peter rudzio, claas presentation at spare parts 2013
DESCRIPTION
"Spare parts service for harvest machines - High demands for a short season", Peter Rudzio, CLAAS Service and Parts GmbH presentation at Spare Parts Business Platform 2014. Fin out more http://www.sparepartseurope.com/TRANSCRIPT
1 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Spare parts service for harvest machines -
High demands for a short season
Spare parts business platform 2013 – Peter Rudzio – CLAAS Service and Parts GmbH
2 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Agenda
- Who we are
– CLAAS Group and CLAAS Service and Parts
- What do our customers need? – Aftersales requirements and customer expectations
- How do we cope with this? – Tailored logistics concepts and processes for seasonal demand patterns
3 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
CLAAS at a glance
2013 – 100st anniversary of CLAAS
1913 2013
4 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
CLAAS at a glance
The product range
Combines
Telehandlers
Forage harvesting machines
Software and Systems
Tractors
Service & Parts
Forage harvesters
Balers
5 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
in € million or as a % of sales
1,265
1,496
1,928
2,1752,351
3,236
2,901
2,475
3,3043,436
2,659
56
2336
86
131
176
248
112
77
255
316
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
SalesProfit before taxes
Continous growth over the last decade
CLAAS at a glance
6 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH6
0 1 2 3 4 5
After Sales Service at CLAASAfter Sales is the No. 1 purchase criterion when buying a harvesting machine
spare parts supply / service
operation / handling
technical specification
distance to next dealer
individual contact with the dealer
price
test reports
manufacturer / brand
recommendation / indiv. references
financial facilities(leasing, rate etc.)
Question: Which criteria are essential for you when buying a combine?
rating with points: 1 = unimportant, 5 = the most important
Ø amount of points
Source: DLG Praxis Monitor 08/11
7 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
13%59%
1%
20,4%
New machines
Workshop
Parts and accessories
Used machines
Profit split by business unit for an average well-managed agricultural dealer (Germany)
Nearly 60 % of operating income from after sales!
After Sales Service at CLAASParts business and service are essential for the profitability of dealers
8 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
After Sales Service at CLAASCLAAS Service and Parts GmbH (CSP) – a legal entity within the CLAAS group
Sales & Service Grain Harvest Forage Harvest Tractors
Sales Companies Product Companies
corporate functions
CLAAS KGaA mbH
� CLAAS Global Sales GmbH
� CLAAS Service and Parts GmbH
� CLAAS Vertriebsgesellschaft mbH
� CLAAS France S.A.S.
� CLAAS U.K. Ltd.
� CLAAS Italia S.p.A.
� CLAAS Ibérica S.A.
� CLAAS of America Inc.
� CLAAS Argentinia S.A.
� CLAAS Réseau Agricole S.A.S.
� CLAAS Vostok OOO
� CLAAS China
� CLAAS Selbstfahrende Erntemaschinen GmbH
� CLAAS Tractor S.A.S.
� CLAAS Saulgau GmbH
� Usines CLAAS France S.A.S.
� CLAAS Hungaria Kft.
� CLAAS Omaha Inc.
� CLAAS India Ltd.
� OOO CLAAS
� CLAAS Agrosystems Gmbh & Co. KGaA
9 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
CLAAS Service and Parts GmbHCovering all functions of After Sales on corporate level
Profile of CLAAS Service and Parts GmbH
Functional areas:
Locations:
Subsidiaries:
• Field Service
• Product Support Parts
• Product Support Service
• Warranty
• Technical documentation
• Sales / Marketing • Pricing / Purchasing
• Logistics / SCM • IT
• Controlling• Product Management
• Merchandising
• Harsewinkel (Service)• Hamm (Parts) • Le Mans/F (regional warehouse)
• CLAAS Ukraina, Kiew(Daughter company for the parts business in Ukraine)
• CS Parts Logistics GmbH(JV with STUTE-Verkehrs-GmbH, operating company of the warehouse in Hamm)
• QM
Our vision: Provide the best service for farm machinery worldwide.
10 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Agenda
- Who we are
– CLAAS Group and CLAAS Service and Parts
- What do our customers need? – Aftersales requirements and customer expectations
- How do we cope with this? – Tailored logistics concepts and processes for seasonal demand patterns
11 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Requirements of our customersHigh influence of seasonality
Summer:• short harvest period, • immediate availability of
parts required,• Prices less important
Winter:• focus on prices, • Lead time with lower priority,• Time for “active selling” of maintenance
and repair parts and labour
12 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Requirements of our customers..lead to several challenges for parts logistics
• Harvest machines work in sensitive logistics process chains
• High seasonality (~20 harvesting days p.a. for grain)
• Machines operate day and night, no weekend during harvest period
• High investment up to 500 T€, high cost in case of breakdowns
• Machines work far away from commercial / logistics hubs
• Wear and tear depends strongly on harvest conditions
(weather + soil condition!)
• Large and heavy parts
13 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Requirements of our customersSeasonality of demand: 50% of parts sales to end customers during harvest season!
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
40,00%
45,00%
50,00%
Jan to Mar Apr to Jun Jul to Sep Oct to Dec
14 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Agenda
- Who we are
– CLAAS Group and CLAAS Service and Parts
- What do our customers need? – Aftersales requirements and customer expectations
- How do we cope with this? – Tailored logistics concepts and processes for seasonal demand patterns
15 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASParts distribution with multi-level distribution network
Central Warehouse(CLAAS Service & Parts GmbH)
Regional Warehouses
(SC‘s / Importers)
Local Warehouses
(Same-day-Service)
Dealer
End customer
16 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASParts logistics network Europe
CLAAS of AmericaCLAAS China
Regional Warehouses
Own Parts Centres („Same-Day-Service“)
Central Warehouses
17 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASSegmentation of parts assortment for different distribution levels
Maintenance parts (e.g. filter),Wear and tear parts (e.g. knives)
Parts criticality, ease of transportation
Frequency (orders p.a.),
differentiated per machine type
Fast moving parts(Bearings, gears, belts,..)
Large parts, critical parts
(e.g. intake augers)
Medium moving parts
Sm
alle
r parts
(B
olts
,n
uts
, ..)
„build-to-order“Slow moving parts
Typical dealer stock
Regional warehouse
Central warehouse
0
1
3
10
100
>100
Product classification is defined for every new part and determines the inventory planning parameters on central and regional level
18 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASCentral and “emergency” regional warehouses combined to a flexible network
Regional Warehouses
CLAAS dealer
Central warehouse Hamm (D)
Direct shipment
+ lowest handling effort
+ no regional stock
- Higher transport cost
Delivery from regional
warehouse
+ overnight / same-day supply
+ low transport cost
- Stock in regional warehouse
- Additional handling
“Cross-Docking”
+ low transport cost
+ less handling
+ no regional stock
- medium lead time
Supply channel is selected according to required service and optimized cost
19 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASSeasonality requires the right setup for each season
Stocking-period Pre-season Harvest season Post-harvest
Production(Suppliers, own factories)
Central parts
warehouse
Hamm
Regional
warehouse
Dealers
End customers
StockingFast replenishment,
Urgent orders
Parts returns
Winter inspections Maintenance before harvest
Immediate repairs Post-harvest check
Seasonal supply chain for parts at CLAAS
20 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASSpecial terms and delivery conditions in order to balance seasonality
Delivery
time(from order entry to
shipment)
Discount
Same day
3-7 days
3-4 weeks
8-10 weeks
maximumminimum
Urgent orderBest possible service offer
for urgent demand
Weekly orderContinuous dealer
replenishment
Stock orderAttractive conditions for the
monthly replenishment
„Super stock“ orderStorage in winter; stocking of the dealers
with fast moving parts long time for season (time for payment 15.08.)
The required delivery time defines the source of parts (regional or central).
Delivery from central warehouse
Delivery from central or regional warehouse,
due to distance, cross docking
Delivery from regional
warehouse; from central
warehouse if not available in
regional warehouse
21 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASDifferent demand patterns for wear and tear and repair parts
Quantity delivered to dealers
Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep
Knife section - supplied from central warehouse
Knife section - supplied from regional warehouse
Quantity delivered to dealers
Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep
Bearing unit - supplied from central warehouse
Bearing unit - supplied from regional warehouse
Maintenance part (high consumption):Supplied in stock orders during winter season from central warehouse
Repair part (medium consumption):Lower stock orders, more urgent deliveries from regional warehouse during harvest
22 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH22
Parts logistics solutions at CLAASSeasonal stock orders help to level out volumes from central warehouse
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
Jan to Mar Apr to Jun Jul to Sep Oct to Dec
Dealer to end customer
Central warehouse to retail market / regional warehouse
Pull forward dealer demandsBy „super stock orders“,very attractive discounts
payment terms up to 8 months
Turnover dealer to end customer in comparison to turnover ex central warehouse
23 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAAS – central warehouseCLAAS PLC Hamm – operated by Joint Venture between CLAAS and STUTE (3PL)
• Flexible working hours • Saturday as regular working day• Regular operation on Sundays from April to October• 3 shift operation in summer and on demand• 24-h-standby service at 365 days/year• 30 minutes order processing time for highest priorities • Dedicated transport solutions to main markets
24 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAAS – regional warehouses and same-day centersFrance: Regional warehouse for fast supply; selected dealers with additional stock
C.R.A NOYAL S/VILAINE
Ets DEBOFFESALEUX
DOUSSET MATELIN
Neuville de Poitou
LOUIS & DAVIGNONBELLEVILLE SMEUSE
Midi Pyrénées MoissonSt Jory
Example France: ~250 critical part numbers at selected dealers during harvest season
FAVIER & FilsCHÂTEAU GAILLARD
25 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAAS – regional warehouses and same-day centers Germany: Same-day availability with regional competence centres
• Availability of about 90%, in particular critical and bulky parts
• maximum 2,5 hours distance for each dealer (>200) in Germany
• Qualified CLAAS employees close to the customer
• 24 h – service at 365 days per year
• Parts collection possible around-the-clock
• Late cut-off times, departure of in-night shipments at 10 p.m.
• PLUS - Express (order cut-off 8:30 a.m., delivery until 2 p.m.)
Example Germany: 7 regional warehouses for >200 dealers
26 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAAS – inventory planningSeasonality requires longer planning horizons
• Safety stock only relevant for harvest season
• Progress of season has to be taken into account for re-ordering
• Regional stocked slow-movers have to be re-distributed after harvest
• Demand of regional warehouses has to be considered in central warehouse – and pulled forward
Demand only during harvest
27 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH
Parts logistics solutions at CLAASOutlook – upcoming projects
Central Warehouse(CLAAS Service & Parts GmbH)
Regional Warehouses
(SC‘s / Importers)
Local Warehouses
(Same-day-Service)
Dealer
End customer
Retail inventory management:
Actively optimize dealer stocks
Increase availability at selected
competence centers
Expand worldwide network especially in growth regions
Increase capacity for further growth of parts business by major investments
Make them happy
with first CLAAS
service!
28 Spare parts logistics @ CLAAS - Peter Rudzio - CLAAS Service and Parts GmbH19 th January 2012 CLAAS Service and Parts GmbH – Suppliers‘ Day CLAAS Group 201228 28
Thank you for your attention