McGregor DHL Global Forwarding

McGregor - Schelte Halma, Supply Chain manager DHL Global Forwarding - Freek Hoogendorp, Project manager

McGregor – DHL Global Forwarding Inbound Logistics in de Fashion Branch

Agenda

1. Introductie McGregor 2. Introductie DHL Global Forwarding 3. Aanleiding 4. Doelstelling 5. Project plan, implementatie, waar loop je tegen aan 6. Afronding van implementatie 7. Is de doelstelling bereikt? 8. De toekomst

DHL Global Forwarding | Baarn| 2014

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DPDHL Overview


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Group Overview

Mail

Global Forwarding, Freight

Supply Chain

Express

• Delivers 70mn mail items to more than 40mn house-holds in Germany • DHL Global Mail largest network for mail distribution worldwide

• Global market leader in airfreight and among top two leading ocean freight services • Specialist in industrial projects and end to end transport management solutions • One of Europe’s leading road freight forwarders • 3,000 locations • Strong customer base (>50% of Forbes 500)

• Global market leader in contract logistics with 8.5% global market share • ~23mn square metres of warehouse space • 2,500 logistics centers, warehouses and terminals • Leading provider of corporate information solutions worldwide • Strong customer base built on long-lasting partnerships

• Market leader in the international time-definite express market in all regions outside the Americas • Presence in more than 220 countries and territories • 32,300 service points • 4,000 facilities • 250 aircrafts • 3 main global hubs


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Deutsche Post DHL – Corporate DHL Divisions

Express

Global Forwarding

Supply Chain

• Export services

• Air freight

• Import services

• Ocean freight

• End-to-end offering in contract logistics and industry solutions

• Domestic services

• Industrial projects

Williams Lea

• Optional services

• Transport management

• Business process outsourcing

• Industry solutions

• Customs

• Brand Services Agency – Tag

• Small business solutions

Freight • Full truckload

• Part truckload • Less than truckload • Intermodal transport • Customs


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DHL GLOBAL FORWARDING – Sector Expertise

ENGINEERING & MANUFACTURING

AUTOMOTIVE

CHEMICALS

CONSUMER

ENERGY

Proactive solutions providing control to respond quickly to changing market conditions

Secure, timely and cost effective solutions that bring value across the chemical sector supply chain

Improving your speed to market, reducing damage to products

Delivering to remote locations, planning and executing turnkey projects regulatory compliant, speeding up new market entry

Managing complex and far-reaching supply chains while offering strong operations, speed and reliability

FINANCIAL SERVICES

LIFE SCIENCES & HEALTH CARE

PUBLIC SECTOR

RETAIL

TECHNOLOGY

Financial logistic solutions with focus on security, high speed communications and proven reliability

Delivering pharmaceutical products globally, through a controlled transportation network

Providing operational excellence, security, planning and timely delivery of logistics services

Simplify your supply chain from design concepts to consumers, wherever your suppliers and markets are

Providing highly reliable, consistent, and secure integrated supply chain solutions globally


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DHL Retail Sector We are offering a totally integrated and tailor made supply chain solution including order management, supplier compliance, origin consolidation and VAS, transportation management and last mile delivery management. Sub Sectors: Fashion & Apparel: Textiles, Clothing, Footwear, Leather goods; Luxury Goods: Clothing, Accessories, Luggage; GMSP1: Large retail stores; THRC2: Hotels, Restaurants, bars, canteens, Other similar outlets; Specialty Retail: Concentrate on selling one merchandise category

KEY TRENDS

LOGISTICS IMPLICATIONS

• Largest consumption markets shifts to emerging markets

• Global retailers challenged by local infrastructural constraints & local regulations in emerging markets

• Customers value choice of buying experience (multi-channel sales)

• International sourcing continues to be dynamic in search of lower cost, reliability, quality & speed to market • Bulk ordering shifts to smaller orders & re-orders due to uncertain demand & inventory reduction • Information systems, a USP yesterday, are pre-requisite for survival today • Retailers using state of art supply chain as competitive advantage (e.g. Zara, Amazon) • Shorter Product Cycle with trend of moving from 2–4 buying seasons a year to now 6–8


• Increasing supply chain requirements of diverse sales channels (from hyper-market to e-fulfillment) • Shift in mft reliance on China to SEA or Indian Sub-continent; and to locations closer to markets • Shorter lead time, smaller buffer stock leading to higher demands on supply chain performance • IT system that talks to retailers’ entire supply chain system (order to cash) is critical to bus. success • Supply chain becomes core to bus. strategy/vision. Logistics is a business led decision • Supply chain & order manag. process more dynamic & demanding with higher fluctuations in forecasting

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DHL Retail Sector: Value Proposition

Expertise Industry Expertise and Know-How

Global Network, Local Presence

Reliability and Regulatory Compliance

Innovation and Customization

A Global Expert Community dedicated to serving you with industry competence

A network that covers where your suppliers and customers are – today and tomorrow

A wide range of services that is managed to consistently meet the highest performance standards in the industry

Solutions that fulfill your business demands across all channels and all segments of your Supply Chain

• Worldwide community of over 200 retail specialists • Customs and regulatory specialists available for advice especially in emerging and high growth consumer markets • Competence in Supply Chain Consulting and Network Design • Sub-sector focus on Fashion & Apparel and Luxury Goods

• Owned offices in over 150 countries covering more than 810 terminals & warehouses • Over 3 million square foot of facilities for VAS and consolidation at key sourcing areas • Regional hubs in major gateways such as Panama, Singapore, Hong Kong & Shanghai • Investments in emerging production areas and consumer markets

• Retail Competency Centers to manage the end-to-end flows of product and information down to PO/item level • Continual development of visibility and exception management solutions down to item level from factory to consumer • First Choice - six sigma approach to performance measurement and improvement

• Suite of transportation services to provide flexibility in transit times to meet retail demands • Tailor made Textainer for handling GOH shipped by LCL or Air • Regional distribution services Door-to-More™ - direct to store/consumers • International Supply Chain (ISC) provide supply chain management and origin services tailored to retail business


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Overview DHL services for Fashion • Tellen • Sorteren • Picking

• Packing • Labeling • Tagging • De-stitching

• Stitching • Kwaliteitsinspectie • Distributie • Warehouse Management

• Transporteren per luchtvracht, zeevracht of per truck, en ophalen en afleveren van zendingen bij de eindgebruiker of een distributie punt • DHL International Supply Chain Management DHL Global Forwarding | Baarn| 2014

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China Hub and Distribution Solution for Fashion

1) PO

ABC Garment Company 7) POD sent to ABC

2.1) Import Customs Clearance

1) Pre-alert

3) Cargo Arrival Confirmation

4) Delivery Order

DC 5) Cargo Dispatching Overseas Suppliers

2.2) cargo Arrival

2) cargo pick up and arrival Chinese Suppliers

2) cargo pick up and arrival


•

Tally

•

Sorting

•

Picking

•

Packing

•

Labeling

•

Tagging

•

De-stitching

•

Stitching

•

Quality Inspection

•

Distribution

6) POD Signed

Local Shop

5) Cargo Dispatching 6) POD Signed

Local Buyer

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Aanleiding McGregor

Inbound logistiek niet meer efficiënt:  Spreadsheet niet stabiel genoeg  Planning niet betrouwbaar genoeg

 Te weinig mogelijkheden om door te groeien met meer gebruikers  Wens om planning exception based te maken  Geen basis om een grotere stappen te maken  Betere aansluiting nodig met badge planning  Consolideren van shipments  Noodzaak om alle stakeholders beter te informeren,  Beter zicht op de kosten

 Betere invoice matching


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Doelstelling

Creëren van een stabiel platform met multi-user mogelijkheden, zoals:  Web based tool, voor iedereen toegankelijk, zonder lastige computer configuraties

 Real time informatie beschikbaar  Koppeling aan bestaand ERP systeem


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DHL INTERNATIONAL SUPPLY CHAIN


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DHL INTERNATIONAL SUPPLY CHAIN Solution that links the origin supply chain with the destination market requirements, resulting in a more cost effective and efficient supply chain with complete visibility and control through a single point of contact. DHL INTERNATIONAL SUPPLY CHAIN includes origin, freight and destination management services across all modes.

 Dedicated account management en ontwikkelingsresources, 1 contact punt binnen de organisatie.  Verantwoordelijk voor het ontwerp, implementatie en management.  Meer dan over 3 miljoen square feet warehouse op sleutelposities in de wereld. B.V. China met consolidatie services, value add en regionale hub services.  Services zijn verbonden en gekoppeld door 1 sterke IT visibility oplossing (GT Nexus Platform) zorgdragend voor purchase order, leverancier, carrier en bestemmingsmanagement met volledige rapportage.  Supply chain service level agreement, en Supply chain key performance indicators


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Voordelen voor McGregor 

Reduceren van de cycle tijd



Creëren van voorspelbare en betrouwbare transit tijden, alleen bezig zijn met de uitzonderingen



Terugbrengen van het aantal zendingen door meer orders per zending/containers te verschepen



Verplaatsen van arbeidsintensieve werkzaamheden naar de herkomst



Verbeteren van de distributie, planning en efficiency 

Reduceren van de ‘inventory carrying costs’



Besparing op de kosten per SKU/ order item



Verbeteren van de voorraad doorstroming, en op voorraad status



Reduceren van de arbeidskosten



Verbeteren van de container belading



Verbeteren van de leveranciers performance



Kostprijs per stuk voor transport kosten kunnen berekenen



Betrouwbaar IT infrastructuur



Geen investering in IT systemen, web-based tool



Betrouwbare financiële en liquiditeits planning


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Project plan - implementatie

Task Description

Due Date

MILESTONE: 1st Draft of SOP Complete

9-mrt-12

MILESTONE: Updated project plan completed and approved

16-mrt-12

MILESTONE: 2nd draft of SOP Completed

30-mrt-12

MILESTONE: GTN Data Entry Instructions Complete

6-apr-12

MILESTONE: GT Nexus User Set-Up and Configuration Complete

13-apr-12

MILESTONE: Invoicing process agreed and signed off

13-apr-12

MILESTONE: Full GT Nexus System Configuration Complete

20-apr-12

MILESTONE: All Open Purchase Orders in GT Nexus

20-apr-12

MILESTONE: GT Nexus User Training Complete

20-apr-12

MILESTONE: Operational Reports / Saved View s Created in GTN

20-apr-12

MILESTONE: Vendors fully briefed

20-apr-12

MILESTONE: Final version of SOP issued

20-apr-12

MILESTONE: Go Live w ith vendor bookings

25-apr-12


Date % Complete Complete

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Verleden, heden en de toekomst

Waar komen we vandaan, waar staan we nu, en waar gaan we naar toe


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Verleden

 Op basis van een enorm spreadsheet werd de planning gedaan met 1x per week updates  Geen controle over de vendors  Te laat of te vroeg leveringscontrole geheel manueel  Geen real-time order informatie beschikbaar

 Te weinig invloed op aanlevering procedure vendors  Geheel manuele invoer en controle  Geen rapportage mogelijkheden anders dan uit Excel  Cash flow planning van het manuele spreadsheet


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Heden  Real time visibility van de orders  Goed, gedetailleerd en onderbouwd KPI rapport, met inzichten die we voorheen niet konden krijgen.  EDI interface met het systeem voor uitwisseling van gegevens,  Real-time informatie, performance rapportage  Stuks prijs, per product voor de transport kosten, en luchtvracht- en zeevrachtkosten  Invloed in vendors performance en controle  Controle van de betalingen van de facturen aan de leveranciers via het systeem, en direct invloed op de cash flow  Pro actiever betrokken zijn van McGregor Logistieke afdeling bij het verschepen en betrokken bij de planning, het systeem helpt McGregor, niet meer zelf een database bouwen maar data aanvullen  Actief bezig met het beladen van de container, om de container efficiency te verhogen  Road en Air freight op tijd inzichtelijk , binnen 24 uur info beschikbaar


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Toekomst

 Inbound en outbound koppelen aan integrale planning  WMS systeem koppelen aan het order systeem, en het McGregor systeem (done)  Slimme koppeling van het DHL systeem en de badge planning in het systeem van McGregor  Nog verder terugbrengen van transport kosten door betere planning

 Quality check/control op origin  Labeling, tagging op origin, snake loading, shop ready distribution.  Laden op planning Waalwijk van de container op Origin.  Ready in store packaging op Origin


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Landed Cost Example Weekly Number of Units Shipped and Cost per Unit Cost/Unit

120000

€ 0,45 € 0,40 € 0,35 € 0,30 € 0,25 € 0,20 € 0,15 € 0,10 € 0,05 €-

100000

60000

40000 20000 0

1

2

3 4 Arrival week

5

Weekly Number of Cartons Shipped and Cost per Carton Cartons

Cost/Carton

5000

€ 9,00 € 8,00 € 7,00 € 6,00 € 5,00 € 4,00 € 3,00 € 2,00 € 1,00 €-

Cartons

4000 3000 2000 1000 0 1

2

3

4

EUR per carton

Units

80000

Voorbeeld van landed costs EUR per unit

Units

5

Arrival week


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Container Utilisation Example Last 12 Months Performance

20’ Container Utilisation Last 12 Months Average Utilisation Average of Target industry

YTD, 20' container fill stands at 21.9 CBMs Vs. a target of 18

30,0 25,0 Avg CBMs

21,8

22,4

20,0

40’ HC Container Utilisation Last 12 Months

15,0 10,0

Average Utilisation

5,0

70,0

0,0 CY-CY

65,0

CFS-CY

40’ Container Utilisation Last 12 Months Average Utilisation

Average of Target fill

YTD, 40' HC container fill stands at 57.9 CBMs Vs. a target of 56

Avg CBMs

Average of Target industry

60,0 50,0 40,0 30,0 20,0 10,0 0,0


Average of Target industry

Avg CBMs

YTD, 40' container fill stands at 44.1 CBMs Vs. a target of 35


60,0

58,1

57,6

CY-CY

CFS-CY

55,0 50,0 45,0 40,0

44,9

42,1

CY-CY

CFS-CY

McGregor KPI Pack | March 2013 DHL Global Forwarding | Baarn| 2014

26

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Modal Breakdown Analysis Example CY vs. CFS % of Volume Shipped by Service Mode in February

LCL 28%

CFS-CY 36%

45% of total February volume was shipped on a CY-CY basis. CY-CY 36%

% of Volume Shipped by Service Mode (Last 12 Months)

% of total CBMs

This means that a majority of stock shipped was either CFS (43%) or LCL (12%) which is higher than the YTD average (32% combined).

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

LCL CFS-CY CY-CY

McGregor KPI Pack | March 2013 DHL Global Forwarding | Baarn| 2014

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Scope en afsluiting

1. 2. 3. 4.

Aanleiding Doelstelling Project plan Implementatie, waar loop je tegen aan; dedicated account management, lange termijn zaken in de gaten houden. 5. Afronding van implementatie, wanneer is de implementatie klaar, blijft work in progress 6. Is de doelstelling bereikt? Ja die is bereikt 7. De toekomst: zie voorafgaande slides


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Lessens learned and do’s / don’ts

 Neem de tijd voor een goede implementatie  Commitment vanuit beide partijen is een absolute must  Implementatie op herkomst, en een goede introductie van het concept helpt voor een goed begrip bij de leveranciers, en alle andere steakholders  Probeer gedurende de uitrol vast te houden aan het oorspronkelijke plan, maar blijf ook flexibel  Gefaseerde uitrol werkt beter dan een complete ‘big bang’ uitrol    


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PLEASE INSERT CLASSIFICATION HERE

DANK U VOOR UW AANDACHT

McGregor DHL Global Forwarding

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