KN Excellence – Process Driven Freight Forwarding Matthias Knicky, VP, Strategy, Processes & Systems Sea Logistics Las Vegas, 5th November 2015 National Sea Logistics Strategy, Processes & Systems
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
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Service Portfolio – “Strategy, Processes & Systems”
Strategy Management
Change Management
Organization Management
Requirements Engineering
National Sea Logistics Strategy, Processes & Systems
Process Management
Training & Support
Customer Integration Management
Project Management
p. 3
Kuehne + Nagel Sea Logistics
National Sea Logistics Strategy, Processes & Systems
Kuehne + Nagel Group Market position 2014
Contract Logistics
Airfreight Top 2 Global
Top 2 Global
Sea Freight
Overland
Top 1 Global
Top 3 in Europe
3.8 million TEU
1.19 million tons airfreight
National Sea Logistics Strategy, Processes & Systems
22 million overland transports
Integrated Logistics Top 1 Global
8.7 million m2 storage area
More than 650 supply chain specialists
p. 5
Kuehne + Nagel Germany
Locations
More than 100
Staff
More than 13.000
Products und Activities • Sea freight and airfreight • Customs clearance • Contract logistics • Distribution • Europe-wide truck, rail and inland water transportation • Information Technology
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Kuehne + Nagel Germany Sea Logistics Facts & Figures 2014
• •
FCL: KN Germany 700.000 TEU LCL: KN Germany 385.000 CBM
•
Sea Logistics staff KN Germany: 910
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The Beginning of KN Excellence
National Sea Logistics Strategy, Processes & Systems
Initial Situation - External Factors
Demand for Green Solutions Accelerated business environment
Work-life balance
Skill shortage Demographic change National Sea Logistics Strategy, Processes & Systems
Rising customer requirements
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Initial Situation - Internal Factors
Productivity targets Collaboration throughout the network
Substantial growth
Transparency requirements
Increasing cost pressure
Quality requirements National Sea Logistics Strategy, Processes & Systems
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What would you do?
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Motto „Structure follows process and process follows strategy.“
Structure
Strategy
Process Alfred Chandler (1918-2007)
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Import
Timeline of KN Excellence
Consulting project Deloitte Strategy workshop Reorganization Import Bremen
2002
2003
2004
…
2006
…
National Sea Logistics Strategy, Processes & Systems
2009
2010
2011
2012
2013
2014
2015
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Timeline of KN Excellence
Import
Go-live Bremen FCL Go-live Hamburg FCL 2007 & LCL master file 2008 Consulting project Deloitte
Go-live LCL single file
Strategy workshop Reorganization Import Hamburg
Reorganization Import Bremen
2002
2003
2004
…
2006
…
National Sea Logistics Strategy, Processes & Systems
2009
2010
2011
2012
2013
2014
2015
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Timeline of KN Excellence
Import
Go-live Bremen FCL Go-live Hamburg FCL 2007 & LCL master file 2008 Consulting project Deloitte
Go-live LCL single file
Strategy workshop Reorganization Import Hamburg
Reorganization Import Bremen
2002
2003
Operating status Import
2004
…
2006
…
CIP and service
2009
2010
2011
2012
2013
2014
2015
Export
Kickoff KN Excellence analysis and optimization phase
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Timeline of KN Excellence
Import
Go-live Bremen FCL Go-live Hamburg FCL 2007 & LCL master file 2008 Consulting project Deloitte
Go-live LCL single file
Strategy workshop Reorganization Import Hamburg
Reorganization Import Bremen
2002
2003
Operating status Import
2004
…
2006
…
CIP and service
2009
Export
Kickoff KN Excellence analysis and optimization phase
2010
2011
Reorganization Export Bre & Ham
2012
2013
2014
2015
CIP
Go-live LCL single file Strategy workshop KNDE Sea Logistics Kickoff implementation phase 1 Go-live LCL master file
National Sea Logistics Strategy, Processes & Systems
Reorganization II Reorganization I documentation & invoicing Kickoff implementation phase 2
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KN Excellence – Sea Logistics Germany Import
National Sea Logistics Strategy, Processes & Systems
Project Drivers Import Germany False effect
1.018
1.000 TEU 1.000 TEU 793
838
672
3.373
552 2.827
2.807
2.332 2.198 Units FTE
1998
1999
National Sea Logistics Strategy, Processes & Systems
2000
2001
2002
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Strategic Program Goals • 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
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Forwarding „Old School“ – Until 2004 Import operations
Activity 1 ...........................................................................................................…………………….............. Activity 400
Zodiak
Online FAQ File File
e-File
…
Business Profile
File
File File
National Sea Logistics Strategy, Processes & Systems
File
CIEL File
File
ACON
…
File
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Forwarding Today Customer Service Work Preparation
Invoicing Operations
Activity 1 ....
… Activity 320
KN Workplace
Online FAQ
Business Profile
e-File
National Sea Logistics Strategy, Processes & Systems
Zodiak
CIEL
ACON p. 21
KN Excellence – Sea Logistics Germany Export
National Sea Logistics Strategy, Processes & Systems
Project Drivers Export Germany
TEU
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Strategic Program Goals • Defined processes, roles and responsibilities
• Productivity increase
National Sea Logistics Strategy, Processes & Systems
Adopted import targets
p. 24
Strategic Program Goals • Defined processes, roles and responsibilities
• Productivity increase
Adopted import targets
• Implementation of business rules Advanced import targets
• Offshoring and outsourcing
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Strategic Program Goals • Defined processes, roles and responsibilities
• Productivity increase
Adopted import targets
• Implementation of business rules Advanced import targets
• Offshoring and outsourcing
• Lean communication (interfaces) • Real time monitoring
National Sea Logistics Strategy, Processes & Systems
New targets
p. 26
Roadmap Initiation Communication with all stakeholders
National Sea Logistics Strategy, Processes & Systems
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Roadmap Initiation Communication with all stakeholders
Analysis and optimization of existing structures and processes
National Sea Logistics Strategy, Processes & Systems
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Roadmap Initiation Communication with all stakeholders
Strategy meeting Developing of process strategies
Analysis and optimization of existing structures and processes
National Sea Logistics Strategy, Processes & Systems
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Roadmap Initiation Communication with all stakeholders
Strategy meeting Developing of process strategies
Analysis and optimization of existing structures and processes
Reorganization Implementation of new structures and processes
National Sea Logistics Strategy, Processes & Systems
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Roadmap Initiation Communication with all stakeholders
Strategy meeting Developing of process strategies
IT implementation Definition and implementation of all process & functional requirements
Analysis and optimization of existing structures and processes
Reorganization Implementation of new structures and processes
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Roadmap Initiation Communication with all stakeholders
Strategy meeting Developing of process strategies
IT implementation Definition and implementation of all process & functional requirements
Analysis and optimization of existing structures and processes
Reorganization Implementation of new structures and processes
Monitoring Implementation of a standardized KPI monitoring
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KN Excellence – Program Organization Department manager Team leader Employees
Stakeholder
Works council / Trade Unions Internal management consultants
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KN Excellence – Program Organization Department manager
Steering board „What“?
Team leader Stakeholder
Employees
Steering committee „How“ and „When“?
Works council / Trade Unions Internal management consultants
Product 1
First management level
User committees
„What if“?
„What if“?
Product 2
Product 3
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Integration of Change Management • Project plan
• Handouts
• Pulse checks
• Feedback events
Based on: Kotter, Cohen, Doppler, Vahs, Weiand, etc.
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KN Excellence Monitoring & Reporting
National Sea Logistics Strategy, Processes & Systems
Operational Set-Up Sea Logistics Export Operations
Documentation
Invoicing / FSL
Inland office
Port office
Customer Service
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Export KPIs input role interface
main process role interface
Customer Service
Operations
sender
output
Documentation
Invoicing / FSL
recipient
• 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) National Sea Logistics Strategy, Processes & Systems
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Performance Indicators
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Conclusion
National Sea Logistics Strategy, Processes & Systems
Risks and Measures
Risks
Measures
• Missing identification
• Management & leadership focus
• Fear, uncertainty, work overload etc.
• Information events, Change Management seminar
• Uncertainty about vision and strategic goals – „suspected evil“ • Lack of transparency during project execution National Sea Logistics Strategy, Processes & Systems
• Employee dialog • Transparency: Job, role & interface descriptions p. 41
Key Challenge – Staff Development Promotion of Strategy Compass Employee Dialog
Conflict Management
Presentation Skills
Change Management
Leadership
Basics of Organizational Development Continuous Improvement Process
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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
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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
p. 44
What questions do you have
.
National Sea Logistics Strategy, Processes & Systems
Thank you for your attention. Contact:
[email protected] .
National Sea Logistics Strategy, Processes & Systems
