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