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CEVA Logistics – Making Business FlowPresentation for MDBC
Jacques Hartman Director Contract Logistics, Malaysia & Singapore
November 14th, 2014
Kuala Lumpur, Malaysia
CEVA – Making business flow
Through our integrated end-to-end logistics solutions, in-depth industry knowledge
and relentless focus on Operational Excellence, CEVA brings lasting value to our
customers’ global supply chain. We anticipate your needs and help you drive
business growth.
At every link in the supply chain, we help make business flow.
2
Our credo: “Impeccable Execution”
• We will be recognized by our customers as
delivering what we promise with consistent,
predictable processes and service levels
• We will not tolerate mediocrity in touch points with • We will not tolerate mediocrity in touch points with
our customers
• Impeccable Execution must become real at all
levels: Global, Regional, Country and Functions.
4
Increased complexity of the global supply chain
Early 2000s supply chain
• Component standardization allows production to
be spread globally to optimize costs
• Multi-country sourcing with consolidation hubs
before shipping to end customers
• Supply chain control and visibility are critical
• Compliance to regulations throughout the supply chain
Globalization driving increasing complexity
14 November 2014
Today’s supply chain
REGIONALSUPPLIER
REGIONALCUSTOMER 5
CEVA in a nutshell
Revenue: €7.2 billion
Employees: over 49,000
Locations: over 1,000
Presence: in over 160 countries
Combined storage space:
more than 9 million sq m
Figures for Year Ended, 31 December 2012
6
Integrated and balanced regional structure
Americas
Revenue: 30%
Europe andRest of World
Revenue: 41%
Employees: 39%
Asia PacificRevenue: 30%
Employees: 38% Revenue: 29%
Employees: 23%
Figures as of 31 December 2012
7
Balanced sector portfolio
Automotive 28%
Industrial 17%
Other 5%
Energy 7%
Technology 20%
Consumer and Retail 23%
8
CEVA in Asia Pacific
Overview
• $2.3 billion revenue in 2013
• +80 CEVA offices across 14 countries
• Close to 300 sites in the region
• Approx 10,000 employees and
Figures for period ending 31 December 2013
• Approx 10,000 employees and
11,000 JV employees
• Control Towers – Supply Chain Solutions
control towers in Singapore and Hong Kong
• Asia Pacific Center of Logistics Excellence in
Singapore
10
AP Footprint
India
Logistics Freight
18 sites
93,900 sqm
1,382 staff
14 sites
5,288 sqm
356 staff
Thailand
Logistics Freight
36 sites
1,184,679 sqm
2 sites
500 sqm
Korea
Logistics Freight
6 sites
23,661 sqm
13 staff
3 sites
1,586 sqm
96 staff
Japan
Logistics Freight
5 sites
30,000 sqm
55 staff
2 sites
3,400 sqm
9 staff
China, HK & Taiwan
Logistics Freight
48 sites
1,228,639 sqm
10,847 staff
12 sites
1,265,161sqm
131 staff
Vietnam
Logistics Freight1,184,679 sqm
2,815 staff
500 sqm
219 staff
Malaysia
Logistics Freight
10 sites
93,620 sqm
818 staff
4 sites
1,928 sqm
227 staff
Singapore
Logistics Freight
8 sites
131,320 sqm
656 staff
2 sites
7,900 sqm
188 staff
Philippines
Logistics Freight
10 sites
38,598 sqm
91 staff
8 sites
700 sqm
70 staff
Indonesia
Logistics Freight
28 sites
105,628 sqm
1,155 staff
5 sites
2,322 sqm
78 staff
Logistics Freight
1 site
2,000 sqm
10 staff
2 sites
569 sqm
33 staff
Australia & New Zealand
Logistics Freight
62 sites
692,992 sqm
1,247 staff
11 sites
70,291 sqm
340 staff
11
SINGAPORE Malaysia
Commencement Year 1973 1976
Employees 844 1,045
CEVA Singapore & Malaysia
Distribution Centers 10 DC’s, 139,220 sqm 14 DC’s, 95,548 sqm (MY)
Air freight tonnage in 2013 33,709 tons 24,350 tons
Ocean freight TEU in 2013 21,178 TEUs 12,784 TEU’s
Service Awards ISO 9001:2000, AS9120A, TAPA, C-TPAT, Secure Trade Partnership,
Global Kaizen Award 2011 & Regional Kaizen Award 2014, Regional ZDS Award
12
Singapore & Malaysia Customers
Technology Automotive
Consumer & Retail
Schaeffler
Energy Industrial
Schaeffler
13
Our integrated end-to-end service portfolio
Manufacturing
support
Inbound
Logistics
Warehousing &
Distribution
Centers
Outbound
Logistics
Aftermarket
Services
Final Mile
Solution
• Receipt and • Multi-modal • Dedicated and • Dedicated and/or • Spare parts • Home delivery for • Receipt and
management of
raw materials and
products at source
• Control
• Re-packaging
• Value-added
services
• Multi-modal
capabilities
• Time definite
services
• Customs
brokerage
• Web enabled
tracking solutions
• Dedicated and
shared
warehousing
• Distribution
network centers
• Value-added
services
• Dedicated and/or
shared
transportation
• CEVA Ground
distribution
services
• Transportation
network
management
• Spare parts
warehousing
• Spare parts
distribution
• Returns
• Repairs
• Reverse logistics
• Call center
services
• Home delivery for
finished goods
• One and two
person home
delivery
• After sales set up
• Installation
• Reverse logistics
Integrated supply chain management
14
Our Freight Management capabilities
Ocean FreightAir Freight
Value Added Multi-Modal
Freight Management
Value Added Multi-Modal
Freight Management
Ground Customs
Freight Management
Services
Freight Management
Services
15
Value Add LogisticsWarehousing
Our Contract Logistics capabilities
Warehousing, Value Add, Warehousing, Value Add,
Distribution Reverse & Service Logistics
Warehousing, Value Add,
Distribution & Reverse Logistics
Warehousing, Value Add,
Distribution & Reverse Logistics
16
CEVA Contract Logistics – Full Range of Services
MANUFACTURING DISTRIBUTION CENTRE CUSTOMERSSUPPLIERS
INFORMATION and CASH FLOW
17
Outbound
Logistics
Distribution Centre
Logistics
Inbound
Logistics
Transportation Management
Reverse Logistics
CEVA Contract Logistics – Full Range of Services
Outbound
Logistics
Distribution Centre
Logistics
Inbound
Logistics
Transportation Management
Reverse Logistics
Inbound Logistics
18
• Inbound Haulage
• Customs Brokerage
• Vendor Managed Inventory
(VMI)
• Quality Inspection Programs
• Sequencing / Line Feeding
• Procurement (Supplier and
P.O. Management)
• Forecasting
• Communication of
schedules
• Compliance and exception
management
• Milestone updates
CEVA Contract Logistics – Full Range of Services
Outbound
Logistics
Distribution Centre
Logistics
Inbound
Logistics
Distribution Center Logistics
Various warehouse environments
Transportation Management
Reverse Logistics
19
• Various warehouse environments
• Dedicated / Shared / Bonded
• Cross-docking, incl. consolidation and deconsolidation programs
• Inbound / storage / picking / outbound / documentation
• Forward Stock Locations
• Product Completion
• Customer Configuration
• (Sub)Assembly
• Value Added Logistics
• (Re)Packing
• (Re)Stacking
• Value Added Services
• Order management
• Inventory management
• Quality Inspections
• Localisation / Software Updates
• (Re)Labeling
• Kitting
• Customs Management
• Customer Service / Call Center
CEVA Contract Logistics – Full Range of Services
Outbound
Logistics
Distribution Centre
Logistics
Inbound
Logistics
Transportation Management
Reverse Logistics
Outbound Logistics
20
• Transportation – Distribution
• Courier / Parcels
• Less than truck loads /
Groupage
• Semi-truck loads / Part loads
• Full loads
• Carrier Neutral Management
• Sourcing & Procurement
• Planning & Execution
• Performance Reporting
• Freight Audit & Payment
• Customs Management
• Returnable Packaging
Management
CEVA Contract Logistics – Full Range of Services
Outbound
Logistics
Distribution Centre
Logistics
Inbound
Logistics
Transportation Management
Reverse Logistics
Reverse Logistics
21
• Call Center
• Product Failure Assessment
• Return Material Authorization
(RMA) Management
• Transportation
• Customs Management
• Asset recovery and
replacement parts fulfillment
• Repair Services
• Asset Disposal / Reselling
• Waste Management
• Customer Service
CEVA Contract Logistics – Full Range of Services
Outbound
Logistics
Distribution Centre
Logistics
Inbound
Logistics
Transportation Management
Reverse Logistics
Transportation Management
22
• Up-stream and down-stream
transportation for high
number of daily shipments /
orders
• Multi-modal transportation
• Ocean, Air, Road, Rail
• Carrier Neutral Management
• Sourcing & Procurement
• Planning & Execution
• Performance Reporting
• Freight Audit & Payment
• Distribution network design
Industry sectors we serve
We have organized our business to address the specific needs of our focus
sectors and to offer the most appropriate solutions and expertise.
Automotive TechnologyConsumer
and RetailIndustrialEnergy
23
Standard Operating Procedures and Working
Instruction
• Based on scope of work, customer requirements and service level
agreement, CEVA creates a solution design and process flows.
• All key processes, activities, tasks, responsibilities, communication matrix,
KPI’s, reports, etc. are defined in a Standard Operating Procedure (SOP).
• On shop floor level, all processes are detailed in individual activities and • On shop floor level, all processes are detailed in individual activities and
tasks, which are documented using standard Working Instruction
templates.
• This allows solid training,
standardisation of execution
and contingency in providing
back-up support.
24
Quality Management
• Our Freight Management and Contract Logistics
operations worldwide are ISO 9001 certified
• On top, our Contract Logistics operations hold a
number of various certifications based on and
compliant with customer and material
requirements
FM ISO 9001 certification
Asia Pacific
Europe
Americas
41
54
89
ISO 9001:2008 Status as of May 2013
Winner of SAI Global Systems
Excellence Awards 2011 for Quality
Management - Large business, Australia
ISO 9001:2008 - Established by the International Organization for
Standardization (ISO), recognizes transparent,
integrated and standardized quality management
across all functions, including commercial,
operations and finance
- CEVA sites in Austria, Czech Republic, Hungary,
Italy, Slovakia
ISO 14001:2004- Standards for Environmental Management System
- CEVA sites in Belgium, Czech Republic, Hungary,
Italy, Netherlands, Poland, Slovakia, UK
25
Our LEAN Approach
• Structured continuous improvement program eliminating 8 types of waste (Over-production,
Transportation, Inventory, Waiting, Rework, Motion, Over-processing, Loss of Intellect)
• Introduced at CEVA in 2004 and being constantly improved since
• Empowering employees to actively engage in problem solving
• Robust training program at all levels; e.g. our supervisors are trained in Kaizen (the Japanese
term for changing for the better) and use this methodology to solve specific problems in their
areas.
Lower costs Higher quality Shorter lead time
• Eliminating waste
(over-processing,
inventory, rework,
waiting etc.)
• Effective scheduling
and tracking
• Streamlining processes
• Eliminating waste
(over-processing,
inventory, rework,
waiting etc.)
• Effective scheduling
and tracking
• Streamlining processes
• Standardize work
• Built in quality
• Quality focus
(performance
management)
• Standardize work
• Built in quality
• Quality focus
(performance
management)
• Reducing buffers
• Reducing batches
• Reducing cycle times
• Reducing buffers
• Reducing batches
• Reducing cycle times
The LEAN culture is fully embedded and delivering benefits across all CEVA sites around the worldThe LEAN culture is fully embedded and delivering benefits across all CEVA sites around the world
26
Excellence in Operations:
Site Classification Assessment
• CEVA has one of the most robust site classification
systems in the logistics industry allowing us to
consistently deliver Operational Excellence across
the world
• With 22 measurable excellence standards, every
function within our facilities is evaluated - from
Human Resources and Finance to Freight
Showcase
Operations
Excellence
progression
Human Resources and Finance to Freight
Management and transport
• Applied for each of CEVA’s 1,000 sites worldwide
• Through these metrics we constantly monitor our
progress and strengthen our performance driven
culture.
34
Showcase
sites
over 480
Basic+
sites
Developing
Basic
Advanced
Approx. 95% of operations in the
logistics industry fall under the Basic
and Developing categoryWhere we are:
27
Health, Safety and Environmental (HSE)
Excellence: Never walk by a problem
• Ensuring a high level of safety management through
global health and safety policies and standards
• Empowering employees to accept ownership of critical
health and safety factors at all levels of the organization
• Monitoring and analyzing global HSE conditions
• Systematically measuring and continuously improving.
Benefits:
• Greater on-time service level
• Fewer claims and product loss
• Partnership with environmentally forward-
thinking supplier
• Increased employee engagement and
shareholder value
• Greater on-time service level
• Fewer claims and product loss
• Partnership with environmentally forward-
thinking supplier
• Increased employee engagement and
shareholder value
• Systematically measuring and continuously improving.
29
Security Management
• Making sure our customers’ goods and
properties are fully secured through
deployment of Security Guards, Security
Systems (CCTV/IDS/Access Control),
Equipment, Policies and Procedures.
• Global security policy at CEVA with regional
Security related certifications, including:
• Authorized Economic Operator (AEO) – in the
Czech Republic, France, Germany, Hugary,
Ireland, the Netherlands, Spain and UK• Global security policy at CEVA with regional
and local ownership in place.
Ireland, the Netherlands, Spain and UK
• Transported Asset Protection Association
(TAPA):
- CEVA’s finished goods hub in Ayutthaya,
Thailand
- CEVA multi user site near Charles de
Gaulle airport, France
• TAPA TSR 2008 – validation for CEVA Ground in
Mainland China
• TSA – Transportation Security Administration,
North America
• FAST – Fast And Secure Trade, North America
• STP – Secure Trade Partnership, Singapore
• Secure Warehouse Award - Shanghai Pudong
Airport (PVG) Cargo Zone, China, 2013
• 2012 Safety Award - BP Zhuhai Chemical Company
Limited, 2013
• China Warehousing Service and Management
Innovation Award - China Association of
Warehousing and Storage, Shenzhen, 2011
30
Main reasons for Logistics Outsourcing
• Focus on Key Competencies (Product Development, Manufacturing, Marketing & Sales)
• Reduction of Logistics Costs
• Centralizing and Reducing Inventory
• Optimizing entire Supply Chain
• Making fixed costs variable
• Reduction of capital employed
• Superior Know-how LSP
31
• Superior Know-how LSP
• Reduced cycle times and lead times
• Improved KPI’s
• Improved Service Levels
Logistics cost reduction only has a short-term financial effect…
…whereas superior logistics services offer a long-term strategic effect and strong impact
on company performance and customer satisfaction!!!
Why CEVA?
- Increased speed to market
- Improved customer satisfaction
- Customer service enhancements
- Increased quality availability
- Operational efficiencies
- Process enhancement
Revenue
Enhancement
Operating Cost
Reduction
Profitability
Enhancement
32
- Waste reduction
- Operational procurement savings
- Reduced Cash to Cash cycle time
- Inventory reductions
- Reduced cycle times
- Capital asset transfer
- Enhanced asset utilization
- Capital procurement savings
Fixed Capital
Reduction
Working Capital
Reduction
Invested Capital Reduction
Shareholder
Value
Enhancement
Why CEVA?
Implement your business
strategy on a global scale
• Global presence with local expertise
• Control and visibility of total supply chain
• Order and supplier management
• Full suite of services everywhere
• Stable and replicable operational processes
• Excellence culture
• Robust technology and infrastructure
• Easy to do business with
Keep your promises
to your customers
Support your commitment
to sustainable development
Reduce your total
supply chain costs
• Easy to do business with
• Systematic elimination of waste (LEAN)
• Application of best practices
• Optimization of supply chains to reduce costs
• Lower inventories through better control and visibility
• Reduction of carbon footprint
• Compliance to regulations throughout the supply chain
• Safe and secure operations
33
Safety Induction
Before going into the warehouse, please take note of the below rules for your safety:
• Always wear safety shoes or tiptoes
• Always wear safety belt or vest
• Walk as much as possible in walkways
• Stay close to the group
• Watch out for Material Handling Equipment (MHE) and Trucks• Watch out for Material Handling Equipment (MHE) and Trucks
• In case of an emergency, follow instructions of the Emergency Response Team
• Don’t use the elevators for an evacuation
• Proceed to the nearest Emergency Exit
• Walk back to the Assembly Area, at the front of the guard house
34
CDC Warehouse Layout – Johnson & Johnson
DG Room
J&J Office
RDC Storage
FGX Storage
FGL Storage
Co-packing
Waste
Storage
Inbound
Sample
Test
J&J Destruction
RoomOutbound
Co-packing
Storage
35