Bill Stankiewicz Syncreon
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Transcript of Bill Stankiewicz Syncreon
European Hi-Tech SummitAmsterdam 26-27 September, 2007
Customisation of Fulfillment Services
Page 2
• A New Company: s y n c r e o n
• Customisation of Fulfillment Services
• How? - Best Practices
• Case Study
Agenda
Page 3
• Privately owned Irish Company, founded in 1969 in Ireland, HQ in Dublin
• In January 2007 Walsh Western completed a major acquisition of TDS Logistics
• The new group “syncreon” is a specialised provider of highly customised supply chain solutions critical to the customer’s success
• Scale
• FY 2006 combined revenue of $660m in Technology and Automotive Logistics
• 9,000 direct employees world-wide
• Global footprint with coverage in 4 continents
• Proven Track Record
• Engineering & BPI, IT/Systems, Quality and Operational Performance
• Responsiveness and speed to support customers with major challenges
• Financial stability and a sound platform for future growth, 1.0 b USD by 2010
+ =
Company OverviewA Premier Global Diversified Company
Page 4
Group Management with Key Central Functions
Technology
Freight Forwarding & Transport Management
Industry Vertical Specific Functions
Industry Vertical Specific ServicesOperations Mgt�
Business Development�
Engineering and IT
Technology
Technology
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Company OverviewIndustry Verticals and Service Offering
Technology – Service Offering:
Inbound Logistics: Subassembly, kitting, testing, sequencing and JIT delivery to manufacturing process
Outbound Logistics: Value added fulfillment services - VMI, picking, kitting, custom packing, configuration, personalization and DITM
Reverse Logistics: Customer collection, classification. testing and value or disposal management
Freight Forwarding: FTL and LTL, air and ocean
TM and 4PL: Supporting inbound, outbound and freight forwarding operations
Page 5
Automotive – 34 Sites
Technology Technology Technology Technology –––– 18 Sites18 Sites18 Sites18 Sites
Company OverviewGlobal Footprint
Additional countries cover through distribution include France, Greece, Italy, Czech R., Switzerland.
� Atlanta
� Auburn Hills� Belvidere, IL
� Brownstown, MI
� Chicago, IL
� Dundee, MI� Jefferson North, MI
� Kansas City, MO
� Mt. Pleasant, TN
� mro Brownstown, MI� mro Chicago, IL
� mro Indianapolis, IN
� Norfolk, VA� Riverview, MI
� Sterling Heights, MI
� Warren, MI
USA
� Ellesmere Port
� Hinckley
UK
� Dublin
� Cork� Limerick
Ireland
� Genk
� Brussels
Belgium
� Shanghai
� Shenyang
China
� Dusseldorf (3 )
� Emden� Frankfurt
� Hamburg
� Hannover
� Ingolstadt� Niederaula
� Potsdam
� Regensburg
� Saarlouis� Stuttgart
Germany
� Santo Andre
� Curitiba� Santo Andre LOC
� San Bernardo
Brazil
� Mississauga
� Hagersville� Laval
� mro London
� Oshawa
� Port Colborne� Tillsonburg
� Windsor
Canada
� Gliwice
� Lodz
Poland
� Tilburg (2)
Netherlands
Walton, Kt�
� Warsaw
Page 6
Company OverviewMain Customers
Customisation of Fulfillment Services
Page 8
Value
• Customisation can provide significant value to the supply chain
• This presentation focuses in outbound logistics covering fulfillment activities and distribution of finished goods
• Significant value = Continuously exceeding customer expectations
Customisation of Fulfillment ServicesIntroduction
Implement
RFQ Analysis
OperationPlan
BPI
At Every Stage
Page 9
• Resulting in direct and indirect savings through a higher degree of efficiency and Zero defects:
Customisation of Fulfillment ServicesIntroduction
Improvements are continuously identified and implementedBPI
Theoretical = actual requirements = no re-engineering need
Best practices and Best in class performanceOperational
Shorter implementation lead time with Zero defectsImplementation
Robust allowing the customer to focus on core competenciesPlan
Innovative and creative ideas, positive impact on SP and customer own operations / Supply ChainRFQ Analysis
Page 10
• What is required for a 3PL / 4PL to successfully implement such level of customisation?
• Engineering competence
• Specific industry and manufacturing knowledge
• IT/systems capability
• Methodology
• Empowerment
• Focus to design & implement the most effective solution rather than forcing an existing one to fit the project requirements
Customisation of Fulfillment ServicesIntroduction
RFQ Analysis ImplementationPlan Operational BPI
Page 11
• What is required ……..?
• Strategy to maintain long term customer relationships
• A sustainable and realistic business model under which a business case exists for the project cycle
Customisation costs (design, implementation, ……) are offset with a higher level of efficiency
Customisation of Fulfillment ServicesIntroduction
Customisation Costs
Operating Costs
Page 12
• SynView360� 3600 visibility
� Real-Time Web Portal
� Supports both 3PL & 4PL
� Inbound Visibility & Milestones
� FC & Distribution Track & Trace
� Electronic POD
� EDI Integration with carriers
� VMI and COI Inventory Visibility
� Transaction Reporting
� MIS
� VMI Min/Max Breach Reporting
� Aged Inventory Analysis
� KPI Reporting
� Integrated to Call Centre
Supply Chain Execution
• Transport Management� CIS
� IFMS
• EPOD/POD� EPOD capture
• Vehicle Tracking� CIS
• Customs Docs� Icarus on-line
Supply Chain Visibility
Contract Logistics
Applications Overview
• RF WMS� Warehouse Management
� Radio Frequency Driven
� Integrated MHE & Conveyors
� ERP integration
� CIM/DITM� Continental In Transit Merge
� Dynamic In Transit Merge
• Reverse Logistics� EPRC & APRC
• Bond/customs� WMS Integration to DMS/CMS
Developed and supported in-house Customised solutions to EXACT customer requirementsFully Integrated to Customer ERP Automated Conveyoring & Sortation solutions
Road/Air/Sea Freight
Freight Management
Customisation of Fulfillment ServicesInformation Technology
Page 13
20
308
80
• Business Process Improvement (BPI) program initiated in 2002
• BPI integrating 6 Sigma & Lean: • Design of new processes / solutions
• Increase operational efficiencies & elimination of waste
• Meet competitive cost challenges and create customer value
DMAIC: Improve existing
processes, services, and facilities to 6 Sigma quality
Leverage and sustain the gains achieved by improvement and creation
NPI (DMADV): New
processes, services, business and facilities to 6 Sigma
quality
Customisation of Fulfillment ServicesMethodology and Business Model
Page 14
Define Measure Analyze Design Validate
• Engineering Design: New process / product - DMADV methodology
Define the project goals and customer (internal and external) deliverables
Measure and determine customer needs and specifications
Analyze the process options to meet the customer needs
Design (detailed) the process to meet the customer needs
Verify the design performance and ability to meet customer needs
Customisation of Fulfillment ServicesMethodology and Business Model
Improve Control• Improve Existing Process - DMAIC
Page 15
Typical effort level over a project life cycle
Define Project M A D V Integrate into Daily Work
Le
ve
l of
Eff
ort
Champion/Sponsor Project Lead and Team Team and Process Owner
Customisation of Fulfillment ServicesMethodology and Business Model
Customer A
Case Study – Outbound Logistics
Page 17
Case StudyOutbound Logistics for Customer “A”
Simplified Supply Chain
Inbound Supply Chain Outbound Supply Chain
SystemsComponents
• Disk drives
• Semiconductor
• Housings
• Etc.
Contract
Manufacturer
s• A
• B
Peripherals
• Monitors
• Printers
• Etc.
VMI
PC, laptop
VMI
DITM
Key
Systems
Product owned by supplier
Peripherals
Complete Orders
DITM
Regional
Fulfilment
Hub1
Reverse Logistics
Value
Added
Resellers
Corporates,
Hospitals,
Etc.
Consumers
Customers
Page 18
Fulfillment:
Specific services that are integrated:
• Receiving and warehousing
• Vendor managed inventory
• Order processing
• Personalisation
• Kitting, labelling
Case StudyOutbound Logistics for Customer “A”
Page 19
Fulfillment:
Specific services that are integrated:
• Warranty and serial number capture
• Diagnostic and quality checking
• Country specification & localisation
• Pack-out
• Merge (complete orders)
Case StudyOutbound Logistics for Customer “A”
Page 20
High Level Case StudyOutbound Logistics for Customer “A”
Fulfillment Centre:
• High quality multi user site
• Shop Floor = 350,000 sq ft
• Office area = 12,000 sq ft
• Height 53 ft, 37 Dock Doors
• Secure site - TAPA class A
• Approx. 600 employees
Page 21
High Level Case StudyOutbound Logistics for Customer “A”
Advantages of a Multi-Share Facility:
• Synergy Sharing
• Economies of scale
• Volume Fluctuation Flexibility
• Best Practices w/o compromising confidentiality
• Staffing and Cross Training
While maintaining the same level of customisation!!!
Page 22
Performance:
• Dock to Stock < 2 hours
• Inventory Accuracy 99.98% +
• Fulfillment Rate 0 backlog 99.97% +
Fulfilment Solutions:
Case StudyOutbound Logistics for Customer “A”
Page 23
4 PL Approach
Pan-European Network
Carrier Selection Criteria:
• Robust and secure networks able to handle Hi Techproducts
• Established range of services meeting the needs of the B2B & B2C market sectors
• Multiple in line carriers per Country based on differing consignment volumes and indemic network profiles
• A commitment to develop IT capabilities to match the syncreon’s and customer’s expectations
• Financially stable organisations
• Flexibility-Ability to provide the necessary range of service options at a commercially viable rate
IT/System Platform
• ‘T&T’ information integrated into client’s website
• IT flexibility enables the rapid connectivity of new partners. e-POD
• Internet-based Milestone Reporting service allowing access to authorised client personnel and suppliers
• Order and Trailer-level milestone tracking for CIM-RF application
Customer Service Center
Ensure all orders are processed, executed and completed while monitoring performance and
driving CIPCustomers
INTEGRATED
• Delivery Performance 99% +
• POD Entry within 48 Hours 99% +
• MWD <150 per million (5.2 sigma)
High Level Case StudyOutbound Logistics for Customer “A”
Page 24
Thank you for your attention