“BE YOUR OWN CONSULTANT” SPEAK TO ALL PARTIES INVOLVED SOLUTIONS ARE IN FRONT OF YOU BUT YOU SHOULD BE WILLING TO SEE THEM Logistconsult s.r.o. CZ Pieter Vos Applicable solutions

From practice... Logistconsult s.r.o. CZ Pieter Vos A DC was very well equiped Good Racking, WMS, new electric pallet trucks, reach trucks, voice pick equipment, cleaning machines, everything to serve hundreds of customers daily………..but……….the recent investments didn’t bring the expected results. On the contrary, the service level went down, deliveries more and more to late, complaining customers and the cost went up…….instead of having the expected savings !

Whats next ? Logistconsult s.r.o. CZ Pieter Vos We followed in detail the process on the floor Compared with rules of WMS Checked functioning of WMS Listened to users and workers, not only the managers Collection of data Analyses of data Presentation to management

What we have found ? Logistconsult s.r.o. CZ Pieter Vos Many small mistakes and wrong procedures  together a big impact on total result Examples  Goods receipt -> blind checking  Let downs  Replenishment - Stock-outs  Removing foil  Fast – and slow move zones – 80/20 rule (Pareto)  Control process  Expedition & available transport

Split of DC’s in fast and slow Logistconsult s.r.o. CZ Pieter Vos Fast movers close to the market 80/20% Slow movers centralised 80/20% Shuttle between DC’s Supplier and retailer have benefit -> reduce time and km Improved loading degree X-dock DC’s (pharmacy?)

Backhaulage Logistconsult s.r.o. CZ Pieter Vos Business case Tesco-”distribute for less” in CR and SR Average loading degree of trucks 50% are empty km in Europe Transport is big part of operations cost Agree with your partners sharing truck capacity Role of 3PL Suppliers, retailers, white goods

What……if it fails? Logistconsult s.r.o. CZ Pieter Vos Ahold business case “3 for 2” Being in trouble by our own success Coffee (pendulum effect in supply chain) Reaction of supermarkets Wine Washing powder Peanut butter Serving the customer

What about….? Logistconsult s.r.o. CZ Pieter Vos KPI’s – sharing with others? EDI results in Central Europe ECR