the p ooling
DESCRIPTION
The P ooling. A tough equation to be solved. Reduce the Stock. Improve delivery reliability. Reduce carbon footprint. Increase service level. Keep Logistics costs under control. H istor y & Origins of Pooling Solution. Pooling Concept & Solutions presentation to customers. - PowerPoint PPT PresentationTRANSCRIPT
The PThe Poolingooling
Keep Logistics
costs under control
Reduce the Stock
Increase service
level
Improve delivery
reliability
Reduce carbon
footprint
History & Origins of Pooling Solution
2001
Creation of a Supply Chain Mgt Expertise >> Definition of high value services End of 2001
Pooling Conception following requests from customers & prospects to massify their flows
June 2002
Pooling Concept & Solutions presentation to customers
June 2003
Pooling becomes real thanks to 2 pilote producers
July 2003 - Oct 2004Pilote Implementation + VMI Dpt Creation+ Set-up of Flows Coordination Tools + Multiple contacts with Retailers
Oct 2004Start-up of 1st VMI Pilote + Investment in more powerful tools
2005SITL Conference
Award for Innovation
2005 to date...Development of new pools & deployment of existing ones
2014„Supply-Chain King” Award for SPHINX Pool
Definition of Pooling in FM Logistic
Producer A
30 pallets
1 delivery every 5 days
Producer B
1 delivery every 8 days
14 pallets
Consolidation of producers logistics flows in order to increase delivery frequency & dropsize towards retailers Distribution Centers
1 delivery every 4 days
Retailer Distibution Center
26 + 7 pallets
Requirements for Pooling set-up : multi-producers platforms
MMulti-producers Strategyulti-producers Strategy
>> FM Logistic multi-producers platforms are essential assets and lever of performance for Pooling implementation, thanks to mutualisation & resources optimization under one single roof.
>> Pooling solution might be implemented only with common Inbound & Outbound points for producers.
Flows Piloting
From easiest… Implementation of deliveries in combined loading in agreement with retailers
• Agreement with each retailer on days & time of combined deliveries for all involved producers in the same vehicles
• Possibility for some retailers to manage group of suppliers and optimize their Inbound Transport
…to most advanced solutionsMutualized Vendor Managed Inventory Process
• Mutualized VMI (FM Logistic) allowing a dynamic allocation of quantities proposed by producer, depending on real needs (no fixed lot size)
• Each producer gets access to its data (confidentiality management in the tool), manages parametrization and remains responsible for orders proposal in regards to its own conditions with the retailers
• VMI Tools used : OCS & EWR MP
FM Logistic Role : FacilitatorRetailers
Producers
Retailers Expectations : Answers from the Pooling
Flows massification is a collaborative approach between producers supported by retailers :
Improve the on-shelf availability Improved reactivity thanks to increased frequency Securing transport thanks to flows balancing and vehicles optimization Piloting of the stock level by suppliers (VMI)
Improve the cashflow Stock reduction due to increased frequency
Reduce Carbon Footprint Through better vehicles optimization
A WIN-WIN SOLUTION
Improvement of on-shelf availabilityIncrease transportation reliability
Decrease on stock levelContribution to reduction of CO2 emissions
EN
VIR
ON
ME
NT
Global Supply Chain added-value creation
+0,2 à +1,5 points
Service rate+0,2 à +1,5 points
Service rate
+5 to 10
points+5 to 10
points
15 to 30%
Decrease depending on
producers/retailers15 to 30%
Decrease depending on
producers/retailers
- 30 to 35 %
CO2 emissions- 30 to 35 %
CO2 emissions
FM Logistic Pooling in France
Cosmetics
Since 2005
Personal Care
Multipick processSince 2011
Grocery
Home Care
Since 2013
Grocery
No VMI, multipick Pool
‘SPHINX’ : The partners
Intersnack NutrimaineHeinz Kimberly Kellogg’s
S P H I N K KX
Sara Lee
Maison du Café
1.500 SKU 1 million pallets delivered / year
1,4 billion € Sales
1 multi-pick Pool
Since 2009, North of Paris
Situation at project Start : Beginning of 2012
1 Grocery Pool
Since 2004, North of Paris(with FM Logistic)
1 Coffee Pool
+ Cadbury
Since 2004 near Orleans
1 „single” producer
North of Paris(with FM Logistic)
SPHINX
1 single producer
Lyon area
Situation : End of 2012
Pool SPHINXwith 7 producers from North of Paris (Longueil Sainte-Marie) :
SPHINX
SPHINX
“Pooling” docks area
Delivery Notes
Entry Gate
Pooled orders
Pooled orders
Pooled orders
Pooled orders
Pooled orders
Pooled pallets
PoolPool
PoolPool Control Tower
Physical process
Organization
Mutualization of storage for the producers : 7 producers under one single roof : 100 000 sqm warehouse dedicated to pooling 1 million pallets flow per year A migration plan from December 2011 to Mid September 2012
Transport Control Tower : Delegated to IPS
Process of mutualized Vendor Management Inventory :• Mutualized VMI (FM Logistic) allowing a dynamic allocation of quantities proposed by
producer, depending on real needs (no fixed lot size)
• Each producer gets access only to its own data (confidentiality management), manages parametrization and remains responsible for orders proposal in regards to its own conditions with the retailers
VMI Tool selected by the pool : OCS Data confidentiality management Groundfloor pallets algortyhm
SPHINX
Results in line with expectations one year after start-up
SPHINX