Creating Lean, Agile and Demand Driven Supply Chains...

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Creating Lean, Agile and Demand Driven Supply Chains Kuehne + Nagel Integrated Logistics

Transcript of Creating Lean, Agile and Demand Driven Supply Chains...

Page 1: Creating Lean, Agile and Demand Driven Supply Chains ...fi.kuehne-nagel.com/.../Integrated_Logistics...01.pdf · True one-stop shop and integrated global IT solution Sea Freight Air

Creating Lean, Agile and Demand Driven Supply Chains

Kuehne + Nagel Integrated Logistics

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Content

1 Introduction

2 Integrated Logistics Infrastructure

3 Engagement Approach3 Engagement Approach

4 Pricing

5 Sustainable Competitive Advantage

03/02/2014© Kuehne + Nagel Integrated Logistics p. 2

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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

03/02/2014© Kuehne + Nagel Integrated Logistics p. 3

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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

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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

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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

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Content

1 Introduction

2 Integrated Logistics Infrastructure

3 Engagement Approach3 Engagement Approach

4 Pricing

5 Sustainable Competitive Advantage

03/02/2014© Kuehne + Nagel Integrated Logistics p. 9

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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

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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

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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

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Content

1 Introduction

2 Integrated Logistics Infrastructure

3 Engagement Approach3 Engagement Approach

4 Pricing

5 Sustainable Competitive Advantage

03/02/2014© Kuehne + Nagel Integrated Logistics p. 15

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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:

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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

03/02/2014© Kuehne + Nagel Integrated Logistics p. 19

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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

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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

03/02/2014© Kuehne + Nagel Integrated Logistics p. 22

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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

03/02/2014 p. 23

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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