Freelog presentation

Introducing Freelog consulting

and our expertise in industry

January, 2010

© 2010 FREELOG Consulting. Confidential and Proprietary Information 2

Agenda

Freelog presentation & expertise

Main references in Supply Chain Management & operational excellence

Your contacts


Freelog is a consulting company, specialized in industrial performance improvement, especially in the domains of product designing, their industrialization and Supply Chain.

As of January 2010, the team of Freelog includes more than 10 consultants issued from operations (Air France, Danone, DHL, IBM…) and trained with best consulting methodologies (BearingPoint, Gemini Consulting, McKinsey).

We have acquired through both our project experience and the network we have developed, a real capacity to work internationally, in Europe, America and in Asia

Cost reduction and/or service level improvement by:

Process re-engineering Purchasing enhancement Operation steering

Definition of strategic priorities and deployment plan

Service level recovery

Our service offering

Operational skills of our consultants

Innovative methods and simple tools, developed through a customized approach

A solid commitment to our clients over the long term based on result achievements

What makes us different

Freelog helps decision-makers carry out projects to ensure sustainable competitive advantage with a high operational focus

© 2010 FREELOG Consulting. Confidential and Proprietary Information

Our consultants have a real capacity to work internationally

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Brazil:-Arcelor Mittal-Eurocopter-Embraer

Brazil:-Arcelor Mittal-Eurocopter-Embraer

US & Canada-Essilor-Thales-Eurocopter

US & Canada-Essilor-Thales-Eurocopter

Mexico-EurocopterMexico-Eurocopter

Singapor:-Eurocopter-Thales-Safran-Essilor

Singapor:-Eurocopter-Thales-Safran-Essilor

China:

-DMG

China:

-DMG

Spain:

-Airbus Military

Spain:

-Airbus Military

Hungary:-Carrier-Xerox

Hungary:-Carrier-Xerox


Freelog is acting on all steering levels of the Supply Chain

Operational

Tactical

Strategy

• Complex logistic network redesign• Outsourcing strategy definition (Transport or LSP providers) and

implementation follow up• Customers service segmentation and offer definition • Storage strategy• ./.

• Demand planning, forecast and procurement process definition • Stock optimization (spare parts sector)• Services purchasing rationalization• Transport plan optimization • ./.

• Warehouse processes optimization (Activity Base Costing)• Transport management and freight cost audit• TMS & WMS solution implementation• Packaging management• Recovery operations• ./.

ST

EE

RIN

G L

EV

EL

SProject types :


Freelog consutling helps you to identify and to enhance leverages of your performance

Service level improvement

Operational excellence

enhancement

Operational costs reduction

Stock reduction

Logistics cycle times reduction

Collaborative process with customer or supplier

Dashboard setting up

Transport network organization

Transport optimization

Platform & warehouse rationalization

Storage strategy

Planning methods

Supply management

Stock balancing

Industrial performance (Lean manufacturing best practices)

Purchases, sourcing, supplier development

Design & redesign to cost

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The client is at the heart of our business model

A capacity to commit with the operational management until results are obtained

A pragmatic professional model carried out by our consultants, the

guarantee of the quality and homogeneity of our interventions

Strong assets to lead projects to the target:• Pragmatic and innovative

methodologies• High Knowledge of Supply Chain

organizations• Close customer support in recovery

phases

A capacity for accompanying our clients in all of their

competitiveness issues by combining functional methodologies

and sector specific know-how

A team working closely with the customer, and aligned around common professional values


Sommaire


Main references in Supply Chain Management & Operational excellence

Your contacts


Spare storage strategy and stock reduction plan

Spares stock rationalization and definitions of collection to reach a service level at 92% (Stock Collection Adequacy)

Stock reduction achievements: 29% for Brazil 27% for Mexico 31% for Canada

Rationalize spares stocks and define the most adapted collections regarding Eurocopter global policy and fleets concerned

Determine an adapted Stock reduction action plan without any impacts on the service level

AchievementsMain goals

Stock optimization

9


European transport call for tender assistance for supply flows

Contract finalization with the transport provider selected

Purchase cost reduction between 10% and 15% depending on the selected countries

Global cost reduction at the truck level on the inbound transport scope



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Lean manufacturing program for an automotive supplier

Industrial cycle time reduced by 30% in 16 months

15% cost savings one year after the project’s start

A dynamic of improvement elaborated & Lean best practices appropriated

Develop the commitment of the whole manufacture into a lean approach (Value Stream Mapping approach)

Recover quickly service level and reduce industrial cycle times by 20%

Realize a sustainable productivity enhancement by 15% in a two years period


Lean Manufacturing

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Transition form homogeneous work stations to production lines


Rationalization and transfer of the spare activity

Resources reduction by 30% for a service level improvement by 10%

Layout optimization: Surface reduction by 40%

Service level keeping during the transition phase

Manage the transfer of a spare warehouse by rationalizing in advance stock and operations


Warehousing performance / Stock reduction

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Logistics service level recovery of the central warehouse

Receiving cycle times reduction by 30%

Planning collaborative process setting up with the replenishment process

Administrative flow processing within 24 hours (previously 3 days)

Cycle times reduction ( receiving process & put away process)

Identification of productivity enhancements for internal operations in the warehouse & Road map design


Warehousing performance

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Worldwide network design for Spares & Repairs

Quick savings about 8% on transport area without any organization changes

Potential savings on the Supply Chain organization estimated at 20% without any subsidiaries changes

Test different organization scenarios taking into account commercial offer and expected delays (TAT)

Identify & quantify performance improvement opportunities


Network design

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Supplying modes re-engineering & cost reduction

Definition of the supply policy regarding parts (VMI, call off, consignment, factory warehouse)

Stock reduction : - 55% Logistics costs : -10%

Reduce the stock turnover ratio by 50%

Rationalize logistics master plan (several extern storage points)

Improve the service level & Reduce the supply lead-times


Supply optimization / Stock redcuction

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Enhance industrial equipment availability in a manufacture

Productivity enhanced by 35% for the finishing process

Introduction to the Lean Manufacturing best practices

Enhance the productivity of the finishing treatment process in the manufacture

Identify with SMED tool, sources of waste and potential optimization

Propose logical & technical solutions to reach significant production cycle time reduction

Main AchievementsMain goals

Lean manufacturing

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Logistics service re engineering (warehousing, packing & transport)

25% cost reduction approved by controller on handling, packing & transport

Effectively achieved after one year implementation by customer

Eradicate offloading in logistics flows for receiving and shipment processes

Reduce human trips in the plant

Develop leaner process in order to reduce warehousing & handling costs while increasing service levels

Reduce packing cost.


Flow optimization / Lean warehousing

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Import cycle times optimization for Spare business from France to Brazil

Economics & logistics justification to settle a bounded warehouse in Brazil

Import cycle times optimization: Benefit of 80% for AOG Benefit of 60% for Rush Benefit of 44% for Routines

Reduce cycle times from « Ready to Ship » spare parts from France to the Brazilian subsidiary

Realize a large benchmarking regarding import practices in the Brazilian market, especially for AOG status


Logistics flow optimization

Cas 1 : Commande AOG Broker US ou EU

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Dédouanement + Livraison

1j2 jours courus

Cas 2 : Commande Broker US ou EU

RFQ Préparation Dédouanement LivraisonTransport1j 1j 4j 1j

7 jours courus

+

RFQ + Préparation + Transport

1j

18


Delays and transport costs reduction

European logistics hub setting up Transition from a « International

Express » transport mode to a « Freight forwarder » mode

Custom operations simplification (PDU)

Cost reduction & delay reduction to 48 hours

Reduce supplying transport cost from Asia to Europe

Reduce delays by offering a 48 hours service for majority of countries in Europe

Main AchievementsMain goals


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A worldwide food product warehousing performance program development

The program has been effectively launched

Countries are measured at 80% in the referential

Pilot countries have defined action plans

Cost reduction lead to a short term trend of 10% on the global expenses

Define the referential allowing for maturity evaluation and standard progress action implementation

• Through internal & external best practice definition

• Through mean allocation evaluation


Warehousing performance

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Stock reduction proccess setting up for dead stock

Validation of the potential stock reduction estimated ay 25 millions Euros

A dynamic, safe and operational process in order to reduce dead stock approved by the executive committee

Speed up & organize the process of decision concerning stock to scrap or to buy back

Validate the stock reduction process with executive committee (Financial stake estimated at 25 Millions Euros)

Main achievementsObjectives

Stock optimisation

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They also trusted us…

Defense & Aerospace

Process industries

Logistics providers

RetailAutomotive

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Sommaire


Main references in Supply Chain Management & Operational excellence

Your contacts


Some of your contacts

Jean François MICHEL Partner

Mobile + 33 6 20 02 30 97e-mail : [email protected]

Charly LIMOU Manager

Mobile + 33 6 63 75 03 41e-mail : [email protected]

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Jean-François Michel, founder & CEO of Freelog, has 10 years consulting experience in Supply Chain and logistics operations.

He was previously CEO of Europarts logistic service provider and business development manager for GEODIS.

He has designed supply chain & logistics strategy and organizations in complex environments for DCNS, Thales, Air France Industries, Thomson,…

Charly Limou, mechanical engineer, has 45years consulting experience in Supply Chain & Lean Manufacturing

He was previously consultant in BearingPoint (formerly Arthur Andersen) and mainly dealt with supply chain and manufacturing issues in Aerospace and process industries

He has led many projects abroad as Brazil, Mexico, China and Canada in aerospace environments


Freelog consultingResults oriented consultants

151 Bd Haussmann75008 PARIS

www.free-log.com

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