Lg presentation 2015

1,

New Zealand Supply Chain Solution

Schenker New Zealand

March 2015

2

Contents

Company IntroductionI

Schenker SolutionII

1. Account Management Plan

2. InfrastructureI. Auckland WarehouseII. Christchurch Warehouse

3. Operation and Process

I. Inbound Management

II. Outbound Management

III. Return Management

IV. IT Management

V. Transport

VI. Account Management / Innovation

4. Implementation Plan

5. Project Management Approach

1. Company Introduction – DB Schenker

2. Company Introduction – Schenker ANZ

SummaryIII

3

Contents


Schenker SolutionII







IV. IT Management

V. Transport






SummaryIII

4

Company Introduction – DB Schenker in

Numbers

55

Company Introduction – DB Schenker

NZ

Schenker New Zealand Ltd

Corporate Office:

33 Richard Pearce Drive

Airport Oaks, Mangere, Auckland

Phone: +64 9 255 2800

Fax: +64 9 255 2828

Internet: www.dbschenker.co.nz

Established in 1976

Number of Employees: 155

Number of locations: 4

Storage capacity: 16,000 + sqm

Certificates:TAPA A BondedMAFISO 9001

Security: Security Guard24/7 CCTV

Physical Aspects / CapabilitiesNarrow Aisle warehouse Multi-client10-15 metre high studTemperature ControlledDG capabilitiesRework stations – kitting, assembly etcCross-DockTransportation ManagementReverse Logistics

CHRISTCHURCH FACILITY

Dakota Park – 5500 sqm

AUCKLAND FACILITIES

Richard Pearse Drive, Airport Oaks1 x 4500 sqm1 x 3000 sqm

Hautu Drive, Wiri - 4000 sqm

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Contents


Schenker SolutionII







IV. IT Management

V. Transport






SummaryIII

77,

As a strategic business partner, LG would be managed via the DB Schenker Supply Chain Account Management

framework. Our overall goal is to supply exceptional service at the optimal cost and in this to provide optimal value to our

customers. DB Schenker has made significant investment into human resources that will be dedicated to LG NZ.

Account Management Plan

Provide a “one-face-to-the-

customer” approach

Ensure quality and consistency

from Customer perspective

Manage the operating service

requirements and standards (KPI

Management)

Conduct regular weekly/

monthly/ quarterly meetings to

review the performance

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Contents


Schenker SolutionII







IV. IT Management

V. Transport






SummaryIII

99

,

Samsung Allocation

As required

Includes Returns + Spare parts

Type of StorageFloor Storage, Racking, Shelves, Caged

Security

CCTV Cameras(16 CCTV’s) , DVRs, Onsite Security Officer Access controlled doors, Security Cage for high value parts Roadside Cameras – 24 hour monitoring

MHEFork hoists, Clamps with Pressure calibration switch

Additional Functionality

Dedicated QC area – for Reworks Dedicated RLI – Return Inspection Spare parts Warehouse

Segregation Covered Wire Fencing# of Staff - Dedication

staff – includes CS / management

22 Ha Crescent, Wiri (example)

Established on March, 2008

Total Employees:

Total W/H space : 8,419 sqm

8,419 sqm available

8.2 kms from Airport / 28.1 kms from Ports of Auckland / 2 kms to Main North / South Highway

1. Infrastructure – Auckland Warehouse

Example

10

Floor plan


Example

Canopy area

Bulk Stacking Caged High security

Spare parts

Spare parts – Temperature controlled

Returns

Hol

ding

loca

tion

for E

mpt

y TE

U’s

A

B

C

11

Dedicated Dock for LG NZ Spare parts

Docks dedicated to LG NZ Spare parts

Multi-shift to handle exceptional volume

Flexible usage of other dock

Security Cage

Pallet Space : 1000 Pallets

Products : as required


Example

Spare Parts

Total 1000 CBM stored :

Racking

Pallet Space : 1,000 Pallets

Products : as required

1212

,

1 Ivan Jamieson Place, CHC

Total Employees: 60

Total 6,000 sqm

Established on March 2008

Allocation As required

Type of Storage Racking and Floor Storage

Security

CCTV Cameras(10 CCTVs) , DVRs, Access controlled doors, Security Cage for high value parts (if required)

MHEFork hoists, Clamps with Pressure calibration switch

Segregation Stand Alone Building

# of Staff - Dedication staff + Site Manager

1. Infrastructure – Christchurch

Warehouse

13

1. Infrastructure – Christchurch

Warehouse

Floor plan

14

Contents


Schenker SolutionII







IV. IT Management

V. Transport






SummaryIII

1515,

ASN received

Custom Clearance

Port to W/H Delivery

Goods Receiving

Put Away

Inbound Planning

Inventory Mgmt

Inbound Coordinator

Inbound Coordinator will share the volume information to plan the most efficient operation resource

Pre Custom Clearance

Custom Clearance before ATA of Vessel to minimize the delay

On Time G/R KPI Mgmt

Inbound Coordinator will manage the Ocean : D+2 / Air : D+1

Daily Cycle Count

Daily System Reconciliation (SSR Report) and physical Cycle count to ensure 100% Inventory Accuracy (0% tolerance)

Inbound repackaging

Any damaged Carton will be replaced to minimize the loss

2. Operation and Process – Inbound Management

16

DO received

Stock Allocation

Picking

Dispatch

Customer Booking

Customer Booking

Dedicated transport team will contact customer to book a delivery schedule – RRDD interface

FIFO ( First In, First Out)

Schenker WMS will ensure all products to be allocated to order based on FIFO logics

Specialized MHE

Due to fragility of goods, Pressure from clamp to be set depends on product for preventing the damages

Delivery requirement QA

Staged products for dispatch will be going through Schenker’s QA check procedure before it gets loaded to truck

2. Operation and Process – Outbound Management

(1/2)

1717

,

Dispatched

Transit

Delivery Successful DFN Mgmt

IOD/POD Collection

DFN management

All DFN to be report back to LG NZ and Schenker CS to communicate with LG NZ to complete the delivery

Lead Time management

KPI Analysis team in NZ will manage the performance of Schenker and Regional Carrier

Y

N

System Visibility

Through Schenker Web Portal, Schenker will provide the step by step visibility to Samsung including RRDD

POD Visibility

Through Schenker Web Portal, Schenker will provide all electronic scan copy of POD

2. Operation and Process – Outbound Management

(2/2)

IOD Collection

Schenker will collect IOD on D+1 100% nationwide. Metro : SMS , Country : PDA – EDI from Regional Carrier

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RA received

Pick up

Customer Booking

Customer Booking

Transport team will contact customer to book a pick up schedule from both Residential and Commercial

Pick up Successful Futile Mgmt

RA receipt / De-grading

Futile management

All futile pick up will be reported to LG NZ and Schenker CS to arrange pick up again

Y

N

Inspection/De-Grading

RLI NZ to be set up for inspection of return goods and de-grading – To be confirmed by LG NZ

2. Operation and Process – Return Management

1919,

2. Operation and Process – IT Management

Warehouse Management System(WMS)

Schenker NZ already operates based on Exceed WMS

This system has been proven its reliability and functionality with several ‘like for like’ clients, in terms of

- Real time RF transmission- FIFO (First in First Out) Inventory management- Easy to use and accumulated Know How of handling customer requirement

2020,


Transport Management Tools

2121,

1. Cost Effective Model

Existing Schenker AU

WMS/TMS and leased line

infrastructure for Australia for

NZ.

2. Readiness

DB Schenker on hand to assist

in any development required.

3. Contingency Management

Multiple EDI connection

between Schenker and

Samsung


BenefitsLG – Schenker Interface Diagram

SAPSAP

LG systemLG system

LG system gatewayLG system gateway

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Scope of Services Build up the dedicated fleet for Metro

Regional + National Carrier Selection and management

Manage Reverse Logistics

Optimize truck utilization

Maintain best practice of delivery to Customer

Identify opportunity to efficient IOD/POD collection

Selection of Fleet Schenker’s Own Fleet on Major Metropolitan area

National Regional Carrier – Toll NZ

Key Performance Indicators On-time delivery, On-time IOD, Sales OTRQ

Cost per order, per product, per customer lane

Customer satisfaction survey

Line Haul Truck (Large) AKL to WLG and CHC 80 CBM Mezzanine Vehicles L/T : D+1 / D+2

Local Delivery Truck (Mid) 26 Branches 25 CBM (10 plts) L/T : CBD Metro : D

Outer Metro D+1

Local Delivery Truck (Small) 1 CBD Area 15 CBM (8 plts) L/T : CBD Metro : D Return / Home delivery Head Office

2. Operation and Process – Transport

Courier Service (Van) Point to Point – spares

repair centre 3 x runs per day Dedicated

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Total Volume in North Island – Flexible Transport Model

1. AKL – Hub + Spoke Model

2. Regional – Hub + Spoke model

3. Dedicated Milk Run to Regional Areas based on Full Capacity

Next day delivery service is available for whole Northern Island (ex AKL)

5 pm cut-off, next-day delivery for AKL milk run

3 pm cut-off, next day delivery North Island

North Island Distribution

South Island Distribution

Total Volume in South Island Current volume is approx. Same to AKL, same day delivery for CHC metro Inter-island stock transportation : Ferry (Truck) – Rail – Ocean FTL rate available for Full truck load

2. Operation and Process – Transport

24,

Continuous InnovationAccount Management

2. Operation and Process – Account Mgmt /

Innovation

25

Contents


Schenker SolutionII







IV. IT Management

V. Transport






SummaryIII

26,

Implementation Plan

27

Contents


Schenker SolutionII







IV. IT Management

V. Transport






SummaryIII

Project management approach

28

Project management approach

29

Process and IT Project Phase

Phase 1:

Project Initiati

on

Phase 2: Information Gathering

Phase 3: Development

Phase 4: Validation

Phase 5: Deployment

Phase 6: Project Stablisation

Week No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Process and ITOfficial Kickoff

BRS workshop

Solution Design & EDI data mapping

System Development System

Integration Test (SIT)

User Acceptance Test

BPV

(1) Blacko

ut(2)

Cutover to

Production

(3) Smoke

Test

Go Live

Stabilisation

Mapping

Exercise

Mapping Clarification

Solution

Confirmation

System

Configuration

UAT Connectivit

y Tests

User Acceptance

Test Preparation

Go Live

Preparation

Facility & layout

Facility

design

Facility Design signoff

Facility BuildFacility Build out, Racking Location labelling, offices

Facility

Ready

IT Equipment IT Equipment

approval & purchase

IT Equipment Setup and Ready for UAT

IT Equipment setup and

ready for Production

HR ManagersSupervisors, team leaders, CS (pre UAT)

Operators (Pre

Training)

Operations (WH, CS)

Create draft SOP

30

Contents


Schenker SolutionII







IV. IT Management

V. Transport






SummaryIII

31

Operation

• Skilled labor with Consumer electronics

product handling experience will be provided

• Dedicated Operation team will be

implemented

• Dedicated Schenker transport for Metro and

Country deliveries (volume dependent)

Implementation

• Skilled/Experienced team from AUS will be

deployed during implementation

• All IT/Operation/ Acct Management team from

AUS have been identified and ready to support

• Dedicated Account Manager will be assigned

Cost Benefits

• “Minimum Risk, Maximum Service Level”

• Utilization of tailor-made solutions in all area

• Continuous cost saving opportunities – Gain

Sharing

• Long term Business partnership

IT

• “Copy & Paste” of existing IT systems

• Current IT service will be all available to LG NZ

such as T&T visibility/ TMS / WMS

• Implementation team from regional is ready to

support Schenker NZ

Summary

“Best Value” determination of DB Schenker for LG NZ

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DB Schenker: Committed to becomingthe leading transport and logistics provider for LG New Zealand

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