Excellence Exxent Consulting · 2019-08-21 · 10th Global Cool Logistics conference ......

Copyright © 2017 by Exxent Consulting GmbH0

exxent-presentation_cool-logistics-2018_1801003.pptx

Exxent

Consulting

Landshut|Duisburg|Potsdam|Memphis

October 2018

FOOD TRANSPORT - COST ANALYSIS BY TRANSPORT MODE AND FUNCTIONALITY◼ A new approach to defining logistics costs◼ What is actually included and what isn’t?◼ Inbound and outbound ◼ Procurement and logistics sourcing considerations

Excellence



10th Global Cool Logistics conference

A new approach to cost control in food logistics: managing the all-in-one-gadget

The effectiveness of perishable supply chains depends increasingly on focusing what happens ‘before and after’ the container: a verticalized perspective. This includes redefining the concept of perishable modularity with its different intermodal permutations and logistics costs in the widest possible sense: total landed costs as the leading idea.

Although neither science nor a discipline, food logistics is still the art of dealing and handling with the unexpected. Nevertheless, planning can help reduce risk.

◼ A new approach to defining logistics costs

◼ What is actually included and what isn’t

◼ Inbound, intra and outbound perspective

◼ Procurement and logistics sourcing considerations

»

PORKCATTLE

CHICKEN

SHEEP




The scoping of the new SCM-approach: The four circuits of Supply Chain Excellence (4Circuit-SCE)

SCM-scoping in a synchronized

four-circuit system

Purchase &

Procurement

Sales, Order Processing &

CRM

Operational Planning &

Production

Logistics & Transportation & Material Handling

Supply Chain End-to-endSuppliers Customer




Definition of der Supply Chain Management in the landscape of a typical german food producer

Mission, Vision, Strategische Planung

Absatzmarkt-, Kunden- und Wettbewerbsanalysen, Entwicklung Geschäftsmodelle, Marketing-Konzepte, Produkt-Markt-Kombinationen

Musterprozess, Markt- und Kundeninduzierter PEP, Ideenfindung, Produktdefinition, Produkteinführung, ProduktmanagementVertriebs-

Process house with core processes Configuration of SCM in a broader and better way

12 Financials and Business Administration

13 Quality management, Organization, IT

08 Purchase to Pay (PTP)

07 Order to Cash (OTC)

04 Sourcing & Contractmanagement

05 Sales & Contraktmanagement

03 Product Development

03 Operational Plan to Control (PTC)

02 BDM, Marketing, Market development

01 Strategy

11 Human Resource Management

10 Technischal Support & Innovation

09 Produce to deliver (PTD)

SCM

Lieferantenidentifikation, Lieferantenentwicklung, Marktanalysen, Beschaffungsstrategie, Legal Contract Management, Lieferantenbeziehungsmanagement

Akquisition (aktiver Verkaufsprozess), Anfragenannahme und –bearbeitung (mit Kalkulation),Angebotserstellung, Kontraktabschluss, Kundenbeziehungsmanagement (CRM)

Vertriebs-, Finanz-, Produktions-, Beschaffungs-, Personal-, Investment-, SBA-Planung

Auftragseingang und –klärung, Lieferterminprüfung, Versand- und Transportabwicklung, LDL-Abwicklung, Auftragsnachbearbeitung, Reklamationsbearbeitung

Auftragsbezogene und bedarfsgerechte Beschaffung, Beschaffungsüberwachung(Track&Trace), Warenannahme & Qualitätskontrolle, Lieferreklamationen

Wartung technische Anlagen und Equipment, Reparaturen Anlagen und Equipment, Bereitstellung Infrastruktur

Personaladministration, Bedarfsplanung, Qualifizierung, Talentmanagement, Recruiting, Ausbildung (Trainee)

Finanzbuchhaltung, Controlling/Reporting, sonst. Administration

Qualitäts- und Prozessmanagement, Organisationstransparenz, IT-Entwicklungen, IT-Administration- und Support

Arbeitsvorbereitung, Produktionssteuerung, Produktion ….




The Food-Supply-Chain becomes extremly complex, volatile and multipalely linked

Row materialsupplier

RM marketsand Wholesale

Ingredients(Tier 1-3)

Industrial foodproduction

finishedproducts

ImporterDistributer

Retail Outlets Points of

ConsumptionConsumer




Supply Chain map of a typical midsized Eurpoean food producer: multiple linked cold chain routings

Intralogistik:

Warengruppen:

Reinigungs-mittel

Laborbedarf

MICE/ Marketing

Büromaterial

Procurement Markets Own value streams Sales Markets and Channels

Kunden:

Deu

tsch

lan

d

EU

Wel

t (o

hn

e EU

)

Ind

ust

rie

Gro

ß-

han

del

Bereitstell-fläche

Inbound

Puffer-flächen

Rohware(auch HW)

Transport

(Inbound)Lagerung

1. Ver-

arbeitung

Ver-

packung HF

2. Verarb./

Veredelung

Ver-

packung FPLagerung

Transport

(Outbound)

Silos/ Tanks

Hilfsmittel/ Zusatzstoffe

Verpackung(EW/MW)

Paletten/ Ladungsträger

MRO inkl. Arbeitsmittel

(nicht Bestandteil der Ausschreibung)

Empfang -> Kellerlager

Handelsware

Shuttle (HF)

Shuttle (RW, HF, Pal.)


WE WA

ShuttleFertigware

Bereitstell-fläche

Outbound

Abholung durch Kunde

Direktlieferung (Ausnahme)

Abholung

Tausch-/Rück-Paletten

Retouren

Rückpaletten

Shuttle Shuttle

Inbound-Routen

Shuttle-Routen

Outbound-Routen

Ein

zel-

han

del




Typical distribution network of an European food producer multi sites and multi DCs

Übersee-Kunden

= DC zu C

= PC zu C

= WH zu C

Icon Bedeutung Darstellung Kürzel

Werk 1 exakt PC

Handelswaren Lieferant

Beispiel S

Kunde Beispiel C

Kunde Übersee Andeutung C

AußenlagerExakte Anzahl, nahe Verortung

WH

DC auf Werksgelände

Exakte Anzahl, nahe Verortung

DC

DC nicht auf Werksgelände

Exakte Anzahl, nahe Verortung

DC

Hafen exakt H

Werk 2 exakt C, PCS




Costs per anno in k€ (Eurpean food manufacturer / own and third-party vehicle fleet / DC structure)

12.743 45%

8.658 31%

2.085 7%

1.185 4%

1.009 4%

833 3%

687 2%

303 1%

280 1%

228 1%

137 1%

68 0%

external transports

labor costs

rent of land / buildings

pallets

energy /repairs

leasing own vehicle fleet

depreciation

miscellaneous

services and support

toll & insurance

packing

taxes

28.216

Status as-is:More than 11 % costs of logistics

not regardingprocurement and internal material

handling:just Distribution

starting from i-point factory handover

Lessonslearned …




Costs per anno in k€ (Food manufacturer / external vehicle fleet / external storage of all goods)

785 26%

666 22%

498 16%

365 12%

241 8%

219 7%

174 6%

22 1%

21 1%

20 1%

customs

outgoing freight

freight arrivals

warehousing costs

LSS

shuttle costs

internal logistics

warehouse management

stacker etc.

external logistics

3.011

Total logistics costsincluding procurement

logistics, material handling, shuttles fromsite to warehouse and back for RMs, SFPs and

FPs and:Control tower

After re-engineering 7 % as ratio of sales

Lessonslearned …




Costs per anno in k€ (Brewery / Own and third-party vehicle fleet)

5.762 33%

4.464 25%

3.980 23%

2.558 15%

338 2%241 1%187 1%58 0%34 0%26 0%

transport / storageInternational

transport / storage Nationalwithout EFP

labor costs

other external services

service / maintenance

operating materials

depreciation

other costs

insurances

disposable packaging

17.648

More than 13 % costs of logistics

not regardingprocurement but internal material

handling fromprduction outtake:

just Distribution starting from i-point

factory handover

Lessonslearned …




Example Country Portfolio Craftbeer Brewery in hl

3.063 27%

1.894 16%

1.598 14%

812 7%

515 4%

462 4%

454 4%

371 3%

326 3%

324 3%

311 3%

266 2%

263 2%

197 2%

116 1%

80 1%

76 1%

70 1%

66 1%

64 1%

49 0%

33 0%31

0%30

0%30

0%26

0%5

0%5

0%1

0%

GBR

DEU

EXP

SWE

FIN

CHE

ITA

DNK

RUS

NOR

FRA

NLD

ESP

IRL

ISL

AUT

EST

GEO

TUR

POL

CZE

11.538

Small micro productionsite in Germany

servicing a very broadvariaty of crafted

products to a diversified portfolio of

European countries within and outside the

Union: all in a coldchain – multi modular

Lessonslearned …



Share of logistics costs in total more than double digit in all industrial food segments





Drivers of logistics costs: only a few under poor logsitics management, but more under SCM

Total Logistics Costs

Equipment-Mix

Freight market

Revenue

Sales

Retail Packagingrequirements

Warehousing costs

Pricing 3PLs

Pricing polica

Product structure

Production footprint

Total processqualitiy of the

companyProcess quality ofinternal

material handling

Process qualitiy oftransportationmanagement

Delivery orderstructure

Specific productweight and volume

ratios

Lanes and distancesfrom and to markets

Customer ChannelsSLA‘s

OTIFEF

Handling units andpackaging

Costs of ownlogistics assets



Components and drivers of Total Logistics Costs





TLC transparency still limited today

TCO

Freight

Loading Equipment and Handling Unit

Assets and facilities

Personnel

Cpmplete Logistics Process Chain

Plan Source Make Deliver Return

Todays fieldof vision

Hidden costs




New controlling philosophy reqired: verticalized in total

Total Costs of Ownershipmeans …

Lifecycle costs of logistics asstesand Non Conformance Costs (NCC) included

TCO ABC/PKRTLC

Total Landed Costs means …

complete supply chain on screenfrom sourcing to shelfs

Activity Based Costs means …

all managerial and handling activities



◼ Brain of the SC-network, info-center, central role

◼ Cockpit, realtime and controlling info

◼ Processes and functions

◼ Operational planning

◼ Tracking & Trace

◼ Cost and efficiency control

◼ SCEM: Supply Chain Event management

◼ SCRM: Supply Chain Risk management

◼ Requirements, staff, skills:

◼ Significant difference to today‘s function

◼ Head of SC = Leadership of CT

◼ Right monitor tools at the right place

◼ Nearly realtime connectivity

SC control tower as the critical and central element




Hub-to Hub Value Stream Mapping

PRT

PO Confections 26745 MPH

Repl C2H 8618 H2H USA

Online 35908 1.795 € 546 9.057 € gesamt:

12.568 € 33431 33431 44885

10772 1.596 € H2M 10772 64.611 €

HKG 682 682 1,44 €

PO Supplier 6686 per piece

Repl S2H 2154 H2H

Online 8977 449 € 136 4.162 €

4.489 € 30.496 €

China - USA

Portugal - USA

Pieces

Logistikkosten

per pcs.





SCE levers and measures for a better control and reduction of logistics costs

Logistics target system

Better Faster Cheaper

C

O

C

D

◼ Standards

◼ Fit for purpose

◼ Requirement management

◼ SC-Planning

◼ Routing-Management

◼ Scheduling

◼ Lanes

◼ Round trips

◼ Multi Stopps

◼ Service and Distribution Center (SDC)

◼ Closing of inefficientwarehousing

◼ Verticalization ofWarehousing und Packaging, VAS

◼ Reduction of multi staging

◼ Consilidation of loading lotsizes

◼ Reduction of small deliveryoreders

◼ Building up transportnetworks

◼ Best and suitable equipment

◼ Reduction of number LSPs

◼ Slectin by conceptcompetition

◼ Sourcing methodology

◼ Generation of Win-Winseffects

1 PL

2 PL

3 PL

Service LevelAgreements (SLAs)

Demand, Order & Routing-Management

Consolidation ofstructures

Transport-ManagementBest Value Sourcing/

LSP engagemnet

1 2 3 4 5

••

Carrier

Operate

Coordinate

Design

Process-Optimization

Logistics Control Tower




The procurement of logistics service tends to be modulized

Intralogistik:

Warengruppen:

Reinigungs-mittel

Laborbedarf

MICE/ Marketing

Büromaterial

Procurement Markets Own value streams Sales Markets and Channels

Kunden:

Deu

tsch

lan

d

EU

Wel

t (o

hn

e EU

)

Ind

ust

rie

Gro

ßh

and

el

Bereitstell-fläche

Inbound

Puffer-flächen

Rohware(auch HW)

Transport

(Inbound)Lagerung

1. Ver-

arbeitung

Ver-

packung HF

2. Verarb./

Veredelung

Ver-

packung FPLagerung

Transport

(Outbound)

Silos/ Tanks

Hilfsmittel/ Zusatzstoffe

Verpackung(EW/MW)

Paletten/ Ladungsträger

MRO inkl. Arbeitsmittel

(nicht Bestandteil der Ausschreibung)

Empfang -> Kellerlager

Handelsware

Shuttle (HF)



WE WA

ShuttleFertigware

Bereitstell-fläche

Outbound

Abholung durch Kunde

Direktlieferung (Ausnahme)

Invertzucker, ZuckerStickstoff

Abholung

Tausch-/Rück-Paletten

Retouren

Rückpaletten

Shuttle Shuttle

Inbound-Routen

Shuttle-Routen

Outbound-Routen

Modal-Mix-PortOperateur Import

Lager- und Shuttle Operateur

Bulk-Silo-Operateur

DistributionTransporteur

Stückgut

LeergutManagerOperateur

DistributionTransporteurFTL und LTL Ladungsverkehre

Modal-Mix-PortOperateur Export

Leitstand

BeschaffungskettenManager und Operateur

HUB




The sourcing strategy in logistics and transportation tends to be 2PL-driven again, keeping managerialand control expertise and skills inhouse

Design

Coordinate

Operate

Conduct

Business Designs

of the adressed LSPs

◼ Verticalized Contract

Logistiscs

◼ Solution Provider

◼ Asset Holder

◼ HR-Leadership and

Development

◼ Control Tower

◼ Routing, Navigation,

Control

◼ No Own Operations

◼ No Asset Holder

◼ Operator, Carrier

◼ Mode and Module

Specialist

◼ Managing Assets and

Personnel Resources

3 PL 4PL 2 PL 1 PL

◼ Carrier only for the

designated mode

◼ Own Asset Investments

in Eqipments

◼ Operating Networks

D

C

O

C

D

C

O

C

D

C

O

C

D

C

O

C



Copyright © 2017 by Exxent Consulting GmbHKein Teil dieser Publikation darf in irgendeiner Form (durch Fotokopie, Mikrofilm, Aufnahme oder ein anderes Verfahren) ohne schriftliche Genehmigung der Exxent Consulting GmbH reproduziert oder unter Verwendung elektronischer Systeme gespeichert, verarbeitet, vervielfältigt oder verbreitet werden

Ihre Ansprechpartner

Exxent als Spezialist für Food Logistics und Supply Chain Excellence

John A. EkeGeschäftsführender Gesellschafter

Mob.: +49 (0) 172 824 88 [email protected]

Christian GesingPartner und Projektleiter


Marc A. EkeGeschäftsführer und Controller/Analyst


Thomas FiedlerPartner und Projektleiter

Mob.: +49 (0) 162 79 69 59 [email protected]

Martina BlustSenior Consultant und Scrum Master


Dr. Guido ObermüllerSenior Consultant und IT-Manager


Wolfgang HofmannSenior Consultant und Finanzspezialist


Kristine HeineckeSenior Consultant und Projektleiterin


Gabriele HornsteinVertrieb und CRM


Dr. Hans Werner BuschPartner und Senior Advisor


Markus LangerSenior Consultant und Braumeister




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D-84174 Eching

John Albert Eke (Geschäftsführer)

+49 172 824 88 03

+49 8709 943 02 89

+49 8709 943 02 90

[email protected]

www.exxent.de

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Excellence Exxent Consulting · 2019-08-21 · 10th Global Cool Logistics conference ......

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Transcript of Excellence Exxent Consulting · 2019-08-21 · 10th Global Cool Logistics conference ......