university of finance & administration logistics systems [ na_ls ]
DESCRIPTION
University Of Finance & Administration LOGISTICS SYSTEMS [ NA_LS ]. Jiri Amler, M.A. [email protected]. LECTURE FRAMEWORK. ENGLISH programme (winter term 2013 ) Transport logistics – activities related to tangible and intangible operations - PowerPoint PPT PresentationTRANSCRIPT
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LECTURE FRAMEWORK
ENGLISH programme (winter term 2013)
Transport logistics – activities related to tangible and intangible operations Logistic technologies, its selection and exploitability Supplying Warehousing Related information systems Lean Management principles in logistics Within consultation: practical discussions on topical economical issues
INTERNATIONAL BUSINESS [B_IB] LOGISTICS SYSTEMS [NA_LS]
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LITERATURE
Alan Rushton, Phil Croucher, Peter BakerThe Handbook of Logistics and DistributionKogan Page Ltd., London 2010ISBN: 0-74974669-2
Andre Langevin, Diane RiopelLogistics System: Design and OptimizationSpringer Science+Business Media, New York, 2010ISBN: 0-38724971-0
Martin ChristopherLogistics and Suply Chain Management3-rd Edition, Pearson education Ltd., London, 2005ISBN-13: 978-0-273-68176-2
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Corporate Logistics
Systemic Division:
Manufacturing logistics – inbound, procurement, storing, component flow, warehousing, distribution
Transport logistics – tangible and intangible operation
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Transportation as a Logistics Process
Focus: fulfillment of customer´s needs and expectations
Requirements: highest possible flexibility preference on economical performance
Concerns:the above mentioned concerns both, goods and services, especially the transport services
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Content of Transport Logistics
Content of Transport Logistics is:
an application of logistic attitude towards organization and management of the supply (goods or services) movements through the transport network from the sender to the final consumer
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Meaning of Transport Logistics
Transport logistics is the second most important part of the corporate logistics, after the manufacturing logistics
Specific segment of the transport logistics is a freight forwarding logistics
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Complex Logistic Process in Transport
Activities related to the tangible (material) operations - transportation, storing, selection/sorting, dispatch, consolidation and deconsolidation of loads
Activities related to intangible(non-material) operations – freight forwarding, trading, financial, customs clearance and insurance
Services related to previous – supportive, informational, consulting, social
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Requirements to Freight Transporters
Logistics put narrow-specified and relatively heavy requirement on transporters:
Capacity flexibility and specialization in services provided
Combination capability among various transport systems
Speed and flexibility of services
Multi-purpose utilization of accessible transport systems and devices
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10.
Logistics Implementation
Logistics seem to be the last opportunity for company to acquire the competitive advantage and increase the effectivity.
The competitive advantage could be acquired only through beating the European standard.
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COST / SERVICE LEADER
COST / PRODUCTIVITY ADVANTAGE
capacity utilizationasset turn
low inventorylow wastage
VALUE ADVANTAGEtailored service
distribition chanel strtgreliability
responsivenessinformationflexilbility
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Ten Commandments
I. Focus on customersII. Integrate log. systemIII. Tight log. with strategyIV. Make log. chain flexibleV. Create information systemVI. Make strategic alliancesVII. Quantificate, measure, countVIII. Use log. controllingIX. Follow the financial relationsX. Educate the staff
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Tangible Logistic Operations
The goods and materials are transported according to customized logistics technologies
Logistic chains often utilize principles of manipulability (possibility to move and stowe the goods), using always the same type of technical tools.
Criteria: amount of supply, volume/weight, size of load unit, regularity of flow, season, demand, product life cycle
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Selection of Transport/Storage Tools
The key issue - thorough and relevant choice of manipulation, transport and storage equipment
All mentioned equipment shall be in concert with particular types of loading and manipulation units for operations being carried out throughout the logistic chain.
Examples: palets, cage-rollers, big-bags, IBC-containers.
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Logistics Technologies
Complex:
Just-in-time (vs. Just-in-case) Hub&Spoke Kanban House-to-house Quick Response (QR) Efficient Customer Response (EQR) Intermodal (combined) transport
+ classical (group), telematic (EDI, RFID) and virtual (simulation, visualization)
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Just-in-Time
Objective: zero inventory, ultimate quality Way: ultimate cooperation and coordination between
supplier and customer Inventory become obsolete (redundant)
Characteristics: Quality control – TQM, ISO Regular reliable delivery Nearshoring Cooperation on methods of value stream mapping
analysis
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JIT – Customer Value
Lower purchase price
Elimination of fixed costs in storage, warehouse staff,
energy consumption
Lower capital allocation in inventory
Savings from significantly faster reaction of management
to eventual drawbacks or errors
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JIT – Main Objectives
Compression of non-value adding operations (Ishikawa) Effectivity and efficiency rise Decrease of total cost Shortening of customer´s order cycle time
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Customer´s Order Cycle
Time from receipt of order to physical supply dispatch
Consists of time for procurement, production and
distribution
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Procurement Production Distribution
Logistic Lead Time
Customers order cycle time
Order fulfilmentLead-Time Gap
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Total Costs & EOQ
Total cost = purchase costs + ordering costs + holding costs
Q= order quantity Q´= optimal order quantity D= annual demand quantity of the product P= purchase cost per unit S= fixed cost per order (not per unit, typically cost of ordering and shipping and handling. This is not the cost of goods) H= annual holding cost per unit (also carriing or storage cost)
Economic Order Quantity
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Hub & Spoke
Regional economic activities in region are center-bound, where the small loads are consolidated or re-consolidated
The delivery of smaller loads is done by the flexible road transport within the inner attraction radius
while
The key transport between regional hubs is carried out by capacity transport.
Good influence on demography, environmentally positive Key usage in courrier services
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21.
Kanban
Developed by Toyota Motor Co. 1950-1960s The method of supplying parts and materials into the production in the moment of neccessity – supply timing
KANBAN = card, tag. The production line is devided into separate work places with strictly defined operations – selling / buying points
Mutual sales of tags – the seller is a buyer at the same time „Sale“ of defined material or semiproducts neccesary for further
operation Byuer sends tag-order to his supplier Supplier sends required volume of goods in full quality with tag-
delivery note Both are not allowed to create stock, time and quality pressure
eliminates failure and enables continual control
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22.
Kanban
Kanban system is suitable for repeating and high-volume production of the same products with long life cycle
The method is based on:
design of self-managed regulatory units and sectors
the strategic and operation management is still allocated to the HQ
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House to House
The oldest sytem, based on providing the full transport services on one single transport document
In CZ – most often by road or rail, or eventually combination of both
Today, few company have own sidetrack (rail), therefore the load is delivered by combination of vehicles
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Quick Response
Used in retail sector for store replenishment
The main subjects – producer and retailer (short chain)
Utilization of combination of EDI and bar-code within all chain links
Benefit:
inventory reductionavioding lack of availability of goodsmanipulation operation reduction lead-time 24-48 hours
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Efficient Customer Response
Upgrade of QR, designed for food&drink retail
The main subjects – producer with his supplier and wholesaler & retailer (long chain)
Utilization of full automated product identification, of EDI and bar-code within all chain links + electronic monetary exchange and real-time banking data
Benefit:
inventory reductionavioding lack of availability of goodsmanipulation operation reduction lead-time 24-48 hours
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Efficient Customer Response
Supportive strategies:
Supply chain management strtg – to stabilize flows of goods with minimum inventory volumes
Product groupage strtg – to stabilize adequate logistic infrastructure and process management
New product introduction strtg
Sale promotion actions – done exactly where they can target and hit the max. possible auditory
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Intermodal Transport
Main carriage : rail inland waterway sea (reefer) local pickup and delivery by road
air cargo – occassional usage due to cost
Main device: containers or interchangable carriage units (trailer)goods is being transported in one unit while means of transport change in sequence
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Intermodal Transport
Loading units : palets containers interchangable trailer conventional trailer on railway carriage complete truck on railway carriage combirail - trailer on rail undercarriage
Main benefit: combination of ways without re-loading the goods globaly unified and standardized ITU (Intl. transport unit)
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Accompanied Intermodal Transport
Complete truck on railway carriage :
Ro-La High investment exposure Economy on 200 – 400 km route Low noise and emission exposure Driver rests
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Non-Accompanied Intermodal Transport
Containers and interchangable trailers :
Easy re-load and trans-shippment Benefit – broad network of terminals and depots Economy on > 500 km route, night mode Any carriage is aplicable
Con: high infrastructure, hardware and organization
investments
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31.
Warehousing
Important part of logistics system providing storage of the
goods in place of origin
Abridging the space between place of origin and place of
consumption
Cross over space and time
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Functions of Warehousing
1. Movement of goods/materials
Receiving Transfer / stowage Reserve storage Order picking Sortation Collation and added value services Marshalling and dispatch
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Functions of Warehousing
2. Storage of goods
Time definite – reserve storage for replenishment Mid-term – bumper reserves
peak-season goods product modification speculation specific business terms
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Functions of Warehousing
3. Transfer of information
Real-time analysis of volumes
real inventory in-transit status of goods inventory allocation inbound / outbound orders customer orders storage size
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Electronic Data Interchange
Transfer of related documents (order advise, packing
list) between the IT systems of concerned companies
Replacement of mail, fax etc.
Condition: standardized form of docs Compatibility of IT networks
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36.
Intangible Logistics Operations
Freight forwarding (spedition) – core of logistics
Integrating element among supplier, consumer and transport carrier (shipper)
Process of transport operation organization, management and coordination
Ensuring the goods will be delivered OTIF
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Spedition
Ruled by legal norms – Commercial Codex, Civil Codex, Trade Licence and Road Traffic Act
International legal system and Interest associations
Basic binding document – forwarding contract
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38.
Thank you for your attention
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