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Introduction to Logistics and Supply Chain
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[email protected], [email protected] www.greenlogisticsthai.org
Facebook: greenlogisticsthai
Logistics Supply Chain
1 5
mailto:[email protected]://www.greenlogisticsthai.orgLogistics
Logistics planning and execution, management of a business or other operation; branch of the military which
oversees and maintains material and personnel
/
:
= Physical distribution
Logistik
( )
(Hangul)
Company name www.themegallery.com
1.
2.
3.
1 /11/2012 Techa Boonyachai
Science on Logistics System
Business Model
LOGISTICS
5
Logistics
Green
Reverse Reduce, Reuse, Recycle)
www.themegallery.com
1,000,000
300,000 700,000
300,000 100,000
50,000 100,000 150,000
45,000 105,000
www.themegallery.com
How to Decrease Cost but Increase Competitive Advantage?
Logistics Costs)
Company name
www.themegallery.com
Science in Logistics System
How to Decrease Cost and
Increase Competitive Advantage
Company name
How to Decrease Cost and Increase Competitive Advantage
Powerpoint Template
Suppliers
()
/
10
(Logistics)
: Council of Logistics Management
11
Product
Price
Place
Promotion
Marketing
Mix : 4Ps
Logistics
Maximize Customer Service level and Satisfaction
Inventory Holding
Warehousing
Transportation
Order Processing& Customers Response
Supply
Minimize Cost
Logistics vs Marketing vs Manufacturing
Machine
Money
Man
Management
Manufacturing
Mix : 5Ms
Material
LOGISTICS
Activities
12
1)
2) Lead time
3) PD PD PD
. .4 Just in time
Node Node
Mode
Link
14
15
Distribution Center
Initial Supplier
First Tier Supplier
Manufacturer
Wholesaler
Retailer
En
d U
ser &
Cu
sto
me
r
Material Flow
Financial Flow
Information Flow
Manufacturer Logistics
DC Logistics
Retailer Logistics
Supply Chain & Logistics
Source: Techa Presentation
16
Logistics Activities
Logistics
Customer service
Demand Forecasting
Inventory Management
Material Handling
Order Processing
Location Selection
Packaging Procurement
Reverse Logistics
Part and Service Support
Traffic and Transportation
Warehousing And Storage
7
2
4
5
6
1
8
9
10
11
12
17
1 Order Processing
18
Customer Order Cycle
Customer Order
Order transmittal
Enter Customer
Order
Customer Delivery Ship Customer Order
Inventory available
Check credit
Production Schedule
Back Order
Production Shipping
Documentation
Invoice
Process Order Warehouse Withdrawal
Transportation Scheduling
Inventory File
19
Order Processing : Importance
forms the foundation for logistics and corporate
20
Four way to evaluate order transmittal
Speed
Cost
Consistency
Accuracy
21
Traditional Order Form
22
EDI vs. Traditional Method
Post Office
Purchasing Order
Purchasing Order
Purchasing
Order Entry
Traditional Method
Purchasing
EDI Flow
Seller
23
Order via Information System
24
2 Customer Service
25
Bad Customer Service
26 Service Provider
Service Level
continuous increasing!!!
1
Customer Expectation
1
2
3
2
3
4 5
Service Provider who can created service level above
customer expectation will have more competitiveness.
27
3 Forecasting
or
28
29
4 Procurement & Purchasing
Supplier
30
How cost reduction created more benefits???
Margin 100 ,000
Overhead Cost 150 ,000
Production 150 ,000
Raw Material 600 ,000
Reduced Raw Material
Cost to 540 ,000
Production 150 ,000
Overhead Cost 150 ,000
Margin increased to
160 ,000
A 10 % reduction in
the raw material cost
A 60 % increase in its product
margin
31
5 Inventory Control
32
Cycle Stock
In -Transit Inventories
Safety or Buffer Stock
Speculative Stock
Seasonal Stock
Dead Stock
33
34
35
A
B C
ABC Analysis for Sales, Expense, Stock
Sales
Percentage of items
Pe
rce
nta
ge
of D
olla
rs
36
ABC Cycle Count Frequency
Detail / Items Items Items Items
Cost of Error High Medium Low
% of Total Cost 60 30 10
Cycle Count Frequency
Once a Month
Once a Quarter
Once a Year
Frequency of Order
Monthly Quarterl
y Annual
37
6 Warehousing
38
39
40
Manual System Warehouse
41
Manual System Warehouse
42
Automated System Warehouse VDO
43
Barcode
44
RFID : Radio Frequency Identification
45
RFID : Tag
46
RFID : Reader
47
RFID : Reader
48
7 Location Analysis
49
Source of Supply or Production site.
Location Analysis
Production Positioned
Close to source of supply or production facilities.
Intermediately Positioned
Located midpoint of customer and producer to offer high customer service Level.
Market Positioned
Nearest to final customer.
Market place or Customer
Case Study: Network Distribution Optimization
Location Analysis
57
8 Packaging
58
59
9 Transportation
60
61
62
63
64
65
66
Marine Loading Arms
67
68
69
70
71
Pressurize
72
Ro/Ro
73
74
75
Quay Gantry Crane
76
Yard Gantry Crane
77
78
79
80
81
Importer
Port/ Airport
Consumer
Consumer
Consumer
Consumer
Export
82
International Transport Industry
International Transportation
Sea/Air)
Liner / Airline
Chartering Market / Charter Flight
Industrial Carrier / Couriers
83
Collaboration between small shipper for inland transportation: Shipment Consolidation
:
84
Continuous move routing with Integration of inbound and distribution logistics
Supplier 1
Customer 1
Local Firm
Supplier 3
Supplier 2
Customer 2
Customer 3
Customer 4
Customer 5
Low Load Factor
Reduced Empty Run
and Increased
Load Factor
85
10 Parts and Supports
86
11 Material Handling
87
Material Handling : Equipment
VDOrobot
robot/VTS_01_1.VOBrobot88
12 Reverse Logistics
89
Reverse Logistics
Activities:
- Remanufacturing
- Refurbishing
- Reusing and Recycling
- Redesigning Packaging
- Reclaim Material
Objective:
- Product value added
- Reduce Waste
Logistics
Reverse Logistics
90
Green Logistics
+
+
91
Pollution Logistics Process
Distributor
Retailer
Buyer
Supplier
Manufacturer
Local Firm/Shipper Consignee
Port / Custom/Government/ License Agencies at Country of Origin
Port/Airport Port/Airport
Information/Invoice/Order-Processing
Inland Transportation
Product
Inland Transportation
Product
Long Haul Transportation
Product
Port / Custom/Government/ License Agenciesat
Country of Destination
Cargo Manifest
Wasted water Dust
Waste, Repaired and Return Product
Air Pollution and Oil Spilled
Obsolesced Item
Material Waste in Process
1. Closing - Production System 2. Efficiency of Input and Raw Material to production line
Reverse Logistics Recycle Packaging
Forecasting with SCM Information Tech.
Modal Shift Energy Shift Transport Mgmt.