|Cooperation in Supply Chain

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Cooperationin Supply ChainArjen van Dixhoorn, Director Business Support Region Europe & Mediterranean , Elopak GmbH

Vendor Managed Inventory at Elopak

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BENJAMIN MERTENSBachelor of Arts Business Information Systems

3 years at Dr. Lauterbach & Partner

Sap-Skills: ▪ Warehouse Management▪ Logistic Execution▪ Purchasing

NATIONALITY: GermanCHARACTERISTICS

3 years Experience SAP Job Description: Business Consultant Logistics

|Dr. Lauterbach & Partner 4

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GUIDO ECKHARDTDiploma in Business Administration

7 years at Dr. Lauterbach & Partner

Sap-Skills: ▪ Order-to-Invoice▪ Enterprise Structure Design▪ Integration Management▪ Logistics Execution▪ Warehouse Management

17 years Experience SAP Job Description: Director of Business Consulting

NATIONALITY: GermanCHARACTERISTICS

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Supply Chain Cooperation

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01 02Vendor ManagedInventory

03Elopak VMI-Solution Suite

Agenda

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Supply Chain Cooperation

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Supply Chain Cooperation – Reference Model

Step 1 Step 2 Step 3 Step 4 Step 5

Integrated ERP-System

Intercompany Processing

Single DirectionTransfer

Multi DirectionExchanging

Stand-Alone Solution

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CONCEPTS

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▪ Strategic Purchasing Alliances▪ Shared Warehouse▪ Forecast Exchange▪ Cross-Docking

▪ Just-in-Time / Just-in-Sequence systems▪ Strategic Stock & Forecast Exchange

Supply Chain Cooperation – Synergy Effects

Multi DirectionExchanging

Step 5

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CONCEPTS

Comp

lexity

Efficiency

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VMI – Contains all described processes with the additional fact that the supplier takes also the responsibility for theshipment schedulingContinuous Replenishment – The supplier takes the salesand stock data as a basis for planning the delivery quantitieswhich he ships to the customer. The shipments will bescheduled based on an agreed interval.Quick Response – Short contractual agreed delivery timesto react more flexible to changing market conditions. The customer and the supplier exchange their forecast data toreduce the risk of bullwhip effect.Automatic Order Processing – The customer system sendsorders automatically to the supplier.

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Strategic Stock & Forecast Exchange

Automatic Order Processing

Quick Response

Cont. Replenishment

VMI

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Vendor Managed Inventory

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Vendor Managed Inventory - Process

DELIVERY GOODS

VEND

OR

DATA ANALYSIS DELIVERY NOTICE

CUST

OMER

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▪ Reduction of variance in demand (Bullwhip effect)▪ Shorter shipping cycles & reduction of storage costs▪ Increase of flexibility in reaction of demand trend and

changing market conditions▪ Reduction of Stock-Out scenarios▪ Service Added Value for the goods recipient▪ Long term customer relationship▪ More efficient resource planning on basis of forecast▪ Higher flexibility in production execution

Vendor Managed Inventory - Advantages

VMI

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Elopak VMI Solution Suite

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Solution Suite

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Vendor Managed Inventory forPrint & Packaging …

▪ Vendor Managed Inventory for Make-to-Order Products

▪ Product Lifecycle Management

▪ Version- & Cut-Over-Management

▪ Tool Management

KEY CHALLENGES

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Vendor Managed Inventory – Scenarios

▪ VMI-Order Monitor creates frame orders

▪ Call-Offs and Deliveries will be planned in LP. Sales Cockpit

SEMI-VMI (QUICK RESPONSE)

▪ VMI-Order Monitor creates VMI orders▪ The delivery planning will be done in

the VMI-Delivery Monitor ▪ The goods will be shipped into external

warehouse on customer side▪ Consignment usage will be posted via

LP. Sales Cockpit

CONSIGNMENT-VMI

▪ VMI-Order Monitor creates VMI orders

▪ The delivery planning will be done in the VMI-Delivery Monitor

▪ The goods will be shipped directly to the customer

FULL-VMI

Customer sends his requirement forecast and stock information via EDI1Recorded Information will be used for planning the weekly production quantities

GENERAL

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Elopak VMI Solution

Based on the recorded data, the VMI-Order Monitor allows the order handler to plan weekly production

buckets per material

VMI-Order Monitor

Based on the recorded data, the VMI-Delivery Monitor allows the order

handler to plan all shipments to fulfill the customers requirements

VMI-Delivery MonitorEDI Exchange Routine

The EDI-Interface allows a periodic exchange of requirement- and stock

data such as advanced shipping notes with the customer

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Advanced Shipping Note

Proof of Delivery

Stock Information

Requirement Forecast

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Elopak VMI-Data Transfer Routine

The EDI-Interface allows a periodic exchange of requirement- and stock

data such as advanced shipping notes with the customer

EDI Exchange RoutineOrder

ProductionShipment

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Elopak VMI-Order Monitor

Based on the recorded data, the VMI-Order Monitor allows the order handler to plan weekly production buckets per material

VMI-Order Monitor✓ Online Production information ✓ Online own Stock information✓ Visibility Stock in Transit ✓ Open order Quantity ✓ Min. / Max. Stock information ✓ Worklist control with traffic lights✓ Stock coverage calculation ✓ Traceability of data source ✓ Design Version control✓ Automatic order proposal ✓ Planning based on Sold-to level

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Elopak VMI-Delivery Monitor

Based on the recorded data, the VMI-Delivery Monitor allows the order handler to plan all

shipments to fulfill the customers requirements

VMI-Delivery Monitor✓ Requirement visibility on daily base ✓ Online own Stock information✓ Truck capacity planning✓ Transit time allocation ✓ Planning based on Ship-to level ✓ Min. / Max. Stock information ✓ Traceability of data source ✓ Design Version control✓ Automatic delivery proposal✓ Flexible Delivery planning “multi” day

selection

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▪ Truck capacity planning

▪ Transit time allocation ▪ Min. / Max. stock

information ▪ Design Version control▪ Automatic delivery

proposal▪ Flexible Delivery

planning “multi” day selection

▪ Online production information

▪ Online own stock information

▪ Min. / Max. stock information

▪ Stock coverage calculation

▪ Design Version control▪ Automatic order

proposal

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Facts & Benefits

▪ Flexible Data Structure▪ Simple Maintenance▪ Data Traceability▪ Import via EDI or Flat

File

EDI-INTEGRATION ORDER MONITOR DELIVERY MONITOR

Thankyou!