Collaboration Make It Happen Logicon 2012

1,393 views
1,315 views

Published on

A presentation delivered by Ingo Brauckmann, Head of Business Development Consumer EMEA, at Logicon Europe 2012. An overview on the collaborative consumer supply chain: one single inventory point along end-to-end supply chain.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,393
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
35
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Collaboration Make It Happen Logicon 2012

  1. 1. Ingo BrauckmannCollaboration – make it happenLogicon, Amsterdam, 8 February 2012
  2. 2. Purpose of Today • To show living examples of collaborations • To foster the dialogue around collaboration • To challenge your individual collaboration capabilitiesCollaboration – make it happen! DHL | Page 2
  3. 3. Agenda 1 Introduction to collaboration 2 Examples 3 Way ForwardCollaboration – make it happen! DHL | Page 3
  4. 4. Collaboration – A simple definition Collaboration is working together to achieve a goal. (Source: Wikipedia, Jan 2012)Collaboration – make it happen! DHL | Page 4
  5. 5. What drives us to collaborate in Business? Collaboration is working together to achieve a goal. (Source: Wikipedia, Jan 2012) Sustainability Cost efficiency Better business • Synergies • Synergies • Higher product availability • Less CO2 • Less costs • New distribution channels?Collaboration – make it happen! DHL | Page 5
  6. 6. Collaborative Logistics – Key Idea and Benefits Traditional consumer supply chain Various inventory points Key benefits Separate Retailer manufacture • Lower logistics DC’s costs r warehouses • Less inventories • Less obsolescence Collaborative consumer • Better service supply chain • Less CO2 emissions One single inventory point Combined Cross- along end-to-end manufacture docking supply chain r platform warehousesCollaboration – make it happen! DHL | Page 6
  7. 7. Benefits of Collaboration Models have been widelycommunicatedCollaboration – make it happen! DHL | Page 7
  8. 8. Agenda 1 Introduction to collaboration 2 Examples 3 Way ForwardCollaboration – make it happen! DHL | Page 8
  9. 9. Collaborative Logistics – Two Major Types are of High Interest Main types of collaboration • Collaboration is triggered by a group 1 Manufacturer-driven of consumer goods manufacturers (horizontal collaboration) • Typically 3-10 large manufacturers • DHL example: Tradeteam (drinks industry platform UK) • Collaboration is triggered by retailer 2 Retail-driven (vertical collaboration) • Typically rather large number of small manufacturers • DHL example: 3C platforms France (initiated by Carrefour)Collaboration – make it happen! DHL | Page 9
  10. 10. Example 1 Main types of collaboration • Collaboration is triggered by a group 1 Manufacturer-driven of consumer goods manufacturers (horizontal collaboration) • Typically 3-10 large manufacturers • DHL example: Tradeteam (drinks industry platform UK) • Collaboration is triggered by retailer 2 Retail-driven (vertical collaboration) • Typically rather large number of small manufacturers • DHL example: 3C platforms France (initiated by Carrefour)Collaboration – make it happen! DHL | Page 10
  11. 11. Example 1 – Tradeteam in UK 1 Manufacturer-drivenCollaboration – make it happen! DHL | Page 11
  12. 12. Background: How Tradeteam was Born… 1 Manufacturer-driven Situation for Bass Brewers (today Key decisions taken by Bass Brewers Molson Coors) around 1995 in 1995 • Government ruling to divest in pub • Multi customer 3rd party supplier infrastructure • Rationalized network with NDC • Own distribution network with strong • Employee Relations agenda investment need • Culture of Service Excellence • Own supply chain set up not seen as competitive (capacity utilization, • An award winning business….. service and factor costs) Decision to form a Joint Venture (JV) to keep control and still be able to attract other parties to create synergiesCollaboration – make it happen! DHL | Page 12
  13. 13. About Tradeteam 1 Manufacturer-drivenTradeteam is a joint venture founded in 1995:50.1% owned by Deutsche Post DHL and 49.9% owned by Molson Coors DHL Supply Chain UK and Ireland Joint Venture Board Tradeteam Senior Leadership TeamCollaboration – make it happen! DHL | Page 13
  14. 14. Tradeteam has Transformed 1 Manufacturer-driven From 1995… …to today • In-house became 3rd party • Multi customer 3rd party supplier • One customer • Rationalized network with NDC • Under utilized network • Employee Relations agenda • Start of huge change programme • Culture of Service Excellence • Challenging Industrial Relations agenda • An award winning business….. • Service IssuesCollaboration – make it happen! DHL | Page 14
  15. 15. Tradeteam’s Customer Portfolio has developed over thepast years including Brewers, Wholesalers and Pubco’s 1 Manufacturer-driven 1995 2002 2007 2008 2010 2011Collaboration – make it happen! DHL | Page 15
  16. 16. Tradeteam Overview 2012 1 Manufacturer-driven• One National DC (Stretton), 7 RDC’s and 19 Depots Aberdeen Depot RDC Dundee NDC• Turnover of GBP 155m per annum, Glasgow 500 vehicles and 2,000 people Hebburn• Delivers direct to more than 25,000 pubs Culcavy Penrith• Delivers 1600 loads into retailers each week Tadcaste Knowsley r Grimsby Tinsley• Picks more than 45 million items every year Stretton Norwich Wolverhampton with a 99.88% accuracy Aberystwyth Hams Hall Ebbw Vale St Ives Narbeth Gloucester Enfield• Delivers over 4 million wines and spirits Swansea Crayford cases every year from over 3,500 SKUs Reading Newquay Salfords Exeter TottonCollaboration – make it happen! DHL | Page 16
  17. 17. Tradeteam has Diversified its Service Offer beyond CorePrimary and Secondary Distribution 1 Manufacturer-driven Forecasting & Primary Secondary Customer Reverse Information Import Order Capture Replenishment Distribution Distribution Service Logistics & Reporting Services • Inbound logistics • DHL Gori • EDI • Retail and • Network WMS • Query resolution • Empties • Service levels management • Supplier • Telesales Wholesale DC • Order picking • First contact management • Customer • Demand Management loads service • Container surveying • Order Capture • Stock rotation forecasting • Consolidation • Bulk liquid and • Delivery updates sortation • Query resolution • Promotional grain • Time window • Stock • Duty Activity delivery • Customer • Stock and trade performance optimization movements ullage Management • Cellar operation link • Mood reporting • Supplier • NDC management management management • Proactive • Outlet reporting consolidation customer • Brewery • Repacking surveying repatriation • Destruction SYSTEMS & SUPPORT: Forecasting / Order Management / WMS / TMS / Customer Service Enablers PEOPLE: Management development / H&S training / Employee engagement / People Awards CUSTOMER FOCUS: Dedicated account management / Service Excellence / Customer Surveys CHANGE MANAGEMENT: DePICT Project Process / Experienced Project ManagersCollaboration – make it happen! DHL | Page 17
  18. 18. Key Benefits 1 Manufacturer-driven Key benefits to the Tradeteam partners • High service level with reduced stock (no multiple SKU) • Competitive transport costs due to high synergies in network • Supports the green agenda • Platform has capacity to further expandCollaboration – make it happen! DHL | Page 18
  19. 19. Example 2 Main types of collaboration • Collaboration is triggered by a group 1 Manufacturer-driven of consumer goods manufacturers (horizontal collaboration) • Typically 3-10 large manufacturers • DHL example: Tradeteam (wine and spirits platform UK) • Collaboration is triggered by retailer 2 Retail-driven (vertical collaboration) • Typically rather large number of small manufacturers • DHL example: 3C platforms France (initiated by Carrefour)Collaboration – make it happen! DHL | Page 19
  20. 20. Example 2 – Retail Consolidation Platform in France 2 Retail-drivenImage © CarrefourCollaboration – make it happen! DHL | Page 20
  21. 21. Retail-driven Collaboration – Carrefour in France 2 Retail-driven The starting point START HERE The solution approach Clear retail target to: • Increase service level (product availability) Consolidation of small and medium size suppliers • Decrease stocks (working capital) in • Decrease complexity at loading ramps Collaborative Consolidation Centres (“3C”) • Further optimize logistics costs • Deliver green benefitsImage © CarrefourCollaboration – make it happen! DHL | Page 21
  22. 22. Business Case Carrefour 3C: Physical Flows 2 Retail-driven Industry Regional DC’s Retail Outlets Consolidation & Collaboration Center Full trucks Load Optimization Full trucks Full trucks Full trucksCollaboration – make it happen! DHL | Page 22
  23. 23. Retail-driven Collaboration –Example 3C Platform in Lomme (France) 2 Retail-driven Who does what? Manufacturers DHL Carrefour • Deliver to Lomme at own • Signs contract with • Places orders with cost from factories manufacturers (equal terms manufacturer • Hold stock at own charge in and conditions) • Takes merchandise Lomme • Secures all logistics ownership when leaving • Issue invoice after products operations from reception, Lomme leave Lomme put to stock, order • Synchronizes preparation through manufacturers orders to • Secure product availability in transport and co-packing Lomme optimize inbound transport • Provides set of KPIs to • Takes charge of the • Exchange via EDI or manufacturer to monitor manually data for order transport from Lomme to the operational efficiency Carrefour platforms preparation, inbound and outbound with DHLCollaboration – make it happen! DHL | Page 23
  24. 24. Benefits 2 Retail-driven Manufacturers Before Key benefits • Transport costs: Up to 40% less cost per pallet • Stock holding costs: Up to 20% saving potential • Transport distances: After 25% less km • CO2: At least 25% less CO2 emissions • Transport lead times: Up to 40% improvementCollaboration – make it happen! DHL | Page 24
  25. 25. Agenda 1 Introduction to collaboration 2 Examples 3 Way ForwardCollaboration – make it happen! DHL | Page 25
  26. 26. Manufacturer-driven Collaboration –General Value Proposition for 3 PL• Neutral and trusted third party/convener facilitating relations between multiple – possibly competing – manufacturers (avoiding antitrust issues)• Helping manufacturers pre-empt greater pressure from retailers to enter vertical collaboration• Offering scale, pooling, and standardization benefits to manufacturers (especially those who usually cannot fill trucks by themselves)• Offering efficiency gains through deep expertise in warehouse management and value- added servicesCollaboration – make it happen! DHL | Page 26
  27. 27. Retail-driven Collaboration –General Value Proposition for 3 PL• Neutral third party facilitating customer/supplier relation• Single point of contact for the retailer – more easy to hold DSC accountable than managing multiple small suppliers• Offering scale, pooling and standardization benefits to small suppliers• Offering efficiency gains through deep expertise in warehouse managementCollaboration – make it happen! DHL | Page 27
  28. 28. Collaborative Logistics –Cornerstones of Potential 3 PL Offering • Basic services: full operation of platforms (transport, warehousing) including quality assurance • Optional elements – Value-adding services – e.g., customer service, OTC management, VMI – Equity company to facilitate gain sharing between collaboration partners Services • Potential specialization – Focus on certain product categories – Focus on manufacturers with seasonal complementary demand patterns – Focus on fast movers – Focus on promotion items – Focus on multichannel deliveriesCollaboration – make it happen! DHL | Page 28
  29. 29. Collaborative Logistics –Who to Focus on? • Focus on existing customer base (both for Consumer and Retail) • Potential participants on consumer side: all consumer goods firms, with potential focus on: Participant s – Those suffering from high storage costs in own DC’s (e.g., high-volume products like detergents) – Those who have difficulties of distribution with full truck loads (e.g., high-value-density products like chewing gum) – Timelines of tendering processes need to be roughly in lineCollaboration – make it happen! DHL | Page 29
  30. 30. Conclusion • The need is there! • The know-how is there! • It’s up to us to make it happen!Collaboration – make it happen! DHL | Page 30
  31. 31. Thank You! To discuss this further please contact: Ingo Brauckmann Head of Business Development Consumer EMEA DHL Supply Chain Mobile: +49 40 7345 9401 ingo.brauckmann@dhl.com©2012 DHL Supply Chain All rights reserved throughout the world. Trademarks or registered trademarks are property of theirrespective owners. While every precaution has been taken to ensure accuracy and completeness in thisliterature, DHL Supply Chain assumes no responsibility, and disclaims all liability for damages resultingfrom use of this information or for any errors or omissions.Collaboration – make it happen! DHL | Page 31

×