Building partnership through innovation
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Transcript of Building partnership through innovation
BUILDING A PARTNERSHIP THROUGH INNOVATION18 March, 2015Speakers: Pascal KEMPS, Sector Head Passenger Vehicles
Pascal CLAES, Global Customer Manager
Agenda
Strategic Background1
Maintenance on Demand – the project2
Commercial Benefits3
Busting the myths4
Agenda
Strategic Background1
Maintenance on Demand – the project2
Commercial Benefits3
Busting the myths4
In 2008, Deutsche Post DHL was at a turning point in its history
Creating the Base Continuous Global Integration
Unlocking PotentialInnovation, high
performance, advanced analytics, partnerships
Accelerating Organic Growth
Focus-Connect-Grow
DHL Strategic Context
1990–1997 1998–2008 2009–2015 up to 2020
Between 1997 and 2006, Deutsche Post DHL transformed itself into a global, fully integrated logistics provider
No. 1 in contract logistics
Leader in the forwarding business
Europe’s largest postal service
Partner for e-commerce and apioneer in secure digitalcommunications
No. 1 in international express delivery
DHL Strategic Context
Automotive Vision & Value proposition
DHL Strategic Context
VisionRemain THE logistics leader and become THE innovation leader
for the automotive industry
Value PropositionThe Trusted Partner to the industry for both replicating high quality
solutions around the world as well as thinking along and developing new innovative solutions to jointly address the challenges of tomorrow.
Volvo’s Strategic Context
creating value for customers in selected segments
working with energy, passion and respect for the individual
Volvo’s Strategic Context
Safety
QualityEnvironmental care
The Strategic Context
Our aspirations show a powerful convergence
We are a global team of high performing people
We are proven innovators of energy-efficient transport and infrastructure solutions
We are among the most profitable in our industry
We have captured profitable growth opportunities
We are our customers’ closest business partners
Energy1.4%
The Strategic Context
We are both part of a global problem… as well as part of the solution
Electricity and Heat
Production25%
Other Energy9.6%Industry
21%
Transport14%
Buildings 6.40%
AFOLU25%
49 Gt CO2eq(2010)
Direct Emissions Indirect CO2 Emissions
Industry11%
Transport0.3%
Buildings12%
AFOLU0.87%
Note: AFOLU stands for Agriculture, Forresting & Other and Land Use
The EC Framework Programmes offer a very powerful collaboration platform
Address European Transport System (s)
Develop greener, smarter and safer Surface Transport System (s)
Secure the leading role of EU transport industry in the global market
Kick Starting Strategic Collaboration
Agenda
Strategic Background1
Maintenance on Demand – the project2
Commercial Benefits3
Busting the myths4
The Maintenance on Demand Project
11 Integrated Work Packages re-defining the automotive aftermarket
Work package 1System Requirement and risk assessment
Phase 1: Enabling Technologies
Work package 2
Sensors
Work package 3
Wireless Sensor Network
Work package 4
Data management
Work package 5
Logistics
Work package 6
Condition Monitoring
Work package 7Methods/procedure to estimate
the Remaining Life Time
Phase 2: Services
Work package 8Maintenance on demand Part a) RTD Part b) DEM
Work package 9Maintenance on the Fly
Part a) RTD Part b) DEM
Management
Workpack-
age 10
Dissemination
Workpack-
age 11
So What?
TCO* Based Offers Optimized Service Planning
Investigation Areas
Increased productivity, no “just-in-case” maintenance
Total calendar time, 24 hours/day & 7 days/week
Planned time Idle Time
Uptime Idle TimeDown time
Uptime Idle TimeDown time
Service Parts & Logistics Optimized Service Planning
Investigation Areas
Total calendar time, 24 hours/day & 7 days/week
Planned time Idle Time
Uptime Idle TimeDown time
Net operating time Idle TimeFailure Service
Drive DriveServiceWait Paper work Paper workBreakdown, Unplanned Maintenance
Volvo’s take-away
What would be a market-compliant value proposition?
• DHL Fleet Procurement Financial parameters• DHL Fleet Engineering Maintenance and Operational parameters• DHL Fleet Operations Human-Machine Interface
DHL’s take-away
How do connected cars impact logistics?
Tota
l dis
tanc
e(k
m p
er d
ay)
Tota
l CO
2(k
g pe
r day
)
• Volvo DealersWorkshop optimization opportunities & boundaries.
• Volvo OperationsGuardian of feasibility
• Volvo LogisticsDevelopment Financial & infrastructural boundaries
0 5000 10000 15000 20000 25000
Scenario 1
Scenario 2
Scenario 3
Outbound Return
Return
0 500 1000 1500 2000 2500
Scenario 1
Scenario 2
Scenario 3
Outbound Return
Return
Maintenance on Demand
The vision is becoming reality
• ShowcaseCenterpiece DHL’s new Innovation Center
• Trial Target logistics set-up being tested at a small scale
• Implement Follow-up project kicked off, including latest insights on Big Data
Agenda
Strategic Background1
Maintenance on Demand – the project2
Commercial Benefits3
Busting the myths4
Get behind the scenes – no gatekeepers
Mutual Commercial Benefits
A unique alignment at all levels facilities business development activities
Access to all functions and levels
Board level relevance – it is their strategy!
Pull in external expertise – increasing impact
Co-create your customers’ strategy
Mutual Commercial Benefits
Strengthening each others’ brand
GlobalTeamworkPassionPersonal
commitmentCan-do spirit
SpeedTechnology
EnvironmentGlamour &
appeal
THE world’s premier offshore sailing event
THE logistics company for the world
Mutual Commercial Benefits
Strengthening each others’ brand
New partnership around Volvo In Golf 2015
Venues: Incheon, KoreaEvent date: May 11
Venues: Göteborgs GK,Hovås Göteborg
Event date: June 29
Venues: Tromsö Golfpark, Norway
Event date: July 20
Venues: Whistling Straits, Milwaukee
Event date: September 28
Venues: Finca Cortesín, Spain Andalucía
Event date: October 12
Venues: Abu DhabiEvent date: November 23
Venues: Royal Golf & Country Club, Bangkok
Event date: December 14
A Positive Commercial Climate
Strategic Commercial Breakthroughs – DHL
• Japan• South East AsiaTake over
competitor business
• Production material in Europe• European dealer delivery serviceStrengthened
historic position
• Eastern Europe• South East Asia• Latin America
Jointly penetrated emerging markets
A Positive Commercial Climate
Strategic Commercial Breakthroughs – Volvo
• Expanded sales in Asia Pacific• Expanded sales in the Americas• Penetration of competitors’ home market:
Germany
• 1st ever 18t hybrid truck prototype tested by DHL UK
• Field testing of Bio-fuel trucks in Sweden• Purchase of start-up batch of Bi-fuel trucks
Expanded global footprint
Collaborative testing of new models
Agenda
Strategic Background1
Maintenance on Demand – the project2
Commercial Benefits3
Busting the myths4
Myth 1: It’s hard to get into the circle.
It’s much closer than you think
The European Commission
Your LinkedIn Network
Your companies’ representation office
Myth 2: Size matters
The SME’s in the Maintenance on Demand consortium thrived
Myth 2: Size matters
Avonwood expanded sales globally through their participation
Myth 3: Innovation is difficult in my industry
Innovation can be anywhere.
Companies experienced on average a 10% reduction in shareholder value, after a supply chain disruption4)
93% of the leaders of the worlds top companies in the CEO summit in 2012 said they were unprepared for supply chain disruptions2)
Only 9 % of American supply chain executives said that they could assess the impact of a disruption within hours3)
Source: 1) Business Continuity Institute & Experton Group; 2) World Economic Forum Supply Chain and Transport Risk Survey 2011; 3) Jeff Dobbs, Global Sector Chair, Diversified Industrials and a partner with KPMG in the U.S 4) Hendrick & Singhai, “The Effect of Supply Chain Disruptions on Long-Term Shareholder Value, Profitability and Share Price Volatility
73% of interviewed had companies at least one SC disruption in 2012 -costs caused by SC incidents are greater than EUR 1m in 17% of cases1)
Customer Network data Site contacts Volumes & priorities
Supply Chain expertise Best Practices in
Contingency Management People on the ground to
take actions worldwide
Partners Real time incident feeds Statistical risk evaluations Competences for risk-
specific deep-dives
Incident Monitoring Risk Assessment
Input from … …to create one joint platform forSupply Chain Risk Management
Source: DHL Resilience360
DHL
I1 I2
• Multi-tiered visualization of your global and end-to-end supply chain
• Create transparency on exposure and vulnerability in over 20 global risk categories
• Rate resiliency and ensure coverage of backup plans
• Identify risk hotspots and recommend suitable mitigations & alternatives
• Near real-time 24/7 alerts on supply chain relevant incidents and risk warnings
• Filtering options to alert, based on specific categorization of risk and its severity level
• Trigger follow-up actions immediately
Myth 3: Innovation is difficult in my industry
Critical points
Very strong common strategic value
Be aware of your role in the project
Assess your companies’ workload (and timing)
Leverage the dissemination budget
Own your internal & external communication