Copyright by FLUID-WIN Consortium 2006 Réka MoksonyMLE-Central Loco Budapest, 22 FEBR 2007 027 083 Réka Moksony 027 083 Integration of Logistic Services

Copyright by FLUID-WIN Consortium 2006

Réka Moksony MLE-Central Loco

Budapest, 22 FEBR 2007

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Réka Moksony

027 083

Integration of Logistic Services in Multidisciplinary Web-based Platforms




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FP6-IST

Contract number: 027 083 Project acronym: FLUID-WIN Project name: Finance, Logistics and Production Integration Domain by Web-based Interaction Network Priority / Priority Component:PRIORITY 2 INFORMATION SOCIETY TECHNOLOGIES (IST)Strategic Objective 2.4.13'Strengthening the Integration of the ICT research effort in an Enlarged Europe' Total indicative cost: 3.742.300 Euro Commission funding: 1.998.550 Euro

Infos about the Project




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Project background

Logistic Focus

Field Study Results




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027 083Business Integration in the Supply Chain

Logistic Service Provider

Tier-3Supplier

Prime Contractor

Tier-2Supplier

Tier-1Supplier

Financial Service

Providers

B2B

B2(B2B)

cross-old-Europe-new-Europe manufacturing networks




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B2B platforms: large quantities of information

This information can be useful for external service providers

Customers and suppliers can get benefits by connecting/ integrating external service providers to the same platform that they use for B2B communication, and…

External service providers can get benefits, too, of course, and so …

FLUID-WIN aims to create conditions to allow external service providers to connect to B2B platforms:

B2(B2B)

Another Significant Step Forward




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Service provider

Tier-3supplier

Tier-3supplier

Prime

Prime

Prime

Tier-2supplier

Tier-2supplier

Service provider

FLUID-WIN – ASP fully integrated web-based communication

Communication within Supply Chain with FLUID-WIN




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The 3rd millennium major key objectives sound to be:

COST CUTTING

Major effect: migration of complex manufacturing activities to Far East

This implicates for tier-1s a dramatic turnabout with respect to the effort spent in the last 10 years in flexibility achievement

Also, East Europe allows cost cutting, thanks to reduced labour cost, but with less constraints with respect to the Far East (especially logistic- financial) So we look for significant added value in full integration (customer - part suppliers - service suppliers) within cross-old-Europe-new-Europe manufacturing networks

Where to Look for Significant Added Value




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Logistics: rarely Web-based in “old” Europe manufacturing networks (suppliers are close…..)

Financing: consolidated procedures, no added value in Web-based management in “old” Europe manufacturing networks

cross-old-Europe-new-Europe manufacturing networks

Significant added value: flexibility is possible together with cost reduction, but a full network integration is mandatory.

Two Critical Processes




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Project background

Logistic Focus

Field Study Results




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Réka Moksony

027 083Extended Supply Network

Manufacturing network from a FLUID-WIN point of view is a network constituted by a prime contractor and a group of its suppliers; the prime contractor manages the suppliers through a B2B application where at least orders, transportation documents and invoices are managed

FLUID-WIN network is a manufacturing network plus

Logistic service providers that provide transportation/ warehousing services among prime contractor and suppliers

Banks and other financial service providers that give services to the companies within the network




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Réka Moksony

027 083Focus and Constrains

FLUID-WIN provides information services between the prime contractor or supplier and the involved logistic services provider

• Business rules have to be determined in contracts

• Supporting collaboration among logistic service providers

• Trust building among parties is the key issue in case of cross border businesses

The great challenge is the integration of the logistics and financial services without installing thousands of peer-to-peer relationships.




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Project background

Logistic Focus

Field Study Results




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Involved partner: Hödlmayr Logistics (HU)

Hödlmayr International AG is an internationally active family business, whose core service is vehicle logistics. The company specialises in the preparation and distribution of finished vehicles from production to delivery to the dealer. The total number of employees of the Hödlmayr International is 1.300, the owned carriers number total is 520, annually transported vehicles of the group is 1.000.000 cars.

Hödlmayr Hungária Logistics Ltd. is the Hungarian subsidiary of Hödlmayr International.

• Total storage capacity in 3 different locations in Győr: 13.000 cars• Total number of transported cars in 2005 : 160.000• Annual turnover (2005): 22,5 million EUR• Number of employees (2005): 251 employees

Interview Session I.




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027 083Lessons Learnt

• TRANSPARENCY of supply processes by the logistic service providers is not supported by advanced tools

• E-DATA EXCHANGE among the smaller companies doesn’t exist

• Reliable FORECAST information is not available

• Obtaining reliable STATUS information and providing FEEDBACKS is time consuming

• Intensity of 3d PARTY COOPERATION among logistic service providers is poor

• Using advanced TRADE FINANCE tools, the LSPs can reduce the lead time of payment process




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027 083Potentials Benefits at LSPs

• More transparency on logistic processes outside the company borders trust building, improved collaboration

• Electronic data exchange cost effective solution, data accuracy

• Closer monitoring of black-box processes quality control

• Easier access to logistic information Web platform, integration

• Improved change and risk management mitigation strategies against breakdowns

• Greater responsiveness more flexible reaction on clients’ demand, ability to provide a more advanced service

• Reducing the non-conformity of logistic services increasing customer satisfaction




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027 083FLUID-WIN Logistic Services




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027 083Added Value for Logistic Operation

Reduction of…

• lead time of transportation thanks to the monitoring• the non-conformity of the logistic services and increasing customer satisfaction• warehouse costs• communication costs• possibility of out of capacity• time spent in daily operations for tracking&tracing of logistic orders

+ AND

• Better planning possibilities based on a more strict control• Increased visibility, which can also increase the trust• Improvement of logistic processes




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Thank you for your attention!

For further information please contact:

Régens Plc.www.regens.hu

Ms Réka MoksonyHungary 1117. Budapest, Prielle K. Str 19/D

Phone nº:+36 1 205 30 90

e-mail: [email protected]

Documents

Copyright by FLUID-WIN Consortium 2006 Réka MoksonyMLE-Central Loco Budapest, 22 FEBR 2007 027 083 Réka Moksony 027 083 Integration of Logistic Services