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Bill Stankiewicz Syncreon
- 1. Customisation of FulfillmentServices European Hi-Tech Summit Amsterdam 26-27 September, 2007
- 2. Agenda • A New Company: s y n c r e o n • Customisation of Fulfillment Services • How? - Best Practices • Case Study Page 2
- 3. Company Overview A PremierGlobal Diversified Company + = • Privately owned Irish Company, founded in 1969 in Ireland, HQ in Dublin • In January 2007 Walsh Western completed a major acquisition of TDS Logistics • The new group “syncreon” is a specialised provider of highly customised supply chain solutions critical to the customer’s success • Scale • FY 2006 combined revenue of $660m in Technology and Automotive Logistics • 9,000 direct employees world-wide • Global footprint with coverage in 4 continents • Proven Track Record • Engineering & BPI, IT/Systems, Quality and Operational Performance • Responsiveness and speed to support customers with major challenges • Financial stability and a sound platform for future growth, 1.0 b USD by 2010 Page 3
- 4. Company Overview Industry Verticals and Service Offering Group Management with Key Central Functions Technology Industry Vertical Transport – 4PL Supply Chain M. Pack Design Specific Functions Freight F. Fulfilment Outbound Outbound Transport Technology Technology Reverse Inbound Inbound Inbound Reverse Industry Vertical DITM MRO Operations Mgt Specific Services Business Development Engineering and IT Freight Forwarding & Transport Management Technology – Service Offering: Inbound Logistics: Subassembly, kitting, testing, sequencing and JIT delivery to manufacturing process Outbound Logistics: Value added fulfillment services - VMI, picking, kitting, custom packing, configuration, personalization and DITM Reverse Logistics: Customer collection, classification. testing and value or disposal management Freight Forwarding: FTL and LTL, air and ocean TM and 4PL: Supporting inbound, outbound and freight forwarding operations Page 4
- 5. Company Overview Global Footprint Canada UK Belgium Poland Germany Mississauga Ellesmere Port Genk Gliwice Dusseldorf (3 ) Hagersville Hinckley Brussels Lodz Emden Laval Warsaw Frankfurt mro London Hamburg Oshawa Hannover Port Colborne Ireland Ingolstadt Tillsonburg Dublin Niederaula Windsor Cork Potsdam Limerick Regensburg Saarlouis Stuttgart USA Netherlands Atlanta Tilburg (2) Auburn Hills Belvidere, IL Brownstown, MI Chicago, IL Dundee, MI China Jefferson North, MI Kansas City, MO Shanghai Mt. Pleasant, TN Shenyang mro Brownstown, MI mro Chicago, IL mro Indianapolis, IN Brazil Norfolk, VA Riverview, MI Santo Andre Sterling Heights, MI Curitiba Warren, MI Santo Andre LOC Walton, Kt San Bernardo Technology – 18 Sites Additional countries cover through distribution include France, Greece, Italy, Czech R., Switzerland. Automotive – 34 Sites Page 5
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- 7. Customisation of FulfillmentServices
- 8. Customisation of FulfillmentServices Introduction • Customisation can provide significant value to the supply chain • This presentation focuses in outbound logistics covering fulfillment activities and distribution of finished goods • Significant value = Continuously exceeding customer expectations Implement Plan Operation At Every Stage Value RFQ Analysis BPI Page 8
- 9. Customisation of FulfillmentServices Introduction • Resulting in direct and indirect savings through a higher degree of efficiency and Zero defects: Innovative and creative ideas, positive impact on SP and RFQ Analysis customer own operations / Supply Chain Plan Robust allowing the customer to focus on core competencies Implementation Shorter implementation lead time with Zero defects Theoretical = actual requirements = no re-engineering need Operational Best practices and Best in class performance BPI Improvements are continuously identified and implemented Page 9
- 10. Customisation of FulfillmentServices Introduction • What is required for a 3PL / 4PL to successfully implement such level of customisation? • Engineering competence • Specific industry and manufacturing knowledge • IT/systems capability • Methodology RFQ Analysis Plan Implementation Operational BPI • Empowerment • Focus to design & implement the most effective solution rather than forcing an existing one to fit the project requirements Page 10
- 11. Customisation of FulfillmentServices Introduction • What is required ……..? • Strategy to maintain long term customer relationships • A sustainable and realistic business model under which a business case exists for the project cycle Customisation costs (design, implementation, ……) are offset with a higher level of efficiency Customisation Operating Costs Costs Page 11
- 12. Customisation of FulfillmentServices Information Technology Applications Overview Contract Logistics Freight Management Supply Chain Execution Supply Chain Visibility Road/Air/Sea Freight • RF WMS • SynView360 • Transport Management Warehouse Management 3600 visibility CIS Radio Frequency Driven Real-Time Web Portal IFMS Integrated MHE & Conveyors Supports both 3PL & 4PL ERP integration Inbound Visibility & Milestones • EPOD/POD FC & Distribution Track & Trace EPOD capture CIM/DITM Electronic POD Continental In Transit Merge EDI Integration with carriers • Vehicle Tracking Dynamic In Transit Merge VMI and COI Inventory Visibility CIS Transaction Reporting • Reverse Logistics MIS • Customs Docs EPRC & APRC VMI Min/Max Breach Reporting Icarus on-line Aged Inventory Analysis • Bond/customs KPI Reporting WMS Integration to DMS/CMS Integrated to Call Centre Developed and supported in-house Customised solutions to EXACT customer requirements Fully Integrated to Customer ERP Automated Conveyoring & Sortation solutions Page 12
- 13. Customisation of FulfillmentServices Methodology and Business Model • Business Process Improvement (BPI) program initiated in 2002 • BPI integrating 6 Sigma & Lean: • Design of new processes / solutions • Increase operational efficiencies & elimination of waste • Meet competitive cost challenges and create customer value 80 20 NPI (DMADV): New DMAIC: Improve existing processes, services, business processes, services, and and facilities to 6 Sigma facilities to 6 Sigma quality quality 308 Leverage and sustain the gains achieved by improvement and creation Page 13
- 14. Customisation of FulfillmentServices Methodology and Business Model • Engineering Design: New process / product - DMADV methodology Define Measure Analyze Design Validate Define the Measure and Analyze the Design Verify the project determine process (detailed) design goals and customer options to the process performance customer needs and meet the to meet the and ability to (internal specifications customer customer meet and needs needs customer external) needs deliverables • Improve Existing Process - DMAIC Improve Control Page 14
- 15. Customisation of FulfillmentServices Methodology and Business Model Typical effort level over a project life cycle Champion/Sponsor Project Lead and Team Team and Process Owner Level of Effort Define Project M A D V Integrate into Daily Work Page 15
- 16. Case Study –Outbound Logistics Customer A
- 17. Case Study Outbound Logistics for Customer “A” Simplified Supply Chain Inbound Supply Chain Outbound Supply Chain Customers Value Components Contract Systems Added • Disk drives Manufacturer Resellers s PC, laptop • Semiconductor • A DITM Corporates, Regional DITM • Housings • B Hospitals, Fulfilment Etc. • Etc. VMI Hub1 Consumers Peripherals • Monitors • Printers VMI • Etc. Reverse Logistics Key Product owned by supplier Systems Peripherals Complete Orders Page 17
- 18. Case Study Outbound Logisticsfor Customer “A” Fulfillment: Specific services that are integrated: • Receiving and warehousing • Vendor managed inventory • Order processing • Personalisation • Kitting, labelling Page 18
- 19. Case Study Outbound Logisticsfor Customer “A” Fulfillment: Specific services that are integrated: • Warranty and serial number capture • Diagnostic and quality checking • Country specification & localisation • Pack-out • Merge (complete orders) Page 19
- 20. High Level CaseStudy Outbound Logistics for Customer “A” Fulfillment Centre: • High quality multi user site • Shop Floor = 350,000 sq ft • Office area = 12,000 sq ft • Height 53 ft, 37 Dock Doors • Secure site - TAPA class A • Approx. 600 employees Page 20
- 21. High Level CaseStudy Outbound Logistics for Customer “A” Advantages of a Multi-Share Facility: • Synergy Sharing • Economies of scale • Volume Fluctuation Flexibility • Best Practices w/o compromising confidentiality • Staffing and Cross Training While maintaining the same level of customisation!!! Page 21
- 22. Case Study Outbound Logisticsfor Customer “A” Fulfilment Solutions: Performance: • Dock to Stock < 2 hours • Inventory Accuracy 99.98% + • Fulfillment Rate 0 backlog 99.97% + Page 22
- 23. High Level CaseStudy Outbound Logistics for Customer “A” 4 PL Approach Pan-European Network I N T Carrier Selection Criteria: E • IT/System Platform Tech G Robust and secure networks able to handle Hi products R • Established range of services meeting the needs of the B2B & B2C market sectors A • T Multiple in line carriers per Country based on differing • ‘T&T’ information integrated into client’s Customer Service consignment volumes and indemic network profiles website E • A commitment to develop IT capabilities to match the • IT flexibility enables the rapid connectivity of D Center syncreon’s and customer’s expectations new partners. e-POD • Financially stable organisations • Internet-based Milestone Reporting service • Flexibility-Ability all orders are processed, personnel service allowing access to authorised client range of Ensure to provide the necessary options atsuppliers and completed while a commercially viable rate and executed • Customers Ordermonitoring performance and and Trailer-level milestone tracking driving CIP for CIM-RF application • Delivery Performance 99% + • POD Entry within 48 Hours 99% + • MWD <150 per million (5.2 sigma) Page 23
- 24. Thank you foryour attention Page 24