The PThe Poolingooling

Keep Logistics

costs under control

Reduce the Stock

Increase service

level

Improve delivery

reliability

Reduce carbon

footprint

History & Origins of Pooling Solution

2001

Creation of a Supply Chain Mgt Expertise >> Definition of high value services End of 2001

Pooling Conception following requests from customers & prospects to massify their flows

June 2002

Pooling Concept & Solutions presentation to customers

June 2003

Pooling becomes real thanks to 2 pilote producers

July 2003 - Oct 2004Pilote Implementation + VMI Dpt Creation+ Set-up of Flows Coordination Tools + Multiple contacts with Retailers

Oct 2004Start-up of 1st VMI Pilote + Investment in more powerful tools

2005SITL Conference

Award for Innovation

2005 to date...Development of new pools & deployment of existing ones

2014„Supply-Chain King” Award for SPHINX Pool

Definition of Pooling in FM Logistic

Producer A

30 pallets

1 delivery every 5 days

Producer B

1 delivery every 8 days

14 pallets

Consolidation of producers logistics flows in order to increase delivery frequency & dropsize towards retailers Distribution Centers

1 delivery every 4 days

Retailer Distibution Center

26 + 7 pallets

Requirements for Pooling set-up : multi-producers platforms

MMulti-producers Strategyulti-producers Strategy

>> FM Logistic multi-producers platforms are essential assets and lever of performance for Pooling implementation, thanks to mutualisation & resources optimization under one single roof.

>> Pooling solution might be implemented only with common Inbound & Outbound points for producers.

Flows Piloting

From easiest… Implementation of deliveries in combined loading in agreement with retailers

• Agreement with each retailer on days & time of combined deliveries for all involved producers in the same vehicles

• Possibility for some retailers to manage group of suppliers and optimize their Inbound Transport

…to most advanced solutionsMutualized Vendor Managed Inventory Process

• Mutualized VMI (FM Logistic) allowing a dynamic allocation of quantities proposed by producer, depending on real needs (no fixed lot size)

• Each producer gets access to its data (confidentiality management in the tool), manages parametrization and remains responsible for orders proposal in regards to its own conditions with the retailers

• VMI Tools used : OCS & EWR MP

FM Logistic Role : FacilitatorRetailers

Producers

Retailers Expectations : Answers from the Pooling

Flows massification is a collaborative approach between producers supported by retailers :

Improve the on-shelf availability Improved reactivity thanks to increased frequency Securing transport thanks to flows balancing and vehicles optimization Piloting of the stock level by suppliers (VMI)

Improve the cashflow Stock reduction due to increased frequency

Reduce Carbon Footprint Through better vehicles optimization

A WIN-WIN SOLUTION

Improvement of on-shelf availabilityIncrease transportation reliability

Decrease on stock levelContribution to reduction of CO2 emissions

EN

VIR

ON

ME

NT

Global Supply Chain added-value creation

+0,2 à +1,5 points

Service rate+0,2 à +1,5 points

Service rate

+5 to 10

points+5 to 10

points

15 to 30%

Decrease depending on

producers/retailers15 to 30%

Decrease depending on

producers/retailers

- 30 to 35 %

CO2 emissions- 30 to 35 %

CO2 emissions

FM Logistic Pooling in France

Cosmetics

Since 2005

Personal Care

Multipick processSince 2011

Grocery

Home Care

Since 2013

Grocery

No VMI, multipick Pool

‘SPHINX’ : The partners

Intersnack NutrimaineHeinz Kimberly Kellogg’s

S P H I N K KX

Sara Lee

Maison du Café

1.500 SKU 1 million pallets delivered / year

1,4 billion € Sales

1 multi-pick Pool

Since 2009, North of Paris

Situation at project Start : Beginning of 2012

1 Grocery Pool

Since 2004, North of Paris(with FM Logistic)

1 Coffee Pool

+ Cadbury

Since 2004 near Orleans

1 „single” producer

North of Paris(with FM Logistic)

SPHINX

1 single producer

Lyon area

Situation : End of 2012

Pool SPHINXwith 7 producers from North of Paris (Longueil Sainte-Marie) :

SPHINX

SPHINX

“Pooling” docks area

Delivery Notes

Entry Gate

Pooled orders

Pooled orders

Pooled orders

Pooled orders

Pooled orders

Pooled pallets

PoolPool

PoolPool Control Tower

Physical process

Organization

Mutualization of storage for the producers : 7 producers under one single roof : 100 000 sqm warehouse dedicated to pooling 1 million pallets flow per year A migration plan from December 2011 to Mid September 2012

Transport Control Tower : Delegated to IPS

Process of mutualized Vendor Management Inventory :• Mutualized VMI (FM Logistic) allowing a dynamic allocation of quantities proposed by

producer, depending on real needs (no fixed lot size)

• Each producer gets access only to its own data (confidentiality management), manages parametrization and remains responsible for orders proposal in regards to its own conditions with the retailers

VMI Tool selected by the pool : OCS Data confidentiality management Groundfloor pallets algortyhm

SPHINX

Results in line with expectations one year after start-up

SPHINX