Pavel isaev. danone

Sustainable Transport & Distribution Pavel Isaev Supply Chain Director Danone Russia Moscow – 03/06/2010

Era of Retail Expansion

Inefficient Supply Chain
High costs due to parallel operated line hauls
Less flexibility in departure schedules
Complex supply chain processes occupy management capacity
on both sides (Manufacturer and Retailer)
Challenges Retailer DC Warehouse of Supplier Production Plant Manufacturer Production Plant Manufacturer Retail Outlet Retail Outlet Retail Outlet Retail Outlet

Existing Network Coverage
20 DCs and 8 cross docks in 26 cities
500 Trucks delivering over 30,000 destinations (1,5 times a week on average)
Current annual volumes handled : more than 350,000 tons
80% of the Russian population and 85% of the buying power is delivered within 24 / 48 hours
Network coverage reflects the population spread in Russia
Service frequency ranges from daily in major cities to once a week in furthest locations
Designed to meet manufacturers and retailers’ needs Danone Pan-Russia Chilled Network

TOTAL COST TO SERVE MODEL INBOUND PRIMARY DISTRIBUTION SECONDARY DISTRIBUTION POS Factory expedition Primary warehousing Freight to secondary & Cross-dock Freight to distributors Freight to platforms Distributors POS Customer platforms POS Vanselling Preselling) Internal freight out Internal freight out import Factory export Factory 1 Factory 2

D n K
A solution for the food and beverage chilled sector with multiple delivery points in Russia
Project Idea
Network Volumes

Pan-Russia Chilled Network
Goods delivered through the network include
Dairy products
Milk, traditional and modern dairy, butter, cheese, etc..
Semi-cooked or ready meals and sauces
Packed processed meat
Chilled and temperature sensitive beverages
Combined delivery with goods are accepted for
POS materials to the same delivery point (marketing leaflets and publicity)
Non-contaminating dry foodstuff tolerating the temperature range
Temperature range : 2 o C to 6 o C Specialized in temperature controlled goods delivery

Advantages at a glance The DnK optimized network Main DnK warehouse Production Plant Manufacturer Production Plant Manufacturer Retail Outlet Retail Outlet Retail Outlet Retail Outlet DnK Regional warehouse Warehouse of Supplier
On time delivery via optimized DC locations
Cost reduction through shared facilities and trucks
Improved delivery time reliability and flexibility in departure schedule (no minimum
quantity)

Around 5,000 delivery points in Moscow
3,500 delivery points in St Petersburg
600 points of delivery in Yaroslav (500 000 people)
From Retail Chains and Hypermarkets
To traditional stores
DnK currently visits over than 30,000 delivery points
Network Coverage

D n k solution Operational perspective
After sales
Documents returned after delivery in
1 week time for 80% of destinations
2 weeks for far destinations (20%)
Delivery notes scanned within 24 hours after delivery
Orders tracing and visibility on web portal with delivery status
Returns management
Proposed solutions
Delivery to the same or to another delivery point
Destruction
Return to customer’s DC
Warehousing
Storage and picking solution close to the consolidation centers

D n k solution Tariffs
Tariffs can be based on weight or on number of pallets
Smallest quantity invoiced : 10 kg
1 pallet is considered from 200 kg, but the invoice can be based upon weight only, if requested
Weekly invoice
One single contract for all Russia
Central invoicing
Central claims management
Central customer service

Large potential of products to achieve critical mass
Broad geographical coverage
High frequency of shipments
Variety of destinations – from Hypermarkets to small stores
Flexible distribution
Cost efficient solution
Quality, efficiency & reliability as major network characteristics
Safety and security
Full traceability and visibility of the flows through IT system
D n K - Unique distribution offer on the market

Thank you! Any Questions?

BACK UP

Main warehouse 7 5 6 3 2.5 2 1.5 1.5 1.3 1 1 1 1 1.2 2.3 2 4 Regional warehouses Cross docking DnK Chilled Network: lead times of delivery (days) 2.3 3 4 4 1.4 1.4 2.7 Other towns covered 1.6 Nijni-Novgorod Volgograd Voronezh Rybinsk (XD) Kostroma (XD) Yaroslavl Omsk Novosibirsk Tyumen Perm Ekaterinburg Chelyabinsk (XD) Moscow North Krasnoyarsk Orenburg ( XD ) Magnitogorsk ( XD ) Ufa Kazan Togliatti Samara (XD) Saratov (XD) Novorossiysk (XD) Krasnodar Rostov Kaluga Tchekhov Moscow South St-Petersburg

p. Main warehouse 5 5 8 27 6 16 20 11 9 1 11 13 8 54 13 6 7 Regional warehouses Cross docking DnK Chilled Network: nb of connections per week 3 3 6 6 1 1 1 20 Nijni-Novgorod Volgograd Voronezh Rybinsk (XD) Kostroma (XD) Yaroslavl Omsk Novosibirsk Tyumen Perm Ekaterinburg Chelyabinsk (XD) Moscow North Krasnoyarsk Orenburg ( XD ) Magnitogorsk ( XD ) Ufa Kazan Togliatti Samara (XD) Saratov (XD) Novorossiysk (XD) Krasnodar Rostov Kaluga Tchekhov Moscow South St-Petersburg

http://ecr-all.org	120
http://www.ecr-all.org	16
http://www.slideshare.net	2
http://translate.googleusercontent.com	1
http://hghltd.yandex.net	1

Pavel isaev. danone

by ECR Community on Jun 10, 2010

Accessibility

Categories

Upload Details

Usage Rights

5 Embeds 140

Statistics

Pavel isaev. danone — Presentation Transcript