Interview with Sergiu IORDACHE, Managing Director at DSV Romania.
This is already the 6th year since DSV Solutions is active on the Romanian market, registering a continual evolution of services. What are the company’s trump cards on the local market, bearing in mind the high level of competitiveness in the transport and logistics industry?
I believe that everything starts with the mental setting of the people that form the team. The word ‘solutions,’ integrated in the name of the company, is not just an empty word, as it represents the landmark in making any decision. This is our mind-set and it is not a simple coincidence that, although we work in a multinational which is no. 6 globally, we have an entrepreneurial mentality. Certainly, we respect the philosophy, rules and direction of the group, but when needed, we are flexible and adapt to the local context. We started the series of arguments with “mentality” because the way we think, respectively the way we act, is reflected by each facet of our activity. For example, let’s look at the decision to invest in key-project relevant for customers, at a time when the majority prefers to “save money.” We believe that, by investing, we develop the latent potential of the business. Proof that the theory works? Last year we opened a new Class A warehouse in Bucharest, with a surface of 20,000 sq m, and the satisfaction of our customers confirmed the importance of the decision. Actually, the idea was received with enthusiasm and 80 per cent of the warehouse was full even before the launching event. The same focus on customers made us rethink the flow of communication and services. Thus, our partners can contract at the same place all the transport and logistical services they need. Each actor involved in the process saves energy, time and – eventually – money. When you invest and you do it in quality projects that confirm the expectations of customers, the results are directly proportional.
As an important representative of the foreign businessmen’s community, what are the main difficulties that DSV Solutions faced in Romania since entering the market here? What is your message for potential Danish investors?
All the conferences about leadership and entrepreneurship postulate the principle that “risk” and “opportunity” are two sides of the same coin. My philosophy is: find and develop the opportunity. Find and avoid the risks. Study the problems and see what solutions you have. If you consistently follow this theory, the Romanian market can be very interesting for any investor. I don’t know if I am a hopeless optimist, but I tend to believe that, in terms of location, also of labour force, Romania remains an attractive destination. If you are well informed, opportunities are bigger than risks. Plus, each market has its downsides. The secret lies in knowing how to sail the seas of emerging economies.
For our line of business, what really matters is the state of infrastructure. But we do not just sit and complain about the quality of roads, but we adapt to existing conditions and seek ways to satisfy our customers also with respect to their transit time requirements.
2012 represented a successful year for DSV Solutions through expansions and investments seemingly defying the economic crisis at European level. What is the situation so far in 2013 (Q1) for the company you represent and what plans do you have for the future?
After successfully launching the new warehouse in Bucharest last year, thus servicing the exigent customers that needed the proximity of the Capital, we intend to expand the operations in several other key regions of Romania, namely in Cluj and Northern Moldavia (Roman and Bacau). Because we live in a digital era, we invest in equipment with state-of-the-art technologies, as well as in services with online and mobile applications. For example, we recently launched DSV Daily Pallet, a new road transport service in regime of grouping that has as main characteristics the possibility of reserving and scheduling the transport online. By using our digital platform, customers can order online a transport of pallet freight up to maximum 3,500 kg to and from any country of Europe.
As for the present situation at company level, the forecast made at the end of last year, which estimated a 10 pc turnover increase for 2013 was confirmed in the first quarter of this year.
There is a real pressure put by customers towards lowering prices and increasing the quality of services, but we are able to successfully sustain it. As I reminded previously, a solution was to increase the Class A warehousing surface in the proximity of the Capital. The second was using digital solutions, which provide more rigour, compress times and increase the efficiency equally for the customer and for us. Retrospectively looking to the expectations of customers and their ever higher exigencies, we can only thank them. We succeed in being contemporary with the technology and thus one step closer to the future, especially thanks to them.
DSV Solutions is part of the Danish Group DSV, a global supplier of transport and logistics services. DSV has offices in more than 70 countries all over the world and an international network of agents and partners. By our professional and advantageous overall solutions, the approximately 22,000 DSV employees recorded worldwide annual revenue of 6 billion euro for 2012.
In Romania the DSV Group took over Frans Maas’ activity in 2007, under the name of DSV Solutions. The services offered range from international road transport (full truck load & less truck load), sea transport (FCL & LCL), air transport, oversized and overweight transports, domestic transport, customs brokerage, logistics and distribution services. The company has offices in Bucharest (D1 & D2 Bucharest West Park for Logistics and Otopeni Terminal), Timisoara, Brasov and Constanta.
DSV Romania facts and figures
CA: 134.981.381 RON
No. of employees: 300
Warehouse space: 57,400 sq m