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

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Presentation on theme: "G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 1 1. Nürnberger Logistik-Tag an der Georg Simon Ohm Fachhochschule Nürnberg am 24. Oktober 2006."— Presentation transcript:

1 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 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 2

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5 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 5 We deliver Time Price Quality Our network and our experience secures our common success. We provide added value to the customers global sourcing. 1. What is KQ IS AG / Noris Trading – MISSION

6 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 6 NIT Milan LatviaHong KongNew Delhi Nuremberg IstanbulRomaniaShanghaiBombay St. Gallen Izmir DalianTirupur Hungary BeijingPakistan Hong Kong BulgariaShenzenVietnam ThailandBangladesh KoreaIndonesia KarstadtQuelle IS St. Gallen KarstadtQuelle AG, Essen Noris International Trading EuropeASIA All buying offices are managed by KQ IS AG Non-group business through N.I.T. 2. Organisation of the Buying Division

7 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 7 Karachi Taipei Seoul Tirupur QC Shanghai Beijing Hong Kong New Delhi Jakarta Milan Bangkok Dalian Ho Chi Minh City Bombay Bangladesh Sophia Vilnius Budapest Bucharest Istanbul Izmir The KarstadtQuelle Buying organization has almost 30 offices. More than 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 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 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 EastEurope Supplier A Merchandise Manager T-Shirts M 1M 2M 3 Supplier B Supplier C Quality Control Manager QC 1QC 2 4. Buying Organisation Staff Merchandising: 501 Staff QC: 318 Staff Administration: 254 Total 1073

9 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 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. USPs – Advantages of our Buying Offices

10 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 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 Other KQ Group Non Group Customer Karstadt Neckermann D Quelle D

11 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 11 Our offices combine expertise in the local markets with fundamental product knowledge for many merchandising groups. Trading volume by regionsTrading 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 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 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 Payment and 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 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 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 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 14 Offer Sheet Offer Sample Buying / Counter Sample Order Placement Release of Buying / Counter Sample Shipping Approval Final Inspection Production Release Size Set Lab Dip Photo Sample Production In-Line Insp. Logistics Execution Invoice / Payment Finance / Administration System Support: IPOS, PILOT, Target:AQM+ Auction Pro- active offer Buyers request Lab Test Order Fulfilment Order Development A B C Buyers Request Auction BO obtains offer from supplier Order Clearing Supplier Customer 10.1 Standard Core Process 1

15 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg Standard Core Process 2 Total process Description: X Responsible person MCQM Admin Cust, Supplier LINK to IT Sub process Order Development A B C Buyers Request Auctions BO obtains offer by Supplier Process step Product request A1 Producing Counter Sample Sending Counter Sample Sending Counter Sample... A2A3... Execution: Special instructions

16 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 16 Product Request: photo / descrip- tion / original sample 1A1 Producing the Buying / Counter Sample Sending the Buying / Counter Sample Sending the Buying / Counter Sample Negotiations Order Placement Order Development A B C Buyers Request Auctions BO obtains offer by Supplier 1A21A31A41A6 Product Offer to Customer by BO 1B1 Offer Sheet Sending the Offer Sheet Sending the Offer Sheet Reviewing the Offer Sheet Confirmation / Sample Request 1B21B31B41B5 Producing the Offer Sample 1B6 Shipment of the Offer Sample Negotiations Order Placement 1B71B8 1B10 A B C Preparation for an Auction 1C1 Online Evaluation Final To-Dos before Auction starts Auction Auction Wrap-Up 1C21C31C41C5 Ordering Buying / Counter Sample 1C6 Producing the Buying / Counter Sample Sending the Buying / Counter Sample 1C71C8 Offer Sample Review Offer Sample Review 1B9 Order Placement 1C10 Buying / Counter Sample Review 1A5 Buying / Counter Sample Review 1C9 Textiles and Non technical hardware Standard Core Process 3 – Process Overview Order Development Textiles and Non technical hardware

17 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg Process Overview Order Fulfilment Textiles – Non technical hardware – Technical hardware ETA (estimated day of arrival) Order Fulfilment Buying / Counter Sample Inspection 1/11 Releasing the Buying / Counter Sample Lab Dip Photo Sample Size Set 1/121/13a 1/13b 1/13c Lab Test 1/14 Production Release Production 1/151/16 In-line Inspection 1/17 End of Production / Final Inspection Shipping / Transport Release ETD Shipping / Transport Arrival 1/181/191/201/211/ Technical hardware Non technical hardware Textiles Arrival ETA (estimated day of arrival) Buying Sample Inspection Releasing the Buying Sample Photo Sample Packing- & Quality- Sample Test Packing- & Quality- Sample Test Production Release Production End of Production / Final Inspection Shipping / Transport Release ETD Shipping / Transport 2/112/122/13 2/14 2/152/16 2/172/18 2/192/202/21 Photo Sample Packing & Quality Sample Test Packing & Quality Sample Test Production Release Production End of Production / Final Inspection Shipping / Transport Release ETD Shipping / Transport 3/12 3/133/14 3/15 3/16 3/17 3/18 Arrival 3/20 ETA (estimated day of arrival) 3/19

18 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg C.I.S. Screen Shot MCQM Admin Supplier Customer X 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 Offer Sheet Offer Sample Buying / Counter Sample Order Placement Release of Buying / Counter Sample Shipping Approval Final Inspection Production Release Size Set Lab Dip Photo Sample Production In- Line Insp. Logistics Execution Invoice / Payment Finance / Administration System Support: IPOS, PILOT,Target:AQM+ Order Fulfilment Order Development Auction Pro- active Offer Buyer s Request A B C BuyersRequest Auction BOobtains offer by Supplier Lab Test Product request A1 Producing Counter Sample Sending Counter Sample Sending Counter Sample... A2A3... Order Clearing

19 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 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, ~2.000 ~1.000 ~5,5 73 1) 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… Li & Fung

20 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 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 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 21 Pudong Shanghai 1990

22 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg Pudong Shanghai 2005

23 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg How to describe Emerging Markets? Fast growing Polypol High staff-rotation Open legal frame Brand orientation Labor intensiv Resistant against mistakes

24 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 24 Thank you for your kind attention

25 G:\Hol_allg\General\Presentations\Fachhochschule Nürnberg 25 Contact: Carsten Wolff Managing Director KarstadtQuelle International Services AG Professional Buying Services Worldwide Phone: Fax:


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