How to coop with possible dangers of possible fumigated container loads
How to coop with possible dangers of possible fumigated container loads at Yamaha Motor Europe N.V. By: Harry Gul (nov 2010) Manager Amsterdam Warehouse Yamaha Motor Europe, Logistics Group Contents 1.Yamaha Motor Europe N.V. 2. Amsterdam Warehouse Yamaha Motor Europe N.V. 3. Reason of project 4. First reactions from organisation 5. Information to stakeholders & commitment 6. Approach of problem & required investments 7. Results & costs 8. How to proceed? Yamaha Motor Europe, Logistics Group Yamaha Motor Europe N.V. Yamaha Motor Europe, Logistics Group Yamaha Motor products Yamaha Motor Europe, Logistics Group Spare parts & accessories Yamaha Motor Europe, Logistics Group Deliveries into Europe GL IS FI FO SE NO EE LV DK LT IE BY Y1 GB NL 001 PL DE BE Y3 LU UA CZ SK AT FR CH MD HU 002 SI Y2 RO HR BA IT RS BG ME Y4 PT ES AL MK GR TR IL Yamaha Motor Europe, Logistics Group Amsterdam Warehouse Yamaha Motor Europe N.V. Yamaha Motor Europe, Logistics Group Lay-out Central Warehouse Amsterdam Small Parts Picking High Bay Warehouse Frontzone (in/outbound) Special & Heavy Yamaha Motor Europe, Logistics Group Facts & figures AMS warehouse 60– 120 FTE 30.000 m2 warehouse 110.000 SKU’s 25.000 – 45.000 order lines a day 500 containers a year Yamaha Motor Europe, Logistics Group Reason of project Yamaha Motor Europe, Logistics Group Dutch Labour Inspection paid a visit… Dutch Labour Inspection checked Yamaha February 2008. Aim: check if Yamaha has a correct procedure in order to coop with possible fumigated container loads from non EU-destinations. Results of invest: no procedure available Yamaha Motor Europe, Logistics Group First reactions… Yamaha Motor Europe, Logistics Group First reactions Our products fumigated?? P&A! What will be the next issue that Labour Inspection will check? What will be the costs? What are the possible risks for our employees? Does that mean delay on inbound freights? Will operators be anxious to unload containers as of now? Yamaha Motor Europe, Logistics Group Information to stake holders & Commitment Yamaha Motor Europe, Logistics Group Information stake holders & commitment Info to Management and Works Council mission statement: “To meet the legal requirements and to protect employees of YME to the possible effects of gasses which might be used to fumigate container loads.” Yamaha Motor Europe, Logistics Group Approach of problem & required investments Yamaha Motor Europe, Logistics Group Inbound containers AMS warehouse Containers received at AMS Warehouse last 12 months 450 403 400 # Containers 350 300 250 200 150 74 100 58 50 17 13 11 5 2 1 1 1 1 lY M B YC A Br as i ad a C an ea SS U N YC SA U Ko r F M D na er C hi Sc ep t SA U ap o re YD S W AR as a Yu G S U SA Si ng Ja p an an YM T SA Ta iw YU U SA Ja pa n YM C 0 Supplier 587 containers in 12 months, majority 40-ft containers Yamaha Motor Europe, Logistics Group 3 Inbound container-categories A-container: Supplier does confirm that one or more gasses are used in the supply chain to fumigate the container loads; Containers will be checked at all times. B-container: It’s not clear if a gas or more gasses are used in the supply chain to fumigate the container loads, or supplier declares not to use any kind of gas, but declaration still has to be proved by fumigation checks: containers will be checked at all times C-container: Supplier does declare that not any kind of gas is used in the supply chain and sustainable prove has been delivered by multiple fumigation checks. Though, random checks still will be applied! Yamaha Motor Europe, Logistics Group Rules Basic rule is that a supplier will be “suspected” and as such will be put in category “A” (= 100% check), until: 1. A declaration has been received from supplier AND 2. Sustainable prove has been provided by 100%-check If 1 and 2 are ok, supplier can be “moved” into category “C”. Fumigation checks can switch into random checks (10% of containers) and after one year further down to 5% of containers Yamaha Motor Europe, Logistics Group Supplier Declaration & Fumigation Checking company Basic statements which YME is demanding on the supplier declaration: • In case wooden pallets are used, only heat treated pallets are allowed Does also apply for wood in order to stow the (pallet)loads • After container has been closed, it’s guaranteed that no gas is in container • On invoice/seawaybill should be stated that heat treated pallets are used and that container load is not fumigated YME Logistics will contract external company to perform fumigation checks on AMS Warehouse-premises: Suurd Pest Control Yamaha Motor Europe, Logistics Group Results & costs Yamaha Motor Europe, Logistics Group Qualification-list suppliers, 2008 Categorie A: Yuasa Yamaha Motor Taiwan Yamaha Motor Latin America Yamaha Motor Corporation Japan Yamaha Motor USA Warn Industries Yamaha Singapore (YDS) MDF, “Phileas” (China) National Cycle Yamaha Motor Canada Scepter Strategic sports LTD Yamaha Motor Europe, Logistics Group Other actions to be performed • “In-house” awareness training warehouse personnel and other departments like Inventory & Procurement • Inbound control dept. procedure to pre-select containers to be checked • Establish system for recording fumigation check results • Procedure for checking, accepting, docking and unloading containers • Provide training to first aid team Warehouse • Increase awareness other/external departments or companies Yamaha Motor Europe, Logistics Group Awareness training SPA-group provided in-house awareness training - Complete Warehouse staff was divided into 4 groups - Each group joined a 3 hours training, during working hours (important!) - Average cost per employee just 25 Euro Other departments who joined in the training: inbound control, Inventory & Procurement, Sales, Customs handling, Health & Safety officer, Technical Dept., and so on. Especially first aid team warehouse joined! Quality level of this training appeared to be high. It has been an very good investment! Yamaha Motor Europe, Logistics Group Pre-selection-procedure Inbound Control dept. Inbound control Qualification-list suppliers (A,B or C) Which container To be checked? Inbound containerlist Inform Suurd Inform WHSorganisation Yamaha Motor Europe, Logistics Group Docking procedure Delivery Container docking Driver signs in at inbound control Open container and put into dockshelter Inbound control Keep dock door WHS closed!! Inform Load master Use ventilatonschedule Perform external check container After 2 hours ventilation: start unloading Y OK? Docking container is allowed Start unloading Stay alert! N Refuse container Stop all actions and contact Suurd N OK? Yamaha Motor Europe, Logistics Group 2 hours ventilation Ventilation-schedule Docking date: Docking time: Data filled in by: Unless Inbound Control advises that this container has just been checked and released, this container has to be ventilated 2 hours. During these 2 hours, Warehouse dock door has to kept closed. Do not enter this container before: …………………… Hour Yamaha Motor Europe, Logistics Group Qualification-list suppliers year end 2009 Categorie A: Categorie B: Yuasa Yamaha Motor Latin America (low freq.) Korea, Canada, Brazil (low freq.) Categorie C: Yamaha Motor Corporation Japan Yamaha Motor USA Yamaha Motor Taiwan Warn Industries Yamaha Singapore (YDS) MDF, “Phileas” (China) National Cycle Yamaha Motor Canada Scepter Strategic sports LTD Yamaha Motor Europe, Logistics Group Results: # containers checked and costs Period: 1st January 2009 till 31 oktober 2009: 372 containers received (40-feet + 20-feet) 64 containers checked 3 containers not ok, fumigated and fumigation level too high 3 containers degassed at Suurd, RTD Total checking costs + degassing: 12.240 Euro: 190 euro/container 1660 Euro: degassing 2 containers with Methylbromide 1700 Euro: degassing 1 container, exceeding LEL = Lower Explosing Limit 8880 Euro for initial fumigation checks : 64 = 140 Euro/container Yamaha Motor Europe, Logistics Group Results 2 containers received and blocked, because of ventilationholes on which tape was discovered. Fumigation check Performed, but (luckily) no gas detected. Improved inbound planning created chances to check multiple containers in one run, resulting in lower costs per container. No extra delay in leadtimes towards WHS or customer! Yamaha Motor Europe, Logistics Group Results: awareness & pro-activity Procurement & Inventory arranged fumigation declarations 3 times! All kind of info about fumigation issues is distributed by many persons in the Yamaha organization! Drivers of external container transport companies do make announcements in case something is not ok with a container. Yamaha Motor Europe, Logistics Group First aid/Safety-training . Yamaha Motor Europe, Logistics Group Summary A safe and secured inbound container process with respect to fumigated containers can be implemented rather easily, against low costs. Very important steps: - Commitment - Awareness-training - Suppliers Declarations - Keep knowledge up-to-date Yamaha Motor Europe, Logistics Group Thanks for your attention! Questions? Yamaha Motor Europe, Logistics Group
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