Kotra, Los Angeles March 15, 2012
ABG North Asia Busan Hub Center (BHC) ANA Operations
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Jul. 2011
Contents 1. Location 2. Organization 3. Facilities 4. Inventory Flow 5. Responsibilities Responsibility 6. Postponement
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1. Location
Why Busan?
Eastern Gateway to Russia
FTZ ZONE BENEFIT
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3rd BIGGEST PORT IN THE WORLD
1. Location II AKL ABG
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OFFICE
1. Asia Network Ada Warehouse North Asia Markets Korea Japan Thailand Malaysia Taiwan Hong Kong Singapore Indonesia Philippines
Nutrilite Warehouse
Busan Warehouse
South Asia Markets Australia New Zealand
Legend Mutual use, Postponement, and Brite Stock SKUS shipped through Busan Market Specific SKUs shipped direct to North Asia markets
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SKUs shipped direct to South Asia Markets
2. Organization Manager Distribution Analyst
T&O
DPS Coordinator
Planning Coordinator
H.D Coordinator
Allocation Planner
OS&D Cleck
Allocation Planner
WHSE Coordinator
IMS / All. Planner
Rework Coordinator
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RDC planning
F. Management
F.M Assistant
ABG Operations
ABG Coordinator
NTBU Coordinator / ERDC
2. Org. Man Power ANA-WHSE Operations : 21 Staff
BIDC
202 Staff
: 171 Staff
. In/Out bound . DPS . Postponement . Kit Assembly
NTBU (ERDC) : 10 Staff
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3. Facilities 6 Level High Racking System - VNA Truck
RF (Radio Frequency) System
Pick to Light (Digital Picking) System for AKL Home Delivery
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3. Facilities - Area Area
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Portion
Desc.
BIDC
ANA
%
Land
103,680 ㎡
28,919 ㎡
28%
Warehouse
49,488 ㎡
21,673 ㎡
44%
3. Facilities – Rack Capacity Desc. Pallet Rack (Aerosol : 790) Reefer Container
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Capacity 13,681 pallets 2 containers
3. Facilities – Order Fulfillment Desc. Pick to Light (DPS)
Postponement
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Capacity
Remark
85,000 Each / Day
2 lines 12,000 Box / Day
H.C Product (90,000/week) N&W Product (34,000/week) Durables (8,000/week)
1 line 1 line 1 line
3. Busan Nutrition GMP Labeling
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3. BUSAN QA LABS & OFFICES
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4. Inventory Flow - ABG Postponement
ABG
Busan Hub Center
Rackas safety stock
Amway Korea
Other Affiliates
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4. Inventory Flow: Amway Korea ABG
Local
Home delivery
BHC
DPS Line
VMI Stores VDS 15
IBO
4. Inventory Reduction Calculation
Risk pooling is the concept that demand variability reduces as we aggr egate demand Across Customers Across Products Across Time Periods
Example is (3) SKU’s with similar demand patterns with 99% instock service level Expected Value = 100 Std Dev = 30
99% In-stock = 456 units 99% In-stoc k = 190
Expected Value = 100 Std Dev = 30
Customer 1
Avg dem and = 10 0
Customer 2
Avg dem and = 30 0
Expected Value = 300 Std Dev = 51.9
Expected Value = 100 Std Dev = 30
Combined Distribution
Customer 3
3 SKU’s X 190 units per SKU = 570 units of Inventory
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= 456 units of Inventory 16
5. Responsibilities
Warehousing
DPS & AP Replenishment
BHC
ABG In & Outbound Rework & Postponement Inventory Management
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5. Rework & Postponement Unit : ea
Hand Ass’y Kitting (Giftset) Over Labeling (Tamper seal included)
Month
Daily
150,048
13,240
359,694
30,831
Unit: ea (Capacity)
ABG-Postponement
Month
Daily
457,691 (378,000)
21,795 (18,000)
Durables
37,821 (37,800)
1,801 (1,800)
N & W Product
57,338 (136,000)
2,730 (6,800)
Home Care
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5. Inbound 4. Inbound
Unit : Pallet
Desc.
Monthly Avg.
Daily Avg.
Container
5,448
259
AIR
149
7
ABG
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5. Outbound Unit : pallet
Dept.
ABG
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Category Container AIR AKL
Monthly Avg.
Daily Avg.
4,111 54 2,312
196 2.5 110