A Research Report on

Wallenius Wilhelmsen
Logistics

Submitted By:
Akash Karunakaran (GSEP14IT47)
Vineeth Unnikrishnan (GSEP14CMM23)
Visag Marthandan G (GSEP14GLM33)

Objective
WLL or Wallenius Wilhelmsen Logistics is a Norwegian shipping company which
aims to provide supply chain and logistics solutions such that minimum or no

harm is done to the environment. They are specialised in giving innovative

logistics solutions for cars, trucks and similar heavy cargo. They invest vastly in
technology such that the cost is reduced and this value is passed on to the
customers. This strategy drives more customers to WLL.
WWL Business Strategy
Wallenius Wilhelmsen Logistics always tries to expand the value for their
customers and employees by considering the environment on their top priority.
The company targets to build and improve an efficient factory to dealer business
model. To achieve this target the company invest in the innovative supply chain
solutions and an encouraged customer supplier collaboration. (Wallenius
Wilhelmsen Logistics, 2009) (Wallenius Wilhelmsen Logistics)
Apart from the RORO fleet the company has business in the Break Bulk Cargo,
which mainly uses for the transportation of power generating equipment, boats
and rail cars. Also WWL implements the Factory to Dealer concept, which
requires an integration of ocean transportation, terminal handling, technical
services and inland distribution. This concept helps the company to provide the
One stop logistic solution to its customers. Here the customers only to need to
inform the company where and when to pick the consignment, WWL will take
care from that point onwards.
The companys major business lines are
Ocean Transportation
Terminal services
Technical services
Inland distribution
Supply chain management systems
Facilities of Wallenius Wilhelmsen Logistics
Physical infrastructure is one of the important factors in the supply chain
business. The facilities can be divided into the fixed facilities and
transportation facilities. WWL has an extensive fleet of ships and land
transportation system which represents the transportation facilities. The fleet
contains 61 RORO carriers, which can carry up to 7500 cars at a time. These
vessels are unique, such that, these can be loaded and unloaded without the
help of any special equipment such as cranes. There are more than 1000 trucks
are there in the WWL system which mainly used for connecting
Manufacturer to dealer
Manufacturer to Port
Port to dealer
WWL uses Advances Track and Trace (ATT) and Electronic Data Inter exchange for
planning and information exchange which enable the company to enable a
customized IT solution.
Products handled in Wallenius Wilhelmsen Logistics
In order to define an appropriate infrastructure design, a clear understanding of
products to be handles is mandatory in supply chain management. WWL
concentrates on 3 major products line such as
Cars

Other Rolling equipment

Break Bulk Cargo

Cars requires higher degree of standardization, compared to other products, so

to cope up with the cargo that is not standardized, WWL has developed a
number of standardized rolling equipment. (Wilberg & Olafsen, 2012)
WWL Supply Chain Diagram and Explanation

WWL implements Factory to Dealer business model. This model helps the
customers to have a risk free and transparent transportation system. The
customers only need to inform WWL where and when rest all the company will
take care.
The main business are of WWL is automobile industry. Automobile industry has a
number of standards to keep up. So WWL helps its customers to maintain the
services. One of the unique ideas is that WWL provides to customer is the
Vehicle processing center (VPC).
Vehicle processing center (VPC)
In order to cut the lead time and inventory cost of the customers, WWL
introduced the idea of integrating processing with the out bond supply chain
system. Also WWL verifies whether it meets the quality standards of its
customers by pre delivery check-ups.
In order to achieve the goal WWL uses its space as the processing hubs for the
vehicles, these provisions are called as the vehicle processing center. In these
VPC companies can perform their

Pre delivery check ups

Accessory fittings
Mechanical& Paint repairs
Storage and yard management
Washing etc.

Delivery Process
When the consignment is ready at the manufacture side, WWL picks it up from
the location, using the land transportation facility it carries it to the nearest port
if it is an overseas consignment. If it is a domestic consignment, it directly
delivers to the destination using the trucks. In case of overseas, RORO ships
used to transport from port to port. At the destination port, it unload the
consignment then it moves to the VPC. In VPC, the required processing takes
place and from there it delivers the vehicles to the different dealers with the use
of trucks. (Wilberg & Olafsen, 2012)
(Wallenius Wilhelmsen Logistics)
(Wallenius Wilhelmsen Logistics expands use of Quintiq supply chain planning
and optimization platform to global land and ocean operations, 2013)
(Plan for profitable, agile and cost-effective operations)
Environmental Friendly Approach
What was the need?
WWL focused on environmental friendly solutions to provide sustainable logistics
solution to its customers. The cost benefits thus obtained is given to the
customers thus improving their own public image for being environment
conscious as well as cutting down the costs to attract the customers. The
companies around the world overall are becoming more aware of environmental
safety and thus coining the term green supply chain.
A green supply chain is the integration of supply chain activities into operations
involving `procurement, product development, distribution, delivery and
recycling of end-of-life recycling. It incorporates energy efficient methods using
minimum resources and thus delivering solutions with minimal waste.
Consumers nowadays prefer companies who are more responsible to the
environment. WLL identified that transportation causes more than 20% of worlds
CO2 emissions. With the increase in demand of automobiles it proportionally
contributes to the increase in CO 2 emissions. Hence WLL decided to make a
change in this trend. (Lie)
The Approach
The installation of solar panels saved huge energy and costs for WLL. The
companys Laverton facility has installed an 18-kW solar panel which supplies
around 33% of the energy needs. They harnessed energy from the solar panels
and reduced the dependency on other conventional energy resources. This also
meant big savings for the customers and a sustainable supply chain network.
Within a year of implementation it produced almost 30mW hours of energy.
This is one of the initiatives by the WLL team. Recycling of water for the use
throughout the premises was also done by WLL. The unique system of having

eco-friendly touch in the smallest of things gave a major boost to the image of
WLL. They fixed a solar panel display at the entrance which checked on the black
energy usage, the cost cuttings and original energy produced. The solar panel
implementation is based on the photovoltaic system which apprehends the solar
radiation and gives it to 3 other separate invertors. These convert DC energy to
AC energy that is used in the facility. This supplies almost 1/3 of the total energy
needs.
In 2011, WLL asked its staff to give ideas to take forward the zero carbon
emission goal of the company. Out of the 116 ideas, 5 were selected. The idea
was to use a wind turbine for generating energy, rain water harvesting
mechanism for its water needs and the use of an ice scrapper during winter
months for the otherwise idle cars. (Kliger, 2014)
The Impact
In 2010, the company reduced its carbon emissions by 21%. This was mainly due
to the improved storage utilization and energy saving measures. The CO 2
emission reported by the company was verified by Det Norske Veritas, to
conform with the Greenhouse Gas Protocol and ISO 14064-1. WWL was the first
shipping company in 2009 to comply with these standards. WWL was first in the
shipping sector in 2009 to verify data according to these standards. This made
sure that a standard reporting system was in place and the company made sure
this information was available to the stakeholders. (Wallenius Wilhelmsen
Logistics: committed to green shipping, 2011)
Additional Measures
WWL has maintained the sulphur content of the bunker at less than 1.5% which
is way below the global average of 4.5%. The company has also taken care to
avoid threat to species for which the company conducts deep water exchange as
suggested by the International Maritime Organisation. Also they have
implemented ballast water treatment systems on their vessels. The latest
statistics suggest that around 13% of its vessels have this system implemented
which is much above the regulations stated by the IMO. (Kliger, 2014)

WWL adopting IPS (integrated planning solutions) program

With more competitors coming up in the outbound logistics business an
organisation has to seek for all the opportunities to reduce cost and increase
customer service and to do this effectively WWL has adopted Integrated planning
system provided by Quintiq.
Prior to IPS, the planning was done manually with the customer care
representatives sending information about the incoming and outgoing cargos in a
port. The planners would see the data and allocate the cargos to a particular
vessel. The next step would be space allocation in the vessel. All these planning
were done with the help of excel spread sheets and some in house applications
like SCHVOP, SAGA. Problems started happening when there were last minute

changes in the booking or schedules and with people working in various parts of
the world there was a need for highly integrated planning solution. This lead to
the adoption of IPS by WWL.
IPS was launched in WWL since March 2009, the significant increase in efficiency
level was seen immediately by WWL.WWL planners now share real time data
which help them in planning effecting and utilising the vessel space efficiently.
IPS now provides necessary information in order for the planners to make
effective decisions, for example, micro charts showing vessel space allocation vs.
booking help planners to immediately notice any discrepancies and re plan if
required. This solution has helped WWL to accommodate more customer request
and reduce their cost which in turn can be passed over to the customers.
Another advantage is that IPS is integrated with IT applications which are used
by WWL allowing planners not only to see cargo forecast but also know what is
actually happening in the supply chain.
WWLs e-business
With everything going online in the industry, WWL has developed various web
applications for both its internal and external customer in order to increase the
efficiency of the operations and add value to its customer. WWL outsourced its IT
operations to various vendors and the major one being Cognizant technology
solutions.
WWL developed Sagaweb application where in a user can check the schedules
for a particular port or vessel and then make request for tariff rates according to
the user requirement. Sagaweb also allowed WWLs user to create bookings
online. (Wallenius Wilhelmsen Logistics)
Usually Bill of lading (BOL) is generated by the customer care executives after a
booking number is generated but it involved lots of human hours wasted in doing
manual task, WWL used IT solution by introducing WEBSI (web shipping
instructions) where in a user can himself create BOL once he is aware of the
booking number and he can also use this application to print BOL and receive
his/her cargo(s) from the port. Advance track and trace (ATT) was introduced by
WWL in order to update the user about the status of the cargo. ATT would tell the
location, status and other cargo related details to the user. (Wallenius
Wilhelmsen Logistics)
Even for WWLs internal operation various applications like Customs compliance
System(CCS), Data capturing system(DCS).CCS is used by WWL employees in
order to clear customs for the goods sent to each country and is customised
according to the regulations of the destination country. DCS is used with the help
of bar code scanner, when the cargos arrive at the port they are scanned and the
data is then fed to the systems which will be visible in DCS application. This data
in turn will be sent to other required applications like ATT, CQS (cargo quality
systems) using EDI. In total 14 web applications are used by WWL and TIBCO is

used as EDI in order for these applications to interact with each other and send
the necessary data.
BMW Case Study
WWL came up with a SCM solution for BMWs outbound logistics. The main goal
for WWL was to improve the predictability and visibility of BMWs outbound
global supply chain, while simultaneously identifying administrative efficiencies
and streamlining the number of external supply chain contacts to a single
partner.
WWL worked with BMW to become the single point of contact and take all the
cars right from the factory from 8 different locations to the dealers in Australia
and New Zealand. The cars from the factory will be taken by road to the port and
loaded in the vessel. Upon reaching the destination port the vehicles will be
processed in the VPC and then transported by road or rail to the dealers.
(Wallenius Wilhelmsen Logistics)

(Wallenius Wilhelmsen Logistics)

This solution helped BMW to reduce the average lead time, improve on time
deliveries, better visibility and finally improved vehicle delivery to BMWs
customer, both the dealers and the end customers.
Conclusion
Two things that will drive the future of this industry is innovation in outbound
logistics and technology. From the research its clear that WWL has innovative
supply chain strategy and uses technology to its best in order to gain a
competitive edge. In order to sustain WWL should keep concentrating on its
environmental foot print and also update its technology whenever required to
add value to customer and reduce cost. The latest trend of having mobile
application should be the next step for WWL. Already WWL has implemented a
mobile app called m-Inspect which is used to perform inspection on automobiles
upon arrival and then do the necessary claims. In future WWL should try to move
its application to mobile and add more value to the customers (Kroneberg &
Ramberg).

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