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KRAFFTRANS Digest

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This year KRAFTTRANS celebrates its anniversary. For 20 years KRAFTTRANS Group has successfully worked in forwarding market. During this period we have gained the reputation of an accountable and reliable partner. KRAFTTRANS today means responsibility for the result, symbol of set and achieved goals.

We make customer’s life more comfortable by offering high-quality service

KRAFTTRANS is 25 different logistics services, 15 successfully operating offices in 5 countries and more than 300 professionals on the staff. KRAFTTRANS implies mindfulness, courtesy, efficiency, friendliness, knowledge and professionalism.

KRAFTTRANS undertakes to provide logistic services faithfully and fast, in simple and understandable terms.

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We do everything for our clients Customer Care Service In the company operates special Customer Care Service. KRAFTTRANS aims to receive a feedback from each customer about the level of the provided service and its quality. Information, which was obtained during bilateral dialog with the client, lets us make changes in business processes.

In the first half of 2015 8 out of 10 customers put us 8 points for the first cargo-carrying order

Service quality control

For these purposes there exists a system of service evaluation on the basis of key performance indicators (the so-called «KPI»). KRAFTTRANS is used to evaluating each cargo-carrying order. We understand that compliance with universally recognized standards of services quality is not possible without constant training and motivation. The company has a corporate university and forwarders’ school. Much attention is paid to maintaining company’s corporate culture.

In step with the rest world

In our work we use the newest system for data control, optimization and processing. KRAFTTRANS uses ERP-system TERRASOFT to manage planning at the enterprise. We are the only company within the CIS countries which introduced into its work a new training product HP ART. This product allows to create up-to-date knowledge base, offers new and more effective training standards. Our leaders have been trained under the guidance of experts from the UK.

Focused growth strategy

KRAFTTRANS applies strategy of focused growth. Focus on specialization means that each office starts operating to meet particular needs of our customers and develops professionally in a specific area of transportation.

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International freight forwarding companyKRAFTTRANS Group

Company presentation

KRAFTTRANS Group is a large freight forwarding company in the international transportation market with network of branch offices in Austria, Russia, Belarus, Latvia and Lithuania.

KRAFTTRANS, 2015

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Mission, strategy and principles of KRAFTTRANS Group KRAFTTRANS mission:

We find and offer the most beautiful logistics solution from the set of right ones.

KRAFTTRANS strategy:

Focused growth strategy Focus on specialization means that each office develops professionally in a specific area of transportation. Focus allows to concentrate all efforts on the selected carrying direction, form a professional team, gain experience and provide the best solution to the client.

Sustainable Development Strategy KRAFTTRANS positions itself as a fast growing company, with, for instance, three offices which have been opened in different countries over the past three years. The company has a committee on organizational development, which generates lists of tasks for improving business. Besides it, working groups, which are responsible for development of service performance standards and improvements in processes, are being created within the company under the guidance of fellow experts. It helps us be stable, and thanks to the stability our customers receive the highest level of quality.

Reliable service It consists of a number of factors. KRAFTTRANS adheres to the optimum ratio between price and service quality, offering reasonable rates for transportation and logistics services through extensive partnerships with carriers and agents, adjusted business processes and professional team. KRAFTTRANS offers a range of services - transportation, storage and customs clearance.

Principles of work with clients:

Optimum value for money and service quality KRAFTTRANS offers the best prices for transport and logistics services through our extensive partnerships with carriers, adjusted business processes and professional team.

Security and stability KRAFTTRANS provides guaranteed delivery of goods, even under the most unstable external circumstances. Experience and established logistics processes enable to deal with any challenges.

Complex approach KRAFTTRANS reliable work allows our Client to delegate all aspects related to the transportation, storage, customs clearance and cargo insurance to KRAFTTRANS team and be confident in the high quality of their performance.

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Key facts about KRAFTTRANS Group 20 years of experience in the international transportation market

KRAFTTRANS Company was founded on October 3d, 1995 in Minsk, Belarus. At the moment, the company is one of the top three freight-forwarding companies in the country (according to the BAIF). In Russia there are two successfully operating offices, in Moscow and Smolensk. It is being planned to open new offices. At the moment, company's network is represented with 15 offices in 5 countries. Cargo transportation geography accounts over 100 countries.

120 own cars

KRAFTTRANS Group owns a fleet of standard EURO-4 / EURO-5 vehicles with capacity from 4 to 24 tons.

More than 300 employees

The company is actively encouraging its employees' desire to develop, at the same time controlling staff’s knowledge through annual attestation of forwarders. Corporate University, which operates inside the organization, conducts annual studies in ‘School of Freight Forwarders’, certifies specialists as well as carries out welcome-seminars for clients.

Carrier insurance policy 1,000,000 EUR

For additional protection from any circumstances beyond our control, KRAFTTRANS has insurance of carrier liability equal to 1 million EUR

Warehouse in Vilnius, Lithuania

To improve the quality of cargo transportation, in Vilnius there was opened a consolidated warehouse with the area of 10 000 sq.m.

XRM-system TERRASOFT

Inside the company, customers’ appeals and requests are being professionally processed using XRM-system TERRASOFT, which minimizes even a slight possibility of losing information. Regulated processes enable precisely track each stage of service provided to the client.

HP-ART (Adoption Readiness Tool, Hewlett Packard)

In 2014 KRAFTTRANS, the only company within the CIS countries, has introduced into its work a new training product HP ART. Any KRAFTTRANS employee from client manager to lawyer or accountant gets access to working with customer’s company only after a special training course.

KRAFTTRANS key dates

1995 - KRAFTTRANS company was founded 2000 - first multi-modal transportation was accomplished 2002 - office in Riga, Latvia was opened 2002 - office in Smolensk, Russia was opened 2012 - office in Moscow, Russia was opened 2012 - office in Vienna, Austria was opened 2013 - office and the customs warehouse in Vilnius, Lithuania was opened 2014 - HP ART was introduced, a 2-month course of "Customer approach to business and the basis of customer-oriented communication" was held 2015 - 20th anniversary year of KRAFTTRANS Group

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Portfolio of KRAFTTRANS Group Services Transportation types and geography:

− more than 100 countries − all transport modes.

The main types of cargo are: industrial equipment, agricultural machinery, special machinery and equipment, medical products, equipment for woodworking and metalworking, car parts, foodstuff, dangerous and groupage goods. KRAFTTRANS Group provides international carriage of goods by land (road and rail transport), by sea and air as well as fulfills multimodal schemes of delivery.

Road freight Key areas:

− Western countries (Italy, France, Germany, the Benelux countries) and Eastern Europe (Poland, Romania, Czech Republic);

− The Baltic States and Scandinavia; − Transportation within the CIS; − Southeast Asia.

Types of transported cargo (including ADR): − complete; − combined; − bulk; − oversized and heavyweight; − refrigerated.

Air freight − over 700 successfully fulfilled air shipments in 2015 (January-September); − certified specialists in the fields of dangerous goods and animals transportation. − Key areas: Southeast Asia, Europe, North and South America. − Partners: AEROFLOT Russian Airlines *, China Airlines, Korean Air, Lufthansa Cargo, Air Bridge

Cargo, Etihad Airways, Hainan Airlines, China Southern Airlines and others. * AEROFLOT Russian Airlines official representative on the territory of the Republic of Belarus. Sea freight and Container Shipping Agents’ network in the ports of:

− Russia: Vladivostok, Nakhodka, Novorossiysk, Rostov, St. Petersburg, Tuapse, Astrakhan; − Baltic: Ventspils, Klaipeda, Riga, Tallinn, Liepaja; − Ukraine: Ilyichevsk, Odessa, Nikolaev, Mariupol, Renee; − Western Europe: Antwerp, Bremerhaven, Hamburg, Genoa, Le Havre, Moerdijk, Marseilles, Piraeus. − Directions: South East Asia (China, Taiwan, Japan, Vietnam, South Korea, Malaysia); Western Europe

(the Netherlands, Italy, Spain, France, Portugal, UK) Railroad freight KRAFTTRANS have a subsidiary in Brest, which is the main trans-shipment point to those following to/from Europe and the CIS. There is an opportunity to develop loading schemes, sketches for overloading goods and trans-shipment control. Directions: from Europe to Russia, from South-East Asia (China, Japan, Indonesia, Thailand, India) to the Russian Federation through the ports of Vladivostok/East; from Central Asia and the Baltic States to Russia. Oversize cargo Directions: from Europe to the Russian Federation, from the Russian Federation to Central Asia, from the Russian Federationа to the CIS

!For over 10 years KRAFTTRANS provides customers with a full range of services for customs declaration and clearance

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Selection criteria and system of work with contractors KRAFTTRANS Group works only with reliable carriers. Evaluation of contractors is carried out by a proprietary internal evaluation system of key performance indicators - KPI. Quality assessment is made after each cargo-carrying order.

KPI-evaluation system includes: − vehicle availability; − query processing speed and vehicle search speed; − timeliness of transport arrival for loading; − delivery of goods within the specified period; − carriage without insured accidents; − compliance with the initial agreements on tariffs; − observation of the initial requirements; − regular daily reporting (report about cargo movement) by 10 am; − simplicity and usability of the documents; − timely delivery of the original documents.

Carrier KRAFTTRANS characteristics: − own modern transport; − membership in the national association of carriers; − licenses for international transportation; − the insurance policy of carrier liability; − mandatory experience in international cargo transportation; − reliable and modern means of connection and communication; − positive reputation of the enterprise in the transport market.

The rate of KPI-evaluation in KRAFTTRANS Group is 95%. Below this figure none of the company employees is able to offer the client a vehicle for loading. This business process is basic and is included in XRM-system TERRASOFT.

KRAFTTRANS Company has a committee dealing with discrepancies, which generates lists of tasks for improving business. Besides it, working groups, which are responsible for development of service performance standards and improvements in processes, are being created within the company under the guidance of fellow experts.

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Analytical Review Dynamics of transfer orders growth from 2009 to 2014. (road vehicles)

KRAFTTRANS Group turnover from 2010 to 2015. (forecast), EUR

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KRAFTTRANS Group projects

18 vehicles to deliver goods? Easily!

KRAFTTRANS employees from Central Europe department worked hard to cope with goods delivery to the client asap - 18 trucks in 3 days.

Route of transportation: Auto: Gliwice (Poland) - Samara (Russia) Auto: Gliwice (Poland) – Moscow Metropolitan Area (Russia)

Cargo description: metal shelves and related accessories for the major Russian producers. Transportation features: a strict and precise spotting of 18 trucks by 6 am during three days in equal quantities.

Services rendered by KRAFTTRANS specialists: specialists organized loading and customs clearance in Gliwice (Poland), 8 trucks unloading in Samara and 10 trucks unloading in Moscow Metropolitan Area.

Transportation of tractors Belarus (JSC "MTW") to Venezuela

Route of transportation: Republic of Belarus - Lithuania (port of Klaipeda) - Venezuela Cargo description: 560 Belarusian tractors of JSC "Minsk tractor works" Project of transportation: Road freight (187 vehicles), rail freight (3 consists, each of 50 cars), sea freight on RORO ship. Services rendered by KRAFTTRANS specialists: Well-coordinated work of three departments: road, rail and multimodal transport. At all stages of cargo movement KRAFTTRANS staff provided:

full cargo support (during road freight, cargo support on the Lithuanian railways, tracking cargo on RORO board);

safety (insurance, guarding). Description of this transportation was included into the reference manual for training specialists in the field of freight forwarding. KRAFTTRANS has already performed 6 similar equipment deliveries.

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Transportation of agricultural machinery to Argentina

Route of transportation: Gomel (Belarus) - Riga (Latvia) - the port of Buenos Aires (Argentina) Cargo description: Two units of a complex agricultural machinery Project of transportation: Every unit was shipped as a consignment consisting of one container 40'FR and one container 40'OT. Loading of complexes onto 40'FR was made in the port of Riga, where the cargo had arrived on 2 rail platforms. Services rendered by KRAFTTRANS specialists:

− Railway transport route from railway station Gomel (Belarus) – to railway station Riga (Latvia). − Reloading of the cargo at the port of Riga (Latvia). − Container transport from the port of Riga (Latvia) - Buenos Aires (Argentina)

Transportation of pipe bending machines from Taiwan to Russia

Route of transportation: China (Taiwan) - Germany (Frankfurt) - Russia

Cargo description: CNC pipe bending machine, 3 cargo packages, total gross weight - 20079 kg, size and weight of the largest - 7.86 x 2.38 x 2.25 m - 18 184 kg

Services rendered by KRAFTTRANS specialists: − Development of the cargo route scheme. − Loading and unloading control (additional training was conducted, according to airline

requirements and standards). − Ensure safety of the cargo. − Customs clearance.

Features of transportation:

KRAFTTRANS developed a scheme of air logistics delivery using multimodal transportation scheme. Sea freight was not accepted by the client (since manufacturer failed to meet the shipment terms), and it was decided to use air freight.

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Overall dimensions and weight characteristics of the machine were critical for organizing loading and transportation by regular flights from Taiwan to Russia. Transportation by charter flight was rejected due to the high cost. As a result, a new transportation route was made up using scheduled flights through hubs in Frankfurt. At all stages of cargo movement KRAFTTRANS staff provided:

− Compliance with the airlines packaging requirements to ensure that the machine is taken for loading.

To cope with this, a Taiwan freight forwarder’s visit to the manufacturer’s plant was organized in order to meet the necessary requirements. All the necessary instructions were given to the transmitter.

− Organization of test load into the aircraft. After being packaged the weight of containers increased significantly and turned out to be critical for one cargo package (18 184 kg). There appeared a problem with loading onto the aircraft. A trial loading confirmed the opportunity to load this package. The cargo was booked, the airline accepted it for carriage and, finally, it was delivered by a direct flight to Frankfurt. In Frankfurt the cargo was unloaded from the aircraft and placed into the airline warehouse.

− At the next stage, the cargo was loaded into trucks for further transportation by road. Due to the lack of necessary equipment for such weight, a special loader was rented which accomplished load into the truck.

− After there was organized cargo handling and transit clearance. − Delivery of the machine was finished with customs clearance in Russia, control of customs

clearance and delivery to the customer on the territory of Russia.

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Beautiful logistics as a result "We work on a non-standard pattern, keeping all the quality standards of the company"

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It is believed that over time people become similar to their own business, work. Especially those who, as they say, belong to it, enjoy their own contribution to the overall success, created values and results. Tatyana Alexandrova confirms this theory at 110%. She is Deputy Director of the Road Transport Department in KRAFTTRANS and Head in the direction of France. She is a stylish woman and confident in her abilities, like many French women. Her motto is ‘one should be worthy of the selected road’, which means to learn, be curious and open to new, develop, improve your competencies and hone skills. In other words, to be in motion. Easily and with inherit French charm Tatiana talks of complex business processes, company promotion in the highly competitive market of freight forwarding services in France and shares some secrets of her work.

- Tatiana, how long have you been working in logistics?

15 years of my life is associated with the logistics. Before "KRAFTTRANS" I had worked as a chief in a Moscow forwarding company for more than five years, then in procurement. I joined the company as Head of the direction France. I have three educations, two of which are higher.

- What attracts you to forwarding industry? After all work in this area is complex and not women’s!

That is right, work is complex and multi-tasking, but that is why it appeals as you get real pleasure from the result. And you clearly see the result, you know where you coped on 100% and where you need to review approaches and start the process anew. You set goals, big or small, short or long-termed, and constantly work to achieve them. The attractiveness of work in the transport logistics for me lies in the capability to create more and in the fact that everything constantly changes here, somewhere new sanctions are imposed, somewhere routes are closed and in some cases new permits are taken. And all the time you need to be in trend, keep the situation under control, own a large amount of information and be able to use it at work, and most importantly - understand and apply company business goals. This multi-tasking is like conducting a great orchestra when the music sounds harmonious. If all components match, you get a real pleasure from work, from your craft and contribution you make. The pleasure from the unity with the team, from experience you can give to colleagues and get back. This cannot but attract.

- Tell us, please, about the French way. You mentioned that this is a new project. What caused the interest of the Belarusian forwarding company to France?

France is one of the most important partners for the Russian market and the CIS countries, including Belarus. It is the country which makes a significant share of turnover in the EU and in the world. Russia is its main economic partner, and trade relations between the two countries were built a very long time ago. Therefore, a new direction was discovered in our company not by chance for there is a clear understanding of the scope and prospects, as relations between Russia and France do not stop, they develop, even in the current situation with sanctions countries have priority to conservation diplomatic and economic agreements.

- So, Belarus stands more as a transit territory...

We are working on the Belarusian market, but volumes are small, so very few in forwarding market treat plans for the development of our market. And if some cargos are imported to Belarus it is thanks to Russia. For instance, Russia has allowed fruits and vegetables to be drawn in Belarus and our country recalled its favorable geographical position and realized that they may earn something due to the sanctions. But it is very difficult to speak separately about Belarus as we import very little.

- What is the potential for freight development between France and countries of the Eurasian Economic Community, including Belarus?

In the terms of shipment French market was conquered long time ago. And since last October import has descended by 40%. Competition among carriers here, in contrast to the market of Italy and Germany, is very tough. Therefore, I will not deny that we work

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pretty hard. At the same time, we are able to stay at a decent level and get major customers on behave of such companies and brands as Michelin, IKEA, chemical company «Arysta» and others.

It is not without pride that I want to commend the work of "KRAFTTRANS" team in general. We are at the forefront of high-quality services and talk about "beautiful logistics", meaning by this slogan "perfect customers’ orders fulfillment." These performance standards are very helpful to us in the development of French destinations. Let me explain what I mean. The French have such a feature: if they have chosen a business partner they will work with this partner for a long time. For French customer it is important to get quality at low cost. They do not like to spend money and are able to work economically. And they require the same from their partners. For us, this means that for a reasonable price we have to provide quality service. In other words, first we are building these relationships, build trust and then they are constantly maintained at a high level. And, fortunately, we have been able to observe this balance without compromising business goals.

Despite all the difficulties, freight from France has great potential. We forecast that in the portfolio of our company's share the given direction will take at least 15%. Owing to receptive market, trade between France and the CIS countries is high enough and the direction will be actively developed, and, in our turn, we will work to increase the number of orders.

- You talk a lot about the quality. What do you mean by this concept?

This concept of "quality service" is formed by our customers. The customer wants to get a quality service. Meanwhile, the quality of the provided service for him is determined by attentive service, the degree of his desires satisfaction and other factors. To meet customer's expectations, we first find out all the needs and wishes and then provide quality service. For one everything should be just in time, for others low cost transportation is of high priority. But in general, both for us and for the customer, quality means absence of any troubles in our interaction and mutual desire to continue cooperation. We can praise ourselves for a long time, but the main indicator of our work and quality of the services we provide are customers’ reviews, when they are happy to work with us and come back again and again.

- Is there any difference in the term "quality services" for a French, Russian or Belarusian customer?

In our work with clients we try to understand them as fully as possible, take into account the peculiarities of the mentality and business approach in order to meet their expectations of quality. So often our actions have proactive character. For example, we look for effective solutions in transportation, review routes and strive to make them even more convenient for customers. We offer packages that include a range of additional options, such as guarantee of timely delivery, presence of a co-driver, customs clearance, customs broker, etc. We use package development practice quite often, because, as I said above, competition in the French market is tough, and almost all carriers offer the same set of services. In such case it gets quite difficult for customers to assess the quality. We are trying to stand out and offer several packages with different sets of services, price patterns, discounts and so-called "bonus forward", which is inclusion of additional services into the package without regard to their cost. We always work on a non-standard scheme, keeping all the quality standards of the company. In such flexibility, I am assured, lies our competitive advantage.

- Can you tell us about some interesting cases which were associated with cargo delivery from France?

I think it will disappoint you, but we did not use to have them, because in the logistics everything should be planned in the way no incidents occur. We do not allow any surprises to interfere into our work, but pre-calculate routes, take into account all characteristics of the road and territory, weekends and holidays, and so on. We consider all tiny things which can occur during transportation in advance. I always tell my employees that they should pass along the route of each transportation in their minds, think it through in detail, precisely predict and proactively neutralize all possible cases. For the customer and for us that is of mutual interest to make carriage pass by imperceptibly.

I can give you an interesting example when we "conquered" one of our major customer. In the south of France there is a large chemical company. Its cargo is class ADR (dangerous). Region is daunting, there are difficulties with transport logistics in principle. Knowing all the facts, the customer adduced the following assessments to potential carriers: low price and availability to book transport within an hour. For this customer we specially

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developed a special overloading scheme. As a result, we were able to provide the customer with a lower cost of transportation and keep delivery by trucks. In our package everything was taken into account: overload, customs clearance, trucks mileage to the factory, participation of several carriers in the delivery chain. Still, the price we proposed for the transport of dangerous goods turned out to be lower than shipping through the port of Marseille. And we have signed a long-term contract as well as obtained valuable experience.

- Great projects are not done alone. Please, tell us about your team

French direction is a new one, thus I cannot boast with innumerous staff. I would say that every one of them fully shares our company’s values , understands and accepts the established quality standards. We prepare these employees: provide training, include mentoring system that allows newcomers to flow into company life and demonstrate their abilities, see opportunities for personal and professional development and growth. There is also "Forwarder’s School". In this school not only beginners study, but also those who already have experience in the field.

All the time I keep telling about the quality. I should note that inside we also evaluate the quality. We have developed 11 indicators by which we assess our own work as well. The system is flexible - we can, if necessary, add a test or criterion, which is acute to the client, and monitor its progress for each employee. If it is required, we adjust the team work.

- What are the plans for the development of this direction?

We have a sales department, have an understanding of what clients interest us, there is a strategy how to enter and position in the market. I am not going to reveal all cards. Let me just say that we are promoting ourselves as a worthy and reliable partner. Already there are cases where we are recommended to the customer through another client’s feedback. And we try to work for the future.

Moreover, we have another new trend in Europe - trucking in the direction of France-Poland, France-Germany, Spain and Portugal. Carrying out home trade carriages within the EU is available only to European carriers. And our department was the first to carry out such transportation within Europe owing to the opening of offices in Austria and Latvia and our reputation of a reliable carrier, which we deserved and support by our daily work.

- You have an intense work schedule, which implies a good rest. Where do you take the power and how do you rest?

I like travelling. Favorite countries are Italy and, of course, France. And I appreciate passive rest - beach, sea and excursions. I read a lot. That is not only business literature, but mostly classics: Pasternak, Yesenin, Petrarch, Dostoevsky. I would recommended to re-read the classic works. They possess much sense and wisdom which can be applied at work and in relationships with people.

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In business, as in life, you need to be able to listen When a thousand words and one pertinent silence bring millions: our heroine knows firsthand how to sign a major contract, encourage a desperate client and gently persuade her younger daughter to read bored books. Lives of such people are tuned as power plant working mode when time is a scarce resource. But even in the funnel of working and family affairs it can be possible to find time for self-development. Deputy Director of KRAFTTRANS sales department Catherine Molodtsova told us about displacement of the freight market to the West, acceleration of business processes, attracting "giants" and wonders of communication.

- They say a word cure, but how can it ensure success in business?

- Words work wonders, as well as silence when it comes to the point. One can cite a dozen examples when necessary phrases brought us multimillion-dollar contracts.

To succeed in negotiations you need to be ready for empathy, or in other words comprehension of the emotional state and inner world of another person. You communicate with the person at the same time trying to predict how he will react to your words. In good sales 70% of time the client is speaking and only 30% is the seller. In business, as in life, you need to be able to listen.

- And still be a man ...

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#weareKRAFTTRANS - Undoubtedly. It is crucial to understand that although achieving the result is crucial, but not at any cost. It is necessary to respect people and not abuse their trust. And it is important at all times to be kind and friendly because people are attracted to optimists.

- Maybe it was a charge of optimism that brought you to the company one day?

- It was about eight years ago. I was offered to change for KRAFTTRANS from a large competitor. At that time my former company was engaged only in road freight, and I wanted particular growth. At the new place I had the opportunity to be engaged not only in road, but also container shipments, air and rail freight. So I found myself in the area of professional development, which still continues until today.

- Now, when the market of transport services in the CIS countries "is narrowing", sometimes you have to learn and grow on your own experience?

- Fortunately, we learn not from mistakes but from successful examples. For instance, when Russian crisis broke out and the ruble collapsed, we started to work actively towards the West. Our strategy was rewarding: over the last year the share of foreign clients who pay in foreign currency has increased significantly. The company has diversified risks and become more resistant to external factors.

- But the market is changing so rapidly that keeping track of all metamorphoses definitely becomes more complicated...

- Yes, the market is accelerating. To stay on the site, you need to run, and to move forward a bit, you have to run twice as fast. This phrase, which was put into the mouth of Lewis Carroll’s Queen from "Alice in Wonderland", perfectly describes the current situation in the market. To achieve the results of the previous years, we need to work quickly and diligently, and to improve the result it is necessary to make twice as much effort. How do we act? We increase the number of scheduled meetings, strengthen sales, attract more new customers and review KPI.

- How did the company manage to increase its customer base in Europe in a short time?

- This is partly the merit of our marketing department, which analyzes large volumes of data and finds potential customers. In addition, we have adapted our presentations to foreign audiences, as well as reinforced sales team with professionals who are fluent in English, German, French and other languages. We opened an office in Vienna. Thus, we have become closer to European customers, and therefore are more likely to receive their orders.

- And how do routes of transportation change in crisis?

Any crisis forces companies to reconsider their seemingly well-established logistics. So, if earlier manufacturer of bank cards in Russia used to purchase high-quality plastic in Italy, now he is looking for it in Turkey, Poland and China. Carriers have to respond quickly to rapidly changing customer’s needs.

- What kinds of challenges can be expected in the second half of the year?

- Reduction in the number of customers and, consequently, the volume of cargo. In order to compensate this serious carriers like KRAFTTRANS try to work more closely with major customers.

We've been looking for an approach to such "giants" as Mars. The crisis helped us to some extent: the manufacturer started to reduce the pool of carriers and organized a qualification which not all companies passed. We were among those few who were able to offer long-term deferral of payment and ensure a high level of service.

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#weareKRAFTTRANS But during crises we should not forget about smaller companies. Current situation should be used to improve customers’ relationships. Our global task is to contribute to the growth of their business by all means. We always say that no one really wishes more prosperity to the company than its carrier. And we have proofs from our practice, because whenever possible we help to reduce costs and find buyers around the world.

Here is a simple example: a company had a client who imported pasta from Italy to Russia in standard awnings. We calculated that, with regard to the product weight, it is more profitable to deliver vans of 120 cubic meters as they hold more goods and the cost does not increase much. Supplier took advantage of the advice and thus reduced the shipping costs dramatically. This is just one of a few examples.

- But competitive cargo transportation market does not have enough space for all. Who turned out to be at risk?

- The most difficult situation occurs in small companies, which are closed due to the lack of working assets and deterioration in the receivables. Many vehicle owners are selling trucks. At the same time, large transport companies are expanding their market share by investing huge resources in dealing with customers, sales, marketing and promotions. These carriers have taken a more aggressive stance in the area of sales. It is understood that, шт the long run, consumers of transport services benefit from it.

- Probably the requirements to carriers have also increased?

- Customers have become more demanding and careful. They do not want to take risks, and therefore calculate their costs and turn to proven carriers. Large companies such as KRAFTTRANS feel easier since they have a reliable brand and a wealth experience in fruition of complex projects.

- How do senders and receivers evaluate the efficiency of a carrier?

- For these purposes there exists a system of service evaluation on the basis of key performance indicators (the so-called «KPI»). In order to evaluate the efficiency of a carrier, customer receives a weekly report, where, for example, it is indicated that 98% of the trucks fulfilled orders on time, 2% were late for unloading, goods were delivered in integrity and safety and drivers were always on contact. At the same time during the project client can promptly receive information on the whereabouts of the cargo.

- KRAFTTRANS has surprisingly low labor turnover rate. What is the reason: either it is really a "dream company" to majority or some market forces matter?

- The reason for the low labor turnover lies in special relationship guidance to subordinates. Our company appreciates and respects the opinion of each employee. Even a novice, who yesterday graduated from a university, can offer something to improve the company. All ideas are taken into consideration, the best of them are put into practice and their authors get encouragement. Basically they offer ideas for business processes reorganization, including sales and customer support.

When a company is developing dynamically, it is necessary to minimize the amount of errors. To achieve this our company has a committee on organizational development, which gathers ideas on how to improve business. In addition, there are working groups which are engaged in the service development, development of common standards of work and other improvements. Changes are brought into business process and then scaled to the offices in different countries.

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- Many of your employees also teach at universities. Is it encouraged by the company?

- Teaching activities are fully encouraged as these people can properly convey their knowledge to young generation and, thus, play an important role in the development of staff’s skills within the company. Our company believes that if a person can and wants to communicate with young people it gives him the best characteristic.

- What additional training do young professionals pass in the company?

- For such specialists we have a corporate university – Forwarders’ School. The training system is maximally adapted to the needs of the company and is completely automated: within the working day any new employee may study the material, do the test and get its results. Before complex project is started the staff, who is planned to be responsible for it, are offered to pass the test in order to prove their knowledge.

- What has your profession taught you first of all?

- To understand people. Sales and marketing is a kind of school of life. When you have been communicating with customers for a year or two you start to build up contacts with strangers in absolutely another way. It is no trouble at all for you to step up to a person in a negative mood, start talking to him, coordinate something and solve some important issues. You can convince the person, lead him up to agree with you and prompt your point of view.

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