Two Hubs for Logistics Process in Iberia HUGO BOSS © 22th Dec 2012

Proposal Two Hubs for Logistics Process in Spain

HUGO BOSS Benelux B.V. y CIA, S.C

Logistics Department

HUGO BOSS AG

Main HUB and Cross-Docking HUB

Madrid Main Hub

Barcelona Cross-Docking Hub

HUGO BOSS © 22th Dec 2012 Proposal Two Hubs for Logistics Process in Spain

HUGO BOSS © 22th Dec 2012

Cross-Docking Distribution

Proposal Two Hubs for Logistics Process in Spain

Benefits

-  Merchandise to the stores arriving one day earlier than the current delivery process.

-  Barcelona’s Distribution Region deliveries (Friday – Tuesday)

-  Madrid’s Distribution Region deliveries (Monday - Wednesday)

-  Around 600 – 1200 km avoided for each piece in each shipment at the Barcelona Cross-Docking Area.

HUGO BOSS © 22th Dec 2012 Proposal Two Hubs for Logistics Process in Spain

New Drive Proposal

HUGO BOSS © 22th Dec 2012 Proposal Two Hubs for Logistics Process in Spain

-  Madrid will keep receiving merchandise as the current delivery process.

-  Madrid Area (Other Cities) will receive merchandise one day before the current delivery process

-  For Canarias Islands the proposal is delivery the hanging goods in special packages (hanging goods boxes) avoiding 1 or 2 day in the whole delivery process.

-  To deliver hanging goods in boxes package for hanging goods reduce the costs of shipments and increase the costs of packages. However the Shipment costs are more expensive than the package costs. The final result is a small reduction on the global costs.

Circular flow security tags HUGO BOSS © 22th Dec 2012

Actual Security Tags Circular Flow Situation

-  Increased Retail POS. In 2012 there were 94 POS working with the Security Tags Circular Flow.

-  Avoided send the filled Red Boxes as Door to Door Shipment (Spain POS to Germany Warehouse). Consolidating all boxes collected to one Grouped Shipment. The Red Boxes Shipment Costs was reduced 15%.

-  Logistics Department is Responsible for the complete circular flow (Collect and Send). Retail Department Focus in Its goals.

-  Increased level of returned (POS to AG) Security tags, in 2011: less than 40% of the tags were returned. In 2012: more than 70%.

-  Grouped Shipment in the same week the red boxes were Collected from the POS. Reduced time between collected and sent back to the POS.

Circular flow security tags HUGO BOSS © 22th Dec 2012

HUGO BOSS AG

Main HUB and Cross-Docking HUB

Circular flow security tags HUGO BOSS © 22th Dec 2012

-  During the Years 2012 and 2013 the quantity of Iberia Retail POS are increasing.

-  Issue: Do the Security Tags Circular flow works by Itself with many new restricted rules of the ECI Shopping Centers.

-  Opportunity: Find out a cheaper way to manage the increased movement of red boxes.

-  For 2013 the goal is to be over than 90% of the security tags available to come back sent to HUGO BOSS AG.

-  Special attention. Collect the filled box when the POS need.

-  Handling, Counting, Data Record, Packing, Grouped Shipment, Assorting Tags and needles, Sending Data Recorded.

-  Simple Package for the Grouped Shipment. (Proposal to Hugo Boss AG)

-  Recording data send by tracking file (Proposal to Hugo Boss AG). The Data would be send the same day of the Grouped Shipment.

Proposal Security Tags Circular Flow

Circular flow security tags HUGO BOSS © 22th Dec 2012

DOS HB ECI CORNER HUGO BOSS AG

Depot Central

Data Sending

Proposal Security Tags Circular Flow

Grouped Shipment of Tags and Needles

Filled Box Picked up

+

Tagged Merchandise Shipments

HUGO BOSS © 22th Dec 2012 Proposal Two Hubs for Logistics Process in Spain

List of companies for this tender

http://www.youtube.com/watch?v=kxfODVqZJvs&feature=related