1. EXEL becomes Ford's main logistics service provider
1) Opportunities and Challenges At the end of 1996, between its global production plants, Ford ambitiously introduced a completely new production system. With this, the new raw material logistics program, an integrated part of the entire production system, became an important part that had to be planned in detail and implemented rigorously. After three months of market research, at the beginning of 1998 Ford chose EXEL as its main logistics partner (LLP) in southern Europe, responsible for planning and coordinating all material movements between Ford's factories in the region, as well as being Ford's logistics information manager, and providing logistics support for the engine and locomotive production plants in Valencia and the transmission production plant in Bordeaux. An optimal logistics network was established for the movement of materials between the engine and locomotive production plants in Valencia and the transmission production plant in Bordeaux.
2) Specific solutions In order to realize the role of a logistics partner and to establish a new model of logistics operations, EXEL sent a highly qualified project team to work on the establishment of a logistics network and system between the various FORD plants. Members of the team are committed to the new logistics system with their high professional quality, enthusiasm and language **** communication skills. After communication and negotiation with the staff of each factory department and different factories, a supply chain management system that meets FORD's standards of high quality, high efficiency and low cost has been established. EXEL analyzes delivery data information twice a week to optimize and improve the current logistics network. A similar procedure is used to make daily pickup/delivery forms to test the three-dimensional utilization of the network and to further optimize the logistics network based on actual experience. In addition, the team members coordinate any discrepancies between actual operations and plans at any time to ensure that carriers and suppliers maintain orderly operations. In actual operation, picking up the physical goods at the warehouse according to the delivery list is an error-prone place. In order to solve this problem, EXEL has established a spare parts database, and the corresponding establishment of the assembly between the spare parts, integration guidance database. In this way, the actual operation according to the guidance of the database, not because of the omission of a part or wrong issue caused by delivery errors.
3) Summary After a year of cooperation, EXEL has made significant savings in logistics costs for FORD. By the end of 1999, all the suppliers in the south of Europe wanted to be included in the logistics network that EXEL had set up for FORD. EXEL meets weekly with the relevant FORD personnel and constantly evaluates the current logistics operating procedures. This practice has been very helpful in reducing logistics costs and increasing the transparency of this supply chain.
2. FORD and DAIMLERCHRYSLER*** share logistics service resources
1) Opportunities and Challenges Automobile manufacturers are under constant pressure to reduce costs, and the Customer Service Departments of both FORD and DaimlerChrysler have concluded that for the after-sales service, the distribution of parts and accessories to dealers, the two companies can*** use one logistics service provider. Use a logistics service provider. In this way, the duplication of delivery routes between the two companies can be avoided.
2) Specific solutions DaimlerChrysler negotiated with EXEL on the possibility of setting up a *** shared spare parts distribution system with FORD. EXEL brought together representatives of the two automakers to *** discuss their concerns. Such issues included: service levels, costs, available *** delivery routes, and choice of carriers. In January, 1998, EXEL began to construct a ****exclusive delivery service system for eleven FORD and DaimlerChrysler dealers in northern Michigan. The region of northern Michigan was chosen because of the large number of agents in the area who had a need for delivery. As a result, the original situation of not being able to fully utilize the vehicle space due to each individual delivery was changed, and the combination of the delivery routes of the two companies resulted in a much higher utilization of vehicle space.FORD and DaimlerChrysler agreed that the goods of the two companies would be transported in DaimlerChrysler's vehicles, with EXEL being responsible for the specific operations. In addition to the normal logistical operations, there were questions about who would be responsible for loading the trucks and other such issues. To solve these problems, EXEL plays an ambassadorial role, coordinating spare parts distribution center personnel, agents, dispatchers and drivers to make the entire operation flow smoothly.
3) Summary The FORD and DaimlerChrysler*** enjoy a successful logistics system. After the success of the first phase of cooperation, FORD, DaimlerChrysler and EXEL began to discuss further cooperation, the second phase of the plan to integrate 50 to 100 agents of the delivery logistics system. FORD under more than 5,000 agents, DaimlerChrysler under about 4,500 agents. It is estimated that about 10% of the agents can benefit from the logistics *** enjoyment system. Some agents have benefited greatly from the *** enjoyment of the logistics system. This can be seen in one agent's report, who used to receive two shipments a day, from FORD and DaimlerChrysler, and when the shipment arrived and needed to be unloaded, the staff had to leave the customers they were entertaining to unload the shipment, which was often very upsetting to the customers. Otherwise, temporary unloaders would have to be hired twice a day to unload the goods. Such an unloading procedure would be sufficient once a day, and FORD and DaimlerChrysler's could be delivered in a single trip. The performance of multiple producers*** enjoying warehouses can be represented in Figure 6-1. The horizontal coordinate is time, the vertical coordinate is the amount of product inventory, and the curves a, b, c, d, and e represent the change in inventory for different producers A, B, C, D, and E in the case of self-owned warehouses, respectively. From the variation of the curves in the figure, it can be seen that the utilization of the producers' self-owned warehouses varies a lot. When the stock of goods is small, a large amount of spare inventory is wasted; when the stock of goods is large, the problem of insufficient stock in existing warehouses is faced. The best way to solve this problem is for different producers to *** enjoy the warehouse. From the curve a, b, c, d, e can be seen in the figure, different producers of product inventory peaks and valleys are overlapping each other, so *** enjoy the warehouse can provide warehouse utilization, thereby reducing the cost of storage of products from different producers. The horizontal line of the capacity of the ****Hanging Warehouse in the figure is calculated by the third-party logistics company based on the cycles of the product storage characteristics of different producers. Figure 6-1 Performance of multiple producers' ***shared warehouses
4) Information on further cooperation FORD and DaimlerChrysler believe that the practices of the ***shared logistics system can be further utilized. Since FORD and DaimlerChrysler have many ****same suppliers of raw materials, they can use ****shared practices in the supply of raw materials.
3. EXEL establishes a product integration and distribution center for HOFFMANN-LA ROCHE
1) Opportunities and Challenges Hoffmann-la Roche is a Swiss multinational pharmaceutical company whose diagnostics division produces automated diagnostic instruments for diseases, and the diagnostic instruments work with a variety of test strips and reagents. After the sale of the diagnostic devices, Hoffmann-la Roche needs to deliver the test strips and reagents to the users at regular intervals. Delivery of the test strips and reagents is very complex and Hoffmann-la Roche has nine warehouses in Europe, one in each country. Inventory was difficult to manage, with some warehouses full and others out of stock. As a result, supply chain costs were too high and managers were at their wits' end.
2) Specific solution EXEL set up an integrated European Distribution Center (EDC) in Strasbourg for Hoffmann-la Roche, replacing the warehouses that were previously spread out across the region, and centralizing the management of deliveries of test strips and reagents. This allows Hoffmann-la Roche to focus on its core business of research and development. The operations of the European Distribution Center in Strasbourg are supported by a warehouse management information system, customized by EXEL for Hoffmann-la Roche. The warehouse at the European Distribution Center is divided into different temperature-controlled zones to ensure that certain reagents are stored at specific temperatures. Most of the reagents are produced in Europe, while others are manufactured in the U.S.A. and the Far East, and the European Distribution Center is located in Strasbourg, on the Swiss border. This puts the distribution center close to the main production sites of the products and makes it easier to centralize the products. 3) Summary EXEL provided Hoffmann-la Roche with operational management of the distribution of the goods and was not responsible for specific deliveries. The result was a 25% reduction in logistics costs, a 50% reduction in inventory and an improvement in operability of more than 99%. ADDITIONAL INFORMATION EXEL selects a carrier in each region of Europe to serve its customers directly in that region. Different delivery times are determined by the distance from Strasbourg to the customer.
4. EXEL supports HOOVER's home delivery business
1) Opportunities and Challenges Hoover is part of the CANDY Group and has manufacturing plants in Merthyr Tydfil, Wales; Cambuslang, Scotland; and Bromborough, England, where it produces carpets, freezers and dishwashers respectively. Certain products also need to be imported from factories in Europe, and Hoover needs to get these products to retailers or direct customers across the UK quickly and economically. Each year, more than 800,000 deliveries are made, of which more than 46,000 are made directly to customers' homes and require old machines to be unloaded and new ones installed.
2) Specific solutions Since 1984, EXEL has been constantly improving its service levels to meet the changing needs of its customers, providing customized IT systems and detailed operational procedures to address rising sales and diverse orders. The relationship between the two companies was strengthened by EXEL's dedicated and efficient service to Hoover, which ultimately enabled the two companies to work closely together to solve problems. Operationally, EXEL set up two new distribution centers for Hoover in order to take advantage of EXEL's logistics network in the UK. On the basis of continuous enhancements to its order management and scheduling systems to improve customer service and vehicle utilization, EXEL has developed a customer version of its Transaction Information System (TIS). Delivery orders are received throughout the day and then categorized by zip code, arrival date and specific destination. Prior to the requested arrival date, orders are entered into Paragon (a software program that routes and schedules orders for delivery). Afterwards, the relevant loading list and delivery list are produced according to the plan. EXEL has set up a customer call center, which operates 24 hours a day and is always available to answer customer inquiries regarding arrival times and a wide range of other inquiries, and provides traders with the opportunity to track the fulfillment of customer orders throughout the logistics network. Traders can access EXEL's order management system via the Internet to inquire about the status of order fulfillment.
3) Summary EXEL utilizes an advanced information management system to provide Hoover and its customers with a responsive delivery solution. With the support of the information system and the logistics network, a large number and variety of orders can be resolved in the shortest possible time. Most importantly, the establishment of a customer call center to confirm deliveries with customers has greatly improved the accuracy and timeliness of home delivery operations
5. EXEL and NISSAN - Total Product Control
1) Opportunities and Challenges Nissan Sunderland is one of Europe's most prolific car manufacturers. Nissan Sunderland is one of the most prolific car producers in Europe, producing not only the Micra and Primera, but also the Almera. As many spare parts have to be imported from Japan, the containers have to be unpacked in the factory when they are received in sea containers from Japan. The increased production of the new car, the Almera, meant that new premises had to be added to handle the increased arrivals and the complexity of the different parts for the three models. EXEL customized a solution for NISSAN to meet the production schedule.
2) Specific Solutions Located 1.5 kilometers away from the NISSAN plant, EXEL built a 160,000 square foot warehouse to serve as a site for unpacking, unloading and storage. In a relatively typical week, the EXEL team unloaded more than 80 containers, supplied 3,000 different production lines, and made more than 250 just-in-time deliveries to in-line receiving points near the plant. Interfacing state-of-the-art warehouse management technology and design interfaces with NISSAN's mainframe computer, EXEL's real-time system utilizes Radio Data Terminals in all workflows - ensuring high visibility of inventory and timely delivery of specific information related to receiving and loading. The order is processed quickly and flexibly. Orders are processed quickly and flexibly, with electronic interfaces allowing orders to be loaded and shipped within 3 hours, and the production line to receive goods within 1 ~ 4. Some urgent orders can be shipped within 10 minutes after notification is received. Depending on the production line it is applied to, spare parts have different stacking, arrangement and areas in the warehouse. In order to minimize shipping errors, barcode management is implemented for all spare parts.
3) Summary In the face of changing customer needs, EXEL's flexible just-in-time solution ensures a high level of customer service, while contributing to increased productivity and cost savings at NISSAN's Sunderland plant.
6. EXEL and Owens Corning
1) Opportunities and Challenges In 1998, Owens Corning, one of the world's largest manufacturers of building materials and composites, invited EXEL to manage its shipments. asked EXEL to manage its goods distribution center and daily shipments.Owens Corning planned to centralize the storage of insulation materials in one location - close to its Newark, Ohio insulation manufacturing plant. With EXEL's involvement, the original 400,000 sq. ft. distribution center was expanded to a 1,000,000+ sq. ft. distribution center, making it the only integrated insulation distribution center in the country. EXEL's successful construction of the insulation distribution center led to a growing partnership with Owens Corning, which in 1999 planned to change its warehouse operations at its Tenn plant in Jackson. The plant produces waterproof fiber materials for roofing and wall panels. As a result of superior service up front, EXEL was selected as Owens Corning's third-party logistics provider to manage a 200,000-square-foot warehouse adjacent to the plant. Crucially, Owens Corning asked the 3PL to take over all of its logistics services within 30 days.
2) Specific Solutions Faced with this challenge, EXEL immediately embarked on the first step of its logistics planning - export project management. EXEL became involved in the entire process before the signing of the purchase and sale contract, controlling shipment and arrival times, as well as guiding maximum marginal costs, return on investment, and expected revenues. For warehouse management, EXEL focuses on every aspect of warehouse operations, including security and human resources. First of all, EXEL worked with information systems managers*** on the original inventory management information system. Thanks to EXEL's experience with the SAP ERP system, Owens Corning's professional operators quickly mastered the specifics of the operation. Getting the right staff for the warehouse was another challenge for EXEL. It was difficult to recruit suitable staff in Jackson. As a result, EXEL increased wages to attract talent. In addition, EXEL worked with the Human Resources Manager*** to develop the job duties of various jobs and to make the division of duties and treatment of various jobs as reasonable as possible. Thereafter, EXEL began formal vocational training for its employees. Owens Corning did not notify its customers of the change in third-party logistics providers because it had confidence in EXEL's services. On the first day of the business handover, more than 40 trucks handled were loaded and shipped without any problems. Following the successful handover, EXEL developed a series of key metrics for the Tenn plant, developing a "first-in, first-out" warehouse location tracking system for warehouse throughput and inventory accuracy. Within three months, the warehouse's throughput increased by 30% without adding staff. EXEL's introduction of the shipment tracking system has allowed the Tenn plant to utilize reusable plastic packaging for outgoing shipments, saving on packaging costs and improving the efficiency of shipments. Owens Corning and EXEL are also continually working to improve their relationship. During the first year of the partnership with EXEL, Owens Corning changed its fixed-cost accounting with the third-party logistics provider to a logistics cost-plus-margin algorithm. The two companies adopted a unified logistics costing mechanism and set incentives and penalties based on good and bad service standards, which is very conducive to the reduction of logistics costs and the improvement of service levels.
3) Summary EXEL's partnership with Owens Corning has enabled:
(1) Increased warehouse throughput from 855,000 pounds per day to 1,116,000 pounds per day.
(2) Improved inventory accuracy from 90% to 98.5%.
(3) Improved customer satisfaction from 2 ~ 3 complaints per week to less than 1 per month, or even no complaints.
(4) Improved staff competence, stability, and efficiency, with a 30% increase in warehouse throughput and only a 20% increase in staff. As a result, operating expenses per pound of goods were reduced by 8.8%.
(5) Increased safety productivity by enforcing all safety regulations and weekly safety meetings.
7. EXEL and P&G
1) Opportunities and Challenges The Commercial Products Group (CPG), a division of P&G, achieves product distribution in the northeastern U.S. through its Kentucky Regional Distribution Center (RDC) in Florence. With many delivery delays and broken shipments in its previous operations, it was faced with the problem of speeding up delivery times and improving the quality of customer service.
2) Specific Solutions In response to P&G's current warehouse management and transportation strategy, EXEL conducted a specific analysis and proposed a new integrated warehouse and transportation management solution in order to reduce delivery times and improve customer service levels. EXEL and P&G designed the use of EXEL's Pennsylvania warehouse as a cross-docking warehouse for P&G products to reduce unnecessary handling of products, improve transportation management and maximize the use of existing resources. Products are shipped directly from the Kentucky Regional Distribution Center (RDC) to the Pennsylvania cross warehouse. From the Pennsylvania cross-docking warehouse, shipments are consolidated with other product manufacturers for delivery to similar destinations in the northeastern United States. This process not only reduces the number of times a shipment has to be handled, but also ensures that the shipment is handled by experienced warehouse operators at every step of the process. Additionally, shipments are delivered directly to the customer, shortening transit time and reducing transportation costs by ****sharing transportation resources with other manufacturers who have delivery needs in the area. Without fast, efficient data messaging at P&G, the Kentucky Regional Distribution Center (RDC), and the Pennsylvania Crossing warehouse, this solution would be building towers on sand.
3) The Kentucky Regional Distribution Center (RDC) receives customer orders from P&G via EDI. Each day, orders that need to be shipped from the Pennsylvania cross-dock are summarized into a report, and a shipping operator analyzes that shipment summary so that the operator can carpool similar delivery routes for shipments from different manufacturers before the shipment order is transmitted to the Pennsylvania cross-dock. On a daily basis, delivery/delivery specific information is transmitted via EDI back to P&G for tracking and analysis of deliveries, and P&G evaluates each carrier via a carrier report card submitted by EXEL.
4) Summary P&G has benefited from EXEL's extensive experience in consolidation (LTL) EXEL is responsible for all of P&G's deliveries in the northeastern U.S. P&G is also responsible for all of P&G's deliveries in the northeastern U.S. P&G has also benefited from EXEL's extensive experience with LTL. The use of cross-docking provides the following advantages in addition to lower transportation costs.
(1) Reduction in delivery time by an average of 1 day
(2) 10% increase in just-in-time deliveries
(3) 8% reduction in shipment breakage
(4) By combining advanced information technology with professional transportation and warehouse management, EXEL is able to achieve an integrated approach to warehouse and transportation management, which improves the overall efficiency of the supply chain and reduce costs.
8. EXEL and London's healthcare organizations By comparing the supply chain of hospitals with those of the retail and automotive industries, EXEL spent more than two years researching and analyzing. The results revealed that the hospital supply chain suffered from low service levels, poor facilities and equipment, and rudimentary IT systems. To address these issues, EXEL developed the concept of a "support center" and set up a new distribution center in London to act as a strong support link between healthcare organizations and manufacturers.
1) Opportunities and Challenges Supply chain management in hospitals is completely dependent on healthcare professionals, ordering and maintaining minimum inventory levels. Warehouses and receiving/shipping sites take up a lot of space, and receiving/shipping more than 50 times a day often causes serious disruptions. Lack of trained staff and poor warehouse management often resulted in duplicate orders, excess inventory, and out-of-date products. In addition, the coordination of the supply chain was problematic, with five separate teams responsible for receiving/shipping, and much of the medical staff's valuable time was wasted on receiving/shipping or warehouse management. Worst of all, the lack of an effective management information system made it difficult to control and forecast inventory levels. As a result, it is not possible to develop a long-term strategic procurement plan.
2) Specific Solution EXEL established a new channel for distributing goods by re-engineering (re-engineers) the supply chain of healthcare organizations and manufacturers. The support center set up an inventory management and tracking system that allows for a high degree of transparency of inventory in the warehouses of the hospitals within the healthcare organization. The use of bar codes ensures the accuracy of demand generation and tracking of goods from the support center to the hospital warehouse. Hospital departments create spreadsheet lists of medicines and medical equipment, and the organization's purchasing and product advisory group is responsible for product selection, vendor selection and price negotiation. In 1998, Central Middlesex Hospital (CMH) was the first to benefit from the new concept of "support center" when it entered into a seven-year supply chain management contract with EXEL. EXEL implemented a series of measures, including IT system setup, staff retraining, etc. As a result of the program, CMH was able to reduce costs and improve the efficiency and quality of its services. EXEL's hospital support team developed a methodology for ordering requirements based on inventory levels, including approximately 8,000 bar codes and more than 3,000 different products. After pooling orders from each hospital, the support center issues a purchase order to the manufacturer. Upon receipt, the goods are delivered to the hospitals based on each hospital's order. This approach not only reduces ordering costs and time, but also allows medical staff to focus primarily on the hospital's core business.
3) Conclusion The application of the "support center" concept has greatly improved the quality of supply chain management in healthcare organizations. Healthcare professionals spend less time on the supply chain and save on procurement, transportation, and storage costs. The application of the MIS has benefited the healthcare professionals in the hospitals in terms of product selection, usage forecasting, and purchasing contracts. Figure 6-2 illustrates the important and concise role of EXEL's "Support Center" as a link between the manufacturer and the hospitals in the medical institution. In the figure, a, b, c, d, e, and f represent manufacturers that supply products to hospitals in medical organizations, and A, B, C, D, E, and F represent hospitals in medical organizations. Figure 6-2(1) represents the product supply chain relationship between each producer and each hospital before EXEL establishes the support center; Figure 6-2(2) represents the product supply chain relationship between each producer and each hospital after EXEL intervenes and establishes the support center. Obviously, the support center established by EXEL simplifies the product supply chain relationship between each manufacturer and each hospital.
9. EXEL's support for the continued development of Argos' home delivery service
Support. 1) Opportunities and Challenges EXEL has been a strong supporter of Argos since 1990, when Argos started its direct sales service. The cooperation took a dramatic turn in the first decade. As Argos' business has flourished, EXEL has consistently demonstrated her strengths. This was mainly demonstrated in the following areas. Whereas in 1990 Argos produced six products, by 1999 it had grown to 1,000 products and required 23,000 home deliveries per week. Despite the rapid growth in demand for its services, EXEL has maintained a high level of customer satisfaction. In order to keep up with the growth of Argos' business, EXEL changed its management procedures accordingly and relocated its warehouse twice in 6 years. In spite of the continuous growth of business and two warehouse relocations in six years, the customer satisfaction rate has been maintained at over 97%. In addition to improving customer satisfaction, we are constantly looking for ways to reduce costs and improve efficiency.
2) Specific Solutions Working with Argos, EXEL's Supply Chain Design team worked closely with Argos' business operators throughout the project. 13 warehouses were built for Argos throughout the UK, each with 385,000 sq ft of storage space for 60,000 pallets. The warehouse is equipped with 60,000 pallets of internal storage space. As we enter the new millennium, 200 shipments a day will be dispatched from the warehouses for direct delivery to every customer in the country. This highly efficient, state-of-the-art home delivery service is due to:
(1) in-depth, ongoing training in operations and customer service;
(2) highly qualified, well-trained operators;
(3) advanced sales forecasting and analytical tools, which ensure that logistical resources are available to meet the needs of the business;
(4) EXEL's sophisticated management methods and extensive practical experience, which ensures that the company is able to meet the needs of its customers. methodology and extensive practical experience ensure high productivity in any large, complex operation. (3) Summary Since 1990, EXEL has demonstrated its capabilities in various areas. From an operation adapted to the continuous rise in product sales, to the management of an operation that manages home deliveries throughout the UK region, EXEL is committed to continually improving its operations. Finding ways to reduce the time it takes to load goods into warehouses and introducing a method of vehicle allocation planning that can reduce the amount of vehicles used by up to 20% compared to the norm, EXEL's services have enabled direct users of Argos to enjoy a service that compares favorably with that offered by other suppliers.