Trade Lane Africa: “There is always a way”

In view of the impressive economic growth in some emerging markets south of the Maghreb, Militzer & Münch is expanding its activities on the African continent. We asked Irene Pinkrah, Business Development Manager Trade Lane Greater Africa, about the special aspects of working with Africa, the challenges she and the team have to overcome, and what she likes best about her job.

Ms. Pinkrah, what are your tasks as Business Development Manager for Trade Lane Africa?

My main task is to expand and maintain business relationships with existing partners in Africa and to identify new partners for potential collaboration. I also build and maintain business relationships in Germany together with our sales team and take care of customer acquisition. And I also define marketing strategies and develop and optimize the trade lane between Germany and Africa by analyzing, planning and implementing efficient transport and logistics solutions.

How is the Militzer & Münch business developing in Africa?

We are currently in the process of developing the Sub-Sahara segment and are very optimistic. Africa has experienced significant economic growth in recent years and offers considerable development potential in some sectors. Militzer & Münch has been active in Morocco, Tunisia and Algeria for many years, and is very successful in this field. We are therefore confident that we will also be successful in sub-Saharan Africa. Ghana, Kenya and Nigeria, for example, are very interesting for us.

We are currently working on establishing a partner network. Against this background, several Militzer & Münch country units, including Militzer & Münch Germany, joined the Airfreight Logistics Network for Africa (ALNA) some time ago, a strong network for airfreight to and from the African continent. With ALNA, we have access to a secure and reliable network of companies in many African countries.

In order to tap into the potential of the Ghanaian market for us, I will be attending the Supply Chain Business Forum and Exhibition in Ghana’s capital Accra this coming July. The trade fair will focus on current trends, challenges and opportunities in the supply chain sector. As Militzer & Münch is sponsoring the event, we also have the opportunity to present our products and services on site.

What are the main goods Militzer & Münch transports to and from Africa?

African countries import a variety of consumer goods, including electronics, vehicles, clothing and household appliances. The primary exports are raw materials as well as agricultural and pharmaceutical products.

What challenges have you experienced with transports to and from Africa?

Many parts of Africa have only insufficient transport infrastructure, both in terms of roads, railways and ports. This sometimes leads to bottlenecks, delays and increased transportation costs. In addition, different customs regulations, complicated documentation requirements and inefficient customs clearance procedures also complicate and delay transportation. Instability in some regions and cultural differences can also hinder transportation. But as long as we are prepared for these hurdles, there is always a way to overcome them. After all, challenging markets are our specialty.

What positions have you held at Militzer & Münch so far, and what do you like best about your work?

I have worked in operational positions in air and sea freight for over 20 years. Most recently, I worked in the export department of M&M air sea cargo GmbH in Frankfurt for 15 years. In 2022, I participated in our internal Talent Management Program, where one of our tasks was to identify promising new markets. We singled out Africa as one of the most interesting areas.

I really enjoy working for Militzer & Münch because the company is characterized by a family environment, motivated colleagues, openness and diversity. What I particularly like about my current position as Trade Lane Manager is that I can work independently. I can really make a difference here. The diverse challenges my job entails motivate me, too.

“I have to constantly reinvent myself”

Lauriane Boyer joined Militzer & Münch France eleven years ago. As Air & Sea Director for Militzer & Münch France, she is constantly tackling new challenges in the sea and air freight industry. We asked her how the company copes with the challenges, what opportunities are opening for the industry, and what makes Militzer & Münch a good employer in times such as these.

 

How is the sea freight business in France doing at the moment?

The French sea freight market cannot escape global problems. We too are seeing a decline in global volumes, particularly on the Asia-Europe trade lane, due to consumer restraint and inflation. I also expect the current attacks on cargo ships in the Red Sea to have a major impact on our industry in the coming weeks and months. We at Militzer & Münch however expect positive business development in the sea freight sector, albeit in a difficult business environment. Competition is tough, but this difficult environment also holds opportunities for our company.

 

What are the main goods Militzer & Münch France (Air & Sea)  transports?

The Militzer & Münch France teams mainly transport general cargo and dry freight, such as mechanical equipment, electrical goods, textiles, and various materials for local production. On a spot basis, we mainly transport pharmaceutical products, hazardous goods or dry foodstuffs. This is also where I see growth potential for the future.

Militzer & Münch France currently counts some 1,000 customers. Most of them are medium-sized companies, which allows us to spread our business risk. Our most important customers come from the humanitarian sector, from label and adhesive film production and from the freight forwarding industry.

 

What were the most important milestones for Militzer & Münch France (Air & Sea)?

For almost ten years, we at Militzer & Münch France have been pursuing an investment plan. Over the past few years, we have implemented a number of measures to strengthen our global organization as well as sales and marketing, to expand our team and, above all, to improve our results. We put a lot of effort into promoting the Air & Sea product internally so as to make sure everyone within the Militzer & Münch France organization is familiar with it and to convince our existing and potential customers to place their orders with us. We can be proud of this achievement, which will help us to continue growing in the future.

 

What plans does Militzer & Münch France have for the future?

In the context of Militzer & Münch France’s diversification strategy, we expect Air & Sea to become one of our main products in the coming years. This is why we are building our Air & Sea development plan around several themes. They include the development of intra-group partnerships between Militzer & Münch and TransInvest to strengthen our own network, as well as the acquisition of agents in countries where the Militzer & Münch Group is not yet active. We are also planning to develop pure Air & Sea consolidation products (Air & Sea LCL). The Southwest Europe & Maghreb region is to be promoted with combined solutions between the Maghreb and the rest of the world via France, and our sales activities in France are to be strengthened. All these measures will help us navigate through these challenging times.

 

Are there any important projects in the pipeline for Militzer & Münch France?

There will be numerous challenges for our company in the area of digitalization and data management. To give an example, we need to embrace artificial intelligence as an opportunity and a serious tool that will help us to improve and speed up our decision-making processes.

 

What is your career background and what are your tasks at Militzer & Münch?

I have 15 years of experience in our industry. I started my career as a customs agent at a renowned company in France that focused exclusively on air and sea transportation. I later became a forwarding agent and team leader there. The start of my career coincided with the global financial crisis of 2007-2008, and I quickly learned that I had to constantly adapt and reinvent myself in this profession.

In April 2024, I will celebrate my 11th anniversary at Militzer & Münch France, and I can say that I have never been bored. Today, as Air & Sea Director, I am responsible for the organization and development of our product. I work from our office in Pusignan, Lyon, and head my own team there. I regularly visit all our offices in France so that I am always where the action is. Militzer & Münch France Air & Sea employs 30 colleagues in eight offices. We operate from ten customs airports and six ports in France. I also regularly support our subsidiaries ACTE International and ITPL with Air & Sea issues.

 

What do you like about your job? What makes Militzer & Münch a good employer?

In our industry, we are all driven by passion. This motivates us in our daily work, which is all about solving problems and mastering unexpected situations. What I like best is that there are always surprises. Routine is just not my thing! I enjoy spending time with our teams. I truly value the trustful and transparent cooperation with committed managers. At Militzer & Münch, teamwork and flexibility are very important, and we cultivate a real pioneering and family spirit. We promote innovation, and decisions are made in a fast and direct manner.

Most of our competitors are paralyzed by their large and cumbersome organizations. With us, this is not the case. Militzer & Münch’s global structure is dynamic and offers lots of opportunities for career development and mobility. When I participated in our Talent Management Programme, I noticed that this attitude is shared by many within the Group. No matter which country we come from, we all have the same values. This makes Militzer & Münch a successful company – and a great employer.

 

 

“Employees are our greatest asset”

Hristo Marinov, 46, started at Militzer & Münch in Bulgaria in 1996. Today, he is Deputy CEO of M&M Militzer & Münch BG Co. Ltd. and knows the company and the Bulgarian logistics market like the back of his hand. In this interview, he tells us how he made it from courier to the top of the company, what distinguishes Militzer & Münch in Bulgaria, and how the company is preparing for the future.

  

Mr. Marinov, you have been with Militzer & Münch for 27 years. What was your start in the company like?

I joined Militzer & Münch in 1996, right after graduating from school. As a courier, I took documents from our warehouse to the customs office. At that time, they were at different locations. But I only had this job for five months, because then I did my one-year military service. After that, I went straight back to Militzer & Münch, and I’ve been happy to stay until today.

 

From then on, it was a steep career path for you. What were the most important stations?

Parallel to my re-entry at Militzer & Münch, I started studying at university. First, I did my bachelor’s degree in accounting, then my master’s degree in international economics. At the same time, I worked in the warehouse at Militzer & Münch. At that time, a large supermarket chain opened its first stores in Bulgaria, and we stored the entire non-food product range for them. In that project, I was more or less the team leader. So, I knew how logistics worked in practice – and that was not always the way it was taught in theory at university.

Later, I switched to our road department. It was divided into three segments at the time, and I became head of the groupage export department. Later, we split the road department by country rather than by service, and I was in charge of Central Europe with Germany and Scandinavia. Again a few years later, we decided to combine all the Road segments into a joint Road Transport Division. I took over responsibility for this division and became Deputy CEO.

 

What are your main tasks at the moment?

Today, among other things, I am responsible for many operational areas of our business, for example for our automotive customers. I also oversee the IT department here in Bulgaria and take care of our partner network – especially CargoLine. As an official partner of the LTL cooperation, we carry out groupage transports with all 72 companies in the network as well as the main hub in Germany.

Although we are a small partner in the network, we offer very high quality services. Thus, over the past few years, we were awarded the CargoLine Quality Award three times in a row for our excellent and reliable service. These are achievements of which our entire team is very proud and which spur us on to continue giving our best to our customers every day.

 

What’s the secret of Militzer & Münch Bulgaria’s success?

I think there are a number of factors that have a very positive impact. On the one hand, we are very well-established in terms of performance, and offer the entire range of logistics solutions from a single source: road and rail transports, contract logistics, as well as airfreight via our subsidiary M&M Air Cargo Service BG Co. Ltd. On the other hand, we have a very experienced and stable team, which, together with our air cargo company, counts about 150 employees. They are our company’s greatest asset. Many of them have been serving our customers for 15, 20 or more years. This testifies to our very good working atmosphere and to a management that genuinely cares about its employees. And last but not least, we are ready to break new ground, find innovative solutions and grow together with our customers.

 

What does that look like in concrete terms, can you give us an example?

In recent years, for instance, we have significantly expanded our portfolio in the area of 3PL logistics solutions in collaboration with a major automotive customer, and are increasingly offering value-added services. We acquired the tier 1 supplier from Germany with a large plant in Bulgaria as a customer two years ago. We operate an integrated bonded warehouse for imported goods from China for this company. We receive and store the goods, pick them, take care of customs management, and deliver them to their destination. The level of service and quality is extremely high, and the KPIs are constantly being developed. Which makes the project very demanding, but also very interesting. Because the know-how we acquire here we can also use in other projects.

 

What are Militzer & Münch Bulgaria’s plans for the future?

As I said, we want to further expand our value-added services. Having recently put a completely new cross-dock terminal into operation, we are planning to modernize our existing terminal in Sofia for this purpose. Our CEO Sacho Todorov is driving the project together with me. We are planning state-of-the-art equipment, including a narrow-aisle storage system, to make the most efficient use of the available space. We will probably start modernization work before the end of the year.

 

You have many tasks and carry a lot of responsibility. What do you do in your free time to compensate?

I naturally spend a lot of time with my family. My wife, who by the way I met at Militzer & Münch, our two boys and I do a lot of sports. Together, we go in for outdoor activities, such as mountain biking. I also discovered CrossFit for myself.

Workouts are constantly varied and incorporate weightlifting, gymnastics, running and more. It improves my strength, stamina, and mobility skills.

 

Thank you very much for the interview, Mr. Marinov!

“In the pharmaceutical sector, every day is a journey of discovery”

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
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.

 

 

Thank you very much für your time!

Seasons greetings

Merry Christmas and a Happy New Year!

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.

M&M Tajikistan: best of the year

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: growth in China

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!”

Highly motivated, ready for the future

‘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.

“Our team is the basis of our success”

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!

M&M Dubai – 15 years of constant growth

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.

Militzer & Münch Turkmenistan – 25 years of reliable service

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.

Militzer & Münch Uzbekistan – 25 years of textile knowhow

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.”

Our goals: effectiveness, conformity, and compliance

Group Quality Manager Maximilian Kaiser is responsible for the quality management at Militzer & Münch sites all over the world. In this interview, he talks about current projects, the quality audit process, and what fascinates him about working in logistics.

 

Well, hello Mr. Kaiser, could you briefly describe what your activities for Militzer & Münch look like? What are your tasks?
The purpose of Quality Management is to ensure that consistently products and services are provided that meet customer requirements and comply with applicable laws and regulations. To this end, as Group Quality Manager, I oversee a wide variety of projects and processes. Our team consists of more than 20 Quality Managers, one for each country unit, all of which are coordinated through the holding company here in St. Gallen.
Our goals can be summarized in three key words: effectiveness, conformity and compliance. This means that, with a clear customer focus, we purposefully implement, maintain and continuously improve a quality management system, or introduce one where it does not yet exist. We solve our customers’ logistics problems effectively, comply with international standards, and meet regulatory and legal requirements. The values guiding us here are loyalty, integrity and respect.

 

What are the current projects or developments that keep you busy in Quality Management?

We passed our surveillance audit for 2022 this May. Not a single deviation from the standard was found during the external audits carried out by auditing company LRQA. At the beginning of 2023, we will then already be proceeding to the ISO 9001:2015 recertification, for which the most extensive audits ever will be carried out: our entire process landscape needs to be compliant with the standards.

In addition, we are rolling out our quality management system at other country units. We are currently seeking ISO 9001:2015 certification for our country units in Sri Lanka, Bosnia and Herzegovina, Montenegro and Malaysia. A local quality manager is in charge of adapting the standards to the individual requirements of the companies and of ensuring compliance with them.
Closely linked to quality management is risk management, for which we are currently optimizing various processes throughout our country units. In cooperation with our Head of Group Controlling, I am also establishing an Environmental Management System in accordance with the international environmental management standard ISO 14001:2015. This will strengthen our ecological awareness and make it easier for our customers to take environmental factors into account in their transport operations. Our Quality, Risk and Environmental Management together will form an Integrated Management System, which we will launch in March 2023.

 

What is the procedure of a quality audit?

We select internal audits on the basis of what is known as the “risk-based approach”. With this risk-based approach, we decide on specific sites, taking into account time, success and risk factors. When were the sites last audited? How important is the site to the success of the company? By selecting which sites will the risk of quality loss be minimized? The local Quality Manager supports local management in the implementation, administration and improvement of the Quality Management System (QMS). At the same time, the team carries out audits at sites in other countries of the region. For example, a colleague from France goes to Morocco or vice versa – after all, no one should audit themselves.

Here at headquarters, we coordinate what is to be audited where and by whom. Depending on what exactly we want to check, the auditor examines various processes. Do they meet customer requirements? Are they compliant with ISO 9001:2015? The results then end up at my desk, and I analyze them in collaboration with the local Quality Manager.

 

Could you please briefly describe your professional background? Which functions did you go through at Militzer & Münch?

I majored in economics and business administration. My first point of contact with Militzer & Münch was my traineeship starting in June 2017. In Frankfurt, I was assigned to the airport, in Stockstadt, I became familiar with our road transport division, and finally, in St. Gallen, I got to know our holding company. From August 2018 to January 2022, I was Executive Assistant to the CEO and Executive Assistant to Group Management, respectively. Then, I was appointed Executive Assistant to the Board of Directors of TransInvest Holding AG. Since October 1, 2021, I have also been Group Quality Manager. In cooperation with the Institute of Supply Chain Management of the University of St. Gallen, Militzer & Münch organizes the Talent Management Program to promote our in-house prospective managers, and I am participating in this program this year. I am certified in the areas of project and environmental management, and I am also currently qualifying as a Chartered Financial Analyst.

 

What fascinates you about the logistics industry?

Our team consists of many generalists, who are also specialized. All forwarders need to be knowledgeable in a wide range of areas: They have to understand the market, know import and export flows, keep an eye on the infrastructure and the political climate of many countries. At the same time, they are specialists in their field – road transport, airfreight, sea freight or project logistics. Every day brings new challenges in an international context. The topics and tasks we deal with are always a new and exciting experience.

Future managers on a success course

How to stand out from the huge number of companies in order to attract highly qualified young people and keep them in the company for the long term? A challenge that the TransInvest Group, parent company of Militzer & Münch, meets with its Talent Management Programme.

 

The TransInvest Group has provided for the future: eleven years ago, in 2011, it launched the group-wide Talent Management Programme (TMP) to promote its own young talents. This year, 21 promising young talents are taking part in the exclusive junior staff development program, which TransInvest organizes in cooperation with the University of St. Gallen Institute of Supply Chain Management.

“We are proud to offer this training opportunity to our young talents and thus to be able to fill vacant top positions with junior managers from our own ranks”, says Alexei Kovalenko, Chief Financial Officer, TransInvest and Militzer & Münch, and speaker of the Militzer & Münch Group Management.

The majority of the participants, 13 of the hopefuls, come from different Militzer & Münch country units. In late April, during the first part of the in-service module series, they were able to get to know the Swiss headquarters in St. Gallen in addition to the campus. Alexei Kovalenko and Ralph Stadler, Head HR TransInvest Holding AG, welcomed the participants and presented the course of events. During the three-day module, the participants focused on Controlling, Supply Chain Resilience and Process Management. Christoph Hollenstein, Head of Group Controlling Militzer & Münch, gave exemplary insights into controlling at TransInvest. Guest lecturers from renowned companies and university chairs provided the corresponding scientific background and addressed current challenges such as the impact of the COVID-19 pandemic and delays in global supply chains.

“The discourse that emerges from the input of our junior staff and the multifaceted experience of external managers is a very effective way of meeting today’s shift in values with the right answers, and maintaining innovative strength and competitiveness,” says Alexei Kovalenko.

In addition to interactive group tasks, the shared evening activities promoted cohesion, and encouraged not only strategic and business-related discussions but also personal exchanges.

The participants will complete two further modules over the course of the year, partly online and partly on site in Istanbul, and conclude their training with a group presentation. After that, the young talents will support management in various country organizations in identifying interesting opportunities and expanding business locally.

CargoLine Quality Award 2021

The M&M organizations in Bulgaria and Latvia were honored with the CargoLine Quality Award 2021 for their excellent and reliable service in the CargoLine groupage network.

The picture shows, from left, Hristo Marinov, Deputy Manager M&M Bulgaria, Managing Director M&M Bulgaria Sacho Todorov, and Managing Director Cargomax Latvia, Dmitrijs Vorniku.

New Branch Manager in Urumqi

Dino Wang, 45, has been heading the Militzer & Münch branch office in Urumqi, China, since January 4, 2022. Well-connected and with more than 13 years of experience in the logistics industry, he is rising to the challenge of further developing the branch and strengthening communication with foreign partners. His previous employers include Kühne + Nagel, among others.

Gunaghua Nie, Dino Wang’s predecessor, is responsible for driving forward the sales activities in the region.

 

Bridge to Central Asia

Urumqi is located in the Xinjiang province in northwest China, which directly borders Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Pakistan, Afghanistan, and India. Since 1990, the Militzer & Münch subsidiary has been acting as a bridge to Central Asia and Europe from there, strengthening the region’s role as the most important connecting point between the Chinese market and its direct neighbors.

 

Five questions for Dino Wang

In this interview, Dino Wang reveals how he plans to develop the Urumqi site in the future and what he particularly likes about working in the logistics industry.

Mr. Wang, as you have been with the company for a short time, you are still looking at everything with a fresh eye. What do you particularly like about working at Militzer & Münch?

Dino Wang: I feel really honored to be able to work at Militzer & Münch. We have a relaxed working atmosphere, good communication with colleagues, and a vast, worldwide service network, which, in my opinion, provides excellent service to our customers.

What are your plans for the M&M branch in Urumqi in the near future?

Dino Wang: From all major cities in the world, Urumqi is the one farthest away from any sea.  Due to its unique geographical location, it is an important land bridge connecting China with Europe, the Central Asian countries and Russia.

We are planning to expand also the air and sea freight business in the future, to build up a sales team, and to rely on Militzer & Münch’s worldwide service network in order to provide customers with an even better service and to achieve higher earnings.

Which industries do your most important customers operate in?

Dino Wang: Xinjiang is a resource-rich region with large oil, natural gas, and mineral deposits. Cotton, pepper and grain are also cultivated. These are exactly the sectors that our customers focus on.

What does the “Belt and Road Initiative” mean for Militzer & Münch China?

Dino Wang: For us, the “Belt and Road Initiative” means that Militzer & Münch China gets access to more business opportunities, and that we are more involved in the economic and cultural exchange between China and the world.

To conclude, a more personal question: How long have you been working in the logistics industry, and what fascinates you about it?

Dino Wang: I have been in the logistics industry for over 13 years. It is one of the oldest industries ever in human history – initially goods were transported by muscle power in wagons and boats. Since then, the industry has evolved over thousands of years. Logistics professionals are like cells in the blood vessels of the human body, which transport blood to ensure the normal functioning of all bodily functions. I am proud to be part of the logistics industry.

“Flat hierarchies give us space to implement ideas”

Holger Seehusen is a member of the Militzer & Münch Group Management and Managing Director of the German M&M air sea cargo GmbH. Thanks to his 30 years of experience in the logistics industry, he is particularly familiar with the market in Asia. In the interview, he explains why the Militzer & Münch Group’s business has developed well in the past months, and why he considers it a privilege to work in the logistics industry.

Mr. Seehusen, you are responsible for the Militzer & Münch Air & Sea business. How have the two segments developed this year?

Holger Seehusen: Since 2018, based in Frankfurt, I have been responsible for the Air & Sea activities in Germany. As a member of the Militzer & Münch Group Management, I am also responsible for the product development of the Air & Sea sector worldwide. We drive the product development in our de-centrally organized group of companies taking a joint approach and banking on a corresponding implementation, which also means a certain amount of persuasion work needs to be done at the individual country units. Currently, we are working on various projects in these business segments. In particular, the focus here is on sustainability. I must say this is a very interesting task.

Last year, after the difficult COVID-19 months in spring, business development in the Air & Sea activities, but also in particular in Rail transports, was very satisfactory. This extremely positive development has continued in the current fiscal year. Thanks in part to the restructuring measures implemented in previous years, we were already well positioned at the start of the pandemic, and able to master the temporary uncertainty in the industry.

In recent years, we invested heavily in our Trade Lane Management for the USA, Asia and India regions, and opened a subsidiary in Malaysia, thus laying important groundwork for further growth. Yet despite the generally positive sentiment in the industry, I believe we must not allow ourselves to be blinded by the currently good results. Challenges such as digitalization, junior staff, promoting young talent, reducing CO₂ emissions in transport handling and the resulting shift in procurement markets are topics that we have on our agenda. The answers to these issues are indicative of the future of our industry.

What distinguishes Militzer & Münch from the competition?

Holger Seehusen: Militzer & Münch is a family-owned company, and we see ourselves as a medium-sized enterprise. To me, this means that we have high social responsibility towards our employees – probably more than is the case with other large companies. Flat hierarchies give us the leeway to implement ideas. Our colleagues learn early on to take responsibility themselves and to simply try things out. Success and failure depend on open communication and constructive feedback, all of which serve to support personal development in leadership.

Customer satisfaction is Militzer & Münch’s top priority. Where are you in terms of customer satisfaction at the moment?

Holger Seehusen: Before the pandemic, we did a survey among our customers – and at that time, satisfaction was high. In view of the shortage across all modes of transport, the current situation is, frankly speaking, somewhat different. In supply chain management, the general conditions throughout the industry are not satisfactory at this time. It is important to inform customers at an early stage if a transport cannot be carried out as planned. Our customers in the textile industry in particular sometimes have tight contracts with their customers, with conditions where every day really counts. We enter into dialog with the customer very early on, and try to offer alternative transport routes and solutions. Often, we cannot influence whether, for example, a container arrives later, and at a different destination port, than originally planned. The subsequent hinterland transport has then to be rescheduled at short notice.

At some airport warehouses, there is a backlog of several thousand tons! Truckers sometimes wait 48 hours before they can load their freight. In the meantime, some trucking companies have stopped accepting orders that involve picking up goods at airports. In some cases, the shipments may have arrived on time, but it takes long to locate them in the crammed warehouses of airlines and handling agents.

In addition to transportation bottlenecks, we are also facing challenges in finding skilled personnel. Since the September 11 attacks, very strict rules have been in place for personnel at airports – and this also applies for the commercial staff at the transshipment warehouse. Anyone who wants to work there needs a background check as required by the Aviation Security Act.

Have there been any new products in the Air & Sea business in recent months?

Holger Seehusen: We have developed a relatively new product together with our Greater China Trade Lane Management in Frankfurt and our country unit in China: from China by truck via Kazakhstan to Europe, among other things to deal with the shortage of cargo space on other modes of transport. We can draw on our expertise and benefit from having our own country units in Central Asia here. We have been offering this transport alternative to our customers with growing success since the end of 2020.Another exciting project is in the planning stage, namely an air – road service between China and Europe. From Shanghai, goods are to be transported by air to the Kazakh city of Almaty, and from there on to Europe by truck. As a freight forwarder with particular expertise in niche markets, we are experienced in such alternative transport models. In view of high freight rates and a shortage of capacity for sea transport, this product is certainly an attractive alternative for our customers.

As a matter of fact, we can claim to have recognized and understood the potential of rail transport between Asia and Europe at an early stage. The new Silk Road still holds a lot of potential for the Militzer & Münch Group. Which is why, some time ago, we incorporated the Rail segment into M&M air sea cargo GmbH; a team of four coordinates all our rail transports from Düsseldorf.

From the Düsseldorf office, we have also further expanded our project logistics by sea segment. In Hamburg, we would like to continue growing in air freight, especially in AOG together with our colleagues in China. Moreover, the Militzer & Münch Group is striving for GDP certification, the certificate of Good Distribution Practice, so we can expand our service portfolio for pharmaceutical companies.

For some time now, container shortages and transport bottlenecks have been affecting the industry, and Militzer & Münch is feeling the effects, too. Have there been any shifts in transport modes?

Holger Seehusen: Oh, absolutely. To give an example, we had to fly 40 tons of steel from Europe to Mexico – a shipment that had originally been planned as ocean freight. Our great advantage is that we cover all modes of transport and can quickly offer alternative solutions. One thing applies here, however: we need to keep an eye on the liquidity of our customers and partners, who in turn depend on their own customers to pay on time. Some shipments were planned well in advance, but freight rates skyrocketed, and that’s not easy for every customer to shoulder. We always have to be beware of financial risks.

You’ve been active in the logistics sector for a long time. What fascinates you about the industry?

Holger Seehusen: I have been at home in the industry since 1991. Before I joined the Militzer & Münch Group in 2018, I had been with Rhenus Logistics for over 17 years in various areas of responsibility and working in different regions. This included Germany as well as interesting assignments in CIS countries, but especially in Asia and then for many years in Southeast Asia, before I decided to go back to Germany in 2016. After returning, I realized after a while that it was just not my “home” anymore, and that I wanted to try something new. Despite my long years in this industry, I have a lot of fun and am still learning every day. Frankly, I feel it’s a privilege to still have that fun and that daily challenge – that’s what drives me. I think I can transfer that enthusiasm to my colleagues with whom I work directly. At least that’s what I hope, but my professional environment is a better judge of that.

What advice would you give to young people who want to pursue a career in the logistics industry?

Holger Seehusen: The industry is very diverse and offers great development opportunities. What is particularly appealing is the internationality, which often gives us a different perspective on things. If you’re curious, you can make good use of the opportunities this industry offers – and that’s what I hope to convey every day with my management approach.

Our challenge as an industry is to improve the image and the multifaceted opportunities of the profession. For example, as part of our cooperation with the University of St. Gallen (HSG), we sponsor the annual Supply Chain Innovation Day and, in September 2021, were part of the panel. In my view, this is exactly the right approach to being visible as a company and getting more young people interested in logistics.

“Anyone who is content with the status quo will quickly be left behind”

Andreas Löwenstein has 28 years of experience in logistics. He has been working for Militzer & Münch since December 2019 – and in the position of Regional Managing Director Asia / Far East since April 2020. He studied sinology and has an affinity for Asia and China in particular. In this interview, he tells us what fascinates him about Asia, and what plans he has for Militzer & Münch in the eastern part of the region.

Mr. Löwenstein, you have almost three decades of experience in the logistics industry. What motivated you to become a logistics specialist?

Andreas Löwenstein: I studied sinology – Chinese studies – and during that time I spent two and a half years in China. Other countries and cultures, people and markets have always fascinated me – which makes the logistics industry a perfect fit for me. It also gives me the opportunity to travel a lot and use my language skills. In the course of my career, I have lived in China, Japan, Singapore, Thailand and the U.S.  – all in all, I spent 31 years in these countries.

Have you previously worked in industries other than logistics?

Andreas Löwenstein: Before that, I worked in the tourism industry. Incidentally, these industries have a lot in common. Tourism is also about working with agents, coordinating projects together with many partners, and selling products. In both industries, you need creativity and the ability to find new ways of doing things – they make the difference between success and failure.

How is the Militzer & Münch business in Asia going?

Andreas Löwenstein: Business in Asia is going well. The region is very dynamic. But that also means that conditions are changing at breakneck speed. Anyone who is content with the status quo here will quickly be left behind by the competition. It’s part of our daily routine to deal with special economic zones, tariff-free trade between defined subregions or bilateral country partnerships – and while this often presents us with challenges, it also holds many opportunities. There are currently many more opportunities for investment in Asia than in Europe. For example, new ports are being built to attract industry. Of course, this is also associated with risks, because political tensions, trade restrictions and sudden obstructions to the goods flow are typical of the region. In addition, there are fluctuations in exchange rates here the likes of which have not been seen in Europe for a long time. Thus, product development, network expansion, and legal and currency issues are the focus of our work every day.

What are the Militzer & Münch goals in Asia?

Andreas Löwenstein:
 In regions like Central Asia, Militzer & Münch is a nose ahead of the competition; in most of Asia, though, we are still at the beginning. We are working on finding the right partners, formulating prudent goals, and investing with foresight. In addition to our branches in China, which have been established for a long time, we only have a small country unit in Sri Lanka and a start-up in Malaysia. We want to further expand our network and our activities within Asia.

Which business units are most successful in Asia?

Andreas Löwenstein: Transports between Asia and Europe as well as intra-Asian transports are both largely carried out by sea and air freight. We work with numerous small and large as well as national and regional shipping companies and airlines. Road and rail transports within Asia are reaching their limits due to the geographical givens. There are still development opportunities here. However, due to the specific expertise of our Militzer & Münch colleagues and, of course, of InterRail, we have an advantage over our competitors, especially in rail transport between Asia and Europe – here, we see great potential to position ourselves even more strongly in the Asian market. The rail market is currently booming, and even road transports from China to Europe have recently become part of our portfolio.

How has COVID-19 affected Militzer & Münch’s business in Asia?

Andreas Löwenstein: Of course, the economic volume decreased, and the market slump in Europe was clearly felt here – especially in comparison to the past years. However, this applies to the entire logistics industry. In particular, we have seen a significant decline in the transport of spare parts for aircraft. This was particularly felt by our colleagues in Hamburg and Beijing, because less air traffic during the pandemic also means that fewer spare parts are needed. However, the Asian market is so dynamic that we were able to cope well with these declines. Even during the pandemic, a lot is happening in Asia and there are plenty of opportunities. In the meantime, flights within China are operating almost exactly as they did before the pandemic.

What has changed for you personally since the pandemic began?

Andreas Löwenstein: The pandemic showed me how much is feasible without traveling. Video conferencing has become established in recent months – it saves a lot of time and money. Nevertheless, logistics remains a people-to-people business. Personal contact with customers and colleagues is an essential part of it. I’m already looking forward to traveling in Asia again to maintain old partnerships and build new ones.

How do you spend your free time?

Andreas Löwenstein: I am very much interested in history and culture. Having lived in six different countries in my life and having traveled a lot, I have been able to indulge this interest extensively.

“We are able to react to a crisis fast and appropriately”

Alexei Kovalenko, Guillaume de Laage de Meux and Nikolaus Kohler – as members of the Group Management of M&M Militzer & Münch International Holding AG, they have a close eye on the business of the individual country units. In an interview, they report on how the COVID-19 pandemic has affected the group so far, and how the demand for transport is developing in different industries.

The Militzer & Münch Group is active in 29 countries. The extent of the pandemic varies locally, as do government regulations. How are you dealing with the situation?

Alexei Kovalenko: The safety of our employees has top priority. With the exception of some warehouse space, we count among the asset-light companies. Thus, it was relatively easy for us to have many employees working from home. All things considered, we always act in accordance with local requirements and regulations. But of course, we notice restrictions and decreased transport volumes in international goods traffic. In the West, government support has helped us a lot, including in France and Germany. This has somewhat mitigated the decline in orders. In Germany, for example, we put some employees on short-time working when air traffic came to a virtual standstill and our freight could not be transported on board passenger aircraft.

Nikolaus Kohler: The Militzer & Münch management is struggling with the challenges in all 29 countries and is taking the necessary steps to master the extraordinary situation. Especially in Central Asia, governments have imposed rigorous measures in some cases. In these countries in particular, I assume that not all transport companies will make it through the crisis. However, the Militzer & Münch Group is well positioned – it remains to be seen whether the crisis will lead to a market shakeout from which individual logistics companies will benefit.

“We are a people’s business. We all had to adapt and use virtual means of communication to maintain contacts.”

Alexei Kovalenko
Chief Financial Officer, TransInvest and Militzer & Münch; Speaker of the Militzer & Münch Group Management

 

 

How did business develop when more and more countries announced the lockdown?

Guillaume de Laage de Meux: In France, the lockdown was a drastic experience for the entire industry. On March 16, the French government decided that the population should stay at home and restrict their mobility – in April and May our activities fell by 50 percent. At that time, we put our efforts into securing our unit financially. We were able to absorb the losses with the help of loans from French banks. In the meantime, we have managed to somewhat stabilize our turnover again. Since July we have had a good order situation – although not yet back to the level seen before the pandemic. How things will develop over the next few months depends, among other things, on the impact of the second wave of the pandemic.

Nikolaus Kohler:
 The pandemic has also had a major impact on our business in the Central Asia region. Some countries ignored the situation for a long time, others closed their borders immediately and with all the consequences this entailed. This not only led to an almost total social standstill, but also to a dramatic slump in exports and imports. In Uzbekistan, for example, imports from the Far East continue, but trade with Europe has fallen sharply. The government has halted infrastructure projects and is currently investing more in the healthcare sector. Turkmenistan closed its borders, with the exception of the railroad borders and the Baku-Turkmenbashi ferry. International trade and imports have almost come to a standstill. Due to this total lockdown, the international oil companies have also withdrawn from Turkmenistan – which caused our crane rental business to almost come to a halt. In Georgia and also in Azerbaijan, the buying mood of the population has fallen sharply, which affects domestic transports and thus also our order volumes. In Georgia, there are parliamentary elections this year, but at least the borders have been open again since October – imports and exports are running again. In Azerbaijan, COVID-19 is under control, at least for the time being, but the conflict over the Nagorno-Karabakh region has had a major impact on the country. Our teams in Turkey, however, are coping very well with the crisis. Despite the lockdown, they were able to close these past months with a positive result.

How has the demand of individual industries developed?

Guillaume de Laage de Meux: In the automotive and textile sectors in particular, we experienced a temporarily sharp decline in transports – especially in the South West Europe and Maghreb regions. Business is slowly stabilizing again, but has not yet returned to normal. It remains to be seen how the coming months will develop.

Alexei Kovalenko: China was the first country to “awake” from the lockdown. Together, the teams in Germany and China carried out several airfreight transports of protective masks etc. Demand from the chemical industry that produces disinfectants, detergents and cleaning agents also increased. These positive developments helped to at least somewhat mitigate the decline in orders from other industries. One thing is quite clear: international goods trade needs to continue to pick up speed. It might well be that some companies rethink their supply chains and go back to more local sourcing again as a result of their experience with the pandemic. But this is not going to happen overnight.

“The business of our unit EMEX in Kazakhstan is developing well, our customers have increasingly requested CEP shipments for e-commerce.”

Nikolaus Kohler
Regional Managing Director Middle East / Central Asia, Business Development Switzerland, M&M Militzer & Münch International Holding AG

How has the pandemic changed your daily cooperation with customers?

Alexei Kovalenko: We are a people’s business; we live from the intensive contacts with our customers. The fact that personal meetings with customers and potential customers are not possible or only possible to a very limited extent impairs business. We all had to adapt and make use of virtual communication tools to maintain contacts. In this field,  fundamental rethinking is surely required, as obviously this challenge is likely to remain with us for some time yet.

Nikolaus Kohler: 
In Kazakhstan, however, the limited contact opportunities have not prevented us from expanding our CEP business. The business of our EMEX unit is developing well, and our customers have increasingly requested CEP shipments for e-commerce. One reason is certainly that shopping centers are closed. This is what drives the online B2C business.

“All in all, our actions so far during the pandemic have strengthened my belief that Militzer & Münch is a truly agile company.”

Guillaume de Laage de Meux
Managing Director Militzer & Münch France, Regional Managing Director South West Europe / Maghreb and member of the Militzer & Münch Board of Directors

Is a cautious outlook on the coming months possible?

Alexei Kovalenko: At the end of the first quarter of 2020, our outlook for the rest of the year was pessimistic. However, this changed from June onwards, and July and August went reasonably well. Demand has recovered, and the volumes transported have increased. We have not yet recorded any significant payment defaults or even bankruptcies among our customers. But we need to remain vigilant. We are currently planning for 2021 – with the first three quarters of 2020 always in mind.

Nikolaus Kohler: The development in some countries confirms that our group is well positioned. Our still relatively young joint venture in Serbia, for example, has been on a growth course since it was founded last year. The opening of the logistics facility in Belarus is a positive signal, too. Dubai is also developing well – thanks in part to the substantial business volume of our main customer from the food and beverage industry.

Guillaume de Laage de Meux: All in all, our actions so far during the pandemic have strengthened my belief that Militzer & Münch is a truly agile company. The last few months have shown that we are capable of reacting quickly and appropriately to a crisis. That is why I am very proud of our team and look forward to the future with confidence.

“We Are the Experts for Difficult Markets”

The Militzer & Münch Group aims to continue on its growth path in the coming years.  In an interview, Alexei Kovalenko, member of the Militzer & Münch Group Management, explains where the biggest growth potential lies. 

How would you describe Militzer & Münch in a few words?

Alexei Kovalenko: With a great deal of pioneering spirit, a small forwarding company, founded 140 years ago, was turned by the founders and their successors into an international logistics services provider that has become an expert especially in niche markets. Still family-owned and independent, we want to live this entrepreneurship also in future and open up further difficult markets for our customers. While, of course, bearing in mind trends and changes owed to political and economic developments, we at the same time bank on traditional values such as loyalty, integrity, and respect.

What are the strengths of Militzer & Münch?

Alexei Kovalenko: For a long time already, we have been regarded as one of the leading logistics services providers in Eurasia and North Africa. This geographic view, however, sells us short: We are the specialists for difficult markets, we create individual transport solutions for our customers also under difficult conditions.

What distinguishes Militzer & Münch from its competitors?

Alexei Kovalenko: In some respect we are indeed practically unique: unlike our competitors, we operate our own country units with local management in difficult markets, for instance in Central Asia. Often, our international competitors only send ex-pats abroad, and the local competition lacks the international knowhow. Thus, to some extent, our local expertise combined with international standards makes us unique in the logistics sector.

Which markets and regions do you regard as promising?

Alexei Kovalenko: For us as a flexible medium size enterprise, both the classic trade lanes like Europe-Maghreb and China-Europe as well as the emerging markets are promising. We recently started an initiative to extend our activities to include African countries. In North Africa, we have our own country units, some of them for decades – but we are seeing that Ethiopia, for instance, is a promising logistics market, too. Over the next few months, we will analyze markets in Africa and examine the market situation and demand on the side of existing and potential new customers.

Another example is Southeastern Europe. We have achieved a strong market position in Bulgaria, but not in the neighboring countries. In 2019, we had the opportunity to enter into a joint venture with Invictus, a logistics company in Serbia, and business is developing well.  We want to continue on our expansion course also in other countries of the region.

In which business sector – road transport, airfreight, sea freight, project logistics – do you see the biggest growth potential?

Alexei Kovalenko: We can’t generalize and limit this to one segment. Our maxim is, it must be worth it. We don’t aim for growth at any price, for we offer quality service; a fair margin for high-quality performance must be possible. We regularly check our activities: which of them are profitable, which aren’t? The strengths and weaknesses of the individual Militzer & Münch companies – we operate local units from Morocco to China – have to be taken into account. Thus, on some trade lanes and for some services, we cooperate with selected external partners, which allows us to remain efficient and profitable.

Especially on the China-Europe trade lane, we are aiming to further develop intercontinental overland transportation, i.e. rail freight. More and more, sustainability and economic pressure are inducing importers and exporters alike to opt for the train instead of the plane. With transit times of ten or fewer days on this route, rail freight might become interesting also for the e-commerce sector. We keep an eye also on further developments in the Belt-and-Road Initiative – over the next years, there will be big opportunities for our customers, and thus for us, too.

Today, all eyes are on China for other reasons. From China, the corona virus has spread worldwide and especially in Europe. The current situation is an extraordinarily challenging one for each of us personally and for our economy. It is sincerely to be hoped that the spread of the corona virus can be slowed down by the numerous measures taken and that the global economy will soon recover.

The focus is on customer satisfaction. What distinguishes Militzer & Münch in this respect?

Alexei Kovalenko: Our customers rely on our meeting their often challenging requirements: products with complicated handling, not-so-everyday destinations. Therefore, we bank on competence on developing our specialists, and on local market expertise. Our customers don’t contact the company headquarters, but our local branch offices. They want to work with one defined contact person who manages their project from beginning to end, who keeps abreast of matters and takes responsibility. We are therefore also keen on enhancing the knowhow of our teams; the relaunch of the M&M Talent Management Program ensures the competence of our junior executives. We support the expertise of our teams with our robust and flexibly adaptable IT processes. Our in-house IT company for instance designs individual tracking and tracing solutions for our customers.

“Unlike our competitors, we operate our own country units with local management in difficult markets, for instance in Central Asia.”

Alexei Kovalenko
Member of the Militzer & Münch Group Management

Could Militzer & Münch intensify the cooperation between the individual country units and increase growth that way?

Alexei Kovalenko: Our country units generate their business locally and “live” from their local customer base. At the same time, they can benefit from the strengths of other Militzer & Münch companies, without being forced to cooperate, on the basis of the “right of first refusal” principle. There are cases in the Group where this works well.

At this time, the Militzer & Münch Group is led by Group Management. What are the plans for the coming months?

Alexei Kovalenko: The Militzer & Münch Group is run on a decentralized basis – this has developed over time and is part of the corporate culture. The operational responsibility for results and success lies with the country units and the regional managers, who together form Group Management, i.e. the extended management of the group; together with the Board of Directors they lead the Militzer & Münch Group. In charge of coordination and alignment between the regions is the Speaker of Group Management. (Editor’s note: at the beginning of the year, this task was assigned to Alexei Kovalenko.)

Topics concerning the entire Group such as business development and digitization regularly feature on the agenda of the joint meetings of Board of Directors and Group Management.

This modus operandi has proved successful over the past few months – and we will continue working that way also in the coming months.