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Integrated International Supply<br />

Chain Management<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

1


Logistics & Supply Chain Management<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

2


Logistics & Supply Chain Management<br />

Asst. Prof. Dr. Taweesak Theppitak 3


่่<br />

่<br />

ุ<br />

Logistics & Supply Chain Management<br />

การบรรยายประกอบดวยหัวขอตอไปนี้<br />

• ประวัติความเปนมาของหวงโซอปทานและโลจิสติกส<br />

ประวตความเปนมาของหวงโซอุปทานและโลจสตกส<br />

• ความหมายและบทบาทของระบบหวงโซอุปทานและระบบโลจิสติกส<br />

ที่มีตอการเพิ<br />

่มขีดความสามารถในการแขงขันขององคกร<br />

• ปจจัยที่มีผลตอการพัฒนาโลจิสติกสและหวงโซอุปทาน<br />

• กิจกรรมตางๆของหวงโซอุปทาน<br />

• เปาหมายหลักของการจัดการโลจิสติกสและหวงโซอุปทาน<br />

ัั ัั ิิ ิิ โ ป<br />

• กลยุทธสําหรับการจัดการและหวงโซอุปทาน<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

4


3 กระบวนการหลักในระบบธุรกิจ<br />

Product Development<br />

Customer Relations<br />

Supply Chain Mgt.<br />

Product<br />

Development<br />

Supply Chain<br />

Mgt<br />

Customer<br />

Relations<br />

Asst. Prof. Dr. Taweesak Theppitak 5


่<br />

Logistics & Supply Chain Management<br />

• Product development จะเปนกระบวนการหลักของธุรกิจที่จะ<br />

กําหนดวาจะผลิตอะไรและธุรกิจเลือกที่จะแขงขันในตลาดอยางไร<br />

•<br />

Customer Relations เปนกิจกรรมทางการตลาดตางๆที่จะ<br />

ตอบสนองความตองการของลกคา<br />

ตอบสนองความตองการของลูกคา<br />

• Supply Chain เปนกิจกรรมเกี่ยวกับการจัดการกระบวนการไหล<br />

ของวัตถุดิบ สินคาและขอมูลจากตนน้ําไปยังปลายน้ํา<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

6


ั<br />

Logistics & Supply Chain Management<br />

ความหมายของหวงโซอุปทาน (Supply Chain)<br />

• การประสานกิจกรรมหลักๆของธุรกิจ ิ ั ิ (ทังภายในบริษัทและระหวางบริษัท)<br />

ั้ ิ ั ิ ั<br />

ภายในหวงโซอุปทาน โดยมีเปาหมายเพื่อพัฒนาและปรับปรุงสมรรถนะในระยะยาวของ<br />

บริษัทและของหุนสวนตลอดหวงโซ ( Shapiro, 2001)<br />

• The management of upstream and downstream relationship with suppliers and<br />

customers to deliver superior customer value at less cost to the supply chain as a<br />

whole. (Christopher M. 1998)<br />

• เปนกระบวนการหรือขั้นตอนที่จะประสานและเชื่อมโยงกิจกรรมตางๆตลอดหวงโซอุป<br />

ทานอยางมีประสิทธิภาพและประสิทธิผล<br />

อยางมีประสิทธิภาพและประสิทธิผลโดยมีเปาหมายเพื่อสราง<br />

โดยมีเปาหมายเพื่อสรางมูลคาเพิ่มและa a Bundle<br />

of Benefit ใหกับผเกี่ยวของตลอดหวงโซอปทาน ใหกบผูเกยวของตลอดหวงโซอุปทาน ( Theppitak, 2003)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

7


Supply Chain Management<br />

• Internal supply chain (in pipeline)<br />

จัดหา ขนสงขาเขา จัดซื้อ ผลิต โกดังสินคา<br />

ขนสงสินคา<br />

ขาออก<br />

การตลาด<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

8


Global Supply Chain Management<br />

• ตลอดหวงโซอุปทาน ตลอดหวงโซอปทาน (บริษัท (บรษท ซบพลายเออร ซับพลายเออร ลูกคา ลกคา ฯลฯ (ใน<br />

รูปแบบของทอน้ํา)<br />

ซับพลายเออร จัดหา จัดซื้อ ผลิต โลจิสติกส การตลาด ลูกคา<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

9


Logistics & Supply Chain Management<br />

ความหมายของ Logistics<br />

“ การเคลอนยาย การเคลื่อนยาย หรือการไหล หรอการไหล ( Flow) ของวตถุดบ ของวัตถดิบ ขอมูลตงแตเปน<br />

ขอมลตั้งแตเปน<br />

วัตถุดิบจนเปนสินคาสําเร็จรูปจากตนทางจนถึงปลายทางผูบริโภค<br />

โดยมีการประสานแตละขันตอนการดําเนินงาน”<br />

ีี ้ ดังนั้นโลจิสติกสจะเปนสวนหนึ่งของหวงโซอุปทาน<br />

บทบาทของนกโลจสตกส บทบาทของนักโลจิสติกส คอ คือ “การวางแผน การปฏบตและการควบคุมวตถุดบ<br />

การปฏิบัติและการควบคมวัตถดิบ<br />

สินคาหรือขอมูลตางๆใหไหลไดอยางมีประสิทธิภาพและประสิทธิผล”<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

10


Logistics Management<br />

Asst. Prof. Dr. Taweesak Theppitak 11


7R R in Logistics Management<br />

• 7Rs<br />

–supplying Right Materials in Right<br />

Quantity, for delivery at the Right<br />

Time and Right Place, from the Right<br />

Source, with the Right Service, and at<br />

the Right Price to customers<br />

Asst. Prof. Dr. Taweesak Theppitak 12


ี<br />

็<br />

การประกอบรถยนตโดยชนสวนจากแหลงผลตทวโลก<br />

การประกอบรถยนตโดยชิ้นสวนจากแหลงผลิตทั่วโลก<br />

ออสเตรีย<br />

ผลิตยางรถยนต<br />

หมอน้ํา<br />

อังกฤษ องกฤษ<br />

ผลิตชิ้นสวนเครื่องยนต<br />

แบ็ตตารี ระบบขับเคลื่อน<br />

เบลเยียม<br />

ลอรถยนตทอทางเบรค<br />

เดนมารก<br />

สายพานพัดลม<br />

อิตาลี<br />

กระบอกสูบ คาบูฯ<br />

กระจก หลอดไฟ<br />

นอรเวย<br />

ลิ้นไอดีไอเสีย<br />

หนาแปลนตางๆ<br />

ญี่ปุน<br />

ระบบสตารท แบริ่ง<br />

ปมน้ํา<br />

เยอรมันนี<br />

ระบบล็อก/สงกําลัง ระบบ<br />

จุดระเบิดประกอบเขาดวยกัน<br />

สวีเดน<br />

นัทโบลทฝาสูบ แค็มป<br />

ประกอบในประเทศอังกฤษ หรือเยอรมันนี<br />

สวิสเซอรแลนด สวสเซอรแลนด<br />

ระบบเกียร สีโคต<br />

สหรัฐอเมริกา สหรฐอเมรกา<br />

วาลว ไฮโดรลิกส<br />

ฝรั่งเศส<br />

ฝาสูบ เบรก สีเคลือบ<br />

ถงนามน ั ้ํ ั คลทซ ั กระจก<br />

แบ็ตตารี ฯลฯ<br />

Asst. Prof. Dr. Taweesak Theppitak 13


่<br />

Logistics & Supply Chain Management<br />

ปจจัยที่มีผลตอการพัฒนาดานโลจิสติกส<br />

• โลจิสติกสดานทหาร<br />

• การลดกฎระเบียบขอบังคับตางๆ เชน FTA<br />

• การแขงขันที่รนแรง<br />

การแขงขนทรุนแรง<br />

• การพัฒนาของเทคโนโลยีสารสนเทศ เชน EDI, Internet, RFID<br />

• การเพิ่มความซับซอนเกี่ยวกับความตองการของลูกคาหรือผูบริโภค<br />

• การกลายเปนโลกาภิวัตน<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

14


Evolution of Logistics / SCM<br />

• Physical Distribution (1940-1970s)<br />

• Business Logistics (1970s - 1990s)<br />

• Integrated Logistics (1990s)<br />

– Supply Chain Management<br />

– Response Logistics Recovery<br />

– Quick Response Logistics<br />

Asst. Prof. Dr. Taweesak Theppitak 15


่<br />

Logistics & Supply Chain Management<br />

ประวัติและวิวัฒนาการ<br />

• วิวัฒนาการระบบสินคาทางธุรกิจ (Business Logistics) เริ่มป ค.ศ. 1961<br />

• หนังสือเลมแรกๆของการจัดการระบบสินคาทางธุรกิจ (Logistics Management)<br />

เพิ่งจะพิมพออกมาในป ค.ศ. 1974<br />

• ธรกิจตางๆจะมีตนทนโดยเฉลี่ยสําหรับระบบสินคาทางธรกิจอยระหวางรอยละ<br />

ธุรกจตางๆจะมตนทุนโดยเฉลยสาหรบระบบสนคาทางธุรกจอยูระหวางรอยละ<br />

5 –35<br />

ของราคาขายซึ่งเปนคาใชจายหรือตนทุนที่สูงรองลงมาจากคาวัตถุดิบของ<br />

อุตสาหกรรมการผลิต<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

16


ิ<br />

Logistics & Supply Chain Management<br />

ตัวอยางของการจัดการหวงโซอุปทานแบบตางๆ<br />

ซับพลายเออร บริษัท ลูกคา/ผูบริโภค<br />

รานขายขาวแกง<br />

บรษทผูผลตสนคา<br />

ิิ ัั ิิ สิ <br />

บริษัทผูรับจัดการขนสงสินคา<br />

บริษัทโทรคมนาคม<br />

บริษัทผูใหบริการตางๆ<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

17


Logistics Concepts<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

18


Logistics Systematic Concept<br />

Carrier<br />

Distribution<br />

center<br />

Customer<br />

Customer<br />

Supplier<br />

Carrier<br />

Customer<br />

Supplier<br />

Carrier<br />

Carrier<br />

Manufacturing<br />

site<br />

Customer<br />

Supplier<br />

Carrier<br />

Distribution<br />

center<br />

Carrier<br />

Customer<br />

Customer<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

19


What are trade-offs in Supply Chain<br />

Asst. Prof. Dr. Taweesak Theppitak 20


A Total Cost Concept<br />

Cost, in dollars<br />

Total cost<br />

Inventory cost<br />

(includes<br />

storage and<br />

intransit<br />

Cost of<br />

transportation<br />

service<br />

(Number of warehouses)<br />

Asst. Prof. Dr. Taweesak Theppitak 21<br />

Source: Ballou


A Cost Conflict in Total Cost Concept<br />

dollars<br />

Cost, in<br />

Inventory cost<br />

(includes<br />

storage and<br />

intransit<br />

Total cost<br />

Cost of<br />

transportation<br />

service<br />

Rail Truck Air<br />

Transportation service<br />

(greater speed and dependability)<br />

Asst. Prof. Dr. Taweesak Theppitak 22<br />

Source: Ballou


Concept of Trade-Off<br />

Before<br />

Trade Off<br />

After<br />

Inventory Cost<br />

Reduction<br />

Transportation<br />

Cost (Sea)<br />

Packaging<br />

Transportation<br />

Cost (Air)<br />

Storage Facilities<br />

Communications<br />

Asst. Prof. Dr. Taweesak Theppitak 23


่ื<br />

Customer Service Concept<br />

การบริการลกคาประกอบดวย<br />

การบรการลูกคาประกอบดวย<br />

การบรการลูกคาประกอบดวย<br />

‣ ปจจัยดานเวลา (Time) – Speed, Consistency, Availability<br />

‣ ปจจัยดานความเชือถือได ั ื (Reliability)–Accuracy, complete, No damage<br />

‣ ปจจัยดานการติดตอสื่อสาร (Communication) – IT facilities<br />

‣ ปจจัยดานความสะดวก (Convenience) – Flexibility<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

24


Heart of Supply Chain and Logistics<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

25


Major Supply Chain Drivers<br />

RESPONSIVENESS 1.<br />

vs.<br />

EFFICIENCY<br />

PRODUCTION<br />

What, how, and<br />

when to produce<br />

2.<br />

INVENTORY<br />

How much to make<br />

and how much to<br />

store<br />

“Increase throughput<br />

while simultaneously<br />

reducing inventory<br />

and operating<br />

expense.”<br />

Goldratt, The Goal,<br />

1984<br />

4.<br />

TRANSPORTATION<br />

How and when to<br />

move product<br />

5.<br />

INFORMATION<br />

The basis for<br />

making these<br />

decisions<br />

3.<br />

LOCATION<br />

Where best to do<br />

what activity<br />

Asst. Prof. Dr. Taweesak Theppitak 26


Responsiveness vs. Efficiency<br />

Supply Chain<br />

Drivers<br />

Responsiveness<br />

1. Production -Excess capacity<br />

-Flexible manufacturing<br />

-Many smaller plants<br />

Efficiency<br />

-Little excess capacity<br />

-Narrow focus<br />

-Few central plants<br />

2. Inventory -High inventory levels -Low inventory levels<br />

-Wide range of items<br />

-Fewer items<br />

3. Location -Many locations close to<br />

customers<br />

- Few central locations<br />

serve wide areas<br />

4. Transportation<br />

-Frequent shipments<br />

-Fast & Flexible mode<br />

-Few large shipments<br />

-Slow, cheaper modes<br />

5. Information - Collect & share timely,<br />

accurate data<br />

- Cost of information<br />

drops ,<br />

other costs rise<br />

Asst. Prof. Dr. Taweesak Theppitak 27


เครื่องมือที่สําคัญ 3 ประการสําหรับการจัดการโลจิสติกส<br />

Transportation<br />

Inventory<br />

Information<br />

Transport<br />

Inventory<br />

Information<br />

Asst. Prof. Dr. Taweesak Theppitak 28


Logistics & Supply Chain Management<br />

โลจิสติกสหรือระบบขนสงสินคา (Logistics)<br />

หรือชื่ออื่นๆ เชน<br />

โลจิสติกสทางธรกิจ<br />

โลจสตกสทางธุรกจ - Business Logistics<br />

การจัดการชองทาง (การจัดจําหนาย) - Channel Management<br />

การกระจายสินคา - Distribution<br />

การกระจายวัสดุ/สินคา - Physical Distribution<br />

โลจิสติกสทางอุตสาหกรรม - Industrial Logistics<br />

การจัดการโลจิสติกส Logistics i Management<br />

การจัดการวัสดุ - Material Management<br />

ระบบการตอบสนองที่รวดเร็ว ระบบการตอบสนองทรวดเรว - Quick-Response Systems<br />

การจัดการหวงโซอุปทาน - Supply Chain Management<br />

การจัดการอุปทาน -Supply Management<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

29


Logistics Management<br />

<br />

<br />

ปรัชญาการบริหารภาพรวมของกระแสการไหลของผลิต<br />

ภัณฑหรือขอมลผานทางชองทางการกระจายจากผจัด<br />

ภณฑหรอขอมูลผานทางชองทางการกระจายจากผูจด<br />

จําหนายไป จนถึงผูบริโภค (Graham 1989)<br />

กระบวนการบริหารปจจัยภายในและปจจัยภายนอกองคการ<br />

เพือเพมคุณคาการบรการใหลูกคา ื่ิ่ ิ (Bernard 1992)<br />

การเคลื่อนยายผลิตภัณฑที่มีลักษณะเปนวงจรที่เริ่มตนและ<br />

จบลงที่ลูกคา (DuPont 1995)<br />

Asst. Prof. Dr. Taweesak Theppitak 30


Logistics & Supply Chain Management<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

31


Logistics & Supply Chain Management<br />

• ระบบสนคาทางธุรกจ ระบบสินคาทางธรกิจ ( Logistics Management) ประกอบดวย ประกอบดวย 2<br />

กิจกรรมหลักๆ คือ<br />

– การจัดการวัสดุ/วัตถุดิบ (Material Management หรือ Physical Supply)<br />

– การแจกจายสินคา (Physical Distribution)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

32


Business Logistics<br />

ชิ้นสวนประกอบ สินคาระหวางทํา สนคาระหวางทา<br />

Components<br />

Work in Process<br />

วัตถุดิบ<br />

Raw Materials<br />

โรงงาน<br />

Manufacturing<br />

Facility<br />

Physical<br />

Distribution<br />

Management<br />

ลูกคา<br />

Customers<br />

อะไหล<br />

Parts<br />

Inbound Logistics<br />

Outbound Logistics<br />

Asst. Prof. Dr. Taweesak Theppitak 33


Logistics & Supply Chain Management<br />

ความสมพนธระหวางฝายตางๆ<br />

ความสัมพันธระหวางฝายตางๆ<br />

Suppliers<br />

Firms หรือ<br />

Manufacturer<br />

Customers<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

34


Logistics & Supply Chain Management<br />

เปาหมายของการจัดการโลจิสติกสและหวงโซอุปทาน คือเพื่อ<br />

ลดตนทุนตางๆ<br />

ปรับปรุงคุณภาพการใหบริการ<br />

ป ิ<br />

สรางและเพมระดบความพงพอใจของลูกคา ิ่ ั ึ (ทงภายในและภายนอก)<br />

ั้ใ Asst. Prof. Dr. Taweesak Theppitak<br />

35


Physical Distribution Management<br />

• การจัดการการกระจายสินคา<br />

–สินคาคงคลัง, ิ ั ระบบขนสง, โกดังสินคา, ั ิ การบริหารคํา<br />

สั่งซื้อ, , อุปกรณการขนถาย ผูบริโภคขันสุดทาย<br />

ั้ <br />

End Customer<br />

สินคาที่<br />

ผลิตเสร็จ ผลตเสรจ<br />

Finished<br />

Products<br />

ศูนยกระจายสินคา<br />

Transit Depot<br />

พอคาคนกลาง<br />

Intermediary<br />

Asst. Prof. Dr. Taweesak Theppitak 36


ั<br />

ํ<br />

ิ<br />

Integrated Logistics<br />

Supplier Procurement Operations<br />

ผูจัดจําหนาย การจัดหา การดําเนินงาน<br />

Physical<br />

Distribution<br />

กระจายสินคา<br />

Customer<br />

ลูกคา<br />

PDM<br />

Business Logistics<br />

Integrated Logistics<br />

Asst. Prof. Dr. Taweesak Theppitak 37


้ั<br />

Supply Chain Management - SCM<br />

การบริหารโซอุปทาน<br />

ิ ิ <br />

ี<br />

Supplier Manufacturer โกดังสินคา / รานคา ผูบริโภค<br />

ผูจัดจําหนาย ผูผลิตสินคา รานคาสง ปลีก ขันสุด<br />

ทาย<br />

Management Through Partnership<br />

•Transport,<br />

•Order Processing Systems,<br />

•Information Systems,<br />

•Control Systems<br />

Asst. Prof. Dr. Taweesak Theppitak 38


Quick Response Logistics - QRL<br />

การจัดสงเพื่อการตอบสนองอยางรวดเร็ว<br />

Customer<br />

Purchasing<br />

P/O<br />

Inventory EDI EDI<br />

Accounts<br />

Payable<br />

Given Corporate<br />

Advance Ship Notice<br />

Invoice<br />

Cheque<br />

Order<br />

Entry<br />

Dispatch<br />

Sales<br />

Production<br />

Account Receivable<br />

Supplier<br />

Asst. Prof. Dr. Taweesak Theppitak 39


Logistics & Supply Chain Management<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

40


How to manage Logistics &<br />

Supply Chain to gain and<br />

maximise competitive<br />

advantage???????<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

41


Logistics & Supply Chain Management<br />

หัวใจของการจัดการหวงโซอุปทาน<br />

• สรางวฒนธรรมแหงความไวใจกน<br />

ั ใ ั<br />

ความไวใจ (TRUST)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

42


Logistics & Supply Chain Management<br />

หัวใจของการจัดการหวงโซอุปทาน<br />

• สรางวัฒนธรรมแหงความไวใจกัน (Create trust and collaboration)<br />

• การใชขอมูลรวมกน การใชขอมลรวมกัน ( Share common information)<br />

• การพัฒนาเทคโนโลยีสารสนเทศ (Adopt & enhance of IT)<br />

• เปดใจใหกวางในการนําเอา Management Technique เขามาใช<br />

ความไวใจกัน (TRUST)<br />

เทคโนโลยีสารสนเทศ เทคโนโลยสารสนเทศ (Information System)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

43


ุ<br />

ู<br />

Logistics & Supply Chain Management<br />

จากคํานิยาม เราจะมองระบบสินคาทางธุรกิจเปนกระบวนการ ตอเนื่องเสมือนแมน้ําที่<br />

กระแสน้ําไหลผานภูมิประเทศที่แตกตางกัน<br />

ความแตกตางของพื้นที่ภมิประเทศจึงไมใชประเด็นสําคัญ ู ความสําคัญอยที่การไหล<br />

ู<br />

ของน้ําหรือที่รูจักกันดีในชื่อของ<br />

หรือที่รูจักกันดีในชื่อของ“แบบจําลองหวงโซอุปทาน<br />

แบบจําลองหวงโซอุปทาน” ” (Supply Chain Modeling)<br />

การจดการซพพลายเชนคอการจดการกจกรรมตางๆใหมการประสานงานและ<br />

ั ั ื ั ิ ี การเชื่อมโยงกิจกรรมเหลานี้อยางมีประสิทธิภาพและประสิทธิผลเพื่อสราง<br />

value added ใหกับผูเกี่ยวของตลอดหวงโซอุปทาน<br />

การจัดการโลจิสติกสคือการจัดการกระบวนการไหลหรือการเคลื่อนยายวัสดุและขอมูล<br />

ตั้งแตเปนวัตถุดิบจนเปนสินคาสําเร็จรูปอยางมีประสิทธิภาพและประสิทธิผล<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

44


Logistics & Supply Chain Management<br />

แผนกตางๆภายในองคกร<br />

แผนกตางๆภายในองคกร<br />

Suppliers<br />

ฝายจัดซื้อ/จัดหา ฝายผลิต ฝายการตลาด<br />

ฝายบัญชีและ<br />

การเงิน<br />

ฝายสํานักงาน<br />

Customer<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

45


Logistics & Supply Chain Management<br />

เครือขายหวงโซอุปทาน (Supply Chain Network)<br />

Suppliers<br />

Plants<br />

Distribution<br />

Centers<br />

Markets<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

46


Logistics & Supply Chain Management<br />

การเปรียบเทียบตนทุนทางการตลาดและโลจิสติกส<br />

ผลิตภัณฑ<br />

ราคา<br />

การสงเสริมการตลาด<br />

การสงเสรมการตลาด<br />

กิจกรรมการตลาด<br />

สถานที่<br />

กิจกรรม<br />

โลจิสติกส<br />

ตนทุนการเก็บรักษา<br />

สินคาคงคลัง<br />

ตนทุนปริมาณสินคา<br />

ตนทนการสั่งซื้อ ตนทุนการสงซอ<br />

และขอมูล<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

ตนทุนคาขนสง<br />

ตนทุนคาโกดัง<br />

47


Functions of Logistics System<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

48


Logistics & Supply Chain Management<br />

ความสัมพันธในระบบสินคาทางธุรกิจ<br />

ระบบสินคาทางธุรกิจ<br />

การจัดการวัสดุ<br />

การกระจายสินคา<br />

ผขาย ผูขาย<br />

บริษัท<br />

ั<br />

(ระบบสินคาขาเขา) (ระบบสินคาขาออก<br />

ระบบสินคาขาออก)<br />

ลูกคา<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

49


Logistics & Supply Chain Management<br />

การจัดการวัสดุ/วัตถุดิบ (Material Management หรือ Physical Supply) ประกอบดวย<br />

กิจกรรมตางๆดังนี้<br />

การจัดหา (Sourcing)<br />

การจัดซื้อ การจดซอ (Purchasing Management)<br />

การขนสงขาเขา (Inbound Transportation)<br />

การรับและการเก็บรักษาสินคา (Receiving & Storage)<br />

การจัดการสินคาวัตถุดิบคงคลัง (Raw Material Inventory Management)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

50


ุ<br />

Logistics & Supply Chain Management<br />

กิจกรรมการแจกจายสินคา ( Physical Distribution)<br />

• การประมวลคําสั่งซื้อ (Order Processing)<br />

• การจัดการสินคาคงคลัง ( Finished n i s h e dgoods inventory management)<br />

• คลังสินคา (Warehousing Management)<br />

• การเคลื่อนยายพัสดุ (Material Handling)<br />

• การบรรจุหีบหอ (Packaging)<br />

• การขนสงขาออก (Outbound Transportation)<br />

• การบริการลูกคา (Customer Service)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

51


Logistics & Supply Chain Management<br />

การจัดการวัสดุ/วัตถุดิบ (Material Management) ประกอบดวยวัสดุ<br />

ในภาวะเคลื่อนไหว<br />

ในภาวะเคลอนไหว<br />

( In Motion) และภาวะที่อยนิ่ง และภาวะทอยูนง (In Rest)<br />

กิจกรรมตางๆสําหรับการจัดการวัสดุ คือ<br />

การจัดหา (Sourcing)<br />

“กระบวนการและขั้นตอนที่บริษัทนํามาใชเพื่อจัดหาทรัพยากรตางๆ ที่จําเปนสําหรับการ<br />

ผลิตสินคา”<br />

การจัดหา จึงมีผลกระทบความมั่นใจดานแหลงจัดหา และตนทุนการผลิตและ<br />

คณภาพของผลิตภัณฑ<br />

คุณภาพของผลตภณฑ<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

52


Logistics & Supply Chain Management<br />

การจัดซื้อ การจดซอ (Purchasing Management)<br />

จะพิจารณาที่มูลคาและประเภทของสินคา/วัตถุดิบ<br />

การจัดการโดยใชเทคนิค การจดการโดยใชเทคนค ABC Analysis<br />

A กลุมมูลคาสูง (80%ของสินคาคงคลัง) - ซื้อบอยและความถี่ในการสงมอบ<br />

B กลุมมูลคาระดับกลาง ู (15%) - ทุกสัปดาห<br />

C กลุมมูลคาระดับต่ํา (5%) - ทุกเดือน<br />

การจัดการแบบ Just-In-Time (JIT)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

53


Logistics & Supply Chain Management<br />

การขนสงขาเขา การขนสงขาเขา (Inbound Transportation)<br />

การขนสงแบบใดบางที่จะเขาถึงแหลงวัตถุดิบ<br />

ตนทนการขนสงที่เหมาะสม<br />

ตนทุนการขนสงทเหมาะสม<br />

ลักษณะของบริการที่ไดรับ<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

54


Logistics & Supply Chain Management<br />

การรับและการเก็บรักษาสินคา การรบและการเกบรกษาสนคา (Receiving & Storage)<br />

การตรวจสอบสินคา ทั้งในดานปริมาณและคุณภาพ<br />

จัดเก็บในสถานที่เหมาะสม จดเกบในสถานทเหมาะสม ซึ่งจะตองพิจารณาปริมาณ<br />

ซงจะตองพจารณาปรมาณ<br />

และความถี่ของการใชงาน<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

55


รูปแบบคลังพัสดุ<br />

ู<br />

ุ<br />

Asst. Prof. Dr. Taweesak Theppitak 56


สวนประกอบอะไหลรถยนต<br />

สวนประกอบอะไหลรถยนต<br />

Asst. Prof. Dr. Taweesak Theppitak 57


การจัดเก็บใน Rack<br />

Asst. Prof. Dr. Taweesak Theppitak 58


Logistics & Supply Chain Management<br />

การจัดการวัตถดิบคงคลัง การจดการวตถุดบคงคลง (Raw Material Inventory)<br />

การมี Inventory เพื่อใหการผลิตดําเนินการอยางตอเนื่อง<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

59


Asst. Prof. Dr. Taweesak Theppitak 60


Asst. Prof. Dr. Taweesak Theppitak 61


Logistics & Supply Chain Management<br />

กจกรรมการแจกจายสนคา กิจกรรมการแจกจายสินคา ( Physical Distribution)<br />

เปนกระบวนการจัดการตั้งแตวัตถุดิบผลิตออกมาเปนสินคาสําเร็จรูป หีบหอ<br />

เพือการขนสง ื่ การเก็บรักษา ็ ั การเคลือนยาย ื่ ขนสง ประมวลผลการสังซือ<br />

่ ั<br />

ื้<br />

สินคาคงคลังและการสงมอบสินคา<br />

• การประมวลคําสั่งซื้อ (Order Processing)<br />

• กระบวนการในการสั่งซื้อ<br />

กระบวนการในการสงซอ<br />

• กระทําโดยผานระบบ IT ตางๆ เชน โทรศัพท อินเตอรเน็ต EDI เปนตน<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

62


Supply Chain Management<br />

• การจัดการสินคาคงคลัง (Finished goods inventory management)<br />

• Inventory Management คือการเชื่อมโยงการวางแผนเขากับกับการปฏิบัติการ<br />

• การวางแผนความตองการสินคาที่จะเก็บสต็อก<br />

การวางแผนความตองการสนคาทจะเกบสตอก<br />

• การจัดการสงสินคาใหกับลูกคา<br />

• คลังสินคา เปนสถานที<br />

่จัดเก็บสินคากอนสงไปใหลูกคา โดยรวบรวมสินคา<br />

(Consolidation) จากโรงงานตางๆ เพื่อสงใหลูกคา<br />

• ศูนยกระจายสินคา (Distribution Center) ทําหนาที่เชนเดียวกับคลังสินคา เพียงแต<br />

เก็บรักษาในระยะสั้น<br />

เกบรกษาในระยะสน<br />

• Cross-dock<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

63


่<br />

Logistics & Supply Chain Management<br />

• การเคลื่อนยายวัสดุ/สินคา<br />

สินคา (Material Handling)<br />

• เปนสวนหนึงของบรการคลงสนคา ึ่ ิ ั ิ ซึงเคลือนยายในระยะสน<br />

ึ่ ื่ ั้<br />

• เคลื่อนยายเขาคลัง เคลื่อนยายภายในคลังและออกจากคลังสินคา<br />

• ปจจัยหลักๆ ปจจยหลกๆ เชน เชน ความปลอดภัย ความปลอดภย ประสิทธิภาพ ประสทธภาพ และความเสียหายของสินคา และความเสยหายของสนคา ความรวดเร็ว ความรวดเรว<br />

ความถูกตอง ฯลฯ<br />

• การบรรจุหีบหอ ( Packaging)<br />

g)<br />

• มีความสําคัญดานคาใชจายและความปลอดภัยในตัวสินคา<br />

• ในทางวิชาการแลว คาใชจายการกําจัดวัสดุบรรจุภัณฑเปนภาระของผูซื้อสินคา สวน<br />

ประโยชนจะตกอยูทุกฝายที่เกี่ยวของกับระบบสินคาทางธุรกิจ<br />

่<br />

• การบรรจุหีบหอ แบงเปน<br />

• การบรรจหีบหอเพื่อการขาย การบรรจุหบหอเพอการขาย (Consumer Packaging) เปนเรื่องของการตลาด<br />

เปนเรองของการตลาด<br />

• การบรรจุหีบหอทางพาณิชย (Industrial Packaging) เปนเรื่องระบบโลจิสติกส<br />

• การปองกันความเสียหาย (Damage Protection) เชน Cartons, bags, barrels, bins, pallets<br />

• การบรรจุจะตองมีการสื่อสารและถายทอดขอมูล โดยผานเทคโนโลยี เชนระบุเลขหมาย<br />

สินคา (UPC – Universal Product Asst. Prof. Code)<br />

Dr. Taweesak Theppitak<br />

64


Logistics & Supply Chain Management<br />

• การขนสงขาออก การขนสงขาออก ( Outbound Transportation)<br />

• เปนจัดสงใหกับลูกคาโดยตรงหรือเก็บไวตามคลังสินคาหรือศูนยกระจายสินคา<br />

• วิธีการขนสงแบงออกไดเปน วธการขนสงแบงออกไดเปน 3 วิธีคือ วธคอ<br />

• บริษัทมียานพาหนะขนสงของตนเอง<br />

• บริษัทมีสัญญากับบริษัทขนสงเพื่อขนสงสินคาทั้งหมดใหกับบริษัท<br />

บรษทมสญญากบบรษทขนสงเพอขนสงสนคาทงหมดใหกบบรษท<br />

• ใชบริการขนสงสาธารณะ แลวแต Mode ของการขนสง<br />

• การบรการลูกคา ิ ( Customer Service)<br />

• ระบุประเภทของลูกคา เชนใครคือลูกคาของเรา ทั้งลูกคาภายในและลูกคา<br />

ภายนอก<br />

• เปาหมายของบริษัทคือ “ผลกําไร” แตเปาหมายของลูกคาคือ “ความพึงพอใจใน<br />

บริการ”<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

65


ีี<br />

Logistics & Supply Chain Activities<br />

• เขาใจปจจัยทีมีผลตอการพัฒนาการจัดการหวงโซอุปทาน<br />

ใป ัั<br />

่ ี ั ั ป<br />

• สถานการณขององคกรในปจจุบัน<br />

ซับพลายเออรหรือผูจัดสงสินคา<br />

จัดหา<br />

จัดซื้อ ผลิต โลจิสติกส<br />

การตลาด<br />

ลูกคา<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

66


Supply Chain Management<br />

• หวงโซอุปทานในอุดมคต<br />

หวงโซอปทานในอดมคติ<br />

• Integrated/ Virtual Supply Chain<br />

ซับพลายเออรหรือผูจัดสงสินคา<br />

จัดหา<br />

จัดซื้อ ผลิต โลจิสติกส<br />

ลูกคา<br />

การตลาด<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

67


Logistics & Supply Chain Management<br />

• หวงโซอุปทานในรูปแบบของทอนา<br />

หวงโซอปทานในรปแบบของทอน้ํา<br />

ซับพลายเออร จัดหา จัดซื้อ ผลิต โลจิสติกส การตลาด ลูกคา<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

68


Logistics & Supply Chain Management<br />

Question????????<br />

or<br />

Comment!!!!!!!!<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

69


Logistics & Supply<br />

Chain Strategy and<br />

Management<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

70


ขอบเขตการบรรยาย<br />

Logistics & Supply Chain<br />

Strategy & Management<br />

• สรปภาพรวมของโลจิสติกสและซัพพลายเชน<br />

สรุปภาพรวมของโลจสตกสและซพพลายเชน<br />

• บทบาทและความรับผิดชอบของ Logistics Manager<br />

• ประเดนหลกๆทกระทบตอการดาเนนธุรกจและการนาเอาการจดการ<br />

็ ั ี่ ํ ิ ิ ํ ั<br />

โลจิสติกสมาใช<br />

• ปญหาเกียวกับประเด็นโลจิสติกสทีมักจะพบในองคกร<br />

่่ ่ <br />

• เปาหมายหลักในการจัดการโลจิสติกสและซัพพลายเชน<br />

• การออกแบบและการนําเอากลยุทธโลจิสติกสมาใชในองคกร<br />

• ตวอยางของกลยุทธและการจดการโลจสตกสทมการนามาใชบอยๆ<br />

ตัวอยางของกลยทธและการจัดการโลจิสติกสที่มีการนํามาใชบอยๆ<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

71


Logistics & Supply Chain Management<br />

สรุปภาพรวมของหวงโซอุปทาน (Supply Chain)<br />

• The management of upstream and downstream relationship with suppliers<br />

and customers to deliver superior customer value at less cost to the supply<br />

chain as a whole. (Christopher M. 1998)<br />

• เปนกระบวนการหรือขั้นตอนที่จะประสานและเชื่อมโยงกิจกรรมตางๆตลอด<br />

หวงโซอปทานอยางมีประสิทธิภาพและประสิทธิผล<br />

หวงโซอุปทานอยางมประสทธภาพและประสทธผลโดยมเปาหมายเพอสราง<br />

อยางมีประสิทธิภาพและประสิทธิผลโดยมีเปาหมายเพื่อสราง<br />

มูลคาเพิ่มและa a Bundle of Benefit ใหกับผูเกี่ยวของตลอดหวงโซอุปทาน<br />

( Theppitak, 2003)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

72


ั<br />

่<br />

ุ<br />

Logistics & Supply Chain Management<br />

ความหมายของ Logistics Management<br />

“ การเคลอนยาย ื่ หรอการไหล ื ( Flow) ) ของวตถุดบ ัั ิ ิ ขอมูลตงแตเปน<br />

ั้ ป<br />

วัตถุดิบจนเปนสินคาสําเร็จรูปจากตนทางจนถึงปลายทางผูบริโภค<br />

โดยมีการประสานแตละขั้นตอนการดําเนินงาน”<br />

ดังนันโลจิสติกสจะเปนสวนหนึงของหวงโซอุปทาน<br />

ั ั้ ิ ิ ึ<br />

โ ป<br />

บทบาทของนักโลจิสติกส คือ “การวางแผน การปฏิบัติและการควบคุม<br />

วัตถุดิบสินคาหรือขอมูลตางๆใหไหลไดอยางมีประสิทธิภาพและ<br />

ประสิทธิผล”<br />

ิ ิ<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

73


แนวโนมใหมๆของโลกที่กําลังเปลี่ยนไปซึ่งเกี่ยวกับ<br />

การพัฒนาการจัดการโลจิสติกสและซัพพลายเชน<br />

The 5 emergence of fundamental themes:<br />

• The customer orientation<br />

• The decline of mass production<br />

• Small inventories<br />

i<br />

• Development of electronic commerce<br />

• Smaller organisations<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

74


Who’s logistics manager???<br />

Or Chief Logistics Officer (CLO)<br />

What ’s thier role and jobs?<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

75


ความรับผิดชอบของผูบริหาร Logistics<br />

Purchasing<br />

9%<br />

Product Plan<br />

8%<br />

Forecast<br />

6%<br />

Warehousing<br />

19%<br />

Packaging<br />

10%<br />

Order Admin<br />

13%<br />

Inventory<br />

16%<br />

Transport<br />

19%<br />

Source: Council of Logistics Management - USA<br />

Asst. Prof. Dr. Taweesak Theppitak 76


7R for Logistics Managers<br />

• 7Rs<br />

– Managing Right Materials in Right<br />

Quantity, for delivery at the Right Time<br />

and Right Place, from the Right Source,<br />

with the Right Service, and at the Right<br />

Pi Price to customers<br />

Asst. Prof. Dr. Taweesak Theppitak 77


เปาหมายของการจัดการโลจิสติกสและซัพพลายเชน<br />

การลดตนทุน<br />

การลดตนทน<br />

และ<br />

การเพมความพงพอใจ<br />

การเพิ่มความพึงพอใจ<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

78


ู<br />

ประเด็นหลักที่มีผลกระทบตอการดําเนินธุรกิจและกระตุนใหมี<br />

การพัฒนากลยุทธโลจิสติกสและซัพพลายเชน<br />

• การแขงขันที่รุนแรง (Intense Competition)<br />

• การกลายเปนโลกาภวตน ป ิ ั ( Globalisation)<br />

li i • ความไมแนนอน (Uncertainty)<br />

• การขาดความไวใจซึ่งกันและกัน (Trust)<br />

• การขาดการประสานและความรวมมือกัน ืื ัั<br />

(Coordination & Cooperation)<br />

• ไมมีการแชรหรือแบงปนขอมูลซึ่งกันและกัน (Share common<br />

information)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

79


ัั<br />

ปญหาทัวๆไปทีเกียวของกับ<br />

่ ี่ ี่ ั<br />

โลจิสติกสและซัพพลายเชน<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

80


ปญหาที่เกิดขึ้น<br />

• ไมมีสินคาใหลกคาเมื่อตองการ<br />

ไมมสนคาใหลูกคาเมอตองการ<br />

• ลูกคาที่อยูตางถิ่น ู อยากไดสินคา แตไมรูจะติดตอใคร ู<br />

• สงมอบของผิดพลาด เสียหาย ไมทันตามกําหนด<br />

• ขันตอนการติดตอซือขายยุงยาก ั้ิ ้ื<br />

เสียเวลา ี<br />

• มีสินคาคงคลังจํานวนมาก<br />

มสนคาคงคลงจานวนมาก<br />

• พื้นที่จัดเก็บในคลังสินคาไมพอ<br />

• ฯลฯ<br />

Asst. Prof. Dr. Taweesak Theppitak 81


ื<br />

A<br />

สินคาคงคลัง<br />

B<br />

ความตองการที่ ความตองการท การพยากรณ<br />

เปลี่ยนแปลงรวดเร็วมาก ที่ไมถูกตอง<br />

ความไมนาเชื่อ<br />

ถือของผูจัดหา ั<br />

สินคา<br />

ปญหาเกี่ยวกับ ปญหาเกยวกบ<br />

ปญหาคอขวด<br />

คุณภาพ<br />

รูปที่ 1 ปญหาตางๆที่องคกรมักมองไมเห็นที่เกิดขึ้นจากสินคาคงคลัง<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

82


Logistics Management<br />

Asst. Prof. Dr. Taweesak Theppitak 83


Asst. Prof. Dr. Taweesak Theppitak<br />

84


แนวทางในการจัดการปญหาทางโลจิสติกส<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

85


การเพิ่มระดับการใหบริการ - การลดตนทุน<br />

พัฒนากลยุทธการใหบริการลูกคา<br />

ลดความความนาจะเปนที่สินคาจะขาดมือ<br />

ลดระยะเวลานําสงสินคา<br />

ใชพืนทีขายใหเกิดประโยชนสูงสุดและสราง<br />

ื้ ี่ ใ ิ <br />

ความดึงดดลกคา ความดงดูดลูกคา<br />

Asst. Prof. Dr. Taweesak Theppitak 86


ความตองการเพิ่มกําไร ความตองการเพมกาไร - ลดตนทน ลดตนทุน<br />

ลดสินคาคงคลังและกิจกรรมที่ไมเกิดประโยชน<br />

ขจัดปญหาคอขวดและความลาชาในการจัดสง<br />

กําหนดจํานวน กาหนดจานวน / ที่ตั้ง ทตง / ขีดความสามารถของโรงพัก<br />

ขดความสามารถของโรงพก<br />

สินคาใหเหมาะสม<br />

ใชการสั่งซื้อวัตถุดิบคราวละมาก ๆ เพื่อไดสวนลด<br />

ใชอุปกรณ / ยานพาหนะใหเกิดประโยชนสูงสุด<br />

ลดตนทนโดยรวมของธรกิจ<br />

ลดตนทุนโดยรวมของธุรกจ<br />

Asst. Prof. Dr. Taweesak Theppitak 87


Logistics Strategy &<br />

Management<br />

How we solve these problems??, or<br />

How we can define strategies to manage to<br />

the circumstances?? and<br />

How we can gain competitive advantage??<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

88


Logistics & Supply Chain Management<br />

ความไดเปรยบในเชงการแขงขน ความไดเปรียบในเชิงการแขงขัน ( Competitive Advantage)<br />

เวลา<br />

(Time)<br />

ตนทุน<br />

(Cost)<br />

คุณภาพ<br />

(Quality)<br />

ความพึงพอใจของลูกคา<br />

ความไดเปรียบในเชิงการแขงขัน<br />

(Competitive Advantage)<br />

ความยืดหยุน<br />

(Flexibility) สถานที่<br />

(Place)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

89


Concept of Trade-Off<br />

Before<br />

Trade Off<br />

After<br />

Inventory Cost<br />

Reduction<br />

Transportation<br />

Cost (Sea)<br />

Packaging<br />

Transportation<br />

Cost (Air)<br />

Storage Facilities<br />

Communications<br />

Asst. Prof. Dr. Taweesak Theppitak 90


ั<br />

<br />

<br />

<br />

การออกแบบและการนําเอากลยุทธดานโลจิ<br />

สติกสมาใช<br />

ในบทนี้จะกลาวถึงการนําเอากลยทธโลจิสติกเขามาใชในสองสวน<br />

ในบทนจะกลาวถงการนาเอากลยุทธโลจสตกเขามาใชในสองสวน<br />

1. เปลี่ยนแนวคิดขององคกร<br />

2. นําเทคนิคการจัดการโลจิสติกสเขามาใช<br />

ระบบ<br />

(System)<br />

โครงสราง<br />

(Structure)<br />

องคกร<br />

กระบวนการจัดการ<br />

(Process)<br />

วฒนธรรมองคกร<br />

(Culture)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

91


ู<br />

ู<br />

การออกแบบและการนาเอากลยุทธดานโลจสตกสมาใช<br />

ํ ิ ิ <br />

Changing conceptual model of new organisaiton as;<br />

• From Functions to Processes<br />

• From Profit to Performance<br />

• From Products to Customers<br />

• From Inventory to Information<br />

• From Transactions to Relationships<br />

• เปลี่ยนวัฒนธรรมองคกรใหอยูในรูปแบบ ู Servicing based on culture<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

92


หัวใจของระบบโลจิสติกสและหวงโซอุปทาน<br />

Inventory<br />

Information<br />

Transport<br />

Inventory Transport<br />

Information<br />

Asst. Prof. Dr. Taweesak Theppitak 93


ประเด็นที่นาสนใจ:<br />

ปจจัยที่มีผลกระทบตอ Logistics<br />

•การขนสง<br />

•การกระจายสินคา<br />

•การคลังสินคา<br />

•สินคาคงคลัง<br />

• การแบงปนขอมูลของผูที่เกี่ยวของ<br />

Asst. Prof. Dr. Taweesak Theppitak 94


ต.ย. ประเด็นเกี่ยวกับ Procurement ที่อยูใน<br />

ความสนใจและผลกระทบตอการลดตนทุน<br />

• Increased Outsourcing<br />

• Global Sourcing<br />

• JIT Purchasing<br />

• Green Supply Management<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

95


Logistics & Supply Chain Strategy t & Management<br />

เทคนคและกลยุทธโลจสตกสและหวงโซอุปทานทนยมใชบอยๆ<br />

เทคนิคและกลยทธโลจิสติกสและหวงโซอปทานที่นิยมใชบอยๆ<br />

•<br />

Just-In-Time; (JIT)<br />

• Postponement<br />

• Third Party Providers (3<br />

rd Logistics Providers)<br />

• Efficient Consumer Response; ECR (QR)<br />

• E – Supply Chain<br />

• Supplier Development Programme<br />

• Benchmarking<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

96


• What is JIT?<br />

Just In Time; JIT<br />

• Its objectives are to provide materials to production as they are<br />

required for use.<br />

• Key of JIT is: eliminating inbound inspection, establishing close<br />

relationship for coordination and problem solving, deliver on time in<br />

small quantities and arrive at an equitable price.<br />

• Limitation of JIT: demand is stable, accurately demand forecasting, JIT<br />

pushes inventory back to suppliers, geographical g location.<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

97


่<br />

Logistics & Supply Chain Management<br />

Postponement<br />

Supply push<br />

วัตถุดิบ<br />

สินคากึง<br />

สําเร็จรูป<br />

สินคา สนคา<br />

สําเร็จรูป<br />

Demand Pull<br />

ชาๆไดพราเลมงาม<br />

• ลดความเสียง ีี่ ลดการพึงพาการคาดคะเน<br />

ึ่<br />

• ลดประเภทและจํานวนสต็อกที่ตองเก็บ<br />

• สามารถตอบสนองลูกคาไดดีขึ้นเพราะผลิตสินคาตรงตามความตองการ<br />

ของลูกคาในตนทุนทตา ของลกคาในตนทนที่ต่ํา ( Mass Customization)<br />

ti Asst. Prof. Dr. Taweesak Theppitak<br />

98


3 rd Party Logistics Service Provider/ Outsourcing<br />

• What about 1 st or 2 nd party logistics parties?<br />

• The issues behind this concept:<br />

– Focusing on core competence of organisation<br />

– Reducing costs<br />

– Releasing capital<br />

– increasing flexibility<br />

– improve service levelel<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

99


3 rd Party Logistics Service Provider<br />

• What is meaning of 3 rd party logistics provider?<br />

• Activities iti carried id out by logistics provider on behalf of a shipper<br />

and consist of at least mgt. and execution of transport and warehousing<br />

(Berglund et al. 1999)<br />

• “...involves outsourcing logistics activities that have traditionally been<br />

performed within an organisation. The functions performed by 3 rd<br />

party can encompass the entire logistics process, or more commonly,<br />

selected activities within the process” (Lieb & Randall, 1996)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

100


Relationship between Shippers & Logistics Service Providers<br />

Degree of Integration<br />

4 th Party<br />

Logistics (FPL)<br />

Market<br />

Transaction<br />

Outsourcing of<br />

Transport &<br />

Warehousing<br />

3 rd Party<br />

Logistics (TPL)<br />

Degree of asset Specity<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

101


ิ<br />

ี<br />

ู<br />

ู<br />

้<br />

3 rd Party Logistics Service Provider<br />

สรุป<br />

• TPL เปนการ Outsource กิจกรรมทีไมใช ่ไี<br />

<br />

Core Competence<br />

• ประเด็นหลักๆของการOutsourcing<br />

g อยูที่ระดับของการบูรณาการและ<br />

ู<br />

ระดับของการลงทุนในสินทรัพยตางๆ<br />

• 4 th<br />

PL เปนระดับสูงสุดของความรวมมือและการบูรณาการทัง Scope of<br />

th PL<br />

Services และ Strategic Importance (Day 2000)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

102


การตอบสนองผูบริโภคอยางมีประสิทธิภาพ<br />

(Efficient Consumer Response; ECR)<br />

1. การนําเอา EDI มาใชอยางกวางขวาง<br />

2. Category Management<br />

3. การนําขอมล การนาขอมูล POS (Point Of Sales) มาใชเพมมากขน มาใชเพิ่มมากขึ้น<br />

4. Partnership หรือจัดใหมีความรวมมือและความสัมพันธทามกลาง<br />

หุ<br />

นสวนเพิมมากขึน<br />

ิ่ ึ้<br />

5. Continuous Replenishment<br />

6. Flow-Through Distribution<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

103


Logistics & Supply Chain Management<br />

E – Supply Chain Management<br />

• รูปแบบใหมทเกดขนโดยการวจยรวมกนของกลุมอาสาสมครจากบรษทคาปลก รปแบบใหมที่เกิดขึ้นโดยการวิจัยรวมกันของกลมอาสาสมัครจากบริษัทคาปลีก คา<br />

คา<br />

สง โรงงานผลิต และกลุมเจาของเทคโนโลยีสื่อสารคอมพิวเตอรทั้ง<br />

Hardware & Software ในสหรฐอเมรกา ในสหรัฐอเมริกา เพื่อหาวิธีการใหมในการ<br />

เพอหาวธการใหมในการ<br />

บริหาร 3 เรื่องหลักๆรวมกัน<br />

1. วางแผนรวมกันในการบริหาร<br />

2. สรางรูปแบบการพยากรณลวงหนา (Demand Forecast) ความตองการสินคา<br />

ของผบริโภครวมกัน ของผูบรโภครวมกน (Collaborative Forecast)<br />

3. การจัดเติมสินคาอยางตอเนื่องอัตโนมัติใหกันและกันบนสื่อคอมพิวเตอรที่ใหมและดีกวา<br />

เกาโดยอาศัย เกาโดยอาศย Web Base B2B E-Commerce<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

104


“E” Terminology<br />

E-Business<br />

Generic term for<br />

business handled<br />

via the internet<br />

E-Logistics<br />

The physical movement of<br />

goods controlled in the<br />

internet<br />

E-Commerce<br />

Marketing & sales of<br />

products & services<br />

via the internet<br />

E-Procurement<br />

Procurement of goods<br />

That are ready for use<br />

Via the internet<br />

E-Fulfillment<br />

The entire processing chain<br />

Of an order placed via<br />

the internet up to complete<br />

customer satisfaction<br />

B2B<br />

Virtual marketplace<br />

Between business partners<br />

B2C<br />

Virtual sales platform<br />

Between companies &<br />

idiid individual customers<br />

Source: UN 2004<br />

B2E<br />

Electronic communication<br />

within a company<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

C2C<br />

Virtual trade between<br />

Private individuals<br />

105


Benchmarking<br />

• Benchmarking เปนขบวนการในการวด เปนขบวนการในการวัด ประเมนและเปรยบเทยบผลท<br />

ประเมินและเปรียบเทียบผลที่<br />

ไดรับและนําไปสูการปรับปรุงอยางตอเนื่อง (ทวีศักดิ์<br />

2546)<br />

• การ Benchmarking มีวัตถุประสงค 5 ประการหลักคือ<br />

– Strategy –short & long-term planning<br />

– Forecasting – Predicting trends in specific areas<br />

– New idea<br />

– Process comparison<br />

– Setting objectives and targets based on best practice.<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

106


Benchmarking<br />

เมื่อตองการ เมอตองการ Benchmarking คณควรจะตองตั้งคําถามดังนี้<br />

คุณควรจะตองตงคาถามดงน<br />

• Which processes and entities in the supply chain are of strategic<br />

importance;<br />

• Which processes and entities in the supply chain have a high relative<br />

impact on the business;<br />

• Where there is a choice between “make” or “ buy”;<br />

• Where there is internal readiness to change.<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

107


Benchmarking<br />

การตงลาดบกอนหลงเมอตองการ การตั้งลําดับกอนหลังเมื่อตองการ Benchmarking<br />

Strategic<br />

Importance<br />

Relative Impact on<br />

Business economics<br />

Benchmark<br />

Priorities<br />

Organisational<br />

readiness<br />

Make versus Buy<br />

Economics<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

108


Logistics & Supply Chain Strategy t & Management<br />

Everyone must learn following subjects:<br />

• Integration of the business process with your business partners<br />

• Increasing people communication (The people process) and technological solution<br />

(Extranet)<br />

• The two important end of supply chain is:<br />

– e-Procurement (e.g. GM)<br />

– e-Sales (Amazon.com, Officemate)<br />

• The change management program with quick wins & benefit<br />

• Partner Relationship Management as the business model for e-PRM<br />

(Collaborative Forecasting & Replenishment Commerce)<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

109


่<br />

่<br />

Logistics & Supply Chain Management<br />

การจดการหวงโซอุปทานใหมประสทธภาพและประสทธผลตองม<br />

ั ีป ิ ิ ป ิ ิ ี<br />

• เขาใจความหมายและหลักการของหวงโซอุปทาน<br />

• มีวินัยในการวางแผนและการบริหารตารางกิจกรรมตางๆ<br />

• มีระดับของการสื่อสารและการเชื่อมโยงของแผนและขอมลตางๆ<br />

มระดบของการสอสารและการเชอมโยงของแผนและขอมูลตางๆ<br />

ระหวางหุนสวนที่ดีเยี่ยม<br />

• มีวิสัยทัศน (Logistics Vision) ที<br />

่มุงที<br />

่จะลดตนทุนและยกระดับความพึง<br />

พอใจของลูกคา<br />

พอใจของลกคา<br />

• รูวาจะบริหารและจัดการโลจิสติกสใหเหมาะสมและสอดคลองกับ<br />

สิงแวดลอมธุรกิจ ิ่ิ่ิ<br />

ิ<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

110


Logistics & Supply Chain Management<br />

การจดการหวงโซอุปทานใหมประสทธภาพและประสทธผลตองม<br />

การจัดการหวงโซอปทานใหมีประสิทธิภาพและประสิทธิผลตองมี<br />

• การใชและการพัฒนาเทคโนโลยี<br />

• การพัฒนาความรวมมือระหวางกันตลอดหวงโซ<br />

• การสรางวัฒนธรรมทีเนน ัั ี่ ี<br />

Serviced and Integrated Business Mind<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

111


Logistics & SCM Strategy &<br />

Management<br />

CRM<br />

SCM<br />

Customer<br />

IT<br />

Logistics<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

112


Logistics & Supply Chain<br />

Strategy and Management<br />

คาถาม????????<br />

คําถาม????????<br />

หรือ<br />

ขอเสนอแนะ!!!!!!!!<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

113


Asst. Prof. Dr. Taweesak Theppitak 114


Case Study for Post Office<br />

• อะไรคือผลิตภัณฑ (Product)<br />

ของบริษัทไปรษณียไทย<br />

• สมมุติวาทานเปน CEO ทีกําลังเขามารับงานใหม ี่ ี<br />

ใหทาน<br />

<br />

กาหนดวสยทศน ํ ิสั ัศ และกลยุทธของบรษทไปรษณยไทยยุค<br />

ิ ั ี ไ<br />

ใหม<br />

Asst. Prof. Dr. Taweesak Theppitak<br />

115


Integrated International Supply Chain<br />

Management<br />

Introduction to Integrated International Supply Chain<br />

Management<br />

Master of Science<br />

Transport & Logistics Management


Objectives<br />

• to explain a terminology and definition of logistics and<br />

supply chain and international trade.<br />

• to examine key components of supply chain process in<br />

international perspective.<br />

• to examine contemporary issues related to international<br />

logistics management.


Assessment Methods<br />

◦ Assignment No. 1 15 คะแนน<br />

◦ Assignment No. 2 25 คะแนน<br />

◦ Class Discussion 30 คะแนน<br />

◦ Class Attendance 5 คะแนน<br />

◦ Site Visiting 15 คะแนน<br />

◦ Final Examination 40 คะแนน<br />

140 คะแนน


Texts, Books and Materials<br />

• Schary, P.B. & Skjott-Larsen, T. 2001, “Managing the Global Supply<br />

Chain”, ” 2 nd edn., Copenhagen Business School Press, Denmark/USA.<br />

• Dornier, P.P., Ernst, R., Fender, M. & Kouvelis, 1998, “Global<br />

Operations & Logistics: Text and Cases”, John Wiley & Sons, Inc., NJ,<br />

USA.<br />

• Taweesak Theppitak, 2005, Logistics Management, Expertnet<br />

Publishing, Thailand.<br />

• Taweesak Theppitak, 2005, Logistics & Supply Chain Management,<br />

Expertnet Publishing, Thailand.<br />

• Bloomberg J.D., Lemay S. & Hanna J.B. “Logistics” , Upper Saddle<br />

River, New Jersey, USA.


Introduction to the Supply Chain


Texts, Books and Materials<br />

•Introduce value chain concept as a tool for<br />

analysing supply ppy chain.<br />

•Describe differences between supply<br />

chain, value chain and commodity chain.<br />

•Discuss issues in global logistics and<br />

supply chain environments.<br />

•Case studies.


Introduction to the Supply Chain<br />

Introduction to the concept<br />

•Value Chain is a framework to add value<br />

to the output of the firm<br />

Supporting Activities<br />

Firm Infrastructure<br />

HRM<br />

Technology Development<br />

Procurement<br />

Margin<br />

Inbound<br />

Logistics<br />

Operations<br />

Outbound<br />

Logistics<br />

Marketing<br />

&<br />

Sales<br />

After<br />

Sales<br />

services<br />

Margin<br />

Primary Activities


What is a Value Chain?<br />

•A A value chain is a sequence of<br />

business functions in which utility<br />

(usefulness) is added to products or<br />

services as they move from supplier<br />

to end customer<br />

•Value auechains saeote are often viewed edlike ea<br />

river--upstream and downstream<br />

• NOTE: Value Chain discussion draws heavily from Michael<br />

Porter, Competitive Advantage--Creating and Sustaining<br />

Superior Performance


Primary and Support Activities<br />

•Primary Activities<br />

Inbound logistics<br />

•Includes activities associated with<br />

receiving, storing, and disseminating<br />

inputs to support the product or service,<br />

including transportation, material handling,<br />

warehousing, inventory control, vehicle<br />

scheduling, and returns to suppliers


Primary and Support Activities<br />

•Primary i Activities<br />

iti<br />

Operations<br />

•Activities associated with transforming<br />

inputs into final form, such as machining,<br />

packaging, assembly, equipment<br />

maintenance, testing, printing, and facility<br />

operations


Primary and Support Activities<br />

•Primary Activities<br />

Outbound logistics<br />

◦Includes l d activities iti associated with physically<br />

collecting, storing, and distributing a<br />

product or service to customers, such as<br />

finished goods warehousing, material<br />

handling, delivery, order processing, and<br />

scheduling


Primary and Support Activities<br />

• Primary Activities<br />

Marketing and Sales<br />

◦Includes activities associated with providing<br />

a means to which buyers can purchase the<br />

product and inducing them to do so, such<br />

as advertising, promotion, sales force<br />

efforts, job quoting, channel selection,<br />

channel relations, and pricing


Primary and Support Activities<br />

•Primary Activities<br />

Service<br />

•Includes activities associated with<br />

providing service to enhance or<br />

maintain the value of the product, such<br />

as installation, repair, training, parts<br />

supply, and product adjustment<br />

t


Primary and Support Activities<br />

•Primary Activities<br />

•In any firm, all the categories of primary<br />

activities iti are present to some degree<br />

and play some role.<br />

•Key primary activities often differ from<br />

industry to industry.


Primary and Support Activities<br />

• Support Activities<br />

Firm infrastructure<br />

•It does not mean building, or infrastructure, but means<br />

a unit which generates useful information for decision<br />

making and operations including accounting, finance,<br />

law department.<br />

•Consists of a number of activities, including general<br />

management, planning, government affairs, finance,<br />

accounting, legal, and quality management<br />

•While firm infrastructure is sometimes viewed as<br />

overhead, it can be a powerful source of competitive<br />

advantage.


Primary and Support Activities<br />

•Support Activities<br />

Human resource management<br />

•Consists of activities involved in<br />

recruiting, hiring, training, developing,<br />

and compensating all types of<br />

personnel


Primary and Support Activities<br />

• Support Activities<br />

Technology Development<br />

•Includes activities typically associated with MIS,<br />

engineering, and R&D and involve activities that<br />

seek to improve product and processes.<br />

•New product and process development<br />

are primary concerns of technology<br />

development support activities


Primary and Support Activities<br />

•Support Activities<br />

◦Procurement<br />

• Involves activities associated with<br />

identifying, evaluating, selecting,<br />

managing, and developing sources of<br />

supply


Primary and Support Activities<br />

•Support Activities<br />

◦Procurement<br />

• Though purchased inputs are<br />

commonly associated with primary<br />

activities, purchased inputs are<br />

present in every value activity,<br />

including support activities.


Primary and Support Activities<br />

•Support Activities<br />

-Procurement<br />

• Examples:<br />

• Supplies<br />

• Travel services<br />

• Media


What is Value Chain Integration?<br />

•Value chain integration involves<br />

bringing together different groups,<br />

functions, or organizations, either<br />

formally or informally, physically or<br />

by information technology, to work<br />

jointly and often concurrently on a<br />

common business-related<br />

assignment purpose.


Horizontal Integration Across the Value Chain<br />

•Examples of how firms integrate<br />

across the value chain--<br />

◦Committees/groups/teams<br />

/ /t<br />

◦Shared and linked information systems<br />

◦Integrated performance<br />

goals/objectives/measures<br />

◦Strategy development process.


Value Chain Management Issues<br />

•Configuration: where to build factories<br />

◦Independent p plants supplying ppy to local markets<br />

◦Network of plants supplying to specific region<br />

◦Centralized manufacturing, supplying to the<br />

whole world


Value Chain Management Issues<br />

•Compatibility: with competitive strategy<br />

(Multi-domestic vs. global)<br />

•Coordination: making logistics, channel<br />

management and CRM work together<br />

•Control: centralized, decentralized, and<br />

knowledge acquisition and dissemination


Value Chain Decision Constraints<br />

•Customer characteristics<br />

•Product characteristics<br />

•Channel characteristics<br />

•Environmental E i t l characteristics<br />

ti


Fig. 1 Current business framework<br />

Product Development<br />

Customer Relations<br />

Supply Chain Mgt.<br />

Product<br />

Supply Chain<br />

Development<br />

Mgt<br />

Logistics<br />

Customer<br />

Relations


Introduction to the Supply Chain<br />

Mannheim et al. (1994) explain in 3 parallel<br />

l<br />

flows:<br />

• Product development – the process is the core<br />

of the firm determining what it produces & how it<br />

chooses to compete in the marketplace.<br />

• Customer relations – This flow encompasses the<br />

activities iti related to the market: 4Ps.<br />

• The supply chain – The flow is the activities<br />

involving i the organisation & flow of physical to<br />

produce & deliver the product to end customer.


Commodity chain<br />

• Commodity chain is series of independent<br />

enterprises and internal organisational units,<br />

with individual transactions determined by the<br />

market, without overall direction by a single<br />

dominant firm.<br />

• The weaknesses of the commodity chain are:<br />

◦It required firms to duplicated their activities at each<br />

stage in the process, principally inventory;<br />

◦ the system could not respond rapidly to change, other<br />

than through the price mechanism.<br />

• It proved to be inadequate in meeting the<br />

demands of a modern, technologically oriented<br />

global society.


Introduction to the Supply Chain<br />

Definitions of Supply Chain<br />

• A coordination of a company’s activities (both<br />

internal and external), with objective is to develop<br />

and improve long-term performance of the<br />

company and its partners through the chain.<br />

(Shapiro, 2001)<br />

• The management of upstream and downstream<br />

relationship with suppliers and customers to deliver<br />

superior customer value at less cost to the supply<br />

chain as a whole. (Christopher M. 1998)<br />

• “An integrative approach to manage the total flow<br />

of a distribution channel from the supplier to the<br />

ultimate user” (Cooper & Ellram, 1993)


Introduction to the Supply Chain<br />

Definitions of SC<br />

• The processes which are effectively and<br />

efficiently coordinating and linking activities<br />

with the purpose is to create and add a bundle<br />

of benefit and value to stakeholders through<br />

the chain (Theppitak, 2003)<br />

• Distribution channel includes connection or<br />

linking by a common process to stakeholders<br />

• Integration means the coordination of a network<br />

of separate operations to achieve common<br />

objectives in physical & information flow.


Who is stakeholders in supply chain


Introduction to the Supply Chain<br />

The customer orientation<br />

•Push orientation – product & materials<br />

move towards the final market, driven by<br />

forecast demand.<br />

•Pull orientation – SC originates with<br />

customer & decisions flow backward<br />

through the supply.


Fig. 2 The Tools of logistics<br />

Transportation<br />

Inventory<br />

Information<br />

Transport<br />

Inventory<br />

Information


Introduction to the Supply Chain<br />

• Logistics interacts t with every area of the firm.<br />

Product<br />

Design<br />

Procurement Production Marketing Finace Transport<br />

Product Flow<br />

•Fig.<br />

3 Product flow in logistics


Introduction to the Supply Chain<br />

•Fig. 4 Logistics i and the supply chain<br />

Logistics boundaries<br />

Supplier<br />

Firm<br />

Customer<br />

Transport Inventory Scheduling Information<br />

Supply Chain Boundary<br />

Supplier<br />

Firm<br />

Customer


The characteristics of the Supply Chain<br />

• The SC is a complete process for providing goods & services to final<br />

users.<br />

• Stakeholders include all parties: logistics operations from initial material<br />

supplier to final user.<br />

• Management extends across organisational boundaries to include<br />

planning & control over operations of other organisational units.<br />

• A common information system accessible to all members makes<br />

coordination possible between organisations.<br />

• Members achieve their own individual objectives through the<br />

performance of the SC as a whole.<br />

• The SC may also share members with other supply chains.


Understanding the global supply chain<br />

•Understanding the SC is prerequisite to<br />

managing g it. The 3 tasks cover:<br />

1. To develop a framework for analysis<br />

2. To recognise the systemic nature of the SC;<br />

3. Identify the processes that are involved.


The framework of the Supply Chain<br />

• Fig. 5 The framework of the supply chain<br />

Core operations<br />

Supply Chain<br />

Management<br />

Corporate<br />

Management<br />

Environment<br />

Processes<br />

Activities<br />

Demand<br />

Distribution<br />

Production<br />

Procurement<br />

Product<br />

Organizations


The SC is both a network & a system<br />

•The network properties involve the sequence<br />

of connections among organisational units for<br />

product & information flow.<br />

•The systemic properties are interdependence<br />

y p p p<br />

of activities, organisations & processes.


Five operating processes in supply chain<br />

• Product – product design determines production<br />

processes, also determine logistics requirements for<br />

delivery.<br />

• Production – add value to product flow.<br />

• Procurement – links stages of manufacturing together. In<br />

effect, purchasing becomes ‘managers of outside<br />

production.’<br />

• Distribution – links between production & market. It<br />

influences logistics through market requirements for<br />

service & efficiency.<br />

• Demand management – this includes several related<br />

activities related to the market: forecasting, order<br />

processing, market coordination, sales support activities.


The management tasks<br />

• The primary task is to integrate each stage into a larger<br />

system through coordination.<br />

• Second task is manage assets across the SC,<br />

specifically inventory, to serve customers & reduce<br />

costs.<br />

• The concept of the SC is more than coordination and<br />

managing inventory, but creating and adding a value to<br />

customers.<br />

• It has the potential for strategy, to be valued by<br />

customers, more efficient & profitable.<br />

• It becomes a source of competitive advantage through<br />

the effectiveness of the entire chain & organisational<br />

relations.<br />

• Building these relationships is difficult, but also difficult to<br />

emulate.<br />

uate


The management tasks<br />

•Fig. 6 The management concept of the SC<br />

Strategy<br />

Coordination<br />

Asset Management<br />

Customers<br />

Cost Management


Global issues<br />

• Many international ti dimensionsi are involved in<br />

supply decisions for raw materials, production<br />

components or international marketing.<br />

• The movement towards global business is<br />

inevitable.<br />

• National & regional infrastructures of<br />

telecommunications and transport are<br />

converging.<br />

• The global SC deals with a common structure,<br />

but needs to meet local cultures & economic<br />

conditions.


The 5 new corporate environments<br />

•The customer orientation<br />

•The decline of mass production<br />

•Small inventories<br />

•Development of electronic commerce<br />

•Smaller organisations


Introduction to the Supply Chain<br />

•Fig. 7 The global supply chain<br />

Supply Chain<br />

Management<br />

Decision<br />

Flow<br />

Information<br />

System<br />

Supply Chain<br />

Supplier -2 Supplier -1 Manufacturer Distributor<br />

Customer<br />

Organizational<br />

Management<br />

Order<br />

Transaction<br />

Flow<br />

Product and<br />

Material<br />

Flow<br />

Functiona<br />

l<br />

Activities<br />

Product<br />

Collaboration<br />

Reverse Logistics<br />

Logistics Service Providers<br />

and Carriers


The Global Supply Chain<br />

• It comprises of 5 successive stages:<br />

◦ Customer<br />

◦ Distribution<br />

◦ Final manufacturing & assembly<br />

◦ First-tier ti suppliers<br />

◦ Second-tier suppliers<br />

• Products & materials flow forward, towards the<br />

customer.<br />

• After the product is consumed, product recycling<br />

becomes a material flow backward to a point of reuse or<br />

renovation.<br />

• Information flows in both directions: orders and<br />

transactions move towards the source of supply.<br />

• Transport provides the physical links between stages.


Tactics to implement SCM<br />

• Developing strong relationships with SC<br />

members<br />

• Developing high-quality products and services<br />

• Sharing information among SC members<br />

• Reducing the order cycle time<br />

• Minimising inventory levels across the supply<br />

chain<br />

• Reducing the number of suppliers and carriers<br />

• Building commitment to SCM. (Bloomberg et al.,<br />

2002)


Introduction to the Supply Chain<br />

Any Question????<br />

Or<br />

Comment!!!!!!!!!


A Total Cost Concept<br />

Cost, in dollars<br />

Total cost<br />

Inventory cost<br />

(includes<br />

storage and<br />

intransit<br />

Cost of<br />

transportation<br />

service<br />

(Number of warehouses)<br />

Source: Ballou


Concept of Trade-Off<br />

Before<br />

Trade Off<br />

After<br />

Inventory Cost<br />

Reduction<br />

Transportation<br />

Cost (Sea)<br />

Packaging<br />

Transportation<br />

Cost (Air)<br />

Storage Facilities<br />

Communications


A Cost Conflict in Total Cost Concept<br />

dollars<br />

Cost, in<br />

Inventory cost<br />

(includes<br />

storage and<br />

intransit<br />

Total cost<br />

Cost of<br />

transportation<br />

service<br />

Rail Truck Air<br />

Transportation service<br />

(greater speed and dependability)<br />

Source: Ballou


Integrated International Supply Chain Management<br />

Structure and Process<br />

Ph.D Program<br />

MBA in Transport & Logistics Management


Scope of the Presentation<br />

• Introduce what is meaning of SC structure and<br />

process<br />

• Explain how to use business process re-<br />

engineering to improve SC activities<br />

• Explain meaning of core competency and<br />

outsourcing<br />

• Introduce time related strategy i.e. Full<br />

speculation, Manufacturing postponement,<br />

Logistics postponement, Full postponement.


Structure and Process<br />

• Logically, customer decisions on products,<br />

delivery and other service preferences should<br />

ultimately shape the organisation of the SC and<br />

determine its performance requirement.<br />

• The fundamental issue is conflict between process<br />

of the SC and organisational boundaries.<br />

• Oraganisations manage & supply resources, but<br />

activities must have both coordinated operations &<br />

physical links to make the SC operate.<br />

• The management task is to identify necessary<br />

operations & select their organisational location to<br />

realise the performance of the SC as a whole.


Structure and Process<br />

• SCM must organise & manage a potentially<br />

worldwide supply and distribution ib ti network that<br />

t<br />

delivers a variety of products and services that<br />

respond directly to customers in global markets.<br />

• The value chain – is a concept to describe a<br />

sequence of stages of value-adding adding activities for<br />

product flow within the firm.<br />

• Value results from any activity that makes the final<br />

product worth more to the final customer.<br />

• It would be reconfigurated the Value Chain for<br />

greater efficiency through eliminating redundant<br />

activities or shifting activities between stages.


Structure and Process<br />

• The barriers require redundant functions for<br />

each stage, e.g. marketing & procurement<br />

to negotiate transfer of ownership and<br />

responsibility.<br />

• The objective of SCM is to eliminate this<br />

redundancy by integrating operations, to<br />

make the system as a whole more<br />

responsive to customers and to reduce the<br />

total costs of product flow.<br />

• The ultimate customer becomes the final<br />

judge of value.


Structure and Process<br />

• Fig. 2 Activity and organisations in the SC<br />

Supplier #2 Supplier #1 Manufacturer Distributor Customers<br />

Coordination<br />

Procurement<br />

Procurement<br />

Procurement<br />

Production<br />

Production<br />

Inventory<br />

Product design<br />

Inventory<br />

Forecasting<br />

Inventory<br />

Demand management<br />

Order management<br />

Communication Product design Communication<br />

Transport Transport Transport Transport


Business process re- engineering (BPR)<br />

• BPR – a technique as the total t redesign of fth<br />

the<br />

business processes in the company, leading to a<br />

change in the way work is done.<br />

• Michael Hammer (1996) describes as “a<br />

complete end-to-end set of activities that<br />

together create value for a customer”<br />

• It is restarting from scratch, reinventing the way<br />

to produce goods and services.<br />

• It needs a complete reanalysis of all the<br />

processes, to increase the velocity of processes,<br />

obtain cost reduction through labor reduction,<br />

and improve the quality of the service provided<br />

to the clients.


Business process re- engineering (BPR)<br />

• Hammer divides activities into those that<br />

add value, those that do not, but are<br />

necessary to support value-adding adding<br />

activities and waste: activities that do not<br />

add or enable value.<br />

• The concept is still valid and applicable to<br />

organisational problems.<br />

• It applies to the SC as the starting point of<br />

the SC design.


Business process re- engineering (BPR)<br />

• Any business is a process to deliver a product to<br />

a customer.<br />

• Business process re-engineering engineering i (BPR)<br />

becomes the vehicle to re-organise<br />

this flow.<br />

• BPR is a radical redesign of fb<br />

business<br />

operations, focusing on creating value through<br />

the end product of a chain of activities.<br />

• Organisations use BPR to refocus their internal<br />

activities toward a common goal.<br />

• The driving force is a search for efficiency and<br />

more effective response to customer needs.


Business process re-engineering engineering (BPR)<br />

• What to do<br />

– Strong involvement of top management.<br />

– Create a conscience in the people regarding quality,<br />

costs and services.<br />

– Manage the cultural transformation and keep all people<br />

informed about the coming changes.<br />

– Any function or activity which does not effectively add<br />

value to the process must tb be discontinued.<br />

d<br />

– Decisions must be taken where the work is being<br />

performed.<br />

–Work<br />

in parallel rather in a sequential manner.<br />

– Break the rules and ignore fundamental organisation<br />

beliefs.<br />

– Establish ambitious goals. The great advantage of BPR<br />

is to bring substantial improvement.<br />

– Consider the existing resources on a global level and<br />

not only on a local level.


Business process re-engineering engineering g (BPR)<br />

• What not to do<br />

– Reorganisation by function or specialisation, leading to<br />

a sectarian vision.<br />

– Inadequate vision i of fth the business of fth the companies.<br />

– Application to only part of a process.<br />

– Lack of support from top management.<br />

– Lack of resources to implement changes.<br />

– Use of technology which is not yet assimilated by the<br />

organisation, or not yet available.<br />

– Too short maturation ti time.<br />

– In adequate involvement of human resources with the<br />

change process.


Business process re- engineering (BPR)<br />

• Case : Hackman Designor, Finnish i Co.,Ltd.<br />

• Process redesigning in 5 areas:<br />

– Reororganising logistics;<br />

– Redesigning i information systems;<br />

– Creating a process-oriented oriented organisation;<br />

– Establishing a marketing logistics interface; and<br />

– Global coordination combined with local<br />

management. (Juga, 1996)


Business process re- engineering (BPR)<br />

• Three core processes are identified and<br />

developed:<br />

– Meeting customer demands through rapid<br />

delivery of broad product lines;<br />

– Improved customer service through more<br />

efficient i order processing and delivery; and<br />

– Faster product development and<br />

commercialisation.<br />

i


The Structure of the Supply Chain<br />

• Traditionally, activities iti defined d their<br />

organisations, e.g. manufacturing includes<br />

multiple activities involving production.<br />

• The roles is now changing.<br />

g<br />

• The activity sequence defines a process of<br />

product flow.<br />

• Management in the SC concerns not only<br />

with individual id activities, ities but also with<br />

organising these activities more<br />

effectively.


The Structure of the Supply Chain<br />

• A case of Elecktra Electronics as<br />

computer manufacturer, work as functional<br />

activities which are modular building<br />

blocks. See Figure 3.<br />

• There is a lack of central direction of<br />

stages.<br />

• The general tendency is to build<br />

inventories based on forecasting demand,<br />

a push inventory environment.


The Structure of the Supply Chain<br />

• Fig. 3 Activity deployment in the SC<br />

Supplier #2 Supplier #1 Manufacturer Distributor Customer<br />

P-Pr-l-S T P-Pr-l-S T P-Pr-l-S T P-l-S T P-l-C<br />

Product Flow<br />

The specific notation is as follows :<br />

Information flow<br />

P = procurement<br />

Pr = production<br />

I = inventory<br />

S = sales and marketing activities<br />

T = transport<br />

D = distribution<br />

C = consumption


What are activities<br />

• one of SC objectives is to reduce cost by<br />

eliminating all unnecessary inventory.<br />

• Inventory serves 2 useful purposes:<br />

– to protect the SC against unpredicted<br />

demands;<br />

d<br />

–To<br />

protect intermediate stages against<br />

unpredicted delays and other failures.<br />

• Increasing coordination can eliminate the<br />

necessity of inventory, e.g. JIT.


The Structure of the Supply Chain<br />

• Fig. 4 Activity shifting in the SC<br />

Supplier #2 Supplier #1 Manufacturer Distributor Customer<br />

P-Pr-l-ST Pr P-Pr-l-ST Pr P-Pr-S Pr T P-l-S<br />

T P-l-C<br />

Product Flow<br />

•Using of JIT Production<br />

•Place it close to the market<br />

Information flow


Activity shifting in the SC<br />

• Fig. 4, it places product close to the market,<br />

where orders can be filled rapidly. At the<br />

same time, orders for replenishment must<br />

be filled directly from production both<br />

manufacturers and their suppliers.<br />

• This is also a push inventory system, and<br />

may allow suppliers to produce directly to<br />

manufacturers’ orders.<br />

• It’s possible in theory, if customers are able<br />

to wait for delivery, to avoid inventories.


The Structure of the Supply Chain<br />

• Fig. 5 Activity shifting in the SC<br />

BROKER/MANAGER<br />

SUPPLIER 2 SUPPLIER 1<br />

SUBCONTRACT<br />

MANUFACTURER<br />

DISTRIBUTOR<br />

CUSTOMER<br />

P-Pr-l-S T P-Pr-l-S T P-Pr-l-S T l-P-S T P-l- C<br />

Product flow<br />

Coordination flow<br />

• Manager develops, designs, & market product<br />

• athletic shoes, garment, electronics industries.


Activity shifting in the SC<br />

• Fig. 5 shows a set of design options<br />

through activity shifting.<br />

• Manufacturers employ subcontract<br />

companies that specialise in production by<br />

developing, designing i and marketing the<br />

products.


Fig. 6 Customised order SC<br />

The variant involves the customer in order<br />

process, selecting options and even variations<br />

of a basic production<br />

1. Produce component inventories for assembly close<br />

to market, but suppliers conforming to final<br />

customer orders, & delivering on short notice. (Dell)<br />

Product flow<br />

Coordination flow<br />

Broker/Manager<br />

Option#1<br />

DS<br />

Supplier 2 Supplier 1<br />

P-Pr-I-S----T<br />

Option#2<br />

Supplier 2<br />

P-Pr-I-S----T<br />

---P-Pr-I-S---T<br />

Supplier 1<br />

---P-Pr-I-S---T<br />

Final<br />

Assembly<br />

Pr-I---T------<br />

Customer<br />

---P-I-C<br />

2. Avoid final stage of manufacturing, shifting<br />

them forwards the market, depends on modular<br />

product design. A wider range of products.


Activity shifting in the SC<br />

• Fig. 6 shows a set of design options has to<br />

deal with customised ordering.<br />

• The variant involves the customer in the<br />

order process, selecting options and even<br />

variations of a basic product.<br />

• One approach produces component<br />

inventories for assembly close to market,<br />

but with suppliers conforming to final<br />

customer orders, possibly delivering on<br />

short notice.


Activity shifting in the SC<br />

• Second approach avoids final stages of<br />

manufacturing, shifting them forward<br />

towards the market, which reduce<br />

inventory, but also depends on module<br />

product design.<br />

• Customer choice can select components<br />

before final assembly that involve<br />

completely separate SC.<br />

• Modular products e.g. computers engage<br />

component with their own networks of<br />

suppliers.


What are activities<br />

• Specialised activities – a system of product<br />

flow. Its scope extends to all tasks of the<br />

SC.<br />

• As building blocks, activities take on a<br />

specific set of characteristics ti (Bucklin,<br />

1960):<br />

– They should be related both to each other &<br />

the objectives of the SC as a system;<br />

– They must be manageable as individual units.<br />

– They must be economically significant, adding<br />

value and incurring cost;


What are activities<br />

• They must have economic characteristics<br />

that create incentive for firms to specialise<br />

in them:<br />

• Economies of scale (volume)<br />

• Economies of scope (Products)<br />

• Specialisation in specific tasks<br />

• Specific operational factors<br />

– Their specific function should not be duplicated<br />

within the SC


What are activities<br />

• Most activities can be located at any of several<br />

different stages within the SC.<br />

• One option is to assume their traditional location,<br />

e.g. production within a manufacturing<br />

organisation.<br />

• Another is to combine them with other activities<br />

as part of different organisations, e.g. a DC<br />

operations within a manufacturing organisation.<br />

• An alternative is to outsource activities e.g. final<br />

assembly to another organisation.<br />

• Third, is to create another oraganisation to<br />

perform this operation as a specialised task.


Core competencies & outsourcing<br />

• Core competencies drive the enterprise.<br />

• It defines activities that an organisation<br />

should retain for competitive advantage.<br />

• Sources of competitive advantage – creating<br />

brand loyalty, y, knowledge of unique<br />

technologies, and skills in management<br />

coordination and execution.


Core competencies & outsourcing<br />

• Core and outsourcing are complementary<br />

concepts.<br />

– The core deals with sources of competitive<br />

advantage, outsourcing shifts activities that do<br />

not add competitive i value to other<br />

organisations that can perform them at least as<br />

efficiently.<br />

– It releases management and capital resources.<br />

– Companies that t outsource can concentrate<br />

t<br />

resources areas that give them advantage,<br />

where they can earn higher rate of return.


Core competencies & outsourcing<br />

• Outsourcing creates external supply<br />

chains.<br />

• Outsourcing is now an interorganisational<br />

necessity.<br />

• Case :<br />

– Hewlett-Packard<br />

– SBU with 10 employees to design<br />

& market low-cost printer units.<br />

– Production, logistics & procurement to be performed by<br />

other organisations.<br />

– Nike – designs & markets athletic ti shoes & cloths.<br />

– Contract manufacturing distribution & logistics are<br />

performed by other firms.


Scale, scope & specialisation<br />

• Economies of scale – explain why companies<br />

outsource activities that would otherwise be<br />

retained as a core competency.<br />

• Economies of scope – Cost reduction that can be<br />

achieved as additional products are handled<br />

d<br />

through a single facility.<br />

• Specialisation – is important t reason for<br />

outsourcing, to gain experience and learns how to<br />

make its operations efficient, it gain advantage<br />

through its expertise and time advantage over<br />

potential competition.


Postponement<br />

• Two time-oriented<br />

forces operate on the SC.<br />

– Speculation;<br />

– Postponement. (Pagh & Cooper 1998).<br />

• Speculation – the act of producing and placing<br />

inventory close to the market at the earliest<br />

possible time to reduce SC costs.<br />

• Postponement – the act of delaying ‘changes in<br />

product form or identify until the last possible<br />

moment’ (Bucklin 1965)


Postponement<br />

• Cooper (1998) outline a continuum<br />

involving 4 distinct strategies:<br />

– Full speculation<br />

– Manufacturing postponement<br />

– Logistics postponement<br />

– Full postponement


Full speculation<br />

• Full speculation positions finished product<br />

inventory as close as possible to the market.<br />

• It means multiple stocking points and<br />

inventories.<br />

• Inventory levels control production.<br />

• Disadvantage – the costs of facilities and<br />

inventories.<br />

• It’s useful where has high service requirement<br />

as in health care and spare parts for machines<br />

where immediate support is needed.


Logistics postponement<br />

• Logistics postponement consolidates inventory<br />

into one central location, a DC that serve<br />

multiple local markets.<br />

• It’s still speculation in the sense of holding<br />

inventory but is also postponement in avoiding<br />

commitment until the customer orders.<br />

• Inventory drives production orders as before.<br />

• Advantage – reduction of total inventory.<br />

• Disadvantage – longer distance for delivery.


Manufacturing postponement, MP<br />

• MP mixes postponement t and speculation.<br />

• Products are produced to an intermediate form<br />

(e.g. modular components, packaged) or<br />

otherwise completed at a point downstream from<br />

manufacturing such as DC or distributor.<br />

• It provides more flexibility to the logistics system<br />

• Inventory levels of components control<br />

production, but customer orders control final<br />

assembly.<br />

• It requires advance planning in product<br />

development and choice of place and partners<br />

for final stages of production.


Manufacturing postponement, MP<br />

• Advantage –<br />

– reduction of finished production inventory,<br />

– ability to meet individual customer requirements,<br />

– product extensions to new markets<br />

– Economies of scale in production of components and<br />

– Economies of scope in developing multiple products.<br />

• Disadvantage –<br />

– Time delays for final stages of production<br />

– A potential loss in control over production.


Full postponement, FP<br />

• FP delays manufacturing until the order is<br />

received.<br />

• It represents a shift towards more postponement<br />

t<br />

and less speculation.<br />

• Some components are usually produced d in<br />

advance, though to a level where financial<br />

commitments may not be high.<br />

• Advantage – lack of reduction in inventory and to<br />

complete flexibility to meet new orders.<br />

• Disadvantage – production cost and time to<br />

produce to meet orders.


Factors that determine postponement p<br />

versus<br />

speculation strategy<br />

– Product – product life cycle, monetary density<br />

and value profiles, and product design.<br />

– Market demand – related to service,<br />

requirement for short delivery times and high<br />

frequency favor speculation policies.<br />

– Supply – manufacturing and logistics where<br />

economies of scale and scope can reduce<br />

costs or where specialised knowledge is<br />

necessary.


The virtual supply chain<br />

• Three themes dominate this view:<br />

– A complete customer orientation;<br />

– Flexibility through temporary connection; and<br />

– Instantaneous connection of all parties in the chain.<br />

• The customer dominates the virtual chain.<br />

• Parties are coordinated d through h e-communication.<br />

• The chain is organised around the customer<br />

order. “A value net begins with customers, allows<br />

them to self-design products and build to satisfy<br />

actual demand”.<br />

• Each member becomes a partner through real-<br />

time e-communication, with joint planning &<br />

shared knowledge.


Structure and Process<br />

Any Question????<br />

Or<br />

Comment!!!!!!!!!


916572:การบริหารระบบโลจิสติกสระหวางประเทศ<br />

<br />

(Global Logistics Management)<br />

Distribution<br />

ib ti<br />

Master of Science<br />

Transport & Logistics Management


Introduction<br />

• Global l logistics and distribution ib ti have played a<br />

critical role in the growth and development of<br />

world trade and in the integration of<br />

manufacturing on a worldwide scale.<br />

• The use of appropriate distribution channels in<br />

international markets increases the chances<br />

of success dramatically.<br />

• In the United States, the total logistics cost<br />

has amounted to ten to eleven percent of the<br />

country’s GDP every year in the last decade.


Introduction (contd.)<br />

• As firms start operating on a global basis,<br />

logistics managers need to manage shipping of<br />

raw materials, components, and supplies<br />

among various manufacturing sites at the most<br />

economical and reliable rates.<br />

• The development of intermodal transportation<br />

and electronic tracking technology has resulted<br />

in a quantum jump in the efficiency of the<br />

logistic methods employed by firms worldwide.


Definition of Global Logistics<br />

• Global logistics is defined as “the design<br />

and management of a system that directs<br />

and controls the flows of materials into,<br />

through and out of the firm across<br />

national boundaries to achieve its<br />

corporate objectives at a minimum total<br />

cost”.


Definition of Global Logistics<br />

• Materials management refers to the inflow<br />

of raw material, ,p parts, and supplies<br />

through the firm.<br />

• Physical distribution refers to the<br />

movement of the firm’s finished products<br />

to its customers, consisting of<br />

transportation, warehousing, inventory,<br />

customer service/order entry, and<br />

administration.


Managing Global Logistics<br />

• The following factors contribute to the<br />

increased complexity and cost of global<br />

logistics:<br />

• Distance<br />

• Exchange rate fluctuations<br />

• Foreign intermediaries<br />

i<br />

• Regulation<br />

• Security


Managing Global Logistics<br />

• Modes of Transportation<br />

ti<br />

• Ocean Shipping<br />

•Liner Service<br />

•Bulk Shipping<br />

• Air Freight<br />

• Land Transport<br />

• Piping System<br />

• Intermodal Transportation


Managing Global Logistics<br />

• Warehousing and Inventory Management<br />

• Hedging Against Inflation and Exchange<br />

Rate Fluctuations<br />

• Benefiting from Tax Differences<br />

• Logistic Integration and Rationalization<br />

• E-Commerce and Logistics


• Fig. 1 Distribution<br />

Distribution<br />

Supply Chain<br />

Management<br />

Decision<br />

Flow<br />

Information<br />

System<br />

Supply Chain<br />

Supplier -2 Supplier -1 Manufacturer Distributorib<br />

Customer<br />

Organizational<br />

Management<br />

Order<br />

Transaction<br />

Flow<br />

Product and<br />

Material<br />

Flow<br />

Functiona<br />

l<br />

Activities<br />

iti<br />

Product<br />

Collaboration<br />

Reverse Logistics<br />

Logistics Service Providers<br />

and Carriers


Distribution<br />

• Distribution ib ti links the customer to the supply chain.<br />

• It is a set of functional activities: order processing<br />

& transmission, DC operations, inventory holding<br />

and control and delivery.<br />

• The distribution requires heavy investment in<br />

inventory for sorting and stock holding for product<br />

availability<br />

• The result is high inventory cost and often a lack<br />

of responsiveness to changes in the market.<br />

• Further, public policy now requires distribution to<br />

take on an additional task: recovery of consumed<br />

& waste materials.


Distribution<br />

• The presentation covers six topics:<br />

• The complexity of distribution<br />

• The new environment of distribution<br />

• The logistics of retail<br />

• International issues in distribution<br />

• E-commerce and the supply chain<br />

• Reverse logistics


Distribution<br />

• Distribution’s role in supply chain:<br />

• The entry of real-time orders directly into the<br />

production schedule;<br />

• The coordination of production with demand<br />

to reduce inventory requirement;<br />

• Increase flexibility to take on new products<br />

and replace the old; and<br />

• Changes in the institutions themselves into<br />

new form to meet new demands.


Complexity of Distribution<br />

• The complexity of distribution<br />

ib ti<br />

• Uncertain demands<br />

• New intermediaries<br />

• Shifting in power from manufacturers to fewer retailers, as major<br />

intermediate customers.<br />

• Intervention of governments and trade associations<br />

• The variety of requirements on the system.<br />

• Shorter product life cycles, more frequent promotions,<br />

increase price pressures & changes in the patterns of<br />

demand and intermediate practices.<br />

• The task is to supply requirements of ffi final product<br />

variety & variation in local distribution channels.


New environment of Distribution<br />

• The new environments<br />

• Intense competition<br />

• New and renovated institutions change the<br />

task requirements.<br />

• Technology – IT, telecom.<br />

• Modern transport.<br />

t<br />

• E-commerce.<br />

• Lean retailing – combine of IT, transport &<br />

simplified processing.


New environment of Distribution<br />

• Traditional distribution ib ti channel, keeping inventory<br />

at retail store and at local DC.<br />

• It was a system that was slow to respond to<br />

changes in demand, low service level and often<br />

out of stock on high demand items.<br />

• The older system is being replaced which more<br />

variety, faster service and lower cost forced the<br />

change.<br />

• Inventories are becoming centralised in fewer<br />

stock locations, minimising in-store inventories,<br />

eliminating local DCs in favor of CDCs holding<br />

complete inventories and direct distribution from<br />

factory to store & in some case to final customers.


Distribution<br />

• The 3 categories will be considered:<br />

• Food<br />

• Clothing<br />

• automobiles


Food<br />

• Food retailing has been moving towards larger<br />

units.<br />

• For distribution, change occurred in stock control<br />

and delivery practice.<br />

• Tesco’s, the largest retailer in Europe, shifts from<br />

direct store delivery to central DCs with<br />

consolidated daily store deliveries.<br />

• Automated ordering processes reduced<br />

processing costs and both in-store and<br />

distribution centre inventories.<br />

• Ex. Wal-Mart (largest retailer) & P&G (largest<br />

grocery package good manufacturer) – as basis<br />

of ordering replenishment stocks & production<br />

schedules. Incl. to cross-docking & direct delivery<br />

to retail stores.


Garments<br />

• Clothing is normally sold with long-interval reorder cycles.<br />

• Department store order once per season, forecasting<br />

demand and building markdowns into the pricing structure<br />

to clear away excess inventory.<br />

• The need for faster ordering & delivery leads to changes<br />

not at the retail level, but in manufacturing as well, to<br />

shorten production cycles for better response.<br />

• Ex. Samples are sent to HQ to be converted into<br />

production o designs s & transmitted electronically ec ca to HK to be<br />

manufactured in small quantities for market testing. The<br />

products are sent to select stores to test market<br />

acceptance. Confirmation leads to production orders that<br />

are also air freighted to UK for distribution to the entire<br />

chain. The entire cycle takes 5 weeks, producing goods<br />

with rapidity, matched to the market.


Garments<br />

• A wide variety of logistics strategies may be<br />

used:<br />

• The Limited exemplifies a rapid-to<br />

to-market<br />

approach.<br />

• Introducing waves of new assortments, using<br />

not rapid production cycles but a continuous<br />

flow of merchandise. (using by Esprit)<br />

• The low-cost approach followed by retailers<br />

such as Wal-Mart & Kmart.<br />

• Dvorak & Van Paasschen (1996<br />

1996) noted that<br />

“one size doesn’t fit all”.


automobiles<br />

• Most dealers have a traditional pattern of holding large &<br />

costly inventories of cars to meet customer requests for<br />

different options & colours.<br />

• Ex. Ford held cars in a regional inventory pool with<br />

enough variety of colours and options. Dealers can draw<br />

on these pool to meet customer requests. It reduces cost<br />

of dealer inventory, but increase total distribution cost for<br />

manufacturer. ac u It requires es the customer to wait for a<br />

couple of days for the vehicle.<br />

• Customer may order directly to the production schedule<br />

over the web. But he has to wait for delivery.<br />

• New vehicle sales are not the major source of profit for<br />

dealers. Care service and leasing are more profitable.


Distribution Centers<br />

• DCs are now changing.<br />

• Retail DCs may still hold inventory for local<br />

delivery, but product flow management is<br />

emphasised by using cross-docking<br />

–<br />

information-intensive, intensive, pellet or cases,<br />

software programs.


Distribution<br />

• The logistics i of retail involves in 3 major<br />

areas:<br />

• Transportation<br />

• Inventory<br />

• Information<br />

• The aim is to fast, low-cost transport<br />

opens possibilities for rapid replenishment.


Distribution<br />

• Industries shift relations from confrontation<br />

to collaboration.<br />

• It considers four stages of integration:<br />

• Individual id store control<br />

• Distribution center control<br />

• Headquarters control<br />

• Just-in-time delivery


Changes in the supply network<br />

• Cost components are included in the total<br />

distribution cost<br />

• Transport costs<br />

• Inventory costs<br />

• Warehousing costs<br />

• Service costs


Distributions in International markets<br />

• Several issues in international business<br />

that influence distribution are unresolved:<br />

• The role of regional or global organisations<br />

versus local country control<br />

• The changes wrought by some foreign<br />

countries (US, EU), and union point.<br />

• Picard (1983<br />

1983) suggests 2 solutions:<br />

• To decentralise distribution to local<br />

subsidiaries with their own DCs; or<br />

• To concentrate inventory in regional DCs.


Total Cost of Distribution<br />

dollars<br />

Cost, in<br />

Inventory cost<br />

(includes<br />

storage and<br />

intransit<br />

Total cost<br />

Cost of<br />

transportation<br />

service<br />

Rail Truck Air<br />

Transportation service<br />

(greater speed and dependability)<br />

Source: Ballou


The structure of international distribution<br />

• The four basic models of product<br />

movement (Fig. 1)<br />

• The classical system<br />

• The transit system<br />

• The regional distribution system<br />

• The direct system<br />

• What is most appropriate model in global<br />

market?


Distribution<br />

• Fig. 1 Basic patterns of international<br />

distribution (P.124<br />

124) (Pichard, 1983)<br />

Classical System<br />

Transit System<br />

E<br />

DC<br />

C<br />

C<br />

E<br />

TP<br />

C<br />

C<br />

Direct System<br />

Multicountry DC System<br />

E<br />

C<br />

C<br />

E<br />

RDC<br />

C<br />

C<br />

E = Exporter<br />

C = Consumer<br />

DC = Distribution Center<br />

TP = Transshipment Point<br />

RDC = Regional DC<br />

C<br />

C


four basic models of product movement<br />

1. The local subsidiary completely manages its own<br />

distribution to customers. It may be a supporting<br />

regional supply ppy organisation, but the subsidiary or a<br />

local distributor hold local inventory and delivers to<br />

customers.<br />

2, Transit – the parent or regional unit holds inventory and<br />

fills orders.<br />

3. Regional DC – uses one central DC within a regional to<br />

fill orders and deliver to customer. It is useful within<br />

trading blocs, and it relies on one or a few DCs<br />

servicing all customer within a time window of 24-72<br />

hrs.<br />

4. Direct – products move directly from production to<br />

customers without using intermediaries or intervening<br />

inventory points. A result of low cost & Efficient<br />

transport & communication systems.


Scale and cross-docking<br />

Cross Docking<br />

Suppliers Distribution Center Retail stores<br />

Docking<br />

Fig. 2 The Walmart Approach (p.127<br />

127)


Distribution<br />

• Separating sales and distribution<br />

ib ti<br />

• Many companies have found that managing<br />

centralised distribution has required<br />

separating the sales function from SC<br />

activities.<br />

iti<br />

• First, the company moved first to direct<br />

distribution from one central distribution<br />

center; and<br />

• Second step in centralised sales<br />

management is an administrative center.


The surge in e- commerce<br />

• E-commerce<br />

makes major changes in the<br />

structure and processes of distribution,<br />

especially in 2 market processes: B2B B&<br />

B2C.<br />

• The value chain involves two closely<br />

interwined processes:<br />

• Demand creation, resulting in customer orders &<br />

post-delivery satisfaction;<br />

• Supply and fulfillment.


e- commerce fulfillment<br />

• Fulfillment involves communication with<br />

customer about the order, delivering from a<br />

supplier or DC to customer, providing status<br />

information en route & follow up, it can include<br />

payment, as part of the system.<br />

• Fulfillment centers (FC) differ from DCs in the<br />

order sizes.<br />

• Ordinary DC deals with pallet or case unit loads;<br />

• FC services individual product orders, often with a<br />

wide variety items.


The structure of e- commerce fulfillment<br />

• Fulfillment systems have several different<br />

forms:<br />

• The drop shipment model<br />

• The Amazon model<br />

• Catalog model<br />

• Bricks and Mortar model<br />

• Inventory yp<br />

pooling model<br />

• Home delivery model


Fig. 3 E-Commerce Fulfillment Models (p. 133)<br />

M<br />

E<br />

Drop Shipment<br />

C<br />

DC<br />

Bricks & Mortar Model<br />

E<br />

C<br />

R<br />

M<br />

DC<br />

Amazon Model<br />

E<br />

C<br />

Inventory Pooling Model<br />

E<br />

I<br />

E<br />

C<br />

Catalog Model<br />

Home delivery Model<br />

M<br />

E<br />

C<br />

FC<br />

C<br />

DC<br />

Physical Flow<br />

Information Flow E<br />

M = Manufacturer E = e-commerce site, C = Customer, R = Retailer, I = Inventory, FC = Fulfillment Centre, DC = Distribution Centre


Elements shaping e-commerce<br />

• Elements have impact on its future:<br />

1. The development of express package<br />

delivery<br />

2. The emergence of a specialised institution,<br />

e.g. the fulfillment center<br />

3. The development of contractual validity on<br />

the web; and<br />

4. Web-resident programs.


Elements shaping e-commerce<br />

• Express package delivery has become the most visible<br />

ibl<br />

part of e-commerce<br />

– Fedex & UPS.<br />

• The fulfillment center is a specialised DC for individual<br />

consumer orders.<br />

• Where conventional DC deals in case & pallet load<br />

order sizes, the FC deals in small orders for<br />

individual consmers.<br />

• Establishing customer validity becomes important for<br />

consumer confidence and security.<br />

• Web-resident software is significant for development of<br />

retailing.<br />

• Cost & delay of software installation is reduced to<br />

training and data entry, including licensing &<br />

transaction fees.


Reverse logistics<br />

• Reverse logistics (RL) – the process of moving<br />

product from their typical final destination for the<br />

purpose of capturing value, or proper disposal.”<br />

(Roger & Tibben-Lembke,<br />

1998)<br />

• A broader definition – includes reducing material<br />

quantities upstream in the SC to encourage reuse &<br />

recycling and reduce the total t volume of material.<br />

(Carter & Ellram, 1998)<br />

• RL is important t as a result of both governmental<br />

legislation & consumer environmental awareness.<br />

• The 4 in 10 logistics managers consider RL relatively<br />

l<br />

unimportant compared with other company issues.<br />

(Roger & Tibben-Lembke,<br />

bk 1998)


Reverse logistics<br />

• A variety of channel of the return flow (Jone,<br />

1998)<br />

• Product returns;<br />

• Component returns;<br />

• Scrapped products<br />

• Reusable packaging<br />

• Non-reusable packaging


S<br />

Reverse logistics<br />

• Fig. 4 Reverse Distribution Channels<br />

a) Product returns b) Component returns d) Reusable packaging<br />

S<br />

S<br />

S RM S<br />

M<br />

M DIS M<br />

Pr<br />

M<br />

D<br />

D<br />

D<br />

DIS<br />

D<br />

R R R R<br />

S<br />

M<br />

D<br />

R<br />

RM<br />

Pr<br />

Con<br />

C C C<br />

c) Scrapped products<br />

C<br />

C<br />

e) Non-reusable packaging<br />

S = Supplier M = Manufacturer, D = Distributor, R = Retailer, C = Customer, Con = Consolidator, Pr. Processor, Dis = Dismantler, RM. Raw Material Market


Reverse e logistics<br />

• Reverse logistics utilises extensive outsourcing.<br />

• Recovery of durable products<br />

• The producer-pay pay principle dictates that the company responsible for an<br />

environmental situation should pay for costs of the clean-up.<br />

• The EU has proposed an “End-of-Life Vehicles” directive that would<br />

require car manufacturers to cover the cost of taking back all cars<br />

registered after 1 Jan, 2006.<br />

• Several car manufacturers in EU and their suppliers developed programs<br />

to recycle used car parts, beginning with disassembly of used cars. (e.g.<br />

Volkswagen, Fiat)<br />

• Returnable containers<br />

• RCs do not provide clear advantages over one way systems.<br />

• Return transport, t cost maintenance & management can be significant<br />

ifi costs.<br />

• Solutions range from:<br />

• Closed loops back to the sender<br />

• A central depot as a pool<br />

• Booking to account for different users<br />

• User deposits (Kroon & rijens, 1995)<br />

• A model involves a central agency coordinating an open system where<br />

pallets were returned to the agency.


Reverse e logistics<br />

• Recycling packaging<br />

• Packaging materials have high visibility & be subjected to both<br />

consumer awareness & public policy. (e.g. German Packaging<br />

Law 1991)<br />

• Exporters to Germany must focus carefully on environmental<br />

effects of product packaging, reuse & recyclability.<br />

• EU developed in 1994, member states were to implement in<br />

their national legislation by 1996.<br />

• Packaging materials be marked and identified to facilitate<br />

reuse, recovery and recycling. (Webb, 1997)<br />

• Returned goods<br />

• Today many retailers invite consumers to return any yp<br />

product at<br />

any time, in any condition for a full refund 30-50%.<br />

• The problems of returned goods would increase as e-<br />

commerce and other forms of non-store retailing increase.


Managing reverse logistics<br />

• Enthusiasm for recycling varies by country.<br />

• The lack of harmonisation of rules & standards<br />

for reclycling creates a source of frastration for<br />

management & new technical barriers.<br />

• Wu & Dunn (1995<br />

1995) suggest 4 ranked tenets of<br />

reverse logistics:<br />

• Source reduction and substitution wherever possible<br />

• Use of environmentally friendly materials<br />

• Reuse of materials in the system such as packaging<br />

• Recycling


Distribution<br />

Any Question????<br />

Or<br />

Comment!!!!!!!!!


Global Logistics Management<br />

Global Production Issues<br />

Master of Science<br />

Transport & Logistics Management


• Fig. 1 Production<br />

Production Issues<br />

Supply Chain<br />

Management<br />

Decision<br />

Flow<br />

Information<br />

System<br />

Supply Chain<br />

Supplier -2 Supplier -1 Manufacturer Distributorib<br />

Customer<br />

Organizational<br />

Management<br />

Order<br />

Transaction<br />

Flow<br />

Product and<br />

Material<br />

Flow<br />

Functiona<br />

l<br />

Activities<br />

iti<br />

Product<br />

Collaboration<br />

Reverse Logistics<br />

Logistics Service Providers<br />

and Carriers


Global Production Issues<br />

• The found major themes of this chapter:<br />

1. Requirements of the supply chain<br />

2. The role of product design within the supply chain<br />

3. The strategic perspective on manufacturing<br />

processes, including the options in production<br />

technology, production scheduling and planning.<br />

4. The new emerging technology.


Supply chain requirements<br />

• A global production system is a network. So,<br />

logistics becomes important for connecting the<br />

production process, both within host countries<br />

and externally.<br />

• Transport ultimately l determines lead times for<br />

orders, and ability to respond to change.<br />

• Global networks are accompanied by pressures<br />

to create local supply sources, both to satisfy<br />

employment needs and to transfer technology.<br />

• Plants also vary by factor cost, principally in<br />

labor<br />

wage costs.


Supply chain requirements<br />

• The global l nature of production is important in<br />

developing the SC.<br />

• Factories must be located close to markets,<br />

sources of technology, or low labor cost.<br />

• Toyota supply complete engine assemblies from<br />

Japan to US plant to take advantage of economy<br />

of scale in production.<br />

• US electronic companies operate in Japan to<br />

take advantage of technology.


Supply chain requirements<br />

• Other factors include:<br />

• Infrastructure – refers to transport, telecommunication<br />

and government support (taxes, incentives and<br />

regulations)<br />

• Culture – enter in through worker’ attitudes and<br />

educational levels, and the general business climate.<br />

• Motivation and capabilities in labor force play obvious<br />

roles in determining the success of production ventures.


Production Flexibility<br />

• Global market demand for both product and volume<br />

flexibility at the factory is increasing.<br />

i<br />

• Product life cycles become shorter, with pressures for<br />

inventory reduction and greater demand df for product<br />

variety.<br />

• One purpose is to avoid obsolete inventory in the final<br />

market by producing to match demand as closely as<br />

possible.<br />

• The SC imperative is to increase flexibility, to develop<br />

faster changeovers and ability to expand production<br />

within the factory.<br />

• Factories must adopt similar methods of producting<br />

rapidly in response to orders without holding inventory.


The production environment<br />

1. The change in orientation from push to pull;<br />

2. Real-time interaction between customers and production<br />

shorten order cycle time, enabling customised orders;<br />

3. Wider product ranges place demands on production<br />

systems for rapid changeovers from one product to<br />

another.<br />

4. Mass customisation; as adaptation of products to meet<br />

individual requirements.<br />

5. Expansion of computer and information technology in<br />

production o planning, execution ecut and control;<br />

o 6. Quality becomes important for new production<br />

technologies.<br />

7. Zero inventory systems include JIT and Kanban.


Production Environments<br />

• Shift from push to pull changes production scheduling &<br />

inventory policy.<br />

• Ability to respond directly to customer orders is becoming a<br />

competitive necessity – by offer flexibility, reducing inventory<br />

among SC members.<br />

• The shift can be successful where production lead and transit times<br />

are short, avoiding necessary for buffer inventories.<br />

• Real-time interaction between customers and production<br />

shorten order cycle time, enabling customised orders.<br />

• Orders enter directly into production schedule, with advantage -<br />

match demand & reducing finished inventory which not match<br />

customer preference.<br />

• It places a burden on suppliers to supply component products on<br />

demand, requiring their own buffer inventories, or flexible<br />

production system.


Production Environments<br />

• Wider product ranges place demands on production systems for<br />

rapid changeovers from one product to another.<br />

• Japanese car production formerly took days was reduced to minutes.<br />

• Modular products where standarised modules can be combined or added<br />

to extend range of potential products.<br />

• Mass customisation; as adaptation of products to meet<br />

individual requirements.<br />

• Levi Strauss to adapt women’s jeans to their individual id measurements.<br />

• Cars for accessory items and colors.<br />

• Expansion of computer and information technology in<br />

production planning, execution and control.<br />

• Completely automated factories may not be common & are not<br />

usually successful, but ‘island of automation’ have been useful in<br />

supplementing convention production, especially in hazardous<br />

production environment.<br />

• The factor is no longer an isolated system, but one interconnected to<br />

the entire SC.


Production Environments<br />

• Quality becomes important for new production technologies.<br />

• Standards d related to quality are widely adopted.<br />

d<br />

• Factories around the world improve quality has become a<br />

necessary requirement, but not sufficient condition for competitive<br />

advantage.<br />

• Zero inventory systems include JIT and Kanban.<br />

• JIT is a production orientation, to deliver materials directly to the<br />

point of use as they are used.<br />

• Kanban is a signaling system originally using cards to indicate a<br />

need to replenish inventory at the user’s station in a production<br />

system.<br />

• Both JIT & Kanban involve intense coordination between<br />

production stages, whether inside the firm or externally between<br />

supplier and customer.<br />

• Factory organisation has changed.<br />

• Culture of production has moved from organisational hierarchy to<br />

empowerment of workers in self-managing teams that set their<br />

work schedules and methods.


Product design for the supply chain<br />

• Product design plays an important role in the SC.<br />

• Modular products<br />

• Concurrent engineering<br />

• Design for logistics<br />

• Quality and recycling


Modular products (MP)<br />

• MPs give the SC flexibility to meet the requirement of a<br />

broad product range without need for specialised<br />

production for individual products.<br />

• Increase product variety & accelerating gp<br />

product<br />

development.<br />

• Inventory saving with modular product design, by<br />

pooling modules as a group, production is easier.<br />

• Demand for a MP group can be forecasted more easily<br />

than individual products, which have erratic demand.<br />

• Disadvantage – the entire product line must be planned<br />

with a basis platform with common interfaces for<br />

different modules.<br />

• MP involve inevitably compromise, trade-off production,<br />

and inventory efficiency against product performance.


Concurrent engineering (CE)<br />

• SCM is concerned with time to market: time<br />

interval between design concept & market<br />

introduction.<br />

• DaimlerChrysler used 5 years to bring a new<br />

model to market, now reduced to 24 months.<br />

• In some case, product design were often<br />

difficult to manufacture, actu with low productivity<br />

ty<br />

and poor reliability.


Concurrent engineering (CE)<br />

• CE means designing i products for ease of production as<br />

well as functionality.<br />

• Significant gain in elapsed time & problem solution<br />

come as CE where designer & production process<br />

engineers work cooperatively on the same design to<br />

eliminate problems before they begin.<br />

• Japanese semiconductor manufacturers encourage their<br />

capital equipment suppliers to develop processes in advance<br />

of the product itself.<br />

• IT offers substantial time reduction.<br />

• CAD helps for developing & communicating designs<br />

without having to commit them to physical models.


Design for logistics<br />

• Location of product assembly affects the cost<br />

structure, order cycle time & ability to respond<br />

to change.<br />

• Packaging is directly involved though the types<br />

of environments encountered, dimensions and<br />

recycling.


Strategic perspectives p on manufacturing gp<br />

processes<br />

• Fig. 1 Product volume and process<br />

Output<br />

Process<br />

Very low volume<br />

Few units/products<br />

Low volume<br />

Many products<br />

High volume<br />

Major products<br />

High volume<br />

Standard products<br />

Loosely linked<br />

flow<br />

Project……...<br />

Job shop …<br />

Intermittent flow<br />

Batch<br />

Loosely linked<br />

flow<br />

Production<br />

line……<br />

Continuous flow<br />

Continuous<br />

process


Strategic perspectives on manufacturing processes<br />

• Fig. 1 shows basic choices in production<br />

processes.<br />

• Projects<br />

• Job shops<br />

• Batch processing<br />

• Production lines


asic choices in production processes.<br />

• Projects<br />

• Characterised as make-to-order order with little standardisation.<br />

• Job shops<br />

• Deal with small-order production.<br />

• Organised around work centers with specialised activities.<br />

The work flows through a series of work centers.<br />

• It offers flexibility that it can apply routine operations to<br />

several different production sequences at the same time, and<br />

its sequences can be changed to meet the specific require for<br />

each product.<br />

• Disadvantage – scheduling, where conflicts may result in<br />

delay in completion, need for movement between work<br />

centers and inability of workers to see the results of their<br />

output.


Options in production technology<br />

• Technology has influenced production in several<br />

ways, y, especially information and communication<br />

systems, e.g. CAD & CIM.<br />

• e.g. the Toyota production system & Reflective<br />

production


The Toyota production system (TPS)<br />

• The four rules comprise of:<br />

• All work is highly specified & precisely measured, enabling<br />

workers to test changed methods against standards.<br />

• All customer-supplier supplier connections are direct & unambiguous.<br />

• The pathways for every product should be direct & simple, inc.<br />

both physical production layouts and services.<br />

• Improvements should be made using the scientific method at<br />

the lowest possible level.<br />

• Toyota achieves flexibility and efficiency by creating<br />

standardised problem-solving for creativity, job<br />

enrichment ih to encourage workers to become more<br />

innovative and flexible, swicthing between routing &<br />

non-routine tasks.


Reflective production<br />

• The major principles in reflective production are<br />

as follows: (Engstrom et al. 1996)<br />

• An assembly process based on holistic learning<br />

emphasising meaningful coherence in work<br />

processes<br />

• Parallel organic flows, which ensure overview and<br />

self-control; and<br />

• Two or four workers belonging to work teams of<br />

about ten members who assemble the entire car.


Options in manufacturing<br />

• Cellular manufacturing<br />

• Computer-integrated manufacturing<br />

• Flexible manufacturing system<br />

• Just-in-time and kanban


Cellular manufacturing<br />

• Production is divided id d into teams responsible for<br />

producing a complete product or component.<br />

• Workstations are arranged di in a U-shaped dl layout so that<br />

each team member can see output of the team.<br />

• Production tasks are different from each other, workers<br />

become multi-skilled, able to take over any specific task<br />

in the cell.<br />

• Production problems are visible to every member of<br />

the team.<br />

• Production control is decentralised to the team.


Cellular manufacturing<br />

Workstation<br />

Assembly Line


Computer-integrated manufacturing(CIM)<br />

• Computer-based software to manage the production process from<br />

design to total production.<br />

• It includes CAD, CAM & computer numerical control (CNC).<br />

• CAD – accelerates the design process, provides a vehicle for<br />

communication i & provides with precise data fro tooling &<br />

programming of machine tools for factory automation.<br />

• CNC – involves numerical control of machine tools in factory<br />

automation.<br />

• CAM involves<br />

• A bill of materials that lists assemblies, components & materials for the final<br />

product<br />

• A list of operations to produce each component for the bill of materials,<br />

itemised by time requirements for machines, tooling and labor<br />

• Work centers required with their capacities<br />

• Customer tmrdli delivery rqirmnt<br />

requirement<br />

• Components and materials available & the procurement requirement.


Flexible manufacturing system(FMS)<br />

• FMS is operations within the factory, which opposed to<br />

computer-aided production systems that are oriented<br />

towards management.<br />

• FMS is oriented towards group technology, where<br />

similar groups of parts are brought together for<br />

production, a sort of electronically controlled job shop.<br />

• It was discouraging, & requiring the development of<br />

computer protocols so that machines could<br />

communicate with each other.<br />

• It represents a large fixed cost with a scale that may not<br />

match the market.<br />

• Their inflexibility does not support current trends<br />

towards flexibility and customisation.


JIT and KANBAN<br />

• JIT and KANBAN are now familiar concepts.<br />

• KANBAN is a pull system of production control.<br />

• KANBAN operates on the basis of signals & usually use<br />

cards.<br />

• The original idea was to bring materials & components<br />

to specific point & time where they would be used, in<br />

quantities to match the factory production schedule.<br />

• Advantages – reduced di inventory, factory space, reduced<br />

d<br />

material handling, quality control through smaller lot<br />

sizes.<br />

• Disadvantages – depend on precise transit times with<br />

potential interruptions & stable production.


JIT and KANBAN<br />

• For suppliers, JIT means: stable production, inventory-<br />

on-hand, shifting i the inventory cost from manufacturer<br />

to supplier, or flexible production processes that can<br />

produce on demand.<br />

d<br />

• Buffering has advantages where demand or supply<br />

conditions are unstable.<br />

• If expanding demand led to shortages and longer lead<br />

times for key components, leaving some companies<br />

unprepared, p facing shortages that limit production, “just-<br />

in-time” ” may become “just-in-trouble”, the risk shifts<br />

from supplier to buyer.


Production Planning<br />

• MRP replaced a system in which factories<br />

produced for inventory to meet forecast market<br />

demands.<br />

• Original MRP was purely a production<br />

scheduling system. It expanded as and<br />

information system to organise procurement,<br />

transport, forecasting, etc.<br />

• Its failing is that it oriented to the factory alone.


Production Planning<br />

• Input of fMRPI<br />

• MPS<br />

• BOM<br />

• Inventory Record<br />

• Output of MRP I<br />

• Purchasing Order<br />

• Shop Orders<br />

• MRP II – Covers activities of Production planning and<br />

control, MRPI, MPS, Shop floor control, Purchasing,<br />

Resource Requirement Planning.<br />

• Disadvantage – Reduce stock, better flow of inventory,<br />

reduce ordering cost, reduce O/T, better delivering.


Production planning framework<br />

Forecasting<br />

Business Planning<br />

Distribution Requirement<br />

planning, DRP<br />

Production Planning<br />

Demand<br />

management<br />

Master Production<br />

Schedule - MPS<br />

Rough-cut capacity<br />

Planning - RCCP<br />

Materials requirements<br />

planning, MRP<br />

Capacity Requirements<br />

planning - CRP<br />

Production Control<br />

Procurement


Production planning framework<br />

• A forecast from sales, drives business & production plans. It<br />

becomes an input to the MPS.<br />

• The schedule can be modified by management action to modify<br />

demand.<br />

• The MPS affects distribution through DRP.<br />

• The MPS then leads to a first estimate of production capacity to<br />

test the feasibility of the proposed MPS.<br />

• After possible modification, the MPS is converted into an MRP<br />

schedule.<br />

• This will, in turn, result in revised capacity requirements planning.<br />

• MRP determines inventory status, & release orders for purchasing,<br />

scheduling them based on vendor lead times.<br />

• There is a difficult transition from MRP to production control,<br />

where the system often breaks down.


Materials requirements planning (MRP)<br />

• MRP consists of a production schedule and a<br />

bill of materials.<br />

• MRP requires three major steps:<br />

• Development of the master production schedule;<br />

• The bill of materials; and<br />

• The master production schedule and the bill of<br />

materials together to create input requirements.


• Production scheduling<br />

New approaches<br />

• Because of a real-time environment, rapid product changeover,<br />

volume changes, and schedule on the fly as orders come in.<br />

• So, it needs advance scheduling and planning system, and<br />

closely linked to software.<br />

• It become a closely linked component to other process<br />

management software, notably ERP that extends beyond<br />

production to the whole enterprise.<br />

• An advanced d scheduling & planning system program generates<br />

a set of possible production schedules through simulation. The<br />

advanced scheduling & planning system program select the one<br />

closest to optimal.<br />

• The computer then manages the schedule & material flow.


Virtual manufacturing<br />

• The key is the computer connection.<br />

• VM has characterised as<br />

1. The ability to make product design mobile, communicating<br />

manufacturing requirements for local production anywhere in<br />

the world;<br />

2. A vehicle for rapid development through computer-based<br />

modeling.<br />

• Many elements are currently in practice or are waiting<br />

for the development of technology.


New approaches<br />

• Many elements are currently waiting for the<br />

development of technology:<br />

• Solid modeling<br />

• Collaborative design<br />

• Rapid prototyping<br />

• Testing the feasibility of manufacturing<br />

• Testing factory processes,<br />

• Transmitting product design<br />

• Remote production


Virtual Manufacturing<br />

• Solid modeling<br />

• Replace wire diagrams now used in e-transmitted product<br />

modeling.<br />

• It’s only limited by availability of broadband transmission.<br />

• The problems will be relieved by extension of fiber-optic<br />

cable & wireless transmission.<br />

i<br />

• Collaborative design<br />

• Be supported by groupware designed for collaboration.<br />

• One group of engineers & other specialists works on a given<br />

project & turns it over to other groups in different time<br />

zones for further development.<br />

• Boeing 777 – engineers in Japan can communicate & discuss<br />

designs s directly with engineers ee in Seattle.<br />

e.


Virtual Manufacturing<br />

• Rapid prototyping<br />

• Refers to computer modeling of physical & software<br />

products.<br />

• It accelerates design process to the point directing the<br />

development of the physical model by computer.<br />

• In some case, it creates sintered metal prototypes as output.<br />

• The feasibility of manufacturing<br />

• Can be tested through modeling production processes which<br />

can eliminate problems in production process.<br />

• Factory processes simulation tests<br />

• Can be used to plan factory operations for coordination &<br />

product flow issues in advance of implementation.


Virtual Manufacturing<br />

• Transmitting product design<br />

• It transmits instantaneously to & from suppliers<br />

enhances coordination.<br />

• It becomes vitally important in modular product<br />

design & in clarifying & modifying product features.<br />

• Remote production<br />

• It reduces transport costs & increases market<br />

response through closer proximity.<br />

• It becomes possible when drawings & even<br />

computer machine instructions can be transmitted in<br />

full detail.


Case study of Smart Car in global production<br />

• Smart car began in 1994 as J/V between Mercedes Benz &<br />

Swiss Watchmarker.<br />

• A Smart Car is a small, plastic-bodies,<br />

2-seater city car, little<br />

more than half of length of a Volkswagen Beetle.<br />

• The average fuel consumption is 3 Lit/100<br />

km.<br />

• DC forecast sale 200,000<br />

000 units annually, but in 1999, sold<br />

80,000000 units, in 2000 sold 100,000000 units in dozen countries,<br />

ie. G, F, E, J.<br />

• MMC handed over & plan to produce Smart Car with a<br />

right-hand hand drive version, a sporty roadster & a four-seater<br />

version in near future.<br />

• Hambach plant is 1,400, & when including system partners is<br />

a total of 2,500<br />

people p are involved in building, design &<br />

marketing the smart car.


Case study of Smart Car in global production<br />

• It can be ordered from 120 Smart Centers through<br />

Europe or via the internet.<br />

• Smart Centers are high-profile showrooms in shopping<br />

centers or other visible places in big cities.<br />

• Smart Centers have repair shop areas where body parts<br />

can be rapidly replaced or new product features be<br />

added.<br />

• When having ordered, the order is submitted to<br />

Hambach, special features can be added & body parts<br />

can be changed di in Smart tC Center by taking 2-3 weeks.


Smart Car in global production issues<br />

• Smart Ville (SV) is production plant in Hambach,<br />

France.<br />

• 7 First tier suppliers are integrated with Smart Assembly<br />

operation by co-invested in production location &<br />

located adjacent to the assembly hall of MMC.<br />

• Smart Car consists of 5 modules: platform, powertrain,<br />

doors & roof, electronics & the cockpit.<br />

• The modules are pre-assembled on site & synchronised<br />

with production schedule for final assembly.<br />

• MMC provides value-added added about 10% of production<br />

costs, & assembly time per car is 4.5 hours & plastic<br />

body panels can be completely l replaced di in an hours.


Smart Car in global production issues<br />

• Outsourcing process has gone further than in most other car<br />

manufacturing companies.<br />

• i.e. pressing & painting process has been outsourced to a first-tier tier<br />

supplier. Information system to plan & control production &<br />

logistics are run by Andersen Consulting. The building & the sites<br />

were sold to a property company under a lease-back arrangement.<br />

• Smart Car has been a prototype for a new way to organise<br />

collaboration between assembly plant & first-tier tier suppliers, &<br />

being considered as a strategic learning project for DC.<br />

• Other car manufacturers generally accepted the Smart Car<br />

Concept as of key importance to future organisation of assembly<br />

processes.<br />

• i.e. GM has built a plant in Brazil incorporating the ideas of heavy<br />

contribution ti of supplier capital & a small assembly plant.


Smart Car in global production issues<br />

• What is a main issue for the case study?<br />

• Why would Smart Car be preferred model for<br />

manufacturers?<br />

• What do you think as critical success factors of<br />

producing smart car? Why?<br />

• To establish the model, who and what would be<br />

concerned and linked? And how?


Global Production Issues for the Supply Chain<br />

Any Question????<br />

Or<br />

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