Post on 19-Jun-2015
description
Dr. Marco Tieman (CEO LBB International & Adjunct Professor Universiti Tun Abdul
Razak)
Kuala Lumpur, 26 August 2014
Logistics Excellence: Creating a harmonious performance
www.lbbinternational.com2
Agenda
IntroductionIntroduction
Organising your supply chainOrganising your supply chain
How to get startedHow to get started
ConclusionConclusion
www.lbbinternational.com
Introduction
www.lbbinternational.com
A harmonious performance ...
www.lbbinternational.com
Logistics Excellence is the art of a conductor in front of the orchestra, recognising the specific qualities of the players in the orchestra (read: supply chain partners) and knowing how to weld these together into a harmonious performance.
www.lbbinternational.com
Using the specific qualities of the various players, the conductor composes and implements best practice solutions to form a balanced symphony.
www.lbbinternational.com
Logistics excellence is reached when the company has (1) short supply chain lead-times, (2) low variation in the supply chain, and (3) low waste in the supply chain.
www.lbbinternational.com
How fit is your supply chain?
www.lbbinternational.com
Organising your supply chain
www.lbbinternational.com
© 2
012
LB
B I
nter
nati
onal
Supply chain model
www.lbbinternational.com
Brand Value/Commercial
Strategy
Brand Value/Commercial
Strategy
Production & Distribution Strategy
Production & Distribution Strategy
Sourcing/PurchasingStrategy
Sourcing/PurchasingStrategy
Supply chain strategy
www.lbbinternational.com
Customer service objectives (order cycle time, inventory availability, order fill rate)
Logistics objectives (reduce lead-times, improve deliver reliability & flexibility, and reduce integral supply chain costs)
Supply chain objectives
www.lbbinternational.com
Inventory
Transporta-tion & Storage
HandlingValu
e d
en
sity
Packing density
1 10
100
100
1,000
10,000
Product characteristics
Source: Goor et al. (1999)
www.lbbinternational.com
What value we offer in the eyes of the customer…
Taste Preferences (flowers): stalk/stem (short, long), flower bud (open, closed) Halal: Muslim vs. non-Muslim country Packaging (colour, materials, portions) & labelling
Market requirements
www.lbbinternational.com
= Planning, coordinating and conducting processes and activities within a chain.
Logistics control
www.lbbinternational.com
Whe
re is
my
Cus
tom
er O
rder
D
ecou
plin
g P
oint
(C
OD
P)?
Logistics control
www.lbbinternational.com
Customisation -> CODP upstream -> need for fast, frequent and order driven delivery
Floating stock -> CODP downstream -> pipeline becomes virtual distribution centre
CODP
Logistics control
www.lbbinternational.com
Culture Organisation structure &
interdependencies ICT = qualifier!
Supply chain resources
www.lbbinternational.com19Source: Lambert et al.
(1998)
Supply chain business processes
www.lbbinternational.com
Supply chain network structure
www.lbbinternational.com
Efficiency (cost, profit, ROI) Effectiveness (brand, complaints, waste) Flexibility (mix flexibility, volume
flexibility) Responsiveness (lead-time) Robust (rejects, availability of assets)
Supply chain peformance
www.lbbinternational.com
© 2
012
LB
B I
nter
nati
onal
STRATEGIC FIT!
ALIGNMENT! ALIGNMENT!
Organising your supply chain
www.lbbinternational.com
How to get started
www.lbbinternational.com
The FIRST STEP is to map the current supply chain (AS-IS) for the organisation and measure its performance, strategic fit and degree of alignment.
www.lbbinternational.com
The SECOND STEP is to design the future supply chain (TO-BE) for the organisation with its targeted performance.
www.lbbinternational.com
The THIRD STEP is to improve the ‘fitness’ of the organisation:(1)identify quick wins -> motivation (2)training of staff -> capabilities (3)involve management -> endurance (4)establish project teams -> implementation power (5)establish a conductor -> coordination
www.lbbinternational.com
The FOURTH STEP is to implement improvement programs, in order to (1) shorten its supply chain lead-times, reduce its variation and waste; (2) establish strategic fit; and (3) ensure alignment with its markets.
www.lbbinternational.com
Conclusion
www.lbbinternational.com
Logistics excellence is the art of a conductor in front of the orchestra, recognising the specific qualities of the players in the orchestra and knowing how to weld these together into a harmonious performance.
Logistics excellence can be achieved by four steps: (1) AS-IS analysis, (2) TO-BE design, (3) improving the fitness of the organisation, and (4) effective implementation.
For more information on logistics excellence, please contact us!
LBB InternationalB-5-8 Plaza Mont Kiara
Mont Kiara50480 Kuala Lumpur
Malaysia
Dr. Marco TiemanChief Executive Officer
marco@lbbinternational.comwww.lbbinternational.com
www.logisticsexcellence.blogspot.com
Thank you