Automotive News World Conference. Distribution / Logistics Panel: Finding the quickest route to your customer
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1 Distribution / Logistics Panel: Finding the quickest route to your customer Christopher J. Connor President Wallenius Wilhelmsen Logistics Americas
2 Content Premise Market Environment; finished vehicle logistics market Wallenius Wilhelmsen Logistics (WWL) Business Model Reference Case; Nissan & WWL Tuesday, January 16,
3 Some Premise Finished vehicle logistics is critical, but should not be treated as a core competence by vehicle manufacturers. Limited, if any, cooperation exists between vehicle manufacturers (to improve finished vehicle logistics) due to competition. Collaborative solutions to improve vehicle shipment velocity, economics, and utilization of infrastructure are sorely needed. Vehicle manufacturers can choose to outsource physical operations without compromising management oversight or control. Tuesday, January 16,
4 The outbound vehicle logistics market: Market conditions require strategic response Global market competition is forcing OEM cost reductions Production emerging in low cost areas and emerging markets drive sales growth Market globalization Supply chain needs are quickly becoming more complex Sophisticated solutions are needed to keep up with changing environment Speed of change Strategic response needed Hypercompetition High competition drives requirements for low-cost, efficient supply chain management solutions Focus on core competence Competence is vital for meeting supply chain demands Network optimization and focus on KPIs Tuesday, January 16,
5 This is Wallenius Wilhelmsen Logistics: WWL Global Product Offering Ocean Transportation Terminal Services Technical Services Inland Distribution Procurement Deep sea trades Transhipment services Regional trades Pre-shipment prep Cargo prioritization Custom clearance Freight forwarding On Carriage Storage Processing Storage maintenance Mechanical repairs Special Vehicles accessorize In plant handling Procurement of services from suppliers - Multimodal trans - Rail - Truck - Factory yard mgmt Supply Chain Management Management and optimization of the flow from factory to dealer, or parts thereof Involves SCM management of minimum 3 elements in the chain Supported by Systems and Processes Tuesday, January 16,
6 Products and Services: A seamless ocean and land-based network Central and regional offices Terminals Technical sites (VPCs) Technical sites (Plant VPCs) Ocean routes Main ports Inland distribution Tuesday, January 16,
7 This is Wallenius Wilhelmsen Logistics: Scale, Scope, and Competence Operating a global ocean and land-based network of highly effective entities. Average vessels in operation. 3.3 million movements of cars and rolling equipment globally. 1.7 million in ocean transportation 1.6 million in inland transportation Operating 16 Technical Service centers globally processing over 2.2 million auto units and 50k other rolling equipment units. Procurement and distribution management responsibility for over 1.2 million autos to dealers. Offices worldwide: 80 Employees: 3,500 Tuesday, January 16,
8 This is Wallenius Wilhelmsen Logistics: Ambitious environmental objectives A key priority in all services from factory to dealer. Aims to be at the environmental forefront of our industry. Follows ISO international standards for environmental management. Corporate sponsor of WWF, the global conservation organization. E/S Orcelle: First zero-emissions concept car carrier. Tuesday, January 16,
9 This is Wallenius Wilhelmsen Logistics: Value Proposition As an Integrator of services and Aggregator of volumes; WWL will increase velocity, contain economics, and improve utilization of Infrastructure for our customers. Independently owned Multiple customer / manufacture focus High economies of scale Full asset and facility utilization Network optimization optimized routes on basis of cost or service Competence Tuesday, January 16,
10 WWL Global Product Offering: From Factory to Dealer Tuesday, January 16,
11 Reference Case: Nissan & WWL Yesterday Distribution & Auto Service under Nissan Single Customer Focus. Limited economies of scale. Single customer held commercial authority. Distribution & Auto Service held operational authority. Today & beyond Multiple Customer Focus. High economies of scale. Full asset and facility utilization integration into Wallenius Wilhelmsen s network. Wallenius Wilhelmsen holds both commercial and operational authority. Network Optimization / Optimal Routes (i2 Supply Chain Optimization). Aggregation of back-office functions. Access to local and global product expertise. Tuesday, January 16,
12 Reference Case Nissan & WWL: Integration into WWL s network Cartagena Puerto Cabello Vancouver Oxnard/ Port Hueneme Wilmington/ Los Angeles Tacoma Houston Galveston Smyrna Lafayette Canton New Jersey New York Elizabeth Baltimore Norfolk Newport News Charleston Savannah Brunswick Jacksonville Tampa Halifax Santos Rio Grande Aguascalientes Civac Altamira Manzanillo Corporate Regional Office Terminals Technical sites (VPCs) Technical sites (Plant VPCs) Ocean routes Main ports Inland distribution Tuesday, January 16,
13 Reference Case Nissan & WWL: Services Performed Main Activities Advanced Activities Vehicle Processing Inland Distribution Management / Procurement Manufacturing yard receipt and management Supplier purchasing and contracting - oversight, compliance, negotiations & rate agreements Storage Maintenance Pre-shipment preparation & Rail load/unloading Customer Planning Strategic and operational planning Performance management monthly performance reviews Network Optimization / modelling & scenario planning Customs expertise and documentation requirements for export/import Initiate freight payments to suppliers and conduct freight payment auditing Claims assistance / management Tuesday, January 16,
14 Reference Case Nissan & WWL: Services Performed Systems capabilities Track & Trace Supply Chain visibility Reporting Key Performance indicator Dashboard report Customer and Supplier communication links Supplier performance Vehicle inventory management Quality damage free Network Modelling Dwell Times Freight Bill Audit & Payment functionality Inland Transportation time Supply Chain Event Management (in development) Forecasting DataWarehouse Measure anything in a vehicle s lifecycle Direct Customer links Tuesday, January 16,
15 Reference Case Nissan & WWL: Dashboard Report - example WWL/VSA Delivery to Dealer Mth YTD Quality/Value Prior Yr. Mthly - KPI YTD - KPI Target Commitment 1) Rail / Truck Damage Freq x% x% x% x% x% G G 2) Internal damage CPU $.x $.x $.x $.x $.x Y G On-time Performance 1) VSA Prebay - Exact on time x% x% x% x% x% G G 2) 48 HR Shipping - days x.x x.x x.x x.x x.x G G 3) Lead Time - days (inc holds) x.x x.x x.x x.x x.x Y G Inventory Mgmt 1) Dwell Time (inc holds) x.x x.x x.x x.x x.x G G 2) NMM Dwell - days (inc holds) x.x x.x x.x x.x x.x R Y 3) POE Dwell - days (inc holds) x.x x.x x.x x.x x.x G G 4) Class I repairs x.x x.x x.x x.x x.x G G 5) Class II repairs x.x x.x x.x x.x x.x G G Example Only Transportation 1) Abnormal $'s Spent $x.x $x.x $x.x $x.x $x.x Y G 2) Total $'s spent $x.x $x.x $x.x $x.x $x.x G G Tuesday, January 16,
16 Wallenius Wilhelmsen Logistics: Factory to Dealer Finding the quickest route to your customer We provide our customers with greater precision and efficiency in their outbound supply chain and add competitive power and agility to their business. Tuesday, January 16,
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