The Pooling
A tough equation to be solved...
Reduce
the Stock
Increase
service
level
Improve
delivery
reliability
Keep
Logistics
costs under
control
Reduce
carbon
footprint
History & Origins of Pooling Solution
Creation of a
Supply Chain Mgt
Expertise
>> Definition of high
value services
2001
Pooling Concept
& Solutions
presentation to
customers
June 2002
End of 2001
Pooling Conception
following requests from
customers & prospects
to massify their flows
July 2003
- Oct 2004
June 2003
Pooling becomes
real thanks to 2
pilote producers
Pilote
Implementation
+ VMI Dpt Creation
+ Set-up of Flows
Coordination Tools
+ Multiple contacts
with Retailers
Oct 2004
Start-up of 1st VMI
Pilote + Investment in
more powerful tools
2005
SITL Conference
Award for Innovation
2005 to date...
Development of new pools &
deployment of existing ones
2014
„Supply-Chain King” Award
for SPHINX Pool
Definition of Pooling in FM Logistic
Consolidation of producers logistics flows in order to increase delivery frequency & dropsize
towards retailers Distribution Centers
Producer B
Producer A
30 pallets
1 delivery every 5 days
26 + 7 pallets
1 delivery every 4 days
Retailer Distibution Center
14 pallets
1 delivery every 8 days
Requirements for Pooling set-up :
multi-producers platforms
Multi-producers Strategy
>> Pooling solution might be
implemented only with common
Inbound & Outbound points for
producers.
>> FM Logistic multi-producers platforms are essential assets and
lever of performance for Pooling implementation, thanks to
mutualisation & resources optimization under one single roof.
Flows Piloting
From easiest…
 Implementation of deliveries in combined loading in agreement with
retailers
• Agreement with each retailer on days & time of combined deliveries for all involved
•
producers in the same vehicles
Possibility for some retailers to manage group of suppliers and optimize their Inbound
Transport
…to most advanced solutions
 Mutualized Vendor Managed Inventory Process
• Mutualized VMI (FM Logistic) allowing a dynamic allocation of quantities proposed by
•
•
producer, depending on real needs (no fixed lot size)
Each producer gets access to its data (confidentiality management in the tool), manages
parametrization and remains responsible for orders proposal in regards to its own
conditions with the retailers
VMI Tools used : OCS & EWR MP
FM Logistic Role : Facilitator
Retailers
Help to define
& ensure the
respect of
management
rules
Create a
collaborative
dynamic
between
producers
Representative
of the pool in
front of
retailers
FM
Logistic
Secure the
efficiency of
current model
Imagine future
models
Producers
Retailers Expectations
: Answers from the Pooling
Flows massification is a collaborative approach between
producers supported by retailers :
Improve the on-shelf availability
 Improved reactivity thanks to increased frequency
 Securing transport thanks to flows balancing and vehicles optimization
 Piloting of the stock level by suppliers (VMI)
Improve the cashflow
 Stock reduction due to increased frequency
Reduce Carbon Footprint
 Through better vehicles optimization
ENVIRONMENT
A WIN-WIN SOLUTION
PRODUCER
RETAILER
Improvement of on-shelf availability
Increase transportation reliability
Decrease on stock level
Contribution to reduction of CO2 emissions
Global Supply Chain added-value creation
The POOLING
Feedback on the 5 existing Pools
Improvement of
Service Rate
Stocks reduction
in retailers DC
• Improved reactivity to demand thanks to increased
delivery frequency
• Thanks to decrease of delivered lotsize for each
involved producer
Transport
Optimisation
• Transport reliability increased
• Transport costs under control
Environment
• Decrease of carbon footprint
• Increase of vehicles filling rate : full trucks
FM Logistic Pooling in France
Home Care
Grocery
Since 2013
Personal Care
Cosmetics
Multipick process
Since 2011
Grocery
No VMI, multipick Pool
Since 2005
‘SPHINX’ : The partners
Sara Lee
Heinz
Maison du Café
Intersnack
Nutrimaine
SPHINX
X K
S PH I NK
1.500 SKU
1 million pallets
delivered / year
1,4 billion €
Sales
Kimberly
Kellogg’s
Situation at project Start : Beginning of 2012
1 multi-pick Pool
1 Grocery Pool
1 „single” producer
Since 2004, North of Paris
(with FM Logistic)
North of Paris
(with FM Logistic)
Since 2009, North of Paris
1 Coffee Pool
+ Cadbury
1 single producer
Since 2004 near Orleans
Lyon area
SPHINX
Situation : End of 2012
Pool SPHINX
with 7 producers from North of
Paris (Longueil Sainte-Marie) :
SPHINX
Physical process
Pooled
orders
Pooled
orders
Pooled
orders
Pool
Pooled
orders
Entry Gate
Pooled
orders
“Pooling” docks area
Delivery Notes
Pooled pallets
Pool
Control Tower
SPHINX
Organization
Mutualization of storage for the producers :
 7 producers under one single roof : 100 000 sqm warehouse dedicated to pooling
 1 million pallets flow per year
 A migration plan from December 2011 to Mid September 2012
Transport Control Tower :
 Delegated to IPS
Process of mutualized Vendor Management Inventory :
• Mutualized VMI (FM Logistic) allowing a dynamic allocation of quantities proposed by
•
producer, depending on real needs (no fixed lot size)
Each producer gets access only to its own data (confidentiality management),
manages parametrization and remains responsible for orders proposal in regards
to its own conditions with the retailers
VMI Tool selected by the pool : OCS
 Data confidentiality management
 Groundfloor pallets algortyhm
SPHINX
Results in line with expectations one year after
start-up
Process implemented on over 40 DC for 6 retailers
Deliveries in full 38 ground pal. vehicles to the
retailers DC
Delivery frequency x 2,5 in average
Over 35% less vehicles unloaded in retailers DC
A stock level in retailers DC decreased by 20% to 30%
SPHINX