G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 1 1. Nürnberger Logistik-Tag an der...

$: G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 1 1. Nürnberger Logistik-Tag an der Georg Simon Ohm Fachhochschule Nürnberg am 24. Oktober 2006.$
G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg

1

1. Nürnberger Logistik-Tag

an der Georg Simon Ohm Fachhochschule Nürnberg

am 24. Oktober 2006

Supply Chain Management bei KarstadtQuelle

ein Praxisbericht

Carsten Wolff

Managing Director

KarstadtQuelle International Services AG


2


3


4

Schiff


5

We deliver

Time

Price

Quality

Our network and our experience secures our

common success. We provide added value

to the customer’s global sourcing.

1. What is KQ IS AG / Noris Trading – MISSION


6

NIT NIT Milan Latvia Hong Kong New Delhi

NurembergIstanbul Romania Shanghai Bombay

St. Gallen

Izmir Dalian Tirupur

Hungary Beijing Pakistan

Hong Kong

Bulgaria Shenzen Vietnam

Thailand Bangladesh

Korea Indonesia

KarstadtQuelle IS St. Gallen

KarstadtQuelle AG, Essen

Noris International Trading

Europe ASIA

All buying offices are managed by KQ IS AG

Non-group business through N.I.T.

2. Organisation of the Buying Division


7

Karachi Taipei

Seoul

TirupurQC

Shanghai

Beijing

Hong Kong New Delhi

Jakarta

Milan

Bangkok

Dalian

Ho Chi Minh CityBombay Bangladesh

Sophia

Vilnius

Budapest

Bucharest

Istanbul

Izmir

The KarstadtQuelle Buying

organization has almost 30

offices. More than 1.000

employees are managing

supplier relationships in

more than 65 countries .

The KarstadtQuelle buying

organisation has 22 offices.

Over 1,000 employees

manage supplier

relationships in over

50 countries .

Quingdao

3. Selling is Local – Sourcing is Global


8

The standardized organisation within each office is grouped according to the customer or relevant products.

Hongkong

Taiwan

South Korea

P.R. China

Bangladesh

Indonesia

Vietnam

Thailand

India

Pakistan Italy

Turkey

Bulgaria

Lithuania

Hungary

Romania

Far East Europe

Supplier A

Merchandise Manager T-Shirts

M 1 M 2 M 3

Supplier B

Supplier C

Quality Control Manager

QC 1 QC 2

4. Buying Organisation

Staff Merchandising: 501 Staff QC: 318 Staff Administration: 254 Total 1‘073


9

KarstadtQuelle offers a unique combination of benefits for third party customers.

Competitive purchase prices

• Direct contact to producers in low cost countries• Established relationship with world leading producers• Economies of scale through bundling of volume• Knowledge to bridge gaps in underdeveloped markets

Better quality of product and delivery

• Advanced Quality Management (AQM) with European and local technicians

• Long term partnership with leading certified test labs and competitive prices

• Comprehensive system for quality and social compliance audits• Partnership and integrated systems with leading consolidator and

forwarder

Efficient support of your buying teams

• Product-oriented merchandising groups• Comprehensive services on all aspects of the buying process• Deep insight into and anticipation of market shifts• Integrated online buying system software• B2B auctions

Wide scope of products and markets

• 22 offices dealing with suppliers in over 50 countries• Complete product portfolios for Textiles and Hardware• Expertise in intern. retail, mail order business and hypermarkets• Broad experience in sourcing

5. USP‘s – Advantages of our Buying Offices


10

Previously established for the KarstadtQuelle organisation, the buying offices today already handle a substantial and growing volume for Non-Group Customers.

Total sourcing volume 2005: € 1,1 billion

6. Customer Structure

16%39%

7% 28%

10%Other KQGroup

Non Group Customer

Karstadt

Neckermann DQuelle D


11

Our offices combine expertise in the local markets with fundamental product knowledge for many merchandising groups.

Trading volume by regions Trading volume by product groups

Northern Asia/HK

Western Europe

Eastern Europe

Indian Sub- continent

South-East Asia

Textiles

Hard-ware

Ladieswear

Menswear

Under &Swimwear

Home textiles

Shoes

Childrenswear

Other

House &Home

White Goods

PC/Telco

Sports

Brown Goods

Toys

Other

7. Trading volume by region and product group


12

8. KQ IS AG – Services provided by the Buying Offices

By delivering professional services in all phases of the sourcing process we support you in reaching your goals.

Development of Collection

•Market and supplier research

•Travel preparation and support

•Development of offer samples

1 Order Development

•Sample Management•Technical support•Purchase decision •Order follow-up•Texyard/GNX

2 Order Fulfilment

•Production release•Production follow-up

• In-line and final inspections

3

Logistics and Documentation

•Delivery of merchandise (outsourcing / 3rd party)

•Handling export and shipping documents (outsourcing / 3rd party)

4 Order Paymentand Commission

•Payments and reimbursements of customers

•Documentation and recording of commission

5 Processing Claims

•Merchandise claims•Delivery date claims•Follow-up and settlement of claims

6 Process Related Tasks

•System development•Reporting and controlling

•Budgeting and capacity planning

•Travel management bookings

7


13

The IPOS system constitutes the connection between your buying department and the buying offices.

9. IPOS - KQ IS AG own order system

Technology• Web-based interface• Software based on QRS/Rockport

development (Tradeweave)• Open system / interfaces to supplier

and logistics systems

Features• Up-to-date and online information

about the status of each order• System can be accessed by all

parties involved • Means of interaction between the

buyer and the buying office


14

Off

er

Sh

ee

t

Off

er

Sa

mp

leB

uyi

ng

/ C

ou

nte

rS

am

ple

Ord

er

Pla

cem

en

t

Re

lea

se o

f B

uyi

ng

/

Co

un

ter

Sa

mp

le

Sh

ipp

ing

Ap

pro

val

Fin

al

Insp

ect

ion

Pro

du

ctio

n R

ele

ase

Siz

eS

etL

ab

Dip

Pho

toS

amp

le

Pro

du

ctio

nIn

-Lin

e I

nsp

.

Lo

gis

tics

Exe

cutio

n

Invo

ice

/ P

aym

en

t

Finance / Administration

System Support: IPOS, PILOT, Target:AQM+

Auc

tion

Pro

-a

ctiv

eo

ffer

Buy

er‘

sre

que

st

La

b T

est

Order Fulfilment

Order

Development

A

B

C

Buyer‘s Request

Auction

BO obtains offer from supplier

OrderClearing

Su

pp

lier

Cu

sto

me

r

10.1 Standard Core Process 1


15

10.2 Standard Core Process 2

Off

er S

heet

Off

er S

ampl

eB

uyin

g /

Cou

nter

Sam

ple

Ord

er P

lace

men

t

Rel

ease

of

Buy

ing

/ C

ount

er S

ampl

e

Shi

ppin

g A

ppro

val

Fin

al

Insp

ectio

n

Pro

duct

ion

Rel

ease

Siz

eS

et

La

bD

ipP

ho

toS

am

ple

Pro

du

ctio

nIn

-Lin

e I

nsp

.

Logi

stic

s E

xecu

tion

Invo

ice

/ P

aym

ent


System Support: IPOS, PILOT, Target:AQM+

OrderFulfilment

OrderDevelopment

Au

ctio

nP

ro-

act

ive

Off

er

Bu

yer‘

sR

eq

ue

st

A

B

C

Buyer‘s Request

Auction

BO obtains offerby Supplier

Lab

Tes

t

OrderClearing

Total process

Description: ....................................................................................................................................

X

Responsible person MC QM Admin Cust,Supplier

LINK to IT

Sub process

Order

Development

A

B

C

Buyer‘s Request

Auctions

BO obtains offer by Supplier

Process stepProductrequestProductrequest

A1 ProducingCounter Sample

ProducingCounter Sample

Sending Counter Sample

Sending Counter Sample ......

A2 A3 ...

Execution: ....................................................................................................................................

Special instructions


16

Product Request: photo / descrip-

tion / original sample

Product Request: photo / descrip-

tion / original sample

1A1Producing the

Buying / Counter Sample

Producing the Buying /

Counter Sample

Sending the Buying /

Counter Sample

Sending the Buying /

Counter SampleNegotiationsNegotiations Order PlacementOrder Placement

Order DevelopmentA B

C

Buyer‘s Request

Auctions

BO obtains offer by Supplier

1A2 1A3 1A4 1A6

Product Offer to Customer

by BO

Product Offer to Customer

by BO

1B1

Offer SheetOffer Sheet Sending the Offer Sheet

Sending the Offer Sheet

Reviewing theOffer Sheet

Reviewing theOffer Sheet

Confirmation / Sample RequestConfirmation /

Sample Request

1B2 1B3 1B4 1B5

Producing theOffer SampleProducing theOffer Sample

1B6

Shipment of theOffer Sample

Shipment of theOffer Sample NegotiationsNegotiations

Order PlacementOrder Placement

1B7 1B8

1B10

A

B

C Preparation for an Auction

Preparation for an Auction

1C1

Online EvaluationOnline Evaluation Final To-Do‘s before Auction starts

Final To-Do‘s before Auction starts AuctionAuction Auction Wrap-UpAuction Wrap-Up

1C2 1C3 1C4 1C5

Ordering Buying /Counter Sample

Ordering Buying /Counter Sample

1C6Producing the

Buying / CounterSample

Producing theBuying / Counter

Sample

Sending theBuying / Counter

Sample

Sending theBuying / Counter

Sample

1C7 1C8

Offer Sample Review

Offer Sample Review

1B9

Order PlacementOrder Placement

1C10

Buying / CounterSample Review


1A5



1C9

Textiles and Non technical hardware

1

10.3 Standard Core Process 3 – Process Overview “Order Development Textiles and Non technical hardware”


17

10.4 Process Overview “Order Fulfilment” Textiles – Non technical hardware – Technical hardware

ETA (estimatedday of arrival)


Order Fulfilment

Buying / CounterSample InspectionBuying / Counter

Sample Inspection

1/11Releasing the

Buying / CounterSample

Releasing theBuying / Counter

SampleLab DipLab Dip Photo SamplePhoto Sample Size SetSize Set

1/12 1/13a 1/13b 1/13c

Lab TestLab Test

1/14

Production ReleaseProduction Release ProductionProduction

1/15 1/16

In-line Inspection In-line Inspection

1/17

End of Production / Final Inspection

End of Production / Final Inspection

Shipping / TransportRelease ETD

Shipping / TransportRelease ETD Shipping / TransportShipping / Transport ArrivalArrival

1/18 1/19 1/20 1/21 1/22

1 2

3 Technical hardware

Non technical hardwareTextiles

1

2

3

ArrivalArrival ETA (estimatedday of arrival)


Buying Sample Inspection

Buying Sample Inspection

Releasing theBuying Sample

Releasing theBuying Sample

Photo SamplePhoto SamplePacking- &

Quality- SampleTest

Packing- &Quality- Sample

TestProduction ReleaseProduction Release ProductionProduction End of Production /

Final InspectionEnd of Production /

Final InspectionShipping / Transport

Release ETDShipping / Transport

Release ETD

Shipping / TransportShipping / Transport

2/11 2/12 2/13 2/14 2/15 2/16 2/17 2/18

2/19 2/20 2/21

Photo SamplePhoto SamplePacking &

Quality SampleTest

Packing &Quality Sample

TestProduction ReleaseProduction Release ProductionProduction End of Production /

Final InspectionEnd of Production /

Final InspectionShipping / Transport

Release ETDShipping / Transport

Release ETD

Shipping / TransportShipping / Transport

3/12 3/13 3/14 3/15 3/16 3/17

3/18

ArrivalArrival

3/20



3/19


18

11. C.I.S. Screen Shot

MC QM Admin Supplier CustomerX

Description:The buying office passes all information received to the supplier. In some cases there are several suppliers requested to make the buying / counter sample

Execution: Depends on the request, photos per e- mail, sketches per fax or mail, samples per courier service

X

LINK to operational IT system

Special instructions

O

ffer

Sh

eet

Off

er S

amp

leB

uyin

g /

Cou

nte

rS

amp

le

Ord

er P

lace

me

nt

Re

lea

se o

f Bu

ying

/

Co

unte

r S

amp

le

Shi

ppin

g A

pp

rova

l

Fin

al

Insp

ect

ion

Pro

duc

tion

Rel

ease

Siz

eS

etLa

bD

ipP

hoto

Sam

ple

Pro

duct

ion

In-L

ine

Insp

.

Log

istic

s E

xecu

tion

Invo

ice

/ P

aym

ent


System Support: IPOS, PILOT, Target :AQM+

OrderFulfilment

OrderDevelopment

Auc

tion

Pro

-ac

tive

Off

er

Buy

er‘s

Req

uest

A

B

C

Buyer‘s Request

Auction

BO obtains offerby Supplier

Lab

Te

st

ProductrequestProductrequest

A1 ProducingCounter Sample

ProducingCounter Sample

Sending Counter Sample

Sending Counter Sample ......

A2 A3 ...

OrderClearing


19

Comparison of important operating figures of KQIS and Li & Fung

1) There of several sales offices (London, Amsterdam, div. USA)

Turnover 2005 (in bn. EUR)

Offices

Countries

Number of suppliers

Number of employees

1,2

26

20

~2.000

~1.000

~5,5

731)

41

~7.000

>7.000

Advantages Li & Fung

Economies of scale for Li & Fung/much more buying power

Li & Fung with higher presence in sourcing markets

Longer payment terms for KQ

L&F is world market leader in international sourcing!

Li & Fung generates new options for the international sourcing – Countries, suppliers, more favorable buying conditions…..

12. Li & Fung


20

Comparison of operative services of KQIS and Li & Fung

Headline

Quality Inspection

Documentation

Sourcing (fabrics, raw materials)

Financial Services (Payment)

Order-Management

Commission rate stays the same!

Volume Increasing –

Positive price effects

… as well as more services for KQ

13. C.I.S. Screen Shot


21

Pudong Shanghai 1990


22

15. Pudong Shanghai 2005


23

16. How to describe Emerging Markets?

Fast growing

Polypol

High staff-rotation

Open legal frameBrand orientation

Labor intensiv

Resistant against mistakes


24

Thank you for your kind attention


25

Contact:

Carsten WolffManaging Director

KarstadtQuelle International Services AGProfessional Buying Services Worldwide Phone: +41-71-274 63 33Fax: +41-71-274 63 31Email: [email protected]

G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 1 1. Nürnberger Logistik-Tag an der...

Documents

Transcript of G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 1 1. Nürnberger Logistik-Tag an der...