total landed cost - case study
TRANSCRIPT
Supply Chain Solutions
What We DoWe develop a detailed understanding of our Customer’s Business, then design a solution that bridges the operational & process gaps between sourcing and order fulfillment.
How We Build Value
How Our Customers Receive Value
Ratio CustomerBenchmark
Co #1Benchmark
Co #2
76.53
7.80
0.07
0.91
4.56
0.69
54.12
2.23
0.98
0.09
4.70
0.93
57.70Cash-to-Cash Cycle
(CCC)
Fixed Assets Turnover Ratio
2.42
Inventory Turnover Ratio
4.46
Return on Assets Ratio
0.20
Operating Ratio 0.85
Current Liabilities to Inventory Ratio
0.99
Opportunity for Improvement Identified in
Cash-to-Cash
NYK Solution delivered improved ROA
Opportunity for Improvement – Inventory Turns
The final operating solution provides productivity and financial benefits to our customers that are proven through direct linkage to Balance Sheet and Income Statement performance metrics.
Total Supply Chain Engineering:Case Study
NLA identified and reduced the Total Landed Cost in 4 Areas– Product costs
– Transportation costs
– Inventory capital
– Carrying costs
WAREHOUSE INVENTORY COST
IN-TRANSIT INVENTORY COST
TRANSPORT COSTTRADE-RELATED COST
PRODUCT COST
Improve accuracy of inventory
Increase capacity per domestic trailer / van
Support Production Scheduling
Increase Bagging Speed
Minimize claims and risk of injury
Increase capacity per international container
Increase Appointment Management
Improve delivered cost of product
Increase Total Bagging Capacity
Reduce adjustments
System RoutingAutomate Palletizing
Reduce temp laborReduce cost per pallet
Carrier SelectionMinimize shipping wrong product
Utilize in-line Cooling
Reduce over-timeReduce cost per bagCarrier ManagementAvoid labeling compliance issues
Improve Evaporation
WAREHOUSE INVENTORY COST
IN-TRANSIT INVENTORY COST
TRANSPORT COSTTRADE-RELATED COST
PRODUCT COST
Improve accuracy of inventory
Increase capacity per domestic trailer / van
Support Production Scheduling
Increase Bagging Speed
Minimize claims and risk of injury
Increase capacity per international container
Increase Appointment Management
Improve delivered cost of product
Increase Total Bagging Capacity
Reduce adjustments
System RoutingAutomate Palletizing
Reduce temp laborReduce cost per pallet
Carrier SelectionMinimize shipping wrong product
Utilize in-line Cooling
Reduce over-timeReduce cost per bagCarrier ManagementAvoid labeling compliance issues
Improve Evaporation
Cost of Sales
Total Landed Cost
Cost of Sales
Total Landed Cost
Food Products Company: Financial Impact
Over 10.3% improvement inOver 10.3% improvement inTotal Landed Cost!Total Landed Cost!
>
Food Products Company: Supply Chain Engineering
The evaluation and analysis of their supply chain included multiple components:+ Inventory planning+ Inventory control + Product handling+ Slip sheets vs. Pallets+ Asset / cube utilization+ Product cost per unit+ Distribution network+ Facility placement+ Transportation options+ Demand satisfaction
CURRENT PHYSICALDISTRIBUTIONNETWORK
OPTIMIZEDDISTRIBUTIONNETWORK
Food Products Company
+ Customer Challenge+ Inefficient, nonproductive supply chain due to:
+ Inconsistent processes across network+ Inefficient work flows+ Sub-optimal distribution network+ Out of control inventory planning and management
+ Yusen Logistics Solution+ Identify opportunities to reduce Total Landed Cost through review and analysis of the
Customer’s Supply Chain and Logistics Network
+ Supply Chain Cost Improvement:+ Over 10.3% improvement in Total Landed Cost
+ Reduced Cost of Goods Sold expense by 3.2% over one year + Improved inventory carrying cost by 1.6% over one year + Reduced transportation network miles by 23% over one year+ Reduced international freight cost by 20% over one year
Allen BainsManager, Business Development(805)460-6203 office(206)793-9166 [email protected]