normark logistics europe -...

NORMARK LOGISTICS EUROPE

(NORMARK SPORTS FINLAND)

Controller Meeting

September 23rd, 2015

Normark Sport Finland (NSF) Mission

NSF is a Rapala VMC Group internal service company committed to providing to its 13 European distribution unit customers the best logistics service (leadtime, information transparency, flexibility, logistics expertise) at the best cost.

9/28/2015 2Controller Meeting 2015 / Cyrille Viellard

NSF Organization

9/28/2015 3

Cyrille ViellardGroup Supply Chain &

Sourcing Director

Nina SerlachiusGroup Logistics Manager

Lukas KarlssonOperations Development

Engineer

Eneli SuvantoLogistics Coordinator

Simas VarnauskasLogistics Coordinator

Mindaugas LaucysLogistics Coordinator

• Shimano physical flow• NSF Freight cost controlling

• Shimano information flow• NSF Inventory Tracking

• Russia and Baltics flow management(all products except Shimano)

• Russia and Baltics flow management(all products except Shimano)

HELSINKI KAUNAS (Lithuania)

Controller Meeting 2015 / Cyrille Viellard

Shimano : Former order and shipping system

SCM

SIC

GLV

SUNRISE

PP

...

...

Shimano factories and

sub-contractors

Rapala distribution companies

Shimano Japan

Rapala VMC Group

Shimano

Orders

Shipments

RU

FR

LT

FI

SE

DK

NO

CZ

PL

RO

ES

HU

UA


Actual order and shipping systemOrders

Shipments

RU

FR

LT

FI

SE

DK

NO

CZ

PL

RO

ES

HU

UA

NSF

Rapala VMC Group

Shimano

Rods& Reels

Reels

Shimano factories and

sub-contractors

Rapala distribution companies

Shimano Japan (SIC)

Shimano Europe(SEFH)

New Rapala logistics company

1

1 If order volume sufficient for FCL direct or shipment meant for few distribution companies than no X-docking (LCL direct).

2 Order flow for reels changed against original process. Rapala to order through SEFH all products. SEFH coordination generating many disturbances.

2

SCM

SIC

GLV

SUNRISE

PP

...

...

314 TEUs : 181 X-docked + 133 direct

27 LCL shipments : 14 X-docked + 13 direct

Shimano bundling – Operations Overview

9/28/2015 6

• View by production month.

• Jan – April : High level of X-docked containers as shipment split provided by Normark not respected by Shimano.

• Dec - Feb : High number of direct TEUs related to the rod rebate deal and seasonal orders.

• Lower shipments since March. Increase of LCL Direct and X-Docked.

Shipments


• Mainly for France and Russia (65%).• Best solution considered each time.• DSV Vantaa serves as hub for LCL Eastern Europe.

9/28/2015 7

Direct Flows (06/14 to 05/15 Orders = 09/14 to 08/15 Production)

Unit Harbor Containers

RU Kotka, Helsinki (LCL) - Vantaa 19

FR Rotterdam 21

NO Oslo 8

PL Gdynia (Gdansk) 2

HU Rotterdam 2

SE Göteborg/Stockholm 4

FI Kotka/Helsinki 3

CZ Rotterdam 1

UA Helsinki (LCL) - Vantaa 1

ES Barcelona 1

Total 62

Shipments


9/28/2015 8

X-Docking Flows (Status 01/03/2015)

DSVVantaa

DSVMoerdijk

Shipments

X-docked volumes per country and forwarding freight costs

2014/11 to 2015/01(are excluded here volumes x-docked and picked up by

receiving unit – Baltics & Ukraine)

2014/11 2014/12 2015/01 TOTAL

Volume Cost Volume Cost Volume Cost Volume Cost EUR/m3

m 3EUR m 3

EUR m 3EUR m 3

EUR

Spain 56 2 591 31 1 839 58 3 036 145 7 466 51

France 47 1 316 47 1 026 16 523 110 2 865 26

Vantaa - Russia 27 2 842 31 2 078 40 2 723 97 7 644 78

Poland 2 180 47 1 429 37 1 121 85 2 730 32

Finland 18 1 949 45 2 909 21 2 115 85 6 972 82

Hungary 26 1 180 13 720 5 311 44 2 211 50

Denmark 3 278 1 196 27 1 122 32 1 596 50

Norway 31 2 406 31 2 406 77

Sweden 1 148 22 1 406 23 1 553 68

Romania 3 311 5 723 9 1 034 121

Czech 4 344 0 101 4 445 103

TOTAL 187 10 991 221 11 170 258 14 763 666 36 923 55


X-Dock Inbound Process (DSV Moerdijk since 01/03/2015)

9/28/2015 9

Shipments

unload

sort by SKU

unloadunload

sort by SKU sort by SKU control and put-away in virtualwarehouse location in DSV WMS


X-Dock Outbound Process (DSV Moerdijk since 01/03/2015)

9/28/2015 10

Shipments

edit picking slip from DSV system

split mastercartonand repack if necessary

shipping label delivery notepicking completed

Picker to go to picking location #48

Example : picking slip requests 2 master cartons (MB) of 30 pieces and splitting of a master carton by picking only 20 single items from SKU SH500FEGR.

pallet ready for shipmentX-docking completed


Next steps : Range Management

• Target : We need to work networked !

• Use the size of your neighbor to reduce group risk (there might be items you do

not have in your range but which are high runners in a neighboring distribution company.)

• Reduce group risk by analysing with scrutiny items which are exclusive to your markets.

• Target is not to impose top down a European range.

• PowerPro full range comparison

• Shimano reels and rods :

• comparison not yet implemented but 6 month purchasing forecast shared with all.

• Full range comparison will be launched

• Include other Shimano items : sunglasses, luggage, monofilament

• Push other sales coordinator to help the units in their range.

9/28/2015Presentation name / Author 11

Priority for now as we are gambling now for the coming season!

Next steps : Central Stock control for A items

• Precondition :

• Central consolidation of inventory and sales on a daily basis at item level. Use logisticar as umbrella system. Harmonise product master data to allow consolidation. Secure clean data uploads into Logisticar.

• Consolidated responsiblity for service level to end customers as well as consolidated stock coverage delegated to central planner for A items. Competence for procurement planner needs to be deveklopped for a central planner.

• Define A items :

• High value / low volume multiple customers

• Lower value / high volume


Items Storage Planning

A Central Central

B, C, D Local Local

NSF Overstock absorption due to severe market adjustments

• NSF as a European central logistics service unit is there to support the units in handling critical stock situations (shortage or overstock).

• In case of overstock, key factor is to inform as early as possible to allow NSF to re-allocate available quantities to other units. It is better to keep the stock upstream in one of NSF’s warehouses than push it down to a distribution unit.

• 1,490 M$ (FOB Value) goods retained since Jan 2015

Plano 3700 pcs

Reels 29000 pcs

Rods 30000 pcs

9/28/2015 13

Country Total absorbed by NSF (k$)

Russia 1200

Ukraine 290

Total 1490


NSF residual stock beyond 6 months planning horizon 08/2016 – reels and rods

Residual stock 08/2016

QTY 641 pieces

VALUE 29237,70 EUR


Vantaa Stock Analysis Rods QTY (pieces) Value (EUR)

in stock 22265 273 328,38

allocated DFL September 10465 118 552,74

Net after DFL 09/2015 11800 154 775,64

Allocated forecast Jan to June 2016 4332 52 272,29

Residual stock 08/2016 7468 102 503,35

Reels

Rods

After 18 months still some items remain as non-allocated.This indicates the importance of harmonizing the ranges.

Vantaa Stock Reduction

• Approx. 1M€ worth of goods constantly in Vantaa warehouse mainly due to following reasons:

• Old orders for some reason not shipped to distribution companies.

• Re-allocation of goods / goods stopped in NSF due to situation in specific countries.

• Uncontrolled inventory build up for some product categories.

• Other historical reasons difficult to trace.

There has not been enough focus on Vantaa warehouse in the past.

A clean up process has been started.


Vantaa Stock Reduction – Stock structure


• Some reductions and some increases. Overall situation has improved mainly due to reels and rods as highly common between units.

• Further efforts needed. Target is to clean the inventory with the coming season. Situation will never get better.

KIITOS!

normark logistics europe -...

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