What don t you know about your international supply chain?

Transcription

1 What don t you know about your international supply chain? Presentation by Yusen Logistics (UK) CILT January 2016

2 Dr Richard Gibson Joined Yusen in 2014 Responsibility for our activities in Control Tower International Supply Chain Management Contact details +44 (0)

3 Scott Shergold Joined Yusen in 2003 Responsibility for our activities in International Supply Chain Management Contact details +44 (0)

4 Yusen Asset Light Logistics - Global to Local ISCM team based in London Handling 59,661 FEUs pa into the EU Operating in London & Hamburg Colin Eeles Business Development Manager +44 (0) colin.eeles@eu.yusen-logistics.com 1.6m pallets pa Operating locations in UK, Poland, Italy, France & Spain Frank Packman Business Development Manager Frank.Packman@uk.yusen-logistics.com

5 Agenda What is a typical international supply chain? Relevant legislation Best in class purchasing and consolidation approaches Data management and supply chain visibility What to do when it lands? examples of best practice Risks to be aware of Futurology staying ahead of international trade legislation and evolving sourcing patterns

6 What is a typical international supply chain?

7 Relevant legislation UCC SOLAS CPC

8 Roles & responsibilities

9 Best in class purchasing & consolidation approaches Considerations when procuring freight Timing of ITT Duration of contract NVO v BCO Direct carrier v NVO Lead times Mergers / Consortia CIPS Consolidation Location of CFS Cost to vendor / buyer Role & activity undertaken Managing inventory flow

10 Data management and supply chain visibility The right data, at the right time at the right level are paramount for making informed decisions and ensuring supply chain agility What are the best in class measures?

11 What to do when it lands?

12 The Client European Retailer Company Development Innovative retail model - sale of promotional products for a limited period Limited sales growth and flat profit margins for over 5 years Business Locations 700 stores and 20,000 concession outlets in Germany, plus 300 stores across Europe Seven distribution centres across Germany Annual Revenue EUR 3.5 Billion (Approx. US$ 4.3 Billion) Annual Volume 7,000 FEU

13 The Challenge Lack of Inventory Planning Requirement to rapidly turnover stock To achieve margins Capitalise on consumer trends Inefficient Operation Processes Antiquated processes and technology used by inhouse team Lack of Inbound Visibility Delivery schedules independent of retail promotions 20% of cargoes arriving up to a week late Lost sales and unsold inventory Euros 5 million pa Stock delivered to wrong DCs costing Euros 200,000 pa Difficult to plan shifts for DC receiving - Overstaffed DC intake team Destination milestones unrecorded

14 The Solution Yusen Logistics took over management of destination requirements Streamlining the inbound operation Improving performance Enhanced existing supply chain system Enabling shipment priority to be managed DC delivery mode management road, rail or barge Container DC routing Scheduled container deliveries, allowing shift patterns to be planned Exception management tool Destination milestones captured Implementation of standard operating procedures Establishment of Key Performance Indicators

15 The Benefits Increased Product Availability Communication via Griffin, Centralising Correspondence 7% Haulage Savings Greater Use of Rail and Barge Visibility Enhanced Inbound Planning, Reducing Intake Team 500, ,000

16 The Benefits Operational Efficiencies Enhanced Cross Docking Saving in Handling Costs 75,000 Technology Supply chain Technology Now Solely Catered for by Yusen Logistics Management Reporting Implementation of KPIs, enabling effective management of Yusen Logistics, on carriage partner and DC intake team On-time ISF (2 day before ETD) On-time ASN (3 working days after ETD) 99% 99% On-time Doc Upload (5 working days prior to ETA) On-time eci (4 working days after ETD) 99% 98%

17 Risks to be aware of Yusen Logistics

18 Futurology Trade legislation TPP China Brexit Evolving sourcing patterns China : cost vs quality Low cost labour Developing economies Infrastructure challenges Near sourcing Compliance / Capacity Cyber threats

19 Finale.. Think together Move together Success together

20 Thank you for your time