from a niche market to a multibillion-dollar business: logistics lessons to localization...
TRANSCRIPT
From a Niche Market to a Multibillion Dollar Business:
Logistics Lessons to Localization Stakeholders
Wagner CovosCEVA Logistics
Logistics is the management of the flow of goods, information, and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security.
Definitions
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer.
Transport is the movement of goods from one location to another.
Agenda• Introduction to CEVA
• Logistics Market Evolution
• Challenges for Growth
• Summary
• Food for Thought
Agenda• Introduction to CEVA
• Logistics Market Evolution
• Challenges for Growth
• Summary
• Food for Thought
CEVA: Merger of TNT Logistics and EGL
5
• 6.3 billion Euro revenue• 54,000 employees• 1,171 locations in 100 countries
Agenda• Introduction to CEVA
• Logistics Market Evolution
• Challenges for Growth
• Summary
• Food for Thought
Evolution
Factory Point of Sales
Before 1940
Evolution
Factory Point of Sales
1940s
•Freight concept
Eur 10Bn
Evolution1950s
Factory Point of SalesWarehouse
Eur 30Bn
• Buffer Stock
1956 - Ocean container
Evolution1960s
Factory
Point of Sales
Warehouse
Eur 80Bn• Freight Management
Distribution Center
• Inbound • Distribution Center• Inventory Management
Evolution1970s
FactoryWarehouse
Eur 120Bn
• Suppliers planning (inbound)• Inbound Consol Center (feeding)• Inventory Management (Inbound / Outbound)
Suppliers
Distribution Centers
Point of Sales
InboundWarehouse
Evolution1980s
FactoryWarehouse
Eur 150Bn
• Inside Logistics Revolution• Kanban / ‘Just in Time’ concept
• Lean Concept • Supply Chain• Production linked with logistics• Material Management
Suppliers
Distribution CentersSuppliers
Point of Sales
Evolution1990s
FactoryPoint of Sales
Warehouse
Eur 220Bn
Suppliers
Distribution Centers
Suppliers
Manufacturing Support Line Replenishment Inventory Planning Special Packing
JIT in Distribution Centers Globalization Challenges• Communication (IT)
Evolution2000 - 2010
Factory Point of SalesWarehouse
Eur 300Bn
Suppliers
Distribution Centers
Suppliers
Manufacturing Support Assembly Direct Buy Trading Services•Web delivery
Home
SummaryLogistics Market Evolution - Eur Bn
050
100150200250300350
1940 1950 1960 1970 1980 1990 2000
Added ValueTransports
4th Largest Global Supply Chain Company
0
50
100
150
200
250
300
350
GlobalMarket
Top 10Companies
€300bn
€83bn
123456789
10
25,73914,05710,3486,2955,7735,2495,0134,6853,6463,644
Company’08 rev
(Eur M) Global Logistics Market
This Matters! Logistics costs represent 7.8% of the world’s GDP
Logistics Market Evolution - Eur Bn
050
100150200250300350
Added ValueTransport
Summary
4.2Tr
Agenda• Introduction to CEVA
• Logistics Market Evolution
• Challenges for growth
• Summary
• Food for thought
ChallengesGlobal Resources
Global Production
Global Infrastructure
Result – Emergence of Multiple Global Supply Chains
Asset-Light
Integrated Solutions
Combination of Freight Forwarding and Contract Logistics Assets
ACR
Valu
e A
dded
Ser
vice
s
Outsourcing
Rise of Contract Logistics for Efficient Supply Chain Management
Asset Providers for Simple Transportation Needs
Growth of Specialized Asset-Light Providers
Asset-Based
22
Evol
utio
n
What Drives Green – Some Early Drivers
• “It seems to benefit your reputation”
• “Everybody talks about it”
• “Governments are forcing us to act”
• “Flavor of the month”
Some New Supply Chain Skill Sets
• Information management
• Multi-culturalism• Supply chain
design• Educate
customers for outsourcing
25
ActivitiesFull supply chain operation and dress up of engines:
• Parts Schedule and Purchase • Milk Run• Inventory management• Assembly • Sequencing• GM line feeding
Key Facts and Figures• Management of 30 suppliers both national and
international• Year Production: 220K modules (2009) • More than 70 employees
Start DateOct/2006 – Dress UpApr/2009 – Direct Buy
Innovation
Logistics Market Evolution - Eur Bn
050
100150200250300350
Added ValueTransport
Summary
Agenda• Introduction to CEVA
• Logistics Market Evolution
• Challenges for Growth
• Summary
• Food for Thought
From this…
Factory Point of Sales
…to Unparalleled Integrated End-to-End Supply Chain Solutions
SupplierPick-up
Outbound LogisticsDedicated warehousingConsolidationContainer stuffing
Inbound LogisticsWarehouse managemente-Fulfillment
Local Transportation Management
Swaps and Return
Value Added ServicesLead Logistics ProviderTotal Supply chain management consultingRoute optimizationBilling payment and claims managementWeb-based tracking and reportingOrder management
User
Control Tower
OceanAirLand
Custom BrokerageOrigin servicesDestination servicesPort services
International Multi-modal Transportation
Manufacturing SupportSub-assemblyInventory planningLine replenishmentSpecial Packing
Slide 29
Agenda• Introduction to CEVA
• Logistics Market Evolution
• Challenges for Growth
• Summary
• Food for Thought
Food for Thought• How can the translation and localization market add
value to its customers?
• What are the boundaries to overcome?
• Who is thinking outside the box?
• How to turn threats into opportunities?
• Freight company => Logistics Service ProviderTranslation company => Language Service Provider
