Kuliah Sesi-1 04 Sept 2013

SESSION I

INTRODUCTION TO LOGISTICS AND

SUPPLY CHAIN MANAGEMENT

04 SEPTEMBER 2013

Lecturer :

DR. NOFRISEL, SE, MM

PROGRAM STUDI MAGISTER MANAJEMEN

UNIVERSITAS INDONESIA

AGENDA

Conclusion

Introduction

Concepts of Logitics & Supply Chain Management

Operation Management and Competitive Advantage

HAL 1

Program Studi MM UI 2013

Objective

Identify and explain about how the logistics and SCM

become a strategic concept in recent approach to

sustain competitive advantage (operation

management, SCM & Competitive Advantage)

Explain of the basic concepts of :

Operation management

Supply Chain Management

Competitive Advantage, dan

Logistics

Logistics and SCM in some practices

HAL 2


1 INTRODUCTION

HAL 3


Perception About Logistics & SCM : 2008 & 2009 Global Survey of Supply Chain

*) Source : SCM Review (2008, 2009) HAL 4


Source : Accenture (2007)

GLOBAL PROFILE Logistics is an important industry globally

HAL 5 Program Studi MM UI 2013

Current Issues in Operation Management

Coordinate the relationships between mutually

supportive but separate organizations

Optimizing global supplier, production, and distribution

networks

Increased co-production of goods and services

Managing the customers experience during the service

encounter

Raising the awareness of operations as a significant

competitive weapon

Program Studi MM UI 2013 HAL 6

Within country

Product A1 vs Product A2

Inter country

Product B1 (Made in Country X)

vs Product B2 (Made in Country Y)

Country X Country Y

Product C1 vs Product C2

Region P Region Q

Inter

Network

Country 1

Country 2

..

Country N

Country 1

Country 2

..

Country N

Saat ini

Internationalization of production processes

Global logistics network to support production and marketing

Borderless nation

Internasionalisasi

pasar

Sumber: Y. Anggadinata, Pusat Studi Logistik dan Rantai Pasok ITB, 2007 (Diolah dari berbagai sumber)

Competitiveness a new trade pattern

HAL 7


Global Domestics Trade Patterns

Coy Y / Buyer

Indonesia

Coy X / Seller,

Negara Pemasok

(USA, EU, JPN)

(inventory)

Coy C di Negara

ASEAN C (inventory)

(inventory)

Coy B di Negara

ASEAN B

Coy A di Negara

ASEAN A

Contract

Flow of goods

Shipment

instruction

/Coordination

HAL 8


Achieving an Integrated Supply Chain

Stage One: Baseline Material flow

Customer

service Material Control

Purchasing Production Sales Distribution

Manufacturing

Management Distribution

Stage Two: Functional Integration Material flow

Manufacturing

Management

Materials

Management Distribution

Stage Four: External Integration Material flow

Internal Supply

Chain Suppliers Customers

Customer

service

Customer

service

Source: Stevens (1989)

Customer

service

Customer

service

Stage Three: Internal Integration Material flow

Materials

Management

25%

Time

Strategic buffer

MRP

ERP

HAL 9


Conventional and Contemporary Arrangement

of Goods Flow

Raw Materials & Parts Manufacturing Distribution

Raw

Materials

Storage National

Distribution

Regional

Storage

Local

Distribution

Retailers


Raw

Materials

Distribution

Center

Retailers Manufacturing

Cu

sto

mers

C

us

tom

ers

Conventional

Contemporary

Material flow (delivery)

Information flow (order)

Core component

HAL 10


2 OPERATION MANAGEMENT AND COMPETITIVE ADVANTAGE

HAL 11


Inputs Transformation Processes

(Adding value) Outputs

Operations Management is

The systematic design, direction and control of

processes that transform inputs into services and

products for internal, as well as external,

customers.

Source : Krajewski (2007)

HAL 12


The Scope of Operations and SCM

Operations

Management


1st tier

suppliers

n tier

suppliers . Distributors Customers

Logistics Strategic

Sourcing

Stakeholders

HAL 13


Ma

rke

t C

om

pe

titi

ve

ne

ss

Speed

Flexibility

Cost

Dependability

Quality

THE OPERATIONS FUNCTION can provide a competitive advantage

through its performance at the five competitive objectives

Being RIGHT

Being FAST

Being ON TIME

Being ABLE TO

CHANGE

Being PRODUCTIVE

Performance Objectives & Operations Function

HAL 14


Corporate Competitive Strategy

Supply Chain

or Operations

Strategy

Product

Development

Strategy

Marketing

and Sales

Strategy

Information Technology Strategy

Finance Strategy

Human Resources Strategy

Corporated Functional

HAL 15


HAL 16

The primary drivers for achieving strategic fit in Supply Chain Strategy

Corporate Strategy

Supply Chain Strategy

Efficiency Responsiveness

Facilities Inventory Transportation Information Market

Segmentation

HAL 16


Competitive and Supply Chain Strategies

Competitive strategy: defines the set of customer needs a firm seeks to satisfy through its products and services better than its competitors

Product development strategy: specifies the portfolio of new products that the company will try to develop

Marketing and sales strategy: specifies how the market will be segmented and product positioned, priced, and promoted

Supply chain strategy: Determines the nature of material procurement, transportation of

materials, manufacture of product or creation of service, distribution of product

Ensuring the consistency and support between supply the companys chain strategy, competitive strategy, product development strategy, and marketing strategy

HAL 17 Program Studi MM UI 2013

The zone of strategic fit (and uncertainty/responsiveness map)

Implied Uncertainty Spectrum

Certain Demand

Uncertain Demand

Efficient Supply Chain

Responsiveness Spectrum

Responsive Supply Chain

Key point: The final step in achieving strategic fit is

to match supply chain responsiveness with the

implied uncertainty from demand and supply. All

functional strategies within the supply chain must

also support the supply chains level of

responsiveness

HAL 18

Source : Chopra & Meindl (2007)


3 LOGISTICS AND SUPPLY CHAIN MANAGEMENT

HAL 19


SCM Evolution

HAL 20


What is Supply Chain Management (SCM) ?

Supply-chain management is a

total system approach to

managing the entire flow of

information, materials, and

services from raw-material

suppliers through factories and

warehouses to the end

customers

SCM

HAL 21


Supply Chain

Supply chain: The network of services, material, and information flows that link a firms customer relationship, order fulfillment, and supplier relationship processes to those of its supplier and customers.

Supply chain management: Developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain.

Supply chain strategy: Designing a firms supply chain to meet the competitive priorities of the firms operations strategy.

HAL 22


Focal

Firm

Second Tier Suppliers

First Tier Suppliers

First Tier Customers

Second Tier Customers

Upstream Downstream

SELL SIDE BUY SIDE

Pri

ma

ry

ma

nu

fac

ture

rs

En

d c

us

tom

ers

INSIDE

SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN STRUCTURE a network perspective

Source: Christopher (1992) HAL 23


Supply Chain Stages (as remains)

manufacturer suppliers distributors retailers customers

supplier

supplier

DC

DC supplier

R

R

R

R

R

R

plant

C

U

S

T

O

M

E

R

S

HAL 24


25

Information, product, service, financial and knowledge flows

Ma

teria

ls

En

d C

on

su

mers

Capacity, information, core competencies, capital, and human resource constraints

Supplier Network

Market

Distribution Procurement

Manufacturing

Integrated

Enterprise Distribution

Network

Relationship Management

Generalized Supply Chain Model

Material Flow

Information Flow

HAL 25

LOGISTICS

TYPICAL DECISIONS

Strategic

Tactical

TYPE

Supply chain strategies (Sell direct or through

retailers? Outsource or in-house? Focus on cost or customer service?)

Supply chain network design (How many plants?

Location and capacities of plants and warehouses?)

Product mix at each plant

years

Workforce & Production planning

Inventory policies (safety stock level)

Which locations supply which markets

Transportation strategies

3 mo.- 1year

Operational

Production scheduling

Distribution scheduling and routing

Place inventory replenishment orders

Lead time quotations

daily

Supply Chain Decisions

HAL 26


Bullwhip Effect

Time

Retailers Orders

Time

Wholesalers Orders

Time

Manufacturers Orders

The magnification of variability in orders in the supply-chain

A lot of retailers

each with little

variability in their

orders.

can lead to greater

variability for a fewer

number of

wholesalers, and

can lead to even

greater variability for

a single

manufacturer.

HAL 27

So, bullwhip effect is the effect of the lack of synchronization among supply-chain


Supply Chain for Manufacturing

Raw materials (RM): The inventories needed for

the production of services or goods.

Work-in-process (WIP): Items, such as

components or assemblies, needed to produce a final

product in manufacturing.

Finished goods (FG): The items in manufacturing

plants, warehouses, and retail outlets that are sold to

the firms customers.

HAL 28


Supply Chain Structure (1)

Tier 1

Tier 2

Supplier of materials Supplier of services

Tier 3

Customer Customer Customer Customer

Distribution

center Distribution

center

Manufacturer

HAL 29


Supply-chain is a term that describes how organizations (suppliers, manufacturers, distributors, and customers) are linked together

Supply Chain Structure : a network (2)

HAL 30


Supply Chain for Services

Supply chain design for a service provider is

driven by the need to provide support for the

essential elements of the various service

packages it delivers.

A service package consists of

supporting facilities

facilitating goods

explicit services

implicit services

HAL 31


Supply Chain for a Florist

Required for facilitating goods

Required for explicit services Required for supporting

facilities

Required for implicit services

Home customers

Commercial customers

Florist

FedEx delivery service

Packaging Local delivery service

Flowers local/

international

Arrangement materials

Internet services

Maintenance services

HAL 32


LOGISTICS Vs SCM (1)

Logistics is THE PROCESS of planning, implementing and controlling the efficient, cost-effective flow and storage of raw material, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption for the purpose of conforming to customer requirements. (Council of Logistics Mangement, 1986)

Lambert, 3rd Edition

HAL 33


Logistics is that PART of the SUPPLY CHAIN PROCESS that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers requirements (Council of Logistics Management)

Lambert, 4th Edition

LOGISTICS Vs SCM (2)

HAL 34


Logistics Activities

Source: Ballou (2004)

Outbound Logistics

Sources

of Supply

Customers

Physical Supply

(material management)

Physical Distribution

Transport

Transportation

Inventory maintenance

Order processing

Acquisition

Protective packaging

Warehousing

Materials handling

Information maintenance

Supply scheduling

Transportation

Inventory maintenance

Order processing

Product scheduling

Protective packaging

Warehousing

Materials handling

Information maintenance

Logistics Business

Inbound Logistics

HAL 35


Logistics Service Classification *) (based on the UN Provisional CPC Systems)

Service Classification

Maritime Cargo Handling Services

Storage and Warehousing Services

Freight Transport Agency Services

Other Auxiliary Services

Courier Services

Packaging Services

Custom Clearance Services

International freight transportation (excluding cabotage)

Air freight services

Rail freight services

Road Freight Services

*) Source : AEC Blue Print (2008) HAL 36


Logistics Vs Supply Chain Management a conceptual perspectives

Logistics

SCM

SCM

Logistics

Logistics

SCM

Logistics SCM

Traditionalist

Unionist

Re-labeling

Inter-sectionist

Soource : Larson & Halldorsson (2004)

Four Conceptual Perspectives

HAL 37


4 CONCLUSION

HAL 38


Conclusion (1) : Why SCM is Important?

Tren Global Increase of global production network (lean production and network)

Influence to go international :

New gain, new customers

Increase economic of scale with lowest cost and price competitiveness

Risk sharing

SCM and Logistics Trends (Hill, 2009) Trend of global trade

Implementation of IT

Product design and location

Develpment of outsourcing production (make-or-buy decisions), and

Improving global alliances strategy

HAL 39


Conclusion (2) : National Logistics System A SCM Perspective

Supplier Network

Distributive & Service

Procurement Distribution

Project & Production System

Integrated System

Mat

erial

s

End C

onsu

mer

s

Information Infrastructure & Network

Transportation Infrastructure & Network

Government Policy & Regulation

Logistics Provider

Suppliers ProcurementProject &

Production SystemDistribution Customer

Information Flow

Material Flow

Mac

ro Le

vel

Micr

o Lev

el

HAL 40


Conclusion (3) : SCM : Cost-Responsiveness Efficient Frontier

High Low

Low

High

Responsiveness

Cost

*) Source : Chopra & Meindl (2007)

Managing

Trade-Off

HAL 41


Conclusion (4) : The Essence of Logitics & SCM

Dry Port

(ICD)

Dry Port

(ICD) INDES LINES INDES LINES Trans Sea

Port

Sea

Port

Shipper Consignee

Transfer Transfer

Port to Port (forwarding service)

Point to Point (forwarding service)

Door to Door (forwarding service)

EMKL EMKL EMKL EMKL

Transport

Transport Transport

Transport

Sumber : Anggadinata (2009)

HAL 42


TERIMAKASIH [email protected]

Dr. Nofrisel, SE, MM

Jakarta 04 September 2013

HAL 43


Kuliah Sesi-1 04 Sept 2013

Documents

Transcript of Kuliah Sesi-1 04 Sept 2013