Title: International Logistics
1International Logistics 3PLs
2Contents
- Basics of International Logistics
- Trends in International Logistics
- Case Study
3International Logistics - Basics
- Definitionthat part of the supply chain
process that plans, implements, and controls the
efficient effective flow and storage of goods,
services, and related information from the point
of origin to the point of consumption in order to
meet customers requirements.
4International Logistics - Basics
- Why is international Logistics necessary?
- - Reducing Cost
- - Improving Service (adding value for
customers) - - Competitiveness in Globalization
- Positive result of a liberal market?
5Difference int. Logistics SCM
- Logistics
- Focuses on transportation and storage of
materials and final goods - The 7 Rs ensuring the availability of the
right product, in the right quantity and the
right condition, at the right place, at the right
time, for the right customer, at the right cost - SCM
- Also includes the management of supplier and
customer relations
6International Logistics - Basics
The key to making a companys international
Logistics work is information -gt how can this
information in an MNE be provided and supervised?
7International Logistics - Basics
- EDI (Electronic Data Interchange) - standardized
format structure to exchange documents and
financial flows - ERP (Enterprise Resource Planning)
- - every process of a company can be exercised
via one integrated Information System (SAP, Baan,
Oracle, MBS Navision Axapta) - e-Commerce / e-Procurement / Intranet
- Enterprise Portals for managing controlling
the flow and storage of goods from any place at
any time (part of ERP, or at least directly
linked)
8International Logistics - Trends
- Government Trade Facilitation Systems
- - new trade facilitation systems support
globalization of internat. LogisticsSingapore
-gt trade permitting system allows traders to fill
out one single form, a mainframe system routes
form to 18 different agencies. Estimated savings
for Traders 1 billion per yearMexico -gt
Computerization reduced steps for Traders from 12
to 4. Numbers of operations at 1 entry point from
U.S. increased from 800 to 1200. The processing
time was reduced from 3 days to 20 minutes!!
Estimated savings for Traders 2 billion per
year
9Globalization Logistics
- Globalization drives Logistics outsourcing
- Public and private companies are offering
logistic services - Complex business needs require specialization in
logistics (eg. hazardous cargo) - Companies doing business globally can benefit
from outsourcing their logistics and supply-chain
management needs - Logistics is becoming an important source of
revenue for MNEs (IBM offers IT Outsourcing
since 1990, now shifting to logistics, takeover
of PWC in 2002)
10International Logistics - Trends
- The extended Enterprise
- - Total real time connectivity between extended
Enterprise Partners - Global Third Party Logistics Providers(3PL)
- - avoid costs in IT-Systems and warehouse
capacity - - greater market leverage (air, ocean and
surface transport) - - volume purchasing discounts through
aggregating its shipment base with those of the
Providers other clients - - higher flexibility in meeting customer needs
because of access to more diverse channels - eLogistics web based logistic portals which
seek to bring together shippers, 3PLs and other
interested parties to provide more effective
collaboration
11Logistics Outsourcing 3PLs
- The 3PL market will grow 5 to 10 times faster in
the next decade then the traditional freight
forwarding market - 3PLs include
- Engineers, business consulting, materials
handling, material specific skills, change
management, business modelling, IT and management
consulting
123PL Trends
- ¾ of MNEs use 3PLs
- Most important feature of 3PLs is RFID (radio
frequency identification) e.g.. Wal-Mart, US Dep.
of Defense
133PL Trends
143PL Pros Cons
- downsizing to core business
- longer experience in internat. Logistics
- reduce cost of ownership
- increase flexibility
- Lack of core knowledge during outsourcing process
- open, honest communication necessary
- Giving up of internal control of a business
function and trusting others
15Case Studies
- Examples of 3 PLs and Business Solutions
16FILA / KUEHNENAGEL (KN).
- Situation.
- Increasingly complex supply chain ( Incr.
markets, product line and clients) - Centralised supply chain management
- PB
- delays and inaccuracy in customer order
- Lack of visibility
- Variety of product/services additional
complexities.
17FILA / KUEHNENAGEL (cont 1.).
- KN Solutions Re-engineering supply chain
model. - optimising transportation, merging shipment
- Improve inventory management and services
- Web-based data and documentation collection
18FILA / KUEHNENAGEL (cont 2.).
- Results.
- Flexibility and visibility forward planning
- Cutting costs and increase space utilisation
- Adapting standard operating procedures to local
requirements - Build a direct info exchange with partners
- Automating massive amount of documentation.
19XEROX / KN.
- Situation Xerox need 3PL
- Manage 6 of its District Parts Centres (DPCs)
- Mobilise and assume operational control of the 6
DPCs - Provide accurate and reliable delivery of parts
to engineers - Maintain and improve defective material
processing time at the DPCs
20- K N solutions
- Minimise service disruptions
- Focuses on staff retention
- Process improvement
21XEROX / KN (cont. 1).
- Results
- Improved service/shipping performance
- Reduce order cycle time
- Seamless logistics solutions
22CARREFOUR / PENSKE
- Situation
- To centralise logistics network
- Improve order accuracy
- Reduce inventory
- Increase stock assortment
23CARREFOUR / PENSKE (Cont.1)
- Penske Solutions
- New distribution facilities
- Warehouse technologies
- Load planning
24CARREFOUR / PENSKE (Cont.2)
- Results
- Single system
- ordering and shipping
- Manage inventory flow
- Incr. supply chain visibility
- Deliver value company, store, consumer level
- Reduce distribution costs
- Reduce delivery delays
- Increase variety of products for stores.
25General Motors Mexico (GMM)/ Penske.
- Situation
- 3 locations Pb
- Individual logistic decisions
- Lack of collaborations
- Complex transportation Network.
-
26General Motors Mexico (GMM)/ Penske (Cont.1)
- Penske Solutions
- New procedure for inbound transportation network
- Logistics management system software
- Establish accountability, procedures and measures
for GMM.
27General Motors Mexico (GMM)/ Penske (Cont.2)
- Results (in the 3 plants)
- Transportation costs decr. 15
- Increase visibility throughout the supply chain
- Reduce inventory and freight premium costs
- Increase delivery of damage-free parts
- Decrease carrier base from 100 to 20 carriers.
28Thanks!
29Bibliography
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AND THE PACIFIC, Report of UN - Freight and Logistics, Dablanc, L. Gart
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Multinational Companies (MNCs), Yong Gao - Business Intelligence and Logistics, Srinivasa
Rao P. - Supplier partnership essential to make new
logistic concept work G. Butschek - Latin American booming Logistics, InfoAmericas
Report 10-06-2004 - Shaping tomorrows Logistics The Air Force
Journal - http//logistics.about.com/b/a/117614.htm
- http//www.fool.com
- http//www.manufacturing.net
- http//usco.kuehne-nagel.com
- http//www.penskelogistics.com/casestudies/gm.html
- http//www.penskelogistics.com/casestudies/carrefo
ur.html