CENTOS Central Logistics Warehouse Operation & Transportation Services

Transcription

1 CENTOS Central Logistics Warehouse Operation & Transportation Services

2 Facilities Overview - Financial Statement - Global Logistics Network - CENTOS Hamburg, Germany - CENTOS Hamina, Finland - CENTOS Moscow, Russia - CENTOS Saint Petersburg, Russia - CENTOS Kiev, Ukraine

3 Facilities Overview (Financial statement) CENTOS Sales Revenue Development The growth rate of CENTOS was increased sharply over the Year Positive growth rate of sales revenue can make more stable service to Clients. Unit : Million Euro Unit : Million Euro Year Sales Revenue Growth rate Yearly Annual Sales revenue & growth rate 25% % % 20% % % % 7.3% 10.4% 15% 10% % 5% Excluding Ocean Freight amounts Source from CENTOS Central logistics Annual report % 3

4 Facilities Overview (Global Logistics Network) GLOBAL Logistics NETWORK CENTOS Central Logistics, founded in 1998, is one of Europe s fastest growing, integrated, end-to-end logistics companies and warehouse provider. Headquartered in Germany with global presence across Eastern Europe and CIS countries. CENTOS central Logistics is today the preferred logistics and SCM partners for leading international companies. Beginning from its roots as a service oriented Warehouse solution providing company, CENTOS Central logistics over the past few years has added significant competencies to become an integrated logistics player with global and local reach.n own assets-led business service such as truck, equipment and warehouses. Hamina. London Wroclaw... Kiev Hamburg. St.Petersburg. Moscow. CENTOS Winsen, Germany CENTOS Hamina, Finland CENTOS Kiev, Ukraine CENTOS Moscow, Russia CENTOS St.Petersburg, Russia CENTOS Wroclaw, Poland CENTOS London, UK 4

5 Facilities Overview ( CENTOS Hamina 1-2) CENTOS Hamina, Finland (1-2) Section Description Location Hamina, Finland Storage Capacity Total 20,000 sqm of Centos owned Warehouse Depot Capacity Total 6,000 TEUs Years in Operation since Year

6 Facilities Overview ( CENTOS Hamina 2-2 ) CENTOS Hamina, Finland (2-2) From Hamina to => Kotka, Finland : 22 km => Vaalimaa, Finland : 35 km => Kouvola, Finland : 51 km => Saint Petersburg : 230 km => Moscow, Russia : 942 km 6

7 Facilities Overview ( CENTOS Germany 1-2 ) CENTOS Hamburg, GERMANY (1-2) Section Description Location Hamburg, Germany (32 Km from Hamburg Terminal) Capacity Total : 42,000 sqm of Centos Owned Warehouse Container Yard Total : 125,000 sqm of Centos Owned Land Trucks quantity 65 Trucks ( Owned + Chartered) Years in Operation since Year 1998 Feature Customs Bonded Warehouse 7

8 Facilities Overview ( CENTOS Germany 2-2 ) CENTOS Hamburg, GERMANY (2-2) 8

9 Facilities Overview ( CENTOS Moscow 1-2 ) CENTOS Moscow, RUSSIA (1-2) Section Description Location Dorokhovo, Ruza city, Moscow region. (86 km from M KAD) Storage Capacity New Building: 65,000 sqm, Old Building : 10,995 sqm (Rented) Container Yard Total 40,000 sqm of Centos CY Parking Area / CY 34,000 sqm, 300 FEUs capacity Gate qty 73 gates (loading/unloading) Years in Operation since Year

10 Facilities Overview ( CENTOS Moscow 2-2 ) CENTOS Moscow, RUSSIA (2-2) 10

11 Facilities Overview ( CENTOS St.Petersburg 1-2 ) CENTOS St.Petersburg, RUSSIA (1-2) Section Description Location 8.Polsilkovaya street, Pashollok (13.7 km from Saint Petersburg Terminal) Storage Capacity W/H space: 15,429 sqm (Rented) CY Capacity TEUs Floor load, Ceiling Height 7 tons/sqm, 10.5 m Gate qty 14 gates (loading/unloading) Years in Operation since Year

12 Facilities Overview ( CENTOS St.Petersburg 2-2 ) CENTOS St.Petersburg, RUSSIA (2-2) 13.7 km from STB Port Location : 6 KM from City center on crossroad Federal Highway M10(MOSCOW-SPB) 9 KM From Airport (Pulkovo) 13.7 KM From St.Petersburg trade PORT KM From Ugolnaya Gavan( Harbour) Address: Dom 8.Polsilkovaya street, Pashollok Shushari, St.Petersburg,Russia Contact Points: Mr. Shawn Lee M.P./ , Office/ shawn.lee@centospeters.com [CONTAINER Yard Area] Storage space 2,200 TEUs Railway in W/H area: 3 ways, 2.5 km Equipments: 2 reach stackers Nearby railway station Kupchino 12

13 Facilities Overview ( CENTOS Kiev 1-2 ) CENTOS Kiev, Ukraine (1-2) Section Description Location 31 km from Kiev center Storage Capacity W/H space: 15,429 sqm, Office space : 1,216 sqm (Rented) Floor load, Ceiling Height 7 tons/sqm, 12 m Gate qty 14 gates (loading/unloading) Years in Operation since Year

14 Facilities Overview ( CENTOS Kiev 2-2 ) CENTOS Kiev, Ukraine (2-2) The facility is just 31 km from Kiev with direct access from the major E-40 / M-06 highway. The only complex on E-40 (Zhytomir) highway With roundabout next to it. Through close to Kiev, it is far enough outside the city to be economical and avoid heavy urban traffic. Warehouse constructed to a class A warehouse Standard and offers operational efficiencies that order facilities cannot. Центральна та Західна Європа 14

15 Management Summary - Overview - TQL/ Logistics Process - Logistics Scheme - Competitive Advantages of CENTOS

16 Management Summary - Overview Overview Looking back at the performance of Europe & CIS Region over the last 15 years, Logistics service is experiencing a dynamic growth in terms of trading volume and we are as a matter of fact proud that we have provided the logistics service for customers during the period of such growth. Of course this period for Customers was far from easy, and it was an equally challenging task for us to adapt to dynamic changes in politic situations, a rapid increase of sales volumes as well as the end of the month spot volume handling. However, we believe we have proved that we have managed to provide the following for Customers: While we were providing total warehouse logistics services for customers, we realized the importance of Logistics theory. Additionally, understanding, experiencing and improving our service from real-life situations was even more important in the European market especially for the CIS operation. After 15 years of handling experience for customers therefore, we are still ready as ever to face all the new challenges and unpredictable situations that may crop up. CENTOS can only provide LOYAL and diligent service to customer and we must admit we proudly use the word LOYAL as it stems not from one day's of service but after providing. High on time dispatch ratio, but Minimum dispatch Error 6 Sigma Providing/improving warehouse service/good dispatch solutions after discussing with Customers front staff; Immediate action/responsive and responsible problem solving. A 24 hours/day direct communication channel between Customers and CENTOS operation team Flexible Warehouse operations catering for Customers sales managers' needs; No warehouse fee increase after contract, a service which included the high warehousing market price, labor costs and demand years.

17 Management Summary - Current Logistics scheme Our point of view, baring in mind the changes in the current Logistics scheme We believe that the current WH as well as the operation which is provided by CENTOS has reached a steadily reasonable level. This is not only limited to WH charges but also on time dispatch/delivery as well as the system integration between CUSTOMERS & CENTOS. Allow us however to express our concern about future developments in the logistics operations. Logistics is the final step in sales process and can affect sales volume if logistics are problematic. Establishing a new partnership requires time for both parties to understand each other and obviously, cost will be an issue, apart from countable fees such as stock moving, system set up and consulting cost. Unfortunately, one may not possible to predict future sales and additional costs as the expenditure level will only be decided by Customers future partners' willingness and flexibility. Here is brief consideration factor in case of having partnership with Global Company in general. Union interruptions which can lead to working hours control as well as Union action; Hierarchy structure of communication channel; Long time requirement in system error correction as correction is required from the main server; Security and confidential information breaches as a global logistics operator can be involved in business activities and relationships with Customer's competitors in the market; Shared warehouse space with goods from competitors; Insurance claims based on weight rule instead of actual price; Request for changes in the initial contract and conditions after building a dominant market share;

18 Management Summary - Competitive Advantages of CENTOS (1-2) ITEM CENTOS Other Warehouse Warehouse rent tariff transparency & steady management In the case of Centos, we started warehouse construction in cooperation with a Western investor so that we can provide a steady and competitive rent tariff for our customers which is based on the following mutual agreement with the investor: Transparency in the calculation of the total incurred cost Reasonable tariff setting on a long term basis In case of a market downturn, the fixed long term contract may look disadvantageous for our customer, however: vice versa Logistics providers have signed contracts with already existing warehouses rather than constructing their own warehouse. However, due to limited contract term period between final user and logistics provider, as well as the burden from the high deposit of a long term lease, logistics providers have signed contracts with for short periods. Obviously, they are not able to provide steady contract terms to the final user. Handling Fee Competitiveness During the last years of operation for various valuable customers, we have changed our organisational structure to meet customers needs. In fact we have minimised the management team to confirm with the Customers communication channels while increasing numbers of experienced workers were hired. As a result, we were be able to maximise handling hours by developing an IT management system as well as a rapid internal decision making channel. At the same time, CENTOS is offering a competitive package to front line workers resulting to a low job turnover ratio. We calculated that we are able to hire 6 handymen when we reduce one office manager baring in mind that experienced handymen can work 150% more efficiently than newly employed staff. The hierarchy structure of the management system requires long decision making and/or trouble shooting time while other Western or Asian logistics providers suffer high manpower cost due to providing for the cost of living of their representatives. As a result the handling fee may increase accordingly. Experienced Full Load Driver and Supervisor Trucks are generally used for many years and as a consequence often are faced with stability and centre of gravity problems during cargo loading. Therefore a carefully thought of loading plan is required before loading. Experienced CENTOS F/L drivers & supervisors will be dealing with loading on the truck. According to Loading plan simply without deep consideration for customers inconvenient matters.

19 Management Summary - Competitive Advantages of CENTOS (2-2) ITEM CENTOS Other Warehouse Customer Service CENTOS optimum target is to add its contribution to maximising Customers sales increases we are therefore ready to accept comments from Dealers. An example is that we accept same day order dispatch and/or arranging loading even when there was no booking in advance. Order dispatch based on the deadline which is stipulated in the contract. Customers could be subject to either declining the order or being requested for an additional surcharge Night time or weekend operation Human Power Excellence IT system stability Flexibility in additional charge and claim Flexible working hours based on customer needs No strike has taken place during the last 15 years of Logistics service for over all CENTOS s organizations. The IT system established & currently provides reliable operations. CENTOS WMS System is connected with Customers system by EDI. Thus, CENTOS many experts is able to launch the system in any location immediately without any modification in Customers & CENTOS side. Customer oriented flexibility in claim handling as well as taking under account Customers requests Denying operations is possible even if there was a booking and especially operations may not be possible during golden holiday. Strike on every April and high job turnover ratio which affects operational continuity System development is required with a corresponding development cost. Possible glitches during the system testing period can be an additional issue. Handling based on contract as well as insurance policy. Communication during out of office hours, and Trouble shooting The communication channel is open 24 hours a day/ 7 days a week. The final decision maker is ready to communicate, discuss and implement solutions in anytime for any issues whatsoever. Possible but only on a case by case basis. Decision to be made after internal discussion plus contract term reviewing. Troubleshooting may therefore require much long periods. Database The accumulated database for Customers is offering itemised, seasonal, customer characteristics views and categorisations which are being used for customer service. Goods dispatch based on loading instructions and own manual

20 Continuous Improvement - Success of Service Level Agreement - Infrastructure Improvement plan - Operational Improvement plan - Environmental friendly program - Pricing strategy

21 Continuous improvement (CI) Success of Service Level Agreement CENTOS has implemented service Level Management system for management of Quality of the Service for Customers goods. Service Level Management involves comparing actual performance with pre-defined expectations, determining appropriate actions, and producing meaningful reports. Implementation of Service Level Agreement will describes the core service provided to customers and details both parties responsibilities in making sure that every concept is met in accordance to SLA. However, by considering market situation where dynamic changes- a rapid increase of sales volume as well as the end of the month spot volume handling situation, binding all scenarios in agreement may not be possible which may lead less flexible in term of our operation process. Specified Service Level Objectives Identifying SLA Target Incentive & Penalty SLA Control Team How are to be delivered KPI WH Operator Customer WH Operator & Customer Monitoring & Measuring Problem Management DB Development WMS Maximise Effective use of Space, Equipment, Labour Management Efficiency Increase Productivity Based on Performance Building a Service Catalogue Service Level improvement program Customer Duties & Responsibilities Security: Confidentiality of Information Continuous Improvement Flexible Operation Process Fast Reliable Service Customer Satisfaction Customer Win / Win Partnership 21

22 Continuous improvement (CI) Operational Improvement Plan We currently have a plan for a Continuous Improvement Coordinator to join our organization. Facilitation of CI and Lean projects across the site and responsible for managing and continually improving logistics processes. This role is highly proactive and will focus heavily on ensuring 'right first time' i.e. preventing faults from happening and making sure that 'slip through' faults are not repeated. Control of records to ensure that future controls are relevant, completed and stored for trace book and future reference. Stimulating, encouraging and coaching plant operators to devise process and logistics improvements through face to face. Lead, facilitate and support the implementation of a CI environment. Interfacing with all functional groups throughout the business to apply best practices and execute change that links continuous improvement opportunities with short-term tactical and long-term strategic initiatives. Key Accountabilities for CI team Responsible for implementing a sustainable continuous improvement culture through the engagement of project teams to improve efficiency, quality and process. Lead CI project teams directed at strategic process or quality projects within the enterprise. Analyses business processes using established continuous improvement and Lean tools to optimize process, people and machine performance and establish benchmarks, tracking systems, timelines, and procedures for implementation of best practices. Engagement with and relationship management of external stakeholders to support supply chain process. Examples of Continuous Improvement Cleanness and tidiness, self discipline, sorting, systematic placing. Deployment of experience employees and management. Job audits detect opportunities to improve productivity, quality and safety. Employee suggestion program. Improvement is a never-ending pursuit of perfection. 22

23 Contact

24 Contact Company Name CENTOS Hamburg CENTOS Hamina CENTOS Moscow CENTOS Kiev Address CENTOS GmbH Karl-Ferdinand-Braun-str.16, Winsen (Luhe), Germany Tel: Fax: Centos Central Logistics Oy Satamantie 4, Hamina, Finland Tel: Fax: LLC Centos Central Logistics Russia, , Moscow region, Ruza area, v. Schelkovka, Alkonovskaya str., 1 Tel: Fax: CENTOS Kiev 1A apt, Lybidska Street, Kiev, Ukraine Tel.: Fax: Managing Director Mr. Jae Hyung Park M.P jhpark@centos.com Mr. Tommi Laaksonen M.P Ms. Hee Won Kim M.P Ms. Anna Gulak M.P anna.gulak@ centoskiev.com Administration & Financing Director Mr. Michael Schwarz M.P mschwarz@centos.com Ms. Leena Kokkomaki M.P Ms. Novikova Violetta M.P Ms. Irina Sirotenko M.P Sales Director Mr. Stephan Menzel M.P smenzel@centos.com Ms. Satu Hannola M.P docs@centosfinland.com Mr. Alexander Kim M.P Mr. Volodymyr Pleshakov M.P Handling Volume for Year