Vendor Managed Inventory

Real Time Benefits derived by introducing VMI

Prepared by: Mr Umit Nedim General Manager TT Logistics 2008

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Benefits Vendor Managed Inventory

Transfer Inventory, and responsibility to Suppliers. Visibility of the total supply chain. Improve working Capital up to 35%. Proven Inventory/Warehousing systems (Web based), including; Visibility of stock holdings Visibility into supply chain (ASN) Quarantine (theoretical) stores No locally loaded software management

(c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved

Vendor Managed Inventory

It is a Web-based Supply Chain Management system used by Customer, TTL and Suppliers. TT-Logix is the Warehouse Management System used to manage the Logistics process by TTL. TT-Logix is integrated with the VMI system to provide a total solution for Customers VMI business model. TTL current customer uses this system in 3 countries (Australia, Thailand and China). There are over 1000 suppliers using the system, and 80% being overseas suppliers.

(c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved

Actual Customer benefit for one of the factories

Customer Inventory Value ($'000)
$13,000
VMI BLIND FACTORY

$11,000

AUD 9.2 mil AUD 6.0 mil

$9,000

$7,000

$5,000

$3,000

$1,000
Nov-06 Nov-07 Nov-08 Jul-07 Jan-07 Jun-07 Jan-08 Jun-08 Jul-08 Feb-07 Feb-08 Jan-09 Sep-06 Dec-06 Aug-07 Sep-07 Dec-07 Aug-08 Sep-08 Dec-08 Feb-09 Apr-07 Mar-07 Mar-08 Apr-08 May-07 May-08 Mar-09 Oct-06 Oct-07 Oct-08

-$1,000

(c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved

Operational Flow
Forecast & recommendation Via Internet

E-KANBAN Delivery Cycle 1:16:2

Overseas Suppliers Customer Australia

TTL VMI W/H Australia

Toyota Tsusho O/Seas

E-KANBAN Delivery Cycle 1:16:2

TTL VMI W/H Thailand

Forecast & recommendation Via Internet

Customer Thailand
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VMI Business Flow

Customer VMI Warehouse TT overseas Supplier

Forecast Usage Recommendation Receive Goods Arrange Shipment Put Away Goods Ship Goods Deliver Goods Arrange Pickup

Production

Prepare Shipment Create ASN

ASN Receipt Confirmation Electronic Order Pick Goods KANBAN Cards Deliver Goods Receive Goods Electronic Delivery Docket Billing Report

Receive ASN Confirmation

Electronic Receipt Confirmation Make Payment

Issue Invoice

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System Modules
Forecast Usage Recommendations ASN Management (ASN = Advance Shipping Notice) Billing Reports Aging Reports Inventory Status Inventory Movement Inventory Planning Item Master Supplier Information Email Alerts

(c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved

Email Alerts / Notification

The system generates the following email alerts and notification to Suppliers: Minimum / Maximum Stock Alert Email is sent when stock falls below minimum or maximum qty ASN Receipt Confirmation Upon receipt of goods, email is sent to Supplier with the Part No and Qt Received New Demand Alert When there is a change in Forecast Usage / Recommendation, email is sent to alert Suppliers to adjust their Production New Billing Reports Notification Notifies the Supplier when a New Billing Report is ready

(c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved

TT-Logix Introduction
TT-Logix is a Warehouse Management System developed based on TTLs proven Logistics process

Easy to use, User Friendly Windows based System with Step by Step guide for each process Achieve accuracy by the use of Barcode Scanning Use of 2 Dimension Barcode, QR Code (Developed by Denso) to encode more data on the barcode

Picking is based on FIFO

Continuous review to improve the system Proven solution used in 7 countries (Singapore, Australia, Thailand, Indonesia, China, Taiwan, Malaysia)

Multi-Language (Currently available in English and Chinese)

(c) 2008 TT Logistics (Australasia) pty ltd. All Rights Reserved