1. Mungunshagai Enkhbold
Global Logistics Management

2. Introduction
• NYK Logistics is a logistics (Transportations) provider.
• NYK Logistics is a part of NYK Group, which was
founded in 1885.
• They satisfy the needs of their customers with the
carriage of a variety of goods safely and securely.

3. Introduction
NYK has more than 30,000 employees around the
world and offers various logistic services:
Container Transport
Land
Sea Air

4. Other services
RORO Bulk and Energy resource transport
Terminal, and Cruises

5. Focus
• This project will be focused on how the supply chain
management of NYK has changed as a result of
information technology advances.
• Project Scope
• We will be focusing on:
– Internal management of containers
– External tracing management system
– How NYK could compare to others in its industry by
benchmarking
– Future transportation to improve SCM

6. Current situation of NYK
The ultimate goal of Supply Chain Management is to
completely synchronize every supply chain cycle with
the customer's final demands. In reality, however, this
goal is difficult to meet.
•Challenges in Supply Chain Management facing
NYK:
- Further distances and longer lead times to
manage
- More complicated transportation routes and
distribution patterns

7. Challenges in Supply Chain Management facing NYK:
- Increased risk of the Bullwhip effect due to
number of additional trading partners
- More difficult to respond to Consumer demand in
a timely fashion
- Communication and coordination problems
increase

8. Challenges in Supply Chain Management facing NYK:
- Communication among multiple partners with
varying technologies
- Reacting to changes and problems in an extended
supply chain
- Effective communication and cooperation among
supply chain partners

9. Case Study:
NYK Logistics, Long Beach, California,
United States of America.
Main characteristics:
 Target’s largest distributor
 70-acre site
 1,200 parking slots
 250 dock doors
 More than 2500 gate
transactions daily during peak
 24/7 operations

10. “In the old system—with a clipboard and spreadsheet and a walkie-talkie—
it was impossible to manage…”
The main challenges of this old system were:
Difficulty keeping up with demand (volume / velocity)
Limited yard space
Level of service performance at risk
Difficulty finding containers and trailers
Difficulty Selecting ‘primary carrier’ trailers for shipping
Labor intensive yard checks
Focused on retaining business as opposed to growing business

11. Solution: RTLS (Real time location system)
Long battery life (5 to 7 years)
High data capacity
True Real-Time Location System
Omni-Directional
Thousands of Tags per Acre
Long Range
Indoor/Outdoor Operation
Compatible with any Wi-Fi

14. Changes in SCM?
• Increased speed: each truck takes just 15 to leave and take 1
container. It took at least 1 hour with the old system.
• Able to handle peak volumes more efficiently
• Increased capacity over 50%, and it´s still expandable.
• Improved level of service performance to 2 days during peaks –it was
7 to 9 days with old system.
• Eliminated daily yard checks.
• More accurate and real-time information shared with customers.

15. Sustainability
• More then 12 months later competitors began to
implement the same or similar systems.
• Sustainable success can be obtained by having a
sustainable innovation strategy, since innovation is about
using change to better meet human needs and values. In
other words, bring new design and smart technologies
together so offer service excellence.

16. Sustainability
•NYK Logistics was the first company in the USA to
implement a RTLS.
• Setting focused targets and putting in place the means to
measure performance and confirm that the targets are
being achieved. (check
progress)

17. NYK Logistics’ Technology
NYK Logistics uses several technologies to provide the
services to their customers. One of the most important
technologies is the satellite tracking systems.
This technology is being used in several industries related
to the NYK Logistics: Retail Business and Food and
Beverage business. By using this technology, NYK
Logistics can solve several challenges and result in the
better performances.

18. NYK Logistics’ Technology
Satellite Tracking System is the technology that
uses the application of GPS and related software
to track the fleet that provides by the NYK
Logistics. By using this technology, NYK Logistics
can track where are their fleets, trucks, ships,
containers and so on.

19. NYK Logistics’ Technology

20. NYK Logistics’ Technology
NYK Logistics uses the PARLMS’s technology
(PAR Logistics Management Systems) which
provide the tracking systems to the
containers, vehicle and all kinds of fleets.
NYK Logistics, Inc., has selected PAR's GT 200
Genset Tracking system for their fleet of
power units.

21. NYK Logistics’ Technology
Benefits of Genset tracking systems are :
• Providing the container’s status
• Maximize the utilization of assets
• Offering the real-time fuel level monitoring
• Bringing the new level of value of business as
well as to the NYK’s customers’ business.
• Providing more security for the shipping and
all transportations.

22. NYK Logistics’ Technology
According to the benefits of satellite tracking
systems, NYK Logistics can provide more services to
various industries. By the innovation of the tracking
system, it can be integrated to the technology that
uses in the supply chain management.

23. NYK Logistics’ Technology
The results of the tracking systems to the supply
chain management are either reducing the amount
of stock keeping units in the inventory, providing
more reliability for the supply chain services. These
are the reason why the NYK Logistics can win the
customers’ satisfaction because they always find
ways to improve their services

24. Benchmarking Opportunities
Using a competitive (benchmark performance or
processes with competitors) and functional
method (benchmark similar processes within an
industry) with public domain information, it can be
discovered that NYK logistic have opportunities of
improvements in some specific business areas and
specific performances:

25. Benchmarking Opportunities
World’s top 10 shipping lines
Top 1st leading:
Maket
Operator TEU Capacity Share Ships
APM-
Maersk 2,031,886.00 15.5% 539
NYK 433,000.00 3.3% 119
Difference 1,598,886.00 12.2% 420

26. Benchmarking Opportunities
MAERSK has been analyzed to see the improvement’s opportunities
of NYK in the Vessel Performance Management, which has been
worked in the industry by the MAERSK Maritime Technologies,
where they study and improve the Energy Efficiency, Operational
Efficiency, Hull, Propeller & Main Engine performance Management.
Some specific application on the daily performances that can be
applied in NYK as benchmarking could be the followings:

27. Benchmarking - Vessel Performance Management
1. Generating power from heat
instead of fuel: Waste heat
recovery (WHR) systems utilize
heat contained in engine exhaust
gases to generate steam.
2. Ballast Water Treatment: strategic
partnership to boost protection of
local maritime eco-systems. Combine
the knowledge of ship technology,
water treatment, and pumping
technology which has now resulted in
a unique and sophisticated concept
based on proven technology.

28. Benchmarking - Vessel Performance Management
• Implementation of the SEA-Mate® Elemental Analyzer:
• (1) save time compared to sending oil samples ashore for
analyses. The results are ready within 6 minutes .
• (2) We are able to monitor the iron content in scrape down
samples from the main engine within minutes and from these
results we have the capabilities to judge the condition of the
cylinders while the engine is running.

29. Benchmarking - Vessel Performance Management
• Implementation of the SEA-Mate® Elemental Analyzer
•(3) As a result of the two factors above, we are able to
optimize the cylinder oil consumption for each cylinder, thus
being able to save on cylinder oil as well as maintenance cost.
• (4) From the Calcium content in the cylinder oil you
are able to measure the TBN in a reliable way if needed.
• (5) From general oil samples from different
machinery we are able to judge the condition of gear wheels,
bearings etc. and save maintenance cost in the long run.

30. Deduction
• There are more than five companies that have more market
share and capacity than NYK, therefore could be many
benchmark opportunities in the industry in different business
areas in the organization. In this research project only public
domain information was utilized, hence the benchmark scope’s
was limited to one of the main business areas in the NYK.

31. NYK Super Eco Ship 2030
- our concept ship in the future

32. Purpose and Target
 To make it clear what NYK need to technically develop in the long
term including alternative energy
 To lead to think future system of shipping, such as cargo handling
and traffic infrastructure
 To appeal to young engineers/students in the world that the
development of the future ship is challenging and hopeful
Alternative
Reshape
energy
business model
Super Eco Ship
Future
cargo handling
Future
traffic infrastructure

33. Advantages
 Reduce the ‘’Emission Zero’’
 Reduction of CO2 Emission
 Reduction of weight
 Power generation with fuel cell
 Solar power
 Sails
 Increase of Max Loadable Capacity
NYK Super Eco Ship 2030 video.wmv

34. Road to “ Emission Zero”
Fossil fuel
2008
2020 H2
Solar, Wind
2050 Emission Zero
H2
2030 Super Eco Ship
Diesel Engine
Diesel Generator
Fuel Cell
Battery Motor

35. Conclusions
• For a thriving Supply Chain management NYK should deliver
and integrate activities across areas of: Transportation,
Warehousing, Information, and International management.
• knowing their customers and understand their business and
their Customer's Customer
• Comprehend their customer's current supply chain design

36. Conclusions
• Design customized, integrated solutions that synchronize the
supply chain events to balance the responsiveness and efficiency
within the supply chain.
• Implement solutions to SCM based on:
- Dedication to customers and their businesses
- Quality, excellence and advanced information management
- Superior global network integration
- Flexibility and innovativeness their organization
- A highly trained and professional workforce