Logistics and Supply Chain Management Introduction

Transcription

1 Logistics and Supply Chain Management Introduction (Process hinking).. (Competitiveness) Business Equations () Business Values () = Customer Values () (People) (Make) (Product Values) Move Make or Store Move Source Make or Store Distribute (Business Process) (Move) (Logistics Values) Customers (echnology) Dynamics Alignment Business Enterprise Dynamics Business Environment 2

2 (Management) Management 1. (Control) Admin () 2 2. (Improve) 3 Make New Make Move New Move Make New Make Move New Move 4

3 SRAEGIC ACICAL / OPERAIONAL Long-term Structure and Business Process Design Medium-term Process Planning Short-term Execution 5 Vision () Strategic () actical () Operational () move make move move (Business Process) 6

4 (Sustainable) Product Design Value Chain () (Make) (Move) 7 Changes.. Changes.. Changes.. () It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change Charles Darwin () 8

5 (Porter's Value Chain) Value = () Value = () Company Infrastructure Support Activities Organization, People and Methods Systems and echnology Procurement Inbound Operation Outbound Marketing Service Logistics Logistics & Sales Primary Activities Competitive Strategy : Porter, (Logistics and Supply Chain) (Collaboration) (Supply Chain) (Supply Chain Process) Company Infrastructure Organization, People and Methods Systems and echnology Procurement Company Infrastructure Organization, People and Methods Systems and echnology Procurement Company Infrastructure Organization, People and Methods Systems and echnology Procurement Inbound Operation Outbound Marketing Logistics Logistics & Sales Service Inbound Operation Outbound Marketing Logistics Logistics & Sales Service Inbound Operation Outbound Marketing Logistics Logistics & Sales Service 10

6 (Extended Value Chain) Supplier s Value Chain (Product Value Chain) Channel Value Chain Customer s Value Chain Organization s Value Chain (Company Value Chain) Process Process Competitive Strategy : Porter, Supply Chain Dynamics Dr. Ron ibben-lembke 12

7 : CSCMP (Decision Making) (Cooperation) (Coordination) (Collaboration) Logistics Service Providers (LSP) 13 CSCMP Improve 5M+I (Plan) (Implement) (Control) (Flow) (Forward) (Reverse) (Effectiveness) (Efficiency) cy) (Product) (Services) (Customer Values) (Dynamics) (End to End) 14

8 Value Chain Make Move Make Move Make Value Customer??? Supply Chain (Make and Move)? Value Customer Manufacturing and Logistics Vl Value Customer Business Process 5M+I (Make) 5M+I (Move) 5M+I (Make) 15 = = = Company Infrastructure Company Infrastructure Company Infrastructure Organization, People and Methods Organization, People and Methods Organization, People and Methods Systems and echnology Systems and echnology Systems and echnology Procurement Procurement Procurement Inbound Operation Outbound Marketing Logistics Logistics & Sales Service Inbound Operation Outbound Marketing Logistics Logistics & Sales Service Inbound Operation Outbound Marketing Logistics Logistics & Sales Service Supply Chain Logistics 16

9 (Products) Man Material Machine Money Method Information (Customers) (Finished Good FG) Man (Services) Material Machine Money Method Information (Customers) Source : SMEs Projects : How I see the World (Ver.2.0) Sup ppliers Raw Material New Product New Model Supply Chain Co.1 Co.2 Co.3 Logistics Management Value Added Processes Product Design Customer Product or Service Value Logistics Value Values to Customers Supply Chain Management Control Good Fast Cheap Requireme ents Customers Change Better Faster Cheaper Value Chain Improve 18

10 () () () 19 (Value System) Make Value Creator Move Value Delivery Customers Manufacturer Customers Value Creator Customers On ime In Full Cost Agility Good Fast Cheap Responsive Saving 20

11 Logistics = Flow of Values () Logistics = Flow of Values Man Information Flow Material Money Value Creation Process Flow Customers Method Flow Machine ( ) () Values = Component Values and Customers Values 21 -> -> -> -> 22

12 Perspectives on Logistics vs SCM raditionalist Re-labeling Logistics SCM Logistics SCM Unionist Intersectionist SCM Logistics Logistics SCM 23 Dr. Vithaya s Perspective on Logistics and SCM Sourcing Company Supply Chain Delivering Soft Side Supply Chain Management (Collaboration) Plan Plan Plan Plan Plan Source RM/Inv MFG FG/Inv Deliver Hard Side Suppliers Execution (Move) Execution (Move) Execution (Make) Execution (Move) Flow of Values : Logistics Supply Chain Process End to End Execution (Move) Customers Updated Sept 1,

13 Dr. Vithaya s Perspective on Logistics and SCM Upstream Product Supply Chain Downstream Soft Side Supply Chain Management (Collaboration) Plan Plan Plan Plan Plan Company I Company II Company III Company IV Company V Hard Side Suppliers Execution (Move) Execution (Make) Execution (Move) Execution (Make) Flow of Values : logistics Supply Chain Partners End to End Execution (Move) Customers Updated Sept 1, Dr. Vithaya s Perspective on Logistics and SCM Upstream End to End Product Supply Chain Management Downstream Soft Side Company Supply Chain Management Plan Plan Plan Company Supply Chain Management Plan Company Supply Chain Management Plan Plan Plan Company Supply Chain Management Plan Plan ide Hard S Source Make Deliver ransport Source Make Deliver Source Deliver (move) (Move) (Move) (Move) (Move) (Move) (Move) Execution Execution Execution Execution Execution Execution Execution Execution Execution Flow of Values : Logistics Flow of Values Flow of Values : logistics Flow of Values End to End End to End End to End End to End Better Faster Cheaper Custo omers Updated Sept 1,

14 Critical Logistics hinking Skills 1. Logistics Intelligence (Knowing) : 2. Supply Connection (Comprehend) : 3. Supply Judgments (Applying) : : 4. Supply Consequence (Analyzing) : 5. Supply Strategies (Synthesizing) : 6. Logistics Resiliency (Reasoning) : 7. Power Projection Logistics (Evaluating) : 27 (Flow) Procurement Operations Distribution Logistics Performance Suppliers Procurement Operations Distribution Customers 28

15 the RIGH product, in the RIGH quantity, in the RIGH condition, is delivered to the RIGH customer at the RIGH place, at the RIGH time, at the RIGH cost. Source : (5M+I) (Make) (Move) (5M+I) (5M+I) () Updated Sept 1,

16 (Integration) (End to End) ( ) ( ) ( ) 31 Fragmentation (1940s-1960s) (1970s) (1980s) 1990s. 32

17 (Procurement) ( > ) (Raw Material Inventory Management) (Manufacturing Management) (Warehousing) (ransportation) (Distribution Management) (Retail Management) (Outsourcing) (Logistics Information Management) () () (. ) Updated Sept 1, (Decision Making) External Suppliers (Material Flow) Supply Chain Management Internal Supplier (WIP Flow) (Cooperation) Internal Customer External Customers (FG Flow) Sourcing Manufacturing Deliver Inbound Logistics Outbound Logistics Manufacturing Logistics Logistics Service Providers (LSP) (Logistics Management) 5M+I 34

18 (End to End) (Upstream) (Downstream) (Product Supply Chain) (Reverse Logistics) (End to End) (Source) (Delivery) (Company Supply Chain) (Product Supply Chain) 35 Co onventio onal Raw Material & Parts Manufacturing Distribution Raw Material Storage National Distribution Regional Storage Local Distribution Co ontemp porary Raw Material Supply Chain Management Manufacturing Material Flow (delivery) Information (order) Distribution Center Core component Retailers Retailers Customer Custome er 36

19 (Product Value Chain) (Product Supply Chain) (Collaboration) (Collaboration) (Decision) (Information) : Source : SMEs Projects / / / / / Source : SMEs Projects

20 (Performance Measurement) (Plan Execution) (Performance Measurement) (Plan Execution) Source Make Deliver Source Make Deliver (Customer Values) Source : SMEs Projects ies Supply Chain Activiti A () (Collaboration) anagement ra Company pply Chain Ma Intr Sup B Inter Company Supply Chain Management () Internal Logistics Activities Internal Logistics Activities 40

21 ies Supply Chain Activiti 5M+I A () (Collaboration) anagement ra Company pply Chain Ma Intr Sup B Inter Company Supply Chain Management () Internal Logistics Activities Internal Logistics Activities 41 echnology Paradigm Resources Complex Processes ECHNOLOGY Products Waste Fewer Resources Simpler Processes Better Products Less Waste Less Cost Lower Investment Less Risk Greater Value Faster Better Cheaper 42

22 (Upstream) (Competency) (Demand) (Downstream) (Analysis) (Supply) (Value creation) (Decision Making) (Money Flow) (Information Flow) (KPI) (Planning) (Control) (Communication) (Suppliers) (Information) (Method) (Collaboration) (Man) (Machine) (Data) (Material) (Coordination) (Input) (End to End) (Cooperation) (Output) (echnology) (Values) (Improve) (Plan) (Standard) - (Buy - Sell) (Changes) (Culture) (Domestics) (Global) (Logistics Activities) (Services) (Customers) (Product) 43 (ransportation) (Inventories) (Warehousing) vs. (Facility Location) 44

23 45 Value Chain Management Decision Chain Dema and Cha ain y Chain ment d Supply Managem tegrated Chain M Int Customers Value (Product) Value Chain Supply Chain Supply Chain Management Logistics Activities Logistics Management Physical Movement 46

24 he Value Chain Management Model Suppliers Inputs Demand Chain Management (Competitive advantage) Outputs Customer Deliver Fund ransfer R A W M A, L FINANCIAL LAYER Cost Control DECISION PLANNING LAYER VIRUAL OR INFORMAION LAYER Source Make Deliver PHYSICAL AND LOGISICS LAYER Fund ransfer P R O D U C Source Supply Chain Management (Competitive necessity) 47 Flow Management Controlling capacity Controlling Movement Controlling Inventory Make Make Make Move I Not Move (Inventory) 48

25 (Integration) (Process) (Flow) 49 (he Blindmen and he Elephant) 50

26 Abstract - Context - Concrete Abstract () Context () () Concrete () Procurement Raw material Inventory Manufacturing Finished Good Inventory Distribution Sales 51 Abstract - Context - Concrete Abstract () Context () () Concrete () 52

27 Abstract - Context - Concrete Abstract () Context () () Concrete () 53 (Supply Chain Manager) (Supply Chain Manager) (Information) (Value Added Process) 54

28 Possible Outcomes / Opportunities Leadership Competitive Advantage Decisions KPI Information Execution Where are you? Where could you be? Business Processes Value Competitive Disadvantage Value Chain Supply Chain 55 Supply Chain 56

29 (3) Malcolm Lewis 58

30 () () 59 Logistics () () () () () () () () () 60

31 61 CRM SRM -> -> -> 62

32 Key Success Factors Vision (Leadership) : () Supply Chain Collaboration : Decision Support System : Standard : Information echnology : Understand Customer Values : 63 (Experiment) (heory) (hinking) (Fact) Problems and Unknown facts (Practice) 64

33 65 66

34 Fundamental Disciplined Defensive Sufficient Economy Decoded 67 (hinking)

35 (Best Practices) Problem Modeling What? How? What? (Knowledges) (hinking) (Problems) (Business Process Improvement) Optimization Approach (Constraints) () ( ) ( ) What &How? (New Best Practices) 69 (Bullwhip Effect) 70

36 om Mc Guffry, Electronic Commerce and Value Chain Management, om Mc Guffry, Electronic Commerce and Value Chain Management,

37 ... om Mc Guffry, Electronic Commerce and Value Chain Management, (Bullwhip Effect)! 74

38 End-to-End Visibility Where s the material? When will it get here? $ Supports information flow and the notification of events... Manufacturer/Suppliers When will the product be available? Retail DCs Can we do an in-transit merge and save some When will time? my $ order be shipped? Stores Consumers <Henry Bruce, 1999> 75 Supply Chain: Manufacturing Example 76

39 Supply Chain: Service Example 77 Internal Value Chain: Local Focus Executive Management R&D Information echnology Operations Supply Management Logistics Finance Marketing Accounting Human Resource Management 78

40 Internal Value Chain: Company Focus Executive Management R&D Information echnology Operations Upstream Suppliers Supply Management Logistics Downstream Customers Finance Marketing Accounting Human Resource Management 79 SCM: Linked Value Chains Executive Management R&D Information echnology Operations Executive Management R & D Executive Management R & D Executive Management R & D Executive Management R & D Information echnology Information echnology Operations Operations Information echnology Information echnology Operations Operations Supply Management Supply Supply Logistics Management Management Logistics Supply Management Supply Logistics Management Logistics Logistics Finance Finance Marketing Marketing Finance Finance Marketing Marketing Accounting Human Resource Management Human Accounting Resource Management Finance Human Accounting Resource Management Marketing Accounting Human Resource Management 2 Accounting Human Resource Management 80

41 Simplified Logistics and Supply Chain hinking Upstream Value Chain Downstream Supply Chain Product Supply Chain Products Customers Company A Supply Chain Management Company B Company Supply Chain End to End Process Plan Company C Business Process Logistics Management Operation Management Logistics RM Activities Logistics Pipeline Source Make Deliver Source Deliver Source Procurement W/H Manufacturing Delivery W/H Distribution Supplier Selection Production Scheduling Order Mgmt Purchase Order Material Planning W/H management Receiving Process Capacity Planning ransportation Mgmt W/H Management FG Material Handling ransportation W/H Operation W/H Operation Layout Conveyor W/H Operation ransportation Make Move Inventory 81 Supply Chain Integration Common 82

42 83 (Business Process management) Cross-functional Inter-organizational Source : 1 84

43 (Internal Supply Chain) Organization Supply Chain Management eam Purchasing Department Production Department Shipping Department Information Information Information Supply Chain Process Sourcing Process Products Internal Supply Chain Production Process Products Delivering Process Payments Products Cus stomers 85 (External Supply Chain) Company 1 Company 2 Company 3 Company 4 A Supplier A ransporter A Manufacturer A Distributor Company 5 A Retailer Information Information InformationInformation Supply Chain Process Supply Chain Process Supply Chain Process Supply Chain Process Supply Chain Process Products Products Products Products Products Cus stomers Payments Payments Payments Payments Payments Supply Chain Management eam A Multi-Company or Collaborative Supply Chain 86

44 SCOR SCOR is structured around five distinct management processes Plan Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source Return Return Return Return Return Return Return Return Suppliers Supplier Supplier Your Company Customer Customer s Customer Internal or External Internal or External SCOR Model Standard descriptions of management processes A framework of relationships among the processes Standard metrics Management practices Standardized software alignment 87 Attacking Business Process Inefficiencies As-is process A S K Latency A A Latency S S K K Latency A Latency S K A S K Latency A S K Latency A S K Latency A S K llel be done in para Can Reduce latency between tasks Accelerate task completion Process redesign / optimization A S K Source : Douglas A. Volz and David M. Fisher BearingPoint, Inc. A A A A A A A S S S S S S S K K K K K K K A S K A S K A S K A S K A S K A S K A S K A S K K K K K K K K xx x x x x A S K A S A S A S A S K K K K Im mpact on Stakeho olders 88

45 Gap Analysis or Performance Management Gap 3 Develop A green field vision mance Perfor 1 Describe the As-Is situation Prepare conceptual design 5 and actions plan 2 Assess As-Is strengths & weakness 4 Develop the to-be process Barriers rade-offs ime 89 Multidimensional Framework For Logistics and Supply Chain Customers 12 2 Value 3 Value Chain 13 4 Supply Chain 5 Supply Chain Management 14 6 Logistics Activities 7 Logistics Management 15 8 Logistics Pipeline 90

46 Multidimensional Framework For Logistics and Supply Chain 91 (Metadata) / (Operational) Source : 1 92

47 (Information) Source : 1 93 (Real time) (POS) (Fill Rate) (Manufacturing) (Stock) (Retailers) Source : 1 94

48 Management Manufacturer Management ruckers Distributors ruckers Retailers Manufacturer elephony Infrastructure Direct Marketing Customers ransportation Source : 1 Overnight Delivery Infomediary and Outsourced Service Providers Distributors Database and Data Mining ransportation Retailers Customers Web Infrastructure Adapted from Information Architects, Richard Saul Wurman, editor, 1994 and Price Waterhouse, Source : 1 ( ) 96

49 Source : 1 ( ) 97 (Waste) (Lean Supply Chain) Sales Sales Sales s Sales s ime ime ime ime (Bullwhip Effect) 98

50 (Operational Challenges) DC S U P P LI E R S 1 C US S O M ER S // (Pull) 2. / / (Remove non value added) 3. (Flow) / /// (Consider the whole value chain) 4. (Waste) 100

51 (Lean) (Agile) (Command and Control) B2B (Daily Business Intelligence) 101 (Integrate) t / / / 102

52 (Better Visibility) (Safety Stock) / / 103 ake-away... (5 Whys) (Waste) 104

53 ? (Supply Chain Initiative) (Implementation) /// (Information Sharing) (rust) (Visibility) (Visibility) 105 Source : 1 106

54 () () ( ) (Lead time) ( ) Service Level () (Seasonality) Source : ips (VMI : Vendor Managed Inventory)! (Optimize) (Outsource) (Core Business) (Collaborate) (Delivery Frequency) 108

55 21st Century echnology (Collaboration) Upstream Midstream Downstream End-to- End End-to- End End-to- End 109 (Collaboration)? -, (Availability) (Lead times) (Inventories) Source : 1 110

56 hailand Logistics Strategic Plan 2554! $! ( $ 4 ( 7 82* 3%-! --, - 3, - 3 # - %, - 3 *4, - 3 *41 5 * '! # 111 vithaya@vithaya.com Book Published by E.I.Square Publishing