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Customisation of Fulfillment Services


      European Hi-Tech Summit
                Amsterdam 26-27 September, 2007
Agenda


•   A New Company: s y n c r e o n
•   Customisation of Fulfillment Services
    • How? - Best Practices
    • Case Study




                                            Page 2
Company Overview
A Premier Global Diversified Company

                   +                          =

•   Privately owned Irish Company, founded in 1969 in Ireland, HQ in Dublin
•   In January 2007 Walsh Western completed a major acquisition of TDS Logistics
•   The new group “syncreon” is a specialised provider of highly customised supply
    chain solutions critical to the customer’s success
•   Scale
    • FY 2006 combined revenue of $660m in Technology and Automotive Logistics
    • 9,000 direct employees world-wide
    • Global footprint with coverage in 4 continents
•   Proven Track Record
    • Engineering & BPI, IT/Systems, Quality and Operational Performance
    • Responsiveness and speed to support customers with major challenges
•   Financial stability and a sound platform for future growth, 1.0 b USD by 2010


                                                                                     Page 3
Company Overview
        Industry Verticals and Service Offering


                                                                Group Management with Key Central Functions



                                                           Technology
 Industry Vertical
                                       Transport – 4PL




                                                                                                       Supply Chain M.

                                                                                                                         Pack Design
Specific Functions
                                                         Freight F.




                                                                                Fulfilment




                                                                                                                                             Outbound
                                                                                Outbound
                                          Transport

                                                         Technology
                                                          Technology

                                                                      Reverse




                                                                                             Inbound
                                                                                             Inbound




                                                                                                                                                        Inbound
                                                          Reverse                                                                                                 Industry Vertical

                                                                       DITM




                                                                                                                                       MRO
  Operations Mgt                                                                                                                                                  Specific Services
  Business Development
  Engineering and IT



                                                                 Freight Forwarding & Transport Management




    Technology – Service Offering:
    Inbound Logistics:     Subassembly, kitting, testing, sequencing and JIT delivery to manufacturing process
    Outbound Logistics: Value added fulfillment services - VMI, picking, kitting, custom packing, configuration, personalization and DITM
    Reverse Logistics:      Customer collection, classification. testing and value or disposal management
    Freight Forwarding:     FTL and LTL, air and ocean
    TM and 4PL:             Supporting inbound, outbound and freight forwarding operations


                                                                                                                                                                              Page 4
Company Overview
Global Footprint


   Canada                                 UK                         Belgium     Poland                  Germany
  Mississauga                         Ellesmere Port                Genk       Gliwice                   Dusseldorf (3 )
  Hagersville                         Hinckley                      Brussels   Lodz                      Emden
  Laval                                                                        Warsaw                    Frankfurt
  mro London                                                                                             Hamburg
  Oshawa                                                                                                 Hannover
  Port Colborne
                                        Ireland                                                          Ingolstadt
  Tillsonburg                         Dublin                                                             Niederaula
  Windsor                             Cork                                                               Potsdam
                                      Limerick                                                           Regensburg
                                                                                                         Saarlouis
                                                                                                         Stuttgart
       USA                           Netherlands
  Atlanta                             Tilburg (2)
  Auburn Hills
  Belvidere, IL
  Brownstown, MI
  Chicago, IL
  Dundee, MI                                                                                               China
  Jefferson North, MI
  Kansas City, MO                                                                                        Shanghai
  Mt. Pleasant, TN                                                                                       Shenyang
  mro Brownstown, MI
  mro Chicago, IL
  mro Indianapolis, IN                                     Brazil
  Norfolk, VA
  Riverview, MI                                        Santo Andre
  Sterling Heights, MI                                 Curitiba
  Warren, MI                                           Santo Andre LOC
  Walton, Kt                                           San Bernardo




 Technology – 18 Sites
 Additional countries cover through distribution include France, Greece, Italy, Czech R., Switzerland.
 Automotive – 34 Sites

                                                                                                                           Page 5
Company Overview
Main Customers




                   Page 6
Customisation of Fulfillment Services
Customisation of Fulfillment Services
Introduction


•   Customisation can provide significant value to the supply chain
•   This presentation focuses in outbound logistics covering fulfillment
    activities and distribution of finished goods
•   Significant value = Continuously exceeding customer expectations

                                        Implement




                             Plan                    Operation


      At Every Stage                     Value


                               RFQ
                             Analysis               BPI




                                                                       Page 8
Customisation of Fulfillment Services
Introduction


 • Resulting in direct and indirect savings through a higher
   degree of efficiency and Zero defects:


                   Innovative and creative ideas, positive impact on SP and
 RFQ Analysis      customer own operations / Supply Chain

 Plan              Robust allowing the customer to focus on core competencies

 Implementation Shorter implementation lead time with Zero defects

                   Theoretical = actual requirements = no re-engineering need
 Operational
                   Best practices and Best in class performance

 BPI               Improvements are continuously identified and implemented




                                                                                Page 9
Customisation of Fulfillment Services
Introduction



•   What is required for a 3PL / 4PL to successfully implement
    such level of customisation?
     • Engineering competence
     • Specific industry and manufacturing knowledge
     • IT/systems capability
     • Methodology        RFQ Analysis   Plan   Implementation   Operational   BPI




     • Empowerment
     • Focus to design & implement the most effective solution
       rather than forcing an existing one to fit the project
       requirements



                                                                                     Page 10
Customisation of Fulfillment Services
Introduction


•   What is required ……..?
     • Strategy to maintain long term customer relationships
     • A sustainable and realistic business model under which
       a business case exists for the project cycle
         Customisation costs (design, implementation, ……) are
         offset with a higher level of efficiency

                    Customisation      Operating
                        Costs           Costs




                                                                Page 11
Customisation of Fulfillment Services
          Information Technology

                                  Applications Overview
                         Contract Logistics                                     Freight Management
    Supply Chain Execution                 Supply Chain Visibility                 Road/Air/Sea Freight




• RF WMS                             • SynView360                           • Transport Management
  Warehouse Management                 3600 visibility                       CIS
  Radio Frequency Driven               Real-Time Web Portal                  IFMS
  Integrated MHE & Conveyors           Supports both 3PL & 4PL
  ERP integration                      Inbound Visibility & Milestones      • EPOD/POD
                                       FC & Distribution Track & Trace       EPOD capture
 CIM/DITM                              Electronic POD
 Continental In Transit Merge          EDI Integration with carriers        • Vehicle Tracking
 Dynamic In Transit Merge              VMI and COI Inventory Visibility      CIS
                                       Transaction Reporting
• Reverse Logistics                    MIS
                                                                            • Customs Docs
 EPRC & APRC                           VMI Min/Max Breach Reporting
                                                                             Icarus on-line
                                       Aged Inventory Analysis
• Bond/customs                         KPI Reporting
 WMS Integration to DMS/CMS            Integrated to Call Centre



                Developed and supported in-house      Customised solutions to EXACT customer requirements
                Fully Integrated to Customer ERP      Automated Conveyoring & Sortation solutions
                                                                                                        Page 12
Customisation of Fulfillment Services
          Methodology and Business Model


•        Business Process Improvement (BPI) program initiated in 2002
•        BPI integrating 6 Sigma & Lean:
          • Design of new processes / solutions
          • Increase operational efficiencies & elimination of waste
          • Meet competitive cost challenges and create customer value




    80        20
                        NPI (DMADV): New                                    DMAIC: Improve existing
                     processes, services, business                           processes, services, and
                        and facilities to 6 Sigma                           facilities to 6 Sigma quality
                                 quality
              308




                                         Leverage and sustain the gains achieved
                                              by improvement and creation
                                                                                                 Page 13
Customisation of Fulfillment Services
    Methodology and Business Model


•   Engineering Design: New process / product - DMADV methodology


     Define        Measure          Analyze       Design        Validate


    Define the     Measure and      Analyze the   Design        Verify the
    project        determine        process       (detailed)    design
    goals and      customer         options to    the process   performance
    customer       needs and        meet the      to meet the   and ability to
    (internal      specifications   customer      customer      meet
    and                             needs         needs         customer
    external)                                                   needs
    deliverables


•   Improve Existing Process - DMAIC              Improve       Control



                                                                            Page 14
Customisation of Fulfillment Services
                  Methodology and Business Model

                                     Typical effort level over a project life cycle


                  Champion/Sponsor              Project Lead and Team           Team and Process Owner
Level of Effort




                   Define Project           M       A      D       V          Integrate into Daily Work


                                                                                                          Page 15
Case Study – Outbound Logistics

Customer A
Case Study
  Outbound Logistics for Customer “A”

                                        Simplified Supply Chain

             Inbound Supply Chain                                  Outbound Supply Chain            Customers


                                                                                                       Value
 Components                Contract      Systems                                                       Added
• Disk drives            Manufacturer                                                                 Resellers
                              s          PC, laptop
• Semiconductor          • A                                                   DITM                  Corporates,
                                                      Regional                               DITM
• Housings               • B                                                                          Hospitals,
                                                      Fulfilment                                        Etc.
• Etc.                                     VMI          Hub1
                                                                                                     Consumers
  Peripherals
• Monitors
• Printers                                               VMI
• Etc.



                                                                             Reverse Logistics
             Key
     Product owned by supplier
     Systems
     Peripherals
     Complete Orders




                                                                                                            Page 17
Case Study
Outbound Logistics for Customer “A”


 Fulfillment:

 Specific services that are integrated:
   • Receiving and warehousing
   • Vendor managed inventory
   • Order processing
   • Personalisation
   • Kitting, labelling




                                          Page 18
Case Study
Outbound Logistics for Customer “A”


 Fulfillment:

 Specific services that are integrated:
   • Warranty and serial number capture
   • Diagnostic and quality checking
   • Country specification & localisation
   • Pack-out
   • Merge (complete orders)




                                            Page 19
High Level Case Study
    Outbound Logistics for Customer “A”




Fulfillment Centre:
• High quality multi user site
• Shop Floor = 350,000 sq ft
• Office area = 12,000 sq ft
• Height 53 ft, 37 Dock Doors
• Secure site - TAPA class A
• Approx. 600 employees


                                          Page 20
High Level Case Study
Outbound Logistics for Customer “A”



  Advantages of a Multi-Share Facility:
   • Synergy Sharing
   • Economies of scale
   • Volume Fluctuation Flexibility
   • Best Practices w/o compromising confidentiality
   • Staffing and Cross Training

   While maintaining the same level of customisation!!!




                                                          Page 21
Case Study
Outbound Logistics for Customer “A”



Fulfilment Solutions:

Performance:
  • Dock to Stock < 2 hours
  • Inventory Accuracy 99.98% +
  • Fulfillment Rate 0 backlog 99.97% +




                                          Page 22
High Level Case Study
Outbound Logistics for Customer “A”

                         4 PL Approach


                    Pan-European Network                                    I
                                                                            N
                                                                            T
                                   Carrier Selection Criteria:              E
                •    IT/System Platform Tech G
                     Robust and secure networks able to handle Hi
                     products
                                                                            R
                •    Established range of services meeting the needs of the
                     B2B & B2C market sectors                               A
                •                                                           T
                     Multiple in line carriers per Country based on differing
                     •    ‘T&T’ information integrated into client’s
                         Customer Service
                     consignment volumes and indemic network profiles
                          website                                           E
                •    A commitment to develop IT capabilities to match the
                     •    IT flexibility enables the rapid connectivity of D
                                        Center
                     syncreon’s and customer’s expectations
                          new partners. e-POD
                •    Financially stable organisations
                     •    Internet-based Milestone Reporting service
                •    Flexibility-Ability all orders are processed, personnel service
                          allowing access to authorised client range of
                                Ensure to provide the necessary
                     options atsuppliers and completed while
                                 a commercially viable rate
                          and executed
                     •         Customers
                          Ordermonitoring performance and
                                  and Trailer-level milestone tracking
                                             driving CIP
                          for CIM-RF application


                                                                                •      Delivery Performance 99% +
                                                                                •      POD Entry within 48 Hours 99% +
                                                                                •      MWD <150 per million (5.2 sigma)
                                                                                                                    Page 23
Thank you for your attention




                               Page 24

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Bill Stankiewicz Syncreon

  • 1. Customisation of Fulfillment Services European Hi-Tech Summit Amsterdam 26-27 September, 2007
  • 2. Agenda • A New Company: s y n c r e o n • Customisation of Fulfillment Services • How? - Best Practices • Case Study Page 2
  • 3. Company Overview A Premier Global Diversified Company + = • Privately owned Irish Company, founded in 1969 in Ireland, HQ in Dublin • In January 2007 Walsh Western completed a major acquisition of TDS Logistics • The new group “syncreon” is a specialised provider of highly customised supply chain solutions critical to the customer’s success • Scale • FY 2006 combined revenue of $660m in Technology and Automotive Logistics • 9,000 direct employees world-wide • Global footprint with coverage in 4 continents • Proven Track Record • Engineering & BPI, IT/Systems, Quality and Operational Performance • Responsiveness and speed to support customers with major challenges • Financial stability and a sound platform for future growth, 1.0 b USD by 2010 Page 3
  • 4. Company Overview Industry Verticals and Service Offering Group Management with Key Central Functions Technology Industry Vertical Transport – 4PL Supply Chain M. Pack Design Specific Functions Freight F. Fulfilment Outbound Outbound Transport Technology Technology Reverse Inbound Inbound Inbound Reverse Industry Vertical DITM MRO Operations Mgt Specific Services Business Development Engineering and IT Freight Forwarding & Transport Management Technology – Service Offering: Inbound Logistics: Subassembly, kitting, testing, sequencing and JIT delivery to manufacturing process Outbound Logistics: Value added fulfillment services - VMI, picking, kitting, custom packing, configuration, personalization and DITM Reverse Logistics: Customer collection, classification. testing and value or disposal management Freight Forwarding: FTL and LTL, air and ocean TM and 4PL: Supporting inbound, outbound and freight forwarding operations Page 4
  • 5. Company Overview Global Footprint Canada UK Belgium Poland Germany Mississauga Ellesmere Port Genk Gliwice Dusseldorf (3 ) Hagersville Hinckley Brussels Lodz Emden Laval Warsaw Frankfurt mro London Hamburg Oshawa Hannover Port Colborne Ireland Ingolstadt Tillsonburg Dublin Niederaula Windsor Cork Potsdam Limerick Regensburg Saarlouis Stuttgart USA Netherlands Atlanta Tilburg (2) Auburn Hills Belvidere, IL Brownstown, MI Chicago, IL Dundee, MI China Jefferson North, MI Kansas City, MO Shanghai Mt. Pleasant, TN Shenyang mro Brownstown, MI mro Chicago, IL mro Indianapolis, IN Brazil Norfolk, VA Riverview, MI Santo Andre Sterling Heights, MI Curitiba Warren, MI Santo Andre LOC Walton, Kt San Bernardo Technology – 18 Sites Additional countries cover through distribution include France, Greece, Italy, Czech R., Switzerland. Automotive – 34 Sites Page 5
  • 8. Customisation of Fulfillment Services Introduction • Customisation can provide significant value to the supply chain • This presentation focuses in outbound logistics covering fulfillment activities and distribution of finished goods • Significant value = Continuously exceeding customer expectations Implement Plan Operation At Every Stage Value RFQ Analysis BPI Page 8
  • 9. Customisation of Fulfillment Services Introduction • Resulting in direct and indirect savings through a higher degree of efficiency and Zero defects: Innovative and creative ideas, positive impact on SP and RFQ Analysis customer own operations / Supply Chain Plan Robust allowing the customer to focus on core competencies Implementation Shorter implementation lead time with Zero defects Theoretical = actual requirements = no re-engineering need Operational Best practices and Best in class performance BPI Improvements are continuously identified and implemented Page 9
  • 10. Customisation of Fulfillment Services Introduction • What is required for a 3PL / 4PL to successfully implement such level of customisation? • Engineering competence • Specific industry and manufacturing knowledge • IT/systems capability • Methodology RFQ Analysis Plan Implementation Operational BPI • Empowerment • Focus to design & implement the most effective solution rather than forcing an existing one to fit the project requirements Page 10
  • 11. Customisation of Fulfillment Services Introduction • What is required ……..? • Strategy to maintain long term customer relationships • A sustainable and realistic business model under which a business case exists for the project cycle Customisation costs (design, implementation, ……) are offset with a higher level of efficiency Customisation Operating Costs Costs Page 11
  • 12. Customisation of Fulfillment Services Information Technology Applications Overview Contract Logistics Freight Management Supply Chain Execution Supply Chain Visibility Road/Air/Sea Freight • RF WMS • SynView360 • Transport Management Warehouse Management 3600 visibility CIS Radio Frequency Driven Real-Time Web Portal IFMS Integrated MHE & Conveyors Supports both 3PL & 4PL ERP integration Inbound Visibility & Milestones • EPOD/POD FC & Distribution Track & Trace EPOD capture CIM/DITM Electronic POD Continental In Transit Merge EDI Integration with carriers • Vehicle Tracking Dynamic In Transit Merge VMI and COI Inventory Visibility CIS Transaction Reporting • Reverse Logistics MIS • Customs Docs EPRC & APRC VMI Min/Max Breach Reporting Icarus on-line Aged Inventory Analysis • Bond/customs KPI Reporting WMS Integration to DMS/CMS Integrated to Call Centre Developed and supported in-house Customised solutions to EXACT customer requirements Fully Integrated to Customer ERP Automated Conveyoring & Sortation solutions Page 12
  • 13. Customisation of Fulfillment Services Methodology and Business Model • Business Process Improvement (BPI) program initiated in 2002 • BPI integrating 6 Sigma & Lean: • Design of new processes / solutions • Increase operational efficiencies & elimination of waste • Meet competitive cost challenges and create customer value 80 20 NPI (DMADV): New DMAIC: Improve existing processes, services, business processes, services, and and facilities to 6 Sigma facilities to 6 Sigma quality quality 308 Leverage and sustain the gains achieved by improvement and creation Page 13
  • 14. Customisation of Fulfillment Services Methodology and Business Model • Engineering Design: New process / product - DMADV methodology Define Measure Analyze Design Validate Define the Measure and Analyze the Design Verify the project determine process (detailed) design goals and customer options to the process performance customer needs and meet the to meet the and ability to (internal specifications customer customer meet and needs needs customer external) needs deliverables • Improve Existing Process - DMAIC Improve Control Page 14
  • 15. Customisation of Fulfillment Services Methodology and Business Model Typical effort level over a project life cycle Champion/Sponsor Project Lead and Team Team and Process Owner Level of Effort Define Project M A D V Integrate into Daily Work Page 15
  • 16. Case Study – Outbound Logistics Customer A
  • 17. Case Study Outbound Logistics for Customer “A” Simplified Supply Chain Inbound Supply Chain Outbound Supply Chain Customers Value Components Contract Systems Added • Disk drives Manufacturer Resellers s PC, laptop • Semiconductor • A DITM Corporates, Regional DITM • Housings • B Hospitals, Fulfilment Etc. • Etc. VMI Hub1 Consumers Peripherals • Monitors • Printers VMI • Etc. Reverse Logistics Key Product owned by supplier Systems Peripherals Complete Orders Page 17
  • 18. Case Study Outbound Logistics for Customer “A” Fulfillment: Specific services that are integrated: • Receiving and warehousing • Vendor managed inventory • Order processing • Personalisation • Kitting, labelling Page 18
  • 19. Case Study Outbound Logistics for Customer “A” Fulfillment: Specific services that are integrated: • Warranty and serial number capture • Diagnostic and quality checking • Country specification & localisation • Pack-out • Merge (complete orders) Page 19
  • 20. High Level Case Study Outbound Logistics for Customer “A” Fulfillment Centre: • High quality multi user site • Shop Floor = 350,000 sq ft • Office area = 12,000 sq ft • Height 53 ft, 37 Dock Doors • Secure site - TAPA class A • Approx. 600 employees Page 20
  • 21. High Level Case Study Outbound Logistics for Customer “A” Advantages of a Multi-Share Facility: • Synergy Sharing • Economies of scale • Volume Fluctuation Flexibility • Best Practices w/o compromising confidentiality • Staffing and Cross Training While maintaining the same level of customisation!!! Page 21
  • 22. Case Study Outbound Logistics for Customer “A” Fulfilment Solutions: Performance: • Dock to Stock < 2 hours • Inventory Accuracy 99.98% + • Fulfillment Rate 0 backlog 99.97% + Page 22
  • 23. High Level Case Study Outbound Logistics for Customer “A” 4 PL Approach Pan-European Network I N T Carrier Selection Criteria: E • IT/System Platform Tech G Robust and secure networks able to handle Hi products R • Established range of services meeting the needs of the B2B & B2C market sectors A • T Multiple in line carriers per Country based on differing • ‘T&T’ information integrated into client’s Customer Service consignment volumes and indemic network profiles website E • A commitment to develop IT capabilities to match the • IT flexibility enables the rapid connectivity of D Center syncreon’s and customer’s expectations new partners. e-POD • Financially stable organisations • Internet-based Milestone Reporting service • Flexibility-Ability all orders are processed, personnel service allowing access to authorised client range of Ensure to provide the necessary options atsuppliers and completed while a commercially viable rate and executed • Customers Ordermonitoring performance and and Trailer-level milestone tracking driving CIP for CIM-RF application • Delivery Performance 99% + • POD Entry within 48 Hours 99% + • MWD <150 per million (5.2 sigma) Page 23
  • 24. Thank you for your attention Page 24