All posts by ianakhilchenko

Kuehne + Nagel Group for Iveco

I find this case interesting and recommend you to read as it tells how Iveco solve the problem to transport to Russia by establishing a partnership with a huge logistics company Kuehne + Nagel, which helps Iveco to enter to the Russian market.

BACKGROUND

Iveco designs, manufactures and markets a wide range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire-fighting, off-road missions, defence and civil protection.
The company which is part of the Fiat Industrial Group employs a staff of more than 26 000. It manages production sites in 11 countries throughout Europe, Asia, Africa, Oceania and Latin America, where it manufactures vehicles featuring the latest advanced technologies. 5 000 sales and service outlets in over 160 countries guarantee technical support around the globe.
Since 2001, Kuehne + Nagel has been providing various logistics services to Iveco in several countries. On a total of 300 000 square-metres of warehouse space, up to 160 000 stock-keeping units are stored per depot and well over 60 000 tons of incoming and outgoing cargo are handled annually, which result from nine million order lines ranging from small components to entire engine blocks and cabs. With the responsibility to deliver the whole aftermarket, Kuehne + Nagel is distributing the Iveco stock via overnight shipments by its Europe-wide automotive distribution network, utilizing innovative processes such as pick-by-voice technology as well as RFID and Internet-based tracking & tracing of shipments.

Here are more commercial video, but it explains what is the company Kuehne + Nagel is about.

 

That video is interesting as it explains the logistics and warehousing system in the european part.

CHALLENGE

Facing an increasing market demand and strong business growth also in Russia, Iveco in 2008 decided to entrust Kuehne + Nagel with warehousing services as well as overland transportation services in this country too. To fully cover the supply of all of Iveco’s service centres throughout Russia, both a suitably located centralized logistics centre and a powerful domestic delivery network was needed.

SOLUTION

With over 63,000 employees at more than 1000 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics providers. In Russia, where in 1992 it was among the first international companies to establish its own organisation, today a workforce of around 800 people in 17 locations provides a complete range of transport and logistics services and operates facilities with a total warehouse space of more than 131 000 square metres.
Kuehne + Nagel’s existing warehouse in Sholokhovo, strategically located near Moscow, turned out to be best-suited for the specific needs of Iveco. In this facility, the logistics company dedicated more than 2 500 square-metres with a total of 16 500 store cells exclusively for the vehicle manufacturer’s spare parts. The storage space includes shelf zones with sections for fragile and outsized items, zones for floor storage of bulky freight (such as cabs, chasses and hoods) as well as a special entresol space with various cells for small parts. The majority of the spare parts are sent from Iveco’s distribution centre in Turin, where daily over 100 articles destined to Russia are handled. Kuehne + Nagel transports these regular shipments with four to five weekly FTL by road via Slovenia, Hungary, Slovakia and Ukraine – a journey which takes an average of 8 days.
In case of express orders, this time can be drastically reduced using airfreight mode. On behalf of Iveco, Kuehne + Nagel also takes full care of customs clearance, being particularly experienced in this respect in Russia. Except outsized cargo, which is transported in bulk, Iveco spare parts are typically shipped on pallets which are fully labelled with all necessary information about the shipment. Glass components are most complex to transport and can easily be damaged, which is why Kuehne + Nagel packages and stores these with utmost care.
In order to optimize both customs clearance and the subsequent unloading of the trucks, Kuehne + Nagel and Iveco have jointly worked out intelligent and efficient loading schedules.
Since 2012, Kuehne + Nagel is also managing the door-to-door distribution of Iveco spare parts throughout Russia. By daily truck departures from the Sholokhovo warehouse, approximately 1500 shipments are annually delivered to over 40 sales and service outlets of Iveco in the country.

RESULTS

Based on its long-standing experience as logistics provider to the international automotive industry and its powerful road transportation network, Kuehne + Nagel has helped to increase the efficiency and responsiveness of the supply chain of Iveco’s spare parts division to and throughout Russia. For Iveco, the logistics solution designed by Kuehne + Nagel has been a key leverage to further improve customer satisfaction and parts business profitability in an increasingly competitive aftersales market.

www.kuehne-nagel.com (http://www.kn-portal.com/)

KFC’s supply chain

KFC’s supply chain can be summed up in 3 process:

  • First, raw material is procured.
  • All product preparation at the branch.
  • Warehouses replenish each branch according to requirement.

 kfc

The main requirements planning

Manager of the store orders the use of term-type orders filled, raw materials into frozengoods, dry goods, wet goods (short shelf life of bread, vegetables, etc.), the number of weekly orders are 1,1,2 – 4, ordering volume = demand – inventory. Demand is thepurchase cycle, lead time and safety stock of, and, ordering the manager considering thehistorical sales data and promotional activities, or weather factors to calculate theturnover of an order cycle, and then converted according to the amount of thousands of round needed the number of raw materials. Demand plans to form form, set the table,including raw materials, estimated demand, not yet reached the volume of the end of thestock, order quantity, the amount of allocation of the purchase details, the form signed bythe store manager sent to distribution centers .

Inventory File

Every day before work, the staff of the provisions of the inventory of raw materials inventory and registration. This data is the order quantity is essential calculations, this data can alsobe used for costing the same day.

Supply resource file

It is affected by supply-side arrival time. This time depends on the time of transmission andprocessing orders, supplier response time of the order, the efficiency of distribution centers.

Procurement Plan

Distribution Center branch of the restaurant received orders for processing, such as thenumber of orders found abnormal fluctuations in a restaurant, the communication andconfirm, the restaurant orders must be received 15 points in the end of the afternoon, after

La Han GroupLa Han Group ordering the distribution center personnel view existing inventory and shipment data are not revised order, the next day by email or fax sent to the supplier, which according to thequantity and date for production and transportation to distribution centers.

Distribution Planning

According to the distribution centers indicated by the restaurant’s order number and the required raw material arrival time in the system, picking orders and shipments to generate summary tables, pickers, picking, packing, shipping transportation officer under the distribution plan summary arrangements, including: capacity approval, vehicle selection,delivery routes, transfer. The assessment team through the delivery vehicle loadingefficiency, punctuality rate of fuel consumption and goods, safe rate were carried out.

Strong points of the supply chain management:

  1. strong support for the normal operation of the enterprise and rapid expansion;
  2. various restaurants on the basis of accurate demand planning procurement strategy makes the company’s inventory costs are greatly reduced;
  3. distribution center in the entire logistics system in a central location, status and role of information systems to be truly reflected;
  4. demand forecasting, distribution planning and other aspects of quantitative and standardized management reflects the high level of enterprise management.

 

Solution for multichannel logistics

Together with the company GRENZEBACH, BLG LOGISTICS yesterday presented the robot-assisted storage and picking system „G-Com“ at BLG’s Frankfurt logistics center. G-Com is an innovative, dynamic, and scalable order picking system.

BLG was the first company in Europe to apply a robot-aided logistics concept. The central element of this new concept, which has been demonstrating its effectiveness in regular operation since October 2014, is that people no longer have to go to the racks, but the racks come with the goods to the people.

This is made possible by a technical system developed by Grenzebach. “G-Com” is based on the idea of a mobile order picking warehouse: the racks are taken to a multifunctional, flexible and, on top of that, ergonomically designed pick station (“stargate”) fully automatically. The rugged intelligent transport vehicles with a low design height used for this purpose (“Carrys”) slide under the mobile racks, lift them up and transport them via a defined route to the so-called stargates.

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Flexible G-Com System

The crucial criterion for installation of G-Com is at the same time its greatest advantage: In the logistics center at Hanauer Landstraße, Frankfurt, there are 800 racks and 75 carrys, and the goods are picked to five „Stargates“. For BLG LOGISTICS, the scalable storage and picking system works according to the principle „you only buy what you need“ and it can be dynamically adjusted to changing market conditions and customer requirements. If the order volume increases, for example, either more transport units can be added to increase the performance or additional racks can be installed to increase the capacity. The number of carrys is based on the number of stock placements and removals per hour and per day. Other factors are the planned number of shifts per day, the size of the warehouse, the average transport weight, and the number of putaway and removal bins.

Efficient, Ergonomic and Customer-Oriented

For the jury of the German Award for Supply Management the interplay of several factors was convincing and decisive for their selection – technology and customer orientation, efficiency by minimizing distances in the warehouse, ergonomics by virtue of these reduced distances and a lower number of lifting operations as well as mobility, scalability and flexibility of the system which, for its part, can relocate.

This way of logistics is really impressive, it could cut up the errors and wasted time, but on the other hand people are loosing jobs, so probably not in many countries it could be good. But possibly in near future most of logistics company will use this way.

I advise you to see a short video, that explaining how it works on practice.

sources:
www.blg-logistics.com
www.engelbert-strauss.de/

Seemoto – Cold Chain Solution

Meshworks Wireless, owner of Seemoto branded solution, and imec Messtechnik announced that they have started a co-operation which aims to provide an end-to-end solution for cold chain monitoring to the Pharma, Food and Transportation industries in Germany, Austria and Switzerland.

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Complete solution for easy and automated tracking of temperatures and locations. Cold Chainers now provides this end-to-end solution for international cold chain monitoring to the Pharma, Food and Transportation industries. Meshworks Wireless (owner of the Seemoto branded solution) is a Finnish market leading vendor of solutions for monitoring assets location, measurements, conditions and environments. Seemoto provides on-line access to real-time and historical data of assets. Seemoto’s solution entails a combination of novel wireless sensors, polymorphic data, internet services, flexible reporting and information sharing. The company is currently expanding its footprint Worldwide.

Cold Chainers is an international oriented company specialized in monitoring and controlling the Cold Chain. The company, which is headquartered in Geldermalsen (The Netherlands), noticed an increased demand for monitoring temperature in the Pharma, Food and Transport industries. By working with Seemoto, Cold Chainers is able to offer a new, high end and flexible cold chain monitoring solution to its customers in these fields. Seemoto provides solutions for end-to-end Health Care cold chain monitoring. It includes comprehensive tools for medical tracking and product safety management creating automated processes with wireless multitasking sensors and cloud based web services. Seemoto enables monitoring and tracking of moving and static assets, like fridges, cold storages, warehouses, transportation boxes, trailers, and even over sea and air transported assets. It is extremely easy to install and scalable from the small businesses to the enterprise ones. Seemoto functionalities have been developed together with pharmaceutical wholesalers, logistical companies, hospitals and other cold chain participants to meet the needs of cold chain monitoring.

  • Seemoto – Reduce risks of non-compliance and product loss in your supply chain.
  • Seemoto solutions are developed for demanding food and pharma cold chain applications.
  • Seemoto provides dynamic and scalable solution for its customers and it is used in five continents by hundreds of companies operating in food, pharma and life science industries.

ACQUISITION FM LOGISTIC AND SPEAR LOGISTICS

21 March 2016 RUSSIA

True to its “Ambition 2022” strategic plan, FM Logistic cooperates with major players of logistics markets in emerging countries. A real business launchpad, India offers FM Logistic extraordinary opportunity for its development in Asia. In 2015, the Indian economy experienced a growth rate of over 7%. By 2030, it will be the biggest consumer market worldwide and the third largest economy in the world. Furthermore, the Indian logistics market is at the dawn of an unprecedented move to reorganization and consolidation led by the new tax harmonization law for products and services (GST) and by the swift development of e-commerce.

FM Logistic and Spear Logistics, which is ranked among the TOP 5 Indian providers, will operate in the strategic sectors of e-commerce, telecommunications, retail, consumer goods, industry and automotive.

Together, the companies are going to prepare the groundwork in order to implement a logistics plan in line with tax harmonization in India. This project will lead to the creation of regional distribution centers that FM Logistic and Spear Logistics will manage from multi-client platforms, which will be set up near the main Indian cities.

“This alliance of skills enables us to offer our customers a global and reliable service – from warehousing to distribution and transport, covering all distribution channels, including e-commerce, for industrials and retailers, and for all sectors”, says Gautam Dembla, Managing Director of Spear Logistics.

“With the acquisition of Spear Logistics we are integrating a company of great logistics professionals”, affirms Jean-Christophe Machet, CEO of FM Logistic. “These new teams constitute an extraordinary asset in meeting the requirements of our customers in a major FMCG market”.

In addition to its in-depth knowledge of the diversity and complexity of the Indian market, Spear Logistics brings with it nationwide coverage and a customer base comprised of major national and multinational companies. FM Logistic will be bringing its international network into the partnership, along with its reputation, its cutting-edge working tools and all the latest technologies in logistics innovation.

https://www.youtube.com/watch?v=a5tQZ4TCDSI

https://www.youtube.com/watch?v=hUvpx4IDAwM

 

About Spear Logistics

Spear Logistics was created in 2001 by private investment funds. It is one of the leaders in Indian logistics with a revenue of 18 million euros (by the end of financial year March 2016). It now boasts a surface area of 270 000 square metres and manages 75 warehouses in 23 Indian cities in 12 states: Mumbai, New Delhi, Pune, Hyderabad, Ahmedabad, Bangalore, Chennai, Nagpur, Kolkata and others. As a specialist in contract logistics, the company is ranked among the top 5 providers in the Indian market with a wide range of services: warehousing, distribution, transport management and high value-added services such as co-packing for e-commerce, the automotive sector, industry and telecommunications.

Its customer portfolio includes major Indian and international market leaders : Atlas Copco, Siemens, Cummins, Snapdeal, Honeywell, Indus Towers, Crompton Greaves, Federal Mogul, Castrol, Laboratoires de Dr Reddy, Owens Corning, among others. With several awards under its belt, Spear Logistics is recognised for providing high quality services and for creating added-value for its customers. The company’s vision is to be the most reliable and reactive logistics service provider.

There are 1,600 employees at the company. Thanks to the competency and skills of its expert teams, Spear became a key player, awarded for its operational excellence (three prizes in 2015 including the company of the year award attributed by the Indian Institute of Materials Management).

https://www.youtube.com/watch?v=SF9mzD3xKoc

About FM Logistics

FM Logistic is a leader of the Russian logistics market. Since 1994, the company is a recognized expert in warehousing, transportation, co-packing and customs operations. The group of companies works on the FMCG and distribution market with a wide range of products, industrial and pharmaceutical goods, perfumes and beauty products.

Moreover, FM Logistic provides complex logistics services to producers and distributors of healthcare and home care products, as well as perishable goods. As of now, FM Logistic in Russia has 8,000 employees.

As of 31 March 2015, the turnover was over 14,7 billion roubles, which is 17% more comparing to the previous year. During that period over 93 new contracts for rendering all kinds of logistics services had been signed.

The company continues to develop and negotiates with new potential partners.

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References

  • Retail:Auchan, Atac, X5, Billa, Okey, Leroy Merlin, Decathlon
  • FMCG :Mars, Mondelez, Nestlé, Unilever, Colgate-Palmolive, GSK, Henkel
  • Industry & Electronics :Bosch, Phillips, Legrand, Brother
  • Perfumes & Beauty products : L’Oréal, Shiseido, Clarins, LVMH, La Prairie
  • Health :Johnson&Johnson Medical, Medtronic

 

Fast growing logistics in Samsung

Samsung SDS is increasing its presence in the transport logistics industry by expanding its fourth-party logistics segment based on its business associated with the parent Samsung Group.

According to industry sources, the logistics business unit of Samsung SDS recorded 2.4 trillion won (US$2.1 billion) in sales last year. The amount is highly significant in that it had stood at 500 million won or so in 2011, 627.6 billion won in 2012, and 1.8359 trillion won in 2013. In addition, the ratio of the business unit’s sales to the gross sales of Samsung SDS increased from 10 percent to 26 percent, and then to over 30 percent between 2012 and 2014.

At first, Samsung SDS was an IT service provider. The company set foot in the distribution industry in 2011, when it developed the logistics IT platform Cello at an investment of more than 100 billion won (US$89 million). Samsung SDS has since added transport logistics to Cello’s portfolio, while maintaining its major focus on B2B services. The platform provides optimal solutions in connection with global distribution companies without requiring any transportation vehicles or loading docks.

Samsung Electronics has adopted the Cello platform for its own physical distribution in Southeast Asia, Europe, and North America, and is planning to do so in Latin America this year. It is also planning to sell the service to third parties. The idea is to add 500 billion won (US$445 million) each to its logistics business sales associated with the Samsung Group and third parties within two years. According to stock market analysts, the logistics business division of Samsung SDS is forecast to record 3.2 to 3.4 trillion won (US$2.8 to $3.0 billion) in sales this year.

Samsung has a great opportunity to became to largest producer of smartphones. Now is a strong competitor for Apple and it is going up and one of the factors of their success is their supply chain management.

Wal-Mart SCM

In the late 1970s, with about 200 stores, Wal-Mart was a relatively small retailer. At that time, Sears and Kmart dominated the retail market. Since then, Wal-Mart gained significant market share from these retailers and became the largest and most profitable retailer in the world. Today, Wal-Mart is admired for its collaboration and technology driven supply chain practices and is leading the retailing industry with its innovative supply chain practices.

“People think we got big by putting big stores in small towns. Really, we got big by replacing inventory with information.” – Sam Walton, Founder of Wal-Mart.

Factors of the success:

  • Cross-docking

Cross-docking is an inventory management system. The retailer (XRT) made it popular. Through cross-docking, inbound shipments are unloaded directly into outbound trailers at distribution centers. Cross-docking can lower the time required to transport merchandise. Also, it lowers the inefficiencies in the system. It saves the retailer billions in storage costs.

It gives the retailer leeway to implement its everyday low price, or EDLP, strategy. The EDLP strategy is important to gain trust among customers. This philosophy emphasizes the retailer’s commitment to offer low prices to the customer every day. This ensures that buyers don’t stay away in the hope of frequent promotional activity.

Lowering supply chain costs also helps in the economics of implementing programs—like the Savings Catcher, Save Even More, Ad Match, and rollbacks.

  • Economies of scale

In the last 12 months, Walmart earned over $483 billion in revenue. That’s more than the following four companies combined—Costco (COST), Kroger (KR), Tesco (TSCDY) (TSCO.L) in the United Kingdom, and Carrefour SA (CA.PA) (CRRFY) in France.

Walmart spent over $358 billion to purchase merchandise for its stores in fiscal year 2014. That kind of scale gives the company immense bargaining power with its suppliers. At the same time, it’s a huge task to juggle the large number of suppliers from across the world.

  • Distribution

Walmart uses a combination of owned and leased facilities and fulfillment centers to distribute its products. In the US, about 80% of Walmart’s products were shipped from these facilities in fiscal year 2014. Suppliers transported the rest of the products directly to the stores.

  • Fulfilling the e-commerce promise

Lately, Walmart has also been using its network of supercenters and other retail stores to double as fulfillment centers for e-commerce sales. This is an especially important element of Walmart’s supply chain—if the retailer wants to stay relevant in the fast-paced world of e-commerce.

Amazon (AMZN), Walmart’s nemesis in online sales stakes, is quickly expanding its network of fulfillment centers. Walmart’s existing store network gives it a natural advantage over Amazon. As a result, Amazon is being forced to invest more in distribution.

Walmart’s stores are also being used to offer the click-and-collect facility to customers. Customers can order online and collect their purchases at selected outlets. The service is being tested for groceries. It’s only available at about five locations in the US. However, it’s being used more extensively in countries like the United Kingdom.

supply-chain-management-walmart-6-638

Wal-mart is a great example of how logistics should work and which success could bring a good-planned logistics. I suggest also to watch the video as it show more aspects and giving wide explanation of how works the supply chain managment.

Wal-Mart video of the Supply Chain

Apple’s key to success

Apple’s innovative technology, design and world-class marketing have created loyal customers who have made their products some of the most iconic in history. But there is another aspect to Apple’s success – outstanding supply chain management. In fact, Apple’s supply chain has been ranked #1 by Gartner, five years in a row.

Apple is a logistics success, but repeated annual success doesn’t happen by accident.

1) Focusing on Doing One Thing Really Well

Apple have a relatively small variety of products. This is a departure from how things looked in 1997 when the late Steve Jobs took over at Apple. Jobs reduced the number of products offered by the company from 350 to just 10. It was a bold move, but in terms of managing the supply chain, it was very impactful.

Today’s current number of Apple products is just five with 15 variations of each. Those products share many common components which further streamlines the supply chain.

2) Technology at Work

It’s no surprise that a company known for innovative technology would embrace the use of technology in managing its supply chain. Apple does an outstanding job in this area. Through supply chain monitoring technology, Apple can divert products from assembly origin in China to wherever it is needed based on sales. This is a good example of the value that can be derived by utilizing available software to monitor the movement of cargo. Knowing where your inventory at all times allows for continuous adjustments based on need.

3) Trusted Suppliers

There are some 200 suppliers providing some 97 percent of the materials used in Apple’s manufacturing process. When you consider Apple’s size, this isn’t a particularly large number. By keeping the list relatively small, Apple is able to guarantee their suppliers certain production volumes in terms of materials purchased to meet their demands. They have built a strong relationship with their suppliers and maintain a close control of standards.

4) Securing Air Space

Apple has ensured the space needed to move their product, and at the same time they effectively prevent competitors from moving their handheld devices until later in the season.

More than four million iPhone 6s were sold in pre-order within the first 24 hours alone. In the first quarter of 2014, Apple marked the sale of the 500 millionth iPhone. With Apple CEO Tim Cook’s eyes set on China as the largest market for Apple, the stat certainly leaves room for Apple aficionados to speculate how long will it take for the billionth iPhone to sell.
One bet is likely, though. In the end, Apple will still have a well-managed supply chain to boast.

To resume, i could say that Apple is a good example of how logisticks should work on practice, Apple is a successful company, but they couldn’t reach that success without a perfectly planned supply chain.

I recommend you to read that example and also checked the video, that explain really clearly how works a logistics in apple.

Here there is a link https://www.youtube.com/watch?v=YbM_LydRlnM