organization terre des hommes in

India ten years ago. Additional project areas

are now being added.

Helping others helpthemselves in India

ttar Pradesh is one of the poorest and most popu-lated states in India. Children, especially girls, find it particularly difficult to escape the cycle of

poverty and misery. Together with terre des hommes overthe past ten years, Dachser has been working to provideyoung people with lasting opportunities for success througheducation and the promoting of children’s rights. “Our focusin the collaboration with terre des hommes is always onhelping others help themselves,” says Dachser CEO BernhardSimon. “In Uttar Pradesh, more than 15,300 children havetaken advantage of basic educational opportunities duringthe project period and around 60 percent of them later attended state-run or private schools. Instead of two schooland vocational complexes, as originally planned, seven ofthem were built,” continues Simon. At the same time, 97 elementary schools were given special, high-efficiency water tanks for sanitary facilities and drinking water. An additional area of focus is protecting the environment and conserving natural resources. Children planted over14,200 trees as part of a reforestation program. The pro -ject was also responsible for installing 117 composting unitsand 112 biogas systems, and 100 families received solar-powered lamps.

FORUM: PEOPLE & RESPONSIBILITY

12 DACHSER magazine

Education is the key to a better tomorrow

Getting off the wrong trackIn 2014, Dachser expanded its collaboration with terre deshommes. In Brazil, the family-owned company has adoptedthe Children’s Rights Center of Limeira. Like in Campinas, anearby center for industry and commerce in the state of São Paulo, drug dealing, organized crime, and military police raids are part of everyday life for many children andteenagers in Limeira. Together with terre des hommes andlocal government agencies, Dachser is promoting educa-tional opportunities to get these youth off the “wrong track”and to open up new prospects for them.In Namibia, Dachser is working to improve the future of children of the San, the oldest ethnic group in southernAfrica. Most live in great poverty either around enormousfarms or in shantytowns at the edge of small cities. Projectwork is therefore focused on access to education and voca-tional training as well as promoting children’s rights.

Creating something new“Together with terre des hommes, we are supporting boththe living conditions and the schooling and training of socially and economically underprivileged minorities,” says Bernhard Simon. This is an important first step in being able to define their own role in shaping the future oftheir country. The Dachser CEO believes that advocating for marginalized and socially vulnerable communities isrooted directly in the culture of an international family-owned company: “Especially as a logistics provider bring -ing people, markets, and production together, we considerit our responsibility to take a nuanced view of globalization,foster the identity of our roots, and support disadvantagedpeoples in their effort to demand their rights within the context of democratic forms of society.”

Brazil: education instead of the “wrong track”

DACHSER magazine 13

FORUM: PEOPLE & RESPONIBILITY

Strengthening children’s rights

From education to sustainability

VARANASI AND SITAPUR DISTRICT,UTTAR PRADESH, INDIA

F rom 2005 to 2015, Dachser invested around EUR 900,000 in the North Indian projectregion of Uttar Pradesh in two complementary project phases. Based on the motto

“from education to sustainability,” Dachser’s efforts during this time focused primarily onhelping others help themselves, promoting environmental consciousness, and making long-term improvements to the future prospects and living conditions of the children. Theresults are encouraging and bode well for giving people a better future. For instance, 90 per-cent of children in the project region are now receiving at least elementary-school level instruction, while the education of young girls is being highlighted. The condition of state-run schools has also improved as communities recognize the importance of education and increasingly do their part to elevate school education.

Children’s rights shape the future

LIMEIRA, BRAZIL

S ince 2015, Dachser has been working together with terre des hommes at the Children’s Rights Center of Limeira to secure the rights of children. Everyday life

for the children and teenagers of this area near Campinas in the state of São Paulo is char-acterized by violence and drug-related crimes. For children living in especially dangerousneighborhoods, the Children’s Rights Center tries to give them a way out of the vicious circle of crime and drug addiction through education. At the same time, the children, adolescents, and their families along with workers for children’s projects and represen -tatives from local government agencies are being made aware of children’s rights. To the project directors, an essential tool in preventing violence is for society to be awarethat children’s rights deserve absolute priority. The guiding belief here is that children andteenagers should be regarded as advocates of a peaceful culture and not as the cause of violence. In regular meetings, workshops, and seminars, the approximately 500 children and teenagers discover the power of their community, identify themselves with a commit-ment to children’s rights, and work to develop for themselves individual and professional opportunities in life.

Better prospects for the children of the San

OUTJO, OSHIVELO, AND TSINTSABIS IN NAMIBIA

S ince 2014, Dachser, along with terre des hommes, has supported the organization WIMSA (Working Group of Indigenous Minorities in Southern Africa) in running

educational projects for children of the San. Originally nomadic, the oldest ethnic group in southern Africa now frequently lives in slums, occupying the lowest rung on the socialladder and suffering in horrendous conditions. They continue to be caught in the down -ward spiral of poverty as only 67 percent of the children are even sent to school and just 6 percent make it to the eighth grade. Through early development programs in kinder -gartens and preschools, children at three project locations in Outjo, Oshivelo, and Tsint -sabis in North Namibia are prepared to attend elementary schools and are then given support while in school. In addition, young people, especially girls, can take advantage of vocational training, which will prepare them for working in lodges, hotels, or in construction. The completion rate here is 71 percent.


14 DACHSER magazine

TEN YEARS OF COLLABORATINGWITH TERRE DESHOMMES IN INDIA

135 villages in Varanasi and Sitapur

in Uttar Pradesh have been provided

with assistance

Over 15,300 children have been given

instruction, and 8,800 were then able

to attend regular schools; the dropout

rate decreased by 40 percent

Around 1,700 girls were given tutoring

so that they could graduate from

a secondary school

Around 4,700 young people (especially

girls) have taken vocational courses

Nearly 17,000 children took part in

events on children’s rights

Over 2,200 children attended work -

shops on the environment

117 composting units and 112 biogas

systems were installed

100 families received solar-powered

lamps

97 water tanks were installed in

elementary schools

INTERVIEW

Making the future possible

Interview with Dachser CEO Bernhard Simon about

sustainability and helping others help themselves

Mr. Simon, ten years ago Dachser began its

collaboration with the international children’s aid

organization terre des hommes in India. What are

the company’s goals in this effort?

As a global company, we want to strongly advocate for people who don’t

benefit equally from globalization. Together with terre des hommes and local

project partners, we are working to provide children with opportunities in their

local, rural societies through education and training.

What role does ecology play here?

Sustainability and a careful use of resources is at the very top of the agenda

in logistics. We can take meaningful action for children’s rights and forward-

looking education only if children inherit an environment that is actually intact,

where they can thrive in good health, and where a future is even possible

for them. This is why protecting natural resources plays such an important

role in these projects.

What is Dachser’s plan for future projects after ten years in India?

We will continue our support there because it takes patience and a long-

term outlook to make a sustained impact. In a new project phase with

terre des hommes, we will keep pursuing our mission of helping others help

themselves, for instance, by promoting women’s and youth organizations

in 50 villages or through a project to improve living conditions of the Musahar,

one of the most socially and economically underprivileged ethnic groups

of Uttar Pradesh in the border region with Nepal. In Mangolpuri, one of the

largest slums in New Delhi, we are helping young people find their place

in society through eLearning. In a fourth project, we are helping three

villages in Nepal to set up a supply, healthcare, and education infrastructure.

Together with the projects in Brazil and Namibia, we will invest over

EUR 1.1 million in the future of children and the preservation and expansion

of their natural resources over the next five years.


IN BRIEF

The children’s aid organization terre des hommes

Deutschland e.V. was founded in 1967. The name

comes from the title of the book by Antoine de Saint-

Exupéry, in which he offers ideas of how living

with a sense of responsibility can lead to a better world.

www.terredeshommes.org

DACHSER magazine 15

World-altering inventions are only recognized as such later on. Disruptive innovations satisfy needs that people don’t even know they have yet.

REVOLUTION COMES QUIETLY

T he year 1776 found Claude François Jouffroy d’Abbans on the river Doubs in eastern France witha peculiar structure. Mounted on a 13-meter-long

hull was a steam engine powering flaps in the water and creating propulsion. The French engineer wasridiculed by many of his contemporaries, who wereused to seeing sailboats and rowboats. His father, sothe story goes, even disowned him out of concern that he would blow the family fortune on unnecessaryresearch. From a financial standpoint, the concerns were realbecause Jouffroy d’Abbans was never able to makea commercial operation out of his steamshipsduring his lifetime. But then decades later they became widely adopted—gradually dis-placing the wind-powered sailing vessels used to transport people and goods. What’s astonishing is that although this transforma -tion took decades, the major shipyardsplayed hardly any role. They held on to their skepticism—and kept buildinglarger and larger sailing ships instead of investing in the new technology.

Newcomers have nothing to loseThe revolution in the ship market is a prominent case studyin Clayton Christensen’s work The Innovator’s Dilemma.The Harvard economist demonstrates that established companies lose out in the competition for pioneering inno-vations time and again. Indeed, it’s perfectly rational formarket leaders to perfect existing products based on customer needs instead of investing in uncertain new technologies. Newcomers, by contrast, have nothing to lose. For them, new concepts and approaches are often the only way to win over any customers. If the establishment then notices that a revolution is com ing, often times it’s already too late because disrup -tive inventions that permanently alter a market or even

16 DACHSER magazine

FORUM: ESSAY

Newcomers havenothing to lose

Nothing is as constant as change: innovative technologies are always changing our world

to flexible production processes using networked machinesand industrial 3D printers. This is raising the bar for the logistics industry, which is also taking advantage of thesetechnologies. Data analysis optimizes supply chains, and interconnected vehicles help manage the rising shipping volume. But as logical as the development of Industry 4.0 mayseem—in order not to lose their direction—the trendsettersof digitization may have to change course once again along the way. There are, in fact, many data privacy and security questions that are still unresolved, and the answersare extremely different in various parts of the world. Is digitization itself enough to turn the industrial world com-pletely upside down? Is some hobbyist out there some -where laying the cornerstone for a technology that will fundamentally reshape the future? As always, the same holds true: hindsight is 20/20. S. Ermisch

fun damental ways ofthinking have a way ofdisguising themselves.Products employing newtechnology initially don’t

perform as well as exist-ing ones. For example, pho -

to graphers avoided digitalcameras at first because the

image quality was so bad. Never-the less, they have turned the entire

photo industry on its head. Nowcameras themselves might be

crowded out by smartphones—devices that hardly anyone thought

would have had a chance in the saturated cellphone market until the introduction of the iPhone.

Corporate heads on the lookoutRecent events in the business world are full of examples ofhow innovators have put today’s corporate decision-makersvery much on guard. No one, it seems, wants to miss the next big trend. It is striking to note that not only the foundersof start-ups but also corporate CEOs are now frequentlyspeculating about the digitization of the economy. And the three buzzwords that can be heard in conference centersthroughout the world are 3D printing, Big Data, and the Internet of Things. Nothing less than an entirely new production logic is beingpredicted: Big Data analysis makes it possible to better recognize the individual needs of customers. And com -panies can make customized products more quickly thanks

DACHSER magazine 17

FORUM: ESSAY

At the start of the 20th

century, Henry Forddecisively ushered in the automotive agewith his new produc-tion methods. Theworld was not lookingfor his cars. He daredto take the techno -logical leap all thesame. Ford: “If I hadasked people whatthey wanted, theywould have said fasterhorses.”

EXPERTISE: PROJECT LOGISTICS

18 DACHSER magazine

DACHSER magazine 19


Hans-Ulrich Brüggemann is a man of many talents—and he must use them all when juggling multiple balls to get shipments to their destinations. Service providers, regulatory agencies, and customers frequently challenge his talent for improvisation. After all, many of the goods being transported don’t just fit in a box.

LOGISTICS

CAREERS

The floating crane arrives ...

... and lifts the locomotive out of the container ship ...

... onto the inland waterway vessel

P roject logistics may sound like paperwork, withcomplex Excel tables and long checklists, but it isone of the most exciting and challenging areas of

logistics. “When transports are en route, no two days arealike,” says Hans-Ulrich Brüggemann, Head of Sea FreightProjects at Dachser Air & Sea Logistics in Cologne. The ex-perienced project logistics expert says this while standing on a barge that is seesawing in the water of the Port of Hamburg. Hans-Ulrich Brüggemann switched from being a trainee in a bank to the freight forwarding industry. Nowhe has been in the project business for 20 years and atDachser for the last seven.A few meters away, a 61-ton locomotive hangs suspendedfrom a traverse. A floating crane is lifting the rail vehiclefrom the belly of a container ship. “The regular containerbridges are not long enough on the water side and cannot lift such a heavy weight,” the logistics expert explains.The yellow locomotive, which is really not a locomotive but a catenary maintenance vehicle, is supposed to be loadedonto an inland waterway vessel and then transported acrossthe Elbe River to Brandenburg, where its final destination is the company Gleisbaumechanik Brandenburg GmbH. “A flat-bed trailer will then transport the locomotive on the road for the last 15 kilometers to the plant,” says Brügge-mann. Two identical models are being unloaded in Antwerpand are also traveling to Brandenburg on an inland water-way vessel. The three locomotives were manufactured by a German-Chinese consortium in Beijing, but the final assembly is being completed in Brandenburg at the premises of a part-ner company of the joint venture. Part of Hans-UlrichBrüggemann’s job is the onward transport of the rail vehiclesto Velim in the Czech Republic. The final inspection will take place here on a thirteen-kilometer-long test track. Thevehicles have electric and diesel engines, enabling them totravel at a speed of up 160 km/hour to reach the location of overhead cable damage.

Will the bridge hold up?For the unloading process at the Port of Hamburg, Brügge-mann had to extend the time the container ship was berthedin port and coordinate both the floating crane and the inlandwaterway vessel. So are organizational skills the most im-portant characteristic for a project logistics expert? “Yes,that’s important, but experience, flexibility, and nerves ofsteel are at least as important,” Brüggemann explains with a grin. But reality is proof of just how serious he is: customsin the Port of Hamburg refuses to approve an import permit;the locomotive cannot be loaded onto the barge but must instead be temporarily stored on the floating crane, where it is not considered to have been unloaded. Immediately,Brüggemann is on his cell phone and negotiates with the authorities. The floating crane and the inland waterway vessel make their way to a remote harbor basin to wait forthe permit. Brüggemann is unperturbed. Just yesterday, hehad had to clear up all the obstacles for the overland trans-


20 DACHSER magazine

Project logisticians areexperts in specializedtransport services. Beyond the transportservices per se, theyassist the customerand ensure that all ofthe communicationalong the entire service chain runs likeclockwork—from overland, sea, and airtransport to regulatoryauthorities, and finally,to the moment thegoods arrive at theirdestination.

Managing container ships is part and parcel of project logistics

port. Some of the overhead cables and posts have to be re-moved for the flat-bed trailer. Then the authorities unex-pectedly required that a static load test be conducted on oneof the en route bridges. This isn’t something you can seecoming when you are at your desk. And once they are enroute, goods like this Chinese locomotive cannot just beparked at the side of the road—you must react on the spot.

Looking ahead to the return trip“Project logistics requires experience, good relationships,and a cool head,” Hans-Ulrich Brüggemann summarizes.The position is not something for beginners. You need bothprofessional experience in a freight-forwarding companyand in working together with providers of special services.When transporting construction machinery, boilers for the steel industry, and completely knocked down (CKD) in-dustrial facilities, you can always count on the expertise of

your Dachser colleagues in the Road Logistics or Air & SeaLogistics business fields, but you generally also need exter-nal specialist service providers. Besides, you have to main-tain contact with regulatory authorities and know all thestatutory rules and regulations. But Hans-Ulrich Brügge-mann is never left to his own devices. When handling hiscomplex projects, he can always rely on his two associates in the Cologne office of Dachser Air & Sea Logistics.At the Port of Hamburg, customs doesn’t bestir itself untillate in the evening, but then the transport across the Elbe is good to go. In just three months, Brüggemann will be re-turning to the Port of Hamburg. “When all the tests havebeen concluded and the rail vehicles have their approvals,they will take the same route for the return trip to China,”Brüggemann explains. Soon the yellow locomotives withGerman know-how will be doing their job on Chinese high-speed tracks. D. Kunde

Experience, flexibility, and nerves of steel are at least as important as organizational skills

Hans-Ulrich Brüggemann, Headof Sea Freight Projects

at Dachser Air & Sea Logisticsin Cologne

DACHSER magazine 21


Dairy cows feel athome in the Allgäu

EXPERTISE: FOOD LOGISTICS

22 DACHSER magazine

PASTORAL HAPPINESSHappy cows, lush pastures, and tradition all contribute to the making of “white gold” for cheese specialty company Käserei Champignon in the Allgäu region of Germany. Together with Dachser, this company, which has such a rich tradition, has been writing a very special success story for more than half a century.

T heir names are Alma, Susi, Lisa, and Nina—the“girls” are looking quite content. They are grind -ing the lush green grass between their jaws with

great pleasure, the breath from their noses forming whiteclouds of mist. Happy cows! The landscape where the Allgäudairy industry operates is as idyllic as a scene straight out of a picture book. “Lush meadows where succulent grasses and herbs grow, along with high-quality feed, provide theoutstanding ingredients for the milk, giving it its incompa-rable flavor,” says dairy farmer Christian Weixler fromHöflings near Kempten. He is proud of his “girls” and looks forward to the arrival of the milk truck every morn -ing at his farm to pick up fresh milk.

The “white gold” from the Allgäu is destined for cheese company Käserei Champignon, headquartered in Heising, a district of Lauben, north of Kempten. The company hasbeen nurturing a close relationship with dairy farmers there for more than 100 years. Back then, cheese-makerJulius Hirschle had developed a Camembert with a flavorthat was entirely new for that time. A minor miracle for the palate is how the first food tasters described it. Togetherwith the cheese distributor Leopold Immler, Hirschle subsequently founded the “Heising Camembert industry.”Because the soft cheese from this area smelled so exquisite-ly like fresh mushrooms, they called it “ChampignonCamembert.” ‡

DACHSER magazine 23


The resulting close relationship with the region and the dairy farmers has remained intact at Käserei Champignonsince the early years. The company has been owned and operated by the Hofmeister family since 1961. “Today,around 1,300 dairy farmers supply about 400 million kilo-grams of milk annually to our production locations in Heising (Oberallgäu), Kammlach (Unterallgäu), Moosburgan der Isar (Upper Bavaria), and Pfeffenhausen (LowerBavaria),” explains Peter Hofmann, Head of Logistics andSales Administration at the Champignon-Hofmeister Group. About 1,000 employees, of whom 550 work at the Heising location, are currently generating revenues of about EUR500 million annually at the Champignon Hofmeister Group.The export share of the total revenue is roughly 40 percent.“We market and sell our brand specialties like Cambozola,St. Mang Limburger, Rougette Ofenkäse, Rougette Grill -käse, and even the Champignon Camembert, in 55 coun -tries around the world,” adds Hofmann. In other words,Champignon is everywhere. At the same time, this showshow important logistics is for company success.

From dry ice to the refrigerated trailerIt's worth taking a look back at history. In 1958, KäsereiChampignon held its first meetings with Thomas Dachserconcerning new options for alternative cheese transport.Rail was proving to be increasingly unsuitable for soft cheesestill ripening even after being packaged. Transport in a boxtruck, like the one used for meat transport, was offered as a solution. To keep the temperature-sensitive freight at the

Champignon-Hofmeister Group

Annual revenue:

over EUR 500 million

(as of December 31,

2013)

Workforce:

about 1,000

Locations:

Heising (Oberallgäu),

Kammlach (Unter all -

gäu), Moosburg an der

Isar (Upper Bavaria),

Pfeffen hausen (Lower

Bavaria), Freiberg

(Saxony)

Export:

Delivers to 55 coun-

tries around the world;

the export share

of the total revenue is

roughly 40 percent

www.champignon.de

PROFILE

best possible temperature en route from the production facility to the wholesaler’s distribution warehouse, dry icewas added there and then to keep the cheese cool. It didn’ttake much to go from this idea to active refrigeration. In almost 60 years of cooperation with Champignon,Dachser has helped to completely transform cheese logis -tics from shipping to taking over domestic warehouse logis-tics in its entirety. In 2008, the multi-user warehouse in the Allgäu Logistics Center in Memmingen went into operation.It covers a surface area of approx. 20,000 square meters, with 51 loading gates, and 43,000 pallet spaces in three temperature zones. Champignon products are warehousedhere at 0 to 2 degrees Celsius, ideal storage conditions forsensitive cheeses. “This is probably one of the biggest re-frigerators in the Allgäu,” asserts Thomas Henkel, GeneralManager of Dachser Memmingen.

Mixed cases for retailersEmployees are dressed warmly, hats and scarves indis -pensable accessories even at the height of summer. How -ever, no one ever gets cold here. There is always quite a bustle in the 14-meter-high halls. Based on the data that employees record on their mobile scanners, they handle the entry/removal of the products to and from the ware-house, order picking as well as loading the goods onto the refrig erated trailers on stand-by. Value-added services of all kinds are also available: for retail sales campaigns, special displays and mixed cases have to be put togetherbased on the order. “Together with Champignon, we work out the entire logis-tics process, from receiving at the point of production, towarehousing, packaging, and delivery of about 90 productsto retailers,” comments Thomas Henkel. “When it comes to temperature, pallets, securing the loads, and packag -ing, everything has to be done 100 percent perfectly for highly sensitive products like soft cheese,” adds Peter Hofmann, head of logistics at Champignon. That’s why delays or cancellations in the supply chain are an absolute “no go.” “We must also always take into account what the currentmarket requirements are,” adds Hofmann. By opening awarehouse in Memmingen, Champignon responded to the changes in the market and procurement landscape. “It means adapting flexibly to increasingly short-term requirements from retailers,” says Hofmann. “We used tojust deliver once or twice a week and that was enough. Now we have to make deliveries almost every day.” In theprocess, the minimum shelf life determines the shippingschedule and the inventory warehousing. The cheese com-pany knows that “once a piece of cheese is ready, the clockstarts ticking for every single one of them.”

Very big: soft cheesefrom the Allgäu


24 DACHSER magazine

Hot item:baked cheese

Cooperation among prosAccording to Hofmann, the food retail industry is veryvolatile with relatively short lead times and always new requirements for campaigns at the point of sale. “Usingsource-region consolidation, which helps us serve the central retail warehouses by direct single-tier truck routes,we can work out synergies for customers like Champig -non and offer quality at the highest level and at an afford -able price,” clarifies Thomas Henkel. “Dachser’s physical network and its IT expertise, combined with bundling, are very interesting to customers.” A process-oriented ITwith the appropriate EDI interfaces to the customer’s systems establishes the foundation for this, which, in turn,enables specific requirements to be met, such as single-SKU layer picking, including layer labels, incoming goods advice, online inventory management, or traceability. And these systems are in demand daily. Here is an exampleof a “normal” order process. Champignon and Dachsersometimes have only 48 hours lead time to make the deliv-ery. The retailer places the order, which is received atChampignon by 2:00 pm. The data are then immediatelysent to Dachser and order picking and loading are done on the following day. The goods are delivered to the retail-er’s central warehouse either overnight or the day after loading in the previously appointed time frame. Other shipments reach the retailers directly through the DachserFood Logistics network—or through the European FoodNetwork if it’s an international shipment. “Manufacturersand logistics specialists must be extremely flexible. Everyday is different,” explains Thomas Henkel. “Logistics man-

Logistics CenterAllgäu in Memmingen

Workforce:

about 800

Operating area:

150,000 square meters

Cargo handling

volume:

European Logistics:

2,750 t/day

Food Logistics:

2,500 t/day

INFORMATION

Under good condi-tions, the typical Allgäu cow can pro-duce over 110,000liters of milk through-out her lifetime, provided she is welltreated and given anidentity. Researchersfrom Newcastle University have foundthat cows that havebeen given names experience greater affection, are happier,and produce up to 258 liters more milkthan those cows thathave only been given a number and aretreated like just another member of the herd.(Source: n-tv)

The multi-user warehousein Memmingen

It all started with dry ice ...

... modern technology refrigerates the goods

agement that we have spent decades working together to develop and continuously expand makes our cooperationwith Champignon trustworthy and successful. That’s howwe can achieve our common goal of providing high-qualityproducts that are sure to reach the end customers.” This is,of course, not only in the interest of Peter Hofmann andThomas Henkel, but also Alma, Susi, Lisa, and Nina: theChampignon “girls” from the Allgäu. M. Schick

DACHSER magazine 25


L aunch on the Bosporus: Dachser Turkey Road beganits work on November 11. The new branch office in

Istanbul is connected to the European groupage networkthrough the Cargoplus organization and offers customersin Turkey all the benefits of the standardized Dachser ITsystems—especially Tracking & Tracing. Dachser TurkeyLojistik Hizmetleri A.S. is headed by Wolfgang Reinel,Managing Director European Logistics North Central Europe.Erkan Basak, Country Manager Dachser Turkey Road,along with his team, plans to improve service for existing

distribution and procurement customers in Turkey while also gradually building up their own import/exporttraffic services that are linked to Dachser’s Europeangroupage network. Tightly woven, intermodal logisticsservices also have great potential. To that end, Dachser has had a presence for a long time now in Istanbul andIzmir with its Air & Sea business field. “We want to tap into the growing consumer goods, automotive, and tex-tile/fashion industries in Turkey, all of which interest us a great deal, by offering integrated logistics solutions,” explains Wolfgang Reinel.

Dachser has started its own overland organization on the Bosporus.

Creating connections between East and West

Road Logistics

THE ISTANBUL CONNECTION

T he Dachser branch in Stockholm has relocated. In mid-November, Dachser Sweden moved its

branch from Jordbro to the Tumba commercial district in Loviseberg in the southwestern part of Stockholm.Thomas Wennborg, Branch Manager of Tumba at Dachser Sweden, and his team planned and performed the move with military precision. “The most importantthing was to avoid IT interruptions during this time because we can’t work without IT,” says Wennborg in describing the challenge. With the “overnight” move behind them, business continues apace as usual. Measur-ing 4,900 square meters, the new warehouse handles cargo through 13 docks.

Dachser Sweden relocates its

Stockholm branch

At home in the city of the Vikings

26 DACHSER magazine

Stockholm

MOVING DAY IS HERE

+++ A GLIMPSE OF THE FUTURE TODAY +++

Career Day was on the slate for the Dachser Head

Office on November 26 and 27. High school gra-

duates from Kempten, university students from

all parts of Germany, and teachers and professors

discussed the logistics jobs of the future. The focus

was on issues like changing labor markets, espe -

cially as a result of advances in digitalization and

the attendant challenges for employees’ skills.

During an exclusive fireside chat and in workshops

and discussion forums, participants had a look

at the future of interconnected companies and

economic cycles. “Career Day is meant to be an

opportunity for an exchange so that we can share

knowledge and promote dialogue between university students, professors, and representatives from business and in-

dustry,” says Bernhard Simon, CEO of Dachser. Career Day also provided a stage to honor the winners of the Logistics

Masters knowledge competition, which Dachser organizes together with the magazine, Verkehrsrundschau. +++

Statue of Pegasus that tops the opera house in Poznan

Experiencing logistics through dialogue

+++ NEW LOCATION IN POZNAN +++ Dachser

Poland expands its capacity in Poznan and inaugu-

rates a new warehouse. The branch is conve -

ni ently located in Gądki, near the S11 and A2 inter-

change, and has 1,000 square meters of office

space and roughly 7,500 square meters of ware-

house space. The high-bay warehouse is designed

for 7,500 pallet spaces. “The new warehouse is a further

milestone in Dachser Poland’s continued develop -

ment,” explains Grzegorz Lichocik, Managing Director

of Dachser European Logistics Poland. Its convenient

location and proximity to Germany make the new, ultra-

modern location important both for national markets

and for the European Dachser network as well. +++

DACHSER magazine 27

NETWORK

The warehouse in Poznan

Gate to the world: the Port of Durban

NETWORK: SOUTH AFRICA

28 DACHSER magazine

IN THE COUNTRY OFGOOD HOPE

South Africa is the leading location for investment on the continent of Africa. Dachser is helping to shape its future—withits longstanding experience, worldwide network, custom-tailored contract logistics, and expertise in providing training.

P ortia Dryden picks up the phone. A customer has a question about an ongoing logistics project withsolar modules. The 17-year-old connects him with

an expert from the Contract Logistics Department atDachser South Africa in Cape Town because she herself isnot qualified to respond to such detailed questions. “Notyet,” she says with a smile. “But soon, I’m sure. That’s why Iam in the process of completing a specialist training in logistics with one of the world’s leading logistics providers.”In recent months, she has already learned quite a lot about

handling customer queries, various computer applications,and business etiquette. Portia Dryden is one of 15 trainees, whom Dachser SouthAfrica trains each year in the basics of logistics. For good reason—after all, young, highly motivated specialists are in demand at Dachser. The country organization, which isheaded by Detlev Duve, set up a training program jointlywith the South African freight and transport industry backin 2012. “At an unemployment rate of more than 26 percent,it is part of our corporate strategy to train young people ‡

DACHSER magazine 29


and then hire them,” explains Duve. The problem is that professional training is practically non-existent in SouthAfrica. “Our educational system is focused on school anduniversity studies, so the backlog demand in this area ishuge.” The courses that Dachser has initiated take a year andcomprise content from the entire logistics service portfolio.This extends from air and sea freight to handling customsclearance to warehousing and distribution. Thus far, Duvehas been able to offer a job to 70 percent of his graduates.Sustainable development of young talent is only one of thechallenges that Dachser South Africa has been successfullyovercoming. Since 2011, the number of employees has risenfrom 120 to 220. At the same time, shipments and revenuehave been up by around twelve percent each year. DetlevDuve attributes this primarily to Dachser’s international net-work. “International companies are increasingly interestedin the services we provide,” the Country Manager explains.

Power outages are slowing growthFor many years, South Africa, as one of the BRICS nations,had stable, high growth rates of around four percent, how-ever, its growth has slowed recently to 1.5 percent (2014).According to analysts, however, the country would needgrowth rates of around seven percent in order to solve itscurrent problems, which include a high rate of unemploy-ment, a large number of people with HIV, high crime andpoverty rates as well as corruption. Added to these problemsare the frequent power outages, which represent an obstaclefor mid-size manufacturers. Many have long since lost con-fidence in the state-owned electricity utility Eskom.

At the same time, a growing middle class with solid pur-chasing power is making the country attractive for retailersand manufacturers of consumer goods. Experts from theprofessional services company PricewaterhouseCoopers expect that by 2016, as many as eleven million householdsin South Africa will have an annual income of around USD 10,000. “South Africa still offers some attractive opportunities formanufacturers of consumer goods and retailers,” says GerdBovensiepen, Head of the “Retail and Consumer” businessunit at PwC in Germany. “These days, doing business digi-tally is normal at the Cape of Good Hope,” Bovensiepen adds.eCommerce and mCommerce are on the upswing. Against this backdrop, Detlev Duve is aware of the impor-tance of taking advantage of the opportunities that the market’s development is providing and to actively continueto develop it together with customers. “Cost pressure onelectricity prices and wages is currently forcing many companies to increase their efficiency,” states Duve. “We see great growth potential in distribution and ware -housing as well as in contract logistics with its value-added services,” explains the Dachser Country Manager.

Growing along with solar powerThe solar industry is a good example of this growth. As a response to the acute electricity shortage, South Africa is expanding the renewable energy industry and improvingenergy efficiency. With around 2,500 hours of sun per year,South Africa has adequate sunlight to run power plants andplenty of space to build them. The Renewable Energy Inde-pendent Power Producers Programme (REIPPP) has beenworking on this since 2011. The World Bank has providedUSD 250 million for this project. Another USD 1.5 billioncomes from the Standard Bank Group, which is supportingthe program to enable a clean and safe supply of energy. This ambitious initiative intends to create around five mil-lion jobs by 2020. Dachser is already assisting solar energycompanies and their suppliers with transport and logis -tics services.

On the ease of doingbusiness index, wherethe World Bank rankscountries worldwideon how conducive the regulatory environ -ment is to businessoperation, South Africais number 32, only seven spots behind the Federal Republic of Germany. (Source: PwC)

The solar industry is booming

Thriving commercial center: Cape Town


30 DACHSER magazine

“Its longstanding experience with deliveries to the sub-Saharan region has made Dachser a reliable logistics partnerfor companies in South Africa,” says Detlev Duve. “Especial-ly when they are looking for safe routes, for example, to Tan-zania, Nigeria, Ghana, or Angola.” These and other Africancountries are forging ahead and purchasing technology tosupport their own economic progress and to establish pro-cessing industries in order to move them away from beingmere suppliers of raw materials. They want to process oil, gas, mining products, and agricultural products themselves.In order to be able to do this, they need South Africa with its comparatively good infrastructure, the logistics expertsbased there, and the connection to global networks. Dachser is also taking aim at yet another industry: the auto-mobile industry. According to the Ministry of Economic Affairs, the goal is to have 1.2 million automobiles comingoff the assembly line annually in South Africa by 2020. As acomparison, in 2014, there were only 566,000 units. In or-der to provide this important manufacturing sector with therequired transport services and a connection to its world-wide logistics network in all regions of South Africa, Dachseropened a branch office in Port Elizabeth in late 2012. In nearby Uitenhage, vehicles have been produced for VW since 1951. Around 300 kilometers to the northeast, Mercedes has been producing its C-Class automobiles inEast London since 2000.

Durban: a hub for all seasonsJohannesburg—another Dachser location—is also a hotspotfor the automobile industry. Nearby Rosyll, for example,

is home to assembly lines for the BMW 3 Series and variousRenault and Nissan models. The main hub for all types ofgoods is the container terminal in the City Deep area of Johannesburg. The dry dock is where around 60 percent of all freight arrives from the port of Durban. The area isconnected to a high-speed railway network, and the flow of goods is distributed by rail and road. Here, too, govern-ment investments are showing results. In order to eliminatebottlenecks in the supply of energy and water, the govern-ment has earmarked approximately EUR 288.5 billion to be provided up to 2030. Portia Dryden’s decision to undertake training in the logis-tics industry gives her a wide range of prospects. When hertraining in Cape Town has been concluded, she would liketo work for Dachser in Durban, which is one of Africa’slargest cargo handling ports. “I would enjoy being able to use my expertise in this bustling atmosphere,” the future logistics expert fantasizes. Then she might be able to expe-rience up close and personal how a new, huge container port is built on the site of the old airport. Its volume is sup-posed to exceed that of the container port in Hamburg,which is triple the size of the Durban port today. The state-owned operator Transnet, however, has been silent thus far on the question of who is supposed to pay for the con-struction, which is estimated at EUR 6 billion. But there is still time until the scheduled opening in 2021. Not least for plenty of “Good Hope.” K. Fink

Its longstanding experience with deliveries to the sub-Saharan region has made Dachser a reliable logistics partner for companies in South Africa

Detlev Duve, Country Manager

Dachser South Africa

Republic of South Africa

Capital: Pretoria

Size: 1,219,090

square kilometers

Population:

54.4 million residents*

Business languages:

English, Afrikaans

GDP:

USD 323.8 billion*

GDP per capita:

USD 5,902.40*

Imported products:

Oil, machinery, chemi-

cal products, electron-

ics, automobile parts

Exported products:

Raw materials, non-

ferrous metals, auto-

mobiles and automo-

bile parts, foodstuffs,

chemical products

Estimate for 2015 (source: GTAI)

IN BRIEF

Source: GTI

China (PR) 9.6

USA 7.1

Japan 5.4

Botswana 5.3

Namibia 5.0

Germany 5.0

India 4.2

Main customer countries(2014; percentages)

Other 58.7

Full of optimism: youngDachser employees in Durban Fika Mkize,Prince Koza, MinaZwana, and Pearl Nonthobeko

DACHSER magazine 31


BERNHARD SIMON SPEAKS WITH ...PROFESSOR

MICHAEL HENKEA world in flux being driven by data flows: Bernhard Simon speaks with economist Professor Michael Henke about supply chain management in the age of digitalization.

Mr. Simon, “Data is the oil of the future” has become a familiar catchphrase, along with the reminder that in the fourth Industrial Revolution everything will be turned upside down. This seems to imply bothpromise and a note of anxiety. Which side of the coinis closer to how you feel about this?Bernhard Simon: If everything will be turned upsidedown, I am glad that we at Dachser have recently moved into our “House of the Future,” which will certainly help usdeal with whatever comes our way. No, seriously, Big Data is becoming increasingly important, but that doesn’t meanthat the building blocks developed in the past are going to become completely irrelevant. Digitalization goes hand in hand with innovations that take existing systems in society and business that are complementary and developthem further—and sometimes even change them dras -tically. But the process is an evolutionary one because when digital innovations are implemented in the real world, it is always about being able to connect them to prevailing mar-ket conditions. I find that very exciting but not worrisome.It piques one’s curiosity to be able to accomplish things that were previously inconceivable.

Prof. Michael Henke: One point in the discussionabout Industry 4.0 often gets left by the wayside: a companycannot simply flip a switch and think that it can changeeverything radically. Rather, it is about optimizing pro -cesses through digitalization and new technologies. That is why, instead of talking about “revolution,” we tend insteadto talk about evolution at a revolutionary speed, about retrofitting, and about migration of cyber-physical systems.

Digitalization has been a factor for a long time. What is the difference compared to Industry 4.0 andLogistics 4.0? Prof. M. Henke: It is the cyber-physical systems—inother words the merging of the real and virtual world—thatsets them apart from conventional manufacturing pro -cesses assisted by computer data. Some of these were auto-mated even before the Industry 4.0 discussion ever began.What is now new is autonomy, where parts of productionand logistics are able to organize and manage themselves by way of data exchange.

Does everyone in the world understand “Industry 4.0”to mean the same thing?Prof. M. Henke: Like everything in life, terms and concepts are subject to trends. Right now, it is Industry 4.0, the Internet of Things, the Internet of Services, smart industries, and smart factories that are being hyped. In Germany, Industry 4.0 usually refers to the shop floor in thefactory—in the future, the smart factory—and its auto -nomization and self-organization. The Internet of Thingsand of Services goes beyond that into the process of inter-connecting professional or work-related areas with all otheraspects of life. As the interconnectedness of things and services is part of the DNA of logistics, so to speak, logistics is virtually predestined to make Industry 4.0 come alive. B. Simon: None of this is rocket science. (Inter-)connect-ing processes is primarily about getting your entrepreneur-ial idea to work and what control and management methodsyou have to utilize to get where you want to go. Industry 4.0is not an end in itself; first and foremost, digitalization has to serve the business model.

Regardless of how enthusiasticone is about theInternet and every -thing that intelligentservices can provide,data security remains a central challengeProfessor Michael Henke

BUSINESS LOUNGE: DACHSER FACE-TO-FACE

32 DACHSER magazine

On the road to the digitalization of their companies, today, many captains of industry get their inspirationfrom Silicon Valley. Have you been there yourself andwhat do the creative thinkers there know that the rest of the world doesn’t?B. Simon: I have never been there myself, but I don’t have the impression that they have reinvented the wheel in California. At least not in our industry. Sophisticated, value-driven logistics was largely developed in Europe,where demands and expectations are far more stringentthan in Silicon Valley.Prof. M. Henke: In order to have the right mindset, you really don’t have to travel to Silicon Valley. There areplenty of examples right on our doorstep. For instance, we are planning to organize bus tours from our research location in Dortmund to companies in the Ruhr region or in the neighboring region of Sauerland that are incrediblyinnovative. You can see impressive examples of Industry 4.0and the attendant progress of digitalization there in mid-size companies.

What does the “fourth Industrial Revolution” mean for Dachser? B. Simon: We set ourselves apart from the competitionvery early on by offering our customers value-oriented supply chains that enable a maximum level of control. Thisis important because in our customers’ everyday business,there are always cases where the flow of goods and the flow of information aren’t working at one hundred percent.This often makes the difference between success and failure. And this is just where the Dachser principle of integrated logistics services comes in. We create the basis for this by managing and controlling information one hundred percent of the time. In order to achieve this, wehave connected our IT systems to one single homogeneousdata landscape. This enables us to provide this type of control to our customers with one single interface.

This sounds like Big Data. Isn’t this a size too big for small and mid-sized companies?B. Simon: It always depends on what we want to achievetogether. In order to be able to implement connected busi-ness processes in a collaborative way, the classic transactionmodel should be replaced by the cooperative model. This,however, is where mid-sized companies are often cautiousbecause they are afraid of losing their independence. I can understand this to a certain extent. As Industry 4.0 increasingly becomes a reality, however, other control andmanagement methods will have to be used. The ability to cooperate will be a decisive one for the future prospects of a company.Prof. M. Henke: More cooperation will be required toensure that the IT-based connections in Industry 4.0 arefunctional along different stages of the value chain. In this context, we talk about “coopetition.” This artificial word, which unites the concepts of “cooperation” and “com-

petition” is not a new one. For cooperating competitors, it is all about expanding their options and scope for action. Today, circumstances on the market are increasingly volatile so that a company is sometimes an OEM and some-times a supplier. Role reversals like this require a high degree of willingness to collaborate. Mid-sized companies,with their less complex structures and shorter decision-making cycles, are really ideally suited because they can deliver the agility and flexibility that is needed in the age of digitalization. We must point them toward economic assessment models so that they are no longer intimidated by collaboration and integration in their interaction with logistics providers.

What is data security like in this setting? Prof. M. Henke: Regardless of how enthusiastic one isabout the Internet and everything that intelligent servicescan provide, data security remains a central challenge, especially in Germany, where even the Bundestag, the German Parliament, was hacked. At Fraunhofer, we are inthe process of defining the standards for a secure data space, the so-called Industrial Data Space. This will enableus to manage and control data exchange via secure “datacontainers” that can be compared to sealed freight con -tainers. ‡

The digital transformation has taken hold in

all areas of business and our personal lives

DACHSER magazine 33


B. Simon: At Dachser, we have created our own privatecloud that connects us everywhere within the company inorder to maintain secure processes all the time. Compre-hensive security and back-up reserves are extremely impor-tant to us. This system is intended to ensure that even in the worst worst-case scenario our technical resources willstill provide computing performance to maintain the sys-tems and protect data.

What do Industry 4.0 and Logistics 4.0 mean for thecorporate organization as such? Prof. M. Henke: Industry 4.0 and Logistics 4.0 cannot be implemented in traditional organization forms. March-ing off into battle as in ancient Rome, with Caesar at the head of a couple of generals and their legions no longerworks in complex, interconnected systems. In modern corporate organizations, it is no longer primarily about hierarchies but rather about clear process orientation, theability to change rapidly, agility, and adaptability. B. Simon: It’s not just about machines talking to each other. There are always people behind the machines. We talk about socio-technical systems in the cyber world. TheDachser organization rests largely on decentralized deci-sion-making structures with individual profit centers, whichoperate as individual entrepreneurs within the enterprise,operating within cybernetic loops. As a result, the function-ing of the profit center and the functioning of the entire organization are conditional on one other. In a cybernetic organization, the individual control states are always recog-nizable so that all players can recalibrate themselves at any given time.

What does this mean for the error rate of this kind oforganization?B. Simon: One of the advantages of a learning organi -zation is that mistakes can be made. They then become partof the learning curve and in all likelihood, they will not bemade again. The players get direct feedback from the net-work as to whether they have acted correctly or if they have to make adjustments. By now, we have quite a bit of experience in recognizing the condition of the overall system in real time and how we can exercise both central and decentralized control.

What skills do employees need for such an inter -connected management style?B. Simon: The dual training system creates the best possible prerequisites for this. In this system, the logistics experts-in-training must work their way through all themost important theoretical and practical areas. The abilityto look at things with a generalist’s eye is just as much a part of this as the very specific in-depth knowledge of content. Anyone who doesn’t see the forest for the trees has gone astray in the process of specialization. It is crucialto see both the forest and the trees. In an ideal situation, we find those brilliant people who are outstanding with the operational jobs and, at the same time, are able to helpshape the systems that are being developed.Prof. M. Henke: I am not a fan of young people choos-ing highly specialized study programs like Industry 4.0—these actually already exist. As trendy as it is at the moment,in a couple of years, Industry 4.0 is not going to be much ofan issue. What will certainly remain are the principles behind it: digitalization and virtualization as well as inter-connectedness and autonomization. We don’t need specialstudy programs for this; what we need is interdisciplinaryknowledge, thinking, and working. Looking outside thebox—our own box—is what leads us into the future,whether in our studies, in business and industry, or in our work environment.

Industry 4.0 is not an end in itself; first and foremost, digitalization has to serve thebusiness modelBernhard Simon

Professor Dr. Michael Henkeis director of the section Enterprise Logistics

at Fraunhofer IML and holds the chair of

Enterprise Logistics at the faculty of

Mechanical Engineering at TU Dortmund.

The focus of his research is in the areas of

procurement and supply management,

logistics and supply chain management,

supply chain risk management, and

financial supply chain management as well

as management of Industry 4.0.

Bernhard Simonsees logistics as the pacemaker in the

digitalization of industrial processes.

Before the concept of Industry 4.0 ever

became a buzzword, control of cyber-

physical systems along the supply chains

was already one of the industry’s acquired

skills. “A logistics expert from Europe

doesn’t have to travel to Silicon Valley to

achieve state-of-the-art digitalization,”

the Dachser CEO says.

PERSONAL FILE


34 DACHSER magazine

It wouldn’t be Christmas without candles and gnomes. During the Christmas season

and especially on St. Lucia’s Day on December 13th, windows in Sweden are

traditionally lit up with candles and stars. Candle and decoration manufacturer Affari

makes sure that these seasonal products are available and distributes hand-made

candles in Sweden and throughout Europe from a warehouse in Osby with Dachser’s

assistance. “During the Christmas season, we deliver 75% of Affari’s annual production

throughout Europe,” says Patrik Bellman, Branch Manager in Malmö at Dachser

Sweden. He is very aware of his responsibility for making children happy. According to

legend, the candles light the way for Tomtebisse, Tomte, and Nisse. Together with

Jultomte, the Swedish equivalent of Santa Claus, the three gnomes deliver Christmas

presents. As a thank you to the gnomes, a bowl of rice porridge with milk is placed

outside the door. A win-win situation for both children and gnomes.

WIN-WIN WITH CANDLESAND GNOMES

DACHSER magazine 35

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