Success Factor Collaboration How Leder & Schuh AG sets Trends across Europe
Guest Author: Maximilian Kummerer Director Supply Chain, Leder & Schuh AG Collaboration in Practice
August 2015 Success Factor Collaboration
Trends have a short season in the fast moving world of fashion. Therefore one of Europe’s lar- gest shoe providers, the Austrian company Leder & Schuh AG, trusts maximum transparency in the supply chain.
Nothing between production and outlet is left to chance. The Graz-based company’s guarantee for success is an IT solution which allows for smooth interaction between their own logistics department and suppliers and logistics providers in all parts of the world.
The partners in this logistics triangle always meet at eye level: through an IT platform which allows collaboration in its purest form.
Maximilian Kummerer Director Supply Chain, Leder & Schuh AG
2 In Asia collaboration means working with a part- ner. This tells us much about the understanding how we encounter our suppliers and logistics pro- viders. They are part of a process which ensures that fashion arrives in time and is available for our The triangle supplier, logistics customers in a timely manner. In order for this to provider and customer needs a succeed in the rapid change of shoe collections at >> connecting element: IT approx. 350 locations, across five brand environ- ments it takes a connecting element in the triangle of supplier, logistics provider and the logistics de- partment itself: IT.
The special part about a solution as AX4 makes possible for us lies in being able to give space to the IT, forerunner of a highly ef- trusting cooperation in our logistics network. IT, for ficient form of collaboration in us it is not only the engine and initiator of logistical >> cross-company processes processes but at the same time it is the forerunner of a highly efficient form of collaboration in cross- company processes. Through AX4 we can pull all the strings of our supply network, keep it transpa- rent and thus integrate further network hubs and partners with our supply chain at any time.
3 How does this work in practice? Which roles and functions are assigned to the participants in the AX4 supply chain?
Manufacturer or trader – the supplier receives our The orders, confirms them and consequently ensures supplier production and handover to the logistics provider in coordination with his factories.
Assumes a leading role in the supply chain as he takes care of the physical flow of goods – from best- The possible utilization and loading of transport units (container, truck) up to optimized delivery sequence logistics provider to our distribution center. He thus assumes responsi- bility for the best possible execution of required pro- curement transports.
Plans receipt of good based on the information on The incoming goods control as provided by the logistics provider. in this process his duties range from prepa- warehouse operator ration of customs clearance to feedback on success- fully finished unloading.
We are the designers and managers of the supply chain. We control and monitor it while major parts of The the monitoring are done automatically by the system Leder & Schuh AG (alerting). Action is only required in those problem cases which require additional coordination to take measure in a timely manner (e.g. strikes).
4 Through AX4 we integrate all involved partners from the time of transmissions of order to order confir- mation up to handing over of goods (whether in the distribution center or right in the outlets) with the supply chain process. With the first mouse-click the supply chain gets in motion: The orders which the supplier confirms turn into shipments which are bundled on loading lists. They reflect the contents of a container or truck which transports the goods Through AX4 we integrate all from the production countries in Far East and Euro- involved partners with the supply pe to our distribution center and/or outlets. >> chain process
For everything to go according to plan each relati- on along the transport process is linked to miles- tones. By comparing the target/actual statuses at pre-defined measuring points we can easily keep an overview on the delivery due dates to be met. In case of a delay AX4 alerts us automatically.
5 “The same view on things makes for a form of cooperation which is based on partnership and free of hierarchy”
The IT solution’s transparency simplifies the ma- nagement of complex logistical processes and for us it is an essential prerequisite for collaboration between the different participants. At each point in the supply chain it is visible and therefore easi- ly traceable who has to do and take responsibility for what, when and where. Commitment in a trans- parent logistical chain is high. Since IT allows us to dive into the process chain between suppliers and logistics providers at any time the cards are open on the table for all players to see – this is an impor- tant aspect of collaboration for us.
The advantages of transparent communication are bigger than initial reservations to make knowledge available for other participants, for the same view on things makes for a form of cooperation which is based on partnership and free of hierarchy where only one thing counts: The best-possible solution of logistical tasks. The IT solution’s transparency >> simplifies the management of complex logistical processes and for us it is an essential prerequi- site for collaboration between the different participants
The same view on things makes >> for a form of cooperation which is based on partnership and free of hierarchy
6 Those who are not willing to open up and to trust the coope- “The central role of IT: >> ration with a variety of partners It generates information from data will reject this model and knowledge from information.”
AX4 creates the basis for successful collaboration. Information and knowledge is shared with others and enriched to be able to develop further. IT’s cen- tral role: it generates information from data and from information it generates knowledge which helps stakeholders to improve continuously.
Since we, Leder & Schuh AG, are at home in the world of fashion it was important for us to push a solution like this one. It allows us to react quickly to trends and to keep an eye on the essential: the con- trolling of our product lines and our supply chains.
Of course collaboration has its limits: Those who are not willing to open up and to trust the coopera- tion with a variety of partners will reject this model. There is always a risk of someone not participating.
7 “The system’s advantages are unbeatable”
In practice, however, the advantages of this system are unbeatable. Even critical phases are easier to manage with the constructive approach of collabo- ration. Instead of accusations there are methods Even critical phases are easier of resolution on the table. Partners support each to manage with the constructive other instead of leaning back. Each one emerges >> approach of collaboration strengthened from such processes. As a result we can say: Yes, collaboration definitely helps in achie- ving competitive advantages!
“IT traverses logistical processes like nerve tracts.”
The basis for this is delivered by IT. It allows to go new ways based on the generated knowledge. It traverses logistical processes like nerve tracts, acts like an early sensor and thus makes processes con- trollable. It has become indispensable for the world of Leder & Schuh AG. Collaboration definitely helps in >> achieving competitive advantages
8 About the author Maximilian Kummerer
• 1985 to 1988 Nixdorf Computer Software Development, Project Management
• 1988 to 2000 C&A resp. RSC Commercial Services IT, Organisation (Project Management) and Logistics (Head of Central Logistics)
• since 12/2000 with Leder&Schuh AG Manager Logistic and since 2012 Manager Supply Chain Management
About the Leder & Schuh AG
The Leder & Schuh group, headquartered in Graz, Austria, with a staff of approx. 3,800 in more than 360 locations is one of the largest shoe trading companies in Europe. Well-known brand names like Corti, Dominici, Humanic, Jello, Stiefelkönig or Shoe 4 You originate from this company. The inter- nationally operating Leder & Schuh group serves points of sale in 10 countries.
9 Editor
AXIT GmbH A Siemens Company Nachtweideweg 1-7 67227 Frankenthal Tel.: +49 6233 / 45943-0 Fax: +49 6233 / 45943-900 www.axit.de
Photos: AXIT GmbH, Leder und Schuh AG
August 2015