logistics excellence: creating a harmonious performance

Dr. Marco Tieman (CEO LBB International & Adjunct Professor Universiti Tun Abdul

Razak)

Kuala Lumpur, 26 August 2014

Logistics Excellence: Creating a harmonious performance

www.lbbinternational.com2

Agenda

IntroductionIntroduction

Organising your supply chainOrganising your supply chain

How to get startedHow to get started

ConclusionConclusion

www.lbbinternational.com

Introduction


A harmonious performance ...


Logistics Excellence is the art of a conductor in front of the orchestra, recognising the specific qualities of the players in the orchestra (read: supply chain partners) and knowing how to weld these together into a harmonious performance.


Using the specific qualities of the various players, the conductor composes and implements best practice solutions to form a balanced symphony.


Logistics excellence is reached when the company has (1) short supply chain lead-times, (2) low variation in the supply chain, and (3) low waste in the supply chain.


How fit is your supply chain?


Organising your supply chain


© 2

012

LB

B I

nter

nati

onal

Supply chain model


Brand Value/Commercial

Strategy

Brand Value/Commercial

Strategy

Production & Distribution Strategy

Production & Distribution Strategy

Sourcing/PurchasingStrategy

Sourcing/PurchasingStrategy

Supply chain strategy


Customer service objectives (order cycle time, inventory availability, order fill rate)

Logistics objectives (reduce lead-times, improve deliver reliability & flexibility, and reduce integral supply chain costs)

Supply chain objectives


Inventory

Transporta-tion & Storage

HandlingValu

e d

en

sity

Packing density

1 10

100

100

1,000

10,000

Product characteristics

Source: Goor et al. (1999)


What value we offer in the eyes of the customer…

Taste Preferences (flowers): stalk/stem (short, long), flower bud (open, closed) Halal: Muslim vs. non-Muslim country Packaging (colour, materials, portions) & labelling

Market requirements


= Planning, coordinating and conducting processes and activities within a chain.

Logistics control


Whe

re is

my

Cus

tom

er O

rder

D

ecou

plin

g P

oint

(C

OD

P)?

Logistics control


Customisation -> CODP upstream -> need for fast, frequent and order driven delivery

Floating stock -> CODP downstream -> pipeline becomes virtual distribution centre

CODP

Logistics control


Culture Organisation structure &

interdependencies ICT = qualifier!

Supply chain resources

www.lbbinternational.com19Source: Lambert et al.

(1998)

Supply chain business processes


Supply chain network structure


Efficiency (cost, profit, ROI) Effectiveness (brand, complaints, waste) Flexibility (mix flexibility, volume

flexibility) Responsiveness (lead-time) Robust (rejects, availability of assets)

Supply chain peformance


How to get started


The FIRST STEP is to map the current supply chain (AS-IS) for the organisation and measure its performance, strategic fit and degree of alignment.


The SECOND STEP is to design the future supply chain (TO-BE) for the organisation with its targeted performance.


The THIRD STEP is to improve the ‘fitness’ of the organisation:(1)identify quick wins -> motivation (2)training of staff -> capabilities (3)involve management -> endurance (4)establish project teams -> implementation power (5)establish a conductor -> coordination


The FOURTH STEP is to implement improvement programs, in order to (1) shorten its supply chain lead-times, reduce its variation and waste; (2) establish strategic fit; and (3) ensure alignment with its markets.


Conclusion


Logistics excellence is the art of a conductor in front of the orchestra, recognising the specific qualities of the players in the orchestra and knowing how to weld these together into a harmonious performance.

Logistics excellence can be achieved by four steps: (1) AS-IS analysis, (2) TO-BE design, (3) improving the fitness of the organisation, and (4) effective implementation.

For more information on logistics excellence, please contact us!

LBB InternationalB-5-8 Plaza Mont Kiara

Mont Kiara50480 Kuala Lumpur

Malaysia

Dr. Marco TiemanChief Executive Officer

[email protected]

www.logisticsexcellence.blogspot.com

Thank you

logistics excellence: creating a harmonious performance

Business

supply chain leadtimes

thefuture supply chain

supply chain network

supply chainwww

supply chainpartners

supply chainhow

thesupply chain

logistics excellence