CEVA Logistics Making Business Flow Presentation for MDBC Jacques - - PowerPoint PPT Presentation

CEVA Logistics – Making Business Flow

Presentation for MDBC Jacques Hartman Director Contract Logistics, Malaysia & Singapore

November 14th, 2014 Kuala Lumpur, Malaysia

CEVA – Making business flow

Through our integrated end-to-end logistics solutions, in-depth industry knowledge and relentless focus on Operational Excellence, CEVA brings lasting value to our customers’ global supply chain. We anticipate your needs and help you drive business growth. At every link in the supply chain, we help make business flow.

2

Our vision

Our vision is to be the most admired company in the supply chain industry

3

Our credo: “Impeccable Execution”

• We will be recognized by our customers as

delivering what we promise with consistent, predictable processes and service levels

• We will not tolerate mediocrity in touch points with
• We will not tolerate mediocrity in touch points with
• ur customers
• Impeccable Execution must become real at all

levels: Global, Regional, Country and Functions.

4

Increased complexity of the global supply chain

Early 2000s supply chain

• Component standardization allows production to

be spread globally to optimize costs

• Multi-country sourcing with consolidation hubs

before shipping to end customers

• Supply chain control and visibility are critical
• Compliance to regulations throughout the supply chain

Globalization driving increasing complexity

14 November 2014

Today’s supply chain

• 5

CEVA in a nutshell

Revenue: €7.2 billion Employees: over 49,000 Locations: over 1,000 Presence: in over 160 countries Combined storage space: more than 9 million sq m

Figures for Year Ended, 31 December 2012

6

Integrated and balanced regional structure

Americas

Revenue: 30% Europe and Rest of World Revenue: 41% Employees: 39%

Asia Pacific

Revenue: 30% Employees: 38% Revenue: 29% Employees: 23%

Figures as of 31 December 2012

7

Balanced sector portfolio

Automotive 28% Industrial 17% Other 5% Energy 7% Technology 20% Consumer and Retail 23% 8

Strong and diversified global customer base

9

CEVA in Asia Pacific

Overview

• $2.3 billion revenue in 2013
• +80 CEVA offices across 14 countries
• Close to 300 sites in the region
• Approx 10,000 employees and

Figures for period ending 31 December 2013

• Approx 10,000 employees and

11,000 JV employees

• Control Towers – Supply Chain Solutions

control towers in Singapore and Hong Kong

• Asia Pacific Center of Logistics Excellence in

Singapore

10

AP Footprint

India Logistics Freight 18 sites 93,900 sqm 1,382 staff 14 sites 5,288 sqm 356 staff Thailand Logistics Freight 36 sites 1,184,679 sqm 2 sites 500 sqm Korea Logistics Freight 6 sites 23,661 sqm 13 staff 3 sites 1,586 sqm 96 staff Japan Logistics Freight 5 sites 30,000 sqm 55 staff 2 sites 3,400 sqm 9 staff China, HK & Taiwan Logistics Freight 48 sites 1,228,639 sqm 10,847 staff 12 sites 1,265,161sqm 131 staff Vietnam Logistics Freight 1,184,679 sqm 2,815 staff 500 sqm 219 staff Malaysia Logistics Freight 10 sites 93,620 sqm 818 staff 4 sites 1,928 sqm 227 staff Singapore Logistics Freight 8 sites 131,320 sqm 656 staff 2 sites 7,900 sqm 188 staff Philippines Logistics Freight 10 sites 38,598 sqm 91 staff 8 sites 700 sqm 70 staff Indonesia Logistics Freight 28 sites 105,628 sqm 1,155 staff 5 sites 2,322 sqm 78 staff Logistics Freight 1 site 2,000 sqm 10 staff 2 sites 569 sqm 33 staff Australia & New Zealand Logistics Freight 62 sites 692,992 sqm 1,247 staff 11 sites 70,291 sqm 340 staff

11

SINGAPORE Malaysia Commencement Year 1973 1976 Employees 844 1,045

CEVA Singapore & Malaysia

Distribution Centers 10 DC’s, 139,220 sqm 14 DC’s, 95,548 sqm (MY) Air freight tonnage in 2013 33,709 tons 24,350 tons Ocean freight TEU in 2013 21,178 TEUs 12,784 TEU’s Service Awards ISO 9001:2000, AS9120A, TAPA, C-TPAT, Secure Trade Partnership, Global Kaizen Award 2011 & Regional Kaizen Award 2014, Regional ZDS Award

12

Singapore & Malaysia Customers

Technology

Automotive Consumer & Retail

Schaeffler

Energy Industrial

Schaeffler

13

Our integrated end-to-end service portfolio

Manufacturing support Inbound Logistics Warehousing & Distribution Centers Outbound Logistics Aftermarket Services Final Mile Solution

Receipt and Multi-modal Dedicated and Dedicated and/or Spare parts Home delivery for

• Receipt and

management of raw materials and products at source

• Control
• Re-packaging
• Value-added

services

• Multi-modal

capabilities

• Time definite

services

• Customs

brokerage

• Web enabled

tracking solutions

• Dedicated and

shared warehousing

• Distribution

network centers

• Value-added

services

• Dedicated and/or

shared transportation

• CEVA Ground

distribution services

• Transportation

network management

• Spare parts

warehousing

• Spare parts

distribution

• Returns
• Repairs
• Reverse logistics
• Call center

services

• Home delivery for

finished goods

• One and two

person home delivery

• After sales set up
• Installation
• Reverse logistics

Integrated supply chain management

14

Our Freight Management capabilities

Ocean Freight Air Freight

Value Added Multi-Modal Freight Management Value Added Multi-Modal Freight Management

Ground Customs

Freight Management Services Freight Management Services

15

Value Add Logistics Warehousing

Our Contract Logistics capabilities

Warehousing, Value Add, Warehousing, Value Add,

Distribution Reverse & Service Logistics

Warehousing, Value Add, Distribution & Reverse Logistics Warehousing, Value Add, Distribution & Reverse Logistics

16

CEVA Contract Logistics – Full Range of Services

MANUFACTURING DISTRIBUTION CENTRE CUSTOMERS SUPPLIERS

INFORMATION and CASH FLOW

17

Outbound Logistics Distribution Centre Logistics Inbound Logistics Transportation Management Reverse Logistics

CEVA Contract Logistics – Full Range of Services

Outbound Logistics Distribution Centre Logistics Inbound Logistics Transportation Management Reverse Logistics

Inbound Logistics

18

• Inbound Haulage
• Customs Brokerage
• Vendor Managed Inventory

(VMI)

• Quality Inspection Programs
• Sequencing / Line Feeding
• Procurement (Supplier and

P.O. Management)

• Forecasting
• Communication of

schedules

• Compliance and exception

management

• Milestone updates

CEVA Contract Logistics – Full Range of Services

Outbound Logistics Distribution Centre Logistics Inbound Logistics

Distribution Center Logistics

Various warehouse environments Transportation Management Reverse Logistics

19

• Various warehouse environments
• Dedicated / Shared / Bonded
• Cross-docking, incl. consolidation and deconsolidation programs
• Inbound / storage / picking / outbound / documentation
• Forward Stock Locations
• Product Completion
• Customer Configuration
• (Sub)Assembly
• Value Added Logistics
• (Re)Packing
• (Re)Stacking
• Value Added Services
• Order management
• Inventory management
• Quality Inspections
• Localisation / Software Updates
• (Re)Labeling
• Kitting
• Customs Management
• Customer Service / Call Center

CEVA Contract Logistics – Full Range of Services

Outbound Logistics Distribution Centre Logistics Inbound Logistics Transportation Management Reverse Logistics

Outbound Logistics

20

• Transportation – Distribution
• Courier / Parcels
• Less than truck loads /

Groupage

• Semi-truck loads / Part loads
• Full loads
• Carrier Neutral Management
• Sourcing & Procurement
• Planning & Execution
• Performance Reporting
• Freight Audit & Payment
• Customs Management
• Returnable Packaging

Management

CEVA Contract Logistics – Full Range of Services

Outbound Logistics Distribution Centre Logistics Inbound Logistics Transportation Management Reverse Logistics

Reverse Logistics

21

• Call Center
• Product Failure Assessment
• Return Material Authorization

(RMA) Management

• Transportation
• Customs Management
• Asset recovery and

replacement parts fulfillment

• Repair Services
• Asset Disposal / Reselling
• Waste Management
• Customer Service

CEVA Contract Logistics – Full Range of Services

Outbound Logistics Distribution Centre Logistics Inbound Logistics Transportation Management Reverse Logistics

Transportation Management

22

• Up-stream and down-stream

transportation for high number of daily shipments /

• rders
• Multi-modal transportation
• Ocean, Air, Road, Rail
• Carrier Neutral Management
• Sourcing & Procurement
• Planning & Execution
• Performance Reporting
• Freight Audit & Payment
• Distribution network design

Industry sectors we serve

We have organized our business to address the specific needs of our focus sectors and to offer the most appropriate solutions and expertise.

Automotive Technology Consumer and Retail Industrial Energy

23

Standard Operating Procedures and Working Instruction

• Based on scope of work, customer requirements and service level

agreement, CEVA creates a solution design and process flows.

• All key processes, activities, tasks, responsibilities, communication matrix,

KPI’s, reports, etc. are defined in a Standard Operating Procedure (SOP).

• On shop floor level, all processes are detailed in individual activities and
• On shop floor level, all processes are detailed in individual activities and

tasks, which are documented using standard Working Instruction templates.

• This allows solid training,

standardisation of execution and contingency in providing back-up support.

24

Quality Management

• Our Freight Management and Contract Logistics
• perations worldwide are ISO 9001 certified
• On top, our Contract Logistics operations hold a

number of various certifications based on and compliant with customer and material requirements

FM ISO 9001 certification

Asia Pacific Europe Americas 41 54 89

ISO 9001:2008

Status as of May 2013

Winner of SAI Global Systems Excellence Awards 2011 for Quality Management - Large business, Australia

ISO 9001:2008

• Established by the International Organization for

Standardization (ISO), recognizes transparent, integrated and standardized quality management across all functions, including commercial,

• perations and finance
• CEVA sites in Austria, Czech Republic, Hungary,

Italy, Slovakia

ISO 14001:2004

• Standards for Environmental Management System
• CEVA sites in Belgium, Czech Republic, Hungary,

Italy, Netherlands, Poland, Slovakia, UK

25

Our LEAN Approach

• Structured continuous improvement program eliminating 8 types of waste (Over-production,

Transportation, Inventory, Waiting, Rework, Motion, Over-processing, Loss of Intellect)

• Introduced at CEVA in 2004 and being constantly improved since
• Empowering employees to actively engage in problem solving
• Robust training program at all levels; e.g. our supervisors are trained in Kaizen (the Japanese

term for changing for the better) and use this methodology to solve specific problems in their areas. Lower costs Higher quality Shorter lead time

• Eliminating waste

(over-processing, inventory, rework, waiting etc.)

• Effective scheduling

and tracking

• Streamlining processes
• Eliminating waste

(over-processing, inventory, rework, waiting etc.)

• Effective scheduling

and tracking

• Streamlining processes
• Standardize work
• Built in quality
• Quality focus

(performance management)

• Standardize work
• Built in quality
• Quality focus

(performance management)

• Reducing buffers
• Reducing batches
• Reducing cycle times
• Reducing buffers
• Reducing batches
• Reducing cycle times

The LEAN culture is fully embedded and delivering benefits across all CEVA sites around the world The LEAN culture is fully embedded and delivering benefits across all CEVA sites around the world

26

Excellence in Operations: Site Classification Assessment

• CEVA has one of the most robust site classification

systems in the logistics industry allowing us to consistently deliver Operational Excellence across the world

• With 22 measurable excellence standards, every

function within our facilities is evaluated - from Human Resources and Finance to Freight

Showcase

Operations Excellence progression

Human Resources and Finance to Freight Management and transport

• Applied for each of CEVA’s 1,000 sites worldwide
• Through these metrics we constantly monitor our

progress and strengthen our performance driven culture. 34 Showcase sites

• ver 480

Basic+ sites

Developing Basic Advanced

• Approx. 95% of operations in the

logistics industry fall under the Basic and Developing category

Where we are:

27

Showcase Site in Practice

28

Health, Safety and Environmental (HSE) Excellence: Never walk by a problem

• Ensuring a high level of safety management through

global health and safety policies and standards

• Empowering employees to accept ownership of critical

health and safety factors at all levels of the organization

• Monitoring and analyzing global HSE conditions
• Systematically measuring and continuously improving.

Benefits:

• Greater on-time service level
• Fewer claims and product loss
• Partnership with environmentally forward-

thinking supplier

• Increased employee engagement and

shareholder value

• Greater on-time service level
• Fewer claims and product loss
• Partnership with environmentally forward-

thinking supplier

• Increased employee engagement and

shareholder value

• Systematically measuring and continuously improving.

29

Security Management

• Making sure our customers’ goods and

properties are fully secured through deployment of Security Guards, Security Systems (CCTV/IDS/Access Control), Equipment, Policies and Procedures.

• Global security policy at CEVA with regional

Security related certifications, including:

• Authorized Economic Operator (AEO) – in the

Czech Republic, France, Germany, Hugary, Ireland, the Netherlands, Spain and UK

• Global security policy at CEVA with regional

and local ownership in place.

Ireland, the Netherlands, Spain and UK

• Transported Asset Protection Association

(TAPA):

• CEVA’s finished goods hub in Ayutthaya,

Thailand

• CEVA multi user site near Charles de

Gaulle airport, France

• TAPA TSR 2008 – validation for CEVA Ground in

Mainland China

• TSA – Transportation Security Administration,

North America

• FAST – Fast And Secure Trade, North America
• STP – Secure Trade Partnership, Singapore
• Secure Warehouse Award - Shanghai Pudong

Airport (PVG) Cargo Zone, China, 2013

• 2012 Safety Award - BP Zhuhai Chemical Company

Limited, 2013

• China Warehousing Service and Management

Innovation Award - China Association of Warehousing and Storage, Shenzhen, 2011

30

Main reasons for Logistics Outsourcing

• Focus on Key Competencies (Product Development, Manufacturing, Marketing & Sales)
• Reduction of Logistics Costs
• Centralizing and Reducing Inventory
• Optimizing entire Supply Chain
• Making fixed costs variable
• Reduction of capital employed
• Superior Know-how LSP

31

• Superior Know-how LSP
• Reduced cycle times and lead times
• Improved KPI’s
• Improved Service Levels

Logistics cost reduction only has a short-term financial effect… …whereas superior logistics services offer a long-term strategic effect and strong impact

• n company performance and customer satisfaction!!!

Why CEVA?

• Increased speed to market
• Improved customer satisfaction
• Customer service enhancements
• Increased quality availability
• Operational efficiencies
• Process enhancement

Revenue Enhancement Operating Cost Reduction Profitability Enhancement

32

• Waste reduction
• Operational procurement savings
• Reduced Cash to Cash cycle time
• Inventory reductions
• Reduced cycle times
• Capital asset transfer
• Enhanced asset utilization
• Capital procurement savings

Fixed Capital Reduction Working Capital Reduction Invested Capital Reduction Shareholder Value Enhancement

Why CEVA?

Implement your business strategy on a global scale

• Global presence with local expertise
• Control and visibility of total supply chain
• Order and supplier management
• Full suite of services everywhere
• Stable and replicable operational processes
• Excellence culture
• Robust technology and infrastructure
• Easy to do business with

Keep your promises to your customers Support your commitment to sustainable development Reduce your total supply chain costs

• Easy to do business with
• Systematic elimination of waste (LEAN)
• Application of best practices
• Optimization of supply chains to reduce costs
• Lower inventories through better control and visibility
• Reduction of carbon footprint
• Compliance to regulations throughout the supply chain
• Safe and secure operations

33

Safety Induction

Before going into the warehouse, please take note of the below rules for your safety:

• Always wear safety shoes or tiptoes
• Always wear safety belt or vest
• Walk as much as possible in walkways
• Stay close to the group
• Watch out for Material Handling Equipment (MHE) and Trucks
• Watch out for Material Handling Equipment (MHE) and Trucks
• In case of an emergency, follow instructions of the Emergency Response Team
• Don’t use the elevators for an evacuation
• Proceed to the nearest Emergency Exit
• Walk back to the Assembly Area, at the front of the guard house

34

CDC Warehouse Layout – Johnson & Johnson

DG Room J&J Office RDC Storage FGX Storage FGL Storage Co-packing Waste Storage Inbound Sample Test J&J Destruction Room Outbound Co-packing Storage 35