Grantham Shaun Novo

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Grantham Shaun Novo

  1. 1. Optimising Costs Through A Synchronised Supply Chain Shaun Grantham Marketing Manager UPS South Europe
  2. 2. <ul><li>Founded August 28, 1907, Seattle </li></ul><ul><li>Headquarters Atlanta, USA </li></ul><ul><li>2006 revenue 47,5 billion USD </li></ul><ul><li>Employees 427,700 </li></ul><ul><li>Package operations </li></ul><ul><li>2006 delivery volume 3,9 billion packages and documents </li></ul><ul><li>Daily delivery volume 15,6 million packages and documents </li></ul><ul><li>Service area more than 200 countris and terriotries </li></ul><ul><li>Customers 7,9 million daily </li></ul><ul><li>Operating facilities 1,788 </li></ul><ul><li>Delivery fleet 94,542 </li></ul><ul><li>UPS jet aircraft 282, 8th larget airline in the world </li></ul>Who is UPS - Small Package delivery
  3. 3. <ul><li>Supply Chain Solutions </li></ul><ul><li>Key services Logistics and distribution; transportation and freight (air, sea, ground, rail); freight forwarding; international trade management, and customs brokerage. </li></ul><ul><li>Specialty services: Service parts logistics; technical repair and configuration; supply chain design and planning, returns management </li></ul><ul><li>Facilities 936 facilities in more than 120 countries; 10.7 million sq. m. </li></ul><ul><li>Freight </li></ul><ul><li>Key services Leading provider of less-than-truckload services coast-to-coast </li></ul><ul><li>Delivery Fleet 6,792 tractors; 22,846 trailers </li></ul><ul><li>Facilities more than 215 service centres </li></ul>Who is UPS - Supply chain and freight
  4. 4. <ul><li>Increased global trade </li></ul><ul><li>Asia and China as manufacturers of goods and massive potential markets </li></ul><ul><li>Consumer pull – power increasingly resides with individuals </li></ul><ul><li>Complex and continuously changing business environment </li></ul><ul><li>Five universal business plan challenges: </li></ul><ul><ul><li>Growing by accessing new markets </li></ul></ul><ul><ul><li>Improving customer service </li></ul></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Improving cash position </li></ul></ul><ul><ul><li>Enhancing productivity </li></ul></ul><ul><li>Supply chain executives can drive profitability if they closely align their supply chain strategies to the five universal challenges </li></ul><ul><li>The supply chain as a key driver of a company’s value and a revenue generator </li></ul>Global trends and logistics
  5. 5. Traditional Supply Chain <ul><li>Hierarchical </li></ul><ul><li>Inflexible </li></ul><ul><li>One-step IT </li></ul><ul><li>In-house Logistics </li></ul><ul><li>Multiple Carriers </li></ul>New Supply Chain <ul><li>Dynamic/complex </li></ul><ul><li>Flexible </li></ul><ul><li>Supply-chain IT </li></ul><ul><li>Collaborative 3rd Party Logistics </li></ul><ul><li>Single Integrated Carrier </li></ul>
  6. 6. UPS: A single source service provider covering the entire supply chain Package Delivery <ul><li>E-Commerce </li></ul><ul><li>Financial Services </li></ul><ul><li>Network Management </li></ul><ul><li>Logistics </li></ul><ul><li>Supply Chain Management </li></ul><ul><li>Freight Forwarding </li></ul><ul><li>Customs Brokerage </li></ul>
  7. 7. Offering integrated services across the supply chain
  8. 8. Synchronising global commerce <ul><li>Today’s global and complex supply chains require the movement and management of… </li></ul><ul><li>Regardless whether you are selling goods to a couple of customers out of your garage or if you are running a multinational organisation with thousands of customers all over the world. </li></ul>Goods Information Funds
  9. 9. <ul><li>Based in Eindhoven, The Netherlands </li></ul><ul><li>More than 37,000 employees </li></ul><ul><li>Present in 20 countries, sales </li></ul><ul><li>organization covering 60 countries </li></ul><ul><li>Annual revenue of $4,96 billion in 2006 </li></ul><ul><li>Producing semiconductors and software for mobile communications, consumer electronics, security applications, contactless connectivity, in-car entertainment and networking </li></ul>UPS Customer – NXP Semiconductors The Company
  10. 10. <ul><li>5 industrial warehouses across Asia </li></ul><ul><li>Service components and parts need to be rapidly and reliably shipped from one continent to another, Asia to Europe </li></ul><ul><li>Fragmented European supply chain with 12 logistics providers </li></ul><ul><li>Lack of reliability and flexibility </li></ul><ul><li>Limited visibility and control of the transportation and distribution process </li></ul><ul><li>Lengthy order to delivery time and high rate of error due to manual processes </li></ul>UPS Customer - NXP Semiconductors The Challenge
  11. 11. <ul><li>Redesign of the Asia to Europe distribution infrastructure to optimise the transportation chain </li></ul><ul><li>Single logistics provider offering a complete service on a global scale </li></ul><ul><li>One streamlined dock-to-door solution </li></ul><ul><li>Direct delivery to retailers in the destination country (last mile) </li></ul><ul><li>A n integrated, multi-modal service that combines air freight and customs clearance with package and LTL delivery </li></ul>UPS Customer - NXP Semiconductors The UPS Solution
  12. 12. UPS Customer - NXP Semiconductors The UPS Solution – Trade Direct Air Consolidate Shipment Freight Clear Customs Multimodal Transportation Deconsolidate Shipment Delivery To End Customer Full Visibility: End-to-end tracking provided throughout the supply chain
  13. 13. <ul><li>Faster time to market – from 48 to 72 hours instead of 8 days </li></ul><ul><li>Less paperwork and reduced customs fees (consolidated customs clearance) </li></ul><ul><li>Reduced transportation costs (consolidated air transportation) </li></ul><ul><li>Less bureaucracy, lower costs (one integrated bill for all transportation costs) </li></ul><ul><li>Reduced inventory costs </li></ul><ul><li>Streamlined process: no need to manage multiple vendors </li></ul><ul><li>Single contact for the entire distribution process, one point of accountability </li></ul><ul><li>Full end-to-end visibility with UPS technology </li></ul><ul><li>Optimised customer service </li></ul>UPS Customer - NXP Semiconductors The UPS Solution – Benefits
  14. 14. <ul><li>Based in Milan, Italy </li></ul><ul><li>Founded in September 2000, now established as the global e-commerce partner for leading fashion Brands </li></ul><ul><li>Has operations on three continents: Europe, North America and Asia </li></ul><ul><li>Serves 28 countries </li></ul><ul><li>Employees: appr. 100 </li></ul><ul><li>More than 230,000 satisfied customers </li></ul><ul><li>Received 13 awards as best e-commerce site </li></ul><ul><li>Sells exclusive products from Italian and international designers online, a savvy selection of end-of-season clothing and accessories at accessible prices including vintage collectibles </li></ul>UPS Customer– YOOX.com The Company
  15. 15. <ul><li>A growing business, revenue has doubled each year for the past six years </li></ul><ul><li>Continuously changing needs and customer expectations </li></ul><ul><li>Need of a logistics partner able to reach reliably, rapidly and efficiently a growing number of customers and markets </li></ul><ul><li>Assessing new markets, reducing need for local investment </li></ul><ul><li>Customer satisfaction and loyalty as a key to success and growth </li></ul>UPS Customer – YOOX.com The Challenge
  16. 16. <ul><li>The right product mix (flexibility): UPS Express , which offers time definite delivery and UPS Expedited , which offers day definite scheduled delivery </li></ul><ul><li>UPS Returns – pre-printed label added in the outbound shipments with necessary information for a customer return, or printable via Yoox website </li></ul><ul><li>UPS COD: customer can pay upon receipt </li></ul><ul><li>UPS Quantum View : customers are proactively alerted in case of delivery exceptions </li></ul><ul><li>UPS World Ease : multiple packages to many destinations in the same country clear customs as one consolidated master shipment and then consolidated for final delivery directly to end customers </li></ul>UPS Customer – YOOX.com The Solution
  17. 17. <ul><li>Global services able to meet changing needs </li></ul><ul><li>Excellent customer service </li></ul><ul><li>Saving time and money </li></ul><ul><li>Costs reduction for warehousing, inventory and shipping </li></ul><ul><li>Increased focus on core competencies as UPS manages shipping process </li></ul><ul><li>Reliability </li></ul><ul><li>Value added servcies at no extra cost </li></ul>UPS Customer – YOOX.com Benefits
  18. 18. <ul><li>“ YOOX’ multinational technological </li></ul><ul><li>supply chain platform has reached a </li></ul><ul><li>high level of effectiveness and </li></ul><ul><li>performance resulting in the 98% of in </li></ul><ul><li>time deliveries worldwide. This is </li></ul><ul><li>possible thanks to a consolidated </li></ul><ul><li>partnership with UPS for international </li></ul><ul><li>deliveries.” </li></ul><ul><li>Federico Marchetti, Founder and </li></ul><ul><li>CEO of YOOX </li></ul>UPS Customer – YOOX.com Customer Benefits
  19. 19. <ul><li>Globalisation impacts transportation and logistics industry </li></ul><ul><li>Supply chain is a key to success allowing drastic cost reductions through: </li></ul><ul><ul><li>S treamlined distribution processes </li></ul></ul><ul><ul><li>Optimised asset utilisation </li></ul></ul><ul><ul><li>Managing uncertainty through flexibility </li></ul></ul><ul><li>Supply chain is a key driver for increacing profitability through: </li></ul><ul><ul><li>Increased customer satisfaction and loyalty </li></ul></ul><ul><ul><li>Enabling competitive differentiation </li></ul></ul><ul><ul><li>Allowing companies to focus on their core competencies </li></ul></ul>Recap
  20. 20. <ul><li>&quot;It's no longer about taking advantage of economies of scale, but more about taking advantage of economies of expertise” </li></ul>Bob Moffat, Senior Vice President of Integrated Supply Chain, IBM

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