venture - Wallenius Wilhelmsen Logistics
venture - Wallenius Wilhelmsen Logistics
venture - Wallenius Wilhelmsen Logistics
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<strong>venture</strong><br />
NEWSLETTER ISSUE 3 2006<br />
■ WALLENIUS WILHELMSEN LOGISTICS’ SOLUTION FOR CNH 2<br />
■ LOGISTICS CAPABILITIES OVERVIEW 3<br />
EDITORIAL<br />
The smartest<br />
route from<br />
factory to dealer<br />
WHEN WALLENIUS <strong>Wilhelmsen</strong> <strong>Logistics</strong><br />
and CNH, the highly successful<br />
manufacturer of agricultural and construction<br />
equipment, signed a three year<br />
logistics contract earlier this year it was<br />
symbolic in two ways.<br />
Firstly, the deal shows how much we<br />
value long-term customer relations – and<br />
how much our customers value us as<br />
long-term committed suppliers. The collaboration<br />
between our two companies<br />
dates back to the 1970’s.<br />
Secondly, the service package offered<br />
to CNH is an excellent example of<br />
how <strong>Wallenius</strong> <strong>Wilhelmsen</strong> <strong>Logistics</strong><br />
has widened its scope of services.<br />
Beyond just taking care of ocean shipments<br />
for CNH, we now provide advanced<br />
terminal services,and supply chain<br />
management services for the American<br />
market.<br />
The reason that we can now offer<br />
complete factory-to-dealer solutions is a<br />
result of the strategic acquisition of the<br />
former DAS over one year ago. The<br />
acquisition dramatically increased the<br />
scale and scope of our inland logistics<br />
offerings and brought with it an impressive<br />
human resource competence level.<br />
That’s something that not just CNH<br />
knows about-many of our customers in<br />
the Americas are showing growing<br />
interest in our capabilities across the<br />
finished vehicle supply chain. This<br />
newsletter includes an introduction of<br />
the capabilities we now offer in Region<br />
Americas. I hope it awakens many new<br />
ideas and opportunities.<br />
CHRIS CONNOR, HEAD OF REGION<br />
AMERICAS WALLENIUS<br />
WILHELMSEN LOGISTICS<br />
Early in 2006, CNH signed a<br />
three-year agreement with<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong><br />
<strong>Logistics</strong> for global roll-on/rolloff<br />
(RORO) shipments.<br />
CNH<br />
made<br />
logistics a<br />
competitive advantage<br />
<strong>Logistics</strong> is often the third<br />
largest cost for manufacturers.<br />
Randy Baker, Senior Vice<br />
President <strong>Logistics</strong> and Supply<br />
Chain, Case New Holland,<br />
explains how his company has<br />
achieved substantial success in<br />
tackling the issue over the past<br />
ten years.<br />
Delivering customers what<br />
they’ve waited for is a reality<br />
automakers have lived with<br />
for decades – and it’s one global<br />
heavy machinery manufacturer CNH<br />
has steadily forged into a core competitive<br />
advantage over the past 10 years.<br />
“The only major difference is those<br />
buying agricultural and construction<br />
equipment from CNH are making a substantial<br />
investment that will seriously<br />
impact the bottom line of their business,”<br />
says Randy Baker, Senior Vice President<br />
<strong>Logistics</strong> and Supply Chain, Case New<br />
Holland.<br />
“REGARDLESS OF whether they are a dealer<br />
or an end user, our customers want to<br />
ensure the machines they’ve ordered<br />
arrive on time and undamaged. This is<br />
especially important when it comes to<br />
agricultural machinery because of the<br />
Continues on next page
CNH MADE LOGISTICS A COMPETITIVE ADVANTAGE<br />
WHY IMPROVED LOGISTICS IS A<br />
COMPETITIVE ADVANTAGE FOR CNH<br />
1Regardless of whether the customer is<br />
a dealer or an end user, the purchase<br />
of a CNH product will seriously impact the<br />
bottom line of their business. Thus, they<br />
want to ensure the machines they’veordered<br />
arrive on time and undamaged.<br />
2Randy Baker notes logistics is often<br />
the third largest cost for companies<br />
like CNH and clearly it is an area where<br />
“we need to actively lower costs”.<br />
“Once, logistics was<br />
viewed simply as an<br />
expense, today it is a<br />
true competitive<br />
advantage!”<br />
RANDY BAKER, SENIOR VICE PRESIDENT LOGISTICS AND SUPPLY CHAIN, CASE NEW HOLLAND<br />
seasonal nature of the farming business,<br />
for example.”<br />
Delivering on that promise in today’s<br />
global marketplace places immense<br />
demands on the supply chain and logistics<br />
operations of a company such as CNH,<br />
which sells its Case and New Holland<br />
brands through a network of 10,800 dealers<br />
in 160 countries.<br />
RANDY NOTES LOGISTICS is often the third<br />
largest cost for many companies and<br />
clearly it is an area where “we need to<br />
actively lower costs”.<br />
“This is relatively new thinking because<br />
people didn’t watch such costs so closely<br />
before, but in today’s highly competitive<br />
environment logistics expenditure goes to<br />
the bottom line of the business,” he says.<br />
And adds: “Once, logistics was viewed<br />
simply as an expense, today it is a true<br />
competitive advantage!”<br />
EARLY IN 2006, CNH signed a three-year<br />
agreement with <strong>Wallenius</strong> <strong>Wilhelmsen</strong><br />
<strong>Logistics</strong> for global roll-on/roll-off<br />
(RORO) shipments linking around 100<br />
port connections on Europe-North America<br />
and South America-Japan-Oceania<br />
routes. Why was the deal struck?<br />
“At the end of the day, it’s about delivering<br />
on our promises to customers by providing<br />
superior service in terms of<br />
improved lead times and process controls,”<br />
says Randy.<br />
“Just like when someone waiting for a<br />
CNH sells its vehicles through a network of<br />
10,800 dealers in 160 countries.<br />
new car, our customers are on the phone<br />
asking where their ordered equipment is<br />
at any particular time and whether it’s<br />
going to be delivered on schedule, and in<br />
perfect shape. For us, the smart choice is<br />
to leverage the expertise of a global logistics<br />
company such as <strong>Wallenius</strong> <strong>Wilhelmsen</strong><br />
<strong>Logistics</strong>, with whom we’ve worked<br />
since the 1970s, who has intimate knowledge<br />
of ocean shipments, port operations<br />
and distribution management.”<br />
3At the end of the day, good or bad<br />
logistics impact on the customer's<br />
overall perception of CNH. “It’s about delivering<br />
on our promises to customers by<br />
providing superior service in terms of<br />
improved lead times and process controls,”<br />
says Randy.<br />
THE SOLUTION<br />
A SMOOTHER<br />
SUPPLY CHAIN<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> <strong>Logistics</strong> and CNH<br />
have been co-operating since the 1970s.<br />
What began as a pure ocean transportation<br />
agreement has expanded into a solution<br />
involving more and more of CNH’s supply<br />
chain and <strong>Wallenius</strong> <strong>Wilhelmsen</strong> <strong>Logistics</strong><br />
utilising four of its five main products.<br />
■ OCEAN TRANSPORTATION<br />
In March 2006, CNH and <strong>Wallenius</strong><br />
<strong>Wilhelmsen</strong> <strong>Logistics</strong> signed a three-year<br />
agreement with <strong>Wallenius</strong> <strong>Wilhelmsen</strong><br />
<strong>Logistics</strong> for global roll-on/roll-off<br />
(RORO) shipments. Services provided to<br />
CNH will link Europe-North America and<br />
South America-Japan-Oceania, including<br />
nearly 100 port connections.<br />
■ TERMINAL SERVICES<br />
In North America, the Mid-Atlantic Terminal<br />
in Baltimore plays a key role for both<br />
inbound and outbound CNH cargo shipments.<br />
Together with <strong>Wallenius</strong> <strong>Wilhelmsen</strong><br />
<strong>Logistics</strong>, the terminal has invested in<br />
a new operating system that identifies all<br />
cargo through radio frequency tags.<br />
“From a RORO perspective, it’s a unique<br />
system providing CNH and other<br />
customers much better visibility of where<br />
their cargo is in the supply chain”, says<br />
Flavio Batista, account manager for<br />
CNH’s US operations.<br />
■ TECHNICAL SERVICES<br />
When it comes to the port in Baltimore,<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> <strong>Logistics</strong> offers<br />
CNH a storage facility where 200 vehicles<br />
can be stored before inland distribution to<br />
dealers in the USA takes place.<br />
■ SUPPLY CHAIN MANAGEMENT<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> <strong>Logistics</strong> handles<br />
inbound supply chain management for<br />
CNH at 12 ports in the USA. Providing<br />
total visibility from factory to dealer, this<br />
assures CNH units smooth-working<br />
transport from the incoming vessel<br />
through to the dealer. The services include<br />
an electronic tendering process that assigns<br />
the right trucking company for inland<br />
distribution in each specific case.<br />
CONTACTS AT WALLENIUS<br />
WILHELMSEN LOGISTICS<br />
Flavio Batista, Account Manager<br />
for CNH in America.<br />
Phone: +1 201 638 0458<br />
flavio.batista@2wglobal.com<br />
Loic Minvielle, Corporate<br />
Account Manager, Global.<br />
Phone: +33 153 300 499<br />
loic.minvielle@2wglobal.com
For archive use<br />
LOGISTICS CAPABILITIES REGION AMERICAS<br />
A COMPLETE SUPPLY CHAIN<br />
<strong>Wallenius</strong> <strong>Wilhelmsen</strong> <strong>Logistics</strong> is actively strengthening its logistics<br />
network in Region Americas. Following last year's expansion of technical<br />
services in the region, vehicle manufacturers are now offered a complete<br />
supply chain for inbound and outbound cargo.<br />
Tacoma<br />
Oxnard/Port<br />
Hueneme,<br />
CA<br />
Vancouver, B.C.<br />
Wilmington/Los Angeles, CA<br />
Long Beach<br />
Houston<br />
Galveston<br />
Aguascalientes, MX<br />
Ocean transportation<br />
Ports Routes<br />
Terminal services<br />
WWL terminals<br />
Technical services<br />
WWL Technical Sites<br />
Inland distribution<br />
Truck / Rail<br />
OUTBOUND ROUTES:<br />
North America – Asia<br />
North America – Europe<br />
North America – Middle East<br />
North America – Oceania<br />
South America/North America<br />
■ NISSAN CONTRACT: Managing<br />
entire domestic outbound supply<br />
chain for the finished vehicles. That is<br />
from manufacturing plants in the US to<br />
dealerships within the US. Incorporating<br />
technical services and inland distribution.<br />
Lafayette, IN<br />
Smyrna, TN<br />
Canton, MS<br />
Civac, MX<br />
Altamira<br />
INBOUND ROUTES:<br />
Asia – North America<br />
Europe – North America<br />
Baltimore<br />
Newport<br />
News, VA<br />
Charleston<br />
Savannah<br />
Brunswick<br />
Jacksonville<br />
Tampa<br />
Manzanillo<br />
■ CNH: Management of the total supply<br />
chain for inbound finished commodities<br />
from Port of Discharge to the<br />
Dealers.<br />
Elisabeth, NJ<br />
Norfolk<br />
Cartagena<br />
New York<br />
Halifax<br />
Puerto<br />
Cabello<br />
Other ports/terminals<br />
in South America:<br />
• Santos<br />
• Rio Grande<br />
KEY SUPPLY CHAIN MANAGEMENT CONTRACTS IN THE AMERICAS:<br />
■ BMW: Part of the Global LLP<br />
Contract. Managing entire outbound<br />
supply chain for finished vehicles from<br />
the manufacturing plant at Spartanburg<br />
in the US to dealerships in<br />
Australia. Shipments via Savannah.