Creating Lean, Agile and Demand Driven Supply Chains...
Transcript of Creating Lean, Agile and Demand Driven Supply Chains...
Creating Lean, Agile and Demand Driven Supply Chains
Kuehne + Nagel Integrated Logistics
Content
1 Introduction
2 Integrated Logistics Infrastructure
3 Engagement Approach3 Engagement Approach
4 Pricing
5 Sustainable Competitive Advantage
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A Snap Shot of the Global Logistics MarketGrowing Demand for End-to-End Services
� Globalized and fragmented supply chains get predominant in the market
� Market volatility drives the need for synchronization that results in end-to-end visibility
� Customers tend to source logistics management to avoid technology investments and learning curveinvestments and learning curve
� Industry wants to access best practices, cost variabilization and accelerate time-to-value
� Supply chains are progressively following end-to-end industry/company specific standards
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Kuehne + Nagel – A Global Logistics Network
� Sustained year-on-year double digit growth in managed freight
� Strong partnerships with extensive range of preferred ocean carriers
� Well positioned in the top league � Leader in innovative cargo management concepts� Global Cargo 2000 Phase II certification� Strong partnerships with preferred airlines
Did you know?Facts & Figures
Worldwide Network1000 locations in more than 100 countries
Seafreight Top 1
AirfreightTop 3
� Strong partnerships with preferred airlines
� Top 3 global contract logistics provider� Worldwide network of warehouse & distribution facilities� Dedicated and shared warehousing & distribution
management
� European Top 6 Provider� Focus on network services, LTL & FTL business� Pan-European coverage of 38 countries� Innovative intermodal solutions
� Top 3 Global Lead Logistics Provider (LLP)� Industry specific solutions for end-to-end supply chain� Worldwide organization with dedicated teams and
shared Logistics Control Centres
Integrated Service Portfolio~ 63,000 employees
Warehousing Space6.5 Million m2
Turnover 201220,753 mCHF
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ContractLogisticsTop 3
Road & RailTop 6
IntegratedLogisticsTop 3
Kuehne + Nagel Integrated LogisticsValue Proposition
Kuehne + Nagel Integrated Logistics provides managed services
tailored to meet customer challenges, with an emphasis on simplifying
supply chain complexity through integrated end-to-end solutions,
reducing total cost of ownership and maximising service levels.
Integrating these managed services with collaborative concepts into a
cohesive model creates a competitive advantage for our customers in
the marketplace.
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Integrated Logistics Covers All Transport and Service Modes Along Customers’ Supply Chain
Inbound Logistics
SupplierReceiving CustomerManufacturer
End Consumer
Outbound Logistics
Reverse Logistics
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Logistics
Kuehne + Nagel Integrated Logistics� End-to-end Management across the supply chain� True one-stop shop and integrated global IT solution
Air FreightSea FreightWarehousing &
DistributionLast Mile / IntegratorsRoad & Rail
Compliance & Documents
Reducing Costs and Maximising Service LevelsFocus Areas of Cost Optimization
Transport InventoryImport Duty,
Customs & Taxes Warehousing
� Rates � Modes� Equipment
utilization� Special handling
� Equipment capacity
� Storage space� Blue collar
� Duty on Transport� Broker fees� Value Added Tax� Documentation
� Capital expenditure & Financing
� Obsolescence� Damage� Perishability
Management and Information Systems
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Integrated Logistics Creates Additional ValueKey Benefits for Customers
Visibility
End-to-End
Visibility and comprehensive information
Managed end-to-end solution integrating all transport and service modes across the supply chain
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Monitoring Performance management and cost control
Synergy Synergies from Logistics Control Centre environment
Integrated global IT solution including centralized billing
One-face Single point of contact
Technology
Content
1 Introduction
2 Integrated Logistics Infrastructure
3 Engagement Approach3 Engagement Approach
4 Pricing
5 Sustainable Competitive Advantage
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The Integrated Logistics Infrastructure is Supported by 600 Employees and 6 Logistics Control Centres
Birmingham Wroclaw
Delhi
KN IL’s regional capabilities and resources are globally aligned.We support our customers in virtually any location.
Logistics Control Centre
Singapore
Raleigh, NC
Luxembourg
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Results Delivered Through a Combination of Customer Dedicated Services and Shared Services
� Order Management � Transport Planning � Customer Service � Visibility & Event Management
Shared services
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� Business Management� Continuous Improvement� Logistics Partner Management� Customer Analytics
Customer dedicated services
� Visibility & Event Management� Security Monitoring & Control� Freight Audit & Payment� Network Engineering
Manage
Business Management and Continuous ImprovementStrategic and Tactical Services
Manage: Controlled end-to-end logistics fulfillment at variable cost through KN Control Tower
Evaluate
Optimize
Evaluate: Capture and analyze exhaustive KPI’s to drive objective decisions
Optimize: Cost-to-serve minimization under service level constraints delivered by dedicated re-engineering teams
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Logistics Control Centre (LCC) The Service Menu Covers the Lifecycle of an Order
OrderManagement
TransportPlanning
Freight Audit &Payment
Customer Service
Visibility & Event Management
� Received / generated � Transport order � Freight Audit
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� Received / generated forecasts and Revision of inventory windows
� Replenishment Proposals� Reception & completion of
order data with master data augmentation
� Priority Freight Authorization� Back order management� Merge in transit/order line
consolidation
� Transport order consolidation
� Routing, rating and equipment forecast
� Customer service requests, non conformity Mgmt & PoD Mgmt
� Document Mgmt.� Security Monitoring� Insurance Services
� Freight Audit� Freight Invitation� Freight Payment
Harmonized communication lines / Daily Interaction / Scalable & globally aligned process architecture
Partner ApplicationLayer
Information Systems Provides a Service-Oriented Architecture
CustomerERP
CustomerOMS
CustomerCRM
3PLTMS
OtherSystems
3PLWMS
MasterData
KN Enterprise Service Bus
� The Integrated Logistics enabler approach is operated as a fast track plug-in to existing customer systems using KN’s Global Enterprise Service Bus.
� Scalable and flexible architecture allows for seamless template integration with multiple external system and data sources
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KN ApplicationLayer
Transport Mgmt.
Services
Order Mgmt.
Services
Master Data
Services
Whse Mgmt.
Services
Inventory Opt.
ServicesReporting Visibility
KN Data Warehouse
Content
1 Introduction
2 Integrated Logistics Infrastructure
3 Engagement Approach3 Engagement Approach
4 Pricing
5 Sustainable Competitive Advantage
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The Think Big, Start Small and Scale Fast Approach Drives Improvement
� Organisational support
� Scope, actual metrics and
� Sustainable proto-version with reduced functionality
� Functional enhancements, if required
Think BIG Start small Scale fast
Approval to proceed
First success propelling further changes
Improvements as envisaged
� Scope, actual metrics and competitive requirements
� Business case
� Verification of electronic data provision and standard processes
and integration
� Deploy Value Adding Projects (low dependency on additional software)
� Learning / adaptations
� Deployment to full scope sequenced per market, factory or supplier
� Extended Value Adding Projects
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Risk Control Based on Defined Gateways along the Engagement Cycle Underlines KN’s Commitment to Quality
OpportunityAssessment
SolutionDesign
Negotiation & Contract
InitiationPlan &Design
Realisation Validation Deployment Operations
Sales Phase Implementation Phase
seamless handover
Gat
es
seamless handover
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Gat
es
� Documented and auditable sign-off process with clear roles, accountabilities and approval levels
� Pre-alert indications of potential risks
� Systematic escalation paths
� Early execution of corrective actions
� On-time monitoring and reporting
Defined Gatesfrom Sales Phase to Operationsensure:
Implementation Management with Dedicated TeamsFollows Proven Methodology to Set-Up Your Business
Operational Setup & Trainings
Migration
Go-Live & Hand-Over
Post-Go-Live Support
Hand-Over & Kick-off
Project Setup
Business Requirement Gathering
Process-, Solution and IT-Architecture Design
Operational Setup
Interface & IT-Enabler Configuration
Operational Setup & Trainings
User Acceptance & System Integration Testing
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Content
1 Introduction
2 Integrated Logistics Infrastructure
3 Engagement Approach3 Engagement Approach
4 Pricing
5 Sustainable Competitive Advantage
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Pricing StructuresFocus on Management Fee or All-In Prices
Management Fee
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All-In
End-to-End
Rates
Transport
Rates
Warehousing Cost
Gain Share to Synchronize Incentives“The less you pay, the more we earn”
ClientSavings
KN
Present Future
Logistics KN
Gain Share
Logistics Management Cost
Logistics Operating Cost
Management Fee
Optimised Logistics Operating Cost
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Content
1 Introduction
2 Integrated Logistics Infrastructure
3 Engagement Approach3 Engagement Approach
4 Pricing
5 Sustainable Competitive Advantage
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Customized and modular approach
Integrated plan-build-run phases
Sustainable Competitive Advantage Cumulatively Encompasses All Features
Transparency & Control
Zerodisconnect in
customerengagement
cycle
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cycle
Management and integration
services
Industry Expertise
Strong Change Management
Continuous improvement
and innovation
Capabilities in business process (out)-sourcing field
Independent from execution servicesmodes
Experience, hands-on, scalability and speed
Gain sharing models
© Kuehne + Nagel Integrated Logistics
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