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