panorama - m+r spedag group

panorama
The Magazine of the M+R Spedag Group
Special Edition
CELEBRATING
25 YEARS IN ASIA
CONTENTS
Editorial3
Higher Logistics Education in China
4
Our Guest Article focuses on China’s efforts
to train logistics specialists
Celebrating 25 Years in Asia
6
A brief look at the history of M+ R in Asia, from the humble beginnings
25 years ago until today
10 Questions for Giovanni Salce
8
One of the longest serving officers of M+ R Asia talks about
his life in Asia and the success of M+ R Asia
The M+R Asia Network
10
An Overview of the M+ R Asia Network
from Pakistan to Japan
Expanding to India
12
In September 2010, M+ R Spedag Group acquired Chennai-based
PL Shipping & Logistics Private Ltd.
All Good Things Come in Eights
14
Logistics connecting continents and cultures —
Experiences of a forwarding company in China
Logistics & Supply Chain Management in Asia
16
An introduction to the logistics activities offered by M+ R Asia
in China, Hong Kong and elsewhere
The Land-Bridge to Europe
18
A look at a greener alternative for the transportation
of goods from Asia to Europe
PANORAMA - THE MAGAZINE OF THE M+R SPEDAG GROUP
Special Edition (November 2010)
Publisher M+ R Spedag Group Ltd., Kriegackerstrasse 91, 4132 Muttenz / Switzerland
Editor Bernadette Jourdan Design + Layout Stephan Schneider Copyright M+ R Spedag Group Ltd.
Contact [email protected] Internet www.mrspedag.com
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Cover Hong Kong Skyscrapers
The Panorama you have in your hands is devoted to our 25th anniversary in Asia. A quarter of a century in the history of a company encourages me to pause for a moment. To
pay tribute to all that has been experienced and achieved, to reflect on some decisions
and to talk about changes, some wished for, some not. And certainly to go back to the
beginnings and to ask myself, what actually happened in November 1985? What have
I, have you, experienced in the past 25 years? For some of us, the time flew, others were
not yet born. Many of us think of ‘the good old days’, but others associate that time with
boredom, before mobile phones and the Internet. For some people it seems no time at
all, for the others, a whole lifetime. Such a list shows impressively how a word like time
is very subjective. We Swiss, proud of the best timepieces in the world, see time as an
exact measurement of a sequence of seconds, hours, days, adding up to years. But this
cannot be its real meaning, if it is experienced so individually. Aristoteles said that the
conception of time is inseparable with change. And only this definition of time can be
fair to our jubilee in Asia.
In 1985 one spoke of the 4 Tiger States, Hong Kong, Singapore, Taiwan and Korea,
who were stepping away from the shadow of Japan. Cheap labor and a strong regime,
interested in economic development to improve the population’s prosperity, attracted
western businesses. Among these were textile producers and major clients of our group
in Switzerland. True to the motto that a forwarder must be close to the merchandise,
my father decided to follow his customers. And what started with four offices in these
4 Tiger States has become a network of 35 offices and more than 1000 employees in
the past 25 years. And we have remained true to the motto right up to now. In 1987
we organized the first transports from China, in 1989 we followed the textile producers
to Thailand and Indonesia, and from 1994 onwards we have consistently built up our
own offices in China. In addition we have realized that our nearness to the goods is
no longer sufficient for our customers, that they want to follow the flow of their goods
by a virtual information system as well. Even before the Internet we had launched an
order-monitoring system and were amongst the first to do so, far ahead of many of our
competitors. And in September of this year we took the step into India, emphasizing our
commitment to East Asia. When we now review these 25 years, measuring in terms of
changes and not years, we can be proud of all we have achieved.
Recently I was asked about how our strategy of growth in Asia had looked: my reply
was honest and simple: there was none. We grew together with the market and only
strove to keep the quality of our service performance at a high level and not to miss
any wider trends. Our management has always identified itself with the strengths of
the East Asian cultures and we have been fortunate in being able to count on excellent
colleagues. They, above all, have made us what we are today. Here and now a heartfelt
‘thank you’ is due to them all. And the journey goes further...
Daniel Richner
PANORAMA
3
GUEST ARTICLE
HIGHER LOGISTICS EDUCATION IN CHINA
Due to the very dynamic economic development in the People’s Republic of China and the relocation of production
facilities from Western countries to the Far East, the importance of forwarding, transport and logistics in China has
grown tremendously. Many Swiss and German forwarding companies who followed their customers to China ask
themselves how and where they can recruit local staff and especially local management.
The term logistics is fairly new to the Chinese language.
It was first used in the late eighties of the last century.
Just like in Europe, the roots of logistics can be found in
the military.
(“Hou Qing Yun Shu”) historically describes the supply of the troops with weapons, ammunition, food etc. Thus it meant procurement and transport.
In the official Pinyin transcription the modern word for logistics reads
(“Wu Liu”). While Wu stands for freight or
goods, Liu can best be translated with process or flow. It
was only in the 1990s that Wu Liu was used in this sense,
i.e. when referring to Logistics..
As an academic discipline logistics in China appeared
about 20 years ago. The first logistics department of a Chinese university was set up in 1994 by Beijing Wuzi University. Until 2001 it remained the only university that offered
a major in logistics. Just like in Switzerland and Germany,
there is a differentiation between logistics management
and logistics engineering. The first two departments for
logistics engineering were founded in 2002 at Shanghai
Maritime University and Wuhan University of Technology.
Today there are 284 universities offering logistics management and 58 universities throughout China providing
classes in logistics engineering.
If we look at the current state of logistics education at
the undergraduate level (i.e. Bachelor, xueshi) at Chinese
universities, several observations can be made. First of
all the number of logistics programs and the number of
students studying logistics have been increasing tremendously over the last decade. Also, the general content of
the curricula and the quality of lecturers and professors
have been improving.
On the other hand, there is room for advancement.
This is particularly true with respect to the quality of education and training. To increase the quality of logistics education Chinese logistics professors believe that a standardized logistics curriculum would also be extremely helpful.
250
1990
1906
200
150
100
50
600
508
300
300
200
0
The University of
Science and
Technology
Beijing Wuzi
University
Beijing
Transportation
University
Beijing Normal
University
Beijing University
of Posts and
Telecommunication
Total enrollment of logistics students in Beijing (Source: Prof. Zhang Xufeng, Beijing Wuzi University)
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Beijing University
of Chemical
Technology
Beijing University
of Aeronautics
and Astronautics
Today there are six universities in Beijing offering logistics
programs. The largest logistics faculty is the one at Beijing Normal University with total 1,990 students, followed
by the School of Logistics at Beijing Wuzi University with
1,906. In 2008, altogether 5,870 students were enrolled in
logistics. In the same year 1,999 students received their
bachelor’s degree.
Many Chinese universities are trying to cooperate with
universities in the West. In view of the employability of
their students, they have a great interest in the concept of
cooperate or dual education at bachelor level. Beijing Wuzi
University is collaborating with Baden-Wuerttemberg Cooperative State University in Loerrach (DHBW) located in
the southwest of Germany, close to the Swiss border. Each
year a number of German students spend one semester at
Wuzi and more than 10 Chinese students come to Loerrach for a full year. To get a taste of the dual bachelor concept, the young Chinese also do an internship with logistics companies in Germany and Switzerland, among them
also M+R Spedag. In addition, there are regular exchanges
of professors and joint research projects.
Based on the experience with the dual program, the
School of Logistics at Beijing Wuzi University has set up
an experimental class similar to the cooperate concept at
DHBW Loerrach. In contrast to the German concept, there
is a contractual agreement between the university and
the logistics companies, whereas in the German system
the contract is signed by the student and the company.
Based on the analysis and experiences in foreign countries, there is still room to improve higher logistics education in China. First of all, it is imperative to increase public
awareness and understanding that logistics is an academic discipline. Also, there is a need to continue and increase
the logistics know-how and to strengthen the teaching capabilities of all staff. With respect to the content of the academic programs, the Chinese colleagues see the necessity
to work on a standardized curriculum and syllabus. Last
but not least, they believe that the relationship between
logistics engineering and logistics management should
be clarified. In addition, we believe that the management
part (finance, controlling, risk management, compliance
management etc.) should also be emphasized.
Prof. Dr. Armin F. Schwolgin
Baden-Wuerttemberg Cooperative State University Loerrach, Germany
Prof. Dr.
Armin F. Schwolgin
The Baden-Wuerttemberg Cooperative State University was
established in 1974. The curriculum combines practical training and university education, aiming to provide both practiceoriented and academic-based theoretical knowledge. Currently
23,500 students are enrolled in eleven sites in Baden-Wuerttemberg. More than 8.000 cooperating companies and institutions
are engaged in providing the practical part of the dual education.
Prof. Dr. Armin F. Schwolgin is also the head of the department of
Forwarding, Transport and Logistics, as part of the Business Management Degree at the Baden-Wuerttemberg Cooperative State
University in Loerrach
PANORAMA
5
HISTORY
CELEBRATING 25 YEARS IN ASIA
M+ R Spedag took the step towards Asia a quarter of a century ago. From humble beginnings as a sea freight specialist, “M+ R Forwarding” has become a powerful forwarding and logistics organization in Asia, covering all major
trade and transportation centers. M+ R Asia is today by far the largest division of the M+ R Spedag Group.
The M+R Spedag Group is recognized today both as a
leading firm in the European transport sector as well as
overseas. This was not always the case: At the end of the
70’s the company looked back over the first quarter-century of its history. It enjoyed a distinguished reputation within the European overland transport sector. With regard to
intercontinental transport, though, it was still in its initial
stages. First steps concentrated on groupage services to
the USA by sea and to Morocco by land — both transport
areas in which M+R Spedag is still a market leader today.
With the takeover of Spedag Spedition AG in the year
1979, the Group secured further know-how and market
shares regarding overseas transport — especially in the
areas of Africa and Latin America. The big upturn in the
overseas areas began in 1985 as the firm expanded into
Asia. At the beginning there were four offices in the socalled Tiger-States. They were small but they were situated
in strategically important locations. In the 80’s, the eco-
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nomic setting looked different in Asia than it does today.
Following the giant Japan, the so-called “4 Small Tigers”
(Hong Kong, Taiwan, Singapore, and Korea) were the driving power behind the Asiatic economic upturn.
At the beginning of 1986, Daniel Richner, son of the
group‘s founding member Hansruedi Richner, and today
the owner and CEO of the group, moved to Asia to contribute to the building of the Asian organization. First he
directed the skills of the firm in Singapore, then from 1989
onwards in Hong Kong. The goal was to build a network of
our own offices and strategic partners from Pakistan to Japan. In 1989 the organization expanded with four offices
in Thailand (Bangkok) and Indonesia (Jakarta, Bandung,
Surabaya, later followed by Semarang and Solo).
The foundation for success in China was already laid
in 1987. Then, as one of the official agents of Sinotrans,
with a license to issue their own T-B/L in China. In 1988
a new firm with the name “M+R Forwarding (China) Ltd.”
was founded. This was concerned — at the beginning out of the head office in Hong Kong — exclusively with transport in China. In 1994 the opening
of the representative office in Shanghai followed:
the first office in China. The next step was a presence in Tianjin. The corridor Xingang - Tianjin - Beijing is still one of the three big economic regions
in China. In 2001 the national management for
China was moved from Hong Kong to Shanghai. In
the same year new offices were opened in Beijing and
Ningbo and in the following year further offices in Xiamen and Qingdao
Beginning in 2003 a new project was started: The coveted and important A-License for China. The goal was
reached in the middle of 2004; as one of the first foreign
companies overall, M+R China received this license. Since
then M+R China may — instead of as before indirectly
through a locally licensed firm — serve the customers in
China directly with their own name.
The expansion of M+R Forwarding is moving along
with the rapid economic development in China. In 2004
a delegation office was opened in Shenzhen, the young
metropolis near the gates of Hong Kong. As the new airport was put into operation at the beginning of 2005 in
Guangzhou (Canton), M+R opened an office there, too.
With Hong Kong as the most important gateway for the
entire region of the Pearl River delta, these offices in Shenzhen and Guangzhou are administered from Hong Kong,
not Shanghai. Subsequent expansion in China saw the
opening of offices in Dalian, Nanjing, Suzhou, Lianyungang, Chongqing, Dongguan and Zhongshan.
But the expansion of
the group is not limited to China. In 2008, M+R Singapore
opened a dedicated airfreight office at Changi Airport. The
most recent step, and a large one at that, was the takeover of longtime partners PL Shipping and Logistics Ltd. in
India. That step brought an additional 12 offices and 330
staff into the group overnight.
Looking back, M+R Spedag can be more than proud
of what has been achieved. After a quarter of a century
the Asian organization exceeds the boldest expectations,
and with its 35 offices and over 1000 staff, represents a formidable contender in the field of transport and logistics,
connecting the world to Asia.
Stephan Schneider, Muttenz
Timeline: The History of M+R Asia
1985
Start with own offices in Singapore (HQ),
Hong Kong and Taipei with 28 staff
2002
Opening Xiamen and Qingdao
2005
Opening Nanjing, Suzhou and Lianyungang
1986
Relocation of HQ to Hong Kong
2006
Opening Dalian and Shenzhen
1987
Start in China with Agency Agreement with
Sinotrans and registration of MCL B/L
2007
Opening Chongqing
1989
Opening of office in Bangkok ,Thailand
2008
Opening Guangzhou, Dongguan and Zhongshan
1989
Investment in Indonesia with office in Jakarta, followed
by Bandung and Surabaya in 1994 and Solo in 2010
2010
September: Acquisition of PL Shipping & Logistics Pvt
Ltd. in India with 12 branches and 330 staff
1994
First office in China in Shanghai
2010
November: Celebrating the 25th Anniversary
with 35 offices and more than 1000 staff
2000
Opening Tianjin
2001
Relocation of China HQ to Shanghai,
opening Beijing and Ningbo
PANORAMA
7
INTERVIEW
10 QUESTIONS FOR GIOVANNI SALCE
Celebrating his 20th anniversary with M+ R Asia in 2011, Giovanni Salce is one of the longest serving officers of the
organization in Asia. His career took him from Hong Kong to Indonesia and finally to Thailand. Today, he is the
Regional Director in charge of South East Asia.
How or why did you end up in Asia?
In March of 1991 I was working in the UK for a company
called “Fastservice” in Peterborough, an agent of M+R Asia.
One day we received a visit from David Chan, the General
Manager of M+R Hong Kong. During our discussion he
asked me if I was interested in coming to work for M+R
Hong Kong. The company was facing a rather large backlog in their P&L department, and was looking for a young
professional to handle this situation. The catch was that
they needed someone to start immediately, which meant
that I had to decide on the spot. I said yes, drove back
home to Switzerland the next day, took the next available
Cathay Pacific flight out of Zurich, and found myself sitting
at my new desk at M+R Hong Kong the following Monday
morning sharp.
What was the greatest challenge for you when you moved to
Asia in 1991?
One major challenge certainly was learning how to eat
with chopsticks! But the greatest challenge was probably
to cope with a mega city like Hong Kong. I was 23 years
old at the time, and not used to the frantic pace of life
found in Hong Kong. The pressure to perform was there
from the first moment. Looking back, I believe that I did
cope quite well.
How did the business environment in Asia change over the
past 19 years?
I don’t think that the business environment changed
only in Asia. It has changed everywhere, all over the world.
Requirements from customers and agents/partners have
evolved, and we have to make sure that we are always one
step ahead. This is much more so the case today than it
was back in 1991.
What distinguishes M+ R Asia from other international forwarding and logistics companies in Asia?
We bring a personal attitude to what we are doing, always being there for our customers and partners. Our partners appreciate the fact that they can rely on their coun-
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terparts at M+R Asia, knowing that we are always there for
them, that if necessary they can reach us anytime, and that
we will do our utmost to find a solution for whatever the
problem might be. Even with all the high-tech communication tools and deep IT integration, the personal touch is
still an important part of the business today. Our success
in Asia over the past 25 years proves that we are flexible
where we have to be, yet also strongly believe in our philosophy and the proper conduct of our business.
What is the basis of the ongoing success of M+ R Asia?
A clear vision by the top management, supported by a
strong team who can translate this into real business and
through our services add true value for our customers and
partners. We have top people in every office of M+R Asia,
and it is they who form the base on which we build. The
fact that today there are still many people within our organization who were already there when I started out nearly
20 years ago tells me that even though we can look back
at tremendous growth over that time span, we have still
not lost touch.
Wherein do you see the biggest potential for the future development of M+ R Asia?
We have made big strides in building up our airfreight
and logistics capacities over the last 5 to 7 years, yet I think
there is still a lot of potential. Also very important is the
strengthening of synergies between our own companies
in Asia, especially with our new colleagues in India, but
also in East and South Africa, not to forget our home market. Whilst over the past 20 years the main focus of M+R
Asia has always been on outgoing shipments, we still have
to fully tackle the potential that is presented by import
traffic. In many countries throughout Asia, buying power
is steadily increasing, and parallel to this development, the
inbound flow of investment and consumer goods is growing. We have a very strong sales force in place across Asia,
and setting our minds to it, we can also become a major
player in the handling of imports from around the world
into Asia.
How is M+ R Asia perceived by local clients in Asia, and how by
partners and clients overseas?
M+R Asia offers a mix of international corporation and
local company. M+R Asia is a division of the Swiss-based
M+R Spedag Group, well-established in Asia for a quarter
of a century now. We have a strong management structure
with a mix of expatriates and local people, all of whom are
true professionals in forwarding and logistics. We have a
solid financial base, an excellent IT platform, and globally
implemented processes for risk management, liability issues and claims handling, all controlled on a corporate
level. For our international partners, these are important
aspects in choosing a partner to entrust with the handling
of their business. At the same time, it has always been an
important part of our philosophy that we also want to be
‘local’. It is essential for us, in each country where we operate with our own setup, to have a deeply-founded knowledge of the market, the local mentality and behavior in
conducting business, etc. Having the right mix of “international” and “local” does make M+R a well-perceived service
provider for local clients.
Where do you see M+ R Asia in 10 years from now?
We will build further on our core business and expand
these activities. Keeping our noses to the wind, we must
stay flexible and pro-active so that we can always be that
little bit faster than the others in reacting to market changes. We also want to further strengthen our Asia network
in key geographical areas as well as in sales/purchasing
development, IT and HR.
You were posted to Hong Kong, then to Indonesia, and for the
past 12 years you have been living in Thailand. Which location did you like best?
Each of them had its own appeal, each one in a different way. I will never forget Hong Kong, since it was
my first Asian working experience and it is also where I
met my wife. The hustle and bustle of Hong Kong is not
comparable to any other city I have been to. Indonesia is
a real eye-opener as to what Asia is all about. It is a huge
country with great diversity, very mystical at times. Also,
being in charge of an organization in a large country that
combines so many different cultures is and was a real challenge, yet very rewarding. The move to Thailand in 1999
came at exactly the right time for our young family. We
Giovanni Salce, 43 years old, is married and has 4 children. He started out his
professional career in 1984 as a trainee with M+ R Schaffhausen. After completing his training, he stayed on with M+ R for another year and then went
to work for companies in Geneva and the U.K. He rejoined M+ R in Hong Kong
in 1991, and has stayed in Asia ever since.
were made feel very welcome and still feel this way after
nearly 12 years here.
What is the most memorable event in all your years living and
working in Asia?
The most memorable event was also the most important event in my life: Meeting my wife Mona in 1991.
Having her support and understanding has always been
essential for me to do my work in the best possible manner. It is a good feeling to know that whenever things are
getting tough at the office, I can rely on her to keep things
under control at the home front.
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9
NETWORK
THE M+R ASIA NETWORK
Comprised of M+ R Spedag Group companies and strategic network partners, the M+ R Asia Network leaves
virtually no blank spot on the map all the way from Pakistan to Japan. The coverage extends well beyond the major
trade and production centers and also covers areas that are still considered to pose a challenge when it comes to
transportation and logistics.
HONG KONG
Company: M+R Forwarding (Hong Kong) Ltd.
Offices in
Kowloon (Asia Head Office)
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CHINA
Company:
Offices in
M+R Forwarding (China) Ltd.
Shanghai (China Head Office),
Beijing, Chongqing, Dalian,
Dongguan, Guangzhou,
Lianyungang, Nanjing, Ningbo,
Qingdao, Shenzhen, Suzhou,
Tianjin, Xiamen, Zhongshan
INDIA
Company:
Offices in
PL Shipping & Logistics Pvt Ltd.
Chennai (India Head Office)
Ahmedabad, Bangalore, Cochin,
Coimbatore, Delhi, Hyderabad,
Karur, Kolkata, Ludhiana, Mumbai,
Tirupur, Tuticorin
PAKISTAN
Company: DMK Logistics (Pvt) Ltd.
Offices in
Lahore (Pakistan Head Office),
Karachi
SRI LANKA
Company: MCS Logistics International (Pvt) Ltd.
Offices in
Colombo
BANGLADESH
Company: Time Freight System Ltd.
Offices in
Dhaka (Bangladesh Head Office),
Chittagong
THAILAND
Company: M+R Forwarding (Thailand) Co. Ltd.
Offices in
Bangkok (S.E. Asia Regional Head Office)
MYANMAR
Company: EFR Forwarding and
General Services Co. Ltd.
Offices in
Yangon
TAIWAN
Company: M+R Forwarding (Hong Kong) Ltd. Taiwan Branch
Offices in
Taipei
MALAYSIA
Company: Real Link Logistics Sdn Bhd
Offices in
Port Klang (Malaysia Head Office),
Kuantan, Pasir Gudang, Penang
SINGAPORE
Company: M+R Forwarding Pte Ltd
Offices in
Downton Singapore, Changi Airport
CAMBODIA
Company: LNL (Cambodia) Co. Ltd.
Offices in
Phnom Penh
INDONESIA
Company: PT M+R Forwarding Indonesia
Offices in
Jakarta (Indonesia Head Office),
Bandung, Semarang, Solo, Surabaya
VIETNAM
Company: Altus Logistics (Vietnam) Ltd.
Offices in
Ho Chi Minh City (Vietnam Head Office),
Hanoi
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PHILIPPINES
Company: Eagle Express Lines, Inc.
Offices in
Manila (Philippines Head Office),
Cavite, Cebu, Davao City,
Gen. Santos City, Pampanga,
Zamboanga City
KOREA
Company:
Offices in
Hae Young Global Logistics Inc.
Seoul (Korea Head Office),
Busan, Kyunggi-Do
JAPAN
Company:
Offices in
A.O.T. Japan Ltd.
Tokyo (Japan Head Office),
Nagoya, Osaka
PANORAMA
11
INDIA
EXPANDING TO INDIA
In September 2010, M+ R Spedag Group acquired Chennai-based PL Shipping & Logistics Private Limited. The expansion to India is an important step. With the integration of its former partner in India, M+ R Spedag Group is now
represented in Asia with 35 offices and over 1000 staff.
Land of contrasts: The tranquility of Jaipur‘s famous Waterpalace ...
PL Shipping was set up in 2001 as a joint venture between
the 145-year-old Peirce Leslie Group and PL Shipping‘s
managing director R. Ramkumar. From the onset, PL Shipping & Logistics was closely cooperating with M+R Spedag Group, being M+R‘s network partners in India. With the
takeover of PL Shipping & Logistics, M+R Spedag has expanded its presence by an additional 13 offices and 330
staff. Already having a tight network of service centers all
over China, the move to India has given the group a strong
presence in Asia‘s second largest nation and emerging industrial powerhouse. The company’s founder, R. Ramkumar, will continue to head PL Shipping & Logistics as its
Managing Director.
PL Shipping & Logistics, with its Pan-India presence, specializes in ocean, air and surface transportation of small,
large and heavy-lift cargoes, both imports and exports. Besides freight forwarding, the company also has dedicated
divisions for NVOCC and integrated freight services, as well
as ship agency and port representation.
Since its founding in 2001, PL Shipping & Logistics has
been closely co-operating with M+R Spedag Group, being
the official partner in India of the Asia Network of the M+R
Spedag Group. The existing linkup with M+R’s Asia-wide
IT platform and the fact that the company is familiar with
M+R’s operational structures will facilitate the full integration in the months ahead.
R. Ramkumar, Chennai
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...and the bustling street life of modern Bangalore
Factsheet: PL Shipping & Logistics Pvt Ltd.,
Founded:2001
Offices:q
Chennai (HQ), Ahmedabad, Bangalore,
Cochin, Coimbatore, Delhi, Hyderabad,
Karur, Kolkata, Ludhiana, Mumbai, Tirupur,
Tuticorin
Total Staff:
340
Divisions:
Freight Forwarding, NVOCC,
Ship Agency & Port Representation
Services:
Ocean Freight (FCL + LCL), Airfreight,
Integrated Services, Customs Brokerage (own
CHA licence), Project Logistics, Consolidation
services, Warehousing
Associations:
Registered MTO Operator
Member of FIATA, IATA, FFAI, AMTOI
Quality Control: ISO 9001:2000 certified
PANORAMA
13
CHINA
ALL GOOD THINGS COME IN EIGHTS
In reply to an invitation from the course of study Forwarding, Transport and Logistics at the University of Cooperative Education in Loerrach, our CEO gave a talk with the topic “Logistics connecting continents and cultures — Experiences of a forwarding company in China”.
For years, the Chinese economy has been expanding. The
economic boom is simultaneously driving the demand
for logistical services and logistical know-how. This was
recently emphasized impressively by Mr. Daniel Richner,
chief executive officer of the M+R Spedag Group, which
has its head office in Muttenz near Basel. With approximately 880 employees, the M+R Spedag Group counts as
one of the leading logistics providers in Switzerland.
The number eight appears repeatedly in the accomplishments of the China expert. Originally, eight in China stands for the eight trigrams in the book of changes
(I Ching). There are the eight immortals of Taoism, the
Urban development in Shanghai
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PANORAMA
eight symbols of Confucius and also the eight holy symbols of Buddhism. Thus the eight is generally seen as a
lucky number.
Eight misinterpretations… Following eight impressive examples regarding China’s economic development,
the speaker warned of eight misinterpretations. The guest
referred to one of the most widely spread views that China
is one land and one market, that China only manufactures
low-tech products, has the lowest production costs and
that they only copy western products and dump them
cheaply onto the market. Additionally, it is widely thought
in the western world that capital-intensive goods are still
manufactured in Europe. Some, however, would also see a
danger in the country’s rapid economic development. In
conclusion, Mr. Richner warned against hopes of making
a quick profit in the Chinese market. Various studies show
that only a few foreign companies are achieving attractive
profits in China. “Many companies had to learn this the
hard way, especially those who went to China very early
on”, said Richner.
Eight risks… Despite the overall positive assessment for the further development of China, Mr. Richner
of course also dealt with the risks involved. He included
the development of raw materials prices, questions of energy, water, and environmental effects; the topics of North
Korea and Taiwan, the policy of the national bank on the
valuation of the Chinese currency, questions regarding intellectual property protection, the transformation from an
agricultural- to industrial state in the Western region, and
last but not least the question of the constant criticism
from the West on the political system.
Eight success factors… Whoever wants to be successful in China would be well advised to make themselves
familiar with some peculiarities. Patience is an important
virtue. The Chinese measure in significantly longer periods of time; yet another reason, why it is so important
to first build up a network of influential connections. The
partner expects one-hundred percent attention. There
are no “quick wins”; the investment phase involves years.
Another thing of importance is respect towards superiors
and older people. To avoid disappointments one must be
clear that there is a different conception of law. “A contract
obligates, but it is not binding”, says Richner. This is also
valid in regard to payment conduct. An exact observance
of laws and regulations and good contact with authorities
is indispensable. This was explicitly experienced by M+R
in connection with the acquirement of the so-called A-License which authorizes the performance of all forwarding
services in China.
Eight challenges for a logistics provider in China... The
M+R Spedag Group grew very dynamically in China from
1992 to today. In this time period, the establishment of a
relatively dense network in the eastern and central regions
was accomplished. The sheer size of the country is a challenge by itself. The infrastructure of the country, like ports,
roads and rail grow fast, but the logistics systems still lag
behind the economic development. Distribution services
are only functioning on a short-range level. The varying
regulations from province to province and the many restrictions for foreign companies are particularly difficult
problems. The partially inefficient government-owned enterprises are major issues for future development strategies. Generally, the question is raised, how growth without
loss of quality should be accomplished.
BA Loerrach
M+R in Chinese
“Made in China” has become part of our everyday lives. More products than ever before bear this declaration of origin. Moreover, our interest in Chinese culture has never been more pronounced. In the following, and in appreciation of this trend, Panorama takes a closer look
at the logo of M+ R Forwarding (China) Ltd.
1
2
3
4
5
6
华隆瑞锋国际货运 上海 有限公司
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1
[Hua Long Rui Feng] -
the official Chinese name for
M+ R Forwarding (China) Ltd.
[Hua Long] - “China Prosperous”
[Rui Feng] - “Swiss Sharp”
2
[Guo Ji] - International
3
[Huo Yun] - Forwarding
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[Shang Hai] - Shanghai
物
流
贯
通 全
5
[You Xian] - Limited liability
6
[Gong Si] - Company
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球
[Wu Liu Guan Tong Quan Qiu] -
Logistics connecting continents
[Wu Liu] - Logistics
[Guan Tong] - Connecting
[Quan Qiu] - Worldwide
The phonetic notation, or phoneticization, using our Roman characters is based on “Pinyin”, the officially approved romanization system for Standard Mandarin, the official Chinese spoken language. The name is pronounced differently in other Chinese dialects, as for
example in Cantonese, which is generally spoken in Hong Kong. The actual sequence of characters used for the Chinese designation for
M+ R Forwarding (China) Ltd. – Hua Long Rui Fong – has no particular meaning. This is by no means unusual in China; frequently, greater
significance is attached to the meaning of the individual characters.
PANORAMA
15
LOGISTICS PROJECTS
LOGISTICS & SUPPLY CHAIN MANAGEMENT IN ASIA
In 2000 M+ R Asia first established Logistics & Supply Chain Management as an integral part of the organization.
Since then, the company consistently pursued its diversification strategy by exploring and providing new services
across the region and has built up a strong foothold in both domestic and transnational SCM solutions.
As a result of the fast growing economic and infrastructure development in Asia, a considerable number of warehouse options has emerged, each designed for a different
purpose and governed under different regulatory frameworks such as General, Bonded, Free Trade Zone (FTZ) and
Bonded Logistics Park (BLP) Warehouses. A prudent selection of the right option at the right location is a crucial
decision for achieving all the defined business targets set
for a certain commodity in terms of feasibility, reliability
and of course cost efficiency.
Following the approach of operating asset-light and maintaining a pool of selected long-term service subcontractors, M+R Asia has been able to keep the customer’s requirements at the center of the focus and is in the position
to provide unbiased consulting services instead of being
forced to achieve higher fill rates in self-owned facilities at
all costs.
Throughout the entire project cycle from the requirement
analysis to the final implementation, customers greatly
benefit from maintaining this flexibility and from M+R’s
ability to adjust to ever-changing environments and business requirements.
Along with the exploration of services, M+R Asia has heavily invested in the development and purchase of Logistics
IT solutions which support the business processes of the
customers, provide visibility and perfectly tie into M+R’s
service offers. Without exception, all the systems are webbased and connect the various supply chain partners involved - from origin point to destination. Different projects require different visibility and different modules such
as Track & Trace for Ocean Freight and Airfreight, Purchase
Order Management by line item for buyers with frequent
and complex order patterns, or stock balances by SKU for
cargoes being handled and stored in one of M+R Asia’s
warehouse facilities. Despite the fact that these systems
are deployed for different purposes, they all follow the
principle of reducing manual data input down to a minimum and the principle of managing the supply chain by
exception.
Holger Schaurig, Hong Kong
Logistics Reference Project: NEOPERL FAR EAST
NEOPERL offers innovative solutions for drinking water. The product shapes water streams, regulates
flow rates and protects water from contamination. The NEOPERL Group has a workforce of over 600
employees spread across 12 countries. As the global market leader, NEOPERL supplies leading faucet, plumbing, heating, filtration and appliance manufacturers (OEMs) and the wholesale and retail
trade around the world.
With a Distribution and Service Center in Shanghai, NEOPERL has been serving the entire domestic
Chinese market from Central China. In the light of NEOPERL’s strong customer focus and mentality to
fulfil orders within short lead- times, the company has decided to establish a second warehouse hub serving Hong Kong, South China
and parts of South East Asia. In the tender process M+ R elaborated several import scenarios for both Hong Kong and South China. After
thorough consultation and evaluation of customs and lead time requirements, NEOPERL decided in favor of Hong Kong. M+ R now has
been awarded the operation of the distribution center in Hong Kong as an extension to NEOPERL’s existing stock points covering a full
range of warehousing services for more than 1,700 different SKU’s . The hub predominantly acts as an additional stock. Goods are being
stored in both ambient and temperature controlled environments. Besides storage, the range of Value Added Services includes counting
& weighing of incoming cargoes, quality inspection, picking & packing and labeling.
The Hong Kong hub will result in an optimized decentralized distribution network clustering the Chinese market in geographic areas that
will be served from either of the two distribution centers. NEOPERL will achieve an improved service level to its customer base in the South
due to the significant reduction of the time-to-market. Despite the fact that the Hong Kong warehouse represents an additional cost
center within NEOPERL’s supply chain, transportation / distribution costs will be reduced to such an extent that they easily outweigh the
increase in inventory carrying cost and will after all result in cost savings.
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PANORAMA
Logistics Referenc Project: WALKERSHOP
The Walker Group was established in Hong Kong in 1990 as a
footwear wholesaler. In 1993, the company moved into footwear
retail and opened the very first WalkerShop. In 2000 they moved
into the PRC. Today, the group is represented in the Greater China
region through a network of some 790 retail outlets.
In 2009 M+ R Asia won the bid to design and implement a Central
Warehouse in South China, with the capacity to handle a product range of 60,000+ SKU’s. Upon receipt of cargoes at the warehouse, every single transaction is captured in real time through
handheld barcode scanners, which allows Walker to access their
inventory levels in M+ R’s virtual warehouse at any given time.
Based on replenishment orders from the China Regional Centers,
Walker pulls cargoes from the Central Distribution Center into
the different sales areas. By electronically sending shipping orders
into M+ R’s Warehouse Management System, M+ R’s operation
team on the ground gets notified and subsequently performs the
picking process.
M+ R has implemented a “goods to man” solution, in which forklifts pick entire pallets and drop them at one of five picking stations. Afterwards the forklift picks up the pallet with the remaining cargoes from the previous order line and arranges put-away
into the next location to be picked from. This repetitive process
means that the storage locations are ever rotating (dynamic storage), which allows Walker to maximize the utilization of given
space in the warehouse: Through the forklift supported picking
process, all rack levels can be picked from.
The aim of the project was to move away from an entirely decentralized distribution concept. In the past, the China Regional Centers independently ordered quantities from the factories based
on the sales forecast. Any defect of the products was hence only
identified upon receipt in the according Regional Center at destination, which caused costs for goods return. Moreover, in the
event of a stock out, the regional warehouse would not have the
ability to order from a centralized buffer stock and would eventually lose the sales opportunity as the article could not be replenished in time. By keeping stock levels centralized, WalkerShop
could substantially reduce the order time, increase the replenishment frequency and improve the forecast accuracy. If stock levels
build up, the CRC’s now have the ability to send overflow cargoes
and seasonal items back to the Central warehouse to free up storage space.
Beside the Warehouse Management System supported operations within the four walls of the warehouse, WalkerShop and
M+ R have created interfaces allowing Electronic Data Interchange (EDI) between the two supply chain partners and their
systems. Walker creates ASN’s as well as outbound Shipping Orders on its own ERP system and transmits those into M+ R’s WMS,
reducing manual data entry to a minimum.
PANORAMA
17
GREEN LOGISTICS
THE LAND-BRIDGE TO EUROPE
At the request of a client, M+R Asia recently conducted a study to compare conventional maritime transportation
with the intercontinental transport by land from China to Germany. The aim of the study was to explore whether
transportation using the overland route is a better alternative to maritime transport under the aspects of environmental protection
The client regularly imports several container shipments
of textiles from China to Germany. At present, the containers are shipped to Germany by all-water sea freight service.
Since the constantly growing number of container ships
contributes significantly to climate change and global
warming in general with their CO2 emission, the client
wants to find out whether an alternative transportation
route to Europe by rail presents a more environmentallyfriendly alternative.
On average, a container ship burns 200 tons of heavy
oil per day. This results in a CO2 emission of 634 tons daily.
Thus the annual emission of a ship is equal to the annual
CO2 emission of about 60,000 mid-class cars. According to
studies, shipping is responsible for about 4% of the global
CO2 emission. These large amounts are countered by arguments that container ships with thousands of containers
on deck still are one of the most energy-efficient means
of transportation, especially in comparison to air freight,
but also compared to rail transport. Currently, the largest
container ships can carry close to 15,000 TEUs, which corresponds to a freight train 89 km long.
In view of the large rise in oil prices over recent years,
rail transport between Asia and Europe has once again
become a topic of discussion, since transit times by land
can possibly be shorter than by sea. In contrast to the
Is the landbridge to Europe a viable alternative to all water service?
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PANORAMA
Transsibirian Railroad which opened nearly 100 years ago,
the “Eurasian Land-Bridge“ takes a more southerly route.
The project, the first direct rail connection between China
and Western Europe, gathered much attention. Railroad
companies from six countries, among them the Deutsche
Bahn, the German railroad company, started the project in
order to participate in the intercontinental flow of goods,
until then purely a domain of sea- and air freight companies. The first test run at the beginning of 2008 completed
the 10,000 km long route from Beijing to Hamburg in only
15 days. This route of transportation is certainly therefore
an interesting and affordable alternative to air freight.
Concerning the direct emission of greenhouse gases,
rail freight is definitely a “clean“ alternative to sea- and airfreight. However, when considering the power required
for the operation of the rail route, respectively the amount
of CO2 released when producing the power, things look
entirely different. China produces 80 percent of its power
with coal-fired power plants. Among other things they
emit large quantities of carbon dioxide (CO2), sulphur dioxide (SO2), and nitrogen monoxide (NO). As an added factor, China operates many railroad lines with diesel engines,
which in turn lead to direct CO2 emission. Even in Russia,
the country with the largest section of the route to Europe, 60 percent of the power is generated with coal- or
gas-operated power plants. All of this must be taken into
consideration when comparing facts concerning environmental acceptability.
Our client was shown that switching to transportation
by rail would lead to slightly shorter transit times, and also
to reduced direct CO2 emission. However, when consid-
ering the total emission of harmful substances, rail as an
alternative no longer shines quite as brightly where the
environmental impact is concerned. From an economic
aspect, sea freight today still is more cost- effective than
railroad transport.
Giovanni Salce, Bangkok
Skate to Kabul
Skateistan is Afghanistan’s first skateboarding school, with separate teaching days for male and female students, as well as classes
for the disabled. It is also one of very few recreational spaces for
girls and young women in Kabul.
The organization provides on-site loans of skateboarding equipment, shoes and safety gear. In Afghanistan, youth under 26 account for 70 percent of the country’s population, and so the most
worthwhile investment that can be made is to provide a space that
encourages tolerance, a civil society built on trust, and opportunities for education. Furthermore, the absolute novelty of the sport
means that there aren’t the social norms attached that prevent
girls from taking part in other sports. To give girls in Kabul a venue
to exercise, have fun and play together is one of the most important
reasons Skateistan was created. On October 29, 2009, the 1750m2
Skateistan park in Afghanistan officially opened, giving nearly 300
boys and girls in Kabul, aged 5 to 17, a secure environment and an
indoor skatepark to come to every week.
Skateistan is an Afghan NGO based in Kabul, with the backing of
an international network of groups in other countries supporting
the project. In Switzerland, a nation-wide campaign titled “Skate
to Kabul” is collecting second-hand skateboard equipment for the
skateboard school in Afghanistan, with M+ R Spedag subsequently
providing the logistics to move the equipment to Kabul.
M+ R Spedag Group, along with the Swiss Government, the Lotteriefonds of the Swiss canton of Basel Landschaft and the clothing
company Carhartt are all main sponsors of the support project
“Skate to Kabul”.
PANORAMA
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The M+R SPEDAG GROUP Asia Network
M+R Forwarding (China) Ltd., China
Shanghai
+86 21 6143 1000
Beijing
+86 10 8460 4600
Chongqing
+86 23 6378 4451
Dalian
+86 411 8259 0506
Dongguan
+86 769 8223 3695
Guangzhou
+86 20 3878 5978
Lianyungang
+86 518 8223 7172
Nanjing
+86 25 5237 7537
Ningbo
+86 574 2767 3999
Qingdao
+86 532 8097 6006
Shenzhen
+86 755 2590 1999
Suzhou
+86 512 6866 8793
Tianjin
+86 22 2311 7766
Xiamen
+86 592 560 0650
Zhongshan
+86 760 8891 8801
PT M+R Forwarding Indonesia, Indonesia
Jakarta
+62 21 7919 0640
Bandung
+62 22 200 5904
Semarang
+62 24 356 6625
Solo
+62-271-796 7754
Surabaya
+62 31 5015 626
PL Shipping & Logistics Ltd., India
Chennai
+91 44 3988 1515
Ahmedabad
+91 79 3000 2365
Bangalore
+91 80 3988 1515
Cochin
+91 484 307 7529
Coimbatore
+91 422 4202 4141
Delhi
+91 11 4052 0550
Hyderabad
+91 40 3988 1515
Karur
+91 94431 90720
Kolkata
+91 33 2289 2182
Ludhiana
+91 161 502 5371
Mumbai
+91 22 6681 8989
Tirupur
+91 421 248 0140
Tuticorin
+91 461 237 6001
M+R Forwarding Pte Ltd, Singapore
Singapore Headoffice
Changi Airport office
+65 6226 0628
+65 6543 1052
M+R Forwarding (Hong Kong) Ltd. , Taiwan Branch
Taipei
+886 2 2717 6268
M+R Forwarding (Thailand) Co. Ltd., Thailand
Bangkok
+66 2 249 9787
ѝ
ഭ
SINGAPORE
M+R Forwarding (Hong Kong) Ltd., Hong Kong
Regional Head Office
+852 2591 0677
Sea- & Air Freight Office
+852 2591 6050
INDONESIA