the logistics system
DESCRIPTION
What is the company's logistics system? Because logistics is increasingly important? How do you design a new logistics system?TRANSCRIPT
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The logistics system
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Saturated market
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Healthy market
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Ideas
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Product Lifecycle
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Proliferation of the range
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Price war
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… fast suppliers
Quick lead time …
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Necessary flexibility
To be competitive:
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The lessons from Japan: The 4 strenght for a company
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Technolgy: to create needs
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The involvement of human resources
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Quality
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Logistics
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The different stages of logistics
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Material management
Before production:
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Supply Management
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Raw materials inventory Management
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Production Planning
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Distribution management
After production:
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Finished goods inventory management
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Warehouse Management
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Transport Management
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Logistic Manager
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Must ensure …
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The 7 right conditions
1. Right product2. In the right quantity3. In the right condition4. In the right place5. At the right time6. The right customer7. At the right cost
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The 7 right conditions
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Why logistics?
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A well-organized flow of materials …
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… increases the turnover
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… because it reduces delivery time
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… and improves service levels
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But at the same time reduces costs
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Inventory cost: before
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Inventory costs: after
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Warehouse costs: before
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Warehouse costs: after
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Transport cost: before
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Transport costs: after
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Integration of functions
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Because there’s an increasing need for logistics? The outsourcing
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The Outsourcing ….
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allows respect for delivery times
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but increases the flow of goods and information to manage
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Because there’s an increasing need for logistics? To save resources
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Logistics helps to save
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Thanks to BPR …
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Inventory and transport are razionalized
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Because there’s an increasing need for logistics? Customer service
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Are reduced delivery times
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Orders are completed
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What does make logistics
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Analyze the logistics system
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Designing the logistics system
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Build the logistics system
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Manage the logistics system
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This involves dealing with:Demand management
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Collect and Control orders
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Sales forecast
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This involves dealing with: Inventory management
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Location
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Coverage level
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This involves dealing with: Production planning
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Forecasting horizon
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Programming system
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This involves dealing with: Supplying
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Choise of supplier
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How and When to order?
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This involves dealing with: Distribution
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Distribution network
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Supply logics
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Warehouse Lay-out
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Transport
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This involves dealing with: Customer service
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What level of service to offer?
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This involves dealing with: Organization
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Which organizational structure?
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Which information system?
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Which automation systems?
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It’s necessary to measure:
- The level of stocks
- The level of service
THE ANALYSIS OF THE LOGISTICS SYSTEM
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Stocks affect the profit
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Service affects the turnover
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Where to intervene?
Where is the leak?
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The operating cycle is estimated to:
THE ANALYSIS OF THE LOGISTICS SYSTEM
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Establish the rationality .…
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… and coordination
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To eliminate the irrazionality …
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… and inefficiencies
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The analisys of the logistics system:
THE INFRASTRUCTURES
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To verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :
1) CHECK THE DISTRIBUTION NETWORK;
THE INFRASTRUCTURES
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2) CHECK THE FUNCTIONAL REQUIREMENT:
- minimum, medium and maximum annual pallets stock
per warehouse;- supply frequency;- structure and number of orders to evade;- type of product to manage.
To verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :
THE INFRASTRUCTURES
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3) CHECK THE TECHNICAL SPECIFICATIONS:
- number of loading and unloading doors;- lay-out;- storage and handling system.
To verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :
THE INFRASTRUCTURES
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The analisys of the logistics system:
How should be the organizational structure?
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Modern
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Efficient
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The analisys of the logistics system:
When the organizational structure is the right one?
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There’s a process responsible
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The organization chart in defined
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The job descriptions and the procedures are formalized and applied
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Working to target
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Inventory management
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Calculating turnover rate
IR = Dt / St
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Calculating duration index
ID = 1 / IR
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Calculating weighted average stock
S average=(s n + s n + .. s n ) /T1 1 2 2 n n
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Customer service: What is it?
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Large assortment
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Minimum order
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Delivery frequency
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Efficiency information system
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After sales support
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Suitable packing
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Adequate transportation
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Fast and reliable delivery
Ho do you get?
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Speed
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Product availability
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Flexible production system
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Customer service: Ho do you measure?
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Speed
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Punctuality
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Satisfied demand
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Average delay
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Readiness
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Design of a new logistc system
We start measuring…
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The service level indicators …
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… analyzed from customer perspective
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Choice of strategy
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Innovation strategy:
Flexible logistics
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Economic logistics
Cost strategy:
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Service strategy:
Rapid logistics
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The main components of the logistics system are 4:
• Distribution network
• Transport
• Stocks
• Supply
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Lean distribution network
Flexible Logistics:
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Branched distribution network
Rapid logistics:
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Centralized distribution network
Economic logistic:
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Rapid transport
Flexible logistics:
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Rapid logistic:
Urgent transport
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Economic Logistics:
Economics transport
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The product life cycle
The 4 stages:
1. Introduction2. Growth3. Maturity4. Decline
What is the right logistics for each?
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Introduction: low sales
Availability
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Growth: increase sales
Punctuality and quality
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Maturity: constant sales
Customization
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Decline: reduced sales
Low service
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Choice of service level
… to be competitive
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Ensure integration
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Formalize the design of the logistics system
Processes and methods
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Promote change
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Forecast
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Are made to:
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Are made to:
allocate resources better
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What are the main business forecast?
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Human resources requirements
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Raw materials
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Energy
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Technological system
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Financial resources
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Finished products selling
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Forecasting horizon
• very short (less 1 month)• short ( from 1 to 6 months)• medium (less two years)• long (more than two years)
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Forecast details
• item• product family• filial• etc. etc.
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Supply logistics service in house contract: example
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Under contract services
• bundling
• picking and handling
• external storage
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Loading and unloading
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Handling - a
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Handling - b
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Storage
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Picking
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Product bundling
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Palletizing