-1-BJS-4307-00236-04-02HenkelRolandBerger&Partners-InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Detroit–Düsseldorf–Frankfurt–Hamburg–Kiev–Lisbon–LondonMadrid–Milan–Moscow–Munich–NewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–Warsaw–ZurichImprovingEfficiencyofHenkelTianjinLtd.Logistics–Workshop–HenkelChinaDetergentBeijing,November13,2000-2-BJS-4307-00236-04-02HenkelThisdocumentwascreatedfortheexclusiveuseofourclients.Itisnotcompleteunlesssupportedbytheunderlyingdetailedanalysesandoralpresentation.ItmustnotbepassedontothirdpartiesexceptwiththeexplicitpriorconsentofRolandBerger&Partners.ContentPageA.InternalanalysisshowscostsavingpotentialofuptoRMB1,4Mio3B.CurrentlogisticsystemhastobemodifiedtosupportfuturedevelopmentofHenkeldetergentwithhigherservicelevel17C.IncreasedinvestmentinRDCmodelwillhelpHenkelstrengthenitslogisticpowerandraisecustomerservice34D.CaseStudies48-3-BJS-4307-00236-04-02HenkelA.InternalanalysisshowscostsavingpotentialofuptoRMB1,4Mio-4-BJS-4307-00236-04-02HenkelCostreductionpotentialincurrentlogisticsystemoffinishedgoodsinTJHenkelamountstoaroundRMB1,4Miop.a.CostreductionpotentialfromtransportationisaboutRMB310’Costsavingsadministration/staffreacharoundRMB190’Reductionofwarehousespaceduetooperationacc.tosafetylevelsisaroundRMB440’ThesteepinvoicecurvehasnoimpactonlogisticcostHenkelneedstoincreasethetransparencyandaccuracyofinformationinlogisticsystemInterestssavingsfromreleasingcapitalofredundantstockwillbeRMB480’-5-BJS-4307-00236-04-02HenkelNearlynintypercentofthelogisticcostofFGgoestotransportationSource:HenkelChinaLogisticcoststructureofTJHenkel[RMB,‘000peryear]TotallogisticcostTransportationcostlogisticdept.Transportationsupportsalesdept.Truckscostsalesdept.StaffandadministrationWarehouse243961543230602448265280463%13%10%-6-BJS-4307-00236-04-02HenkelCostreductionoftransportationinsidethelogisticdepartmentaccountsforuptoRMB307’p.a.Costreductionoftransportationinlogisticdepartment[RMB‘000peryear]ThesourceofcostcutsSource:HenkelChina15,43215,125CurrentsituationPossiblesituation-2%-2%•AsavingsofRMB120,000p.a.*willoccuriftheshorthaultransportationtothecommercialwarehouseiseliminatedandthepreorder“problemissolved”•AsavingofaboutRMB187,000p.a.**willbegeneratedifreturnfreightareusedandtherateoflongdistancetransportationdropsfromRMB0.5/km/ttoRMB0.4/km/tonlyinYunnan*RMB1.55/km/tx10kmx650t(stocktransferred/month)x12=RMB120900**RMB78000(longdistancetrans.Cost)x0.2x12=RMB187200-7-BJS-4307-00236-04-02HenkelWidespreaduseofreturnfreightandstableshipmentlimitcostreductionPricecutinlongdistanceroaddeliveryishardasreturnfreightarewidelyusedActualdailydeliverycurveisrelativelyflat,soitisimpossibletonegotiatelowerprices,withintermediariesHardtoreduceshortdistancetransportationcostbyselfdeliveryinTHDRailwayrateisnotnegotiableandrisingslightlyBack-up-8-BJS-4307-00236-04-02HenkelThewholelogisticcostofFGwillbe0.8%lowerbyreducingthecostofFGstaffandadministration*TheproductivityoflogisticstaffforFGSavingsfromincreasedproductivityperstaffperyear[RMB,’000]Source:HenkelChina9023526976THDGHDXHDSHD*:AccordingtoorganizationtillOctober,thereare49FGstaffinTJHenke**RMB1200(salarywithoutinsurance)x13x12=RMB187200peryear***:Accordingtothecostofthefirstninemonthsthisyear...
