Presentation Transcript
Slide1: E-MAR Côte d’Azur
June 5, 2003 Outbound Intermodal Logistics: The Future Logistics Management Outbound IT Systems as Perceived by the Supply Chain Partners
Dr. Bengt Ramberg
Vice President
Content: Content The EU D2D Project
Research Questions
Search for Outbound Logistics Management System
The Next Generation of Logistics Management Systems
The D2D Technology
Cost Requirement to Future Technology
Conclusions
The EU D2D Project: The EU D2D Project
EU Transport Policy 2010: EU Transport Policy 2010 In the last twenty years, the road transportation’s share of of total European freight transport, has increased from 30% to almost 45%, whilst rail has decreased from 21% to 8%
EU’s desired solution is to optimize the use of transport infrastructure
The EU Commission is motivated to demonstrate the competitiveness of multimodal transport and as such stimulate modes that both reduce total costs and at the same time support environmental-friendly solutions
Slide5: TCMS Logistics Co-ordinator Transport Management
Exceptions Management
Visualisation of Transport Status Customer Position data network FTMS Producer Track & Trace ETA Advice
D2D – Total Budget EUR 7.3 million: D2D – Total Budget EUR 7.3 million Million € 42% €4.2 58% €3.1 01.03.2002 – 28.02.2005
The D2D Demonstrators: The D2D Demonstrators
John Deere Transport Chain: John Deere Transport Chain John Deere tractors from Mannheim, Germany to Australian Dealers
Volkswagen cars from Wolfsburg via Port of Koper to Istanbul: Volkswagen cars from Wolfsburg via Port of Koper to Istanbul Volkswagen Transport Chain
Slide10: Salten Meraker Thamshavn Bremanger Fiskaa Mosjøen Lista Bjølvefossen Elkem Transport Chain Shipments of Silicon metal produced in Salten to be delivered to Degussa Rheinfelden (Germany).
General Cargo from Spain to the Canary Islands: General Cargo from Spain to the Canary Islands Pamesa
(Almazora) Chema Ballester, SA Port of Valencia (86 kms.) Thursday Depart Friday p.m. Arrival Wednesday Port of Las Palmas Shipping Pinillos Grueltrans Arrival Wednesday Cegrisa
(Telde) (22 kms.) Pamesa Transport Chain
General Cargo from Lisbon area to the Azores Islands: Leg no. 3 Leg no. 2 Leg no. 1 FRESTI, LDA. Unifac Transport Chain General Cargo from Lisbon area to the Azores Islands
Process Improvement Methodology: Process Improvement Methodology
Slide14: Distribution: 30% of Total Vehicle Cost Dealer Manufacturer
or
distributor Platform
Development Outsourcing
Commonality
Strategic sourcing
Partnerships Lean
manufacturing
Outsourcing
Network factory Contracting Expanding Manufacturing Product
develop-
ment Purchasing Distribution
25 - 35% Total
vehicle
cost Dealer margin 10-18% Marketing 8-15% Organisation 4-6% Warranty 1-2% Logistics 2-4% The Block Exemtion ? Source: FT World Motor Conference, Sept. 1999
Slide15: Methodology - 10 Steps to result Step 1:
Define Project
Scope & Structure Step 2:
Complete Data
Step 3:
Establish KPI/
Opportunities Step 4:
Field Study/
Feasibility Step 5:
Benchmark current
Supply-Chain Step 7:
Feasibility Correction
Evaluation Step 8:
Comparative
Benchmarking Step 9:
Action Plan
Step 10:
Present Findings
Step6:
Develop optimized
Supply-Chain
Main D2D Phases : Process Improvement
Evaluation of benefits
Main deliveries:
- Detailed mapping of existing supply chain
- Detailed mapping of re-engineered (IT, smart tech.) supply chain
- Demonstration of an integrated management and communication system
- Evaluation of benefits Present State
Mapping Demonstrate the D2D Technology and smart tech.
Main D2D Phases
Current Physical Cargo and Information Flow: Current Physical Cargo and Information Flow
Process Maps of Product-, Information and Documentation Flows(example): Process Maps of Product-, Information and Documentation Flows(example)
Logistics Flow Analysis – Time: Logistics Flow Analysis – Time Example Only!
Logistics Flow analysis – Cost: Logistics Flow analysis – Cost Example Only!
Project Teams with Representatives from the Supply Chain Partners: Project Teams with Representatives from the Supply Chain Partners
Slide22:
Transport Chain Managers Responsibility John Deere Contract
with John Deere Mannheim WWL Australia WWL
Commercial’s
responsibility Super User
(Transport Chain Manager)
Research Questions: Research Questions
Research Questions: Research Questions What has been the devlopment in Supply Chain Integration, the last decade?
What has been the experience from the application and implementation of ERP- or other systems?
What is available in the market of logistics systems?
What is the cost requirement set by the Outbound Supply Chain partners?
Can improvement in cost and Value Added Services through Supply Chain Reengineering, justify the investments in technology?
Search for Outbound Logistics Management System: Search for Outbound Logistics Management System
Slide26: 1) Work in Process and
Factory Departure 2) Origin Consolidation
And Distribution 3) In-Transit Visibility 4) Arrival and Entry
Management 5) Redistribution and
Domestic Management 6) Delivery and Performance
Management The TCM
Total Pipeline Visibility, Management and Control Supply Chain Overview
The Logistics Management Hierarchy: The Logistics Management Hierarchy
Supply Chain Software Market Players: Supply Chain Software Market Players Enterprise Resource Planning (ERP):
Management of an enterprises operations,
Baan, SAP, Peoplesoft Supply Chain Management (SCM):
Management of goods within and
between points of supply and consumption Supply Chain Planning (SCP):
Advanced planning and
scheduling of supply chain
Activities. Manugistics / i2 Supply Chain Execution (SCE):
Execution management
of the supply chain in and
between organizations (TCMS/FTMS)
The Logistics Management System’s Five Core Capabilities : The Logistics Management System’s Five Core Capabilities Performance Management
Costing
Shipment Planning
Documentation
Shipment visibility
Event management
The Next Generation of Logistics Management System: The Next Generation of Logistics Management System
The Next Generation of Logistics Management System: The Next Generation of Logistics Management System The ERP-style solutions (1980-1995)
The Next Generation:
Total Landed Cost
Logistics Service Contract Management
The Virtual Logistics Department
The Virtual Department gives a complete suite of Supply Chain Event Management applications:
End-to-end visibility
Management of the sourcing-to-distribution
Order-to-delivery
Order-to-cash
The D2D Technology: The D2D Technology
Slide33: Producer Customer FTMS
Provide transport status TCMS
Organise and initiate transport
Control transport
Provide documents
Visualise transport information Position or ETA information Unit, transport means or
consignment identification Position data network
The D2D System (1): The D2D System (1) Transport configuration
Transport Means
Load Units
Locations
Companies
Cargo Types
Environmental settings
The D2D System (2): The D2D System (2) Transport Network Planning
Tour/Voyage
Provider Services
Provider Contracts
Transport Chains
Customer Relations
Customer Services
Customer Contracts
Long-term forecasts
The D2D System (3): The D2D System (3) Organise Transport
Handle Customer bookings (transport orders)
Verify availability of required services
Select transport chain
The D2D System (4): The D2D System (4) Execute transport
Prepare and issue service orders
Monitor progress
Loading and unloading operations
Consignment, load unit or transport means
Handle deviations
Reusing previous functions
Future D2D System Developments: Future D2D System Developments Handle claims
Including monitoring of the handling procedure
Handle invoice and payments (for transport operations)
Interfacing to accounting systems
D2D Concept Overview: D2D Concept Overview
Deployment Phases: Deployment Phases Central Data Repository
TCMS/FTMS Transport/
Purchase
Orders Commercial invoice,
packing list,
and other data
from Forwarder ASN Data
Back to Internal
System Booking, Packing List
and Commercial Invoice
Direct from Vendor or
Buying Agent Customs Entry
Events and
Costs Carrier
Events
and Costs Primary Secondary
Cost Requiremen to the Future Technology: Cost Requiremen to the Future Technology
Cost Requirement to the Future Technology: Cost Requirement to the Future Technology The technology will have to be justified based on reduced costs from the Process Reengineering activities
Present systems in the commercial market will have unit costs in the range of EUR 5,00-10,00
Future technology has to meet cost figures in the range of EUR 0,30-1,00
Conclusion: Conclusion
Conclusion: Conclusion The system market is developing rapidly
The last decade new ”leaders” have been constantly promoted by the consulting industry
The market is a consequence of the fact that few industries are investing in systems to manage outbound logistics
The income to the system developers is insufficient to guaranty solid and robust solutions
The D2D Technology is based on EU funds sponsored over the last decade and will provide an alternative to the commercial market
Welcome to the D2D WEB site:www.d2d.no: Welcome to the D2D WEB site: www.d2d.no