Logistics Simplicity in Complex Environment
Transcript of Logistics Simplicity in Complex Environment
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About Me
Currently Director of Supply Chain at Geokinetics Lean Six Sigma Black Belt 6 Years US Army 16 Years in Supply Chain & IT Supply Chain (all functions) Affiliated with APICS, ISM, SC Council, Next Level Purchasing
UPSTREAM/DRILLNG SC SC SERVICES SC REFINING
SC OTHER
Geokinetics is one of the largest independent, international land and shallow water geophysical service companies offering a broad range of specialized geophysical solutions to the petroleum and mining industries, worldwide.
www.Geokinetics.com
Considerations
What do you consider in your Supply Chain?
What do you consider in your Logistics?
Global Logistics
Largest Single Logistical Event in the History of the World?
Invasion of Normandy – 6 June 1944
Desert Storm – 2 August 1990
One Million Soldiers148,000 Vehicles570,000 Tons of Supplies8 Different Navies
6,939 Vessels1,213 Warships4,126 Transport Vessels736 Ancillary Crafts864 Merchant Vessels
PRINCIPLE DEFINITION
Mass Concentrate combat power at the decisive place and time
Objective Direct every military operation towards a clearly defined, decisive, and attainable objective
Offensive Seize, retain, and exploit the initiative
Surprise Strike the enemy at a time, at a place, or in a manner for which he is unprepared
Economy of force Allocate minimum essential combat power to secondary efforts
Maneuver Place the enemy in a position of disadvantage through the flexible application of combat power
Unity of Command
For every objective, ensure unity of effort under one responsible commander
Security Never permit the enemy to acquire an unexpected advantage
Simplicity Prepare clear, uncomplicated plans and clear, concise orders to ensure thorough understanding
Principles of War
Definitions
What Is Supply Chain
What Is Logistics
- Dynamic flow of Information, Products, and Funds
- From Manufacturing, Source, Distribution, Delivery,
Customer Service
- Includes Transporters, Warehouses, Suppliers, and
even Accounting
- Detailed Coordination of complex operation involving
many people, facilities, or suppliers.
- Includes Transportation & Movement
Desert Storm Duration2 August 1990 – 28 February 1991(6 months, 3 weeks and 5 days)
Desert Storm - Logistics
Logistics Commander: William Pagonis• United States Army • Bachelor's degree in Transportation and Traffic Management • Master's degree in Business Administration • Called "the logistical wizard behind the Allied success in Operation
Desert Storm",
The average age of soldiers: about 22 From 28 Countries 12 Different Languages 8 Different Foreign Commanders
Desert Storm – Situation
Coordinate and Mobilize all Troops, Equipment, and Support Supplies from
28 Different Countries65 Ports of Departure Into 2 Ports of Entry with limited space - Damman and Jubayl
Materials Management
• 170,000 Transport Vehicles
• 12,000 Armored Vehicles
• 12,575 Aircraft
• 2,000 Helicopters
• 3,100 Artillery Pieces
38,000 tons of mail
1.3 billion gallons of fuel
7 million tons of general supplies
52 million miles driven 700,000 soldiers from 28 Countries
95 million meals OVER 600 Mile Radius in Theatre
Peripheral Challenges
Because VII Corps’ tracked vehicles from Germany - painted forest green
Needed to be painted desert tan, a chore accomplished by the 593rd Area Support Group, first at the ports of Damman and Jubayl and later at two other desert outposts.
More than 10,000 vehicles were painted, including some 8,600 of the VII Corps, using more than 30,000 gallons of paint, which had to be purchased commercially.
• Repairs & Maintenance• Materials Management• Ownership• Safety• Conditions of Weather /
Environment
Relevant to OUR Operations
Withdrawal
Withdrawal completed by January 1992, six months ahead of schedule. Tens of thousands of tons of ammunition – originally brought in case of a prolonged war –had to be loaded and shipped out.
Pagonis said he focused on accountability, and he arranged to pay Bedouins, or desert nomads, to scour the desert for lost equipment. “We didn’t leave anything there,” he claimed, although he can never be sure.
Lessons Learned - Positives
War Time Civilian Operations
Forward Intelligence of Infrastructure Lane Analysis
Combat Unit Oriented Operations Oriented
Execution & Timeline Driven Just-in-Time, Prioritize, Coordination
Standardize Systems, Process, Automation
Simplify Policy and Procedure
Single Logistics Commander Centrally Led – but field executed
Drawing it Out! Simplicity
Lane Analysis – Map out your NetworkFREIGHT FORWARDER
Primary Freight Forwarders
Contract in Place
# of Freight Forwarders in Lane
Shipments per FF
Tracking Capability
to Freight Forwarder
to Final Destination
EDI
Classification Capability
Scan Capability
Certified Receiving
Audit Procedure
OSD / Non Conformance Procedure
Criticality Information
LANE INFORMATION
Primary Outbound
Primary Inbound
Primary Ship To Locations
Number of Lanes
Primary Owner of Lane
Government Control
Lane Dominance
TIME
Average Lane Time
Average Customs Time
Average FF Tim
Time Line
Supplier
Warehouse
Freight Forwarder
Customs
End User
COSTS
Actual Delivery Costs
Lane Rates
MOT Rates / Costs
Lessons Learned – Operations Oriented ALWAYS
• Understand Operations (Challenges, Constraints, Needs, and Victories)• Mobilization Package, On Going Packages, and Demobilization• What are their ‘discrete objectives’ both financially and operationally• M-E-T-T: Mission, Equipment, Time, Terrain
ADVANCE WARNING OF OPERATIONSWARNING ORDER
1. Situation 2. Mission, Who, What, When, Why and Where (coordinates). 3. Execution.
4. Service Support. a) Supply.
1) Rations. 2) Uniforms and Equipment. 3) Arms and Ammunition. 4) Captured Materiel. b) Transportation. c) Medical Evacuation. d) Personnel. e) Prisoners of War.
5. Command and Signal.
5 PARAGRAPH OPORD
Execution
• Quartermaster or Supply Chain was part of the Operations Planning• Timeline was shared• All Orders or Plans were written in a 5th Grade Level • Everyone was focused on their field of expertise• Everyone is held accountable• Discipline to the Plan, the Procedures, and structure• Communication, Contingencies, & Escalations Plan
• Distributed operations
• Contractors accompanying the force
• Pre-positioned stocks
• Civil support
• Reconstitution
• Theater distribution
• Supply chain management
• Outsourcing
• Reverse logistics
Intensive Repetitive Training
Failure Point Cause or Result
Lack of Visibility of In Transit Non Standard Behavior – Hoarding, Duplicate Requisitions, work around the system
Repair Parts Back Log No forecasted MTTF, MTTR Lack of Inventory to Excess
Lack of Customer Feedback No Confirmations of Shipments or method of transport
Proper Shipping Materials Damaged Equipment or unprotected environmental packaging.
Other Lessons Learned
Freight Forwarders & Execution
Utilize your Freight Forwards & Carriers to do the work for you!
Obtain Logistics Intelligence – Make them give you lane times and intelligence
Last Mile - Make them do the ‘Last Mile’ distribution plan
Integrate through EDI and Establish In-Transit Routings
Unity of Command
Operate under one unified Logistics Control and SOP’s
Top 10 Keys to Logistics Excellence
Total Delivered Cost Management
Global Logistics Process Automated
End to End Visibility
Supplier Portals & Advanced Ship Notices (ASN)
Total Produce Identification and Regulator Compliance
Dynamic Routing
Variability Management
Integrated International and Domestic Workflow
Integrated Planning and Execution Platform
Financial Supply Chain Management
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