VH-8 Logistic Conference February 2008Page 1

Regional Distribution Centres.Logistics Award 2008.Top Performancein Logistics

VH-8 Logistic Conference February 2008Page 2

Logistics Award 2008.Criteria.

V1-IT 20 20 20 20 10 90

 

1. Error rate

2. Productivit

y3. Costs per turnover

4. Stock

accuracy

5. Realisation

I11-Strategy Number of

supplies

Points

A

≤0,1%

-20% compared to

previous year

≥30

+20% compared to

previous year

≤ 10%

-20% compared to

previous year

≥ 99%

+20% compared to

previous year

≥ 3 metro areas

≥ 1 rural areas 20

B

≤ 0,2%

-10% compared to

previous year

≥ 25

+10% compared to

previous year

≤ 15%

-10% compared to

previous year

≥ 98%

+10% compared to

previous year

2 x metro areas

1 x rural area 10

C >0,2% < 25 >15% <98%

1 x metro area

1 x rural area 0

VH-8 Logistic Conference February 2008Page 3

Logistics Award 2008.Criteria.

World Class / World Cup =

Top Performer / Gold Award 80 Points(Have to present their warehouse and how the results have been achieved.)

Professional / Silver Award 70 Points

Bronze Award 60 Points

2007

G

S

B

=>

=>

=>

All present logistic managers will elect the world cup winner out of the gold award winners.

The world cup is a challenge trophy! If a RDC wins the award 3 times it will pass to

permanent ownership.

VH-8 Logistic Conference February 2008Page 4

Logistics Award 2008.Gold winners are…

Volargne

Hongkong

ShanghaiFrankfurt

BracknellHannover

Icheon

VH-8 Logistic Conference February 2008Page 5

Logistics Award 2008.Gold AwardRDC: Volargne, V1-IT-A-3

Points: 90

Highlight: Highest Improvements of all RDC’s in Europe(last year 50 points, this year 90 points)

Manager: Franco Milani

For Excellence and Outstanding Achievement in Parts Logistics to Regional Distribution Centre Volargne, Italy

VH-8 Logistic Conference February 2008Page 6

Logistics Award 2008.Ceremony (Casino “Four

Cylinder”)

VH-8 Logistic Conference February 2008Page 7

Error rateCost in % of turnover

Lead time stk orders

% Rush orders

2007 0,14% 10,2% 3,3 days 37,1%

2008

2007 22,6 98% (3 days) 96,2%

ProductivityRate of

realization stk orders

% Binning ofdaily incomingLines

- 21%

0,11%

- 6,5%

9,5%

- 58%

1,4 days

- 63%

13,9%

+ 20%

27,2

+ 1,7%

97,8%

+ 1,1%(same day)

99,1%

Following performance improvementsPush limits beyond trade-off....

VH-8 Logistic Conference February 2008Page 8

MOVE resultsMain initiatives

2007 2008

Transport Consolidation Rush+Stock 240.000 220.000Air Freight 200.000 470.000Optimization local Supplier Umbrania 40.000 40.000

Total 480.000 730.000

Packaging Carboard sheets 25.000 30.000New flexibag 30.000Reusing carboard 10.000 10.000

Total 35.000 70.000

Personel Reduction overtime 168.000 193.000Reduction cost new shifts 70.000 70.000

Total 238.000 263.000

Overhead Reduction costs call - center - guardin 36.000 32.000Cleaning less frequency 7.500 7.500Electronic delivery notes 40.000 35.000Profit x rent of building to Husqvarna 170.000 170.000Energy costs (temperature controller) 16.000 16.000

Total 269.500 260.500

Total savings main initiatives 1.022.500 1.323.500

Cost in % on turnover

- 6,5%

VH-8 Logistic Conference February 2008Page 9

Reduction of overtimeFinal results

% Overtime vs. total working hours

7,5%

10,1%

1,1% 1,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

2005 2006 2007 2008

9.428

hours

6.425

hours

806 h.

714 h.

VH-8 Logistic Conference February 2008Page 10

LAST 4 YEARS

- 33%

COSTS

+

-+

-

QUALITY

+ 27%

100%

100%

100%

100%

100%

100%

2005 2006 2007 2008€ 0

€ 0

€ 0

€ 0

€ 0

€ 0

€ 0

€ 0

€ 0

€ 0

€ 0

0,203%

0,152%

0,148%

0,172%

Total Error Rate

0,123%

0,141%

0,168%

0,185%

Packaging costs on Turnover

Err

or

Rate

[%

]

+

-

Packag

ing

Costs

on

tu

rnover

[%]

+

-

Cost in % of turnoverPackaging cost: + quality – costs = efficiency

VH-8 Logistic Conference February 2008Page 11

MOVE development% Logistics costs on Turnover

Cost in % on turnover

- 6,5%

9,56%9,55%9,63%

10,14%

9,00%

9,20%

9,40%

9,60%

9,80%

10,00%

10,20%

Act2006

Act2007

Act2008

BG2009

Savings

Logistics costs with MOVE savings

1.050 tsd €

1.177 tsd €

1.132 tsd €

VH-8 Logistic Conference February 2008Page 12 Our excellence is in our hands…

How get it is in our minds!!!