logistics supply chain

43
Integrating the Supply Chain

Upload: diego-fernando-zambrano-jimenez

Post on 19-Nov-2015

258 views

Category:

Documents


9 download

DESCRIPTION

Logistica

TRANSCRIPT

  • Pressures to Improve LogisticsCustomers are more knowledgeable, and demand higher quality, lower costs and better service.Competition is getting fiercer, and organizations must look at every opportunity to remain competitive.There is changing power in the supply chain. Very large retail chains demand customized logistics from their suppliers.Other changes in retail markets include the growth of 24-hour opening, home deliveries, out-of-town malls, retail parks, telephone and on-line shopping.International trade continues to growOrganizations are introducing new types of operation, such as JIT, flexible manufacturing, etc.

  • Pressures to Improve Logistics (contd)Some organizations are turning from a product focus to a process focus. This encourages improvement to operations, including logistics.There have been considerable improvements in communication. Organizations are increasing cooperation through alliances, partnerships, and other arrangements. Managers are recognizing the strategic importance of the supply chain.Attitudes towards transport are changing, because of increased congestion on roads, concerns about air quality and pollution, broader environmental issues, etc.

  • Current Trends in LogisticsImproving CommunicationsImproving Customer ServiceOther significant trends:GlobalizationReduced number of suppliersConcentration of ownershipOutsourcingPostponementCross-docking

  • Current Trends in LogisticsDirect deliveryOther stock reduction methodsIncreasing environmental concernsMore collaboration along the supply chain

  • Three Important Themes for Logistics to ConsiderLean Logistics

    Agile Logistics

    Integration

  • Integrating Logistics within an OrganizationIntegrating logistics within an organization has all the related activities working together as a single function.This is responsible for all storage and movement of materials throughout the organization. It tackles problems from the viewpoint of the whole organization, and looks for the greatest overall benefit.In practice, it is difficult to integrate all the logistics within an organization.The supply chain consists of many different activities, with different types of operation, using different systems and geographically dispersed

  • Stages in IntegrationSeparate logistics activities are not given much attention or considered importantRecognizing that the separate activities of logistics are important for the success of the organizationMaking improvements in the separate functions, making sure that each is as efficient as possible.Internal Integration recognizing the benefits of internal cooperation and combining the separate functions into one.Developing a logistics strategy, to set the long-term direction of logistics..

  • Stages in IntegrationBenchmarking - comparing logistics performance with other organizations, learning from their experiences, identifying areas that need improvement and finding ways of achieving this.Continuous Improvement accepting that further changes are inevitable and always searching for better ways of organizing logistics.

  • Benefits of IntegrationGenuine cooperation between all parts of the supply chain, with shared information and resourcesLower costs due to balanced operations, lower stocks, less expediting, economies of scale, elimination of activities that waste time or do not add valueImproved performance due to more accurate forecasts, better planning, higher productivity of resources, rational priorities, and so onImproved material flow, with coordination giving faster and more reliable movements

  • Benefits of IntegrationBetter customer service, with shorter lead times, faster deliveries and more customizationMore flexibility, with organizations reacting faster to changing conditionsStandardized procedures, becoming routine and well-practiced with less duplication of effort, information, planning, and so onReliable quality and fewer inspections, with integrated quality management programs.

  • Integration can be difficult and involve major changes. There are, however, many benefits, and most companies have moved in the direction of internal integration.There are also the benefits of extending integration to more organizations in the supply chain. There are several ways of organizing this external integration, ranging from informal agreements to vertical integration. The most popular has some form of strategic alliance or partnership.

  • Logistics and Supply ChainLogistics Management

  • Seven-eleven convenience storeDescribe the key logistics processes at 7-11.What differences between the early reform and the regional distribution center at 7-11.What do you think are the main logistics challenges in running the 7-11 operation.

    Case study

  • Case study

  • Key issues

  • The Supply Chain ConceptDevelopment of the ConceptTotal systems cost - remains an important element of logistics analysis.Outbound logistics the warehousing and distribution of finished goods.Inbound logistics the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required.Value chain analysis integrated logistics activities.

  • Business Logistics in a Firm

  • A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage.

    The Supply Chain management Concept

  • The process starts with several external suppliers that move milk, cardboard, and plastic to the processing plant.After the milk is processed and packaged, it is delivered to retailers, who sell it to customers. The alternative delivery system is delivery from a warehouse directly to customers homes.Supply chain: structure and tiering

  • Supply chain: structure and tieringSupply chain can be fairly complex. The supply chain for a car manufacturer includes hundreds of suppliers, dozens of manufacturing plants (for parts) and assembly plants (for cars), dealers, direct business customers, wholesalers, customers, and support functions such as product engineering and purchasing.

  • Logistics concept

  • Activity 1

  • Key issue

  • Case study: Seven-eleven

    *

  • Case study: Seven-elevens distribution strategyDelivery arrives from over 200 plantsDelivery is cross docked at DC (over 80 DCs for food)Food DCs store no inventoryCombined delivery system: frozen foods, chilled foods, room temperature and hot foods11 truck visits per store per day (compared to 70 in 1974)No supplier (not even coke!) delivers direct

  • Case study: Seven-elevens Information Strategy

    Quick access to up to date information (as contrasts with data)High speed data network linking stores, headquarters, DCs and suppliersStore hardwareStore computerPOS registers linked to store computerGraphic Order TerminalsScanner terminals for receiving

  • Integrated Logistics Management

  • Material and information flow

  • Material and information flowMaterial flowInformation flow

  • Key issues

  • Creating logistics advantage: three basic waysLogistics advantagequalitytimecost

  • Creating logistics advantage: controlling variabilityVariability undermines the dependability with which a product or service meets target.

  • Order winners and order qualifiers

    Order winnersare factors that directly and significantly help products to win orders in the marketplace.Customers regard such factors as key reasons for buying that product or services.Different logistics performance objectivesOrder qualifiersare factors that are regarded by the market as an entry ticket.Unless the product or service meets basic performance standards, it will not be taken seriously.

  • The value chain: Linking supply chain and business strategyNewProductDevelopment MarketingandSales OperationsBusiness StrategyNew ProductStrategyMarketingStrategySupply Chain StrategyNew product DevelopmentOperationsDistributionServiceFinance, Accounting, Information Technology, Human ResourcesMarketing and Sales

  • How to Achieve Strategic FitUnderstanding the CustomerLot sizeResponse timeService levelProduct varietyPriceInnovation

    How to measure?Implied Demand Uncertainty

  • Levels of Implied Demand UncertaintyDetergentHigh Fashion

  • Understanding the Supply Chain: Cost-Responsiveness Efficient FrontierHighHighLowLowCostResponsiveness

  • Achieving Strategic Fit

  • Strategic Scope

    SuppliersManufacturerDistributorRetailerCustomerCompetitive StrategyProduct Dev. StrategySupply Chain StrategyMarketing Strategy

  • Drivers of Supply Chain PerformanceEfficiencyResponsivenessInventoryTransportationFacilitiesInformationSupply chain strategy and structure

    DriversCompetitive strategy

    *How does a supply chain make the efficiency / responsiveness tradeoff and position at the appropriate point - using Inventory, Transportation, Facilities, and Information decisions.

  • Considerations for Supply Chain Drivers

    Driver

    Efficiency

    Responsiveness

    Inventory

    Cost of holding

    Availability

    Transportation

    Consolidation

    Speed

    Facilities

    Consolidation / Dedicated

    Proximity / Flexibility

    Information

    What information is best suited for each objective

    *

    *

    *How does a supply chain make the efficiency / responsiveness tradeoff and position at the appropriate point - using Inventory, Transportation, Facilities, and Information decisions.

    *