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National Sea Logistics Strategy, Processes & Systems

Matthias Knicky, VP, Strategy, Processes & Systems Sea Logistics

Las Vegas, 5th November 2015

KN Excellence –

Process Driven Freight Forwarding

National Sea Logistics Strategy, Processes & Systems p. 2

Matthias Knicky

KUEHNE + NAGEL

• since 2012 VP, Strategy, Processes & Systems Sea Logistics, DE

• 2008 - 2011 Vice President, Strategy, Processes & Organization, DE

• 2006 - 2008 Regional Manager Process Optimization, London, UK

LSU, Stuttgart, DE

• 2001 - 2003 Operations Manager Sea Logistics & Overland

• 1998 - 2001 Apprenticeship program International Forwarding

Academic background

• BSc eq. International Forwarding / Logistics DAV, Bremen, DE

• MSc Supply Chain Management, Heriot Watt University, Edinburgh, UK


Strategy

Management

Customer

Integration

Management

Organization

Management

Process

Management

Change

Management

Project

Management Requirements

Engineering

Training

&

Support

Service Portfolio – “Strategy, Processes & Systems”


Kuehne + Nagel Sea Logistics


3.8 million

TEU

1.19 million tons

airfreight

8.7 million m2

storage area

22 million overland

transports

Airfreight

Top 2 Global

Contract

Logistics

Top 2 Global

Integrated

Logistics

Top 1 Global

More than 650

supply chain specialists

Sea Freight

Top 1 Global

Overland

Top 3 in Europe

Kuehne + Nagel Group

Market position 2014


Kuehne + Nagel Germany

Locations More than 100

Staff Over 13.000

Products

und

Activities

• Air- and Seafreight

• Customs Clearance

• Contracts logistics

• Distribution

• Europe-wide truck-,

rail- and inland water

transportation

• Information Technology

Products und Activities

• Sea freight and airfreight

• Customs clearance

• Contract logistics

• Distribution

• Europe-wide truck, rail and inland

water transportation

• Information Technology

Staff More than 13.000

Locations More than 100


• FCL: KN Germany 700.000 TEU

• LCL: KN Germany 385.000 CBM

Kuehne + Nagel Germany Sea Logistics

Facts & Figures 2014

• Sea Logistics staff KN Germany: 910


The Beginning of KN Excellence


Work-life balance Accelerated

business

environment

Rising customer

requirements Skill shortage

Demographic

change

Demand for

Green Solutions

Initial Situation - External Factors


Increasing cost

pressure

Collaboration

throughout the

network

Substantial

growth

Transparency

requirements

Quality

requirements

Productivity

targets

Initial Situation - Internal Factors


What would you do?


„Structure follows process and process follows strategy.“

Strategy

Process

Structure

Alfred Chandler (1918-2007)

Motto


2009 … 2010 … 2002 2003 2006 2004

Consulting project Deloitte

Strategy workshop Imp

ort

2011 2012 2013 2014 2015

Timeline of KN Excellence

Reorganization

Import Bremen


2009 … 2010 … 2002 2003 2006 2004


Strategy workshop

Go-live Bremen FCL

Go-live Hamburg FCL 2007 &

LCL master file 2008

Imp

ort

Go-live LCL single file

2011 2012 2013 2014 2015


Reorganization

Import Bremen

Reorganization

Import Hamburg


2009 … 2010 … 2002 2003 2006 2004


Strategy workshop

Go-live Bremen FCL



Imp

ort

Kickoff KN Excellence

analysis and optimization phase

Exp

ort

Operating status Import


2011 2012 2013 2014 2015


Reorganization

Import Bremen

Reorganization

Import Hamburg CIP and service


2009 … 2010 … 2002 2003 2006 2004


Strategy workshop

Go-live Bremen FCL



Imp

ort

Kickoff KN Excellence

analysis and optimization phase

Strategy workshop KNDE Sea Logistics

Kickoff implementation phase 2

Reorganization I

documentation & invoicing

Exp

ort

Operating status Import



Go-live LCL master file

CIP Reorganization

Export Bre & Ham

2011 2012 2013 2014 2015

Kickoff implementation phase 1


Reorganization

Import Bremen

Reorganization

Import Hamburg CIP and service

Reorganization II


KN Excellence – Sea Logistics Germany

Import


552

672

793838

1.018

1998 1999 2000 2001 2002

1.000 TEU

3.373

2.8072.827

2.332

2.198

Units

552

672

793838

1.018

1998 1999 2000 2001 2002

1.000 TEU

3.373

2.8072.827

2.332

2.198

Units

Project Drivers Import Germany

False effect

1.000 TEU

FTE


• Transparency over traditional forwarding processes

• Processes enabling mass customization

• Defined processes, roles and responsibilities

• Definition and compliance of performance indicators

• Division of labor (taylorization)

• Productivity increase

• Leveraging economies of scale

Strategic Program Goals


Activity 1 ...........................................................................................................…………………….............. Activity 400

Import operations

File File

File File

File File

File

File File

Zodiak

CIEL

ACON

e-File

Business

Profile

Online FAQ

…

…

Forwarding „Old School“ – Until 2004


Work Preparation

Operations

Invoicing

KN Workplace

Customer Service

CIEL ACON Zodiak e-File Business

Profile

Online FAQ

Activity 1 ....

… Activity 320

Forwarding Today


KN Excellence – Sea Logistics Germany

Export


Project Drivers Export Germany

256.000

470.000

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

500.000

2006 2007 2008 2009 2010 2011 2012 2013 2014

83,3%

TEU





Adopted import targets





• Implementation of business rules

• Offshoring and outsourcing


Advanced import targets





New targets

• Lean communication (interfaces)

• Real time monitoring

• Implementation of business rules

• Offshoring and outsourcing


Advanced import targets


Stakeholder

Implementation of new

structures and

processes

Developing a strategy

IT implementation

Reorganization

Strategy meeting

Analysis and

optimization

Initiation

Monitoring

Analysis and optimization

of existing structures and

processes

Definition and

implementation of all

functional requirements

Implemenation of a

standardized KPI monitoring

Roadmap Initiation

Communication with

all stakeholders


Stakeholder


structures and

processes


IT implementation

Reorganization

Strategy meeting

Analysis and

optimization

Initiation

Monitoring



processes

Definition and



Implemenation of a


Roadmap



processes

Initiation

Communication with

all stakeholders


Stakeholder


structures and

processes


IT implementation

Reorganization

Strategy meeting

Analysis and

optimization

Initiation

Monitoring



processes

Definition and



Implemenation of a


Roadmap



processes

Strategy meeting

Developing of process

strategies

Initiation

Communication with

all stakeholders


Stakeholder


structures and

processes


IT implementation

Reorganization

Strategy meeting

Analysis and

optimization

Initiation

Monitoring



processes

Definition and



Implemenation of a


Roadmap



processes

Strategy meeting


strategies

Reorganization


structures and processes

Initiation

Communication with

all stakeholders


Stakeholder


structures and

processes


IT implementation

Reorganization

Strategy meeting

Analysis and

optimization

Initiation

Monitoring



processes

Definition and



Implemenation of a


Roadmap



processes

Strategy meeting


strategies

Reorganization



IT implementation

Definition and implementation

of all process & functional requirements

Initiation

Communication with

all stakeholders


Stakeholder


structures and

processes


IT implementation

Reorganization

Strategy meeting

Analysis and

optimization

Initiation

Monitoring



processes

Definition and



Implemenation of a


Roadmap



processes

Strategy meeting


strategies

Reorganization



IT implementation

Definition and implementation

of all process & functional requirements

Monitoring

Implementation of a


Initiation

Communication with

all stakeholders


KN Excellence – Program Organization

Stakeholder

Department manager

Team leader

Employees

Works council

/ Trade Unions

Internal management

consultants


First management level

„What if“?

Steering committee

„How“ and „When“?

Steering board

„What“?

KN Excellence – Program Organization

Stakeholder

Department manager

Team leader

Employees

Works council

/ Trade Unions

Internal management

consultants

User committees

„What if“?

Product 1

Product 2

Product 3


• Project plan

• Feedback events

• Pulse checks • Handouts

Integration of Change Management

Based on: Kotter, Cohen, Doppler,

Vahs, Weiand, etc.


KN Excellence Monitoring & Reporting


Po

rt o

ffic

e

Inla

nd

off

ice

Invoicing / FSL Documentation Customer

Service Operations

Operational Set-Up Sea Logistics Export


Export KPIs

sender recipient

role interface role interface

main process

Invoicing /

FSL Documentation

Customer

Service Operations

output input

• Order status and production quality (customer view)

• Gateways and end-to-end process (process view)

• Department and business unit (organizational view)

• Products and volumes (business view)


Performance Indicators


Conclusion


Risks and Measures

Risks Measures

• Missing identification

• Fear, uncertainty, work overload etc.

• Uncertainty about vision and strategic

goals – „suspected evil“

• Lack of transparency during project

execution

• Management & leadership focus

• Information events, Change

Management seminar

• Employee dialog

• Transparency: Job, role &

interface descriptions


Continuous

Improvement Process

Change Management

Employee Dialog

Presentation Skills

Promotion of Strategy

Compass

Basics of Organizational

Development

Leadership

Conflict Management

Key Challenge – Staff Development


Key Benefits

• Increased quality delivered to customers

• Efficient communication and collaboration

• Transparency of processes

• Business driven IT solutions (not the other way around)

• Customer-specific business rules

• Role concept – 8 standardized roles


Outlook

KN Excellence

Transfer „KN Excellence“ from Germany to holding company

• Business rules

• Intra-company Process Management

• Creation of process teams globally

National Sea Logistics Strategy, Processes & Systems .

What questions do you have

National Sea Logistics Strategy, Processes & Systems .

Thank you for your attention.

Contact: [email protected]

kn excellence process driven freight · pdf filekn excellence – process driven freight...

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