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I ntegration of Logistic Services in M ultidisciplinary W eb-based Platforms

I ntegration of Logistic Services in M ultidisciplinary W eb-based Platforms. Infos about the Project. FP6-IST Contract number: 027 083 Project acronym: FLUID-WIN Project name: Finance, Logistics and Production Integration Domain by Web-based Interaction Network

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I ntegration of Logistic Services in M ultidisciplinary W eb-based Platforms

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  1. Integration of Logistic Services in Multidisciplinary Web-based Platforms

  2. Infos about the Project FP6-IST Contract number: 027 083 Project acronym: FLUID-WIN Project name: Finance, Logistics and Production Integration Domain by Web-based Interaction Network Priority / Priority Component: PRIORITY 2 INFORMATION SOCIETY TECHNOLOGIES (IST)Strategic Objective 2.4.13'Strengthening the Integration of the ICT research effort in an Enlarged Europe' Total indicative cost: 3.742.300 Euro Commission funding: 1.998.550 Euro

  3. Project background Logistic Focus Field Study Results

  4. Business Integration in the Supply Chain Logistic Service Provider Financial Service Providers B2(B2B) B2B Prime Contractor Tier-1 Supplier Tier-3 Supplier Tier-2 Supplier cross-old-Europe-new-Europe manufacturing networks

  5. Another Significant Step Forward B2B platforms: large quantities of information This information can be useful for external service providers Customers and suppliers can get benefits by connecting/ integrating external service providers to the same platform that they use for B2B communication, and… External service providers can get benefits, too, of course, and so … FLUID-WIN aims to create conditions to allow external service providers to connect to B2B platforms: B2(B2B)

  6. Communication within Supply Chain with FLUID-WIN Service provider Service provider Prime Tier-3 supplier Tier-2 supplier Prime Tier-3 supplier Tier-2 supplier Prime FLUID-WIN – ASP fully integrated web-based communication

  7. Where to Look for Significant Added Value The 3rd millennium major key objectives sound to be: COST CUTTING Major effect: migration of complex manufacturing activities to Far East This implicates for tier-1s a dramatic turnabout with respect to the effort spent in the last 10 years in flexibility achievement Also, East Europe allows cost cutting, thanks to reduced labour cost, but with less constraints with respect to the Far East (especially logistic- financial) So we look for significant added value in full integration (customer - part suppliers - service suppliers) within cross-old-Europe-new-Europe manufacturing networks

  8. Two Critical Processes Logistics: rarely Web-based in “old” Europe manufacturing networks (suppliers are close…..) Financing: consolidated procedures, no added value in Web-based management in “old” Europe manufacturing networks cross-old-Europe-new-Europe manufacturing networks Significant added value: flexibility is possible together with cost reduction, but a full network integration is mandatory.

  9. Project background Logistic Focus Field Study Results

  10. Extended Supply Network Manufacturing network from a FLUID-WIN point of view is a network constituted by a prime contractor and a group of its suppliers; the prime contractor manages the suppliers through a B2B application where at least orders, transportation documents and invoices are managed FLUID-WIN network is a manufacturing network plus • Logistic service providers that provide transportation/ warehousing services among prime contractor and suppliers • Banks and other financial service providers that give services to the companies within the network

  11. Focus and Constrains • FLUID-WIN provides information services between the prime contractor or supplier and the involved logistic services provider • Business rules have to be determined in contracts • Supporting collaboration among logistic service providers • Trust building among parties is the key issue in case of cross border businesses • The great challenge is the integration of the logistics and financial services without installing thousands of peer-to-peer relationships.

  12. Project background Logistic Focus Field Study Results

  13. Interview Session I. Involved partner: Hödlmayr Logistics (HU) • Hödlmayr International AGis an internationally active family business, whose core service is vehicle logistics. The company specialises in the preparation and distribution of finished vehicles from production to delivery to the dealer. The total number of employees of the Hödlmayr International is 1.300, the owned carriers number total is 520, annually transported vehicles of the group is 1.000.000 cars. • Hödlmayr Hungária Logistics Ltd. is the Hungarian subsidiary of Hödlmayr International. • Total storage capacity in 3 different locations in Győr: 13.000 cars • Total number of transported cars in 2005 : 160.000 • Annual turnover (2005): 22,5 million EUR • Number of employees (2005): 251 employees

  14. Lessons Learnt • TRANSPARENCYof supply processes by the logistic service providers is not supported by advanced tools • E-DATA EXCHANGE among the smaller companies doesn’t exist • Reliable FORECAST information is not available • Obtaining reliable STATUS information and providing FEEDBACKS is time consuming • Intensity of 3d PARTY COOPERATION among logistic service providers is poor • Using advanced TRADE FINANCE tools, the LSPs can reduce the lead time of payment process

  15. Potentials Benefits at LSPs • More transparency on logistic processes outside the company borders  trust building, improved collaboration • Electronic data exchange  cost effective solution, data accuracy • Closer monitoring of black-box processes  quality control • Easier access to logistic information Web platform, integration • Improved change and risk management  mitigation strategies against breakdowns • Greater responsiveness  more flexible reaction on clients’ demand, ability to provide a more advanced service • Reducing the non-conformity of logistic services increasing customer satisfaction

  16. FLUID-WIN Logistic Services

  17. Added Value for Logistic Operation • Reduction of… • lead time of transportation thanks to the monitoring • the non-conformity of the logistic services and increasing customer satisfaction • warehouse costs • communication costs • possibility of out of capacity • time spent in daily operations for tracking&tracing of logistic orders • + AND • Better planning possibilities based on a more strict control • Increased visibility, which can also increase the trust • Improvement of logistic processes

  18. Thank you for your attention! For further information please contact: Régens Plc. www.regens.hu Ms Réka Moksony Hungary 1117. Budapest, Prielle K. Str 19/D Phone nº:+36 1 205 30 90 e-mail: moksony.reka@regens.hu

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