Logistics ExcellenceLogistics ExcellenceImperative & Instruments & ToolsImperative & Instruments & Tools

Sompong Sirisoponsilp6 November 2013

Challenges: Competing Priorities

CostGreen

QualitySafety QualitySafety

Responsive-nessReliability

A Critical Imperative for Logistics ExcellenceLogistics Excellence

• the proper positioning or state of adjustment of parts (as of a the proper positioning or state of adjustment of parts (as of a mechanical or electronic device) in relation to each other

• an arrangement of groups or forces in relation to one anotherwww.merriam-webster.com

Alignment 1Ali i t t t ith i ti l itAligning corporate strategy with organizational units

Corporate Corporate Corporate strategy

Corporate strategy

Production strategy

Production strategy

Logistics strategyLogistics strategy

Marketing strategy

Marketing strategystrategystrategy strategystrategy strategystrategy

Alignment 2Ali i l i ti t t ith tiAligning logistics strategy with execution

Logistics strategy

ProcessesProcesses

Resources

Alignment 3Aligning flowsAligning flows

Suppliers

SSource

Flow

Flow

owow

PlantsMake ervice F

ervice F

Flow

Flow

tion Flo

tion Flo

Distribution duct/Se

duct/Se

Work 

Work 

nformat

nformat

Distribution CentersDeliver Pr

odProd InIn

6Customers

Alignment 4Ali i KPI th h t th i tiAligning KPIs throughout the organization

Vertically & horizontally integrated performance measurements

Department 4Department 3Department 2

y y g p

CorporateDepartment 1 Department  4Department  3Department  2Department 1

IndividualsIndividualsIndividualsIndividuals

Alignment 5Aligning with other organizationsAligning with other organizations

Suppliers Company CustomersSuppliers Company Customers

Management Instruments & Tools• Visibility & Event management• Integrated planning system• Integrated planning system• Business process integration

T l t d l t d t• Talent development and management• Leadership

Visibility & Event Management • End-to-end visibility across all tiers in the supply chain• Ability to proactively and timely sense react respond • Ability to proactively and timely sense-react- respond

to events

Need to reduce, proactively allocate, or manage inventory held at various stages in the supply chain

Need to optimize the numbers of trading partners, suppliers, carriers, LSPs

Need to improve supply chain operational spped and/or accuracy

Increased stakeholder and customer demand for accuray and timeliness of inbound/outbound shipment events

Business mandate to reduce supply chain execution costs

0 5 10 15 20 25 30 35 40 45 50

Growing global operaitons/complexitiy

Percent of respondents

Top Pressures to Improve Supply Chain VisibilitySource: Aberdeen Group, May 2013

Percent of respondentsn = 149

Integrated Planning System• Decision support system (DSS)

Operational Tactical StrategicOperational Tactical Strategic• Asset optimization

Making trade off• Making trade-off• Effective mechanism for coordinating activities and

investments i e Sales & Operations Planning (S&OP)investments i.e. Sales & Operations Planning (S&OP)

Business Process Integration• From Task-oriented management to Process-oriented

managementmanagement• A number of frameworks available

• SCOR model• SCOR model• Lean• Six SigmaSix Sigma• Theory of Constraints (TOC)

Talent Development & Management

W ld Cl S l Ch i St t

Globalization/AEC SustainabilityStrategic Mgt.

World-Class Supply Chain Strategy

Value Creation and Realization

Product Development

Procurement and Exchanges Manufacturing Transportation Warehousing

Service Management and

Customer Specialty Areas

Supply Chain Planning

SupportInventory Management

Integration Mgt.Supply Chain Analysis Tools and Techniques

Supply Chain Relation Management Tools

IT Innovation Risks/Crises

Building the Right Supply Chain Performance Skills, (7/26/2003) Ascet Volume 5, By Dwight Dowdell, AccentureAdapted From The Accenture Supply Chain Academy

IT Innovation Risks/Crises

Leadership

Creating Logistics Excellence involvesCreating Logistics Excellence involves

• 40-50% organizational (or People) change management

• 30-40% process design

• 10 20% technology deployment People• 10-20% technology deployment

TechnologyProcess