CEVA Making Business Flow Presentation for MDBC Jacques Hartman Director Contract, Malaysia & Singapore November 14 th, 2014 Kuala Lumpur, Malaysia
CEVA Making business flow Through our integrated end-to-end logistics solutions, in-depth industry knowledge and relentless focus on Operational Excellence, CEVA brings lasting value to our customers global supply chain. We anticipate your needs and help you drive business growth. At every link in the supply chain, we help make business flow. 2
Our vision Our vision is to be the most admiredcompany in the supply chain industry 3
Our credo: Impeccable Execution We will be recognized by our customers as delivering what we promisewith consistent, predictable processes and service levels We will not tolerate mediocrity in touch points with our customers Impeccable Executionmust become real at all levels: Global, Regional, Country and Functions. 4
Increased complexity of the global supply chain Early 2000s supply chain Globalization driving increasing complexity Component standardization allows production to be spread globally to optimize costs Multi-country sourcing with consolidation hubs before shipping to end customers Supply chain control and visibility are critical Compliance to regulations throughout the supply chain Today s supply chain REGIONAL 14 November 2014 REGIONAL SUPPLIER CUSTOMER 5
CEVA in a nutshell Revenue: 7.2 billion Employees: over 49,000 Locations: over 1,000 Presence: in over 160 countries Combined storage space: more than 9million sqm Figures for Year Ended, 31 December 2012 6
Integrated and balanced regional structure Europe and Rest of World Revenue: 41% Employees: 39% Americas Asia Pacific Revenue: 30% Employees: 38% Revenue: 29% Employees: 23% Figures as of 31 December 2012 7
Balanced sector portfolio Other 5% Energy 7% Automotive 28% Industrial 17% Consumer and Retail 23% Technology 20% 8
Strong and diversified global customer base 9
CEVA in Asia Pacific Overview $2.3 billion revenue in 2013 +80 CEVA offices across 14 countries Close to 300 sites in the region Approx10,000 employees and 11,000 JV employees Control Towers Supply Chain Solutions control towers in Singapore and Hong Kong Asia Pacific Center of Excellence in Singapore Figures for period ending 31 December 2013 10
India AP Footprint Freight China, HK& Taiwan 48 sites 1,228,639 sqm 10,847 staff Freight 12 sites 1,265,161sqm 131 staff 5 sites 30,000 sqm 55 staff Freight Japan 2 sites 3,400 sqm 9 staff 18 sites 93,900 sqm 1,382 staff 14 sites 5,288 sqm 356 staff Freight Korea Thailand Freight 6 sites 23,661 sqm 13 staff 3 sites 1,586 sqm 96 staff 36 sites 1,184,679 sqm 2,815 staff Malaysia 10 sites 93,620 sqm 818 staff Singapore 8 sites 131,320 sqm 656 staff 2 sites 500 sqm 219 staff Freight 4 sites 1,928 sqm 227 staff Freight 2 sites 7,900 sqm 188 staff Australia& New Zealand 62 sites 692,992 sqm 1,247 staff Freight 11 sites 70,291 sqm 340 staff 1 site 2,000 sqm 10 staff 10 sites 38,598 sqm 91 staff 28 sites 105,628 sqm 1,155 staff Freight Vietnam 2 sites 569 sqm 33 staff Philippines Freight 8 sites 700 sqm 70 staff Freight Indonesia 5 sites 2,322 sqm 78 staff 11
CEVA Singapore & Malaysia SINGAPORE Malaysia Commencement Year 1973 1976 Employees 844 1,045 Distribution Centers 10 DC s, 139,220 sqm 14 DC s, 95,548 sqm (MY) Air freight tonnage in 2013 33,709 tons 24,350 tons Ocean freight TEU in 2013 21,178 TEUs 12,784 TEU s Service Awards ISO 9001:2000, AS9120A, TAPA, C-TPAT, Secure Trade Partnership, Global Kaizen Award 2011 & Regional Kaizen Award 2014, Regional ZDS Award 12
Singapore & Malaysia Customers Technology Automotive Consumer & Retail Schaeffler Energy Industrial 13
Our integrated end-to-end service portfolio Manufacturing support Inbound Warehousing & Distribution Centers Outbound Aftermarket Services FinalMile Solution Receiptand management of raw materials and products at source Control Re-packaging Value-added services Multi-modal capabilities Time definite services Customs brokerage Web enabled tracking solutions Dedicated and shared warehousing Distribution network centers Value-added services Dedicated and/or shared transportation CEVA Ground distribution services Transportation network management Spare parts warehousing Spareparts distribution Returns Repairs Reverse logistics Callcenter services Home delivery for finished goods Oneand two person home delivery After sales set up Installation Reverse logistics Integrated supply chain management 14
Our Freight Management capabilities Air Freight Ocean Freight Value Added Multi-Modal Freight Management Services Ground Customs 15
Our Contract capabilities Warehousing Value Add Warehousing, Value Add, Distribution & Reverse Distribution Reverse & Service 16
CEVA Contract Full Range of Services INFORMATION and CASH FLOW SUPPLIERS MANUFACTURING DISTRIBUTION CENTRE CUSTOMERS Inbound Distribution Centre Outbound Reverse Transportation Management 17
CEVA Contract Full Range of Services Inbound Distribution Centre Outbound Reverse Transportation Management Inbound Inbound Haulage Customs Brokerage Vendor Managed Inventory (VMI) Quality Inspection Programs Sequencing / Line Feeding Procurement (Supplier and P.O. Management) Forecasting Communication of schedules Compliance and exception management Milestone updates 18
CEVA Contract Full Range of Services Inbound Distribution Centre Outbound Reverse Transportation Management Distribution Center Various warehouse environments Dedicated / Shared / Bonded Cross-docking, incl. consolidation and deconsolidation programs Inbound / storage / picking / outbound / documentation Forward Stock Locations Product Completion Customer Configuration (Sub)Assembly Value Added (Re)Packing (Re)Stacking Value Added Services Order management Inventory management Quality Inspections Localisation / Software Updates (Re)Labeling Kitting Customs Management Customer Service / Call Center 19
CEVA Contract Full Range of Services Inbound Distribution Centre Outbound Reverse Transportation Management Outbound Transportation Distribution Courier / Parcels Less than truck loads / Groupage Semi-truck loads / Part loads Full loads Carrier Neutral Management Sourcing & Procurement Planning & Execution Performance Reporting Freight Audit & Payment Customs Management Returnable Packaging Management 20
CEVA Contract Full Range of Services Inbound Distribution Centre Outbound Reverse Transportation Management Reverse Call Center Product Failure Assessment Return Material Authorization (RMA) Management Transportation Customs Management Asset recovery and replacement parts fulfillment Repair Services Asset Disposal / Reselling Waste Management Customer Service 21
CEVA Contract Full Range of Services Inbound Distribution Centre Outbound Reverse Transportation Management Transportation Management Up-stream and down-stream transportation for high number of daily shipments / orders Multi-modal transportation Ocean, Air, Road, Rail Carrier Neutral Management Sourcing & Procurement Planning & Execution Performance Reporting Freight Audit & Payment Distribution network design 22
Industry sectors we serve We have organized our business to address the specific needs of our focus sectorsand to offer the most appropriate solutions and expertise. Automotive Consumer and Retail Energy Industrial Technology 23
Standard Operating Procedures and Working Instruction Based on scope of work, customer requirements and service level agreement, CEVA creates a solution design and process flows. All key processes, activities, tasks, responsibilities, communication matrix, KPI s, reports, etc. are defined in a Standard Operating Procedure (SOP). On shop floor level, all processes are detailed in individual activities and tasks, which are documented using standard Working Instruction templates. This allows solid training, standardisation of execution and contingency in providing back-up support. 24
Quality Management Our Freight Management and Contract operations worldwide are ISO 9001 certified FM ISO 9001 certification On top, our Contract operations hold a number of various certificationsbased on and compliant with customer and material requirements 89 41 54 Asia Pacific Europe Americas ISO 9001:2008 - Established by the International Organization for Standardization (ISO), recognizes transparent, integrated and standardized quality management across all functions, including commercial, operations and finance - CEVA sites in Austria, Czech Republic, Hungary, Italy, Slovakia Status as of May 2013 Winner of SAI Global Systems Excellence Awards 2011 for Quality Management - Large business, Australia ISO 14001:2004 - Standards for Environmental Management System - CEVA sites in Belgium, Czech Republic, Hungary, Italy, Netherlands, Poland, Slovakia, UK 25
Our LEAN Approach Structured continuous improvement program eliminating 8 types of waste (Over-production, Transportation, Inventory, Waiting, Rework, Motion, Over-processing, Loss of Intellect) Introduced at CEVA in 2004 and being constantly improved since Empowering employees to actively engage in problem solving Robust training program at all levels; e.g. our supervisors are trained in Kaizen(the Japanese term for changing for the better)and use this methodology to solve specific problems in their areas. The LEAN culture is fully embedded and delivering benefits across all CEVA sites around the world Lower costs Higher quality Shorter lead time Eliminating waste (over-processing, inventory, rework, waiting etc.) Effective scheduling and tracking Streamlining processes Standardize work Built in quality Quality focus (performance management) Reducing buffers Reducing batches Reducing cycle times 26
Excellence in Operations: Site Classification Assessment CEVA has one of the most robust site classification systems in the logistics industry allowing us to consistently deliver Operational Excellence across the world With 22 measurable excellence standards, every function within our facilities is evaluated -from Human Resources and Finance to Freight Management and transport Showcase Advanced Operations Excellence progression Applied for each of CEVA s 1,000 sites worldwide Through these metrics we constantly monitor our progress and strengthen our performance driven culture. Where we are: 34 Showcase sites over 480 Basic+ sites Basic Developing Approx. 95% of operations in the logistics industry fall under the Basic and Developing category 27
Showcase Site in Practice 28
Health, Safety and Environmental (HSE) Excellence: Never walk by a problem Ensuring a high level of safety management through global health and safety policies and standards Empowering employees to accept ownership of critical health and safety factors at all levels of the organization Monitoring and analyzing global HSE conditions Systematically measuring and continuously improving. Benefits: Greater on-time service level Fewer claims and product loss Partnership with environmentally forwardthinking supplier Increased employee engagement and shareholder value 29
Security Management Making sure our customers goods and properties are fully secured through deployment of Security Guards, Security Systems (CCTV/IDS/Access Control), Equipment, Policies and Procedures. Global security policy at CEVA with regional and local ownership in place. Secure Warehouse Award - Shanghai Pudong Airport (PVG) Cargo Zone, China, 2013 2012 Safety Award -BP Zhuhai Chemical Company Limited, 2013 China Warehousing Service and Management Innovation Award -China Association of Warehousing and Storage, Shenzhen, 2011 Security related certifications, including: Authorized Economic Operator (AEO) in the Czech Republic, France, Germany, Hugary, Ireland, the Netherlands, Spain and UK Transported Asset Protection Association (TAPA): - CEVA s finished goods hub in Ayutthaya, Thailand - CEVA multi user site near Charles de Gaulle airport, France TAPA TSR 2008 validation for CEVA Ground in Mainland China TSA Transportation Security Administration, North America FAST Fast And Secure Trade, North America STP Secure Trade Partnership, Singapore 30
Main reasons for Outsourcing Focus on Key Competencies (Product Development, Manufacturing, Marketing & Sales) Reduction of Costs Centralizing and Reducing Inventory Optimizing entire Supply Chain Making fixed costs variable Reduction of capital employed Superior Know-how LSP Reduced cycle times and lead times Improved KPI s Improved Service Levels cost reduction only has a short-term financial effect whereas superior logistics services offer a long-term strategic effect and strong impact on company performance and customer satisfaction!!! 31
Why CEVA? - Increased speed to market - Improved customer satisfaction Revenue Enhancement - Customer service enhancements - Increased quality availability Profitability Enhancement - Operational efficiencies - Process enhancement Operating Cost Reduction - Waste reduction - Operational procurement savings Shareholder Value Enhancement - Reduced Cash to Cash cycle time - Inventory reductions Working Capital Reduction - Reduced cycle times - Capital asset transfer Invested Capital Reduction - Enhanced asset utilization - Capital procurement savings Fixed Capital Reduction 32
Why CEVA? Implement your business strategy on a global scale Keep your promises to your customers Reduce your total supply chain costs Global presence with local expertise Control and visibility of total supply chain Order and supplier management Full suite of services everywhere Stable and replicable operational processes Excellence culture Robust technology and infrastructure Easy to do business with Systematic elimination of waste (LEAN) Application of best practices Optimization of supply chains to reduce costs Lower inventories through better control and visibility Support your commitment to sustainable development Reduction of carbon footprint Compliance to regulations throughout the supply chain Safe and secure operations 33
Safety Induction Before going into the warehouse, please take note of the below rules for your safety: Always wear safety shoes or tiptoes Always wear safety belt or vest Walk as much as possible in walkways Stay close to the group Watch out for Material Handling Equipment (MHE) and Trucks In case of an emergency, follow instructions of the Emergency Response Team Don t use the elevators for an evacuation Proceed to the nearest Emergency Exit Walk back to the Assembly Area, at the front of the guard house 34
CDC Warehouse Layout Johnson & Johnson Waste Storage Inbound J&J Office DG Room Sample Test Co-packing FGX Storage FGL Storage RDC Storage Co-packing Storage Outbound J&J Destruction Room 35