Collaborative Strategies Integration of the Supply Chain Integrated Logistics

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1 Slide Library 11/04/2014 p. 1

2 Collaborative Strategies Integration of the Supply Chain Integrated Logistics Florian Paugam Vice President Sales & Marketing April 2 nd, 2014

3 A Snap Shot of the Global Logistics Market Growing Demand for End-to-End Services Globalized and fragmented supply chains get predominant in the market Market volatility drives the need for synchronization that results in end-to-end visibility Customers tend to source logistics management to avoid technology investments and learning curve Industry wants to access best practices, cost variabilization and accelerate time-tovalue Supply chains are progressively following end-to-end industry/company specific standards 11/04/2014 p. 3

4 Integrated Logistics Covers All Transport and Service Modes Along Customers Supply Chain Inbound Logistics Supplier Manufacturer Reverse Logistics Receiving Customer Outbound Logistics End Consumer Integrated Logistics End-to-end Management across the supply chain True one-stop shop and integrated global IT solution Compliance & Documents Sea Freight Air Freight Road & Rail Warehousing & Distribution Last Mile / Integrators 11/04/2014 p. 4

5 Reducing Costs and Maximising Service Levels Focus Areas of Cost Optimization Transport Inventory Import Duty, Customs & Taxes Warehousing Rates Capital expenditure Duty on Transport Equipment capacity Modes & Financing Broker fees Storage space Equipment Obsolescence Value Added Tax Blue collar utilization Damage Documentation Special handling Perishability Management and Information Systems 11/04/2014 p. 5

6 Integrated Logistics Creates Additional Value through End-to- End Management End-to-End Managed end-to-end solution integrating all transport and service modes across the supply chain Visibility Visibility and comprehensive information Monitoring Performance management and cost control One-face Single point of contact Technology Integrated global IT solution including centralized billing Synergy Synergies from Logistics Control Centre environment 11/04/2014 p. 6

7 Framework for Supply Chain Diagnostic 11/04/2014 p. 7

8 Industry Specific Solutions Address Customer Requirements Aerospace Automotive FMCG High-Tech Industrials Oil & Gas Pharmaceuticals Retail 11/04/2014 p. 8

9 Pain Points That Drive A Need for Integrated Logistics FMCG Agriculturals Chemicals Industrials 5 5 Raw & Pack Materials (Fats, Oils, Plastic, Films, Flavourings, Ingredients) 5 Mega Brands Speciality Brands Private Labels 6 Global Brand Owners Wholesalers Retailers 2nd Tier 1st Tier Brands Intermediaries Low upstream control 5 Packaging optimisation not considered 2 Pressure to reduce cost and capital 6 Cost too high / distribution not agile enough 3 Capacity gaps in emerging regions 4 Poor demand forecast / supply performance 11/04/2014 p. 9

10 FMCG Specific Solutions Achieve Significant Improvements Identified Pain Points Low upstream control Pressure to reduce cost and capital Capacity gaps in emerging regions Poor demand forecast / supply performance Packaging optimisation not considered Cost too high / distribution not agile enough Specific Solutions Vertical integration and management of suppliers and inbound deliveries Reengineering of supply lanes Procurement services to assess and develop service providers Inventories close to consuming factory (=vendor parks) Packaging and payload projects Differentiation fast vs. cost effective / horizontal collaboration 11/04/2014 p. 10

11 Information Systems Provides a Service-Oriented Architecture Partner Application Layer Customer ERP Customer OMS Customer CRM 3PL TMS Master Data Other Systems 3PL WMS KN Application Layer Transport Mgmt. Services Order Mgmt. Services Inventory Opt. Services Whse Mgmt. Services Master Data Services Reporting Visibility The Integrated Logistics enabler approach is operated as a fast track plug-in to existing customer systems using Global Enterprise Service Bus. Scalable and flexible architecture allows for seamless template integration with multiple external system and data sources. 11/04/2014 p. 11

12 Implementation Management with Dedicated Teams Follows Proven Methodology to Set-Up Your Business Migration Go-Live & Hand-Over Post-Go-Live Support Hand-Over & Kick-off Project Setup Business Requirement Gathering Process-, Solution and IT- Architecture Design Operational Setup & Trainings User Acceptance & System Integration Testing Operational Setup Interface & IT-Enabler Configuration 11/04/2014 p. 12

13 The Think Big, Start Small and Scale Fast Approach Drives Improvement Think BIG Start small Scale fast Organisational support Scope, actual metrics and competitive requirements Business case Verification of electronic data provision and standard processes Sustainable proto-version with reduced functionality and integration Deploy Value Adding Projects (low dependency on additional software) Learning / adaptations Functional enhancements, if required Deployment to full scope sequenced per market, factory or supplier Extended Value Adding Projects Approval to proceed First success propelling further changes Improvements as envisaged 11/04/2014 p. 13

14 Sustainable Competitive Advantage Cumulatively Encompasses All Features Customized and modular approach Gain sharing models Transparency & Control Continuous improvement and innovation Zero disconnect in customer engagement cycle Management and integration services Integrated plan-build-run phases Independent from execution services modes Capabilities in business process (out)-sourcing field Strong Change Management Industry Expertise Experience, hands-on, scalability and speed 11/04/2014 p. 14

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