Pavel isaev. danone
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Pavel isaev. danone Pavel isaev. danone Presentation Transcript

  • 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