COST OPTIMIZATION  SAFEGUARD YOUR BUSINESS  SHAPING DIGITALIZATION  FUTURE FORWARD

Why is responsibility so important to us? 

Responsible entrepreneurship is reflected in our brand via sustainable corporate success, in how we deal with our employees or stakeholders, and by how we include social concerns and environmental aspects. The cornerstones of sustainable corporate management at Müller - Die lila Logistik include integrity, compliance, and legal responsibility as well as the "Lila Constitution". It sets the guidelines for our actions and provides orientation for our employees. With our business model that breaks through the classic distinction between consulting (LILA CONSULT) and implementation (LILA OPERATING), we also stand for sustainable logistics strategies and customer solutions. 

Labor Issues

Müller – Die lila Logistik AG and its subsidiaries owe their success to the commitment and ability of their fantastic employees. A total of around 1,700 employees from 39 nations (previous year: 33 nations) contribute to this success by constantly improving their respective activities and processes. A trusting relationship with our employees is more than an ethical and legal requirement for us. Without our employees, we would not succeed.

That is why dedicated and qualified employees are an important success factor for us as a service company. To ensure this, we offer our employees a variety of training opportunities and offers for personal development. Another focus is the promotion of our junior staff.

In regard to demographic change, the early and long-term commitment of talent is of key importance to the company's success. The aim of our activities is to keep our employees' qualifications up to date, to develop their skills - in particular with regard to the digitalization of our business model - and to foster talent within our own ranks.
 

Apprenticeships

The topic of training has a high priority within Müller - Die lila Logistik. The following apprenticeship occupations are offered by Lila Logistik:

  • Warehouse Logistics Specialist
  • Professional Driver
  • Forwarding Merchant
  • System Integration IT Specialist
  • IT Clerk

In addition to the endowed professorship at the Heilbronn University of Applied Sciences held together with the Würth and Bechtle companies, a lecture program will be held in collaboration with the Friedrich Alexander University in Erlangen-Nuremberg.

The Lila Logistik group cooperates with the Baden-Wuerttemberg Cooperative State University (DHBW) in Stuttgart. Places are offered in the program "Business Administration / Service Management" with the following main focuses:

  • Logistics & Supply Chain Management
  • Media, Sales & Kommunikation
  • Management Information Systems – Application Management

Through our own training, we secure qualified junior staff from within our own firm.

In the selection process, we pay attention to equal opportunities. Through our training program, we can offer young people attractive training and a realistic opportunity to enter the job market.

As a measure in the field of personnel marketing, Müller - Die lila Logistik presents itself in the ever - increasing competition for talent at relevant company contact fairs and training fairs. We adapt the training volume to the internal requirements of the locations. We train against the backdrop of the highest possible takeover ratio. Overall, a high-quality education is offered in all training occupations, including both a school offer and other internal offers. These include:. regular traineeships, in-company lessons, financial support during semesters abroad, and "Lila Apparel." In order to expand their social skills, the trainees complete a two-week social internship at the Theo-Lorsch-Werkstätten in the district of Ludwigsburg during the first year of their apprenticeship. We do not see any significant risks to training resulting from business activities or risks associated with our business relationships or our services.

We refer to online portals (Kununu, Xing) where we have received good reviews as a training company. In 2017, established publications, such as the magazine "Capital", certified us with a good rating for offered training quality.
 

Employment

We endeavor to handle the work with our own staff. The proportion of temporary workers and fixed-term employment relationships is used by Lila Logistik as a so-called "flexibility quota", which is individually adjusted and regulated at the locations according to the needs of the operational process.

Generally, we want to enable our employees to work under permanent employment. After a temporary assignment within the Lila Logistik Group, qualified and motivated employees are taken on as permanent employees as soon as possible.

We see significant risks to the employment relationship arising from business activities and risks associated with our business relationships or our services in peak workloads and the absence of operational logistics processing. We are currently seeing problems in the availability of skilled workers in the labor market. From the point of view of the German Association of Chambers of Industry and Commerce (DIHK), the shortage of skilled workers is becoming an increasing burden for companies.

As a key (non-financial) performance indicator, we cite the external staff ratio, which averaged 14.6% in 2017.
 

Employee Development

The further development and promotion of the qualification of our employees is an important concern for us. Within the scope of our possibilities, we support employees according to their strengths and tasks. In 2015, a further training committee was formed to steer the qualification program, which examines the application for continuing education and decides on its approval. Regular employee appraisals explore the need for further training and provide orientation for possible measures and individual offers. In addition, executives receive targeted training in order to fulfill their role in the company. Personnel development is rounded off by the promotion of part-time further education and the support of retraining within the company. Significant risks to personnel development arising from our business activities and risks associated with our business relationships and services are seen in the individual knowledge and interest of the employees and the market demand for personnel.
 
As a key (non-financial) performance indicator, we list the number of applications for continuing education within the group. In the 2017 financial year, 56 applications for further training were approved.
 

Occupational Safety

Occupational safety and security has a special meaning at Müller - Die lila Logistik.

A safe working environment not only protects our employees, but also ensures a smooth process flow. Following rules and regulations in occupational safety forms the basis for secure jobs. Annual training courses on occupational safety and behavior in the workplace, in cooperation with the employers' liability insurance association, are intended to raise safety awareness. These measures are supplemented by occupational safety inspections. To ensure our quality standards, Müller - Die lila Logistik works with external security service providers, consultants, and company doctors.

Negative health and safety implications of operations and risks associated with our business relationships and services could not be identified.

As a key(non-financial) performance indicator, we report reportable accidents at work. In 2017, 38 accidents at work were reported to the employers' liability insurance association.
 

Health Protection

Müller - Die lila Logistik values the promotion, improvement, and maintenance of employee health. Health promotion measures implemented as a pilot project in Besigheim in 2017 were designed to motivate employees to lead a healthy lifestyle and totake on more responsibility regarding their personal health. The measures implemented in 2017 were: 

  • „Smoke-free"
  • „Health Check-Up"
  • „Nutrition Quiz"
  • „Hygiene"
  • „Healthy Backs"
  • „Black-Roll Exercises"
  • „Fruit Action"
  • „Stress Analysis"

We see significant risks in the area of health protection in diseases that can not be directly influenced by company measures.

As a key (non-financial) performance indicator, we give the number of actions on health protection carried out. Eight health campaigns were offered and carried out at the Besigheim site in the 2017 financial year.

Social Concerns

With our 20 locations in Germany and Poland, we're active in an environment in which different social and political influences are effective. In order to be prepared for the future, we make our corporate interests in the workforce and among the market partners understandable. That is why we maintain an exchange with our stakeholders and represent our interests in an open and fair dialogue.

For us, stakeholders are persons and organizations who place legal, financial, ethical, or ecological expectations on Müller - Die lila Logistik. The criterion for their identification and weighting is the extent to which a person or group is influenced by the decision of our company or, conversely, can influence this decision itself. Our primary stakeholders are therefore our employees, customers, lenders, shareholders, and suppliers. However, we also maintain contact with other groups, such as analysts, associations, media and science representatives, residents and neighbors, and communities in our locations.
 

Inclusion

We pursue the integration and promotion of people with disabilities..

In particular, the cooperation with work and residential facilities for people with disabilities is maintained, such as the Theo-Lorch-Werkstätten in the district of Ludwigsburg or the Gemeinnützige Werkstätten und Wohnstätten GmbH (GWW) in Althengstett. At the locations in Besigheim and Althengstett, people with disabilities are offered suitable jobs to enable their integration into working life.

In addition, all apprentices in the first year of training complete a social internship for two weeks in a workshop for the disabled. This dismantles obstacles, addresses fears, and develops personal social views.

Because the tasks are tailored to the needs, we do not see any material risks to the employment relationships arising from the business or the risks associated with our business relationships and our services.

We cite the number of jobs offered and the various actions as important non-financial performance indicators for inclusion. In 2017, a total of 38 people with disabilities were employed at Müller - Die lila Logistik, four of them in an inclusion model. In addition, twelve trainees spent a total of 120 days in social facilities.
 

Social Projects

Our employees participate in social projects through their active participation in a "Lila Team" at their respective locations. This personal commitment is an expression of our social responsibility.

If possible, every location should carry out a social project once a year. This can be, for example, constructing a climbing course at a kindergarten, gardening in a school, painting in a kindergarten, or volunteering at a sporting event for disabled people. In the foreground, the personal commitment of our colleagues shines.

We do not see any material risks for the social projects that result from business activity or risks associated with our business relationships or our services.

As a key (non-financial) performance indicator, we cite the number of our various social projects.

In the 2017 financial year, a total of eight social projects were carried out. 

 

Lila Logistik Charity Bike Cup

Hobby athletes, recreational riders, and racing enthusiasts meet every year in early October for the Lila Logistik Charity Bike Cup. Müller - Die Lila Logistik is the title sponsor of the event and many employees choose to participate in the event as well.

In cooperation with the Radsportakademie, Bad Wildbad, and the Förderverein Stare Care e. V., Stuttgart, the event took place in 2017 for the eleventh time. The proceeds of donations, which result partly from entry fees and the raffle, are used to support community projects that aid disabled children or children from disadvantaged backgrounds.


We do not see any significant risks for the Lila Logistik Charity Bike Cup arising from business activities or risks associated with our business relationships and our services.

The 2017 Charity Bike Cup raised 30,000 Euros with the help of 800 racing participants. 

 

BDR Young Talent and Talent Development

Since 2013, we have extended our involvement in cycling to the Association of German Cyclists (BDR). Here we pursue the goal of promoting young cyclists in Germany. The sponsorship includes the title sponsorship of the German Cycling League in Germany and support for the young athletes of the BDR.

In 2017, for example, the following four BDR talents were supported in the promotion of young talent:

  • Ricarda Bauernfeind
  • Vanessa Wolfram
  • Leon Heinschke
  • Niklas Märkl

We do not see any significant risks to the promotion of talent and junior staff resulting from our business activities or risks associated with our business relationships or our services.

Respect for Human Rights 

Respect for human rights is second nature to us. It is our aspiration to ensure that these elementary rights are respected in our units, our partners, and our suppliers.

Human Rights

Our attitude is to ensure the General Equal Treatment Act (AGG) in a non-discriminatory group of companies. Our aim is to prevent discrimination based on race or ethnic origin, gender, religion or belief, disability, age, or sexual identity.

We do not see any material risks with regard to respect for human rights resulting from business activities or risks associated with our business relationships and our services.

As a key (non-financial) performance indicator, there were no reported or detected cases of human rights violations in 2017.
 

„Lila Constitution"

With the „Lila Verfassung", we have created a self-imposed framework for all employees within the Lila Logistik Group. 

The "Lila Constitution" addresses the following topics: 

  • Service & Passion 
  • Team & Character
  • Customer Benefit & Intelligence 
  • Trust & Speed
  • Strengths & Curiosity

The "Lila Constitution" was personally borne and presented to all locations by the Executive Board, and action recommendations for the "Lila Constitution" was drawn up for all site managers. The topics of the "Lila Constitution" are distributed via various communication channels within the group, for example, during interviews in the HR department as well as during internal team and employee interviews.

We do not see any significant risks in dealing with the "Lila Constitution" arising from business activities or risks associated with our business relationships and our services.

Key performance indicators for the "Lila Constitution" are not available. 

Combating Corruption, Bribery, and Money Laundering

Müller - Die lila Logistik has committed itself to not tolerating corruption in its own business activities. In addition to the laws, it is also about compliance with the UN Convention against Corruption (2003). Compliance and integrity have a high priority at Müller - Die lila Logistik. All employees are therefore required to respect and comply with applicable laws and regulations. The same applies to internal instructions and guidelines of the Lila Logistik Group.

Corruption

The Compliance Management System at Müller - Die lila Logistik aims to systematically and permanently prevent, detect, investigate, and sanction breaches of the rules in the company. Müller - Die lila Logistik has established necessary organizational structures and allows risks to be controlled consistently by the responsible departments. As part of risk management, material and compliance risks and measures are presented and documented. In addition, internal controls and audit procedures regularly determine which developments in the compliance management system make sense. Violations of laws and regulations can cause serious damage to the company, its employees, business partners, and the general public. A whistleblowing system has been set up on the homepage for employees and third parties to report compliance violations at Müller - Die lila Logistik. This gives the opportunity to uncover legal violations within the company. In particular, concrete evidence of serious breaches of applicable laws, policies, or corporate policies, if any, may be provided. We see the number of corruption cases as significant non-financial performance indicators. In 2017, there were no reported or detected cases of corruption. We do not see any material risks of corruption arising from our business activities or risks associated with our business relationships or our services.
 

Bribery

Employees may not offer or grant benefits with the intention to improperly influence the recipient. "Inappropriate influence" means acting with the intention of inducing the recipient of a referral to improperly give the other party an undue business advantage. Our employees may only offer or grant gifts of modest value, including gifts or entertainment to third parties in certain situations arising from normal business dealings. 

The internal control system (IKS) at Lila Logistik serves by applying various principles for bribery prevention. These include both preventive and detective controls, which include IT-based and also manual voting, separation of functions, a dual control principle, and the transparency principle.

The group guide defines business processes and procedures as a guideline. The four-eyes principle states that important decisions must not be made by a single person.

We do not see any material risks of bribery arising from business activities or risks associated with our business relationships or our services.

We see the number of bribery cases as significant non-financial performance indicators, but there were no reported or detected cases of bribery in 2017.
 

Money Laundering 

We do not tolerate any kind of money laundering and work to prevent it. We do business only with reputable partners who engage in legitimate business activities. In advance, we obtain information by means of appropriate early warning systems, such as: B. Credit information on well-known information points. We do not see any significant money laundering risks arising from business operations or risks associated with our business relationships or our services. Significant non-financial performance indicators include the number of reported or detected cases of money laundering. In 2017, there were no reported or detected cases of money laundering.
 

Besigheim, 19th March 2018
Müller – Die lila Logistik AG | Investor Relations
Ferdinand-Porsche-Str. 4 | 74354 Besigheim-Ottmarsheim
Tel. 07143 810 125 | Fax 07143 810 129
investor@lila-logistik.com