lscm-1-2015 #2 introduction to lscm
DESCRIPTION
Introduction to LSCMTRANSCRIPT
1
I t d tiIntroductiontoto
Logistics and Supply Chain Management
Class #2Vithaya Suharitdamrong, Ph.D.
1‐201515 Aug 2015g
2Logistics and Supply Chain of “Value”Plan
Information Flow
Improve
Think in terms of End to End (E2E) in order to create Value
Management
Execute ControlWhat values are logistics and supply chain for?
We have to think as the whole of the value. Thinking in terms of process creating the valuent
Think(Pl i )
Think(Pl i )
Think(Pl i )
Think(Pl i )
Think(Pl i )n
Mana
gem
e
cutio
n
orm
ance
(Planning)
End Endcutio
n
orm
ance
(Planning)
cutio
n
orm
ance
(Planning)
cutio
n
orm
ance
(Planning)
cutio
n
orm
ance
(Planning)
Supp
ly Ch
ain
Move
exe
perf
oEnd End
ValueMove
exe
perf
o
Moveex
e
perf
o
Move
exe
perf
o
Move
exe
perf
o
ogist
ics an
d S
Do(Execute)
Input Output•Good•Fast•Cheap
•Better•Faster•Cheaper
Do(Execute)
Do(Execute)
Do(Execute)
Do(Execute)
ork,
this
is Lo
Flow of Values(Logistics)
Supply Chain Processes are functions in creating values according to the requirement of each value
p p
The target is the end point, not just finishing any functions of logistics process. It depends on the values at the end point of logistics and supply th
is fra
mew
o
Management
requirement of each value. values at the end point of logistics and supply chain management.
Have to win the game of competition, not just scoring points. Must complete the process, not just steps.
In t
My Lecture#215 Aug 2015
3Value Chain and Supply Chain
l h i f ( k )Value Creation Process of a glass
Value Chain = Process of (Make + Move)
S d Mi S d T k Gl F t l k Glass Shops
Value Chain of a glass
Values of Sand Mines Sand Trucks Glass Factory Glass Trucks Glass Shops
(Make) (Move) (Move)(Make) (Move & Store)
Values of
a glass
V l C f l k ll b i l l
Execution of value creating
process
Sand MineComp. A
Sand TrucksComp.B
Glass FactoryComp.C
Glass TrucksComp.D
Glass ShopsComp.E
Glass Supply Chain No.1
GlassNo.1
Value Creators of glass work collaboratively to create a glass.Better
Faster
ly ch
ains
p pCheaper
Better
Fasteretwe
en su
ppl
Sand MineComp. P
Sand TrucksComp.Q
Glass FactoryComp.R
Glass TrucksComp.S
Glass ShopsComp.T
Glass Supply Chain No.2
GlassNo.2
Cheaper
Better
Fastermpe
titio
ns b
e
Sand MineComp. K
Sand TrucksComp.L
Glass FactoryComp.M
Glass TrucksComp.N
Glass ShopsComp.O
Glass Supply Chain No.3
GlassNo.3
CheaperCom
Supply Chain = Process Owners of [ Make (Manufacturing) + Move(Logistics) ] My Lecture#215 Aug 2015
4Supply Chain and Value ChainValue Chain Thinking Process Design (Blueprint)
Improvementor Re-design
Determine processes or activities in value creationValue Chain
Value Chain
Changed Customer
Requirements
Think Design Analyze values until complete what customers want but it cannot be used It is just a design f th
We need to take the design of Value Chain to value creators in supply chains to use resources to create values according to design of value chain
Value Chain
OrdersSupply Chain Plan (Collaboration)
I f i Fl (C i i )
Supply Chain Thinking Process Execution
of the processes. according to design of value chain.
l f l ( )
Information Flow(Communication)
BetterSuppliers Flow of Values (Logistics) : Connection Faster
Cheaper
A Supply Chain is a network of value creators who execute the process
Suppliers
Internal Supply Chain (Source to Delivery)
A Supply Chain is a network of value creators who execute the process according to value chain in order to respond to customer requirements
Product (External) Supply Chain (upstream to downstream) My Lecture#215 Aug 2015
5Reductionism and Holism
OrgansHuman
Integrated
BicycleParts
Integrated
Organizations
Departments
Integrated
My Lecture#215 Aug 2015
6CSSMP’s Definition of Logistics
Logistics Management – Boundaries and Relationships Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling,transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees the logistics function also includes sourcing and procurement productiondegrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution‐‐strategic, operational and tactical. L i ti t i i t ti f ti hi h di t d ti iLogistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology
This definition considers logistics as a singular which means “unity”
So, I understand that logistics cannot have many meanings such as transportation, distribution, locations etc. On the other hand, those activities can be related to logistics.
My Lecture#215 Aug 2015
7Logistics as an integrating function
Values from each musical instrumentsValues from each muscial instruments
Values from each musical instruments
Values from each musical instruments
Logistics Management = An integrating Function
Supply Chain Management is an act of Logistics Management is to manage or to orchestrate) all musical Supply Chain Management is an act of
planning together. Which songs, Which notesor to orchestrate) all musical instruments to play in harmonize.
My Lecture#215 Aug 2015
8The Power of Two become One
Supply ChainDesign Chain and Value Chain
Value Designer
Value Creator and Deliverer
Thi k D i d D l
Source, Build and Distribute and SellValue Designer
Think, Design and Develop
My Lecture#215 Aug 2015
9What is a model?
A picture is a model of the real world and it is not real.p
The reality of the worldPeople create a model by building a mockup (painting) from the reality and they will y yuse the model in communication their thoughts and experimenting their and experimenting their thoughts without real implementation. A model is used for a test of decision used for a test of decision making.
This painting is a model for communicating and making decisions
My Lecture#215 Aug 2015
10Logistics Model Activities of planning together by using information flow in order to create logistics activities
Logistics Planning Customer Demand
Deci
sion
M
odel
Activities using information
Collaboration
Plan
ion
ance
Plan
on nce
Plan
on nce
atio
n
elD information
flow to support activities of logistics and planning.
CommunicationVolume
Availability VolumeAvailability
Exec
uti
Perf
orm
a
Exec
utio
Perf
orm
an
Exec
utio
Perf
orm
a
BetterF tLe
vel
Info
rma
Mod
l
Communication
Capacity
QualityAvailability
Capacity
QualityAvailability
Capacity
QualityAvailability
Distance
TimeQuality
ModeDistance
TimeQuality
ModeFasterCheaper
Serv
ice
L
Ope
ratio
nal
Mod
el
Connection
Cost
Q yTime
Cost
Q yTime
Cost
Q yTime
TimeCost
TimeCost
Factory Model
Transportation Model
Warehouse Model
Transportation Model
Retail Model
Logistics Model
กิจกรรม Logistics ที่
เราเห็นและไดส้ัมผัสModel เราเหนและไดสมผส
A logistics model normally consists of three sub‐model, Decision Model (Collaboration), Information Model(Communication) and Operational Model (Connection). The models must be linked to customer demand Logistics Model is foc sing on the linkages from decision model to information model and todemand. Logistics Model is focusing on the linkages from decision model to information model and to operational model in each functions of logistical processes until customers get products and services.
My Lecture#215 Aug 2015
11Logistics Model for International Trades
International International
Exporter’s logistics Model
International InternationalDomestic
MfgW/HTransportPort
ServiceInternational
Transport Custom W/HTransport Port
ServiceCustom International
Transport
gist
ics
ices
Mfg
Log
Serv
i
Logistics Service Providers
LSP’s Logistics Model My Lecture#215 Aug 2015
12Logistics Model for Exporter
International International
Exporter’s logistics Model
International InternationalDomestic
Logistics Process
MfgW/HTransportPort
ServiceInternational
Transport Custom W/HTransport Port
ServiceCustom International
Transport
•Customer location
•Order size and frequency
•Transport costs
•Service level requirements
•Factory and supplier locations
•Ports of entry for imported products
A logistics model is built to represent the details of work and resources in execution logistical Transport costs
•Transport vehicle types
•Transport modes
•Warehouse (Distribution Centre) size
•Ports of entry for imported products
•and many more key variablesresources in execution logistical process from factory to customer’s hands. The elements of decisions
i th f ll i Elements of ModelWarehouse (Distribution Centre) size,
location, resources, costs…are in the followings. Elements of Model
My Lecture#215 Aug 2015
13Logistics Model for LSPsI t ti l I t ti lInternational International
Domestic
Logistics Process (outsourced)
s
MfgW/HTransportPort
ServiceInternational
Transport Custom W/HTransport Port
ServiceCustom International
Transport
•Customer location •S i l l i t ort
es e for
LSP
s
•Customer location
•Order size and frequency
•Transport costs
•Transport vehicle types
•Service level requirements
•Factory and supplier locations
•Ports of entry for imported
products i i S i P id
Tran
spo
Serv
ice
Port
Se
rvic
e
Mod
el f
Transport vehicle types
•Transport modes
•Warehouse (Distribution Centre) size,
• location, resources, costs…
products
•and many more key variablesLogistics Service Providers
rs ogist
ics
Elements of a model, ,Su
pplie
r LoElements of a model
A logistics model is built to represent the details of works and resources in execution logistical process of LSPs from factory S
My Lecture#215 Aug 2015
(LSP’s customers) to customer’s hands (LSP’s customers) . The elements of decisions are in the followings.
14Logistics Engineering vs Logistics Management
Management is the one who operate the system by handling the customer orders and supplying the products and services by delivering them to customers
e
Supply Chain Planning
ng
m
orders
LogisticsPerspe
ctive
Logistics (Planning)
Plan Planf
Plan Plan Plan
Manufacturing (Planning)
Plan
nin
System
Point
omers
xSystem
s P Procurement Manufacturing Warehouse Transport Retail
ution
tem
End Cu
sto
make make move Retail Shops
x
End
End move R/M Supplier Manufacturing
PlantsTransportservices
Warehouseservices
move
XExecu
Syst
Engineering designs and builds a system (Planning and Executing) and its elements, logistics and manufacturing, to be operated as a supply chain and logistics system of a company but they are not the ones who operate the system. They improve and redesign the system to handle changes. My Lecture#2
15 Aug 2015
15The evolution of a supply chain from unaligned to alignedpe
ting in th
e ufacturin
g etho
ds of C
omvice and
Manu
andall New
Me
ctors from Serv
all, William Cra
cal Success Fac
2008
hard E. C
rand
aketplace‐C
ritic
Managem
ent)
Source : Ric
Global M
ark
(Resou
rce M
My L
ectu
re#2
15 A
ug 20
15
16Process ManagementPlan Re‐Plan : Process Improvement or
Master Planning
Pl Pl Pl Pl Pl
Plan Redesign ProcessIT for Collaborative Planning
Products& Services
rsmove make movemove move
PlanProcurement
PlanManufacturing
PlanWarehouse
PlanTransport
PlanRetail
emen
t
ject
IT for Operational Planning
Custom
ermove make move Retail x
End End
move Procurement Manufacturing TransportWarehouse
move
Man
age
X
S l vemen
t Proj
IT for execution
Process Execution (Manufacturing &Logistics Activities)
rocess M
ExecutionSupply
=Demand ?
ocess Im
pro
IT for Performance Measurement
Process Measurement (Control)
Process Improvement
Pr Control Pro
Performance Benchmark and Analysis
Company (internal) Process
Process ImprovementImprove
(Re) Plan
Execution Control
ImproveManagement Process Management
My Lecture#215 Aug 2015
17Logistics, Logistical and Logistically
JITLogistics Planning
Logistics (Status)
Logistics Management as an Integrating FunctionLogistics (adj) : ลอจิสติกส์
is the state of supply perfectly meet Demand at the end of Supply = Demand
Make MakeMakeMake
Move MoveMove
Store Store
Products& Services
Process Metrics
is the state of supply perfectly meet Demand at the end of process, so customers (users) can get the values that they demand. Logistics Management is the single function to integrate activities of moving and storing values in the whole process in order to achieve the objectives of the process Make MakeMakeMake
End to End Process
Process Metrics•Good•Fast
•CheapLogistics Activities (Integrated Functions)
Logistically (adv) : อย่างลอจิสติกส์is characteristics of how the process is executed or how the actions
order to achieve the objectives of the process.
JIT
Logistics (status)
is characteristics of how the process is executed or how the actions of work steps in the process are operated. Please note that logistics is how supply meet demand or how customers would receive the products or services. Moreover, to act or to operate is concerned about how the single plan is collaboratively created and
Think and plan logistically and link together to create logistics
Logistical Planning
Supply = Demand
Make MakeMakeMake
Move MoveMove
Store Store
Products& Services
Process Metrics
concerned about how the single plan is collaboratively created and sharing information for a seamless connectivity of value flow in the process.
Logistical (adj) : เชิงลอจสิติกส์ Make MakeMakeMake Process Metrics•Good•Fast
•CheapLogistical ActivitiesLogistics Activities with linkage and seamless attributes to create logistics
Logistical (adj) : เชงลอจสตกส
Execute or Flow Logisticallyis attributes of process elements that support the linkages of the perfect fit between supply and demand and delivering values from one step to another step seamlessly Moreover there are information
End to End Process
My Lecture#215 Aug 2015
step to another step seamlessly. Moreover there are information sharing between steps in the process in order to achieve the objective of the process, the logistics at the end of process.
18Logistics, Logistical, Logistically of Company Supply Chain
If you see planning and
collaboration or sharing risks
and rewards with common If you see the Optimal
(Supply meet Demand) or
Logistics (Planning)Manufacturing (Planning)
Supply Chain Planningand rewards with common
goals, this is Logistically(Supply meet Demand) or
the fitness, just in time, this
is Logistics
LogisticsPointiv
eg ( g)
PlanProcurement
PlanManufacturing
PlanWarehouse
PlanTransport
PlanRetail
g ( g)
Point
ustomersmove make move
Retail xE d d
move Procurement Manufacturing TransportWarehouse
move
X X X X Xrspe
cti
CuEnd End X X X X XLP.P LP.M LP.RLP.TLP.W LP.E2E
Logistics ofProcurement
Logistics of Manufacturing
Logistics of Warehouse
Logistics of Transport
Logistics of RetailI I I I I I
Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?ms P
er
Logistics of E2E (End to End)
Sup‐process Sup‐process Sup‐process Sup‐process Sup‐process
Supply emand? Supply emand? Supply emand? Supply emand? Supply emand?
Supply = Demand?System
Company (internal) Supply Chain LP.P = Logistics point of ProcurementLP.M = = Logistics point of Manufacturing
Process (End to End : E2E)
og s cs po o a u ac u gLP.W = = Logistics point of WarehouseLP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End)
If you see the status in the process (E2E) optimal (Supply meet
Demand) or fitted, so the process (E2E) is Logistical. My Lecture#215 Aug 2015
19
Transport Logistics
Transport and Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by Transport Logistics
Logistics (Planning)LogisticsM i
( ) g y g g yfocusing on transport as collaborative plan of E2E in order to respond customer needs
LogisticsPoint
Customersmove make move move
Transport x
Main
Modifier
Logistics (Execution) (L i i A i i i )
Customers
Supply =Demand
Transport xEnd End
The objective is to manage E2E which determine a
transport plan to respond Logistics of E2E
Logistics Transport
(Logistics Activities)
Look at execution process of transport logistically or being integrated by logistically sharing transport information to collaborative plan in order to respond to customers needs
Logistics (Planning) LogisticsPoint
Main
transport information to collaborative plan in order to respond to customers needs
Customersmove make move move
Transport x
Modifier
End EndThe objective is to manage transport
Logistics (Execution) (Logistics Activities)
Supply =Demand End End execution according to
logistics plan of E2E
My Lecture#215 Aug 2015
20
Warehouse Logistics
Warehouse and Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by Warehouse Logistics
Logistics (Planning) LogisticsMain
( ) g y g g yfocusing on warehouse as collaborative plan of E2E in order to respond customer needs
og st cs ( a g) LogisticsPoint
Customersmove make Storage
(move ) move
Warehouse x
Modifier
The objective is to manage Customers
Supply =Demand
Warehouse xEnd End
The objective is to manage E2E which determine a
warehouse plan to respond Logistics of E2E
Logistics (Execution) (Logistics Activities)
Logistics Warehouse Look at execution process of Warehouse logistically or being integrated by logistically sharing warehouse information to collaborative plan in order to respond to customers needs
Supply Chain
Logistics (Planning) LogisticsPoint
sharing warehouse information to collaborative plan in order to respond to customers needs
MainModifier Storage
Customersmove make move
Warehouse
Supply Demand
xEnd End
g(move )
The objective is to manage warehouse
execution according to Logistics (Execution) Supply =Demand glogistics plan of E2E
Logistics (Execution) (Logistics Activities)
Supply Chain My Lecture#215 Aug 2015
21
Procurement Logistics
Procurement and Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by Procurement Logistics
Logistics (Planning)Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on procurement as collaborative plan of E2E in order to respond customer needs
Main LogisticsPoint
Customersmove make Storage
(move )move
Procurement x
Modifier
The objective is to manage Customers
Supply =Demand
Procurement xEnd End
Logistics (Execution) (Logistics Activities)
The objective is to manage E2E which determine a
procurement plan to respond Logistics of E2E
Logistics ProcurementSupply Chain
Look at execution process of procurement logistically or being integrated by logistically sharing procurement information to collaborative plan in order to respond to customers
Logistics (Planning) LogisticsPoint
sharing procurement information to collaborative plan in order to respond to customers needs
MainModifier
Customersmove make move
Supply Demand
xEnd End
Storage(move )
Logistics (Execution)
ProcurementThe objective is to manage procurement
execution according to Supply =Demand Logistics (Execution) (Logistics Activities)
Supply Chain
glogistics plan of E2E
My Lecture#215 Aug 2015
22
Manufacturing Logistics
Manufacturing and Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by Manufacturing Logistics
Logistics (Planning)LogisticsMain
Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on manufacturing as collaborative plan of E2E in order to respond customer needs
LogisticsPoint
Customersmove make Storage
(move )move
Manufacturing x
Modifier
The objective is to manage Customers
Supply =Demand
Manufacturing xEnd End
Logistics (Execution) (Logistics Activities)
The objective is to manage E2E which determine a Manufacturing plan to
respond Logistics of E2E
Logistics ManufacturingCompany (internal) Supply Chain
Look at execution process of Manufacturing logistically or being integrated by logistically sharing manufacturing information to collaborative plan in order to respond to customers
Logistics (Planning) LogisticsPoint
MainModifier
sharing manufacturing information to collaborative plan in order to respond to customers needs
Customersmove make move
Supply Demand
xEnd End
Storage(move )
Logistics (Execution)
ManufacturingThe objective is to manage manufacturing execution according to Supply =Demand Logistics (Execution)
(Logistics Activities)
Company (internal) Supply Chain
glogistics plan of E2E
My Lecture#215 Aug 2015
23
Distribution Logistics
Distribution and Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by Distribution Logistics
Logistics (Planning)LogisticsMain
Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on distribution as collaborative plan of E2E in order to respond customer needs
LogisticsPoint
Customersmove make move
Distribution xmove
Modifier
The objective is to manage Customers
Supply =Demand
Distribution xEnd End
Logistics (Execution) (Logistics Activities)
The objective is to manage E2E which determine a
distribution plan to respond Logistics of E2E
Logistics DistributionCompany (internal) Supply Chain
Look at execution process of procurement logistically or being integrated by logistically sharing distribution information to collaborative plan in order to respond to customers needs
Logistics (Planning) LogisticsPoint
MainModifier
sharing distribution information to collaborative plan in order to respond to customers needs
Customersmove make move
Supply Demand
xEnd End Logistics (Execution)
move DistributionThe objective is to
manage distribution execution according to Supply =Demand Logistics (Execution)
(Logistics Activities)
Company (internal) Supply Chain
glogistics plan of E2E
My Lecture#215 Aug 2015
24
Retail Logistics
Retail and Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by Retail Logistics
Logistics (Planning)LogisticsMain
Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on retail as collaborative plan of E2E in order to respond customer needs
LogisticsPoint
Customersmove make move
Retail xmove
Modifier
The objective is to manage Customers
Supply =Demand
Retail xEnd End
Logistics (Execution) (Logistics Activities)
The objective is to manage E2E which determine a retail plan to respond
Logistics of E2E
Logistics RetailCompany (internal) Supply Chain
Look at execution process of procurement logistically or being integrated by logistically sharing retail information to collaborative plan in order to respond to customers needs
Logistics (Planning) LogisticsPoint
MainModifier
sharing retail information to collaborative plan in order to respond to customers needs
Customersmove make move
Supply Demand
xEnd End Logistics (Execution)
move RetailThe objective is to
manage retail execution according to logistics Supply =Demand Logistics (Execution)
(Logistics Activities)
Company (internal) Supply Chain
g gplan of E2E
My Lecture#215 Aug 2015
25Logistics and Logistics Management
Plan Re‐Plan : Process Improvement or
Logistics (Planning)
Pl Pl Pl Pl Pl
Plan Redesign ProcessIT for Collaborative Planning
LogisticsPoint
smove make movemove move
PlanProcurement
PlanManufacturing
PlanWarehouse
PlanTransport
PlanRetail
gemen
t
men
t
IT for Operational Planning
Custom
ersmove make move
Retail xEnd End
move Procurement Manufacturing TransportWarehouse
move
Man
ag
X X X X XLP.P LP.M LP.RLP.TLP.W
S l ct Im
provem
IT for execution
LP.E2E
Logistics (Execution) (Logistics Activities)
ogistics Execution
Supply=
Demand ?
gistics Projec
IT for Performance Measurement
Logistics Measurement (Control)
Logistics Improvement
Lo Control Log
Performance Benchmark and Analysis
Company (internal) Supply Chain
Logistics ImprovementImprove
LP.P = Logistics point of ProcurementLP.M = = Logistics point of ManufacturingLP.W = = Logistics point of WarehouseLP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End)
(Re) Plan
Execution Control
ImproveLogisticsManagement
Process Logistics My Lecture#2
15 Aug 2015
26Holistic View of Logistics
Logistics (Planning)
Pl Pl Pl Pl Pl
LogisticsPoint
smove make movemove moveective Plan
ProcurementPlan
ManufacturingPlan
WarehousePlan
TransportPlanRetail
Custom
ersmove make move
Retail xEnd End
move Procurement Manufacturing TransportWarehouse
move
X X X X XLP.P LP.M LP.RLP.TLP.W LP.E2EPe
rspe
Logistics ofProcurement
Logistics of Manufacturing
Logistics of Warehouse
Logistics of Transport
Logistics of Retail
Logistics of E2E (End to End)
I I I I I ISupply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?
stem
s
Sup‐process Sup‐process Sup‐process Sup‐process Sup‐process
Process (End to End : E2E)
Supply = Demand?Sys
Company (internal) Supply Chain LP.P = Logistics point of ProcurementLP.M = = Logistics point of ManufacturingLP.W = = Logistics point of Warehouse The result at the end of process is created from integration of LP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End)
p gprocess elements or its systemic structure of sup processes
which the whole is more than sum of its partsMy Lecture#215 Aug 2015
27Holistic View of Product Supply Chain
S l Ch i l i
Logistics (Planning)Manufacturing (Planning)
Supply Chain Planning
LogisticsPoint
ctive
PlanProcurement
PlanManufacturing
PlanWarehouse
PlanTransport
PlanRetail
Custom
ersmake make move
Retail Shops x
End End
move R/M Supplier Manufacturing
PlantsTransportservices
Warehouseservices
move
X X X X XLPC1 LPC2 LPC5LPC4LPC3 LP.E2Eer
spec
Company 1 Company 2 Company 3 Company 4 Company 5
End LP.C1 LP.C2 LP.C5LP.C4LP.C3 LP.E2E
Logistics ofCompany 1
Logistics of Company 2
Logistics of Company 3
Logistics of Company 4
Logistics of Company 5
Logistics of E2E (End to End)
I I I I I ISupply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?
tems P
LSP LSP
E2E (End to End)Company‐process
Product Process (End to End : E2E)
Supply = Demand?Syst Company‐processCompany‐process Company‐process Company‐process
Upstream Downstream
Product (external) Supply Chain LP.C1 = Logistics point of R/M SupplierLP.C2 = Logistics point of Manufacturing PlantsLP.C3 = Logistics point of Warehouse Services
Product Process (End to End : E2E)
LP.C4 = Logistics point of Transport ServicesLP.C5 = Logistics point of Retail ShopsLP.C6 = Logistics point of E2E (Product Supply Chain)
My Lecture#215 Aug 2015
28Holistic View of Company Supply Chain
S l Ch i l i
Logistics (Planning)Manufacturing (Planning)
Supply Chain Planning
LogisticsPoint
tive Plan
ProcurementPlan
ManufacturingPlan
WarehousePlan
TransportPlanRetail
Custom
ersmove make move
Retail xEnd End
move Procurement Manufacturing TransportWarehouse
move
X X X X Xrspe
ct
CEnd End X X X X XLP.P LP.M LP.RLP.TLP.W LP.E2E
Logistics ofProcurement
Logistics of Manufacturing
Logistics of Warehouse
Logistics of Transport
Logistics of RetailI I I I I I
Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?ms P
e
Logistics of E2E (End to End)
Sup‐process Sup‐process Sup‐process Sup‐process Sup‐process Supply = Demand?Syste
Company (internal) Supply Chain LP.P = Logistics point of ProcurementLP.M = = Logistics point of ManufacturingLPW L i i i f W h
Process (End to End : E2E)
p y ( ) pp yLP.W = = Logistics point of WarehouseLP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End) My Lecture#2
15 Aug 2015
29Central position of logistics in the enterprise between markets and productionbetween markets and production
Seamlessly, perfect fit, Just in Time with customer demand
Logistics is not just functions in execution process but it is an
function for integration.g
xx x x
Source : Michael Schenk ∙ Siegfried Wirth ∙ Egon M¨uller“Factory Planning Manual Situation‐Driven Production Facility Planning” 2010
Logistics FlowMy Lecture#215 Aug 2015
30Logistics and Supply Chain Thinking
ning
Logistics Planning (Collaboration)tics
ions
End Endto
Plan
n
Planning Planning PlanningLogist
Decis
Process
Logistics
form
ation
agem
ent P
Flow
LInf
gistics M
an
End End End End End End
Logistics F
Log
End End End End End End End End End End End End End End
gistics
orman
ce
My Notes of My Notes of Dr. Dr. VithayaVithaya3 3 Jun Jun 1515
Log
Perfo
Quality(No damages)
Quality(No damages)
Quality(No damages)My Lecture#2
15 Aug 2015
31A supply chain planning matrix
Strategic
Tactical
Operational
Procurement Production Distribution Sales
Source : Knolmayer, G.F., Mertens, P., Alexander Zeier, A. and Dickersbach, J. T. “Supply Chain Management Based on SAP Systems : Architecture and Planning Processes” 2009 My Lecture#2
15 Aug 2015
32
Supply Chain ThinkingSupply Chain Thinking
Collaboration(Co Planning)
Communication(Information Sharing)
(Co‐Planning)S&OP or
Supplier Relationship
Data & IT
My Lecture#215 Aug 2015
333C in Supply Chain Model
PlanDecision Flows
C ll b i
Measure Execute
Collaboration
MeasureExecute
Communication
Execute M ExecuteMeasure
ActionsConnection
Measure
(Re) Plan Improve(Re) Plan
Execution Control
ImproveSupply Chain
My Lecture#215 Aug 2015
34Performance : 3 KPIs – Effectiveness, Efficiency, Changeability
Measure KPI, check with the goal. If reach the goal, it’s ok or set the new goal higher. If not reach the goal nt
Analysis
not reach the goal, improve the process.
easuremen
t
Activities,Process
Changeability
Products & Services
Me
Measuremen
t
Change
Systems
Changeability CustomersOutput
Measuremen
t
If customers change their
requirements, we
M
Measure KPI, then check the target of resource utilization.
If the utilization is in control, it’s ok or improve process for better utilization.
have to change the processes. Analysis
AnalysisMy Lecture#215 Aug 2015
35
Scope levels of supply chains
Supply Chain Professionals must holistically look at supply chainSupply Chain Professionals must holistically look at supply chain.
CollaborationsCollaborations Collaborations
Collaborations
End to End
Working as individual functions with in supply chain is not Supply Chain Professional.Supply Chain Professional must define the boundary of supply chain as End
E d P d kto End Process and work as process management.
My Lecture#215 Aug 2015
36
Remember Supply Chain is all about Teamwork from pp yEnd‐to‐End and Leadership, not just individual functions like transportationfunctions like transportationor warehousing in thecompanycompany.
My Lecture#215 Aug 2015
37Dr. Vithaya’s Perspective on Logistics and SCM (Jellyfish Model)Upstream DownstreamEnd to End
Product Supply Chain Management
pSoft Side
Company
Plan Plan Plan
Source Make Deliver
Company Supply Chain Management
Plan Plan Plan
D li
Company Supply Chain Management
Plan Plan
S D li
CompanySupply Chain Management
Plan
Transport
CompanySupply Chain Management
Execution Execution Execution
Source(move)
Make Deliver(Move)
Flow of Values : Logistics
Execution Execution Execution
Source(Move)
Make Deliver(Move)
Flow of Values : logisticsExecution Execution
Source(Move)
Deliver(Move)
Flow of Values
Execution
Transport(Move)
Flow of Values
Custom
ersBetter
FasterCheaper
Hard Side
End to End End to End End to End End to End
CH
Logistics Flow My Lecture#215 Aug 2015
38
No Logistics Process
“Logistics” and “Not Logistics” how are they related to Supply Chain
Customers Customers
No Logistics Process
LogisticsActivities
Activities
L i ti i h
.and
ht co
st
Logistics is how customers
receive values at the right time and
the right place ith i ht t
No Logistics is how
customers receive values
at not the
anning
anning)
nning)
harin
g
Sharing
ties
g an
d st
orin
g.
effe
ctive
ly a
lace w
ith ri
gh with right cost
e
at not the right time and not the right
place with not right cost
y Ch
ain Pla
orative Pla
anning
rativ
ePlan
mation S
mation S
stics
Act
ivit
sical
mov
ing
o cu
stom
ers
d th
e rig
ht p
l
cust
omer
s ot
the r
ight
tim
eot
righ
t cos
t.
Supp
ly(Collabo Pl
Uncollabo
Inform
No Inform
Logi
s
vities
of p
hys
s of v
alues
torig
ht ti
me a
n
s of v
alues
to c
effic
iently
at n
ot p
lace w
ith n
o
( N
Activ
To m
ake f
lows
iently
at th
e r
To m
ake f
lows
ectiv
ely an
d in
end
not
the r
igh
My Lecture#2 15 Aug 2015
Tef
fici
inef
fe an
39From “Strategic” to “Tactical” to “Operational”
High VisionPlan
Plan
Execute Improve
LongControl
Execute ImprovePlan
Execute IWin
Control
Uncertainty
Wide
STRATEGIC
Control
Execute ImproveManagement process
Plan
Execute ITime
WidePlan Plan
Execute ExecuteImprove
ImproveInv Trans
Control
Execute Improve
Low
Scope
Short
TACTICALControl
Pl Plan Pl
ControlImprove
Plan
ExecuteShort
ExecuteImprove
Plan Plan Plan
Execute ExecuteImprove
ImproveSource Make Deliver Control
Execute Improve
Narrow OPERATIONALControl Control Control
My Lecture#215 Aug 2015
40Pyramidal reference framework for Supply Chain Management
Customers
Logistics FlowReverse Logistics
Source : Knolmayer, G.F., Mertens, P., Alexander Zeier, A. and Dickersbach, J. T. “Supply Chain Management Based on SAP Systems : Architecture and Planning Processes” 2009 My Lecture#2
15 Aug 2015
41Modeling Levels of Abstraction
AbstractTheory
ConcretePractices
My Lecture#215 Aug 2015
Mostly, we focus at concrete level which we can consume and utilize, and ignore thinking or abstraction which is the origin of things or concrete that we consume.
42Creating Supply Chain Roadmap(Guideline)(Guideline)
Your Company Values Customer Values
Question #1
agem
ent
rk
Question #1
SCOR GSCF
CM Process
ply Ch
ain mana
stics Networ
d GSCF on
SC
Strategic Supp
ions of Logis
SCOR and
Que
stions fo
r
48 Decis
100
Question #100
48 Decision
Supply Chain RoadmapMy Lecture#215 Aug 2015