VSD Logistics Noric [Skrivebeskyttet]

VSD Logistics- Nordic
VSD Nordic + Baltics
Ø VSD wants to become the Preferred 4th Party Logistics Provider
in the Nordic market for FMCG, with focus on the Beverages
segment
Ø VSD will be known for it’s Excellent Customer Service, Service
Flexibility, Speed Of Reaction and Competitive Pricing in the
Nordic Market place
Ø VSD shall have Leading edge competence, flexibility in it’s
Warehouse & Transportation infrastructure, efficient
Organisational design and a Information & Application platform
to enable business with Pan Nordic active companies as well
as Local Country active companies
Ø VSD will join forces & create Partner alliances with preferred
business partners where a win-win situation can be proven to
ensure competitive edge
VSD 2006 - Commercial areas
VSD Logistics
Commercial / concept area
Wine&Spirit
Retail
Duty-Free
Nordic
Nordic
Nordic
VSD operations:
Purchasing, stock control, transport, customer service, ICT/EDI, distribution,
information/Reporting, 3PL development
Nordic Organization – New form 2005
Nordisk organisering VSD Logistics (Draft nr. 1, 25.01.2005)
Managing Director
Nordic
Business Sols.
Operations
Commercial
Acc. & Fin.
Nordic
Nordic
Nordic
Nordic
SSC Norway
IKT Nordic operations.
IKT Norwegian system
development.
SSC = Shared Service Centre
SCM = Supply Chain Management
CSM ? Customer Service Managemetn
SSC Sweden
Nordic project
management.
System developmentl
Nordic SCM
SSC Nordic
3PL contracts and
operations
SSC Kontroll
SSC Bus. Dev.
SSC Market
KAM
Importers
Monopoly.
Wholesalers.
On-trade
SSC Norway
Nordic Accounting.
SSC Sweden
Nordic Invoicing
Services.
Nordic Controlling.
The Logistics ”HUB”
VSD Logistics role in the supply chain is to be
the “hub” in the system, co-ordinating all
activities between the trading parties.
Suppliers
4PL – administrative logistics:
Transporters
Ø Supply chain set-up - framework
Ø 3PL set-up
Ø Inbound transport Management
Warehouses
Ø Warehouse set-up
VSD
Importers
Ø Distribution management
Ø Payment
Ø VSD Information network HUB
Transporters
Information flow
Invoicing/payment info.
Customers
Invoicing
services
Physical flow
The VSD Concept
W&S
Retail
Duty Free
VSD’s Assigner
Cash Flow
Extranet
Cash Flow
Information Management
JDA/E3
Producer
& Supplier
Clockwork
Inbound
Management
Forecasting
Stock Planning
Purchasing
Transport Mgmt
Inbound admin
Customs & Excise
EDI
Warehouse &
Transportation
Management
Goods Receipt
Storage
Package Rework
Pick & Pack
Delivery to customer
Core competence VSD
Movex
Customer Support
Management
End
Customer
Customer Order
Customer Complaints & Returns
Product info support
Transport planning
Billing & Factoring services
Governmental Tax reporting
3PL Core Competence
Integrity
Integrity is one of VSDs strongest competitive advantage. VSD will be
dependent on serving multiple importers / trading partners where objectivity
and integrity are the basic.
Set-up:
Ø VSD do not own products – VSD is a leading service company of supply chain
Ø Standard contracts with importers, no special agreements
Ø Same price list for all importers
Ø Totally Activity Based Costing on logistics and administrative services
Ø Short term contracts
Ø Own transaction- and information platform, separate set-up for VSD –
outsourced internationally to IBM and WM Data
Ø Cash flow direct from importer to supplier, and direct from customer to
importer
Ø VSD Logistics Nordic set-up in own holding company
One company
One market
One solution
VSD Logistics NO
VSD Logistics SE
VSD Logistics FI
VSD Logistics DK
Amundsen (V&S)
Best Buys Int.
Bibendum NO AS
Brand Partners/Pernod Ricard
Bravino
Ca de Vin
Ca De Lisse
Diageo AS
Berentsen
Gaia Wines & Spirits
Helge Wiig
Moestue Grape Sel.
Moët Hennessy AS
Nordic Beverage Co.
Podium Wines
Record WInes
Scanvin
Servco
Strøm
Terroir
Trans Nordic Selections
United Wineries
Vin & Vilt
Vinarius
Vinetum
Vinmonopolet(Pricelists)
Westerheim
WineBrothers
Winetailor
Berntson AB/Bacardi
Martini
Bibendum Oy
Bornicon &
Unilever Bestfoods AS
Gallaher Norge AS
Retail / FMCG
DutyFree /
Travel Value
Interbev as
Diageo DutyFree
(Color Line)
Bibendum SE AB
Moestue Grape Sel.
Nordic Bev. Co.
Moët Hennessy
Soumi Oy
Premium Wines AB
Phlipson&Söderberg
2006:
Nordic Bev. Co. AB
Wennerco
Moët Hennessy AB
Altia 1888
Diageo AB
SkyCellar
Salming DK A/S
Nordic Bev. Co. A/S
Moët Hennessy A/S
Bibendum DK A/S
G:a Slottskällan
Bryggeri
(Ancrona ab)
(Hansen & CO AS)
VSD Baltics
One Logistics Solution to The Nordic & Baltic Market
Wine & Spirits
Customers NORDIC & BALTIC market 2006
Fact and figrues – VSD Logistics Nordic
Warehouse and distribution:
• 45 000 purchase orders annually inbound
• 950 suppliers / manufacturers world wide
• 85 000 customer orders annually outbound
• 220 000 pallets outbound / year (915 pallets outbound per working day)
• 1 650 deliveries per week in the Nordics - 3 000 delivery addresses Nordic
• 4 warehouses with full Nordic coordination – total 70 000 sq.m:
• 40 000 sq.m. at Ulven in Oslo, Norway
• 4 000 sq.m. in central Åbo/Turku, Finland – 15 000 sq.m. Voutila/Vantaa from Aug.05
• 3 500 sq.m. in Ishøj (35 km outside Copenhagen) Denmark
• 24 000 sq.m. in Örebro, Sweden (Regional Distribution Centre – RDC)
Facts & figures VSD Nordic
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Employees
11
13
17
23
30
39
42
35
52
Importers
7
13
13
15
20
25
27
29
35
43
350
700
1 350
1 800
3 050
4 500
4 700
3 600
4 890
5 400
500 000
1 000 000
1 250 000
9 000
1 650 000
105 000
3 900 000
210 000
4 100 000
320 000
1 720 000
4 500 000
450 000
2 500 000
4 700 000
1 050 000
450 000
6 800 000
1 300 000
45 000
8 500 000
1 100 000
1 500
500 000
1 000 000
1 259 000
1 755 000
4 110 000
6 140 000
7 450 000
6 200 000
8 145 000
9 601 500
71 250 000
150 000 000
187 500 000
237 500 000
476 875 000
559 125 000
595 625 000
550 000 000
720 000 000
835 330 500
SKU's
Cases wine&spirit
Cases retail
Cases duty-free
= Cases
Gross revenue (EURO)
One Logistics Solution to The Nordic Market
58
Integrated transaction system
Importø
Import
ør (vareeier
vareeier))
• Kopi av faktura
• Betaling direkte
inn fra DnB
Factoring
Kontoregulering
DnB Factoring
• Mottak av
fakturafil
• Splitt av beløp
Betaling
VSD ordresystem
• Kundeservice (telefon og fax)
• Elektronisk ordre (EDIfact),
ordrebekreftelse og
pakkseddel
(Vinmonopol/Joh./Hakon)
• Elektronisk fakturasplitt til
EDI DnB
EDIfact
Telefax
Kunde
• Kundeordre (EDI og fax)
• Mottak av varer og
faktura
• Elektronisk pakkseddel
EDI
•Plukklister
•Bekreftelse
plukkliste
•Fakturapåsett
•EDIfraktseddel og
frakt-booking
EDIfact
• EDI: fraktbooking og
transportplanlegging
• Avvikshåndtering
Factoring prosesses
Products and invoices
VSD Logistics
Invoice info
Debtor
Debtor- and
invoice info
Statements,
web reports
Importers, producers
Payments
Statements,
web reports
Collection,
ledger
Payments
DnB NOR
Finans
Off-Trade Distribution – Norway (Vinmonopolet)
Door-door distribution
210 stores
Total leadtime:
•
•
•
•
48-60 hours - North
24-30 hours - Middle/South
8-10 hours - Oslo
EDI orders
2200 km
VSD Logistics
Wholesaler distribution
ICA Meny Nord, Tromsø
ASKO Nord, Tromsø
Mack Ølbryggeri, Tromsø
Coop, Tromsø
• Available on all 45
wholesalers
• Best on-trade
distribution possible
• International crossdocking shipments
• Direct shipments
Asbjørn Pedersen Engros, Harstad
Paul Nygård AS/Service grossistene
ICA Meny Nord, Bodø
ASKO Kjeldsberg, Bodø
ICA Meny Nord, Tr.heim
ASKO Kjeldsberg, Tr.heim
Coop, Tr.heim
Vectura, Tr.heim
Dankert Krohn, Molde
Asko Oppland, Leira
Asko Brumunddal
ICA Meny Mjøsa, Hamar
Coop. Hamar
ASKO Giørtz, Eidsnes
P. Juls Sandvig, Ålesund
Coop, Ålesund
Årheim Agenturer,
Sogndal
Asko Hannevik, Bergen
ICA Meny, Bergen
ICA Distribusjon, Bergen
Vinhuset Engros, Bergen
Kristoffer Kårbø, Bergen
Coop, Bergen
Middelthon, Stavanger
Fred Hansen & Kaada, Forus
ICA Meny, Stavanger
Coop, Stavanger
Asko Agder, Lillesand|
ICA Meny Sør, Kristiansand
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Wine/Spirits
Dry Food
Fresh Food
Asko Dramen
Aass Bryggerier, Drammen
Asko Torgersen, Skien
Trio Bryggeri, Skien
KI GA Engros (Arve Rustad)
Asko Torgersen, Skjetten
Vectura, Oslo
Joh.System, Oslo
Spiritus Oslo
ICA Distribusjon Øst , Oslo
Narvesen Engros, Oslo
Sverre Bergstrøm, Fredrikstad
ICA Meny Borg, Sarpsborg
K.Ekrheim, Oslo
Coop, Oslo
Cross-docking: order flow
Order qty is checked
against stock. If OK
the order goes straight
to picking
VSD Logistics
Warehouse
Local stored products is
picked at the Wholesalers
warehouse
VSD handled products in
Central Warehous, EDI
order from wholesaler sendt
to VSD
Wholesaler
When order is ready for collection
A packing slip is sent (EDI) this is
The base for invoicing the customer.
In case of soldout, the order is held, and
customer care calls and offers a substitute
before the order is effectuated.
Order confirmation
Sent by datafax to
end customer when
order is ready for
picking
Customer
Complete order including
all product groups.
Sent via web, EDI or fax to
end customer.
VSDs Nordic Distribution coverage
•
45 Wholesalers depots availability (all available)
•
Reitan Narvesen, Coop, ICA Ahold/Hakon, NorgesGruppen, Servicegrossistene, Ekerholt
•
Norwegian Vinmonopoly (190 shops 85% of W&S sales) as Government controlled Market
•
Best On Trade distribution through wholesalers and breweries - competition in all cities and nation wide
•
•
ICA Meny, NorgesGruppen, Vectura, Aass Bryggeri, Mack Bryggeri, Vinhuset Engros, Middelthon Engros, P. Juls Sandvig, Asbjørn
Pedersen
70 Wholesalers depots availability (=all available)
•
ICA Ahold, Dagab, Coop, Axfood Snabbgross, Servicegrossisterna
•
Swedish Systembolaget (430 shops 88% of W&S sales) as Government controlled Market
•
On Trade distribution through wholesalers and breweries
•
Servera, ICA Meny/Arvid Nordquist/Restaurangpartner, Servicegrossisterna, Axfood Snabbgross, Martin Olsson, ++
•
700 Restaurants direct, own distribution network based on independent transporters/ ”åkeri”
•
49 Wholesalers depots availability (=all available)
•
Finnish Alko (315 shops 80% of W&S sales) as Government controlled Market
•
On Trade distribution through wholesalers
•
•
17 Wholesalers / Retailers of total 50 served today
•
•
Ruokakesko/Toimitustukku, Ravintolatukku/L-Juoma, Heinon Tukku, Inex Partners, KJS Viinitori, Lounais-Juoma, Meira Nova
S/Engros, Metro, FDB, Dagrofa, DFV, DS, Netto, Fakta
On-trade: direct distribution / specialists – nation wide coverage|
Strategic Platform VSD Nordic & Baltic
Pan Nordic!
VSD Denmark
contracted WHS and
DIST. Aug-03
IT/IS project started
Jan-03, implemented
May-03
VSD Finland
contracted WHS and
DIST. Sept.-03
New WHS
Örebro
Sweden Sept 04
New distribution
(SB/Wholesales)
Sweden Sept -05
New WHS
and DIST.
Finland Jan.06
Live Baltics
with WHS and
DIST.
Spring’06
Organisational Design to ensure strategic fit
Ensure we get the Customer base we need
Ensure we get the right Warehouse & Transportation structure
Ensure same Information Platform
Ensure excellence of existing Customers & Service Demand
2003
2004
2005
One Logistics Solution to The Nordic Market
Nov. 2005
2006
Nordic & Baltic Rim development
Phase 1 Autumn 2004:
Swedish national warehouse in Örebro: live
16 Sept. 2004
Renew contract DHL Ulven (Oslo) to end
2008
Consolidated inbound transport Norway,
Sweden, Denmark, Finland
Consolidated transport agreements on PanNordic level
Phase 2 Spring 2006:
Pan-Nordic delivery structure from Regional
Distribution Centre (RDC) in Örebro to:
retail category (24 to 48 hrs leadtime)
duty-free operators (12 to 48 hrs
leadtime)
RDC support local warehouses in Oslo,
Helsinki/Voutila, Copenhagen/Ishøj & Riga
(for the Baltic countries)
Monopoly and on-trade from local
warehouses
Phase 3 (2006~2008?):
RDC to all customer segments
dependent on future development on
monopoly situation, or
ExW delivery terms to Monopolies
MARKET PENETRATION VSD LOGISTICS & POTENTIAL BALTICS
2005:
VSD Logistics 68 ML
2006:
VSD Logistics >80 ML
Imported 2006: VSD Nordics
Potential VSD
Local bottling (potential)
4,6 M
people
9M
people
5,2 M
people
51 ML
15 ML
30 ML
Norway 37%
Market share W&S
Finland 25%
market share W&S
Helsinki
Oslo
(short term potential 40%)
Stockholm
35 ML
Copenhagen
1,7 ML
Denmark
(short term potential 5%)
Tallinn
0,7 ML
2,8 ML
Sweden 22%
Market share W&S
(short term potential 25-30%)
(short term potential 35%)
Riga
5,5 ML
4,5 ML
Nordic development and market share– Logistics
9000
8000
7000
’000 cases
6000
5000
4000
3000
2000
1000
0
1998
2000
Nordic W & S
2002
2004
Nordic retail
2005
2006
Nordic Duty-Free
40,0 %
35,0 %
30,0 %
25,0 %
Denmark
Finland
Sweden
Norway
20,0 %
15,0 %
10,0 %
5,0 %
0,0 %
Market share Nordic 2006
Maxi FMCG warehouse – VSD wine&spirit Örebro
Nordic Supply Chain Organization
Brand Owner
Consolidated Purchase forecasts
Consolidated Purchase orders
One contact for order confirmation
One contact for shipping information/confirmation
Common & coordinated logistics projects (Packing & labbeling)
Importer
Customers
One contact handling all customer
inquiries
One point checking and
controlling EDI orders, order
confirmation, despatch,
invoicing
Logistics Coordinator
Norway
One contact reporting logistics key
figures
Nordic SCM
Logistics Coordinator
Denmark
(Monthly measuring stock level, turnover,
service level and forecast deviation.
Analysing deviations in lead-time and service
level from the brand owner.)
Logistics Coordinator
Sweden
Logistics Coordinator
Finland
Transfers – Supply Chain Management
• Overstock transfer between
the countries
• Nordic Item number and
overview on stock, reports,
purchase forecasts
• Consolidated for all Nordic
countries
• Duty-free / travel retail on
handling’
• own market channel and
supplied from one central
warehouse in the Nordics
One Logistics Solution to The Nordic Market
Evaluations of advantages, I
Main goal in the long run is to reduce logistics
costs while improving service
§
Reducing No. of total SKUs
–
rational reduction of each subsidiaries portfolio
–
identify the same products in all countries to work with these on a Nordic level – not unique product
per country
– Inbound transport cost:
– full loads and more rational handling for both brand owner, transport company and
warehouse
– Warehouse costs:
– reduction of multiple SKUs, locations, higher volumes total per unique product
– Administration cost:
– reduction of administrative workload for both brand owner and VSD, reduced no. of
shipments per year
– Service level:
– if country warehouses: flexible in the use of inbound shipments/re-route to other countries,
share stock between the countries
– if one Nordic Central Distribution Centre (CDC): use the same products for all markets
Evaluations of advantages, II
§
Central Distribution Centre (CDC)
–
Inbound transport cost:
– one delivery address for Sweden, Denmark and Norway, and one common warehouse for
Finland, Latvia and Estonia
–
Pick&pack cost:
– same workload, but economy of scale based on large volumes on the total portfolio
–
Storage cost:
– reduced cost per distributed unit based on higher turnover and economy of scale in a central
warehouse operations
–
Administration cost:
– reduced from multiple warehouse operations to maximum of two for the Nordic region
–
Service level:
– increased based on one central warehouse covering the Nordic region, more frequent deliveries
from brand owners based on higher volume through warehouse
Evaluations of advantages, III
§
Nordic supply chain management
–
Brand owners:
– reduced no of transactions (Purchase orders, order confirmations, shipments/export papers),
consolidated volume and production forecasts, one contact person for all Nordic supply chain
(VSD Nordic), VSD reporting Key Performance Indicators (KPI) regularly per month
–
Subsidiaries/importers:
– benefit of Nordic consolidation of supply chain management, the reduced no of transactions will
reduce the administrative work, no need for logistics management in the subsidiaries, VSD
reporting Key Performance Indicators (KPI) regularly per month
Evaluations of advantages, IV
§
Development
–
Focus on sales development
– knowledge and resources to work on development of the total supply chain
– system and volume to protect Brand Owner’s interest when the Monopoly market open up for
sales to retail shops/supermarkets
–
Display packing/value added services
– one central warehouse to do large scale of display pallets, deve lop sales packaging
–
Pan Nordic product introduction
– testing and introducing new products in the market will be coordinated with market activities, less
sensitive to pipeline filling as volume in the CDC cover more than one market
Key Performance Indicators (KPI)
Picking quality – monthly reported KPI
VSD
100,0 %
99,9 %
99,8 %
99,7 %
99,6 %
99,5 %
99,4 %
99,3 %
99,2 %
99,1 %
99,0 %
JAN
FEB
MAR
APR
MAI
JUN
Wine & Spirit segment – all customer segments
JUL
AUG
SEP
OKT
NOV
Delivery quality – monthly reported KPI
Monopoly store delivery quality
100,0
95,0
Sør
90,0
Øst
Nord
85,0
Vest
80,0
75,0
Apr
Mai
30 minutes delivery window
• 315 stores in Finland
• 210 stores in Norway
• 410 stores in Sweden
Jun
Jul
Aug
Sep
Månad
Månad
ok
t.0
3
jul.
03
jan
.03
ap
r.0
3
Demand - Utveckling 2001 - 2003
ok
t.0
2
Månad
jul.
02
80,0 %
jan
.02
ap
r.0
2
85,0 %
ok
t.0
1
90,0 %
jan
.01
ap
r.0
1
jul
.01
ok
t.0
1
jan
.02
ap
r.0
2
jul
.02
ok
t.0
2
jan
.03
ap
r.0
3
jul
.03
ok
t.0
3
95,0 %
Turnover
Servicegrad - Utveckling 2001-2003
jul
.01
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
Antall Salgsenheter
jan
.0
m 1
ar
.
m 01
ai.
01
jul
.
se 01
p.0
no 1
v.0
jan 1
.0
m 2
ar.
m 02
ai.
02
jul
.
se 02
p.0
no 2
v.0
jan 2
.0
m 3
ar
.
m 03
ai.
03
jul
.
se 03
p.0
no 3
v.0
3
Uppnåelse %
100,0 %
jan
.01
ap
r.0
1
jan
.01
ap
r.0
1
jul
.0
1
ok
t.0
1
jan
.02
ap
r.0
2
jul
.0
2
ok
t.0
2
jan
.03
ap
r.0
3
jul
.0
3
ok
t.0
3
Antall salgsenheter
KPI – stock management
Turnover - Utveckling 2001-2003
40,0
35,0
30,0
25,0
20,0
15,0
10,0
5,0
0,0
Månad
ABS Deviation - Utveckling 2001-2003
2 500 000
2 000 000
1 500 000
1 000 000
500 000
-
VSD NORDIC+BALTICS SUMMARY
Consolidated Pan Nordic inbound Transport procurement gives lower Cost Of Goods Sold (COGS) for
VSDs customers.
Consolidated Pan Nordic Purchasing towards producers and Pan Nordic Warehouse structure gives
lower Interest Of Capital (IOC), improved cash flow and lover operational costs for VSDs customers.
Consolidation of common Rework such as display pallets etc will give opportunities of COGS & IOC
reductions as well as flexibility to meet fluctuations in consumer demand for VSDs customers and their
portfolio.
If common SKU’s cross country our customers will also benefit from Increased flexibility to meet
unexpected Consumer Demand as well as benefit from reduced COGS & IOC during full Product Life
Cycle Management.
The solution shall create a Base of strength to meet and exceed future Pan Nordic and Local Customer
needs and demands
We need to be ready when the monopoly market opens up so VSDs customers can position themselves
towards the new market place with retailers or special shops.
VSDs core activity is supply chain management. Competence through the physical flow and
administrative handling from manufacture to monopoly shops and retailers/wholesalers. The importer
could maximize focus and development of market and sales activities – core knowledge.
Heavy investments in IT and IS technology to meet the demands from customers and in order to handle
the future logistics with lower costs and higher quality.
VSD administrate vendor management – warehouse and transport agreements and quality/service
output. Includes negotiations, benchmark, KPI reporting and measurement, activity based costing (ABC
costing), communication and follow-up – give more reliable and lower service costs.
Summary
VSD Logistics role versus the traditional 3PL supplier is:
VSD Logistics:
n
manages the inventory levels to ensure adherence to agreed
service levels
n
negotiates logistics contracts with different 3PL suppliers,
using large consolidated volumes and long experience in
outsourcing to drive down costs
n
n
n
Warehouse operator
n
builds relationships and procedures with each participant in
the supply chain from supplier to customer to ensure a smooth
flow of products and information with zero errors.
manages customer orders and is responsible for achieving
agreed service levels
aim is to use a holistic approach to supply chain management
where the goal is to achieve the lowest possible logistics cost
per product while still achieving agreed service levels. This
includes (but is not limited to) a continuos assessment of:
–
stock holding costs vs. transport costs
–
stockholding costs vs. service levels
–
total logistics costs per product vs. revenue per
product.
manages the physical operations of the warehouse
–
receipt
–
putaway
–
storage
–
picking
–
dispatch
n
is measured on the quality of these operations, e.g. picking
errors, dispatch on time etc.
n
is not responsible for out of stock situations, as VSD is
planning and managing stock availability.
Transporter
n
manages the physical transport operation by VSD’s
instructions.
n
is measured on the quality of these operations e.g. delivery on
time, damages, price per product, etc.
n
is not responsible for out of stock situations, as VSD is
planning and managing stock availability.
Kontaktinfo
n Ved spørsmål eller ønske om kontakt, ta kontakt med
n Lorna Dyrseth
n Mail: lorna.dyrseth@vsd.no
Mobil : 922-22122