bill stankiewicz syncreon

European Hi-Tech SummitAmsterdam 26-27 September, 2007

Customisation of Fulfillment Services

• A New Company: s y n c r e o n

• Customisation of Fulfillment Services

• How? - Best Practices

• Case Study

Agenda

• 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

+ =

Company OverviewA Premier Global Diversified Company

Group Management with Key Central Functions

Technology

Freight Forwarding & Transport Management

Industry Vertical Specific Functions

Industry Vertical Specific ServicesOperations Mgt�

Business Development�

Engineering and IT

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Company OverviewIndustry Verticals and Service Offering

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

Automotive – 34 Sites

Technology Technology Technology Technology –––– 18 Sites18 Sites18 Sites18 Sites

Company OverviewGlobal Footprint

Additional countries cover through distribution include France, Greece, Italy, Czech R., Switzerland.

� Atlanta

� Auburn Hills� Belvidere, IL

� Brownstown, MI

� Chicago, IL

� Dundee, MI� Jefferson North, MI

� Kansas City, MO

� Mt. Pleasant, TN

� mro Brownstown, MI� mro Chicago, IL

� mro Indianapolis, IN

� Norfolk, VA� Riverview, MI

� Sterling Heights, MI

� Warren, MI

USA

� Ellesmere Port

� Hinckley

UK

� Dublin

� Cork� Limerick

Ireland

� Genk

� Brussels

Belgium

� Shanghai

� Shenyang

China

� Dusseldorf (3 )

� Emden� Frankfurt

� Hamburg

� Hannover

� Ingolstadt� Niederaula

� Potsdam

� Regensburg

� Saarlouis� Stuttgart

Germany

� Santo Andre

� Curitiba� Santo Andre LOC

� San Bernardo

Brazil

� Mississauga

� Hagersville� Laval

� mro London

� Oshawa

� Port Colborne� Tillsonburg

� Windsor

Canada

� Gliwice

� Lodz

Poland

� Tilburg (2)

Netherlands

Walton, Kt�

� Warsaw

Company OverviewMain Customers

Customisation of Fulfillment Services

Value

• 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

Customisation of Fulfillment ServicesIntroduction

Implement

RFQ Analysis

OperationPlan

BPI

At Every Stage

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


Improvements are continuously identified and implementedBPI

Theoretical = actual requirements = no re-engineering need

Best practices and Best in class performanceOperational

Shorter implementation lead time with Zero defectsImplementation

Robust allowing the customer to focus on core competenciesPlan

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

• 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

• Empowerment

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


RFQ Analysis ImplementationPlan Operational BPI

• 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 Costs

Operating Costs

• SynView360� 3600 visibility

� Real-Time Web Portal

� Supports both 3PL & 4PL

� Inbound Visibility & Milestones

� FC & Distribution Track & Trace

� Electronic POD

� EDI Integration with carriers

� VMI and COI Inventory Visibility

� Transaction Reporting

� MIS

� VMI Min/Max Breach Reporting

� Aged Inventory Analysis

� KPI Reporting

� Integrated to Call Centre

Supply Chain Execution

• Transport Management� CIS

� IFMS

• EPOD/POD� EPOD capture

• Vehicle Tracking� CIS

• Customs Docs� Icarus on-line

Supply Chain Visibility

Contract Logistics

Applications Overview

• RF WMS� Warehouse Management

� Radio Frequency Driven

� Integrated MHE & Conveyors

� ERP integration

� CIM/DITM� Continental In Transit Merge

� Dynamic In Transit Merge

• Reverse Logistics� EPRC & APRC

• Bond/customs� WMS Integration to DMS/CMS

Developed and supported in-house Customised solutions to EXACT customer requirementsFully Integrated to Customer ERP Automated Conveyoring & Sortation solutions

Road/Air/Sea Freight

Freight Management

Customisation of Fulfillment ServicesInformation Technology

20

308

80

• 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

DMAIC: Improve existing

processes, services, and facilities to 6 Sigma quality

Leverage and sustain the gains achieved by improvement and creation

NPI (DMADV): New

processes, services, business and facilities to 6 Sigma

quality

Customisation of Fulfillment ServicesMethodology and Business Model

Define Measure Analyze Design Validate

• Engineering Design: New process / product - DMADV methodology

Define the project goals and customer (internal and external) deliverables

Measure and determine customer needs and specifications

Analyze the process options to meet the customer needs

Design (detailed) the process to meet the customer needs

Verify the design performance and ability to meet customer needs


Improve Control• Improve Existing Process - DMAIC

Typical effort level over a project life cycle

Define Project M A D V Integrate into Daily Work

Le

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l of

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Champion/Sponsor Project Lead and Team Team and Process Owner


Customer A

Case Study – Outbound Logistics

Case StudyOutbound Logistics for Customer “A”

Simplified Supply Chain

Inbound Supply Chain Outbound Supply Chain

SystemsComponents

• Disk drives

• Semiconductor

• Housings

• Etc.

Contract

Manufacturer

s• A

• B

Peripherals

• Monitors

• Printers

• Etc.

VMI

PC, laptop

VMI

DITM

Key

Systems

Product owned by supplier

Peripherals

Complete Orders

DITM

Regional

Fulfilment

Hub1

Reverse Logistics

Value

Added

Resellers

Corporates,

Hospitals,

Etc.

Consumers

Customers

Fulfillment:

Specific services that are integrated:

• Receiving and warehousing

• Vendor managed inventory

• Order processing

• Personalisation

• Kitting, labelling


Fulfillment:

Specific services that are integrated:

• Warranty and serial number capture

• Diagnostic and quality checking

• Country specification & localisation

• Pack-out

• Merge (complete orders)


High Level Case StudyOutbound 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


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!!!

Performance:

• Dock to Stock < 2 hours

• Inventory Accuracy 99.98% +

• Fulfillment Rate 0 backlog 99.97% +

Fulfilment Solutions:


4 PL Approach

Pan-European Network

Carrier Selection Criteria:

• Robust and secure networks able to handle Hi Techproducts

• Established range of services meeting the needs of the B2B & B2C market sectors

• Multiple in line carriers per Country based on differing consignment volumes and indemic network profiles

• A commitment to develop IT capabilities to match the syncreon’s and customer’s expectations

• Financially stable organisations

• Flexibility-Ability to provide the necessary range of service options at a commercially viable rate

IT/System Platform

• ‘T&T’ information integrated into client’s website

• IT flexibility enables the rapid connectivity of new partners. e-POD

• Internet-based Milestone Reporting service allowing access to authorised client personnel and suppliers

• Order and Trailer-level milestone tracking for CIM-RF application

Customer Service Center

Ensure all orders are processed, executed and completed while monitoring performance and

driving CIPCustomers

INTEGRATED

• Delivery Performance 99% +

• POD Entry within 48 Hours 99% +

• MWD <150 per million (5.2 sigma)


Thank you for your attention

bill stankiewicz syncreon

Documents

fulfillment services

level of customisation

fulfillment activities

inbound logistics

operations page

automotive logistics

new company

mi mro chicago