Upload
khangminh22
View
12
Download
0
Embed Size (px)
Citation preview
Newsletter
Dear Readers,
The digital transformation of supply chain is often discussed as being
the result of changed manufacturing processes (in the Industrial Internet
sense). In my opinion, however, there is much more to it.
The digital supply chain consists of two core elements, the first of which
involves digital business processes, with the most obvious potential
being visible in online retail. The second is the physical supply chain,
which will still be around in the future but with even greater efficiency
owing to new information technology. The combination of these ele-
ments can bring forth new business models in any industry. This would
be e-commerce in the broadest sense.
In this newsletter, you can find out how our experts at 4flow develop
and implement agile digital supply chains. There is quite a lot that manu-
facturing can learn from retail: While conventional retail was first threat-
ened by disruptive business models, omni-channel concepts are now
becoming the new standard for all. By the way, this was also the exact
theme of our recent 4flow challenge – a new case study competition for
soon-to-be supply chain professionals.
Enjoy this latest newsletter issue and find out more about growth, acco-
lades and new opportunities.
Issue 2/2016
Page 1
Editorial
Page 2–7 Building an optimized
digital supply chain for e-commerce in 5 steps
Page 8–10
Manufacturers in China take action to adapt to the
new normal
Page 11 Lear honors 4flow as Supplier of the Year
Page 12
4flow continues record growth
Page 13
Shanghai office gains 30 years of logistics expertise
Page 14
Case study competition winners announced – 4flow
challenge
Page 15 4flow news
Page 16
In the spotlight
4flow newsletter, 2/ 2016 issue, page 2/16
Building an optimized digital supply chain for e-commerce in 5 steps A checklist for choosing the right logistics strategy
Digital transformation is not only changing consumer behavior, it is
changing expectations on products and services along with it. In order
to meet these expectations, businesses often need to augment conven-
tional business models with web-based sales channels such as direct de-
livery to consumers or click-and-collect where purchases are made
online and later picked up in-store. Taking this step can be an oppor-
tunity to improve on how you reach target groups; however, this is ac-
companied by a variety of challenges. On the one hand, companies that
want to enter the e-commerce market have to compete with so-called
pure play e-retailers (companies that depend on the internet as their
sole sales channel). On the other hand, many well-informed consumers
seek out the seller with the prices and distribution service that suits
them. As a result of new services like same-day delivery in two hours or
pick-up points, consumers’ expectations are becoming more and more
sophisticated. E-commerce is a highly competitive market where the
next competitor is just a click away. Conventional market mechanisms
and competitor situations are constantly being redefined by large
e-commerce businesses, largely regarded by traditional businesses as a
threat that must be reacted to quickly.
For companies seeking to enter this dynamic market and expand their
business model, it is essential to know the supply chain requirements of
this new distribution channel. Companies that decide to engage in
e-commerce need an integrated digital supply chain strategy to effi-
ciently meet expectations across channels. One particular challenge for
logistics is setting up an efficient and flexible omni-channel strategy that
uses the logistics synergy of conventional brick-and-mortar channels
with online channels, while at the same time ensuring that consumer
expectations are met.
4flow newsletter, 2/ 2016 issue, page 3/16
4flow has worked closely with numerous clients to develop and apply
these five steps to implement flexible distribution strategies for
e-commerce.
1. Analysis of market requirements in a competitive
environment
In order to develop a sustainable distribution strategy for e-commerce,
4flow consulting identifies future market requirements in e-commerce
and answers the following questions:
What customer segments and market segments can you gain
online?
How do customers behave and what do they expect now and in the
future?
Do shoppers have access to a partial assortment online, the entire
assortment or an even larger assortment online than in brick-and-
mortar stores?
How much potential for growth does e-commerce or an omni-
channel mix have?
A key aspect of surveying the market environment is analyzing possible
competitor strategies based on scenario modeling and viewing how
those strategies could impact your own organization and the position of
your own online business model.
After internal and external analysis, future scenarios are set including
service, shopping carts and baskets, product assortment and sales
volume for each market segment, customer segments and regions.
2. Determine service requirements in logistics for e-commerce
During this step the logistics service requirements for the digital supply
chain are determined. The product assortment plays a key role here
because it determines the quality requirements for each category
cluster along with seasonal peaks and product life cycles.
4flow newsletter, 2/ 2016 issue, page 4/16
It is also important to define the supply chain capacities required for
response times with respect to delivery time and order cut-off times.
They can be inferred by looking at the availability level and service times
desired, in combination with sales scenarios. Extra services such as gift
wrapping, personalized greeting cards or country-specific labels also
need to be taken into account since such requirements can otherwise
lead to bottlenecks in the supply chain.
3. Developing and evaluating strategy options for the digital
supply chain
Existing logistics networks usually don’t fulfill consumers’ e-commerce
expectations cost-efficiently. In order to find the right distribution
strategy, a variety of factors are analyzed such as weaknesses and
potential infrastructural bottlenecks, as well as creating greenfield
scenarios that are combined to develop brownfield scenarios.
Selecting strategy options – 4flow consulting project cases
The strategy options are then evaluated on a holistic, end-to-end level
so that questions like the right degree of centralization or automation
4flow newsletter, 2/ 2016 issue, page 5/16
(CFC or centralized hub fulfillment) or the degree of integration be-
tween offline and online sales channels can be looked at transparently.
With sensitivity analysis and what-if scenarios, 4flow consulting ensures
that only sustainable strategy options are examined in detail during the
next step. These tools test a distribution strategy’s robustness according
to the selected service and market scenarios and potential competition
scenarios.
4. Designing digital supply chains to be flexible and robust
What then follows is taking a deep dive into the selected strategy
options in respect to network structure and warehouse location.
Combined warehousing and picking for different distribution channels
calls for cross-functional and dynamic approaches to standardize
distribution centers and fulfillment centers along with their processes
and to ensure their design is service-oriented, flexible and lean. When
developing DC processes, both established and innovative automation
technologies need to be considered to fulfill scalable e-commerce
picking volumes in a cost-efficient way. In addition, automation
technologies factor in the increasingly sophisticated requirements
inherent to demographic change. Choosing the right degree of
automation requires a holistic and individualized approach that takes the
systems and economic conditions into account.
Selecting the strategy takes place on a dynamic basis according to the tipping point cost model among other things
4flow newsletter, 2/ 2016 issue, page 6/16
In addition to fine-tuning logistics structures, the processes and IT
systems connected to logistics also need to be precisely detailed. The
necessary IT infrastructure and the right organizational structure are
determined. Detailing the distribution processes in this phase is crucial
due to the fact that distribution costs make up a substantial share of total
costs in e-commerce. As opposed to brick and mortar retail, shipments
in e-commerce are split up as a result of direct delivery to consumers.
The number of delivery runs and stops increases, resulting in higher
costs. At the same time, offering preferred delivery time slots to
consumers is a key competitive factor.
In addition to quantitative and qualitative analysis, the risks that
accompany implementation also need to be taken into account in order
to select the optimal future supply chain configuration. 4flow consulting
makes its recommendations for the supply chain based on end-to-end
business cases.
5. Road map for agile implementation of digital supply chain in
e-commerce
When implementing a digital supply chain strategy, the necessary steps
in the areas of network structure, locations, processes, IT systems, and
organization are defined and scheduled for implementation.
Because of the long-term perspective, financial gates are introduced
over time that allow consumer, assortment and sales trends to be
examined, while their impact on the next implementation phase can be
determined. Depending on the results of the review meeting,
investments are made or replanned. This way the company always has
the assurance that the strategic direction can be adjusted over time.
The right logistics strategy for an e-commerce business model can only
be identified and implemented by taking an end-to-end approach that
accounts for diverse factors and risks. This enables companies to
integrate new distribution channels into existing network structures
quickly and with minimal risks.
4flow newsletter, 2/ 2016 issue, page 7/16
Digital supply chain road map
Thanks to a long-term feasibility comparison, companies profit from
well-informed decisions when choosing the right logistics strategy.
Strategically setting up and expanding network structures to implement
new distribution channels has resulted in a clear competitive advantage.
ANDREAS KICK executive vice president
at 4flow. [email protected]
4flow newsletter, 2/ 2016 issue, page 8/16
Manufacturers in China take action to adapt to the new normal Top businesses in China gather to discuss solutions to current logistics challenges
The need to seek opportunities for improvement is common in times of
slower growth for economies in all stages of development. China is now
in the situation where it no longer has the breathtakingly rapid double-
digit growth of recent decades. The manufacturing powerhouse is en-
tering a new dimension of growth – one that calls for a new focus. Chi-
na’s current economic situation, referred to as the new normal, repre-
sents a situation where organizational change is essential and presents
at the same time, an excellent opportunity for manufacturers to achieve
new levels of efficiency and productivity. But what is the “new normal”?
And how will it affect manufacturers in the future? These questions
were discussed at 4flow Logistics Day “Lean solutions for manufacturers
in China” recently held in Shanghai. Delegates from a variety of busi-
nesses and universities in China attended the event, including OEMs,
suppliers, and logistics service providers. Challenges, opportunities,
and solutions brought forth by the new normal were presented and dis-
cussed.
How businesses in China are responding to the new normal
Soeren Hagen, managing director at 4flow in Shanghai, presented “The
New Normal – The Impact of the Current Economic Situation in China
on the Logistics Industry”. He described the challenges under way
commenting, “China’s role as the factory of the world is slowly chang-
ing. 2013 was the first year in which services made up more than 50
percent of the economy. Stimulation of domestic consumption and the
service industry by the Chinese government is increasing.”
4flow newsletter, 2/ 2016 issue, page 9/16
Is the logistics industry in China prepared for the new
challenges?
According to Soeren Hagen, the logistics industry needs to invest a lot
to successfully overcome the new challenges. 4flow senior consultant,
Kenny Zhang also presented on how 4flow worked with one of the larg-
est manufacturers of home appliances in Europe and China to develop
an inbound strategy for its new appliance park. “We collaborated with
our client to implement seamless inbound logistics from end to end,
preparing them for future domestic growth, reflecting the shifting Chi-
nese market.”
Included among the guests were Wolfgang Strauss, Director V-
Class/Vito China at Fujian Benz Automotive and Joern Krueger, Head of
V-Class/Vito Project Management Office. Wolfgang Strauss presented
a major two-year project for the launch of the V-Class and Vito at Daim-
ler’s manufacturing plant in Fuzhou, China. As part of the Fujian Benz
product launch of the new V-Class, a multinational team collaborated to
achieve leading logistics processes. Logistics proved to be essential in
bringing multiple functions together, not only in China, but at Daimler
locations in Europe as well.
4flow newsletter, 2/ 2016 issue, page 10/16
“We received help from 4flow to optimize reporting structures, to create
processes, among other things. It was a hugely successful project and
we are still using those templates and those processes today,” Joern
Krueger of Fujian Benz explained.
Moderating the panel discussion was 4flow COO Kai Althoff who em-
phasized how essential it is for organizations in China to prepare for the
future of logistics and manufacturing. “Logistics brings all of the func-
tions together to set up an overarching concept to control costs and en-
sure high levels of efficiency,” he said.
Manufacturers in China are tasked with adapting to this new normal in
order to stay competitive not only in China, but on a global scale as well.
The next 4flow Logistics Day in Shanghai will take place this year on
November 17, 2016. If you are interested in participating, please con-
tact us at [email protected].
For more information about overcoming supply chain challenges in Chi-
na, please contact Soeren Hagen at [email protected] or Kenny
Zhang at [email protected].
4flow newsletter, 2/ 2016 issue, page 11/16
Lear names 4flow a Supplier of the Year Automotive supplier Lear honors 4flow for outstanding service
Lear Corporation, a leading supplier of premium automotive
seating and electrical distribution systems, has named 4flow a 2015
Supplier of the Year. Lear and 4flow have collaborated since 2005 to
design and successfully implement centralized integrated transportation
management at all of Lear’s plants in all of its divisions in Europe and Af-
rica.
"The award-winning suppliers performed at superior levels and have
outstanding track records in working together with us," said Matt Si-
moncini, Lear's President and Chief Executive Officer. "Our global sup-
plier partners are critical to our success in providing the best possible
cost, quality and value to our customers," he added. “We are proud to
have received this award from Lear – a valued customer with whom
we’ve had a long-standing and close partnership,” Andreas Kick, execu-
tive vice president at 4flow, stated, to which Julian Schulcz, also execu-
tive vice president at 4flow added, “This award shows how important
our ideas, performance, and software solutions for integrated transpor-
tation management are in helping our customers prepare for the future
and remain competitive in a globalized market environment.”
Erich Schwarz, Global Vice President Purchasing at Lear Corporation, Andreas Kick and Julian Schulcz, both Executive Vice Presidents at 4flow, and Todd Glance, Vice President Global Supply Chain at Lear Corporation (from left)
4flow newsletter, 2/ 2016 issue, page 12/16
4flow continues record growth
Supply chain service provider sustains excellent market momentum
4flow had a profitable growth of 17 percent for 2015. After establishing
a US subsidiary in Metro Detroit in 2014, 4flow opened offices in Brazil
and Hungary, created about 70 new jobs, and increased its team to
more than 350 employees globally. Since its founding in 2000, 4flow
has enjoyed steady organic growth year after year. In each of three
business areas – 4flow consulting, 4flow management and 4flow soft-
ware – double-digit percentage growth was achieved. “With more and
more organizations realizing the need for digital supply chain transfor-
mation, demand for our products and services is growing tremendous-
ly,” 4flow CEO Dr. Stefan Wolff said.
In 2015, 4flow grew once again in every market around the world. Di-
verse global teams at 12 different 4flow locations on 4 continents assist
customers to optimize their supply chains around the world. These
proven services are now also provided at the new offices in Budapest,
Hungary and Campinas, Brazil. “As a reliable partner for our global cus-
tomers, we continuously support them in making sustainable improve-
ments to their supply chains wherever needed,” Wolff said about
4flow’s strategic international growth. One example of 4flow’s world-
wide growth in 2015 was in Shanghai, China where the company grew
at an above-average rate.
Another key aspect of 4flow’s record result is its focus on long-term col-
laboration with large clients and long-lasting strategic partnerships.
First-time projects with new customers also made up a substantial share
of the growth. In addition to adding new automotive suppliers to its cli-
ent base, 4flow acquired new business from the consumer packaged
goods, grocery, retail, and rail industries.
4flow newsletter, 2/ 2016 issue, page 13/16
Shanghai office gains 30 years of logistics expertise
Supply chain experts George Zhao and Kelvin Zhu join 4flow in China
George Zhao has joined the 4flow team in Shanghai as vice president.
Prior to joining 4flow, George held a leadership role at Accenture in
China where he was responsible for optimizing entire supply chains,
transportation, networks, costs and inventory. He possesses more than
20 years of experience in logistics and more than 15 years of experience
as a consultant along with extensive intercultural competence. During
his career working for international consulting firms such as Kurt Salo-
mon and Schneider Enterprise Consultancy, he has worked with global
clients from industries including logistics, retail, manufacturing and con-
sumer goods. He has been with 4flow consulting in Shanghai since June
2016 as vice president. “We are really fortunate to have George Zhao to
enhance our team in China on this level. Our growing client base in
China will profit from his expertise,” 4flow COO Kai Althoff said.
Another new addition to the 4flow team in Shanghai is Kelvin Zhu who
has joined the company’s 4PL business as senior logistics manager.
With more than 10 years of experience in logistics, automotive manu-
facturing and sales, Kelvin Zhu will make a significant contribution to
setting up 4flow management in Shanghai. “We have been growing by
more than 50 percent on average in China for years. It is crucial for us to
have George Zhao and Kelvin Zhu, two accomplished and experienced
supply chain management experts driving our success and growth in
the Chinese market,” Soeren Hagen, Managing Director at 4flow in
Shanghai said.
Rising demand and growth in the Chinese market created the need for
the new positions at 4flow. Since establishing the office in China in
2011, 4flow has expanded its customer base enabling continuous ex-
pansion at the Shanghai office.
4flow newsletter, 2/ 2016 issue, page 14/16
Case study competition winners announced
Supply chain students present strategic e-commerce concepts at 4flow challenge
Twenty students from six universities traveled to Berlin, Germany for
the 4flow challenge case study competition and spent 48 hours in the
role of supply chain consultants. Earlier this year, 4flow had invited mas-
ter’s students to develop a strategic e-commerce supply chain concept
for a mock retail company seeking to enter the e-commerce market.
Many international teams submitted concepts with six teams making it
to the final round. Working on a challenging case and presenting their
solutions to a panel of judges, the students had to show they have what
it takes for consulting. The solution presented by the first place team
from TUHH Technical University of Hamburg in Germany convinced the
panel of judges with its consistent end-to-end planning, earning the
team 4,000 euros.
“Developing and challenging bright minds is very important to us at
4flow. It was a true delight to see these future supply chain profession-
als solve the 4flow challenge case with their new ideas and enthusiasm.”
4flow CEO Dr. Stefan Wolff said.
Students and their 4flow mentors at the 4flow challenge case study competition
4flow newsletter, 2/ 2016 issue, page 15/16
4flow news 4flow Logistics Day – Reshaping supply chains in the digital age
What does digital transformation mean for supply chain and what chal-
lenges and opportunities come along with it? These and other questions
will be discussed at 4flow Logistics Day in Munich on September 29,
2016. The event with the theme “Reshaping supply chains in the digital
age” will take place at the Municon Conference Center at Munich Air-
port in Germany. Insights on best-practice cases for digital supply chains
await the attendees. In addition to Claudia Sorrentino, Head of Supply,
Production & Logistics at BOBST and Johan RĂĄdmark, Director at Volvo
Cars, Patrick Thom, Manager Transportation Planning Inbound Europe
at BMW, and Dr. Thorben Seiler, COO of Bringmeister.de, will present
practical solutions they are implementing to overcome logistics chal-
lenges in the digital age. 4flow Logistics Day is the ideal setting for at-
tendees to network and exchange insights. For more details about the
event and how to register, please visit: www.4flow.com/logisticsday.
4flow at BVL International Supply Chain Conference
This year’s International Supply Chain Conference presented by BVL In-
ternational, will take place October 19-21, 2016 in Berlin, Germany. At-
tendees are invited to stop by our booth in Foyer Potsdam to speak with
team members from 4flow consulting, 4flow software and 4flow man-
agement about any challenges you might have in your supply chain.
Request a meeting with 4flow at the conference by sending an email to
On Friday, October 21 at 9:30 am, Dr. Stefan Wolff, CEO of 4flow, will
moderate the session on digital transportation management. Among the
speakers at this session will be Norbert Peto, load control center man-
ager at Mondelez Europe who will present “Smart Transport Manage-
ment and Optimization in the Fast-Moving Food Industry”.
4flow newsletter, 2/ 2016 issue, page 16/16
In the spotlight Ina Goedicke: Consultant at 4flow in Frankfurt, Germany
Ina Goedicke has worked as a consultant at 4flow
in Frankfurt since January 2015. Prior to joining
4flow, she attained a doctorate in logistics and
held a position as a research associate at the Insti-
tute for Transportation Logistics at the Technical
University of Dortmund. As a team leader in Lo-
gistics Planning at TU Dortmund University, Ina
engaged in teaching and research, while working
on industry projects. She worked with several large logistics service
providers, supporting them with planning and optimizing hub systems
and processes.
At 4flow Ina has handled a wide variety of client projects including
warehouse location consolidation as well as developing and implement-
ing various network strategies. Originally from Dortmund, Germany, Ina
enjoys the uniqueness of each project and the associated challenges.
“The scope of tasks I handle is wide-ranging, which makes the work
very dynamic. My coworkers come from diverse professionals back-
grounds, making learning from one another a real pleasure as we can all
share our past experience. This is a huge component of successful pro-
ject outcomes,” Ina said. During her time at TU Dortmund University
she gained invaluable experience in international collaboration. “The ar-
ray of international projects has taught me how plans are implemented
from country to country. The experience has broadened my horizon
and helped me here to handle projects with clients on a global scale at
4flow.”
In her spare time, Ina enjoys playing cello in a local orchestra and play-
ing at private functions. She is a big fan of Scandinavian design, good
food, backpacking and traveling to different cities. She currently enjoys
cycling in Karlsruhe where she now resides.