1. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 1 A New Logistics Organisation Electrabel Netmanagement Flanders Speaker – Louis Van Hoeymissen

2. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 2 A New Logistics Organisation 4x Initial Organisation

3. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 3 A New Logistics Organisation New Organisation

4. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 4 A New Logistics Organisation Strategic Sourcing –One purchasing department –Highly skilled purchaser staff –Reduction of total cost price by Service level agreements Supplier assessments Improved negotiation techniques Long term agreements Considering ‘total cost of ownership’ –Maximum harmonisation of materials

5. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 5 A New Logistics Organisation New Distribution Centre –Replacing four main warehouses –Main characteristics Size = 100 by 100 meters High stacking storage: 8000 pallet places Mezzanine with 7000 storage locations 50 % expansion capacity –Flow principle = reversed U

6. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 6 A New Logistics Organisation Kitting to pick-up points –Non-staffed pick-up points –Evenly distributed over the region –At short distance from workers domicile –Kitting by job/shift –Materials to be ordered before 4 p.m. (day before) –Materials available from 7.00 a.m.

7. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 7 A New Logistics Organisation Inventory Management –Maximum degree of service Parameters –Due time of delivery –Right quantity –On the correct place –Necessary documents are available –Without any damage –Minimum stock in warehouse

8. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 8 A New Logistics Organisation Inventory Strategic Sourcing Distributie- centre Kitting to pick- up points Cost savings Logistic cost Stock value Service level 4 strategic elements

9. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 9 A New Logistics Organisation

10. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 10 A New Logistics Organisation

11. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 11 A New Logistics Organisation

12. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 12 A New Logistics Organisation

13. Stefan Vancampenhout Belgium Session 6 – Block 2 Barcelona 12-15 May 2003 13 A New Logistics Organisation Conclusions: The 4 initial objectives were achieved The cost savings are considerable The project is very successful