Value added of a Lead Logistics Provider for OEMs and Tier 1 suppliers June 2006, by Eric Postulart

Transcription

1 Value added of a Lead Logistics Provider for OEMs and Tier 1 suppliers June 2006, by Eric Postulart

2 Ewals Cargo Care History we have just started Ewals Cargo Care, 100 years 2006 Integration Ewals and Cargo Care. Result: a wide range of logistic services Introduction MEGA trailer and railer 100 m³ transport units that have become industry standard 1995 Transports to UK Developed into Cargo Care 2005 Start Ewals Global Freight Forwarding Start Lead Logistics Providership (e-lc) Full service logistic provider Start transport to Germany Start unaccompanied transports UK Receiving various Automotive Carrier Awards for out- Standing service Ewals founded Expanding services to Scandinavia, Switzerland, Austria, France, Italy & UK 1906 Time

3 Ewals Cargo Care Figures Employees Sites Countries Turnover million Warehouse space Loading units MEGA trailers Swapbodies/containers Dedicated Tractors sqm

4 Ewals Cargo Care Core business Move Right time, right place Store Inventory as added value Manage Integrating, monitoring and optimising Central Support Information and communication management Process and quality management Fleet management Human resources management

5 Value added of a Lead Logistics Provider for OEMs and Tier 1 suppliers June 2006, by Eric Postulart

6 Lead Logistics Provider Common supply chain problems Many supply chains face following difficulties...with these effects Poor predictability regarding delivery times and specifications. High inventories Unsatisfactory material availability combined with unleveled flows Unbalanced workloads Complex transportation network, due to: - a widely distributed supply base - high number of different carriers - missing utilisation of existing synergies High transport costs

7 Lead Logistics Provider Why do OEM/Tier 1 select a LLP Product engineering and development of systems Efficient production and assembly Material requirement planning and procurement Managing inbound material flow

8 Lead Logistics Provider Roles and responsibility No 3PL is good in all service area s => value added of LLP Information flow Product flow Reverse flow Activity by 3PL Coordination Supply Chain Supplier Supply planning Customer Demand planning Continuous improvements Lead Logistics Provider Single point of contact Direct collection or via X-dock Multi modal Transport In-house and local Logistics Suppliers Production/dealers

9 Lead Logistics Provider Services Excellent network design Pro-active network operation Freight payment management KPI & Continuous improvements

10 Excellent network design What to achieve? nly tendering of present processes is not enough anymore ogistics Costs Present situation Single price reduction Business as usual Cont. improvements Network re-design Cont. improvements Time

11 Excellent network design Transport network Alternative set-up : opportunities in service and costs level Dealers Suppliers Y dock X- dock Multi-leg route planning: synergies in collection synergies in delivery Multi-leg route planning: differentiated equipment differentiated carriers Direct Deliveries (FTL) Using strategic X-Dock Milkrun to the plant(s) Milkrun to strategic X-dock Using Local Y-dock Plants Suppliers

12 Excellent network design Transport network Suppliers Y dock Suppliers Y dock Right Routing X dock Right Carrier X dock Plants Plants Right Modality Right Equipment

13 Excellent network design Use of the right carrier Best carrier for the right job High Eur/KG Low Groupage carrier LLP approach Part load Carrier Single trip FTL Carrier Roundtrip FTL Carrier Resources Carrier Forwarder/ Integrator Low flexibility High

14 Pro-active network operation Route and load Planning

15 Pro-active network operation Monitoring Management by exception towards the customer Suppliers Leg Leg Y dock Leg Leg Leg Central Monitoring by the LLP Leg X dock Leg Direct Deliveries (FTL) Using strategic X-Dock Milkrun to the plant(s) Milkrun to strategic X-dock Using Local Y-dock Plants

16 Pro-active network operation Supply chain communication platform Visibility ensuring predictability of parts delivered

17 Freight payment is an opportunity for cost reduction Freight payment management Why Avoid creative invoices of subcontractors Self billing instead of invoice receiving Rate Management Increased accuracy and deviation management Registration to multiple subcontractors Allocation of costs and synergies to multiple plants Reduction in overall administration

18 Continuous improvements Actors Measure processes as input for continuous improvement Carrier evaluation Carrier evaluation Supplier evaluation ommunication 30% Delivery too late 22% Discrep in # of pallets 13% Delivery too late 22% Loading too late 11% Wrong trailer 4% Damaged packaging 2% Communication Transport documents 30% 7% Missing delivery note 11% Discrep # pallets 9% Discrep in # of pallets 13% Straps 18% Loading too late 11% Wrong trailer 4% Damaged packaging 2% Transport documents 7% Missing delivery note 11% Other 4% Label problems 33% Papers 26% Goods not ready 4% Wrong loaded 1% Wrong information 5%

19 Continuous improvements Example Service KPI 100.0% 98.0% Quality 96.0% 94.0% 92.0% 90.0% performance YTD Target , % 98.0% Information 96.0% 94.0% 92.0% 90.0% performance YTD Target , % 98.0% Delivery 96.0% 94.0% 92.0% 90.0% performance YTD Target ,

20 Continuous improvements Example cost and capability KPI 88.0% 86.0% 84.0% Cost per kg 82.0% 80.0% 78.0% 76.0% 74.0% Sep Oct Nov Dec Jan Feb 2,200 Germany - Continent: TL Utilisation pay kg/lm 2,100 2,000 1,900 1,800 1,700 Week 9 Week 35 Week 36 Week 37 Week 38 Week 39 Week 40 Week 41 Week 42 Week 43 Week 44 Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 10 Payload per LM 80.00% 78.00% Collection synergy 76.00% 74.00% 72.00% Sep Oct Nov Dec Jan

21 Continuous improvements Integrated customer planning Support in process development for total optimisation Client Support the the operator (reduce waste) waste) Packaging strategy Define clear & understandable processes Line Line supply supply strategy Storage strategy Supplier collection strategy Waste elimination Transport network strategy LLP Supplier

22 Continuous improvements Integrated customer planning Values are essential for a partnership High Partnership Involvement in development process Mature Development Labour Catalogue Low Low Value added of supplier High Core values Customer-oriented attitude Team attitude Waste elimination attitude

23 KPI & Continuous improvements Integrate other customers Horizontal collaboration generates significant cost savings Waste elimination: Decrease of direct transport cost Intermodal possibilities Joint purchasing Environmental impact Service opportunities: Increased collection frequency Shorter lead-times Less handling, less errors Other LLP n tier suppliers 1st tier suppliers Integrate other customers creating long term synergy for all present and new customers Carriers 4PL Distributors 3PL s OEM Dealers

24 Lead Logistics Provider Conclusion Inventory Balancing flow Speed Quality Challenge your LLP Reliability Predictability Safety to strengthen your Line stops Environmental Direct Costs Overhead impact Supply Chain competitiveness! Risk