SUPPLY CHAIN MANAGEMENT :New Age and New Transformation for Sustainability

Jakarta, 16 October 2020

Presented by:

DR. NOFRISEL, SE, MM, CSLP, ESLog

• Chairman of Expert Board of Asosiasi Logistik

Indonesia (ALI)

• CEO PT Dewata Freight International, Tbk

AGENDA

1

2

3

INTRODUCTION

SUPPLY CHAIN MANAGEMENT :

Concept, Context, and Implication

Slide 2

OPPORTUNITIES & SUSTAINABILITY

CONCLUSION

PROFILE :Dr. Nofrisel, SE, MM, CSLP, ESLog

• More than 30 years experience in logistics, retail and supply chain management, SOE and private companies

• Currently active as :– President Director of PT Dewata Freight International, Tbk

– President Commissioner of PT Samulos Harmoni Energi Perkasa (Mining Logistics)

– President Director of PT Jawa Barat Logistik

– Senior Technical Advisor of PT Gatotkaca Trans Systemindo (provide IT Logistics Ecosystems)

– Senior Technical Advisor of BNPB for National Humanitarian Logistics Cluster

– Executive Director of SEMBADA PRATAMA (training and educations in Logistics & SCM)

• Organizations :– KADIN : Head of Permanent Committee of Logistics, Supply Chain and Human Resources

– ALI : Chairman of Expert Team

– APTRINDO : Deputy Chairman

– ALFI : Deputy Chairman of West Java

– APINDO : Member of Transportation Team

– ISMS : Head of Logistics and Supply Chain

• Teaches at several universities majoring in Operation Management, Strategic Management and Logistics & Supply Chain Management

• Consultant in Logistics and Supply Chain

• Speakers, Moderators and panelist in various conferences, workshops, FGD, both domestics and international

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1

INTRODUCTION

Slide 4

COVID-19 AND ITS

IMPLICATIONS

Slide 5

Evolution Concepts of

LOGISTICS & SCM

Slide 6

“When you drink a cup of coffee, you are

completing the final link in a global

chain of activities that made that cup of

coffee possible… That simple act of

shipping your coffee connects you to

peasant farmers in Colombia and

Indonesia, to dockworkers in Sao Paulo

and Mombasa, New Orleans and San

Francisco, and to many others in

between”.

(Talbot, 2004)

SCM : Individual level

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Supply chain management (SCM) is needed for various reasons:

• improving operations

• better outsourcing

• increasing profits

• enhancing customer satisfaction

• generating quality outcomes

• tackling competitive pressures

• increasing globalization

• increasing importance of E-commerce

• growing complexity of supply chains

8

Necessity of SCM

Slide 8

Supplier Factory Distribuitor Retail

First trade-off appears…

Service Cost

SCM : Organizational level

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RETAILER

SUPPLIERS

MANUFACTURINGDISTRIBUTION WHOLESELER

CONSUMEN

SUPPLY CHAIN MANAGEMENT VS LOGISTICS SERVICE

Flow of Goods, Cost and Information

Logistics Activities

SCM = F (Logistis Functions)

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Logistics Activities

Logistics Activities Logistics Activities

Logistics Activities

Logistics System

Inventory management system

Packaging system

Ware

housin

g s

yste

m T

ransport

sys

tem

LOGISTICS SYSTEM

OUTPUTINPUT

Logistics

PerformanceLogistics

Cost

ORDER

PROCESSING

SYSTEM

*) Source : Pfohl (1990)Slide 11

2

SUPPLY CHAIN MANAGEMENT :

concept, context and implication

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BASIC CONCEPTS :

Operations and Supply

Chain Processes

Slide 13

Conventional and

Contemporary Arrangement

of Goods Flow

Raw Materials & Parts Manufacturing Distribution

Raw

MaterialsStorage National

Distribution

Regional

Storage

Local

DistributionRetailers

Supply Chain Management

Raw

Materials

Distribution

CenterRetailersManufacturing

Custo

me

rsC

usto

me

rs

Conventional

Contemporary

Material flow (delivery)

Information flow (order)

Core component

Slide 14

SCM in the Manufacturing Industry

• SCM in the RMG Industry

• SCM in the Fishing Industry

• SCM in the Textile Industry

Slide 15

SCM in the RMG

Industry

Approved Goods

Fabric Item Non Fabric Item

Building/MachineriesHuman Resources

Cutting

Sewing/ Weaving

Make System 1

Washing

Finishing

Make System 2

Final Assembly

Assembly

&

Quality Checking

Finished Goods

Shipment Audit

Outpu

t

Inventory in

Warehouse

Proce

ss

Packing

Quality Checking

Rejected

Goods

Repair/

Alteration

Shipment Dispatch

Slide 16

SCM in the Fishing Industry

Fish

FarmerAratdar

Paiker

Retailer

Consumer

Paiker-I

Aratdar

Paiker-II

Retailer

Pangas

(live)

Rohu, Catla,

Tilapia

Nikari

Supply Chains of Pangas,rohu, Catla, Tilapia in Bangladesh

Depot

Fish

Farmer

Aratdar

Bepari

Retailer

Overseas

Consumer

Account

Holder

Processing

Plant

Domestic

Consumer

Paiker

Paiker

Aratdar

Retailer

Overseas supply chain

Domestic supply

chain

Local

market

Distant

market

Supply Chain of Hilsha in Bangladesh

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SCM in the Textile

Industry

Outsource Cotton

Yarning Fabrication Dyeing

Customer

Garments Retailer Garments

A typical Textile Supply Chain

Outsource Yarn

Fabric

Dyed fabrics Garments

Garments

Retailer Customer

Outsource

Fabric

Dyed fabrics

Outsource

Dyed fabrics

Modified Textile Supply Chain

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Supply Chain in Tourism

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University

Students

Internal & External Projects

Graduates

Supplied Inputs

(Raw Materials)

Supplied Outputs

(Finished Products)

Research Outcomes

Society

Process Consumer

Holistic View of Educational Supply

Chain

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Simplified Form of Supply

Chain Management for the

Universities

Suppliers

- Education Suppliers

- Research Suppliers

Service Provider

(University)

· Education

- Development

- Assessment

· Research - Development

- Assessment

Customers

· Education

Customers

· Research Customers

Consumer

Society

Customer

Supplying I/PSupplied

InputsSupplied

Outputs

Customer

Consuming

O/P

Finished

Products

Raw

Materials

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An Integrated Supply Chain for the Universities

Education

DevelopmentEducation Assessment

Research Development

Research

Assessment

Students

Research Projects

Education

Supply Chain

Research

Supply Chain

Suppliers

Supplied Input

University (Process)

Supplied Output

Consumer

Education Suppliers

Graduates

Research Suppliers

Research Outcomes

Research Customers

Education Customers

Society

Customers

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3OPPORTUNITIES & SUSTAINABILITY

Slide 23

Opportunities

• Product Innovation

• Process innovation and improvement

• Implementation of relevant technologies

• Differentiation and Diversification

• Building capabilities and HR Competencies

• Collaboration and partnerships

• New business model and customers

Slide 24

Industri 4.0 and Logistics

Responses

Automation :

• Port Management

• Warehouse

Management

• Transportation

Management

• Distribution Center

• Courier Service

• Cold chain

management

• Fulfilment Center

• etc

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Five Trends Driving

Supply Chain Innovation

in the Pandemic

• Managing Supply Chain Disruption – Innovation, Supply Chain Resilience

• Improving Supply Chain Visibility – Technology, Data Analytics, Communication with primary suppliers, Inventory management systems, Automation

• Deploying Advanced Automation Technology –Robotics, New methods

• Diversifying Transportation Modes – Analytics, AI

• Reconfiguring Supply Chains – Shorter Supply Chain

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Sustainable Supply Chain Management

• Sustainability in the supply chain encapsulates a number of different priorities: Environmental stewardship

Conservation of resources

Reduction of carbon footprint

Financial savings and viability

Social responsibility

• All supply chains can be optimized using sustainable practices.

• Supply chain sustainability practices, in order to succeed, must deliver improved environmental performance within a financially viable operating construct.

Slide 27

Shared Capacity

Logistics

Intelligent

Connected

End-to-End

Visibility

Financing Value

Chain

Ecosystem

PlatformAutomation

Manufacturer

(FMCG, others)

BUMN/OtherEnterprise

Distributor/

Logistcs Player

Rural/ UMKM

Managed

Logistics

Total ICT

Services

Managed

Logistics

Operation

Services

Managed

Logistics

Business

Services

Distribution Center

Depo

Point

Toko

Warung

EndCustomer

Cross Border

Partners - collaboration

SCM and Value-Added Service

Long-term Platform in Logistics Business

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4

CONCLUSION

Slide 29

How to compete in

supply chains era?

Adding

customer

value

Reducing

costs, and

expanding

margins

In highly competitive markets, we can compete

by doing one or both of the following:

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Logistics Training

Framework

Training

Inclass Training

On floor Training

Cross Function

On The Job

Training

Project Assignment

Coaching &

Mentoring

Formal

Learning

Informal

Learning

20%

80%

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Explicit and Tacit Knowledge :dua hal yang turut mempengaruhi perspektif

Tacit Knowledge- Embedded in individual experience

- Highly personal

- Hard to articulate

Source: Nonaka and Takeuchi (1995)

Explicit Knowledge- Can be articulated

- Expressible in words and numbers

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END OF

SLIDES

THANK YOU

Dr. Nofrisel, SE, MM, CSLP, ESLogEmail: nofrisel@yahoo.com

HP : 0856-213-6262

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