Transcript Diapozitiv 1

Optimising Costs Through A
Synchronised Supply Chain
Shaun Grantham
Marketing Manager
UPS South Europe
Who is UPS - Small Package delivery
Founded
August 28, 1907, Seattle
Headquarters
Atlanta, USA
2006 revenue
47,5 billion USD
Employees
427,700
Package operations
• 2006 delivery volume
3,9 billion packages and documents
• Daily delivery volume
15,6 million packages and documents
• Service area
more than 200 countris and terriotries
• Customers
7,9 million daily
• Operating facilities
1,788
• Delivery fleet
94,542
• UPS jet aircraft
282, 8th larget airline in the world
Who is UPS - Supply chain and freight
Supply Chain Solutions
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Key services
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Specialty services:
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Facilities
Logistics and distribution; transportation and
freight (air, sea, ground, rail); freight
forwarding; international trade management,
and customs brokerage.
Service parts logistics; technical repair and
configuration; supply chain design and
planning, returns management
936 facilities in more than 120 countries; 10.7
million sq. m.
Freight
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Key services
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Delivery Fleet
Facilities
Leading provider of less-than-truckload
services coast-to-coast
6,792 tractors; 22,846 trailers
more than 215 service centres
Global trends and logistics
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Increased global trade
Asia and China as manufacturers of goods and massive potential markets
Consumer pull – power increasingly resides with individuals
Complex and continuously changing business environment
Five universal business plan challenges:
– Growing by accessing new markets
– Improving customer service
– Differentiation
– Improving cash position
– Enhancing productivity
Supply chain executives can drive profitability if they closely align their supply
chain strategies to the five universal challenges
The supply chain as a key driver of a company’s value and a revenue
generator
Traditional Supply Chain
•Hierarchical
•Inflexible
•One-step IT
•In-house Logistics
•Multiple Carriers
New Supply Chain
•Dynamic/complex
•Flexible
•Supply-chain IT
•Collaborative 3rd Party Logistics
•Single Integrated Carrier
UPS: A single source service provider covering the entire
supply chain
• E-Commerce
• Financial Services
• Network Management
Package
• Logistics
Delivery
• Supply Chain Management
• Freight Forwarding
• Customs Brokerage
Offering integrated services across the supply chain
Synchronising global commerce
• Today’s global and complex supply chains require the movement and
management of…
Goods
Information
Funds
• Regardless whether you are selling goods to a couple of customers
out of your garage or if you are running a multinational organisation
with thousands of customers all over the world.
UPS Customer – NXP Semiconductors
The Company
• Based in Eindhoven, The Netherlands
• More than 37,000 employees
• Present in 20 countries, sales
organization covering 60 countries
• Annual revenue of $4,96 billion in 2006
• Producing semiconductors and software for mobile
communications, consumer electronics, security applications,
contactless connectivity, in-car entertainment and networking
UPS Customer - NXP Semiconductors
The Challenge
• 5 industrial warehouses across Asia
• Service components and parts need to be
rapidly and reliably shipped from one continent
to another, Asia to Europe
• Fragmented European supply chain with 12
logistics providers
• Lack of reliability and flexibility
• Limited visibility and control of the
transportation and distribution process
• Lengthy order to delivery time and high rate of
error due to manual processes
UPS Customer - NXP Semiconductors
The UPS Solution
• Redesign of the Asia to Europe distribution
infrastructure to optimise the transportation chain
• Single logistics provider offering a complete service
on a global scale
• One streamlined dock-to-door solution
• Direct delivery to retailers in the destination country
(last mile)
• An integrated, multi-modal service that combines air
freight and customs clearance with package and LTL
delivery
UPS Customer - NXP Semiconductors
The UPS Solution – Trade Direct Air
Consolidate
Shipment
Freight
Clear
Customs
Deconsolidate
Shipment
Multimodal
Transportation
Delivery To
End Customer
Full Visibility: End-to-end tracking provided throughout the supply chain
UPS Customer - NXP Semiconductors
The UPS Solution – Benefits
• Faster time to market – from 48 to 72 hours instead of 8 days
• Less paperwork and reduced customs fees (consolidated customs
clearance)
• Reduced transportation costs (consolidated air transportation)
• Less bureaucracy, lower costs (one integrated bill for all
transportation costs)
• Reduced inventory costs
• Streamlined process: no need to manage multiple vendors
• Single contact for the entire distribution process, one point of
accountability
• Full end-to-end visibility with UPS technology
• Optimised customer service
UPS Customer– YOOX.com
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The Company
Based in Milan, Italy
Founded in September 2000, now established as the global ecommerce partner for leading fashion Brands
Has operations on three continents: Europe, North America and Asia
Serves 28 countries
Employees: appr. 100
More than 230,000 satisfied customers
Received 13 awards as best e-commerce site
Sells exclusive products from Italian and international designers
online, a savvy selection of end-of-season clothing and accessories
at accessible prices including vintage collectibles
UPS Customer – YOOX.com
The Challenge
• A growing business, revenue has doubled each year for the past six
years
• Continuously changing needs and customer expectations
• Need of a logistics partner able to reach reliably, rapidly and
efficiently a growing number of customers and markets
• Assessing new markets, reducing need for local investment
• Customer satisfaction and loyalty as a key to success and growth
UPS Customer – YOOX.com
The Solution
• The right product mix (flexibility): UPS Express, which offers time
definite delivery and UPS Expedited, which offers day definite
scheduled delivery
• UPS Returns – pre-printed label added in the outbound shipments
with necessary information for a customer return, or printable via
Yoox website
• UPS COD: customer can pay upon receipt
• UPS Quantum View: customers are proactively alerted in case of
delivery exceptions
• UPS World Ease: multiple packages to many destinations in the
same country clear customs as one consolidated master shipment
and then consolidated for final delivery directly to end customers
UPS Customer – YOOX.com
Benefits
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Global services able to meet changing needs
Excellent customer service
Saving time and money
Costs reduction for warehousing, inventory and shipping
Increased focus on core competencies as UPS manages shipping
process
• Reliability
• Value added servcies at no extra cost
UPS Customer – YOOX.com
Customer Benefits
“YOOX’ multinational technological
supply chain platform has reached a
high level of effectiveness and
performance resulting in the 98% of in
time deliveries worldwide. This is
possible thanks to a consolidated
partnership with UPS for international
deliveries.”
Federico Marchetti, Founder and
CEO of YOOX
Recap
• Globalisation impacts transportation and logistics industry
• Supply chain is a key to success allowing drastic cost reductions
through:
– Streamlined distribution processes
– Optimised asset utilisation
– Managing uncertainty through flexibility
• Supply chain is a key driver for increacing profitability through:
– Increased customer satisfaction and loyalty
– Enabling competitive differentiation
– Allowing companies to focus on their core competencies
"It's no longer about taking advantage of
economies of scale, but more about taking
advantage of economies of expertise”
Bob Moffat, Senior Vice President of Integrated Supply Chain, IBM