2 outsourcing questionnaire-nylex.2005

Questionnaire for

Outsourcing of Logistics Services

Customer Main Contacts:

Thomas Evans

[email protected]

Andrew Pollard

Nylex Corporation Pty Ltd

[email protected]

Kuehne + Nagel Contact:

Emanuel Kelly

National Manager

Solutions Engineering & Business Development

Contract Logistics, Australia

Kuehne + Nagel Australia Tel: + 61 (0)3 9394 3300P.O. Box 1118 Cel: + 61 (0)4 3456 19453043 VIC Dir: + 61 (0)3 9394 3360Australia E-Mail: [email protected]

Proprietary and Confidential Property of Kuehne + Nagel AG

2-outsourcingquestionnairenylex-150203195930-conversion-gate02.doc of 16

Content:

1. Required services and general questions.............................................................................3

2. Organisation ......................................................................................................................... 4

2.1. Current set-up (Organisation in General)........................................................................4

2.2. Staff (if to be taken over by Kuehne + Nagel) ................................................................4

3. Product range and product data............................................................................................5

4. Operation.............................................................................................................................. 7

4.1. Inbound........................................................................................................................... 7

4.2. Storage & Inventory........................................................................................................7

4.3. Outbound and Workflow Order Process.........................................................................8

4.4. Value added services.....................................................................................................9

4.5. Returns – Reverse Logistics ........................................................................................10

4.6. Other Processes...........................................................................................................10

4.7. KPI, Administration and Invoicing.................................................................................10

5. Information Technology.......................................................................................................11

6. Transportation and customs clearance...............................................................................12

6.1. Customs clearance.......................................................................................................12

6.2. Insurance...................................................................................................................... 12

6.3. Transportation Operation .............................................................................................12

6.4. Distribution ................................................................................................................... 13

7. Facility (if to be taken over by Kuehne + Nagel)..................................................................14

7.1. Description.................................................................................................................... 14

7.2. Facility Costs ...............................................................................................................14

7.3. Legal Issues................................................................................................................. 14

8. Equipment (if to be taken over by Kuehne + Nagel)............................................................15

8.1. Static Equipment (Racking) .........................................................................................15

8.2. Mobile Equipment.........................................................................................................15

8.3. IT Equipment Warehouse ............................................................................................15

9. Commercial matters ...........................................................................................................16

10. Attachment (XLS-file) .......................................................................................................16



1. Required services and general questions

• What are the intentions to outsource the warehouse to Kuehne + Nagel? Reasons?

• What do you consider as “critical success factors” in your business and in this project?

• Which logistics services will be outsourced? Please describe the logistics services you require from Kuehne + Nagel:

o Warehousing services

o Inbound transportation

o Outbound transportation / distribution

o Value added services

• What is the scope of the required services:

• Do you intend to outsource your logistics in a shared (multi-user) Kuehne + Nagel warehouse or as a dedicated (new) warehouse solution?

• Do you wish your existing warehouse operation and staff to be taken over and managed by Kuehne + Nagel?

• What is the planned timeframe of the outsourcing project?

o Deadline for quotation or proposal of Kuehne + Nagel

o Deadline for awarding the contract

o Date of realization/implementation of operation

• Who is / are your current Logistics-service-provider(s)?

• Are there any deadlines such as notification periods, break clauses, or termination period with current Logistic Provider, which must be adhered to?

• Are there any known obstacles or further constraints, which affect the transition and implementation process, e.g. peak seasons?

• What contract terms do you look for?

o Period of validity of the contract with KN (or add to commercial issues)

o Notification rules

• How do you estimate your future growth

o What is the expected growth / changes of volume in the next 3 – 5 years?

o What are the expected changes in SKU and consignment structures in the next 3 – 5 years?

o What are the plans regarding sourcing and production sites?

o What are the expected changes in your customer base?



2. Organisation

2.1.Current set-up (Organisation in General)

• Who has overall responsibility for the operation today and who is the main contact for this outsourcing project?

• How is the organisational set-up of the current operation? Please provide an organisation chart.

• What is the reporting structure of the logistics organisation?

• Are there preferred/requested opening times? What are the current working times / opening hours of the warehouse?

o Mon – Fri: from: to:

o Sat.: from: to:

o Sun. from: to:

• How many shifts per day / per week? Which shift model is in use?

• How is the staffing weighted within the shifts?

• Workload for individual process: including temps?

ProcessNumber of Employees per

shiftNumber of shifts

Inbound / Goods-in

Storage

Outbound / Goods-out

Value Added Services

Administration

Others (please specify)

Total

2.2.Staff (if to be taken over by Kuehne + Nagel)

• How many FTE in administration (“white collar”)?

• How many FTE in warehouse (“blue collar”)?

• How many temps on average?

• Are you prepared to consider non-TUPE and non-asset transfer solutions?

• Please provide detailed (anonymous) list of staff comprising per head:

o Record number

o Salary, bonus, etc

o Additional benefits: company cars, etc.

o Holidays

o Start of employment with company

o Social status (single, married, divorced)

o Number of children

o Disabled



o Please provide details of accrued Pension and severance liabilities

3. Product range and product data

• Please provide information on your product range, as applicable:

o Product group, product name / brands, Description

o Number of SKU (Stock keeping unit)

o Hazardous – Yes / No. If yes, hazardous classes

o Weight per unit

o Dimensions per unit

o Stackable

o Security requirements

o Expiry date

o Value

o Other information / comments

• Please provide ABC classification

Number of different ABCD products? Total number of SKUs for all products in each category

• Please provide information on all pallet sizes including different heights, when pallets have standard heights – inbound and outbound separate if it varies.

• Waste Management: are there any items, which must be disposed for the different product groups (e.g. wrapping material, cartons, paper, plastic or even obsolete / return products)

• What is the seasonality profile? Please outline the seasonal fluctuations by indicating the number of pallets as well as the percentage figure in the table below:



ABC ProductsNumber of

SKUNumber of SKU in %

A - Products (fast moving)B - Products (medium)C - Products (slow moving)Obsolete Products

total 0 0%

Dimensions %Number of

SKUPallets per

yearStackable (yes/no)

Comments

EURO-pallets 80 x 120 cmIndustrial pallets 100 x 120 cmother pallets: ............other pallets: ............Pallet cages

total 0 0 0 0

• What are peak season activity profiles within product groups?



Month inbound in % outbound in % storage in % commentsJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovember Decembertotal 0 0% 0 0% 0 0%

4. Operation

4.1. Inbound

• Please describe briefly your suppliers; how many different inbound suppliers are there and where are they located? (Where do the goods come from (facilities and countries)?

• What are the inbound service expectations?

• Are there any returns from clients to the warehouse?

o If so please provide full specification of your process including IT linkages, timings, current performance

• Average inbound volume per day and product group (if available other units like CBM may be provided as well):

• Is there any inbound pre-advise?

• Is the inbound traffic under control & management of KN?

• Can Kuehne + Nagel determine the time windows for inbound trailers/containers?

• Is it necessary to return the incoming loading carriers (e.g. pallets) to the supplier?

• Is it necessary to repack the incoming goods on loading carriers e.g. Euro-Pal?

• Is there EDI of inbound product data (e.g. purchase orders)?

• Is there an electronic proof of receipt of the incoming goods?

• Are the incoming goods labelled with a barcode?

• Are there any special packaging structures, which must be unpacked or re-packed?

4.2.Storage & Inventory

• How is the warehouse currently laid out?

o By Brand

o By Product Groups

• Storage requirements (average):



product groups trailer boxessingle-product

pallet

mixed pallets

cartons per

pallet

pallet height

non-pallet

average value

volume per

inbound

origin of

goodscomments

12345

• What is your inventory strategy per product group, in case it varies:

o FIFO (First in first out)

o FEFO (First ended first out)

o LIFO (Last in first out)

o Others

• Inventory administration

o IT systems

o Stock accuracy

o Insurance topics

o Number of stock takes per year

• Preferred / prescribed method of stock takes (inventory checks) and frequency? (additional question)

o Monthly or quarterly inventory check

o Cycle count

o Etc.

• Are there any special security requirements? e.g. sprinkler, alarm, camera monitoring, theft protection, fire alarm, etc.

4.3.Outbound and Workflow Order Process

• Please provide an overview of the order management process including:

o Cut-off times

o Time for fulfilment

o Spread of incoming orders across day

• Which element in the order process is more determining: warehouse management or transportation management?

• How many orders are “outside the standard”:

o Express orders

o Emergency orders

• Are there any special packing requirements prior to despatch?

• Are there any specific security wrapping processes?

• Outbound volumes per day:



product groupsnumber

of boxes

number of

pallets

number of units

volume in CBM

pallet racks

bulk storage

floor storage

only

average stock in pallets

value of stock

comments

12345

• How is the outbound shipment structure?

• Timing of pick and pack orders

• What are the daily fluctuations?

• Pallet details

o Pallet packing scheme

o Number of cartons per pallet

o Pallet size (dimensions: l*w*h)

o Number of pallets per container / truck

o If possible please provide photos of packaging

4.4.Value added services

• Please describe required value added services:

• Is there a kitting / de-kitting requirement?

o If so how is this process controlled?

o By whom?

o Is there EDI support for the entire process?



MAX MIN Ø commentNUMBER OF ORDERSNUMBER OF ORDERLINES PER ORDERUNITS PER ORDERLINEKG or CBM PER ORDER

QUANTITY dimensionsSKUsOUTER CARTONSMIXED CARTONSINCOMPLETE CARTONSPALLETSOTHERS

deadline % or ordersoutbound

same/next dayup to 12:00between 12:00 and 14:00between 14:00 and 16:00between 16:00 and 18:00after 18:00

day % of ordersMondayTuesdayWednesdayThursdayFridaySaturdaySunday

o Are there special packing requirements?

• Please describe the value added service you require and average volume per month. Examples of services: kitting, quality control, labelling, assembling, manufacturing, etc.

4.5.Returns – Reverse Logistics

• Volume of return goods:

• Please describe the required returns processing activities:

o Call centre

o Quality inspections

o Testing

o Repairs

o Inventory updates

o Others

4.6.Other Processes

• What are the typical month-end processes?

• How are product range additions and deletions notified?

• What is the stock obsolescence process?

• What is the stock disposal and write-off process?

• Volumes

4.7.KPI, Administration and Invoicing

• Please provide existing SOP (Standard Operating Procedure) for your operation.

• Which KPI’s should be measured? (e.g. lead time storing in, lead time order processing)

• What are current KPI / Productivity measures?

• What are current KPI / Productivity performances?

• What is the invoicing procedure?

o Measurable units on invoice



Product groupsItems per

monthCartons per

monthRequired services

Comment regarding returned packaging

12345

product groups servicesaverage volume

per monthsub-components

(base-units)description of services

12345

o Invoice cycle

5. Information Technology

• Which warehouse management system is used?

• Which IT systems are used for transportation management?

• Please describe ERP or SCM System as well other systems in use (e.g. SAP, JDE)

• Which interfaces for EDI are required, please specify:

o Inbound

o Purchase order data

o Pick & pack data

o Outbound

o Stock

o Others

• Is Radio Frequency required in the warehouse?

o Truck terminals

o Hand held devices

o Mounted stations

o Others

• Which barcode is used?

o EAN 128

o Others

• Do you apply RFID technology in your supply chain?

• Volume of transactions per day?

• Other issues

• Which IT systems do you use currently?

o Bookkeeping & finance software

o Supply chain software

o Warehouse administration

o Data exchange (EDI)

o Other systems

• Which interfaces are required?

• Which documents need to be generated?

• Do you need web visibility for your inventory or for distribution of your shipments?

• How many orders and order lines do you have per day on average and maximum?

• Do you require bonded warehouse and customs clearance?



6. Transportation and customs clearance

6.1.Customs clearance

• In case suppliers are situated outside the EU, do you require customs clearance?

• Must the goods be cleared at 100 % before storing in?

• Customs clearance on truck or after receipt in bonded warehouse?

• Is a bonded warehouse preferred, i.e. the goods will be cleared at outbound?

• Maximum cargo value (depending on customs clearance)?

• Amount of the customs guarantee?

• Are the incoming goods "in free circulation"?

• Are there any bonded goods?

6.2. Insurance

• Which coverage is required, e.g. CMR?

• Should KN cover a further insurance against damage and loss? If yes, please indicate the throughput value of the goods/year. Please indicate the size of the limitation of liability/year and per damage. Please indicate the customer’s percentage excess.

• Should KN conclude insurance for the client against risks (fire, water a.s.o.) If yes, amount for the coverage per year and per damage.

6.3.Transportation Operation

• Which regions or countries are serviced by the facility?

• How is the inbound transportation (supplier to warehouse) organised?

• How is the outbound transportation (distribution) organised?

• How is the carrier management done and who does it?

• What are current KPI / Productivity measures?

• What are current KPI / Productivity performances?



6.4.Distribution

• Which transportation mode do you use?

• What are the delivery leadtimes and volumes per market?

• Do you need tracking & tracing?

• Do you need electronic access to T&T, i.e. EDI with continuous updates?

• Which kind of Proof of Delivery (PoD) do you require? (Verbal / scanned / by fax / by mail, etc)

• Which information must be on the PoD?

o Delivery address

o Number of pieces

o Unit

o Weight

o Dimensions

o Product name

o Signature and printed name

o Pls add as required



TRANSPORT MODE QUANTITY per monthFull load (above 7 tons)Part loads (2 - 7 tons)groupage (100 - 2000 kgsmall groupage (30 - 100 kg)letter and parcels (1 - 30 kg)express deliveries

Market (Country)Leadtime per location /

region in daysAverage Volume per

month in pallets

7. Facility (if to be taken over by Kuehne + Nagel)

7.1.Description

• Please provide a layout plan / description of the land and building(s), if possible in form of AutoCAD files.

• What is the size of the plot of land?

• What are the sizes (sqm or sqft) for

o Office space

o Handling area (incl. height)

o Pick & pack / value added service area (incl. height)

o Storage area (incl. height)

o High bay storage area (incl. height)

o Special areas (temperature controlled, fridges, ADR, etc)

o Yard space

o Other areas

7.2.Facility Costs

• What are the rental costs (if leased)?

• What are the calculated costs (if owned)?

• What are the additional costs (energy, heating, taxes, etc.)

7.3.Legal Issues

• Is the building owned or leased?

• What are the leasing conditions (contract period, notification, periods, etc)

• What is the book value?

• Are there any obligations on the building / plot of land (mortgage)?

• Are there any restrictions regarding use of building or land?

• How should the outsourcing be done:

o Asset deal = take over of staff and equipment

o Share deal = take over of a legal entity



8. Equipment (if to be taken over by Kuehne + Nagel)

• Which kind of equipment do you use currently?

8.1.Static Equipment (Racking)

• Please provide a list of installed racking including:

o Date of installation

o Type and supplier

o Investment costs and current book value

o Maintenance and repair cost per year

• Are there any plans to replace or change equipment?

8.2.Mobile Equipment

• Please provide list of mobile equipment (forklift trucks, hand pump trucks, high bay lifts, etc.) including:

o Date of purchase / leasing

o Current book value / terms of leasing

o Specification and supplier

o Maintenance and repair cost per year

8.3. IT Equipment Warehouse

• Please provide list of IT equipment in the warehouse:

o Scanners

o Handheld

o Network / receivers / antennas, etc.



9. Commercial matters

• What are the payment terms?

• How are the tariffs structured, e.g. fix and variable parts?

• Are there any minimum volume levels agreed?

• How is the inventory control and liability defined? What are the risks?

o What is the current process?

o How is it managed?

o What are the current results?

• How is the liability for inbound / outbound logistics defined?

10. Attachment (XLS-file)

• See EXCEL – file with detailed data requirements



2 outsourcing questionnaire-nylex.2005

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