international supply chain - Aricia Ltd

“What don’t you know about your international supply chain?” Presentation by Yusen Logistics (UK) CILT January 2016

Dr Richard Gibson  Joined Yusen in 2014  Responsibility for our activities in ‒ Control Tower ‒ International Supply Chain Management

 Contact details ‒ +44 (0)7814 554 051 ‒ [email protected]

Scott Shergold  Joined Yusen in 2003  Responsibility for our activities in ‒ International Supply Chain Management

 Contact details ‒ +44 (0)7768 926 833 ‒ [email protected]

Yusen Asset Light Logistics - Global to Local ISCM team based in London Handling 59,661 FEUs pa into the EU

Operating in London & Hamburg

Colin Eeles Business Development Manager +44 (0) 7739 934 344 [email protected]

1.6m pallets pa Operating locations in UK, Poland, Italy, France & Spain Frank Packman Business Development Manager +44 7774 334 318 [email protected]

Agenda  What is a typical international supply chain?

 Relevant legislation  Best in class purchasing and consolidation approaches  Data management and supply chain visibility  What to do when it lands? – examples of best practice  Risks to be aware of

 Futurology – staying ahead of international trade legislation and evolving sourcing patterns

What is a typical international supply chain?

Relevant legislation  UCC  SOLAS  CPC

Roles & responsibilities

Best in class purchasing & consolidation approaches  Considerations when procuring freight ‒ ‒ ‒ ‒ ‒ ‒ ‒

Timing of ITT Duration of contract NVO v BCO Direct carrier v NVO Lead times Mergers / Consortia CIPS

 Consolidation ‒ ‒ ‒ ‒

Location of CFS Cost to vendor / buyer Role & activity undertaken Managing inventory flow

Data management and supply chain visibility  The right data, at the right time at the right level are paramount for making informed decisions and ensuring supply chain agility  What are the best in class measures?

What to do when it lands?

The Client European Retailer



Company Development ‒ Innovative retail model - sale of promotional products for a limited period ‒ Limited sales growth and flat profit margins for over 5 years



Business Locations ‒ 700 stores and 20,000 concession outlets in Germany, plus 300 stores across Europe ‒ Seven distribution centres across Germany



Annual Revenue ‒ EUR 3.5 Billion (Approx. US$ 4.3 Billion)



Annual Volume ‒ 7,000 FEU

The Challenge Lack of Inventory Planning

Inefficient Operation Processes

Requirement to rapidly turnover stock

Antiquated processes and technology used by inhouse team

To achieve margins Capitalise on consumer trends

Lack of Inbound Visibility Delivery schedules independent of retail promotions 20% of cargoes arriving up to a week late Lost sales and unsold inventory – Euros 5 million pa

Stock delivered to wrong DCs – costing Euros 200,000 pa Difficult to plan shifts for DC receiving - Overstaffed DC intake team Destination milestones unrecorded

The Solution  Yusen Logistics took over management of destination requirements ‒ Streamlining the inbound operation ‒ Improving performance



Enhanced existing supply chain system ‒ ‒ ‒ ‒

Enabling shipment priority to be managed DC delivery mode management – road, rail or barge Container DC routing Scheduled container deliveries, allowing shift patterns to be planned ‒ Exception management tool ‒ Destination milestones captured

 Implementation of standard operating procedures  Establishment of Key Performance Indicators

The Benefits  Increased Product Availability



Communication – via Griffin, Centralising Correspondence



Visibility – Enhanced Inbound Planning, Reducing Intake Team

7% 

Haulage Savings – Greater Use of Rail and Barge

500,000 175,000

The Benefits 

Operational Efficiencies –Enhanced Docking – Saving in Handling Costs

Cross

75,000

 Technology – Supply chain Technology Now Solely Catered for by Yusen Logistics



Management Reporting – Implementation of KPIs, enabling effective management of Yusen Logistics, on carriage partner and DC intake team

On-time Doc Upload (5 working days prior to ETA)

On-time ISF (2 day before ETD)

99%

99%

On-time eCI (4 working days after ETD)

On-time ASN (3 working days after ETD)

99%

98%

Risks to be aware of

Yusen Logistics

Futurology  Trade legislation ‒ TPP ‒ China ‒ ‘Brexit’

 Evolving sourcing patterns ‒ ‒ ‒ ‒ ‒ ‒

China : cost vs quality Low cost labour Developing economies Infrastructure challenges Near sourcing Compliance / Capacity

 Cyber threats

Finale…..  Think together  Move together  Success together

Thank you for your time