logistics challenges for manufacturing sector

Logistics Challenges for Manufacturing Sector

Presented by Olusegun Adekoya

Quality, R&D Manager ISO 9001:2008 Lead Implementer, PECB

ISO 17025:2005 Lead Implementer NQIP/UNIDO (in view)

Challenge versus Risk

PAST FUTURE PRESENT

CHALLENGES POTENTIAL RISK PROBLEMS

Logistic Planning

Logistic Plan

15/03/16 Logistics Challenges Facing Manufacturing

Sector 2

RISK Versus CHALLENGE

Risk and challenge are two completely different things.

The main difference between a risk and a challenge is that a risk is something that has the capability to hurt, harm or injure;

A challenge is something that motivates, interests, or engages oneself.


Sector 3

Corporate Strategy = Business Challenge Solutions


Sector 4

What is Logistics?

Logistics is the . . .

“process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.“


Sector 5

Logistics as an Extension of Marketing Function

CORPORATE PROFIT

Maximization of the long-term profitability

Lowest total costs given an acceptable level of customer service


Sector 6

CUSTOMER SATISFACTION

Suppliers

Intermediate customers

Final Customers

INTEHRATED EFFORTS

Product

Price

Promotion

Place (distribution)

Logistics Challenge = Strategy Challenge

Logistic Strategy:

Logistics strategy is the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies, and which are reinforced through conscious and subconscious behavior within and between partners across a network.


Sector 7

Logistic Challenge = Strategy Challenge

Logistics strategy (is the set of) 1. guiding principles, 2. driving forces and 3. ingrained attitudes

(that help to coordinate)

• goals, • plans and policies,

which are reinforced through

conscious and subconscious behavior within and between partners across a network.


Sector 8

Logistics Strategy Development: A guiding Principle

CORPORATE STRATEGY

COMPETITIVE STRATEGY

LOGISTICS STRATEGY

Logistics Information System

Design

Logistics Process Design

Logistics Network Design

Logistics Organization Design


Sector 9

Logistics Processes

• Logistics Planning,

• Logistics Plan,

• Implementation of Logistics Plan,

• controlling the efficient, effective flow and storage of goods and services,

• controlling the efficient, effective flow and storage of related information,

from point of origin to point of consumption for the purpose of conforming to customer requirements.


Sector 10

Manufacturing Sector classifications

• Foods, Beverages and Tobacco • Chemicals and Pharmaceuticals • Base Metal, Iron and Steel and Fabricated Metal Producer • Domestic and Industrial Plastics: Rubber and Foam • Pulp, Paper and Paper Products, Printing and Publishing • Electrical and Electronics • Textile weaving Apparel, Carpet, Leather/Leather footwear. • Wood and wool Products/ Furniture • Non-Metallic Mineral Products • Motor Vehicle and Miscellaneous Assembly • EXPORT


Sector 11

LOGISTICS CHALLENGES – Strategic Objectives

Strategic Objectives Descriptions

COST REDUCTION

CAPITAL REDUCTION

SERVICE IMPROVEMENT

Minimizing the variable costs associated with movement and storage

Recognizing that revenues depend on the level of logistics Services Provided

• Minimizing the level of investment in the logistics system

• Maximizing the return on logistics assets


Sector 12

LOGISTICS CHALLENGES: Driving Forces

• Globalization • Urbanization/Urban Logistics • Mass Customization • Information and Communication Technology (ICT) • Increasing Cost of Real Estate in the Cities –

Location of warehouses • Traffic Congestion leading Increasing GHG

Emissions/ Exhaust gas Emissions • Fluctuating Foreign Exchange • Stringent Regulatory Requirements

15/03/16

Logistics Challenges Facing Manufacturing Sector

13

LOGISTICS CHALLENGES – Ingrained Attitude

Selecting a good logistics Strategy may yield a competitive advantage.

Logistics Strategy must not been seen as a less creative process than developing a corporate strategy


Sector 14

LOGISTICS CHALLENGES – Ingrained Attitude

1. OPTIMISTIC VEIW OF CHALLENGES= Opportunity – Internal Integration

– External Integration

2. PESSIMISTIC VIEW OF CHALLENGES = Problems – Internal Threats

– External Threats


Sector 15

LOGISTIC CHALLENGES – Ingrained Attitude

ATTITUDE DETERMINES ALTITUDE

– Job Design

– Job Description

– Standard Operating Procedure

– Quality Management System – ISO 9001:2008/2015 implementation and Certification

15/03/16


16

A Case Study of a Automobile Assembly Sector

Logistics System Design • Customer Requirements Gathering • Product and Service Characteristics • Resource Configurations • Parts/Material Ordering process • Warehousing Operations • Plants/Manufacturing Operations – Production Logistics • Physical Distribution • Logistics Information System • Reverse logistics • Customer Satisfaction


Sector 17


Type of logistics Services: 1. Procurement Logistics 2. Inbound Logistics 3. Warehousing 4. Service Parts Logistics 5. Production Logistics 6. Packaging Logistics 7. After-Sales Logistics 8. Urban Logistics 9. Reverse Logistics


Sector 18


Procurement Logistics Challenges:

• Customs Clearing Challenges – External Threats

• Port Issues and Container Transportation challenges

• Container Inspection Processes

• Challenges Intra-city and Inter-city Transportation of Containers

• Empty Container Handling Challenges

15/03/16


19


Warehousing/Inbound Logistics Challenges: • Container off-loading • Warehouse Management System

– Manual Processes – Computerized System – WMS Software – Inventory Management System

• Bulk Breaking • Material Handling System • Trucks Loading • Interconnectivity with Customers


Sector 20


Production Logistics Challenges: Material Handling programme

– Raw Material (Storage) Stock

– Work-In-Progress Stock

– Finished Goods Inventory

Material Handling Equipment, jigs and fixtures

Pallet Racks, Trolleys and Forklifts etc.,

Manufacturing and Logistics Trade-off

15/03/16


21


Production Logistics Challenges: Motorcycle Pallet Rack


Sector 22


Packaging Logistic Challenges:


Sector 23


Urban Logistic Challenges:

Last Mile Delivery of goods

KONGA.com

DHL

Service Parts Logistics Solutions

LAST MILE DELIVERY SOLUTIONS

– Motorcycle for distributing cigarettes

– Motorcycle Dispatch

– Tricycle for FMCG

15/03/16


24

What is your Plan?


Sector 25

Thank You


Sector 26

logistics challenges for manufacturing sector

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