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Overview Logistics Ops in Fmcg
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Transcript of Overview Logistics Ops in Fmcg
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8/8/2019 Overview Logistics Ops in Fmcg
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CLoCS - ITB, 16 Januari 2010
Logistics Operation Overview
in FMCG Industry
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AGENDA
Market & DemandCustomerService
Operation Group(CSOG)
LogisticsOverview
Supply ChainThe Big Picture
SupplyChain
CustomerService
Distributors (GT)
KPITowards Zero
Inventory Model(TZIM)
Initiatives
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AGENDA
Market & DemandCustomerService
Operation Group(CSOG)
LogisticsOverview
Supply ChainThe Big Picture
SupplyChain
CustomerService
Distributors (GT)
KPITowards Zero
Inventory Model(TZIM)
Initiatives
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Demand Potential Ranking among regions 2006 2010
based on growth, income per capita, population & distribution of income (1)
Region
Jakarta
Riau
North Sumatra
Nanggroe-Aceh D
West Sumatra
East Kalimantan
West Java
East Java
Central Kalimantan
PopulationGDP percapita
Expenditureper capita
Distributionof income Ranking
2
3
4
1
5
6
7
8
9
Source: LPEM University of Indonesia= Good = Not Good
MARKET & DEMAND (2)
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AGENDA
Market & DemandCustomerService
Operation Group(CSOG)
LogisticsOverview
Supply ChainThe Big Picture
SupplyChain
CustomerService
Distributors (GT)
KPITowards Zero
Inventory Model(TZIM)
Initiatives
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Supplier
Information Flow
Product Flow
SUPPLY CHAIN
LOGISTICSPRODUCTION COSTUMER
DEMANDSUPPLY(Internal company) (external company)
Reconcile?
$$$$$
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SUPPLY VS DEMAND: RECONCILE?
They both areIf Sales gave me
an accurate forecast,
we would provide
excellent service
I dont know what
my customers will
want in 3 months
If manufacturingwere more flexible, well
able to meet customer
requirements
We can only be
so flexible at
reasonable cost
Manufacturing& distribution
Sales &Marketing
Who is right ?
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DemandPlanning Marketing
Supplier
MPS
Information Flow
Product Flow
SUPPLY CHAIN
LOGISTICSPRODUCTION COSTUMER
DEMANDSUPPLY(Internal company) (external company)
Reconcile?
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Demand Planning / Forecasting
Strategic Plan
Annual Plan
Business Management
Supply
Demand
Demand drivers
Demonstrated capability
Supply Planning
Demand Plan
Demand - Supply Reconciliation
Cash-up(Turnover & Costs)
Business Decision Model
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct5
10
15
20
25
30
35
Volume
Demand Series Baseline
History Future
Event
Event
Innovation
Innovation
Baseline
Forecast
Event Forecast
Forecast New
Product
Forecast
Accurate forecast means higher turnover & lower cost
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AGENDA
Market & DemandCustomerService
Operation Group(CSOG)
LogisticsOverview
Supply ChainThe Big Picture
SupplyChain
CustomerService
Distributors (GT)
KPITowards Zero
Inventory Model(TZIM)
Initiatives
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Supplier
Information Flow
Product Flow
LOGISTICS OVERVIEW
LOGISTICSPRODUCTION COSTUMER
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TYPICAL DISTRIBUTION NETWORK
COSTUMER 1
COSTUMER 2
COSTUMER 3
COSTUMER 4
COSTUMER 5
COSTUMER 6
Manufacturing Site
(B)
Manufacturing Site(A)
Central DistributionCentre
DistributionCentre 1 Distribution
Centre 2
DistributionCentre 3
National Demand
Area Demand
National Supply
Area Supply
Area Demand
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Distribution Requirement Planning Distribution Network Management
How much stock to keep at every stock point Inventory levelworking capital
How much stock to replenish DRP calculation
Warehouse Management
Stock Priority Management
Warehouse Management Capacity planning
Stock keeping methods Racking configuration
Warehouse layout
Throughput Docking capacity unloading capacity
Dispatch capacity loading capacity
Stock Flow Management FIFO
FEFO
Shipment / Delivery Execution
Transportation Management Transport Provider
Shipment / Delivery Execution
Distribution Cost Saving
Contigency Route Management
INBOUND LOGISTICS
Manufacturing Site(B)
DistributionCentre 2
Central DistributionCentre
Back OfFactory
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DISTRIBUTION REQUIREMENT PLANNING
DCCDC
LT = 21 daysW3W2
W1W0
Forecast = 500
Safety Stock = 5000
Projected On Hand = 3000
Stock Transfer Order = 2500
STO = Forecast + SS
Proj OH
Example:
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Customer Service
Customer Order Purchase Order Replenishment Order
Replenishment Model
Inventory Level
Order Fulfillment Shipment / Delivery Execution
Billing Process
Proof Of Delivery KPI Service Quality?
On Shelf Availability
Casefill On Time
Joint Initiatives Service Improvements
Efficiency Improvements
Warehouse Management Shipment / Delivery Execution
Transportation Management Transport Provider
Shipment / Delivery Execution
Distribution Cost Savings
Contigency Route Management
OUTBOUND LOGISTICS
COSTUMER 2
Distribution
Centre 1Service Quality:
How much?Is it On time?
In Good Shape?Easy to Unload?
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PURCHASE ORDER & DELIVERY
Send PO
Customer/
Store
Principal
ERP
Order EntryPO Checking: SKU/Description Barcode Price Qty Total PO
Expedition
Report
PO Electronic
Synchronization
Order Processor
WHS
Send Expedition
Report
DELIVERY
PO Manual
Load Planning
PickingAssembling &
Loading
Data interface: SKU/Desc-Barcode PriceTotal PO Completeness
Allocation
Delivery Monitoring / Daily Monitoring : Est. Arrived Delivery Qty FulfilmentTotal PO
Order
Validation
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REPLENISHMENT ORDER
Replenishment Order = Stock Norm
Stock On Hand
Stock IT
*Inventory model manages STOCK NORM level
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REPLENISHMENT ORDER & DELIVERY
PRINCIPAL
Product Flow
In-transit
Stock
FACTORY
Supply
ULI WHS
CUSTOMER
ERP System
MARKET
Shipment
Order
Order
Daily Sales & Stock
Generate Order Parameter Setup Database
Information Flow
Intransit Data
KPI: Service Quality
Custome
Product
Sourcing Whs
Sch. Date & Req. Date
Etc.
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AGENDA
Market & DemandCustomer
ServiceOperation Group
(CSOG)
LogisticsOverview
Supply ChainThe Big Picture
SupplyChain
CustomerService
Distributors (GT)
KPI Towards ZeroInventory Model(TZIM)
Initiatives
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MEASUREMENT
CCFOT(%) provides the Loss tree framework for capturingService, Efficiency and On-time Losses together
Internal Company reporting is consistent CCFOT
Reducing CCFOT loss areas would drive improvement ofCustomer Service KPIs
CCFOT =Qty Delivered On Time
Customer Order
*Figures are not actual data
0.30% 0.30%4.30%
17.40%
31.70%
46.10%
Stock Availability
Warehousing & Transport
Not Assigned
Customer Related
Commercial Issues
Order Management
Example Of CCFOT Loss:
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AGENDA
Market & DemandCustomer
ServiceOperation Group
(CSOG)
LogisticsOverview
Supply ChainThe Big Picture
SupplyChain
CustomerService
Distributors (GT)
KPI Towards ZeroInventory Model(TZIM)
Initiatives
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Logistics is about
Cooperation
(UsNOT you & i)
INITIATIVES
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Service Improvement Electronic Data Interchange Advance Shipment Notification
Integrated Promotion Activity Planning
CPFR
VMI On Shelf Availability
Efficiency Night Delivery Holiday Delivery
Palletized Delivery Distribution Bypass
Backhauling
Retailer Centralized Delivery
Logistic Discount Agreement
INITIATIVES
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