Global logistics management

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Global logistics management

  1. 1. Mungunshagai EnkhboldGlobal Logistics Management
  2. 2. Introduction• NYK Logistics is a logistics (Transportations) provider.• NYK Logistics is a part of NYK Group, which was founded in 1885.• They satisfy the needs of their customers with the carriage of a variety of goods safely and securely.
  3. 3. IntroductionNYK has more than 30,000 employees around theworld and offers various logistic services: Container Transport Land Sea Air
  4. 4. Other servicesRORO Bulk and Energy resource transport Terminal, and Cruises
  5. 5. Focus• This project will be focused on how the supply chain management of NYK has changed as a result of information technology advances.• Project Scope• We will be focusing on: – Internal management of containers – External tracing management system – How NYK could compare to others in its industry by benchmarking – Future transportation to improve SCM
  6. 6. Current situation of NYKThe ultimate goal of Supply Chain Management is tocompletely synchronize every supply chain cycle withthe customers final demands. In reality, however, thisgoal is difficult to meet.•Challenges in Supply Chain Management facingNYK: - Further distances and longer lead times tomanage- More complicated transportation routes anddistribution patterns
  7. 7. Challenges in Supply Chain Management facing NYK: - Increased risk of the Bullwhip effect due tonumber of additional trading partners- More difficult to respond to Consumer demand ina timely fashion- Communication and coordination problemsincrease
  8. 8. Challenges in Supply Chain Management facing NYK: - Communication among multiple partners with varying technologies - Reacting to changes and problems in an extended supply chain - Effective communication and cooperation among supply chain partners
  9. 9. Case Study: NYK Logistics, Long Beach, California, United States of America.Main characteristics: Target’s largest distributor 70-acre site 1,200 parking slots 250 dock doors More than 2500 gatetransactions daily during peak 24/7 operations
  10. 10. “In the old system—with a clipboard and spreadsheet and a walkie-talkie—it was impossible to manage…”The main challenges of this old system were:Difficulty keeping up with demand (volume / velocity)Limited yard spaceLevel of service performance at riskDifficulty finding containers and trailersDifficulty Selecting ‘primary carrier’ trailers for shippingLabor intensive yard checksFocused on retaining business as opposed to growing business
  11. 11. Solution: RTLS (Real time location system) Long battery life (5 to 7 years) High data capacity True Real-Time Location System Omni-Directional Thousands of Tags per Acre Long Range Indoor/Outdoor Operation Compatible with any Wi-Fi
  12. 12. Changes in SCM?• Increased speed: each truck takes just 15 to leave and take 1container. It took at least 1 hour with the old system.• Able to handle peak volumes more efficiently• Increased capacity over 50%, and it´s still expandable.• Improved level of service performance to 2 days during peaks –it was7 to 9 days with old system.• Eliminated daily yard checks.• More accurate and real-time information shared with customers.
  13. 13. Sustainability• More then 12 months later competitors began toimplement the same or similar systems.• Sustainable success can be obtained by having asustainable innovation strategy, since innovation is aboutusing change to better meet human needs and values. Inother words, bring new design and smart technologiestogether so offer service excellence.
  14. 14. Sustainability•NYK Logistics was the first company in the USA toimplement a RTLS.• Setting focused targets and putting in place the means tomeasure performance and confirm that the targets arebeing achieved. (checkprogress)
  15. 15. NYK Logistics’ TechnologyNYK Logistics uses several technologies to provide theservices to their customers. One of the most importanttechnologies is the satellite tracking systems.This technology is being used in several industries relatedto the NYK Logistics: Retail Business and Food andBeverage business. By using this technology, NYKLogistics can solve several challenges and result in thebetter performances.
  16. 16. NYK Logistics’ TechnologySatellite Tracking System is the technology thatuses the application of GPS and related softwareto track the fleet that provides by the NYKLogistics. By using this technology, NYK Logisticscan track where are their fleets, trucks, ships,containers and so on.
  17. 17. NYK Logistics’ Technology
  18. 18. NYK Logistics’ TechnologyNYK Logistics uses the PARLMS’s technology(PAR Logistics Management Systems) whichprovide the tracking systems to thecontainers, vehicle and all kinds of fleets.NYK Logistics, Inc., has selected PARs GT 200Genset Tracking system for their fleet ofpower units.
  19. 19. NYK Logistics’ TechnologyBenefits of Genset tracking systems are :• Providing the container’s status• Maximize the utilization of assets• Offering the real-time fuel level monitoring• Bringing the new level of value of business aswell as to the NYK’s customers’ business.• Providing more security for the shipping andall transportations.
  20. 20. NYK Logistics’ TechnologyAccording to the benefits of satellite trackingsystems, NYK Logistics can provide more services tovarious industries. By the innovation of the trackingsystem, it can be integrated to the technology thatuses in the supply chain management.
  21. 21. NYK Logistics’ TechnologyThe results of the tracking systems to the supplychain management are either reducing the amountof stock keeping units in the inventory, providingmore reliability for the supply chain services. Theseare the reason why the NYK Logistics can win thecustomers’ satisfaction because they always findways to improve their services
  22. 22. Benchmarking OpportunitiesUsing a competitive (benchmark performance orprocesses with competitors) and functionalmethod (benchmark similar processes within anindustry) with public domain information, it can bediscovered that NYK logistic have opportunities ofimprovements in some specific business areas andspecific performances:
  23. 23. Benchmarking OpportunitiesWorld’s top 10 shipping lines Top 1st leading: Maket Operator TEU Capacity Share Ships APM- Maersk 2,031,886.00 15.5% 539 NYK 433,000.00 3.3% 119 Difference 1,598,886.00 12.2% 420
  24. 24. Benchmarking OpportunitiesMAERSK has been analyzed to see the improvement’s opportunitiesof NYK in the Vessel Performance Management, which has beenworked in the industry by the MAERSK Maritime Technologies,where they study and improve the Energy Efficiency, OperationalEfficiency, Hull, Propeller & Main Engine performance Management.Some specific application on the daily performances that can beapplied in NYK as benchmarking could be the followings:
  25. 25. Benchmarking - Vessel Performance Management1. Generating power from heatinstead of fuel: Waste heatrecovery (WHR) systems utilizeheat contained in engine exhaustgases to generate steam.2. Ballast Water Treatment: strategicpartnership to boost protection oflocal maritime eco-systems. Combinethe knowledge of ship technology,water treatment, and pumpingtechnology which has now resulted ina unique and sophisticated conceptbased on proven technology.
  26. 26. Benchmarking - Vessel Performance Management• Implementation of the SEA-Mate® Elemental Analyzer: • (1) save time compared to sending oil samples ashore for analyses. The results are ready within 6 minutes . • (2) We are able to monitor the iron content in scrape down samples from the main engine within minutes and from these results we have the capabilities to judge the condition of the cylinders while the engine is running.
  27. 27. Benchmarking - Vessel Performance Management• Implementation of the SEA-Mate® Elemental Analyzer •(3) As a result of the two factors above, we are able to optimize the cylinder oil consumption for each cylinder, thus being able to save on cylinder oil as well as maintenance cost. • (4) From the Calcium content in the cylinder oil you are able to measure the TBN in a reliable way if needed. • (5) From general oil samples from different machinery we are able to judge the condition of gear wheels, bearings etc. and save maintenance cost in the long run.
  28. 28. Deduction• There are more than five companies that have more marketshare and capacity than NYK, therefore could be manybenchmark opportunities in the industry in different businessareas in the organization. In this research project only publicdomain information was utilized, hence the benchmark scope’swas limited to one of the main business areas in the NYK.
  29. 29. NYK Super Eco Ship 2030- our concept ship in the future
  30. 30. Purpose and Target To make it clear what NYK need to technically develop in the long term including alternative energy To lead to think future system of shipping, such as cargo handling and traffic infrastructure To appeal to young engineers/students in the world that the development of the future ship is challenging and hopeful Alternative Reshape energy business model Super Eco Ship Future cargo handling Future traffic infrastructure
  31. 31. Advantages Reduce the ‘’Emission Zero’’ Reduction of CO2 Emission Reduction of weight Power generation with fuel cell Solar power Sails Increase of Max Loadable Capacity NYK Super Eco Ship 2030 video.wmv
  32. 32. Road to “ Emission Zero” Fossil fuel 2008 2020 H2 Solar, Wind 2050 Emission Zero H22030 Super Eco Ship Diesel Engine Diesel Generator Fuel Cell Battery Motor
  33. 33. Conclusions• For a thriving Supply Chain management NYK should deliver and integrate activities across areas of: Transportation, Warehousing, Information, and International management.• knowing their customers and understand their business and their Customers Customer• Comprehend their customers current supply chain design
  34. 34. Conclusions• Design customized, integrated solutions that synchronize the supply chain events to balance the responsiveness and efficiency within the supply chain.• Implement solutions to SCM based on: - Dedication to customers and their businesses - Quality, excellence and advanced information management - Superior global network integration - Flexibility and innovativeness their organization - A highly trained and professional workforce

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