Transportation Strategy SCMN 4780 TransportationManagement Transportation Management.
-
Upload
charleen-george -
Category
Documents
-
view
237 -
download
0
Transcript of Transportation Strategy SCMN 4780 TransportationManagement Transportation Management.
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Transportation Transportation ManagementManagement
Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 478022
Transportation Strategy Alignment Transportation Strategy Alignment
CORPORATE / DIVISION MANAGEMENT SYSTEM
BUSINESS UNIT STRATEGIC PLAN
SUPPLY CHAIN DESIGN & PERFORMANCE SPECS
LOGISTICS (LINKAGE) OPERATING MODEL
TRANSPORTATION REQUIREMENTS & STRATEGY
Transportation ManagementTransportation Management
Integrated Management FrameworkIntegrated Management Framework
MISSION core
purpose of the enterprise
VALUES timeless guiding principles
VISION word picture of ideal future business model
BUSINESS STRATEGY SBU game plan for
successKEY PERFORMANCE INDICATORS
presentation of key / critical strategic business objectives
BALANCED SCORECARD business performance measures, goals, targets, and initiatives
CASCADING MEASURES performance measures common to all functions aligned to business objectives
GOALS DEPLOYMENT link balanced scorecard to business processes such as budgeting, reporting, compensation
33
TRANSPORTATION PERFORMANCE EXPECTATIONS = OPERATING BUDGETTransportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Strategic Business Unit Objectives & GoalsStrategic Business Unit Objectives & Goals(Supply Chain Examples) (Supply Chain Examples)
44
1. Significantly improve on-time delivery performanceGOAL - design and implement carrier performance report card system in 2012; publish carrier targets by mode
2. Significantly reduce the cost of inbound freight per pound GOAL - Consolidate LTL freight across enterprise and negotiate new carrier contracts reducing LTL freight cost / lb. by 5% in 2012
3. Significantly reduce total number of incidents GOAL - Develop and implement core carrier driver training program in 2012 defining product safety targets and reporting requirements
Transportation ManagementTransportation Management
55
Continuous Improvement Cycle Continuous Improvement Cycle
Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 47806
2121stst Century Supply Chain Century Supply Chain
extraction
conversion
manufacture
assembly
distribution
retail
consumption
DOWNSTREAM
UPSTREAM
INFORMATION
PRODUCT FLOW
NODE
VALUE ADDED TO PRODUCT OR SERVICE
LOGISTICS LINKAGES
Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 47807
1. Customer pulls product from producer 2. Triggers producer to replenish purchased items
3. Producer then pulls materials from supplier
4. Triggers supplier to replenish supply items
5. Continue pull process upstream in supply chain
CustomerCustomerSupplierSupplier Producer Producer (Shipper)(Shipper)
2121stst Century Lean / JIT Supply Chain Century Lean / JIT Supply Chain
Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Objectives of Logistics FunctionObjectives of Logistics Function
LOGISTICS
Warehousing
Customer Service
Inventory Management
Transportation
Order Fulfillment
88Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Transportation Performance VariablesTransportation Performance Variables
Performance Measure
Description
CostTotal transportation cost including freight rates, buffer inventory warehousing, equipment leasing, assessorial charges, freight forwarder fees, broker’s fees, customs, etc.
SpeedTime requirements from when the shipment is released at the supplier’s facility to the time of receipt at buyer’s receiving dock
ReliabilityAlso know as fill rate; refers to ability to deliver on time; percentage of deliveries made within the specified time window
CapabilityAbility of a carrier to move the material from supplier to buyer as required including special materials, hazardous materials, etc.
AccessibilityCapability of the carrier to pick up and deliver the shipment door-to-door
99Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Transportation NetworkTransportation NetworkParticipants – shippers / carriers / 3PLs Participants – shippers / carriers / 3PLs
SUPPLIER CUSTOMERPRODUCER
inter / intra plant transportation
Inbound Transportation
Outbound Transportation
Reverse Logistics
1010Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Logistics Process ManagementLogistics Process Management
1111
Strategic business unit logistics management options
Internal Mgt employees providing
leadership & expertise
External 3PL 3rd party logistics unit
providing leadership &
expertise
Internal 3PL 3rd party logistics unit
provide leadership &
expertise
Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Carrier Selection Process Carrier Selection Process
1212
PLAN
DO
MEASURE
SETTLE
• Benchmark• Modal Rate Plan • Routing Guides• Optimization
• Carrier Selection • Negotiation• Shipment
Execution
• Freight Database Management
• Report Cards Issued
• Freight Audit and Payment
Transportation ManagementTransportation Management
Aggregation
Consolidation
benchmarking provides … • company's comparative performance to that
of other companies using both objective and subjective criteria
• strategic positions of competitors for use as reference points in the formation of decisions and objectives
• performance assessment for a specific activity relative to the methods of a competitor doing the same thing
• comparative methodology for lowering costs, reducing defects, increasing quality, and / or improving outcomes linked to operational excellence
Benchmarking ProcessBenchmarking Process
1313Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Transportation Improvement Initiatives Transportation Improvement Initiatives
1414Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Transportation Mode ChoicesTransportation Mode Choices
Mode Strengths Limitations Primary RolePrimary Product Characteristics
Example Products
Truck
Accessible Fast & versatile Customer service
Limited capacity High cost
Move smaller shipments in local, regional, and national markets
High valueFinished goodsLow volume
Food; Clothing; ElectronicsFurniture
Rail
High capacity Low cost
Accessibility Inconsistent service Damage rates
Move large shipments of domestic freight long distances
Low valueRaw materialsHigh volume
Coal/cokeLumber/paperGrain; Chemicals
Air
Speed Freight protection Flexibility
Accessibility High cost Low capacity
Move urgent shipments of domestic freight and smaller shipments of international freight
High valueFinished goodsLow volumeTime sensitive
ComputersPeriodicalsPharmaceuticalsB2C deliveries
Water
High capacity Low cost International
Slow Accessibility
Move large domestic shipments via rivers, canals and large shipments of international freight
Low valueRaw materials Bulk commoditiesContainerized finished goods
Crude oil; Ores; Minerals; Farm Products; Clothing; Electronics; Toys
Pipeline
In-transit storage Efficiency Low cost
Slow Limited network
Move large volumes of domestic freight long distances
Low valueLiquid commoditiesNot time sensitive
Crude oilPetroleumGasoline; Natural gas
1515Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Carrier Negotiating Approach - OceanCarrier Negotiating Approach - Ocean
1616Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Enterprise Resource Planning (SAP) Enterprise Resource Planning (SAP)
1717Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Transportation Management Software Transportation Management Software
1818Transportation ManagementTransportation Management
SAP Transportation Management software helps companies to efficiently, quickly and accurately orchestrate the movement of goods. It creates an environment that simplifies, automates and interconnects transportation processes, improves order management, planning and consolidation and optimizing inbound and outbound shipments while taking into account real-world constraints and costs and penalties.
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
SAP Transportation Management SAP Transportation Management
1919Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Transportation Management DashboardTransportation Management Dashboard
2020Transportation ManagementTransportation Management
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Logistics Management SalariesLogistics Management Salaries
Transportation ManagementTransportation Management2121
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
Emerging Transportation Model Emerging Transportation Model
2222Transportation ManagementTransportation Management
A. ________________
B. ________________
C. ________________
D. ________________
E. ________________
Transportation Strategy Transportation Strategy SCMN 4780SCMN 4780
SCMN 4780 Transportation Strategy Test 3 SCMN 4780 Transportation Strategy Test 3
2323Transportation ManagementTransportation Management
• Multiple Choice • True / False• Matching • Short-Answer
• GJP will distribute schedule for final team deliverable submission