Militzer & Münch has been present on the Romanian logistics market for almost 20 years with its own country unit. The focus is on imports and exports within Europe, with customers mainly from the industrial goods and clothing sectors. Despite current uncertainty factors, the subsidiary not only proves to be stable, but it can even report growth.
At the Romanian subsidiary, all signs point to expansion. And this although market conditions are currently rather challenging. The ongoing war in neighboring Ukraine, the energy crisis, and high inflation are creating uncertainty on the market and hardly allow any forecasts.
Teamwork to defy challenges
According to Managing Director Valentin Dragu, the fact that Militzer & Münch Romania is nevertheless so well positioned on the market is mainly due to the high degree of motivation and hard work of his team. “The logistics industry is very dynamic; you have to act flexibly and to be able to react to current market changes. I am very proud to say that we accomplish this even in difficult phases. As a medium-sized transport service provider, we are holding our own very well against the competition, and we are therefore generally optimistic about the future,” he says.
New location, new employees: for the roughly 30 employees of Militzer & Münch Romania, a move was due last fall; the M&M Romania team relocated to new, modern premises in downtown Bucharest. “Our current team members are happy with the new offices and the location’s very good transport connections, but hopefully also new team members in the future will appreciate this, as we are currently looking for reinforcement”, says Valentin Dragu.
Upswing in road and sea transport
So far this year, the current geopolitical and economic situation has had hardly any impact on Militzer & Münch Romania’s activities and results. The country unit recorded a slight decline in project business, though, the volume of road transports, however, increased, and in the sea freight sector, an upswing is noticeable, too.
Nevertheless, Valentin Dragu plans to focus Militzer & Münch Romania on transports that have proven successful for his company: “We expect trade within Europe to intensify next year, which will open up many opportunities for us. Therefore, we are now working on further expanding our transport business and trade relations in this direction – and hopefully soon with the vigorous support of new team members!”
There is probably no other sector that imposes such high demands on the handling of goods as the pharmaceutical sector. Drugs and other medical products are particularly sensitive; even the smallest temperature fluctuation can impair their effectiveness and shelf life. The highest levels of quality, hygiene and safety are therefore crucial when handling pharmaceutical products – and logistics service providers who want to operate in the pharmaceutical sector have to prove that they meet the required EU standards as part of their GDP (Good Distribution Practices) certification.
Militzer & Münch Germany committed to achieving GDP certification in 2021 – with success: Last year, the country organization attained the certificate, with Charlotte Dürr, Group Project Manager Pharmaceuticals at Militzer & Münch, the leading force. We talked to her about the importance of the certification for the logistics provider, what opportunities it opens up, and about her personal passion for and further plans in the field of pharmaceutical logistics.
Eva-Charlotte Dürr
Ms. Dürr, the GDP certification is an important milestone for Militzer & Münch Germany. Would you please describe what this means for the national subsidiary and also for you personally?
First of all, one has to state that the certification process is very demanding and extensive. The hardest part was to create a basic framework of documentation and standards that covers all areas of the EU GDP directive. In addition, our carriers need to be thoroughly checked and assessed for their quality and compliance with the guidelines on their part.
With our quality system, we can ensure the responsible and competent handling of the sensitive goods – be it from Munich to Nairobi or from Berlin to Ulaanbaatar. This helps us now to continuously certify further locations of the group, as with the successful GDP certification of Militzer & Münch Germany, we have also aroused interest in other country units. As a result, we have a great working group of local GDP managers, sales experts, and quality managers. In Poland, we successfully passed the certification audit in March; in Georgia, we are currently planning the first audit.
Many country organizations already have experience in the various product categories and see great growth potential, especially in Southeastern Europe and Central Asia. The healthcare sector is of great importance for the entire Militzer & Münch Group, and developing this product opens up a whole range of new opportunities for us.
What exactly are the new opportunities for Militzer & Münch Germany that result from the certification?
Worldwide, the healthcare market is booming, and Germany is one of the market leaders. As a GDP-certified logistics service provider, we can now participate in this sector to a wholly different extent, open up new markets, and address a larger clientele.
The first sales initiatives we launched after successful certification showed quick results: We received many requests for quotations both for full truck loads by road, including numerous shipments to Central Asia and as far as Mongolia, and by sea and air to various destinations in Africa, the Middle East, and Southeast Asia, as well as for imports from America. Within the Militzer & Münch Group, M&M air sea cargo GmbH is responsible for GDP compliant transports by air and sea freight, as well as by rail.
Moreover, we can support the medical supply of many war and crisis areas while maintaining quality standards. There is also great interest in refrigerated transports by rail. Here, we benefit above all from an increased interest in reducing emissions.
Can you give us some examples of projects that Militzer & Münch Germany is already handling in the pharmaceutical sector?
At this time, we are handling transports of pharmaceuticals and medical equipment to Africa, Asia, and Europe, as well as shipments within Europe. In addition, we have imports of raw materials, accessories and medical cannabis. The high level of customer demand indicates that certification was exactly the right step to take. We are convinced that it will enable us to significantly expand our activities in the field of pharmaceutical logistics, and we are looking forward to intensifying our cooperation with other Militzer & Münch country units in cross-border transports of pharmaceuticals and medical devices.
With your dedication and commitment, you have been instrumental in driving the pharma project forward. Where does your enthusiasm for this area in particular come from?
After my qualification as a forwarding specialist and subsequent studies in International Transport Management and Marketing, I started at Militzer & Münch in 2018, initially as Sales Coordinator, but then took over product responsibility for Aviation Logistics. With the onset of the pandemic, I was looking for a new task and started to develop the Pharma Logistics division – a decision I have not regretted to this day! The products with their specific requirements and transport conditions are certainly a challenge, but the market is absolutely viable, and working in this field is a journey of discovery for me every day, due to the wide variety of products and customers. And by the way, I have probably always had a penchant for special products: in my bachelor thesis, I devised a strategic market analysis for the transport of horses by air.
What are your plans for the future?
We want to further expand our pharmaceutical logistics network so we can offer our customers worldwide the best possible service and products. Where this is not feasible via our own Militzer & Münch network, we cooperate with local partners who, of course, have to meet our requirements and also the GDP standards. The search for such partners, which is not easy in every country, is currently one of our most important tasks.
We want to further expand our pharmaceutical logistics network so we can offer our customers worldwide the best possible service and products. Where this is not feasible via our own Militzer & Münch network, we cooperate with local partners who, of course, have to meet our requirements and GDP standards as well. The search for such partners, which is not easy in every country, is currently one of our most important tasks.
We generally see great potential in pharmaceutical shipments to Central Asia, as well as to Southeastern Europe and Africa. In Central Asia and Southeastern Europe, we are already operating our own organization in almost every country. And in East and West Africa, for example, we have just successfully found reliable partners. For our activities in the region, I benefit from participating in the Militzer & Münch Talent Development Programme in 2022: As an international team, we had the opportunity to analyze new markets – and with Africa, the focus was on a market that is now emerging as one of our core markets for pharmaceutical transports.
In December 2020, M&M Militzer & Münch Malaysia was founded. You could say: at the worst possible time. But the challenges of the pandemic did not dissuade the country unit from its ambitious plans and goals. Gopal Krishnan helped to set up the company and fought relentlessly for its success right from the start. We talked to him about the difficult initial phase and the subsequent development of Militzer & Münch Malaysia, about current projects and plans, and his wishes for the future.
Mr. Krishnan, can you describe your organization in a few words?
Militzer & Münch Malaysia is small, but extremely customer-oriented and by now very successful. Although we specialize in projects in the oil and gas sector, we are basically the right partner for any kind of transport.
Due to corona, success was late in coming. How did you experience the start-up phase?
Everything turned out quite differently than we had imagined. The start of our national company fell at a time that you would never choose voluntarily. Normal procedures that are part and parcel of setting up a company, such as opening a bank account, turned out to be a major hurdle. Everything took much longer than planned and demanded lots of dedication and patience from us. That we were still unknown in the market additionally complicated the situation, of course. For many customers, it was simply not the right time to try out a new forwarder. It was only about half a year after the actual founding that we were able to start operations.
This difficult time, how did it shape Militzer & Münch Malaysia, how did it shape you?
Our difficult start has certainly made us who we are today. Even though it was a tour de force, we were able to benefit a lot from the experience. We worked in a very disciplined and determined way, consistently keeping our costs at the lowest possible level, and going to great lengths to win orders. Our perseverance ultimately paid off: we were able to expand our network one step at a time and achieved growth.
One thing that should definitely be emphasized positively here is the support we had from the Militzer & Münch management. There was always a willing ear and a lot of understanding for all our concerns. To us, this proved that we have a reliable partner at our side, even in difficult times.
How did matters develop for Militzer & Münch Malaysia after this very bumpy start?
After the country had almost come to a standstill due to corona, there was a strong upswing from 2022 on, both on the national and the international market. Economy flourished, investments were promoted also on the part of politics, and global demand increased. Thus, for instance, global demand for rubber grew, among other things for the production of rubber gloves. As natural rubber is one of Malaysia’s important natural resources, there was enormous demand on the export market.
Militzer & Münch Malaysia also registered significant growth at this time, we gained new customers, and were able to generate a very good result for 2022, among others, due to a significant order for international project transports in the oil and gas industry. The new year also started very well for us and we are confident that we will be able to continue expanding our business successfully in 2023.
What projects and plans are currently in the pipeline at Militzer & Münch Malaysia?
With some projects, it is too early to say, but what I can say is that we will continue to expand our customer relationships in the oil and gas sector. Our core competence is handling project shipments – we want to keep leveraging this strength and position ourselves as a specialist in the Malaysian market.
And what is your wish for the future of Militzer & Münch Malaysia?
Apart from these plans regarding our projects and orders, my personal goal is to establish Militzer & Münch Malaysia as a successful brand that is not only distinguished by high performance and reliability, but equally lives values such as loyalty, integrity, and respect. We want to be an attractive and reliable employer that promotes the careers of young employees and stands for team spirit. I believe that it is ultimately these qualities that make up the “DNA” of a company, leading to success and securing the company’s future in the long term.
Militzer & Münch Malaysia:
The corona pandemic initially thwarted the ambitious plans of the newly founded country unit M&M Militzer & Münch Malaysia, but the team showed perseverance and gained a strong position in the logistics market (see interview). The most important facts about Militzer & Münch Malaysia at a glance:
10 employees make up the Militzer & Münch Malaysia team around Managing Director Gopal Krishnan, who has been heading the country unit since its foundation in late 2020.
The oil and gas sector is the most important industry for Militzer & Münch Yet there are also customers from the furniture, food, high-tech and industrial goods sectors, as well as from the health care industry.
China is the most important trade partner, followed by Singapore, the USA, Japan and Taiwan.
At 70 percent, Militzer & Münch Malaysia handles most of its regular imports and exports by sea. The goods reaching Malaysia come from South Africa, Australia, Italy, and Germany.
International shipping companies call at three ports in Malaysia: at Port Kelang, Malaysia’s largest seaport southwest of Kuala Lumpur, and at the ports of Tanjung Pelepas and Pasir Gudang, both located in the south of the country near the border to Singapore.
Transit times for Militzer & Münch Malaysia shipments range from 6 days (India, Sri Lanka), and 25 to 31 days (Australia/New Zealand), to 42 to 46 days (Europe). Transpacific goods take more than 50 days to arrive at their destination.
Militzer & Münch Malaysia has a special relationship with Germany. The company is a member of the German-Malaysian Chamber of Commerce, and cooperates closely with M&M Germany on the local market to further intensify trade activities.
Where Militzer & Münch does not have its own local subsidiaries, Militzer & Münch Malaysia relies on a network of partners to serve its local customers, for example in Australia, Singapore, or South Africa.
M&M Militzer & Münch Serbia is now one of the few Serbian forwarders with AEO status (“Authorized Economic Operator”). It certifies that the Serbian Militzer & Münch subsidiary complies with high standards and offers numerous advantages in goods traffic and customs clearance.
Extensive audits are carried out as part of the AEO certification. Numerous verifications have to be provided, such as regarding the company’s balance sheet and solvency, compliance with customs regulations and international security standards, as well as risk management. Thus, the certification phase was highly labor- and time-intensive for Quality Manager Nadja Novitovic, who guided M&M Militzer & Münch Serbia through the six months process.
“As yet, there are not many transport companies in Serbia that have achieved AEO status. The fact that we are now among the few in the country to have successfully completed this certification makes us very happy, because it strengthens our trade relations and the trust of our customers and partners”, says Nadja Novitovic.
Faster and less complicated thanks to AEO
Once a company has been granted AEO status, it means, above all, that customs and transport processing of goods is quick and uncomplicated, because certified companies are considered to be particularly low-risk and reliable. Accordingly, their shipments are given preferential treatment, there are fewer goods inspections, and documentation requirements are lower. The reduced amount of administrative work speeds up processes in the supply chain, and companies can act more efficiently.
Strong customer relationships with the EU
The certification process is time-consuming, but the commitment has definitely paid off for M&M Militzer & Münch Serbia. AEO status is particularly beneficial in terms of business relations with the EU. “Most of our customers are located in EU countries, mostly from Germany. There, we benefit from reduced customs duties and taxes due to our AEO certification. We also gain faster access to support programs that facilitate the goods flow within the EU, as well as to the EU internal market and the European Customs Union,” says Nadja Novitovic. “Both our country unit and our customers profit from our Authorized Economic Operator status in many ways. It will be of great advantage to us as we continue expanding our activities.”
AEO status was introduced in the wake of the terrorist attacks of 11 September 2001 with the aim of making international supply chains more secure. Since 2008, EU-based companies have been able to apply for AEO status with their respective customs office. In Serbia, Authorized Economic Operator status – referred to here as OPS status (Serbian: “Ovlašćeni Privredni Subjekt”) – was introduced in 2014 to simplify and modernize customs procedures.
Since it was founded in 2018, Militzer & Münch Sri Lanka has seen positive development, while also facing major challenges again and again. The team looks to the future with confidence.
Located on the west coast, the port of Colombo is Sri Lanka’s biggest container port; it is considered one of the most important logistics hubs in the region. Almost 6.9 million TEUs were handled here in 2020. Militzer & Münch Sri Lanka has its headquarters in the direct vicinity of the port. Benefiting from this central location, the Militzer & Münch country unit has successfully established itself in Sri Lanka’s logistics market over the past years. Today, it is a member of the Sri Lanka Logistics & Freight Forwarders Association (SLFFA), the association of forwarders and logistics providers.
Good results despite difficult conditions
For the year 2022, the twelve-person team again records good results. This is not to be taken for granted: beside the Corona pandemic, most recently, the ongoing economic crisis and its political consequences also affected the activities of Militzer & Münch Sri Lanka. Fuel shortages, bottlenecks in the power supply, and skyrocketing transport costs burdened the country’s logistics sector; many factories were forced to close.
“Of course, we are glad we can look back on a good year in Sri Lanka despite such adverse circumstances,” says Dilum Stembo, Managing Director of M&M Sri Lanka. “We are aware, however, that there are still challenging times ahead. We are constantly adapting to the changing circumstances so we can continue providing stable services to our customers.”
Focus on export business
In response to tighter import restrictions, Militzer & Münch Sri Lanka changed its strategy and focused on the export business. The main export goods include tea, rubber, and coconut, as well as products of the apparel industry. By concentrating on these exports, Militzer & Münch Sri Lanka was able to minimize the impact of the dollar crisis on its own activities, as exporters pay in US dollars, and shipping companies invoice in US dollars, too.
In order to reduce power consumption, electricity cuts of several hours a day can occur in Sri Lanka. To avoid a standstill of day-to-day operations during such long supply interruptions, the country unit invested in solar cells for its offices to reduce its dependence on the power grid.
These are challenging times for the country’s economy, but of course equally so for local people. “We are deeply committed to helping here,” says Andreas Löwenstein, Regional Managing Director Asia / Far East at Militzer & Münch. “In view of the high inflation, we are accommodating our employees financially.” Dilum Stembo confirms: “Not only the company as a whole but also the staff had to overcome many obstacles. We took efforts to support our staff – also emotionally. I am convinced that it has helped them at least to some degree”
Given the current situation, the course taken has proved successful for Militzer & Münch Sri Lanka, and the country unit has been able to maintain its stability. Says Andreas Löwenstein: “We plan to increase our activities to and from New Zealand, Australia, and Southeast Asia, as well as to and from the USA and Canada. We are confident we will cope well with future challenges.”
The Militzer & Münch subsidiary in Tunisia was founded over 25 years ago. Today, about 100 employees work for M&M Militzer & Münch Tunisia. Their core business: road transports from and to France, Italy, and Germany.
Militzer & Münch Tunisia has its headquarters in the port city of Radès, just a few kilometers southeast of Tunis, the capital. Additional branches operate in the port cities of Sousse and Sfax, as well as at Tunis-Carthage International Airport. Air and sea transports are an integral part of the product portfolio, but the Tunisian country unit’s biggest demand is for road transports; with the customers mainly coming from the textile, automotive, raw materials, and manufacturing industries.
An expert for Tunisia’s logistics market
Saber Boussada has been Managing Director at Militzer & Münch Tunisia for almost three years; he is at home in the transport industry. He had previously held various positions at an international freight forwarding company for more than 15 years, and has been Managing Director for more than ten years now. During this time, Saber Boussada got to know the Tunisian market very well: “Tunisia is a small country, and there’s a lot of competition among logistics service providers. In our day-to-day work, we are repeatedly confronted with the intense competition in the market here, and it depends on our performance and our range of services whether we can hold our ground,” he says.
Under his leadership, the country unit has in fact been able to hold its ground very successfully so far: Militzer & Münch Tunisia has achieved a significant profit increase since he joined the company, and the team is very optimistic about the further development of Militzer & Münch Tunisia.
Passionate about logistics
“What unites all Militzer & Münch employees is the enthusiasm for fulfilling customer wishes and demands with tailor-made solutions. Delivering goods to their destinations across the widest range of distances and on international routes is our passion”, is how Saber Boussada sums it all up. “Militzer & Münch Tunisia has secured a strong position in this challenging market. I am proud of this commitment, and I am happy to be part of the Militzer & Münch family!”
Despite the fraught economic and geopolitical situation in 2022, the Militzer & Münch country in Turkey was able to close the year successfully – and the company has ambitious plans for the future.
In 2022, the Militzer & Münch team in Turkey demonstrated that difficult times also offer opportunities. The country unit had to cope with challenges such as the aftermath of the Corona pandemic, increased freight costs, and supply chain bottlenecks. Added to these were the negative development of the Turkish economy, which led to major trade imbalances, and the situation in Ukraine.
Yet the team took the right measures in time. “Thanks to our strong position in Turkey, it was easy for us to adapt to the requirements, thus turning disadvantages into opportunities,” says Ender Atat, Deputy Managing Director at Militzer & Münch Turkey. Alex Sandalcidis, Deputy Managing Director at Militzer & Münch Turkey, adds: “We defined new strategies and introduced new structures on different routes and with different transport modes so that we were able to still meet customer requirements
Militzer & Münch Turkey transports a variety of commodities, including textiles, automotive products, industrial goods, oil and gas equipment, and chemical products. Road haulage accounts for the largest percentage among the transport modes – but sea and air transports are also developing well. Thus, a few months ago, the team restructured the sea freight department in Istanbul in response to increasing requests from customers and partners. Combining carriers is becoming increasingly important, and the staff’s expertise in intermodal and multimodal solutions offers significant benefits to customers.
“Logistics is a people business, and that’s why we have started to invest more in people,” says Cem Ulusoy, Managing Director at Militzer & Münch Turkey. “Our plans for the future include personnel expansion, the reinforcement of our sales and marketing departments, more investment in overseas sales activities, and further steps to strengthen our role in intermodal and multimodal transports.
” Plans are also in place to further expand the project logistics segment and to cooperate even more intensively with the Militzer & Münch Group and overseas agents as well as with partners in those countries where Militzer & Münch is not represented.
The company will also continue investing in digitalization and, in 2023, launch a new IT-based system that will offer more transparency in planning future projects.
Whether capacities, energy prices or personnel costs: for the airfreight industry, the Corona pandemic was not without consequences. At present, it is still virtually impossible to make any long-term plans. In times of uncertainty, however, there are also some constants – like Frankfurt Airport, which has maintained its strong position as a major cargo hub in Central Europe for many companies. Including for Militzer & Münch.
M&M air sea cargo GmbH has an office directly at Cargo City South, Frankfurt Airport, where 15 employees work to serve customers; and the service goes far beyond standard freight: the team primarily handles dangerous goods shipments, valuable cargo and GDP (Good Distribution Practice) compliant transports for pharmaceuticals, which are subject to specific requirements, for instance with regard to refrigeration.
Santino Hormuth has been working in the logistics industry for 15 years and has been managing the branch of M&M air sea cargo GmbH at Frankfurt Airport for just over a year. Transports according to GDP guidelines have characterized his work from the very beginning, as immediately after he joined the company, certifications in the GDP area were already taking place. “That was rather challenging for me – after all, I was familiarizing myself with the internal structures, the work processes, and my colleagues at the same time,” he recounts. “Not least thanks to the excellent cooperation on the team, we passed the certifications successfully and have since been working on boosting GDP transports as a product in our portfolio and expanding our customer base in this area.”
Special, in many ways
In 2021, the air freight volume at Frankfurt Airport was around 2.3 million tons, the highest amount of cargo handled at any German airport. Europe-wide, Frankfurt Airport is one of the ten largest airports.
Santino Hormuth appreciates his workplace and is aware of its importance: “Frankfurt Airport is a magnet for companies, an important location for science and education, and one of the biggest workplaces in Germany. It is also the Lufthansa home base and the leading cargo hub in Europe. This gives the airport a very special position also for Militzer & Münch,” he explains. “Moreover, our location directly at the airport is definitely of competitive advantage for us: we are virtually in the middle of the action, and can act fast.”
Speed is the order of the day
Speed plays a crucial role in the handling of air freight projects. In most cases, orders are urgent and need to be handled efficiently and swiftly. In this respect, Militzer & Münch benefits from its decades of experience and presence on the market, as well as from well-practiced teams. This allows for short decision-making paths with a minimum of bureaucracy – and that way, even particularly urgent transports become routine tasks. Santino Hormuth’s team regularly handles just-in-time shipments for automotive suppliers, transports engines and other parts for the air freight industry, and was recently responsible for the transport of equipment for the World Cup in Qatar from Frankfurt to Doha.
Santino Hormuth’s goal for 2023 is to further increase Militzer & Münch’s freight volume at Frankfurt Airport, the number of key accounts, and of existing customers. To this end, among other things, there are plans to restructure the sales department.
“We are still facing tense times. But in my year so far with Militzer & Münch, I have experienced how informal and at the same time professional the cooperation is here at the Frankfurt site and across all branches. Therefore, I am sure that we will successfully master this phase.”
As the Christmas holidays are drawing near, we wish you joyful, restful days among family and friends.
We would like to take the occasion to express our thanks to you for the good cooperation in 2022.
For the challenges of the upcoming year, we wish you good luck, success, health and personal contentment.
Militzer & Münch further expanded its position on the Kazakhstan market in 2022; forwarding company M&M Kazakhstan as well as EMEX, the Militzer & Münch courier, express, and parcel (CEP) service, were able to achieve encouraging results this year, thanks to new projects and new customers.
The M&M Kazakhstan team successfully executed various projects in the solar sector this year, thus contributing to the positive development of the ME/CA (Middle East / Central Asia) region – although, due to sanctions, the logistic processes in the Eurasian Economic Union are becoming more complex.
“The current political situation also affects trade, and transport routes are changing”, says Nikolaus Kohler, Regional Managing Director Middle East / Central Asia, Business Development Switzerland, M&M Militzer & Münch International Holding AG. “We are pleased to see M&M Kazakhstan successfully mastering the challenges of the Kazakhstan market, and we are confident that the company will continue on its steady course in the future.”
A six-figure volume in CEP
The EMEX results are impressive, too: Spurred by the ongoing boom in e-commerce, the Militzer & Münch courier and express service in Kazakhstan was able to further expand its customer base this year, and now handles more than 100,000 parcels per month nationwide.
And EMEX is investing in its vehicle fleet: In response to the growing demand for parcel services, the number of courier vehicles at the twelve branch offices in the country has been more than doubled. Thus, almost 50 courier vehicles are now underway on the roads of Kazakhstan, branded with the logos of EMEX and partner FedEx.
“We owe our success not least to our strong team, whose commitment has made this vigorous development possible in the first place,” says Tatyana Vorobyeva, Managing Director of EMEX. “We want to continue on that path: Our goal is to handle 150,000 parcels a month in autumn.”
In view of the twofold good news, M&M Group Management Speaker Alexei Kovalenko and Nikolaus Kohler got an on-site impression by visiting the freight forwarder and the courier and express service at their headquarters in Almaty this summer. On this occasion, EMEX was able to welcome the guests in the recently redesigned reception area of the headquarters.
Says Nikolaus Kohler: “In both companies, all signs are pointing to growth. We are gratified by the consistently positive results, and wish both teams continued success in achieving their goals!”
Dushanbe. First prize for M&M Tajikistan: the team under Managing Director (MD) Aziz Sharipov won the official competition for best exporter of the year 2021 in the logistics segment. The competition is held every year by the Government’s Export Agency; the award ceremony for the country’s best exporting companies took place at the Hyatt Regency hotel in Dushanbe on November 28.
Proud of this honor is Aziz Sharipov: “It is a great reward for all the work the team has done this year, and it further strengthens the M&M brand name.” The picture shows the M&M Tajikistan team with MD Sharipov (third from left) with the trophy.
Militzer & Münch is stepping up activities in China – with more employees and new branches. Local sales are being strengthened, and services are being expanded, which offers more opportunities for customers.
After strong growth in China, Militzer & Münch is now adjusting its organization in the country: “We are internally splitting our activities into North and South China from now on”, explains Andreas Löwenstein, Regional Managing Director Asia / Far East. “At the helm of both, we have very experienced managers, to whom the North and South Chinese branches will report in the future.”
Regional Director for China South is Carl Gao, the former branch manager in Shanghai. Jeffery Guo, 45, took over as head of China North in October. He has been at home in the logistics industry for over 20 years, including more than ten years as branch manager with a renowned international logistics service provider. With his expertise, he will support the northern Chinese branches with immediate effect, and further expand business in the region.
A greater footprint in North China
“The new management appointment for North China is just one element in Militzer & Münch’s general growth strategy in the region,” says Elyar Sherkati, Managing Director of Militzer & Münch China. “This year, we are strengthening our presence also by taking on additional employees, for instance at our branch offices in Tianjin as well as in Qingdao, one of China’s most important logistics locations.” Moreover, the Qingdao team was recently able to move into new office premises, and in Zhengzhou and Changchun in the northeast, Militzer & Münch opened two new sales offices.
In Shenyang, also in northeastern China, the company recently began operating a new branch office. Branch manager Colon Sun, who has already been working in the international freight forwarding industry for several years and has a very good knowledge of the market in northeastern China in particular, is in charge of developing and running the new location.
“Shenyang is a major transportation hub in the north of the country. We are glad to be able to further expand our presence at this location and in North China in general, to win experienced specialists, and thus to offer high-quality logistics services to our customers,” says Andreas Löwenstein.
The network of locations is expanding
Another new branch office expands Militzer & Münch’s network of locations in Central China: in September, an office was opened in Wuhan, capital of the Central Chinese province of Hubei and an important transport hub in China for air, rail, road and sea transport. The aim: to offer customers the full range of transport and logistics services, and to boost local sales. Branch manager in Wuhan is Jacky Zhu, who previously worked as sales manager at Militzer & Münch China in Wuhan for almost five years, and is thus very familiar with the local market and customers. He still reports to Carl Gao as before.
With the two new branches in Shenyang and Wuhan, the Militzer & Münch China network now comprises a total of 13 locations: Beijing, Tianjin, Dalian, Qingdao, Shenyang, Urumqi, Shanghai, Ningbo, Wuhan, Chongqing, Shenzhen, as well as the two sales offices in Zhengzhou and Changchun.
“Strengthening our activities in China is part of our growth strategy,” says Andreas Löwenstein. “We look forward to further driving this positive development with the new offices and employees on board!”
‘New Markets’, ‘Industry 4.0 along the New Silk Road’, ‘New Risk Management’ – on October 10, online presentations on these diverse topics marked the end of the Talent Management Programme 2022, designed by TransInvest in cooperation with the Institute of Supply Chain Management at the University of St. Gallen.
In early summer, 21 young talents from various TransInvest companies had already convened in St. Gallen for the first teaching module of the in-service training course. In terms of topics, the three days focused on Strategy & Controlling, Supply Chain Resilience & Sustainability and Process Management. At the beginning of September, the participants met in Istanbul for the second, three-day module. In challenging, interactive teaching units, they gained in-depth insight into the areas of Leadership, Digitalization & Business Innovation, and Marketing & Sales, among others.
Alongside these tangible teaching contents, the Talent Management Programme also focuses on soft skills: thus, teamwork and the strengthening of the group spirit for example are decisive factors for living the TransInvest culture.
“In addition, the modules give the young talents the opportunity to expand their international network and experience the TransInvest culture first-hand by working closely with participants from other countries,” says Ralph Stadler, Head of Group Human Resources. “That way, our experienced experts and guest lecturers not only train our junior employees professionally, but also promote their personal development.”
A tried-and-tested, new support concept
Exclusive, science-based, practice-oriented: the Talent Management Programme was launched eleven years ago to provide precisely this kind of support for future managers from TransInvest ranks. The aim of the Talent Management Programme is not only to equip participants with logistics and management skills, but also to retain them in the company in the long run.
“Employee retention is extremely important for companies; it is a big challenge,” says Alexei Kovalenko, Chief Financial Officer, TransInvest and Militzer & Münch, and Speaker of M&M Group Management. “We are glad that we have been able to successfully meet this challenge with the Talent Management Programme for many years now. The young talents receive intensive training in all relevant areas and are offered the opportunity to develop individually – and we can fill top positions in the TransInvest Group with highly qualified and motivated junior staff from our own ranks. A win-win situation.”
In 2022, the Talent Management Programme met expectations in every respect – both on the part of the participants and those responsible around Ralph Stadler. With the impulses from the final teamwork presented, the participants are now creating a Personal Development Plan (PDP) with their superiors, a plan which will guide their development in the company over the next few years.
This year, Paata Kacharava celebrates a very special anniversary: 25 years ago in June, he started as Managing Director of M&M Militzer & Münch Georgia and has been driving the development of the country unit with heart and soul ever since. We talked about his time at Militzer & Münch so far, changes in the logistics industry, and the appeal the business holds for him.
Mr. Kacharava, first of all congratulations on 25 years with Militzer & Münch! That’s a long time; how would you describe it in retrospect?
In summary, I would say it was a very exciting and, in the beginning, also challenging time for me personally. When I joined Militzer & Münch Georgia in 1997, I was the first and only employee of the country unit. Today, our core team consists of six employees, who take care of all projects in the fields of road transport, air and sea freight, as well as of our courier and express services with our partners. The past three years in particular, with the global impact of the Corona pandemic and the political events in Ukraine, have had a major effect on the Georgian economy, and also put our business to the test.
What was your professional career like before you joined Militzer & Münch?
Before switching over to Militzer & Münch and the logistics industry, I had worked in Georgian government institutions for many years, holding various positions in the foreign trade sector; among others, I was responsible for the management of foreign trade relations.
What were the biggest changes you experienced in the subsequent 25 years at Militzer & Münch?
The trade lanes as we know them today and the possibilities they offer, did not exist at all at that time. When I started at Militzer & Münch Georgia, people were dreaming of a Euro-Asian transport corridor and the manifold opportunities it would create – in the course of my career, I was able to witness how this very dream became reality, step by step. Today, the Caucasus and Central Asia are important trading partners for European countries; transports via road, rail, sea, and air to these regions are part of the Militzer & Münch core business. And we are seeing that the demand for products from and connections to these regions continues to grow.
Which industries do your customers come from?
Currently, our most important customers come from the automotive industry, the retail sector, and the pharmaceutical industry. In addition, we work for many local manufacturers who wish to ship their products to the European market.
What is the attraction of the logistics industry for you?
It is clearly the people who work in this sector. Our employees drive our business forward every day with full commitment and know-how; they are the basis of our success. They have significantly contributed to the development we have been able to experience with Militzer & Münch Georgia in the past years, and I am very grateful to them for their commitment. I would also like to take this opportunity to express my sincere thanks to the Militzer & Münch management, whose support my team and I have always been able to count on in the past. Cooperating with all these people is a great pleasure for me, and I am looking forward to the tasks and projects still lying ahead of us.
Mr. Kacharava, thank you very much for taking the time to talk to us!
St. Gallen, October 27, 2022. On October 11th, 2022, the new country unit Militzer & Münch New Zealand Ltd. started operations. With the first branch office in Auckland City, the Militzer & Münch network grows into the Polynesian region.
Militzer & Münch has recently started to offer its customers in New Zealand high-quality services in the air and sea freight sector. Its focus is on the import and export of various industrial goods and agricultural products. The newly founded company is part of a growth strategy, in the course of which Militzer & Münch is developing promising markets for itself.
New Zealand with its prosperous economy fits perfectly into this strategy: Due to the favourable climate, the agricultural sector thrives all year round, and agricultural products such as dairy products, wool, or meat account for a large share of exports. New Zealand is the world’s largest exporter of dairy products, for example. The island nation is largely dependent on international trade; imports include almost every industrial good.
Growing together
Shakir Samsudeen, 38, will head the company based in Auckland City. He is an experienced freight forwarder and knows the industry very well. The new country unit will start with three employees. it is planned to be expanded soon, however.
“The new country unit will serve many different industries, both with import and export”, says Andreas Löwenstein, Regional Managing Director Asia / Far East at Militzer & Münch. “The industrial and logistics sector in New Zealand has grown strongly in recent years and we expect this trend to continue.”
Beijing, October 25, 2022. M&M China now has an official branch office in Wuhan (population 14 million), one of the most important transportation hubs of China in terms of air and rail. It is also a connection point to different cities and seaports through inland waterways and roads.
The Wuhan branch started operating on September 1, 2022, and offers the full range of M&M services. Jacky Zhu has been appointed branch manager. Having worked in sales for M&M China for five years in Wuhan, he has built a stable customer base and is familiar with the local market.
Dubai, October 13, 2022. It all began with project transports organized by the M&M Kazakhstan team, for which an M&M-owned foothold in Dubai was a good solution. Thus was created, 15 years ago, the M&M Dubai country unit. When today’s Managing Director Anil Manath was appointed in 2017, he took over a small team of six, today he leads a staff of 31.
In the five years of his leadership so far, M&M Dubai has made a great development. Says Anil Manath: “Our customer base has evolved over the years. Having started as a purely customs broking and freight forwarding company, we now offer warehousing and distribution, cross traffic services. In 2019, we launched our AOG and ship spares in transit division. A milestone was the launching of the ship chandling service in July 2022.”
Applause! Applause!
The anniversary will be celebrated today; Michael Albert, Chairman of the Board of Directors of M&M Militzer & Münch International Holding AG, Alexei Kovalenko, CFO and Speaker of Group Management and Regional Managing Director (region MECA) Nikolaus Kohler will attend. “Anil Manath and his management with Joan Aguilar and Mullassery Praful and the whole team have succeeded in forming a great team with a fantastic entrepreneurial spirit in just a few years – with a high level of personal commitment, knowledge and competence, calmness, and structure. I am proud to be able to support this great team as it continues to grow”, says Nikolaus Kohler.
St. Gallen, October 6, 2022. How do shippers cope with the fluctuating freight rates in logistics? The University of St. Gallen tackled this question with a diverse research consortium from the logistics industry. The result is a 132-page study that addresses challenges, practices, and instruments. Militzer & Münch participated in the study.
For several years now, Militzer & Münch has been a member of the Association of the Institute of Supply Chain Management at the University of St.Gallen. The institute regards itself as an international platform for the dialogue between science and practice in the field of Supply Chain Management. Holger Seehusen, Managing Director of M&M air sea cargo GmbH, regularly participates in various activities. For him, involvement in the study was an opportunity to demonstrate what practices shippers, forwarders and brokers can adopt to counteract volatile freight rates in logistics markets.
Volatile freight rates and sustainability
The study, titled “Managing Volatility in Logistics Markets”, examines freight rate volatility across ocean, road, rail, and air transport modes, and highlights management practices from the perspective of shippers and logistics service providers. It also provides a classification and analysis of indices and digital business models in the freight sector, thus making a significant contribution to a better understanding of the tools available on the market and their individual value propositions for shippers, forwarders and carriers. In addition to fluctuating freight rates, sustainability concerns are also becoming increasingly important. “I am convinced that in the near future, decision-makers or customers, respectively, will not care so much whether it costs x € per kilogram, but how high the carbon footprint is in the goods procurement process,” says Holger Seehusen.
Workshops and interviews
After the official start of the project in August 2021, workshops were held in the following three months; the final presentation took place in December 2021. Work then started on the study. Besides the University of St. Gallen and Militzer & Münch, other logistics service providers, shippers, IT providers, and a commercial law firm were involved.
In addition to the regular exchange within the consortium, 44 interviews were conducted with logistics experts between early September and the end of November, and used as source material for the compilation of the study.
“We defined relevant criteria to determine a suitable segmentation of logistics markets,” says Prof. Dr. Erik Hofmann from the University of St. Gallen. “Based on these criteria, e.g., geographic reach, mode of transport, and carrier, we examined four relevant logistics scenarios. Our goal was for the study to provide practitioners with a basis for implementing concrete solutions.”
Interested parties can access the study free of charge via the following link:
Participation in the study is only part of Militzer & Münch’s commitment to the Association of the Institute of Supply Chain Management at the University of St.Gallen. In order to get young people interested in the field of logistics and to draw their attention to Militzer & Münch as an employer, Holger Seehusen was a speaker at the Supply Chain Innovation Day initiated by the University of St. Gallen in Rorschach on Lake Constance last year. Militzer & Münch was also represented there with a small information booth. This year, Eva-Charlotte Dürr, Group Project Manager Pharmaceuticals, M&M Militzer & Münch International Holding AG, Switzerland, and Vignesh Pandi, Trade Lane Manager North America Airfreight, M&M air sea cargo GmbH, Germany, participated in the Supply Chain Innovation Day on September 27.
Ashgabat, September 6, 2022. First, a delegation was opened in Ashgabat in 1994, and then in 1997, M&M Militzer & Münch Turkmenistan Ltd. was founded: the Central Asian M&M company now looks back on 25 years of forwarding and logistics services and has gained a good reputation among customers and partners. The company is headed by Djeyhun Hummedov as managing director.
Tashkent, August 30, 2022. Uzbekistan is the sixth largest cotton producer in the world, and when Militzer & Münch Uzbekistan was founded 25 years ago, cotton fiber transport was the main segment, a highly demanding special segment, as the cargo is self-heating unless packed and monitored correctly.
The 25 employees of M&M Uzbekistan nowadays handle all sorts and modes of national and international transports, and recently added customs clearance to the portfolio, too.
M&M Uzbekistan also has many years of experience in importing machinery and equipment for the cotton industry and has become a specialist in project transportation.
How is the market today, we ask Managing Director Khurshid Kasimdzhanov: “Customers appreciate our long presence in the country and our professional key staff, who have been with us for many year.”
