Transport organization Danone Europe
1
2
AGENDA
1. ID Logistics 4PL specialist
2. IDEO : an ID Logistics and Danone Company
3. Danone project
4. Road PL : ID Logistics TMS
5. Technical solution
6. Optimization lever
7. Implementation
8. Commercial offer
3
ID Logistics 4PL specialist
Tran
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ID LOGISTICS AND DANONE
KEY FIGURES
ID Logistics group turnover Breakdown of capital stockGroup description
18 500Employees
16Countries
275 locations in the world
5,000,000 sqm
35% Mass Retail
31% Industry
34% Unit Picking
Danone – ID Logistics partnership
operations with Danone
53 M€
In 4 countries
France S AFRICA Indonesia Brazil
DANONE WATER
European 4 PL( JV DNN- IDL)
6 DC
Early nutrition
1 DC207 FTE
5 DC + 12 XD
Transportation
170 KT
DANONE DIARY
20 000 m²
1- ID Logistics 4PL specialist
AFRICA
2 countries49,000 sqm
EUROPE
8 countries4,200,000 sqm
ASIA
3 countries215,000 sqm
INDIAN OCEAN
1 country37,000 sqm
SOUTHAMERICA
2 countries646,000 sqm
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International footprint16 countries - More than 5,000,000 sqm of warehouses
ID LOGISTICS WORLDWIDE
1- ID Logistics 4PL specialist
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FRANCE
PORTUGAL
SPAIN
BENELUX
POLAND
GERMANY
RUSSIA
Leading contract logistics in Europe
ID LOGISTICS IN EUROPE
A pan-European offer
8 countries
200 warehouses
More than 4,200,000 sqm
1- ID Logistics 4PL specialist
FOOD RETAIL
FMCG
NON FOOD RETAIL
7
OUR CLIENTS
HIGH-TECH
1- ID Logistics 4PL specialist
FRAGRANCE
& COSMETICSFASHION
DEFENSE &
AEROSPACE
E-COMMERCE
HEALTHCARE
AUTOMOTIVE
OUR CLIENTS
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1- ID Logistics 4PL specialist
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ID LOGISTICS ACTIVITIES
UNIT PICKING AND AUTOMATIZATION
•Unit Picking, Multi-SKU
• Luxe, fashion fragrance and cosmetic, pharma, e-commerce
•Mechanized systems for storage and picking
WAREHOUSING FOR RETAIL AND INDUSTRY
•Warehouse management ambient and fresh, SEVESO
•Dedicated, pooled warehouses, Factory DC
•Picking, Co packing and value added operations
•Construction, tailored made building
CONTROL TOWER AND TRANSPORTATION
•Engineering : network modeling, transport optimization, lean management, purchase
•4 PL organization, control tower
•Transport with own fleet, chartering
1- ID Logistics 4PL specialist
10
4PL Expert
250 experts
of transport management
+ de 3,5 millionsShipments management yearly
22 control Towersin 13 countries
Multi servicesCases
FTL LTL
Air
Sea
430 carriers
connected
1 TMSDeveloped internally
ID LOGISTICS ACTIVITIES
1- ID Logistics 4PL specialist
1111
Danone’s
Plant in Beijing
Warehouse
Inner Plant
Service:
Co-packing inner Plant
Service:
PrimaryTransportation
Regional Distribution
Center in SH, GZ
Service:
Warehousing
Service:
Secondary Distribution
Truck managed by
IDL
Stores
( 1200 in Shanghai, 300 in
Guangzhou every day)
Overall supply chain solutions from Plant to Stores
(Time controlling & Temperature controlling)
Temperature controlled
warehouse & platform & truck
Truck managed by
IDL
ID LOGISTICS AND DANONE
1- ID Logistics 4PL specialist
1212
A chilled distribution network
Delivery perimeter
Distribution on National territory
Export to neighbour countries
Botswana, Namibia, Swaziland
Our lead time
All deliveries are performed within 24h/48h
88% of our customers are
delivered in 24h
Profile of the company
Volume
Deliveries
Trucks
Creation
Turnover
Scope
2014
35 M€ (2015)
Transportation and warehousing
150 KT
370 000
197
ID LOGISTICS AND DANONE
1- ID Logistics 4PL specialist
1313
> In close cooperation with Danone, ID logistics has settled a complete and detailed business plan year by year from 2016 to 2021. Target is to include new customers inside the current network
CHILED FOOD MARKET IN BRAZIL: 4 907 KT in 2014
BP MODELLING : Reach 200 KT in 6 years ( 4% of the chilled market)
TOP 5 market
321 KTMarket size
CHEESE PROCESS MEAT FLAVOURED MILK CHOCOLATE
729 KT
BUTER MARGARINE
120KTTons included in BP 7KT
533 KT525 KT
40KT 10KT
247 KT
20KT
> Our BP is settled on a detailed study based on market analysis and contacts with managers of the targeted companies.
Alliance
growth
Companies included in our BPCheese
Process Meat Flavoured milk drinks
Butter margarine
Chocolate
15 KT
ID LOGISTICS AND DANONE
1- ID Logistics 4PL specialist
1414
Network modeling study
Flux amont
Flux AvalLege
nd
e
RESULTS
The current network is currently well optimized considering the French perimeter. Some opportunities to be studied including Belgium/Germany
FRENCH NETWORK OK
Opportunities in outsourcing
ID LOGISTICS AND DANONE
1- ID Logistics 4PL specialist
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Tactical optimization study Conclusions
Yearly savings
ID LOGISTICS AND DANONE
1- ID Logistics 4PL specialist
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IDEO : a Danone and ID Logisticscompany
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General presentation
Operational coordination of Road, Rail
and warehouse activitiesProcurement
Studies and projects
(optimization Rail and Road)
Key features
Presence
Global
management
Management and
animation of the road
transportation plan
Management and
animation of the rail
network
Management and
animation of the
warehouse network
Multi clients 4PL
45 experts of the transportation
management Loading and
delivery area
Delivery area
Use of internal TMS : Road PL
GENERAL PRESENTATION
2- IDEO a Danone and ID Logistics company
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• Adaptable solutions
- Adaptability to customer needs (modular offer, organization location, ramp-up plan)
- Projects and productivity plans are built, setup and adapted with the customer
• Full transparency & 100% savings benefit
– No hidden cost
– Full benefit of transport plan : hauliers’ costs for the customer
• Continuous Improvement & Innovation platform
– Continuous improvement process with a optimization plan follow up
– Innovation : customers benchmark & open innovation
– Lean management
GENERAL PRESENTATION
2- IDEO a Danone and ID Logistics company
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IDEO has been designed to serve an increasing quantity of customers
This volume growth will allow us to generate additional savings that will boost the control tower attractiveness
Saving evolution depending on the quantity of partners
€ saved
Partners #
A new partner join the ID Logisitics’
control Tower
Increase of the volume shipped
Growth of the potential for synergies
Decrease of the transportation cost
Better attractiveness
1
2
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5
ID Logistics control tower
CONCEPT
2- IDEO a Danone and ID Logistics company
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Innovation is our DNA
A FOCUS ON OPTIMIZATION AND INNOVATION
1- IDEO a Danone and ID Logistics company
In 2016 IDEO has organized a call for project to selection the more promising start up able to provide added value to IDEO: This project was oriented on :
- Dynamic optimization on an open environment
- Big data, machine learning
- “Uberization”, digitalization
12 start up were selected by ID Logistcs to participle to the contest
Jury was composed of 6 key customers and ID Logistics
3 companies were awarded and are now developing their project with the operational and financial support of ID logistics
5 finalists
12 start-up enrolled
3 winners
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Activities
Ad
d V
alu
e
Op
era
tio
ns
Skills Team Key elementsClients Implantation
• Road • 20 ETP150 000 OT/
year
• Rail • 6 ETP 1 500 trens/year
• Network • 4 ETP10
warehouses
• Procure
ments• 3 ETP 150 M€/year
• Road • 2 ETP+50% in peak
season
• Project • 5 ETP -1,5 M€/year
A TEAM READY TO JUMP
1- IDEO a Danone and ID Logistics company
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Project scope
NEE
DS
3
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VOLUMES
3- Project scope
Map Key datas
Trucks/ year 71 040
Deliveries/ year 74 904
1,05 deliveries/truck
Factories 15
Main unloading site 40
Suppliers 9
Volume per country
Carriers 40
Appointment for deliveries 50%
Shipments/yearLoaded
paletts/year
France 40 831 1 330 128
Unloaded
paletts/year
Poland 8 964 287 558
Belgium 7 385 235 502
Germany 7 526 233 378
Czech Republic 3 168 104 165
Spain 2 630 80 208
Other 622 20 189
1 152 737
238 212
109 687
77 412
89 815
48 238
576 058
Total 71 136 2 291 129 2 292 158
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Lanes
Active lanes 350
Direct lanes 316
1 stop-point-lanes 31
2 stop-point-lanes 3
Loading density
Shipments = 33pal 74 %
26 %
55 000 trucks
19 000 trucks
Shipments < 33pal
Main countries in term of shipments are France, Germany, Poland and Belgium
They represent 90% of the lanes 19 000 trucks are charged with less than 30 pallets
Focus on shipments < 33pal ( 26% of the total volume)
VOLUMES
3- Project scope
Focus on Departure point
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DANONE TARGETS
3- Project scope
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ID LOGISTICS ANSWERS
3- Project scope
CSL
COST OPTIMIZATION
EXTEND VISIBILITY
REACTIVITY FLEXIBILITY
Our 4PL teams currently manage a transportation turnover of more than 390 M€ all over Europe with a large expertise of Danone
A TMS developed internally tailor made for DANONE
We offer a centralized and detailed data capture : performance management KPI, specific add hoc studies
Our TMS is able to offer track and trace and go further to real time tracking
Homogenous processes will by driven by our team in all Europe
A great experience in implementation all over the world
CO2
We have settled a tool box to optimize the transportation plan of our customers
In this offer, we have evaluated in a first A level approach of the saving potential
The Carbon footprint is measured through our tools following ademe rules
Our experience in leading green project ( biogas, density, roundtrips)
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TMS
Tran
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ste
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Evolutive solution
Mobilité
Road PLGC Client
WMS IDL et/ou Client
Optimisation dynamique
Yard management
TMS Transporteurs
Informations clients
GPS
Outil service client
Rapports / KPI’s
Easy Check-in
CO2
4- TMS
A LARGE AND SCALABLE ENVIRONMENT
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TMS FEATURES
Tracing• Real time follow up of the
shipment status• GPS• PDA
Consignee appointments• Key in • Expected Time Arrival
Transport planning• Group, merge and optimize the
planning
Delivery feed back• Qualification of the delivery• POD on the web• Claim management
Loading time slot management in DC
• DC define its loading capacity per hour
• Carrier select an available time slot
Activity monitoring• Score cards• Business Object access• Alerts : Information push ( e mail
sms)
Multi users access• Restricted by a
password
Reverse logistics • Return shipment• Palett• packaging
4- TMS
FEATURES
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4- TMS
KPI
5
6
1
2
3
4
Creation / delivery
modification
Booking : Loading
appointment
Truck arrival for loading
Loading start
Loading end
Delivery information
IT link
7 Global cost per company
ARCHITECTURE
1
2
3
6
4 5
7
SAP
Interfaces Link
We estimate a minimum of 2
interfaces per country with
factories + 4 with transwide
= 18 interfaces
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Technical offer
PR
OC
ESS
5
3232
WHERE DO WE NEED TO SETTLE THE TEAM
5- Technical offer
To guarantee this service level, the team must by reactive, must understand cristal clear customer needs and must be able to influence decision at all levels
France ?
Bénélux ?
Poland ?
Germany ?
Labour and site costs
Availability of skilled personnel /
Attractiveness for Employees
Operational support
and mutualisation
Close to the biggest factories
Business extension capabilities Poland and France seems to be 2 interesting options- Poland for the cost of human resources
- France for the mutualization perspectives, the support team and the business extension capability
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planner
Manager1
Admin
deputy
3 FTE
1
tracker
2FTE
5 FTE
Organization chart for Poland Main tasks
ORGANIZATION CHART
5- Technical offer
Considering the volume presented in this document ,the mains characteristics of your activity, the process and the TMS that will be implemented we can deduct the following organization. This sizing has to be fine tune during the latter steps
Trackers
Daily optimization of transportation plan
Daily carrier management
Back up and chartering
Planners
Deputy
Manager
Loading and unloading follow up
Deliveries follow-up
Team manager
Customer contact
Carrier management
Control and cost follow-up
Manager’s subsitute
Lean management
Improvement plan
Project management
KPI’s
Interface with factories and DC”s
Cost control
Administrative
Loading and unloading follow up
Deliveries follow-up
Interface with factories and DC”s
Claims management
Buyer1
- Labour cost
- Proximity with our polish transportation team
- Far from IDEO, for start up especially
- No mutualization
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planner
Manager1
Admin
deputy
3 FTE
0,8
tracker
2FTE
5 FTE
Organization chart for France
5- Technical offer
Buyer0,8
- Mutualization
- Team proximity during start up
- ID Logistics’ competency center
- France is the biggest country
- Human ressources cost
- Considering the volume presented in this document ,the mains characteristics of your activity, the process and the TMS that will be implemented we can deduct the following organization.
- This sizing has to be fine tune during the latter steps
ORGANIZATION CHART
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OPTIMIZATION LEVERS
CO
ST O
PTI
MIZ
ATI
ON
6
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Dedicated
Spot
Density
DPS
COST Control
Pallets & pack
Lean
Procurement
Sustainability
Implement a dedicated fleet on short distance
Multi customer Dynamic optimization on to cut empty kilometer
Increase truck usage (weight, Group, Multi pick, multi drop)
Increase direct plant shipment
Decrease fixe storage cost by flexible cloud storage
implementation
Use of Pallets and packaging delivery to cut empty kilometer
Lean methodology to cut non added value task
Procurement massification
Rail, Alternative energy, CO2 measurement
PRODUCTIVITY TOOL BOX
6- Optimization levers
OPTIMIZATION LEVERS DESCRIPTION
primary
secondary
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SPOT OPTIMIZATION
PRODUCTIVITY TOOL BOX
6- Optimization levers
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SPOT OPTIMIZATION
6- Optimization levers
IN CHARGE OF TOOL USED
The deputy
supported by the
IDEO R&D team
leaded by
Constance Job
Find in one spaghetti plate…. …A cost efficient round trip
✔ Empty km rate : 25%
✔ Returning to the departure point mandatory
✔ Maximum 3 order per truck
✔ Driving time: respect of European legislation
MAPPINGA FIRST SIMULATION ON DANONE FLOWS
RESULTS
8 troundtrips (21 orders optimized)
on 235 9% of Danone routes
Empty km rate : 9 % (average)
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SPOT OPTIMIZATION
6- Optimization levers
DANONE PRIMARY EU TACTICAL OPTIMIZATIONEXAMPLE 1
• Loading in Parets (ES)
• Delivery in Hatfield (UK)
• Loading in Le Molay (FR)
• Delivery in Bucarest (RO)
• Loading in Bucarest (RO)
• Delivery in Saint Cugat (ES)
Roundtrip description
Results :
Empty km : 5%
DANONE PRIMARY EU TACTICAL OPTIMIZATION EXAMPLE 2
• Chargement à Aldaia (ES)
• Livraison à Ochsenfurt (GE)
• Rechargement à Ochsenfurt (GE)
• Livraison à Getafe(ES)
Roundtrip description
Results :
Empty km : 9%
Tactical Optimization can be launched on DANONE’s primary flows only :
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SPOT OPTIMIZATION
6- Optimization levers
DANONE PRIMARY EU + DISTRIBUTIONEXAMPLE 3
Tactical optimization can be enlarge to the distribution flows
Le Molay->Tour->SU OFS et/ou Leclerc Lisieux Le Molay->Paris Sud ->Logidis Carpiquet
Villecomtal -> Toulouse -> Intermarché Lectoure Ferrieres -> Paris Nord -> Simply Rouen/DLP grand Quevilly
FTL /week
Km roundtrip
Empty km
Current cost
5
Savings
600
50
860 €
4%
5
590
40
823 €
2%
5
327
83
431 €
2%
5
352
60
612 €
3%
FTL /week
Km roundtrip
Empty km
Current cost
Savings
FTL /week
Km roundtrip
Empty km
Current cost
Savings
FTL /week
Km roundtrip
Empty km
Current cost
Savings
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SPOT OPTIMIZATION
6- Optimization levers
Last steps would be to include other IDEO’s Customer …with a Dynamic optimization
Shippeo is one of the French leader for transport tracking with mobile apps. Thanks to the data collected with this apps they are able to merge in the same tool fret volume of many customers. ID Logistics is supporting this start up to
develop a new optimization tool with one target :
DANONE PRIMARY EU TACTICAL OPTIMIZATION
Explanation
Fret client 1 Fret client n
1. Information on the possible round trips provided by shippeo
2. ID Logistics 4PL validates the round trips and the associated savings
3. An offer is sent on the mobile app of the carrier
4. The carrier refuse or accept the backway
Distribution Danone
Inter co FR
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SPOT OPTIMIZATION
6- Optimization levers
SAVINGS EXTRAPOLATION
SAVINGS EXTRAPOLATION
% flowsAssociated
turnoverSavings Accessibility Net savings
9% 60 M€ 3% 60 % 100 K€Primary round trips
18% 60 M€ 3% 60 % 195 K€Primary + distrbution
22% 60 M€ 3% 60 % 240 K€Primary + distrbution +
Multi DO
The integration of the distribution will help up to find local optimization with dedicated
trucks in high density areas : Density map
Example in France : 3
clusters with 70% of the
volume
Round trips
250 K€Additional Net
savings
Stage 2
Stage 3
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INVOICE CONTROL
COST CONTROL
6- Optimization levers
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CONCEPT
In charge of
The trackers will have the
visibility on all the extra cost.
He will work closely with the
carriers to analyze the
discrepancies. The manager
will validate the invoices
DIRECT VALIDATION OF THE COST ON THE WEB ACCESS BY THE CARRIER
• ID Logistics send to the carriers each week the calculation of the transport cost shipment per shipment• The carrier receive on its web portal this first cost estimate. He is able to validate it directly on the web• In case of discrepancy, he can propose a modification and has to include the associated justification
Thanks to our TMS, the process and the expertise of our team, we’ve reach a 99,955% accuracy on the invoices. It brings 2 important savings :
- Invoice accuracy : -3% cost optimization on all the volume with exception of France
SAVINGS EXTRAPOLATION
% flowsAssociated
turnoverSavings Accessibility Net savings
50% 60 M€ 3% 95 % 855 K€
Tool used
Savings
INVOICE CONTROL
6- Optimization levers
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DENSITY
PRODUCTIVITY TOOL BOX
6- Optimization levers
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CONCEPT
In charge of
A global project has to be
launched by our project
manager ( deputy) to follow
up and improve this ratio
• 26 % of the shipments have less than 33 pallets• The available space in the trucks is 4,6% ( 31,5 pallets per shipment)• The target is to reach a better filling ratio
SAVINGS EXTRAPOLATION
% flowsAssociated
turnoverSavings Accessibility Net savings
100% 60M€ 4,6% 30 % 828 K€
Methods
• Give a better visibility to the replenishment team• Work closely with them to be able to push/hold volume
into the network when it makes sense
Replenishment
• Optimize the transport with co-loading or multi drops
Multi pick /multi drops
• Improve the purchase policy for LTL and palettdistribution
Purchase
DENSITY
6- Optimization levers
47 15/11/1647
Pallets
PALLETS MANAGEMENT
6- Optimization levers
48
CONCEPT
In charge of
• 2 200 000 paletts ( LPR, Europe..) are used each year in Europe to transport the products• Danone doesn’t have any tool to track and trace those packaging• The target is to limit the losses and optimize the pallets relocation to factory
SAVINGS EXTRAPOLATION
flowsAssociated
turnoverSavings Access. Net savings
2,2M pallets 26,4 M€ 0,5% 50% 65 K€
Methods
• Pallets are tack from loading to delivery
Utilisation of Road PL
• The debt of each site is monitored by our control tower
• An alert is sent to Danone in case of discrepancy
Accountability is verified by our team
• Our team is in charge of the pallet relocation on factory to optimize the transportation and the stock level
Pallet stock management
1 administrative will be in
charge of the pallets
management
PALLETS MANAGEMENT
6- Optimization levers
LOOSES
5 ETP 100 K€ 100% 75% 75 K€Auto -
accountability
30% 2,3 M€ 3% 75% 15 K€Stock control pallet
relocation
Stock control pallet relocation 155K€
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Purchase
PURCHASE
6- Optimization levers
50
Purchasing manager
F.X. Dehay
Rail buyer
F. MOREAU
Road FR
S. Blanc
Lapierre
Road Inter
C. Kapsa
Road LTL
C. job
SPEND :
90M€ Road
57M€ Rail
Volumes :
115 000 trucks
>1500 full trains
Lanes :
1700
11 countries delivered
Carriers :
138 contracted>500 in our network
PURCHASE
6- Optimization levers
51
Needs and objectives
identificationSourcing of suppliersPreparation of the RFQ
Launch and sum up of
the RFI
Launch and follow up of
the RFQ
Negotiation animation
RFQ analysis and
negotiation strategy
Analysis and feedback
to the hauliersLast Round negotiation
ContractualisationConstruction of the
transportation plantKPI
ConsultationValidation
Client
Participantlead
Client
Client Client Client
Client
Client ClientClient
Client
Client Client
PURCHASE
6- Optimization levers
52
Les aTouts achats IDEO
IDEO invests in its relationship with carriers
COMMUNICATION
Attractivity of Ideo
• Newsletter for carrier• Satisfaction survey followed by
specific actions• Supplier Day : What are the objectives
for the year to come , how to reach them ?
• Audit before peak season
DASHBOARD AND MAPPING
• Monthly analysis of the top 10 carriers• Monthly analysis of the Bottom 10
carriers• Identification of main problematic
lanes• Trigger of COPIL with worse
performing suppliers• Corrective actions and transport plan
modifications
Macro analysis
COPIL
• Proximity with operational teams and measurement of bad performance
• Reactivity in finding replacement solutions
• Use of PRISME classification• Exchanges of recap via extranet and
follow up of corrective actions• Escalation with integration of the
client in the main meetings
Purchasing credibility
Source : palmarès mensuel par transporteur + palmarès par ligne et par transporteurs
TOP 10 Nb OT Perf Déjà M-1 Bottom 10 Nb OT Perf Déjà M-1
GEODIS 444 98,2% oui TND CHAMBERY 365 92,2% oui
SARL MULTITRANSPORTS 444 98,2% non TRANSALLIANCE 146 93,32% oui
TLE 378 99% oui PALLUT 74 91,4% non
DUPESSEY 355 100% oui ALTAVIA OPTITRANS DEF 55 91,4% oui
CHEVALLIER 275 100% oui JC FIOLET 48 92,2% oui
BOURRAT 219 99,5% oui TRANSPORTS LA VILAINOISE SAS46 88,3% non
PERRENOT 139 98,6% non CARREFOUR TPT 40 81,3% non
MALHERBE 136 98,5% non COTRAMA 31 85,7% non
JACQUEMMOZ 131 99,2% oui LAHAYE S.A.S 31 83,4% non
Corsi - F.I.T. sas 129 96,2% oui CODOGNOTTO 18 85,0% non
Perf Déjà M-1
92,87% oui
86,05% non
90,84% non
91,92% non
81,42% non
Fx Dehay
Tableau de Bord Performance DEF - Activité du mois de Février/ XXXX OT
Bottom 5 Perf Lignes :
Lignes Nb OT
VOLVIC-AIN 132
VOLVIC - COTE D'ARMOR 64
BRETIGNY-PAS DE CALAIS 61
AMBERIEU-RHONE 47
VOLVIC - SARTHE 42
92,00%
96,00%
98,00%
91,00%
88,00%
90,00%
93,00%
88,63%
96,00%
93,00%
94,78%
89,00%
96,94%
85,0%
87,0%
89,0%
91,0%
93,0%
95,0%
97,0%
99,0%
PURCHASE
6- Optimization levers
Net savings
0,5%/year
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Sustainability
PURCHASE
6- Optimization levers
54
> CO2 is measured in our TMS following the Ademe rules
> Detail carbon footprint is calculated per SKU/customer/truck/carrier
> Possibility to include information coming from onboard devices ( real emissions : level 4)
> Support/engineering to decrease Co2 emissions
Carbon foot
Carbon footprint measurement
9 kg CO² / pallet
199 g CO²/box
11 g CO² / SKU
570 kg CO² / Truck
Measure
Improve
Specifictrucks
Rail Road
Eco Driving
Transport Optimization
SUSTAINABILITY
6- Optimization levers
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LEAN
LEAN MANAGEMENT
6- Optimization levers
56
CENTRALIZATION – TMS IMPLEMENTATION
6- Optimization levers
CONCEPT• The implementation of a TMS allows an automation of the low value added tasks• The centralization of the team should give us the benefits of large scale
Current situation Evolution 2017
Impacts of this evolution
• Local teams in charge of
transport management in all
the countries
• 1 purchase dept in NL
• 1 TMS : Transwide in France
• 1 TMS in Poland
• Manual operations for the
rest of Europe
• One single team in charge of
the daily operations,
purchase and re-engineering
To Increase productivity
To Improve efficiency on the continuous improvement process
To Get a better visibility on the supply chain
To Bring more reactivity
THE IMPLEMENTATION OF THE ID LOGISTICS 4PL SOULD NOT
GENERATE ADDITIONAL COST ON HUMAN RESSOURCES
57 15/11/16
RESUM
RESUM
6- Optimization levers
58
RESUM
6- Optimization levers
Savings resums
100 K€Primary round trips
855 K€Invoice control
828 K€
155 K€
Density
Pallets
900 K€Purchase : O,5% during 3 years
2,84 M€Targeted savings 5th year
Implementation
phase
2018 VS 2017 : - 1,16M€
2019 VS 2017 : - 1,92 M€
2020 VS 2017 : - 2,76M€
YEARLY SAVINGS
Cumulative savings VS 2017
0 K€Year 1
- 1 160 K€Year 2
- 1 920K€Year 3
- 2 760 K€Year 4
- 5 840 K€TOTAL
++
+
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IMPLEMENTATION
STA
RT
UP
7
59
60
First DRAFT
Jan. 17
Feb.-17
March.-17
April.-17
May.-17
juin-17
Juil.-17
août.-17
sept-17
Oct -17
nov.-17
dec.-17
janv.-18
fev.-18
2017
3 PL selection
Process definition
LOIContract
TMS
Activity Start
Go-Live
Operations
Work shops
Process definition
Training/operational support
Project phase
Training
Data collection / AnalyseProject and
purchase
Work shops
2018
RAMP UP
Specification book
Contract
Phase 1 : Benelux, Germany, north EU
Take over
Phase 2 : Poland, tchek rep, Eastern
Phase 3 : France
PLANNING
7- Implementation
Phase 4 : Rest of EU
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Leader
TBD Denis PaugetProject Director
E. GuerinGM IDEO
TBD
Sponsor
TDBLogistics operations
TBDProcess and methods
TBDIS IT
Benoit MugnierOperations
Frederic InfantiProcess
Franck FerronIS IT
Members
Christophe SatinGM GroupID Logistics
TBD
WORKLOAD for DANONE
Man day
• Logistics operations 40
• Process methods 60
• IS IT ( Without EDI development) 60
• Project manager 60
• TOTAL 220
PLANNING
7- Implementation
http://www.heliovision.fr/products/images/Danone.gifhttp://www.heliovision.fr/products/images/Danone.gif
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CommercialOffer
Co
mm
erc
ial o
ffe
r
8
YEARLY BUDGET
8- Commercial offer
• 1 project manager + 1 buyerPurchase and project team
• 1 manager, 5 planners, 2 trackers, 3 administratives, TMS, Offices
Operationnalteam and TMS
12
74 904Transport orders
Yearly TOTAL, invoice in Zloty
17 885 €
10,17€
Unit unit cost
976 072 €
214 505 €
761 567€
Yearly budget
POLAND
START UP COST, invoice in € 90 537€
• 0,8 project manager + 0,8 buyerPurchase and project team
• 1 manager, 5 planners, 2 trackers, 3 administratives, TMS, Offices
Operationnalteam and TMS
12
74 904Transport orders
Yearly TOTAL
14 143€
12,82€
Unit unit cost
1 129 832 €
169 718 €
960 115 €
Yearly budget
FRANCE
START UP COST 71 191€
Interface A level evaluation
Interface A level evaluation
72 000 €
72 000 €
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B CASE FRANCE
8- Commercial offer
4 PL 4 years
4 096 K€
Transport
Cost
4 years
240 M€
Start up Cost :
72 K€
Centralization
2 469 K€
Cost
optimization
5 840 K€
Transport
Cost
4 years
235.9 M€
-4 070 K€ : -1,7%
Interfaces:
72 K€
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B CASE FRANCE
8- Commercial offer
SAVINGS AND COST YEAR AFTER YEAR
ROI < Y +2
T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4START UP COST EDI 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144
4PL COST 141 424 706 989 1 271 1 553 1 836 2 118 2 401 2 683 2 966 3 248 3 531 3 813 4 096
TRANSPORTATION SAVING - - 250 523 824 1 161 1 586 2 040 2 533 3 081 3 731 4 421 5 131 5 840
CENTRALIZATION 99 296 494 691 889 1 086 1 284 1 481 1 679 1 876 2 074 2 271 2 469
TOTAL COST DANONE 144 285 568 751 586 398 183 70 - 410 - 779 - 1 187 - 1 650 - 2 215 - 2 820 - 3 445 - 4 070 -
2017 2018 2019 2020
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B CASE
8- Commercial offer
VISIBILITY
HOMOGENOUS PROCESS
INNOVATION AND CONTINUOUS IMPROVEMENT
COST CONTROL
CARBON FOOTPRINT OPTIMIZATION
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Terms and Conditions
• Our prices are based on the elements supplied by DANONE specification data• Price are valid for the volumes indicated in our offer +/-15%• Prices provided are valid from Jan 1st 2017 to Dec 31st 2017• Prices expressed in Euro excluding VAT
Price validity
• Invoicing is monthly and payable at 30 days from the invoicing dateInvoicing
• This proposal is based on a 3-years contract renewable Contract
• TMS IT : Syntex index T2 2016• Human resources ( team in France : Indice INSEE du coût de la main d’oeuvre INSEE N° 1567433, To be defined if the
team is located in Poland)Index
• All the shipments received in the TMS will be invoiced• EDI and interfaces development are not integrated in the budget• Night work or activity during bank holidays or week end is not included• Shippeo apps and DC brain are not included in the budget
Asumptions
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POUR TOUTE DEMANDE D’INFORMATION
ID LOGISTICS410, Route du Moulin de Losque - CS 70132
84 304 Cavaillon Cedex - FRANCE
Tél : +33 (0).4.32.529.600
Email : [email protected]
www.id-logistics.com
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