CHINA AS A GLOBAL DISTRIBUTION CENTRE Presenter: SVP Per Sonne Sørensen Date: DSV Conference, Amsterdam 24/6-2015

Transcription

1 CHINA AS A GLOBAL DISTRIBUTION CENTRE Presenter: SVP Per Sonne Sørensen Date: DSV Conference, Amsterdam 24/6-2015

2 CONTENT FOSS in brief FOSS in China Our Shanghai Bonded Warehouse Challenges and learnings 2 2

3 THE FOUNDATION OF FOSS In 1956, Nils Foss identified the need for a portable moisture analyser Fast, easy-to-use and dedicated, the Cera-Tester was the first FOSS innovation Matching innovative technology to the demands of particular industries has been the foundation of FOSS ever since 3 INTRODUCTION DEDICATED ANALYTICAL SOLUTIONS FOSS

4 DEDICATED TO THE FOOD & AGRICULTURAL INDUSTRIES 4 INTRODUCTION DEDICATED ANALYTICAL SOLUTIONS FOSS

5 HOW WE ADD VALUE We deliver rapid, reliable and dedicated analytical solutions for routine testing to allow for fast decisions on how to maximise value of production of agricultural food products On-farm Receiving points At-line/In-line production Quality Control Laboratories Finished products Payment, segregation and quality control of raw material Improved predictability and control of manufacturing processes Safe products and compliance with regulatory requirements 5 INTRODUCTION DEDICATED ANALYTICAL SOLUTIONS FOSS

6 SETTING THE GLOBAL BUSINESS STANDARDS - EXAMPLES MilkoScan The de-facto global standard for testing of milk and dairy products Infratec 1241 The de-facto global standard for payment analysis of whole grain for more than 25 years NIRS DS2500 and NIRS DA1650 The latest generation of the most used NIR platform in food and agriculture FT-IR NIR NIR 6 INTRODUCTION DEDICATED ANALYTICAL SOLUTIONS FOSS

7 SETTING THE GLOBAL BUSINESS STANDARDS - EXAMPLES Fossomatic FC The world s first (and leading) somatic cell counter for improved milk quality BactoScan FC+ The world s first automated bacteriological milk analyzer MeatMaster The first X-ray based analytical solution to provide 100% control of meat Flow-cytometry Flow-cytometry X-ray 7 INTRODUCTION DEDICATED ANALYTICAL SOLUTIONS FOSS

8 FOSS KEY FIGURES 100% 98% 231 mill. AAA 18% 63% A 100% family-owned company HQ in Hilleroed, Denmark 98% of turnover outside Denmark A turnover of 231 million EUR AAA-rated by D&B EBITA of 18% of turnover Solvency ratio 63% 8 INTRODUCTION DEDICATED ANALYTICAL SOLUTIONS FOSS

9 FOSS IN CHINA SALES, SERVICE AND PRODUCTION Sales and Service: We sell and service our products in China w. 75 employees Turnover >> 200 MRMB (30 Meuro) 20+% annual growth rate Development and Production: R&D and Production in Suzhou with 200 employees Internal group sales of approx 200 MRMB (30 Meuro) 9 9

10 FOSS ANALYTICAL, SUZHOU FOSS Analytical Co., Suzhou was established in August 2008, in Suzhou Industrial Park, 80 km West of Shanghai New factory opened November 2012: Square meters 200 employees Turnover 2015 Est 200 MRMB 10

11 FOSS ANALYTICAL, SUZHOU PRODUCTS AND FUNCTIONS Complete product range of Chemical Analysis instruments for the global Laboratory segment is now being developed and produced in FOSS Analytical, Suzhou Modules build for NIR-products All functions established to support the global market: Business Innovation Product Innovation. Production and Supply Chain. Customer Service and Support. Regional Demo- and training lab In house repair shop Bonded outbound Warehouse NIR module production 11 40% of everything produced in Suzhou was sold in China

12 THE BONDED WAREHOUSE IN SHANGHAI - OBJECTIVES Objectives: Reduce inbound lead time from 10 to 2 weeks Reduce Net Working Capital. Inventory and goods in transit. 10 MDKK 1,5 MEuro Save distribution cost compared to sending all CA instruments and spare part manufactured in FOSS Analytical, Suzhou to Global European Distribution center. 200 KEuro/Year 12

13 OUR SOLUTION A DSV controlled warehouse in the Bonded Zone by PuDong Airport. Warehouse operated by 3rd. party 2 days in - from pick-up factory to shelf BWH 3 days out - from order to shipment 13

14 GLOBAL DISTRIBUTION OF FOSS SOLUTION FLOW Instruments and Spare parts are delivered from FOSS Analytical in Suzhou to Bonded Warehouse in Shanghai. From BWH to HQ, Sales Subsidiaries, European Distribution Centre and end customers FOSS Companies Present Distributors

15 CHALLENGES AND LEARNINGS It took a lot longer to implement than originally planned. (+1 year) Masterdata not the least HS-codes and material descriptions does require a lot Legal requirements of the Bonded Warehouse compared to other in/out of China Some markets are difficult to serve from China either due to legal/bureaucratic reasons or due to customer s preferences Good overall performance out of the BWH 95%