slide library 11/04/2014 p. 1 - enfasis.com

11/04/2014 p. 1 Slide Library

Collaborative Strategies – Integration of the Supply Chain

Integrated Logistics

Florian Paugam – Vice President Sales & Marketing

April 2nd, 2014

A Snap Shot of the Global Logistics Market

Growing Demand for End-to-End Services

Globalized and fragmented supply chains get predominant in the market

Market volatility drives the need for synchronization that results in end-to-end

visibility

Customers tend to source logistics management to avoid technology investments and

learning curve

Industry wants to access best practices, cost variabilization and accelerate time-to-

value

Supply chains are progressively following end-to-end industry/company specific

standards

11/04/2014 p. 3 © Kuehne + Nagel Integrated Logistics

Integrated Logistics Covers All Transport and Service Modes

Along Customers’ Supply Chain

Inbound Logistics

Supplier Receiving

Customer Manufacturer End Consumer

Outbound

Logistics

Reverse

Logistics

Integrated Logistics End-to-end Management across the supply chain

True one-stop shop and integrated global IT solution

Air Freight Sea Freight

Warehousing &

Distribution

Last Mile /

Integrators Road & Rail

Compliance &

Documents


Transport Inventory Import Duty, Customs

& Taxes Warehousing

Rates

Modes

Equipment

utilization

Special handling

Capital expenditure

& Financing

Obsolescence

Damage

Perishability

Duty on Transport

Broker fees

Value Added Tax

Documentation

Equipment capacity

Storage space

Blue collar

Management and Information Systems

Reducing Costs and Maximising Service Levels

Focus Areas of Cost Optimization


Visibility

Monitoring

End-to-End

Visibility and comprehensive information

Performance management and cost control

Managed end-to-end solution integrating all transport and service

modes across the supply chain

Integrated global IT solution including centralized billing

One-face Single point of contact

Technology

Integrated Logistics Creates Additional Value through End-to-

End Management

Synergies from Logistics Control Centre environment Synergy


Framework for Supply Chain Diagnostic


Industry Specific Solutions Address Customer Requirements

Aerospace Automotive FMCG High-Tech

Industrials Oil & Gas

Pharmaceuticals Retail


Brands

Pain Points That Drive A Need for Integrated Logistics

FMCG

1st Tier 2nd Tier Intermediaries

Agriculturals Mega

Brands Raw & Pack

Materials

(Fats, Oils,

Plastic ,

Films,

Flavourings,

Ingredients)

Chemicals

Industrials

Speciality

Brands

Private

Labels

Low upstream control

Capacity gaps in emerging regions

Pressure to reduce cost and capital

Poor demand forecast / supply performance

Cost too high / distribution not agile enough

Packaging optimisation not considered 1

2

3

4

5

6

5 5

5

1 2 3 4

6

Global Brand

Owners

Wholesalers

Retailers


FMCG Specific Solutions Achieve Significant Improvements

Identified Pain Points Specific Solutions

Low upstream control

Pressure to reduce cost and capital

Capacity gaps in emerging regions

Poor demand forecast / supply

performance

Packaging optimisation not

considered

Cost too high / distribution not agile

enough

Vertical integration and management

of suppliers and inbound deliveries

Reengineering of supply lanes

Procurement services to assess and

develop service providers

Inventories close to consuming

factory (=vendor parks)

Packaging and payload projects

Differentiation fast vs. cost effective

/ horizontal collaboration


Customer

ERP

Customer

OMS

Customer

CRM

3PL

TMS

Information Systems Provides a Service-Oriented

Architecture

Partner

Application

Layer

Master

Data

Other

Systems

3PL

WMS

Transport

Mgmt.

Services

Order

Mgmt.

Services

Inventory

Opt.

Services

Whse

Mgmt.

Services

KN

Application

Layer

Master

Data

Services

Reporting Visibility

The Integrated Logistics enabler approach is operated as a fast track plug-in to

existing customer systems using Global Enterprise Service Bus.

Scalable and flexible architecture allows for seamless template integration

with multiple external system and data sources.


Implementation Management with Dedicated Teams

Follows Proven Methodology to Set-Up Your Business

Hand-Over & Kick-off

Project Setup

Business Requirement Gathering

Process-, Solution and IT-

Architecture Design

Operational Setup

Interface & IT-Enabler Configuration

Operational Setup & Trainings

User Acceptance & System Integration

Testing

Migration

Go-Live & Hand-Over

Post-Go-Live Support


The Think Big, Start Small and Scale Fast Approach Drives

Improvement

Approval to

proceed

First success propelling

further changes

Improvements

as envisaged

Organisational support

Scope, actual metrics and

competitive requirements

Business case

Verification of electronic

data provision and

standard processes

Sustainable proto-version

with reduced functionality

and integration

Deploy Value Adding

Projects (low dependency

on additional software)

Learning / adaptations

Functional enhancements,

if required

Deployment to full scope

sequenced per market,

factory or supplier

Extended Value Adding

Projects

Think BIG Start small Scale fast


Customized and modular

approach

Integrated plan-build-run

phases

Sustainable Competitive Advantage

Cumulatively Encompasses All Features

Transparency &

Control

Zero

disconnect in

customer

engagement

cycle

Management and

integration

services

Industry

Expertise

Strong Change

Management

Continuous

improvement

and innovation

Capabilities in business

process (out)-sourcing field

Independent from

execution services

modes

Experience, hands-on,

scalability and speed

Gain sharing models
