Welcome. Introduction to Hotel Logistics

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1 Welcome Introduction to Hotel Logistics CILT Oct 16 th, 2008 By Lucy Lei Kuehne + Nagel Pte Ltd

2 Agenda 1. Trend in Luxury Hospitality Industry 2. Unique about Hotel Logistics 3. Hotel Logistics Products 4. Case Study- Global Amenity Distribution 5. Q & A

3 Trend in Luxury Hospitality Industry Stake holders take control of supply chain Business model for multiple openings Wows to Sun & Sand destinations Mega integrated projects Hotel operators global brand standard Amenity supply move to lean logistics 3PL / 4PL plays more significant role Move towards green logistics

4 Agenda 1. Trend in Luxury Hospitality Industry 2. Unique about Hotel Logistics 3. Hotel Logistics Products 4. Case Study- Global Amenity Distribution 5. Q & A

5 Unique Feature of Hotel Logistics Logistics & Vertical Industry Logistics Hotel Logistics Multiple stakeholders Defined Project Period Complexity Solution & consultation Combination of old & new transport mode Service reliability & knowledge Project management Heavy opportunity cost of failure supply chain

6 Mode of Transportation

7 Mode of Transportation

8 Mode of Transportation the Final Miles

9 Agenda Trend in Luxury Hospitality Industry Unique about Hotel Logistics Hotel Logistics Products Case Study- Global Amenity Distribution Q&A

10 Hotel Logistics Products Pre-opening Logistics Mock-up room Logistics Post-opening Logistics

11 Pre-opening logistics FF&E (Furniture, Fixture & Equipment) OS&E (Operating Supply & Equipment) GS&E (Gaming Supply & equipment)

12 FF&E and OS&E Logistics Customs regulations Duties and taxes Hotel site survey VM and POM Freight collection & consolidation Expediting Project warehouse Delivery, installation and recycling Project management

13 Mock up room logistics Full coordination of all mock-up room shipments from cargo collection in origin until timely positioning of all items in the show room. Typical installation services (always outsourced to best in class) include: Co-ordination of carpet installation Delivery and fitting curtains Installation of beds, fitting of headboards, case goods and upholstery Positioning TVs, lamps and accessories Hanging mirrors and artwork Removing packing materials / waste from site Handover to client

14

15 Post Opening Logistics F&B and Perishable Logistics Corporate Brand Standard roll out Global Amenity Distribution

16 Agenda Trend in Luxury Hospitality Industry Unique about Hotel Logistics Hotel Logistics Products Case Study- Global Amenity Distribution Q&A

17 Case Study Global Amenity Distribution Solution

18 Case Study Global Amenity Distribution Solution Regional Distribution Centers (RDC) Hannover (Germany ), Birmingham (UK), Shenzhen, Kuala Lumpur, Sydney, Dubai Europe 72 hour delivery service, majority reached within less than 48 hours Australia 96 hour delivery service across the nation UAE same day delivery

19 Behind the scenes of the web shop (1/2) Vendor Managed Inventory Model (VMI) Electronic Data Interchange (EDI) on very sophisticated level Consumption forecast of all properties Production plan in origin and shipping schedule to all RDC s by sea and air Minimum stock level assessment per stock keeping unit Kuehne + Nagel facilitates the web shop and hence provide sales channel

20 Behind the scenes of the web shop (2/2) Kuehne + Nagel provides logistics and supply chain management solutions Shipping from factories to RDC, full online shipment visibility Storage of goods, picking and packing per hotel order, full online inventory visibility Web shop stock levels represent actual inventory in the RDC s Cost savings for hotel by smart ordering

21 Case Study Global Amenity Distribution Solution Advantages for Hotel Reduction of freight costs Reduction of administrational costs Reduction of lead times and fast availability Increased visibility results in better planning Reduction of NOOS (never out of stock)

22 Agenda Trend in Luxury Hospitality Industry Unique about Hotel Logistics Hotel Logistics Products Case Study- Global Amenity Distribution Q&A

23 Thank you very much for your attention! The End For more information, please write to

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