From a Niche Market to a Multibillion-Dollar Business: Logistics Lessons to Localization Stakeholders

From a Niche Market to a Multibillion Dollar Business: Logistics Lessons to Localization Stakeholders Wagner Covos CEVA Logistics

Logistics is the management of the flow of goods , information , and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics involves the integration of information , transportation , inventory , warehousing , material-handling , and packaging , and occasionally security . Definitions A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer . Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. Transport is the movement of goods from one location to another.

Agenda
Introduction to CEVA
Logistics Market Evolution
Challenges for Growth
Summary
Food for Thought

CEVA: Merger of TNT Logistics and EGL
6.3 billion Euro revenue
54,000 employees
1,171 locations in 100 countries

Agenda
Summary
Food for Thought

Evolution Factory Point of Sales Before 1940

Evolution Factory Point of Sales 1940s
Freight concept
Eur 10Bn

Evolution 1950s Factory Point of Sales Warehouse Eur 30Bn
Buffer Stock
1956 - Ocean container

Evolution 1960s Factory Point of Sales Warehouse Eur 80Bn
Freight Management
Distribution Center
Inbound
Distribution Center
Inventory Management

Evolution 1970s Factory Warehouse Eur 120Bn
Suppliers planning (inbound)
Inbound Consol Center (feeding)
Inventory Management (Inbound / Outbound)
Suppliers Distribution Centers Point of Sales Inbound Warehouse

Evolution 1980s Factory Warehouse Eur 150Bn
Inside Logistics Revolution
Kanban / ‘Just in Time’ concept
Lean Concept
Supply Chain
Production linked with logistics
Material Management
Suppliers Distribution Centers Suppliers Point of Sales

Evolution 1990s Factory Point of Sales Warehouse Eur 220Bn Suppliers Distribution Centers Suppliers
Manufacturing Support
Line Replenishment
Inventory Planning
Special Packing
JIT in Distribution Centers
Globalization Challenges
Communication (IT)

Evolution 2000 - 2010 Factory Point of Sales Warehouse Eur 300Bn Suppliers Distribution Centers Suppliers
Assembly
Direct Buy
Trading Services
Web delivery
Home

Summary

4th Largest Global Supply Chain Company 0 50 100 150 200 250 300 350 Global Market Top 10 Companies € 300bn € 83bn 1 2 3 4 5 6 7 8 9 10 25,739 14,057 10,348 6,295 5,773 5,249 5,013 4,685 3,646 3,644 Company ’ 08 rev (Eur M) Global Logistics Market

This Matters! Logistics costs represent 7.8% of the world’s GDP

Summary 4.2Tr

Agenda
Challenges for growth
Summary
Food for thought

Challenges Global Resources Global Production Global Infrastructure

Result – Emergence of Multiple Global Supply Chains Asset-Light Integrated Solutions Combination of Freight Forwarding and Contract Logistics Assets ACR Value Added Services Outsourcing Rise of Contract Logistics for Efficient Supply Chain Management Asset Providers for Simple Transportation Needs Growth of Specialized Asset-Light Providers Asset-Based Evolution

What Drives Green – Some Early Drivers
“ It seems to benefit your reputation”
“ Everybody talks about it”
“ Governments are forcing us to act”
“ Flavor of the month”

Some New Supply Chain Skill Sets
Information management
Multi-culturalism
Supply chain design
Educate customers for outsourcing

Activities
Full supply chain operation and dress up of engines:
Parts Schedule and Purchase
Milk Run
Inventory management
Assembly
Sequencing
GM line feeding
Key Facts and Figures
Management of 30 suppliers both national and international
Year Production: 220K modules (2009)
More than 70 employees
Start Date
Oct/2006 – Dress Up
Apr/2009 – Direct Buy
Innovation

Summary

Agenda
Summary
Food for Thought

From this… Factory Point of Sales

… to Unparalleled Integrated End-to-End Supply Chain Solutions Supplier Pick-up
Outbound Logistics
Dedicated warehousing
Consolidation
Container stuffing
Inbound Logistics
Warehouse management
e-Fulfillment
Local Transportation Management Swaps and Return
Value Added Services
Lead Logistics Provider
Total Supply chain management consulting
Route optimization
Billing payment and claims management
Web-based tracking and reporting
Order management
User Control Tower
Ocean
Air
Land
Custom Brokerage
Origin services
Destination services
Port services
International Multi-modal Transportation
Sub-assembly
Inventory planning
Line replenishment
Special Packing
Slide

Agenda
Summary
Food for Thought

Food for Thought
How can the translation and localization market add value to its customers?
What are the boundaries to overcome?
Who is thinking outside the box?
How to turn threats into opportunities?
Freight company => Logistics Service Provider Translation company => Language Service Provider

THANK YOU! Wagner Covos [email_address]

From a Niche Market to a Multibillion-Dollar Business: Logistics Lessons to Localization Stakeholders

by Think Latin America

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From a Niche Market to a Multibillion-Dollar Business: Logistics Lessons to Localization Stakeholders Presentation Transcript