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MAERSK LOGISTICS :
Ohrid 2009 IX Congress
Ohrid May 22nd 2009
Presenter
Penelope Spyropoulou
Giorgio Poggio
Thessaloniki/Skopje/Durres
Managing director Balkan Cluster
Branch Manager
GRELOGTOP@MAERSK-
LOGISTICS.COM GREDAMSLKMNG@DAMCO.COM
Education Education
> Political Science degree > Technical Institution Computer
Science
> supply chain management
specialization > Customs Clearance specialization
2
Introduction
Maersk Logistics Balkan Cluster
Maersk Logistics Balkan Cluster was established in 2006 to
offer integrated transport solutions, SCM, WND, as well as freight
forwarding services including ocean freight, airfreight, and landside
services to the local market by utilizing the worldwide network and
expertise of Maersk Logistics
Today the Balkan Cluster organisation counts 40
professionals handling all Maersk Logistics & DAMCO operations in
Greece, Bulgaria, Makedona, Cyprus, Lebanon, Albania and Kosovo.
Cluster head office is based in Athens with branches in Varna,
Thessaloniki, Heraklion, Cyprus, Sofia and Beirut.
3
Geographical Scope of Balkan Cluster
HUNGARY
ROMANIA
CROATIA
Belgrade BLACK
BOSNIA SEA
SERBIA
BULGARIA
Countries/Areas Kosovo
MONTENEGRO ► Sofia
-Greece
-Cyprus Bar Tirana Skopje
-Albania MAKEDONIA
-MAKEDONIA Durres
ALBANIA TURKEY
-Bulgaria Thessaloniki
-Kosovo
GREECE Volos
-Lebanon
Ports
-Piraeus Piraeus
-Thessaloniki Rhodos
-Volos*
-Heraklion
-Limassol Heraklion CYPRUS
-Varna
-Durres CRETE
-Beirut
Limassol
4
Our Gate to the Balkans
BUDAPEST,
SLK
ROTTERDAM
RAILWAY
LINES
KOPER
West Bulgaria
locations -as shown on
the map- can be
served via Thess/niki
as a cheaper
alternative to Varna
port.
Damco Hellas provides
more than 5.000
moves through
BAR dedicated trucks and
block train to Sofia
yearly.
Damco Hellas provides
more than 10.000
customs transit
formalities to all
Balkans yearly.
5
Multi country consolidation: your gateway from/to China
Destination Honda Suppliers Far East
AIR: 2
Thessaloniki/ DAYS
Balkans
SEA: 25 DAYS
HUB Tanjung P.
END TO END VISIBILITY AT ITEM LEVEL
6
Multi country consolidation
our facilities in Tanjung Pelepas, MY
Warehouse area 11,000 square meters
Employees 45 FTE
Customs status Free Trade Zone / Bonded area
PENANG
Services: Consolidation, deconsolidation, bonded
operations, warehousing, distribution
Voumes 600,000 cbms (2006)
weekly service from/to America, Europa,
Far East, Indian Sub-continent,
Africa, Oceania. Air connection (KLIA)
SUBANG
Clients managed: JAYA
KLANG
JOHOR
7
Why we are here?
We believe we can use our experience
in operating integrated supply chains for global clients
to release value for your supply chains
8
How do we do this? / Agenda
> Consultancy: SupplyChain HealthCheck™
> Management and Control
> Information management
> Operational capabilities
> Case History
9
How do we do this: consultancy
SupplyChain HealthCheck™
Reaching your full potential
The SupplyChain HealthCheck™ is Maersk Logistics’
proven fact-based and practical approach to
supply chain analysis and development.
Design and Develop 10
How do we do this: consultancy
The SupplyChain HealthCheck™:
Data
Scoping Workshop “AS IS” Analysis Modelling “TO BE” Implement
Gathering
Our supply chain development approach involves:
> Understanding your business and Supply Chain
objectives
> Operational & Financial benchmarking
> Identification of root cause of performance gaps
> Modelling and design based on your business and
financial objectives
> Solution quantifying the value adding
> Delivering the quantified value through
implementation, execution and follow up
Compelling Value Proposition
Design and Develop 11
How did we do this? Some of our consultancy projects
Design and Develop 12
How do we do this? Management and control
> Maersk Logistics is one of the world’s
leading providers of supply chain
management services
> We manage operations, documentation
and information
> We take care of the supply chain from the
time of planning and procurement
through to the delivery of the products at
their final destination.
> The objective is to integrate and
coordinate all the actors of your supply
chain in order to support the control and
the correct execution of your
international supply chain.
Operate 13
How do we do this? Information Management
Value
SPECTIVE ™
Visibility scope
advanced • EDI connection / ASN
• On line vendor connectivity
• Associated documents visibility
• On line operations instructions
•Unified info platform • Landed Cost visibility
•On line real time • Manufacturing process visibility
SPECTIVE ™ •Distribution visibility
Core •Origin milestones
visibility
•Destination milestones
visibility
Carrier Track & •Item/SKU visibility
Trace •Associated documents
•Container tracking visibility
•Port A/Port B •Reporting
•Many sources
•KPI Monitoring
Value
Operate 14
How do we do this? Operational capabilities
+15,500 Maersk Logistics employees world-wide
+300 offices in +90 countries
Ocean carriage
> Ocean Forwarding volumes of +800,000 teus
> Contracts with over 20 different shipping companies
Warehouses
> +40 warehouses 1,200,000 m2
> 15 cross-dock/trans-load in US warehouses 290,000
m2
> +85 CFS warehouses 1.1 mill. m2
Airfreight Forwarding volumes of 125,000 tons.
Customs house brokerage and consultancy
Insurance
Operate 15
How did we do this? FRIGOGLASS case history …
The real challenge is identify real situation and how best to implement the theory to deliver true business benefit…
Client Challenges (SCM Maersk Logistics
Benefits Value
department quotations) Solutions
” Steep growth lead to Implement supply
exclusive focus on customer chain management
service levels ” solution Logistics cost reduction
(emergency shipments,
” Huge variation among > Purchase order demurrages)
processes and process management
ownership” Reduced safety stock Euro
>Vendor Management holding (increased 5.300.000
”Unable to trace shipped including 3PL’s and timeliness, reduced Nett /saving
products until invoices transporters variability) over 24
arrive...” months.
>Document Management Improved cash to cash
cycle (reduce lead time) Central control
”Major cost of inventory” >Spective™ visibility and mature
update including KPI MNG Increased commercial processes in
effectiveness through place.
BPR: Map business more On Time in Full
”No central visibility ” processes and draft a deliveries
”Local sub optimization versus common operating
global efficiency and procedure to streamline Cargo full traceability
effectiviness workflow among all the
parties
Design, Develop, Implementation 16
How did we do this? A case history in Electronics industry
The real challenge is identify real situation and how best to implement the theory to deliver true business benefit…
Current Situation
• Logistics cost >10% of consumer price. Products are stored
in multiple location over 13 countries, low visibility, complex
processes.
Maersk Logistics Solution
• Centralize SCM control within Greece HO and outsource
entire supply chain and logistics organization to 4PL and
respective 3PL’s and transporters.
• Standardize operation- and management processes
including external contracts
• Centralize EU warehouse for EU Import and Export (picture)
• KPI Management and visibility update
Risks / Obstacles
• Strong Internal change management required
Benefits
Total Nett Savings Euro
• Reduced transport, inventory, Warehouse and labor cost
5.300.000/ 24 months
• Increase response to market, top expertise, variable cost
Design, Develop and Implementation 17
Conclusion
> We identified Frigoglass as a potential benchmark for Balkan established companies
with international flow of goods to apply our Supply Chain Development study and
Supply Chain Management program capabilities:
> Identify complexity and define priority to quickly materialize ‘quick win’ scenarios
short implementation time
> Bench mark existing process issues in terms of supply chain performance
> Our Integrated Supply Chain Management solution can solve your issues in a
manageable
> What is a realistic timeline from development to implementation ?
Design, Develop and Implementation 18
Project Timeline
Implementation Action Start_Date Finish_Date Work Days Dependency
Phase 0 - Contracting and Implementation Planning 2nd Feb 3rd April 45
Implementation Kick Off 2-Feb 6-Feb 5 MOU or Contract Signing
Detailed Implementation Plan Mapping 9-Feb 13-Feb 5 Implementation Kick Off
Global SOP Mapping 9-Feb 6-Mar 20 Implementation Kick Off
Map 4PL Interface Parties (Plants, Sales Offices, Suppliers, 3PLs) 9-Mar 3-Apr 20 Global SOP Mapping
Alignment of SOP with KPI Agreement 9-Mar 13-Mar 5 Global SOP Mapping
4PL Announcement to Frigoglass and Suppliers 2-Mar 6-Mar 5 Map 4PL Interface Parties (Plants, Sales Offices, Suppliers, 3PLs)
Staff Maersk Logistics Implementation Team (All Locations) 2-Feb 27-Feb 20 MOU or Contract Signing
Phase 1 - Implementation (Baan IV) 9th Feb 25th Sept 165 Staff Maersk Logistics Implementation Team (All Locations)
PO Upload Mapping 9-Feb 13-Mar 25 Implementation Kick Off
Local Requirements Mapping 9-Mar 3-Apr 20 Global SOP Mapping
SOP Review with Local Plants and their RM Suppliers 9-Mar 3-Apr 20 Global SOP Mapping
SOP Review with Local Sales Offices and their FG Plants 9-Mar 3-Apr 20 Global SOP Mapping
Scoping and Design of Local Development Plans 6-Apr 1-May 20 Frigoglass and Maersk Logistics Local Requirements Mapping
3PL Engagement / Expectations Review / Lead-time Setting 6-Apr 17-Apr 10 Phase 1 SOP Reviews
Global SOP/KPI Realignment 6-Apr 24-Apr 15 Phase 1 SOP Reviews
Go Live - First Bookings 16-Mar 3-Apr 15 PO Upload Mapping
Operational Stabilization - Development Plan Execution 6-Apr 21-Aug 100 Go Live - First Bookings
Recalibration on Targets for Phase 1 24-Aug 28-Aug 5 Operational Stabilization - Development Plan Execution
Phase 2 - Implementation (ERP LN) 6th April 25th Sept 125 Phase 1 - PO Upload Mapping
Phase 3 - Implementation (Remaining ERP) 6th April 25th Sept 125 Phase 2 - PO Upload Mapping
Design, Develop and Implementation 19
Thank you for your time
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