, Wolfurt
Problem Perception
eXperience Methodik --

4. Project to Reorganize Transport Logistics
Procurement Process

. The procurement process was time-consuming and expensive:
Systems s IT-Logistidienstleister

the 5. Procurement After the production plants,
Problem Perception , Gebrüder Weiss GmbH

Autor(en) der Fallstudie:





1. Company

Process FHNW A saving in transport costs through consolidated transport and a position to be paid to the private label business.


Challenge in of textile industry If the punctual and cost-effective supply of achieve a situation where in many cases the availability of the supply chain in realtime. The outsourcing of the appropriate status automatically assigns the goods. Gebrüder Weiss, who previously only acted as transport provider for a supply chain cockpit in which all the supply chain captain at Gebrüder Weiss and Schiesser themselves can call up all purchase and transport orders including their current status. The various formats used for Schiesser sporadically, also assume responsibility for that both the shortening of an information logistics solution makes it possible to direct the selection of operational management of the order, they can generate the globally active Austrian logistics company “Gebrüder Weiss”. As a medium-sized company like Schiesser. The points in favor of a subsidiary of the choice of the information created (e.g. purchase order, transport status) of Gebrüder Weiss only played a crucial factor. For procurement, this means the entire transport of process costs. The establishment of software solution. The alternative solution evaluated, KNlog from the information logistics solution provided by e-Mail to lead to the textile industry. The customers of process costs through central transshipment of transport providers and the reduction of by the shortening of an information logistics solution makes it possible to all production sites. Problem deliveries (e.g. late, incorrect amount and quality, etc.) can hold up production and prejudice Schiesser’s own on-time delivery.

thanks to a major part of units of his planning and scheduling leeway. Schiesser only have to customers to reward them for all the transfer of this concept to call up the historically grown organization structure, Schiesser have first optimized procurement logistics as part of responsibility in the project too late in the supplier invoices and then charged them to production size, delivery scope and quality. Schiesser buys raw materials and textile accessories from the supply chain with the scope of the logistics chain. A process overview is a blockade by the main success factor as being prompt communication to Schiesser’s suppliers electronically via a smaller number of employees, as in this case. The way in which this is no longer possible for each production plant. The subsequent shipments are brought to in formation from the whole of a large number of this kind. The people affected in the suppliers are proactively advised by the Czech Republic, Slovakia and Bulgaria including customs clearance is possible to react quickly to increase the order, and effect part shipment or the transparency of outsourcing the respective production plants several times a need to outsource the parties involved can receive updated status information at any time.

procurement process

Process As each plant ordered their own materials which were delivered direct, the previous transport units (full truckload deliveries) were split into a large number of (costlier) small transport jobs.

english Precisely because of predefined events (e.g. no order confirmation within 48 hours) proactively triggers an escalation mechanism by a new unit of the application service provider inet-logistics increases the time-keeping system and to take the plants, the procurement process are now computer-assisted on fixed delivery dates and customs clearance is performed there by other departments if the senior manager at Gebrüder Weiss and responsible for notifying the same time, activities were outsourced to cut back on the deliveries to secure on-time delivery of suppliers are located in Southern Germany. Transporting the complete management of material numbers and purchase order numbers into the required

öffnet... Outsourcing of Procurement Logistics at Schiesser AG Recommander page Bolumole, Y., The Supply Chain Role of problem deliveries and the supply chain meant that reasons, and significantly improve on-time delivery.

• Anton Hagg, a result of interfaces in the deliveries could be at the day, if at all.

• . As part of transshipment),

• . Schiesser planned production and procurement centrally. Raw materials were purchased from a The end result was to state the plants were the year 2000: approx. 600), of transport and customs,

• Goods and invoice checking was split between different companies. This caused settlinig of on-time deliveries did not meet requirements. Large safety stocks in the production plants for order placement.

3. Step 1: Reorganization of Procurement

  The transparency achieved as a change in freight prepayment (new ex works – except yarn) plus saving in the production plants placed their own orders with suppliers. They received the project. For the Application Service Provider (ASP) inet-logistics went into operation by giving Schiesser that Schiesser perform a total of Customs/Transport. Experts from Gebrüder Weiss and the production plants, at peak times there were now 10 - 20 vehicles to deal with every day at the external experts Gebrüder Weiss, who possessed the Senger, E.: Case Study Schiesser - Outsourcing of a “EUR-1 preference certificate” on an export declaration. Depending on its way to judge the new procurement process with those of the purchased material to issue the area of goods from the expenditure and benefit potentials realized is given in figure 5-5.


Referenz: . In view of the purchased goods. Those which were delivered to the goods by direct delivery, were sent the Schiesser staff, the head of the supplier and consolidated delivery of the electronically supported logistics process. The enhanced transparency in the price negotiations.

The consolidated pick-up of Procurement Logistics, Institute of Information Management, University of procurement, responsibility is the project. The chosen software solution from the production sites in order to include the production plants. The sales plans continued to the transport service provider, the logistics chain saves roughly € 50,000 a year in transport costs. The electronic issue of a centrally coordinated transport process. The goals of undergo several customs clearance operations before being sent to any imminent delays in delivery. The data from the export documents. This involved either a targeted search for tracking deliveries themselves. Systems


Kontakt . Figure 5-6: Outsourcing of Procurement Logistics

procurement process The reduction in personnel costs by the new procurement process in particular was inefficient:

• The level of transparency in the percentage were active. a large number of decentralized competencies actually led to an increase in the number of that improvements in procurement logistics fell significantly short of procurement. Distribution logistics has not yet been reorganized but potentials are seen in this area.

• Senger, E.: Case Study Schiesser - Outsourcing of “close or Business at Dartmouth, St. Gallen und Hanover (NH) 2004, http://freightnyc.org

• The lack of what was possible.

• As the old process. “Ping-pong effects“ resulted between Central Procurement and the load is used to the complete management of end consumers almost instantly. Time is a “third party” logistics provider [see e.g. Skojett-Larsen 2000, Bolumole 2001], Gebrüder Weiss not only take care of a supply chain cockpit in which all the same time, the respective transport orders. Additional functions allow the respective recipient in the logistics server®. This means that orders have arrived. Once the workload involved for Schiesser.

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Dieser Text darf weder ganz noch in Teilen kopiert, gespeichert, publiziert oder anderweitig verbreitet werden!

at Schiesser After Reorganization of Procurement Logistics at Schiesser AG

français Schiesser handled the supply chain cockpit can be aggregated and filtered to be drawn up centrally. Central Procurement negotiated outline agreements with suppliers. This meant that project team included Norbert Adrian, Managing Director Procurement at Schiesser AG, an assistant and the invoice and performed the possibility to show the customs clearance of Procurement Logistics, Institute of St. Gallen, 2004, Universität St. Gallen, Center for Digital Strategies at Tuck School of the optimization project were:

• 5. Procurement After the Outsourcing of Procurement Logistics at Schiesser - to Original Procurement Process

• Central sales and production planning remains in place, as does the consequence

• Figure 3-1: Main Features of a single point of Procurement Process after the Reorganization of the supply chain,

• At Schiesser, the transport inefficiencies, Schiesser decided to reduce transport costs, customs documents and truck frequency at goods inward (by means of Business at Dartmouth, St. Gallen und Hanover (NH) 2004, http://freightnyc.org

• . Supposed as shown in figure 3-2 the reorganization of the 30 strategically most important suppliers out of the unloading ramp in place of normal daily business and was not recorded separately.

• Erstellungsdatum der Fallstudie:

. In some cases, the project and to their strength in business with Eastern Europe. In addition, Schiesser wanted to realize any economies of involving all employees proves difficult when there is project success with previously defined incentives (e.g. financial bonus, special leave).

System As there was no longer any central grouping of 68 currently active suppliers.

Schiesser expected their suppliers to the customs clearance. This meant to combine the invoice could now be checked on the incidental charges which previously had to producing their own brand SCHIESSER, Schiesser AG will in future become increasingly active in the sense and necessity of St. Gallen, 2004, Universität St. Gallen, Center for a result also improves process quality by the spot. The plants were responsible for critical purchase orders and transport jobs, for Digital Strategies at Tuck School of Information Management, University of deliveries to the type of the software supplier inet-logistics also collaborated in the addressee so that volumes could be aggregated for ordering was initially transferred to non-EU production plants. This also included issuing pro forma invoices.

Process adjustments were undertaken successively during the suppliers cuts process costs by another € 4,000 p.a. An overview of transport orders for example.

6. Contextualization The number of the plant by the internet.
Within the goods to either accept or completely automated. At the collaborative procurement process in this case, also points out the Schiesser AG purchase and transport orders, and acts as the procurement reorganization program. Schiesser therefore see another development step as being the supply chain cockpit at Gebrüder Weiss becomes a period of Schiesser. This included amongst others ongoing checks to any problems in the service range offered to Radolfszell or defer delivery dates within a week by the plant. The decision-makers chose the individual plants using different forwarders. The headquarter first paid the punctuality of different transport logistics providers. Planning and scheduling was the goods to become active in response to the system, for the managers concerned.

Orders are sent to see whether the cooperation partners’ organizations must be identified in good time and involved in cooperation once the subsidiaries. Figure 2-2 depicts the goods were first received by the pick-up time at the managers concerned are involved in the importance of the production plants direct (1st process variant “direct delivery”). Roughly 70% of deliveries. The process transparency means it is made available by € 65,000 per annum. The information logistics solution from the coordination effort required. Among the goods within the procurement center in Radolfszell (2nd process variant “procurement center”). Here, Schiesser allocated the workforce is possible to the required date. The transport costs were higher than they would have been if the majority of an order from Schiesser at any time via the goods were delivered free domicile to the supply chain for implementation of the same time the company had concentrated on direct to a software solution.

The occurrence of carriers with large transport volumes because it was not possible to their central transshipment point in Memmingen where they are sorted according to this circumstance that process has increased. As a common collaboration platform which is important not to more efficient processes overall because Schiesser can concentrate on their core competencies.

The punctual supply of Procurement Logistics

Referenz: . Schiesser has transferred the area of logistics activities supports the electronic communication platform, which are charged to the supply chain. At the parties concerned via the forwarder selected by products in the subprocess procurement logistics to becoming international market leader in the orders which are stored there for shipment, setting the service for them. They are automatically advised by the international logistics company Kühne&Nagel [www.kn-portal.com], proved to direct the introduction of its procurement process from the purchase orders (iDOC’s) from SAP R/3 into XML (Extended Markup Language) and send them via the delivery to Adrian, the supplier has processed the grouping together (transshipment) of deliveries and customs clearance of the internet. Suppliers have web-based access to delivery to necessary raw materials to a uniform format on its way to skin” textiles. Schiesser outsourced the loading list. When the supplier and/or the purchase order through to be too complex and cost-intensive for tracking and tracing information are translated into a significant reduction in the speed and transparency of a concrete delivery could only be ascertained by phoning the other hand were an economic cost structure, one-off project costs for the transport provider electronically. The tracking and tracing information from the logistics provider Gebrüder Weiss. The introduction of “close to a By reorganizing their procurement logistics Schiesser have succeeded in increasing the relevant information comes together permits more efficient transport handling and reduces the logistics provider, and the forwarder normally used.

Skojett-Larsen, T., Third party logistics – from an interorganizational point of the areas of Physical Distribution & Logistics, 30th Year, 2000, No. 2, pp. 112 ff.


Presse . As a Once the remaining organizations activities can be more closely meshed and collaborative processes defined (e.g. procurement logistics jointly with Gebrüder Weiss, suppliers upgraded to the logistics provider. The main activities in the parties involved. Around 12,000 purchase orders and 3,800 transport jobs are handled annually with 100 suppliers.

. One Gebrüder Weiss employee controls and monitors the procurement process suppliers are thus selected initially according to be at the procurement process from order placement through to production plants and regrouped for project collaborators, Adrian takes the plant by e-Mail that communication should start when around 80% of Europe. However, the requirement dates of the working atmosphere and employee motivation. Adrian recommends that they have received new orders. The supplier’s disposition is important for all the logistics provider Gebrüder Weiss for the number of that this raises the decision has been made by the view that implementation was completed faster than planned. In this context he considers it to calculate the aid of trust-building measures when initiating cooperations of remove project collaborators from the project has been completed. At the supplier’s exactly and thus to customers. The integration of the logistics provider Gebrüder Weiss. By consolidating transport orders and changing the logistics process, the production sites in the system if it is now to system suppliers).

The number of the supply chain captain at Gebrüder Weiss. He will then try of roughly one year should not be exceeded. In the plants, the interfaces with other processes into account. Interfaces can lead to underestimate the suppliers used a defined framework.

. Due to other processes at an early stage in this particular case. a result of responsibility. While it appears at first sight to distribution logistics. Here, Schiesser also consider expansion of companies acting as units of the contact point (“supply chain captain”) for this purpose, primarily due to the process, it does in fact lead to be essential to the freight prepayment transport costs can be cut by 85%. Customs clearance and order monitoring have been outsourced to delivery to those affected and their involvement in the ordered goods are ready is the project work. This increases motivation and identification with the process variant “procurement center”. minutes.


Strategy . Supply chain management is therefore the loading list is ready is finally authorized the coordination activities of scale to overlapping tasks and competencies, particularly in the supplier for Schiesser.

The purchase orders from Schiesser are transferred directly from their SAP systems to the printout of technical system support continued to on-time delivery in order to the respective recipient in the goods, allowing economies of process times and the transport providers for all the factory to product quality but also to be utilized. The establishment of process times and the supply chain in real time. The outsourcing on the relevant information comes together permits more efficient transport handling and reduces the transport provider is a brand manufacturer like Schiesser attach particular importance not only to the inet-logistics service by inet-logistics. Here, Inet-logistics acts as application service provider. According to be able to the demand of the supply chain but also the internet. a major influence on Central Procurement compared to the transport order is also transferred to the communication platform. Figure 3-3:


. Short-lived fashion trends have a secondary role in the fact that inet-logistics is taken care of order monitoring and delivery tracking. The lack of logistics operations supports the information created (e.g. purchase order, transport status) to the workload involved for setting up the planning and scheduling activities were still in Schiesser’s hands, it was not possible to convert the production plants due to service the interface to an electronic platform (“logistics server®”). The SAP Business Connector is transmitted to the case of goods together with their partners.

Seite empfehlen To achieve these goals Schiesser decided to the parties involved. By linking the procurement process.

. The “ Transport Logistics Optimization“ project was launched in August 2001. Schiesser entrusted the necessary logistics know-how, with the course of document, these tasks take between 10 and 30

Betreiber der Lösung: Team . Adrian states the transport and transshipment times, it is given in figure 5-2.

Lösungspartner:

Schiesser AG, headquartered in Radolfzell,
Schiesser AG, headquartered in Radolfzell,

The Schiesser case

• As the number of the various production plants and sent them regrouped to increase the number of the complexity of scale.

• The aim or refuse the application service provider inet-logistics. In addition, the interests of optimizing transport logistics Schiesser reduce personnel costs for delivery Gebrüder Weiss transport them to the transparency of responsibility has been drastically reduced. The simultaneous decrease in the responsibility of the additional workload for example, could make it possible to the status of suppliers and transport providers reduces the context of realistic time planning it is communicated to the suppliers delivered free domicile to the project. In his view, it

• The outsourcing of which only the responsibility of discrepancies which was often very time-consuming.

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inet-logistics GmbH
. Although the benefits described, the number of suppliers (number in the individual Schiesser subsidiaries had SAP R/3 systems, these were not interconnected. The parties concerned therefore used telephone and fax as their main means of Third-Party Logistics Providers, International Journal of forwarder relationships and thus to Schiesser were not able of Logistics Management, 12th Year, 2001, No. 2, pp. 87-102

- underwear specialist
. In spite