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In cooperation with:
endowed by the Kühne Foundation
Navigating German-Chinese Logistics
Networks
–
Lead-Time Management in a Globalized World
Prof. Dr.-Ing. Frank Straube
Christian F. Durach, M.Sc.
Dipl.-Ing. Benjamin Nitsche
Berlin, September 17, 2015
7th Workshop on German-Chinese
Logistics Networks
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 2 –
Today’s Take Away
Get exclusive insights to the online Navigator Tool for German-Chinese logistics networks
Learn about causes for long lead-times and lead-time variability in different industry sectors
Exchange experiences with some of your peers in the same and different industry sectors
Jointly identify strategies to reduce lead-times and their variability in international supply chains
Note: We seek to provide a platform for you to exchange ideas and concerns in order to allow you to excel in your business in China – take advantage of it.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 3 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 4 –
The Technische Universität Berlin
HBS Building
• 7th Workshop,
HBS 0.005
Main Building
• Chair of Logistics, H90
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 5 –
Students (SS 2015)
Total: 31.702
Male: 21.429
Female: 10.273 (32.4%)
International: 19.3%
Staff (March 2015)
Total: 8.372
Professors: 444*
Researchers: 2,691
Students: 2,630
* incl.visiting and honorary prof.
Faculties
I Humanities
II Mathematics and Natural Sciences
III Process Sciences
IV Electrical Engineering and Computer Sciences
V Mechanical Engineering and Transport Systems
VI Planning Building Environment
VII Economics and Management
› 3.602 students (of which 95% are industrial
engineers)
Institute
Economics, Management
and Business Law
Technology &
Management
Bereich
Logistik
Public funding: 302.6 Mio Euro p.a.
External funding: 174 Mio Euro p.a.
>1.200 research projects and
over 110 research cooperations with
international universities
Presentation of TU Berlin – Chair/Department of Logistics
(1/2)
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 6 –
Presentation of TU Berlin – Chair/Department of Logistics
(2/2)
Chair of Logistics at TU Berlin
Teaching
Research
Services
Competence Center
for
International
Logistics Networks
Endowed by
Kühne-Foundation
Head: Prof. Dr.-Ing. F. Straube
Founder: Prof. Dr.-Ing. H. Baumgarten
Honorary professors:
Prof. Dr. S. Jürgens
Prof. Dr.-Ing. R. Klinkner
Prof. Dr. W. Prümper
Lecturers:
Dr. J. Biesemann (Continental)
Dr. S. Doch (ITCL GmbH)
Dr. F. Schupp (Schaeffler Group)
Partner institutes of the chair of logistics in
China, Brazil, Abu Dhabi and France
International
Logistics
Networks and
Services
Prof. Dr.
Sidong Zhang
Endowed by
Kühne-Foundation
Chinesisch-
Deutsches
Hochschulkolleg
CDHK) der Tongji
University Shanghai
ILOS – Instituto de Logística e Supply Chain
Abu Dhabi University
Toulouse Business School
Ecole Centrale Paris
More than 30 years of experience in logistics research and
logistics education at the TU Berlin
Honoured as one of the most research active chairs of the
TU Berlin (TOP 10%)
One of the most important research and education
institutions of logistics in Germany
Facts about the Chair of Logistics
Staff: ca. 20 research associates
10 student assistands
3 non-academic employees
Students: 180 (Summer14), 170 (Winter1415)
Theses: 60 bachelor, master, diploma theses
3 conferrals of a doctorate
Ratio of internal financing: ca. 85%
Key data of the Chair of Logistics (2014/15)
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 7 –
eMobilty - Smart eUser
Reduction of urban supply and waste transport through logistics optimization.
The project is a part of a national eMobilty research network. The aim is to
consider costumer’s demand and the use of electric mobility and smart
technologies.
Smart Logistics Grid
The project “Smart Logistics Grid” examines how adaptable and multimodal
logistics networks can be created by use of integrated logistic planning and
regulation as well as the realisation of a SC Operations Room and SC Event
Cloud.
Navigator for German-Chinese Logistics Networks
The project “Navigator for German-Chinese Logistics Networks” a research
project seeks to improve strategic planning processes in German-Chinese
logistics networks.
MX Award: Manufacturing Excellence Award
Providing a platform for experts from academia and practice in order to support
the international and cross-industrial collaboration of our economy, and
honoring best practice manufacturing.
Current Research Projects at the Chair of Logistics –
Selection
– 8 –
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin
The Research Project: Where do we come from, what is still
to come?
We seek a continous exchange between research & practice,
so fare having focused on risk and volatility.
Company Visits
Workshops Online Tool
Research/
Publications Living Lab
– 9 –
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin
Multiple German companies seek a new market in
China
Target for today
Infrastructure
need in
Chinese
hinterland
Lack of talent
Chinese domestic market
becomes increasingly important
Chinese companies
become global player
Lack of process
standardization
Increasing demand for
sustainability
Increasing challenges for companies in the Chinese market
Increasing supply chain
volatility
Increasing disruption risks (e.g., natural catastrophes)
Increasing supply chain
volatility
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 10 –
Objectives of Today‘s Workshop
Discuss applications and potential improvements of the Navigator
Tool
Discuss how volatile lead-times affect your business
Identify important causes for long lead-times and lead-time
variability
Openly discuss potential strategies to lower lead-times and to
decrease their variability
We want to learn from your experiences in order to develop feasible
solutions for your business
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 11 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 12 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 13 –
Multidimensional challenges make German-Chinese
logistics networks particularly vulnerable.
Warehouse
Production
Production
Customer
Material Flow
Information Flow
Customer Customer
Customer
Customer
Counterfeit Sub-Products
Transport Infrastructure Failure
Warehouse Fire
Cu
sto
m D
ela
ys
Damaged Goods
Lead Time
Container Loss
Culture
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 14 –
Mitigating these challenges through a purposeful design of
your logistics network – An effort that needs practical and
scientific support.
Requirements and Aims of a Planning Support
Planning
Support
Robust Structure (Avoiding/ Resisting)
Concepts to support
Planning Decisions Designing/Planning
Proactiveness
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 15 –
The research project „Navigator for German-Chinese Logistics
Networks“ supports logistics planning in international networks.
Target Audience
Automobile, Electronics, Consumer Goods and Logistics Service
Provider Industry
Develop an online logistics data library with relevant practical
network data.
Develop a navigational tool to help build robust German-Chinese
logistics networks.
Identify challenges and mitigation strategies for German-Chinese
logistics networks to build robust networks.
Project Goals
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 16 –
Customs Customs
The regulatory framework of this project offers research possibilities
in multiple areas and is open for any additional suggestions you may
have.
Supplier LSP LSP Customer Focal Firm
Robust Logistics Strategies
Manufacturing Distribution Delivery
Distribution Planning
Volume Planning
Order Contact Point
Order Sequencing
Production Planning
Capacity Planning Disposition Planning
Logistics Data Library
Proactiveness Partner
Selection Co-opetition
Talent
Management
Information &
Communication
Technologies
Reactiveness
Supply & Demand Volatility
Disruptive
Risks
Planning of Logistics Networks
Grounded in the Customer Order Process
Good-Practice Supply Chain Concepts
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 18 –
Online Logistics Data Library with relevant practical
network data of China and Germany
A first draft is available online
http://china.logistik.tu-berlin.de
Value of import and export
Throughputs of ports
Airports
Metropolitan Clusters
Logistics Region China
E-Commerce Logistics Development of Chain Business
Logistics
China Logistics Costs
Coordinated Development of Manufacturing and Logistics in
China
Development of Cross-Border Logistics System
in Inland China
2013
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 19 –
Participants of the previous workshop in Shanghai
(excerpt)
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 20 –
The browser based navigational aid will provide a platform for
companies to perform inter-organizational network planning.
Navigator structure
Freely accessible Account access
Joint planning via multi-user browser based online
application
Joint Remote
Planning Teaching Living Lab Valuable Planning
Information
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 21 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 22 –
Cultural gap (misunderstanding)
Legal uncertainty
Transport infrastructure failure
Customs compliance
Industrial espionage
Unfair competition
Non-complient partner
Supplier insolvency
Corruption
Restricted number of appropriate suppliers
Relocation of partner
Unexpected supplier plant outage
Natural disasters (Metrological)
Political unrest
Inferior quality due to handling errors
Strikes
Criminal acts (endogenous)
Criminal acts (exogenous)
Counterfeit sub-products
2,5
3,0
3,5
4,0
4,5
5,0
5,5
2,5 3,0 3,5 4,0 4,5 5,0 5,5
Pro
bab
ilit
y
Impact
In previous workshops we mastered to identify most
pressing disruption risks in the Chinese market.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 23 –
For some of these risk we identified an evaluated specific
mitigation strategies.
Cultural gap (misunderstanding)
Legal uncertainty
Transport infrastructure failure
Customs compliance
Industrial espionage
Unfair competition
Non-complient partner
Supplier insolvency
Corruption
Restricted number of appropriate suppliers
Relocation of partner
Unexpected supplier plant outage
Natural disasters (Metrological)
Political unrest
Inferior quality due to handling errors
Strikes
Criminal acts (endogenous)
Criminal acts (exogenous)
Counterfeit sub-products
2,5
3,0
3,5
4,0
4,5
5,0
5,5
2,5 3,0 3,5 4,0 4,5 5,0 5,5
Pro
ba
bil
ity
Impact
Identification of Disruption Risks
using the „Nominal Group Technique“
Identification of Appropriate
Mitigation Strategies
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 24 –
SC Example I: Supply Chain of a German tier-1 automotive
supplier for turned parts – Lead Time Issues
DC
Supplier
Material flow (Supply)
Purchasing
Information flow*
Material flow (Distribution)
Shanghai, DC
Tier 1
Tier 1
Tier 1
Tier 1 Tier 1
Tier 1 Tier 1
Tier 1
Tier 1
Tier 1
Purchasing
Office
Tier 2
Tier 2
Poland
Serbia
South Africa, DC
Brazil, DC
• Purchasing Volume: 6 Mio. €/a
• Order Lead Time: ~6 months
• Material Sourcing: 70% from China
• Shipment cycle: 1 shipment per week
• Make-to-Order
Suppliers
• Delivery reliability:
~60%
General Company
Information:
• >3100 employees
• 10 product groups
• >25000 SKUs
• >2000 suppliers • Make-to-Stock
production
• Risk: >52 supply chain
disruption/a
• Delivery reliability:
>99%
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 25 –
SC Example II: SC of a tier-1automotive supplier for steering
systems – Disruption Issues
Material flow
Information flow
Cross-Dock (supplier)
Production site (Steer Inc.)
SC headquarters
Production site (supplier)
Tier 3
Tier 4
Malaysia
Japan
China
Tier 1
Tier 2
Tier 3
• 1st tier supplier for electric
motors supplies Steer
Inc. productions sites in
China and Europe
• 2nd tier supplier for relays
fails to deliver the right
amount at the right time
• 3rd tier supplier delivery
transistors to relay
manufacturer
• Steer Inc. is doing regular
capacity checks with 4th tier
(wafer supplier) to ensure
feasability of orders
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 26 –
Managing supply chain volatility has been the topic of the
last workshop and will be central to this workshop as well.
We define volatility as the unplanned variation of upstream and downstream material
flows resulting in a mismatch of supply and demand at the focal firm.
Definition of volatility
Supply chain events can be classified as recurrent and disruptive events. To specify
the focus of this workshop, volatile material flows that are caused by supply chain
disruptions are excluded.
The main goal of managing volatility is to adjust the upstream and downstream material
flow in order minimize total costs and avoid the negative effects of out of stock situations.
Objectives of volatility management
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 27 –
The survey results indicate the usefulness of a platform for
exchanging practices on the management of volatility
0 1 2 3 4 5 6 7
We are completely aware of all reasons forvolatile material flows
Companies located in China experience ahigher degree of volatility than companies
located in Western countries
Our suppliers are capable of managingvolatile material flows
Due to a lack of capabilities the negativeimpacts of volatility are severe
The resulting challenges to deal withvolatility are very high
Volatile material flows affect our dailybusiness
Mean
Std
Totally disagree Indifferent Totally agree
*Data according to pre-workshop questionnaire in Berlin and Shanghai
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 28 –
Supply Side (vom Lieferant): Supply Side Volatility
What is your highest positive/negative deviation from this order quantity per month within
one year?*
Highest Positive Deviation Highest Negative Deviation
56% 46% Average Ø**
1000%
Min
Max
5%
100%
10% *Data according to pre-workshop questionnaire in Berlin and Shanghai
**Outlier excluded
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 29 –
Supply Side (vom Lieferant): Delivery Quantity Deviation
To what percentage does the delivery quantity deviate from your order quantity on
average?*
38%
25%
18% 19%
0% - 5% >5% - 10% >10% - 30% >30%
Classification of Quantity Completeness of Delivery
*Data according to pre-workshop questionnaire in Berlin and Shanghai
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 30 –
Supply Side (vom Lieferant): Complete Delivery
Please specify the percentage of complete deliveries (nothing missing) that are delivered
on-time.*
41%
6%
29%
18%
6%
<=84% >84% - 90% >89% - 95% >95% - 98% >98% - 100%
Classification of Timeliness of Delivery
*Data according to pre-workshop questionnaire in Berlin and Shanghai
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 31 –
Demand Side (zum Kunde): Demand Side Volatility
Highest Positive Deviation Highest Negative Deviation
62% 47% Average Ø**
1000%
Min
Max
10%
100%
10%
What is the highest positive/negative deviation of sales per month you experience within one
year?*
*Data according to pre-workshop questionnaire in Berlin and Shanghai
**Outlier excluded
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 32 –
Demand Side (zum Kunde): Delivery Reliability
Please specify your delivery reliability for that product.*
53%
20%
7%
13%
7%
<90%Latecomer
90% - <97%Catch up
97% - < 98%Typical
98% - <100%Advanced
100%Best in Class
Classification of Delivery Reliability*
Classification is based on German Automotive Industry performance according to Handfield et al. (2013).
*Data according to pre-workshop questionnaire in Berlin and Shanghai
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 33 –
Your Company
In the last workshop we sought to identify the most
pressing root causes of volatility in supply chains.
• Identification of drivers of volatile material flows in supply chain
A driver is understood as a controllable or uncontrollable factor that increases
volatility in your supply chain.
• Classification of drivers according to the following categories:
1. Exogenous to your supply chain
2. Endogenous to your supply chain (supply chain partners)
3. Self-induced
Goal of the 6th Workshop (Shanghai)
Source Make Plan Deliver Suppliers Customers
Self-induced Endogenous Endogenous
Exogenous
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 34 –
A multitude of drivers for volatile material flows have been
identified.
Exo-
genous to
the SC
Endo-
genous to
the SC
Self-
induced
Weather
Seasonality/holidays
Demographic changes
Economic instability
Exchange-rate volatility
Competition
Labor shortage
Customs regulations
Legal changes
Technological development
Political instability
Cultural differences
Capability of suppliers
(quality & capacity)
Lead-time variability
Demand forecasting
processes
of suppliers
Inter-organizational
misalignment (technology &
communication)
(expected) unstable material
prices
Financial instability of
suppliers
Lack of information
transparency in the SC
Lack of service quality (LSP)
Lack of IT
Quality issues
Long/short product life
cycles
Design/engineering changes
Intra-organizational
misalignment
Delayed management
decisions
Internal forecasting
processes
Lack of long-term capacity
planning/flexibility
New product launches
Product variety
Network complexity
Human error
Technical issues/unstable
production
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 35 –
Managing lead-time variability has been prioritized as one of
the most pressing sources of volatile material flows.
Exo-
genous to
the SC
Endo-
genous to
the SC
Self-
induced
Weather
Seasonality/holidays
Demographic changes
Economic instability
Exchange-rate volatility
Competition
Labor shortage
Customs regulations
Legal changes
Technological development
Political instability
Cultural differences
Capability of suppliers
(quality & capacity)
Lead-time variability
Demand forecasting
processes
of suppliers
Inter-organizational
misalignment (technology &
communication)
(expected) unstable material
prices
Financial instability of
suppliers
Lack of information
transparency in the SC
Lack of service quality (LSP)
Lack of IT
Quality issues
Long/short product life
cycles
Design/engineering changes
Intra-organizational
misalignment
Delayed management
decisions
Internal forecasting
processes
Lack of long-term capacity
planning/flexibility
New product launches
Product variety
Network complexity
Human error
Technical issues/unstable
production
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 36 –
From the previous workshop data we developed a framework to
manage disruption risks and volatility in German-Chinese
logistics networks.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 37 –
The framework builds around six measurement categories that are
central to the project and provide the basis for developing new
concepts.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 38 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 39 –
Goals of the Navigator Tool
The overall goal of the Navigator Tool is to support practitioners in
planning robust logistics networks between Germany and China.
Therefore it helps to visualize supply chains.
It aims to accumulate supply chain data that is widely spread among
different departments and suppliers.
The tool forces logistics planners to think about their supply chain structures.
It provides valuable planning information, logistics data and
management concepts for different steps of supply chain planning to
improve supply chain robustness.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 40 –
Planning steps of the Navigator Tool
1. Define all countries needed to draw the network under consideration.
2. Choose all nodes for the network and place them on the created map.
3. Define all available and necessary information for each node.
4. Draw the material flow between the nodes starting from the node that is furthest upstream in your network, through using the „edge“ symbol.
5. Define all available and necessary information for each edge.
6. Define material flows on all edges. The tool will automatically calculate inputs and outputs in each node.
7. To relate inputs and outputs in each node, define the Bill of Material in each node.
8. In case needed, send your project to some of your peers to develop it further.
9. Critically analyze your network through visual inspection and going through the data provided in the logistics data library and the navigational aid
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 41 –
The Navigator Tool can be found on our Website
• You can find the
Navigator Tool on our
website
• www.china.logistik.tu
-berlin.de/wp/
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 42 –
Navigator Tool – Login screen
• By clicking on the “Register”
button you can create your own
account
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 43 –
Navigator Tool – User profile
• In your account you will find an
overview of your projects
• You can also invite colleagues
to your project to jointly plan
your supply chain
• By clicking on the “Add new
project” button you can start a
new project
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 44 –
Navigator Tool – Starting a new project
• Before starting a new project
you have to determine general
project data, currency and
relevant companies for your
supply chain project
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 45 –
Navigator Tool – Adding nodes to your network
• Every project starts on blank page
including maps of Germany and
China
• The navigation area on the left
includes different node types of a
supply chain
• By selecting a node type you can
add warehouses, factories,
suppliers, customers etc. to your
network
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 46 –
Navigator Tool – Adding countries
• By using the „Add country“ button
you can add additional countries to
your supply chain
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 47 –
Navigator Tool – Definition of material flows between nodes
• By using the „Add edge“ button you
can connect your nodes to visualize
the material flow between them
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 48 –
Navigator Tool – Crafting the supply chain
• By adding additional nodes and
edges to your network you can craft
your whole supply chain step by
step
• Once you have finished this process
you can start adding additional
supply chain data to the nodes and
edges
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 49 –
Navigator Tool – Compiling node information
• By double-clicking on different nodes you can
determine relevant supply chain data for every supply
chain actor:
Node Info: Name of Node, owner, operator, address
etc.
Input: includes all products that are delivered to that
node, will be generated automatically after definition
of material flows in the supply chain
Output: Description of all outputs, will be generated
automatically
BOM: Definition of bill of materials for every output
product
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 50 –
Navigator Tool – Definition of material flows
• By double-clicking the edges you can determine the
material flows in your supply chain:
Edge Info: Operator, transport carrier, transportation
time etc..
Edge goods:Definition of all products including
names, quantities, prices, measures, weights,
transport costs etc.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 51 –
• A comments function will be
implemented to discuss your supply
chain project with peers and
suppliers
Navigator Tool – Comments function
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 52 –
• The „navigational aid“ provides
planning information, logistics data
and management concepts that will
help supply chain planners to plan
robust logistics networks
Good practice supply chains:
supply chains from electronics,
automotive und consumer goods
industry that have been
generated within the project
Logistics data library: includes
relevant logistics planning data
Planning information:
information materials e.g. on
customs management,
successful market entry, supplier
selection processes, cultural
aspects, logistics costs etc.
Risk and volatility
management framework:
framework has been developed
during the project, it contains
management concepts and
strategies to deal with risks and
volatilities in the chinese market
Navigator Tool – Navigational aid to support supply chain
planners
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 53 –
How the tool can and cannot support you.
What it is not
The tool is not a strategic optimization tool that automatically adjusts your network to fit an optimal solution.
The tools strength
Freely available browser based tool.
Easily accessible from all around the world not requiring any software to be installed on your laptop or PC.
Helps to easily pool knowledge across complicated and sometimes complex network structures.
Aims at making the supply chain planner critically analyze her/his network
Important information will be presented in a structured way that is considered a “navigational aid” to supply chain managers, as it provides cross level decision support in prioritizing and selecting network alternatives.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 54 –
Let‘s go online…
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 55 –
Discussion questions
Do you already have a structured overview on your supply chains?
How do you visualize your supply chain structures for new colleagues?
Do you store your supply chain data centrally?
How do you go about analyzing your supply chains?
Now, that you have seen the process and value of our tool, do you see additional
features we should consider in our tool that could help you? Would you be willing
to provide further feedback after you have applied it at your company?
Please let us know if you are interested in receiving more information regarding
the tool, such as a presentation at your company.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 56 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 57 –
With your help we aim to design a lead-time management concept
that helps decrease lead-times and lead-time variability.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 58 –
Status Quo: Western companies face very long and volatile
lead-times within their logistics networks
DC
Supplier
Material flow (Supply)
Purchasing
Information flow*
Material flow (Distribution)
Shanghai, DC
Tier 1
Tier 1
Tier 1
Tier 1 Tier 1
Tier 1 Tier 1
Tier 1
Tier 1
Tier 1
Purchasing
Office
Tier 2
Tier 2
Poland
Serbia
South Africa, DC
Brazil, DC
• Transportation to
Germany: 5 weeks
• material purchasing of
the supplier: 2-3
weeks
• Production: 3-4 weeks
• On a yearly basis headquarters
determine binding annual order
quantity for each supplier
• transport and
warehousing in China:
1-2 w
• Possible total lead-time: 12-14 weeks
• Nevertheless they face a lead-time of
5-7 month from order placement to
arrival in Germany for every single
order
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 59 –
Underlying definition and understanding of lead-time in this
workshop
Placement
of Order at
Supplier
Start
Lead-Time End Lead-
Time
Receiving
Shipment
Production/
Transformation Delivering Transportation
Product
arrives at
Customer
Shipping
Lead-Time
Source: Gudehus (2007. p. 218)
Lead-Time starts when you order the product at your
supplier, and it ends when the transformed product reaches
your customer.
Definition
Lead-Time is the sum of all throughput times (manufacturing, transportation,
idel, waiting, storage etc.).
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 60 –
Why do we want to manage our lead-times?
Lead-time vs. Service cost
• Competitive advantage (higher customer satisfaction)
• Potentially higher prices
• Etc.
Advantages from decreasing lead-times
• Higher costs due to increased working capital • More puffers needed • More space needed • Etc.
Disadvantages from decreasing lead-times
The automobile industry sometimes experiences idle times that
are 5 to 10 times higher than the sum of all set-up, production
and transportation times (Gudehus, 2007).
Potential?
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 61 –
Re
lative
Va
ria
bil
ity o
f L
ea
d-T
ime
Length of Lead-Time
Two different dimensions in lead-times
Short lead-time with some
delays
Medium lead-time with hardly any variability
Long lead-time with strong variability
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 62 –
Workshop I: What causes long and variable lead-times in
German-Chinese logistics networks?
Logistics Services Customs
Distance Culture
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 63 –
When does variability in lead-times become important?
Variability is always realtive to the average expected length of
the lead-time.
What does
this mean?
When your delivery time is calculated in weeks, a deviation of one
week might be considered normal. If your delivery time is calculated
in calendar days, you will not try to deliver using exact ours.
Note
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 64 –
We want to develop a „Lead-Time Flexibilization Management
Concept“ that provides a guideline to analyze, cluster and reduce
lead-times.
Structured
analysis of lead-
times in the
supply chain
Identification of
critical
processes
Implementation
of lead-time
reduction
measures
• Determination of lead-times and lead-time variability for main processes of all
actors in the supply chain (raw material suppliers, n-tier suppliers, OEM,
customer) according to a structured process model
• Identification of appropriate measures with the help of a Measurement
framework to reduce lead-times and variability in supply chains
• E.g. capacity insurance program
Raw material
suppliers 1st-tier supplier … OEM
Process Leng
th LT
Variability LT
- +
Purchasing 14 0 21
Prod. Planning 7 3 3
Production 3 0 0
Distribution 3 0 3
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 65 –
Workshop II: Identify management strategies
Suppliers Processes
Trans-
portation
In-house Processes
Trans-
portation Pur-
chasing
Prod.
Planning
Pro-
duction
others Pur-
chasing
Prod.
Planning
Pro-
duction
others
Re-Design
(e.g., bottle neck
reduction, order
penetration point,
change order of
processes, make
processes parallel etc.)
Partners
(e.g. increase cultural
understanding, reduce
avoidable steps in your
network etc.)
Management (e.g.
agree on dates and
schedules, standardize,
reduce disruptions etc.)
Others
Source: Gudehus and Kotzab (2012)
Placement
of Order at
Supplier
Start
Lead-Time End Lead-
Time
Receiving
Shipment
Production/
Transformation Delivering Transportation
Product
arrives at
Customer
Shipping
Lead-Time
Ma
na
ge
me
nt
Str
ate
gy C
luste
rs
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 66 –
Two workshops will provide the framework for today‘s
group discussions
Talk about your most important
causes for long and variable lead-
times
Identify lead-time management
strategies
Workshop I Workshop II
Goal
• Identification of causes for long
and variable lead-times
• Decide jointly on the causes that
seem to have the biggest impact
on your business performance
Goal
• Identify supply chain strategies to
decrease lead-time and lower lead-
time variability
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 67 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 68 –
Workshop I: Causes for Long and Variable Lead-Times
Individual sharing of causes
–
one after the other
2
30 min
1
In each group: write down your
individual causes for long and
variable Lead-Times.
15 min
Guiding questions:
• What are the causes for long and variable lead-times in your supply chain?
3
Each Group 7 min
Presentation of results from Workshop I
by group leaders
Choose a group leader to present the results to the plenum.
Suppliers Processes
Trans-
portation
In-house Processes
Trans-
portation Pur-
chasing
Prod.
Planning
Pro-
duction
others Pur-
chasing
Prod.
Planning
Pro-
duction
others
Long Lead-times
Variable Lead-times
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 69 –
Workshop Groups
Group 1
• Dr. Alessio Merlin
• Frank Bieber
• Thomas Engeln
• Matthias Genthe
• Jens Happe
Group 2
• Dr. Padideh Moini
Gützkow
• Korinna Wüstefeld
• Marc Stichert
• Rainer Schmitt
• Piotr Dopierala
Group 3
• Markus Wagner
• Andre Remy
• Yawei Zhen
• Dr. Lars Dittmann
• Christoph Paulus
Group 4
• Andrea Wolf
• Stefan Schleich
• Georg Feng
• Markus Punzmann
• Hans-Gunnar Elias
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 70 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 71 –
Workshop II - Identification of Internal Mitigation Strategies
Individual sharing of ideas
and opinions, followed by a
discussion.
50 min
In each group: individual
generation of mitigation
strategies for each cause.
20 min
Take notes of the strategies
and further ideas.
Draw a dot behind each
cause that you want to
talk about
1
10 min
2
Choose a group leader to present the results to the plenum.
3
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 72 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 73 –
Presentation of Results from Workshop II
1
Each Group 8-10 min
Presentation of mitigation strategies
from Workshop II
Feedback and comments on
additional strategies by other
groups
2
3-5 min
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 74 –
Agenda
08:30 – 09:00 Registration of the participants and welcome tea & coffee
09:00 – 09:15 Opening Note & Target for Today
09:15 – 09:45 Self-introduction of Workshop Participants
09:45 – 10:15 The Project & Results Achieved
Motivation and Goals of the Project
Results and next steps
10:15 – 11:15 Presentation and Discussion of Navigator Tool
11:15 – 11:30 Introduction to Workshop
11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times
12:45 – 13:45 Lunchtime
13:45 – 15:15 Workshop II: Identification of Mitigation Strategies
15:15 – 15:30 Tea & Coffee Break
15:30 – 16:15 Presentation of Workshop Results
16:15 – 16:30 Summary, Feedback and Farewells
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 75 –
Outlook
The „Navigator for German-Chinese Logistics Networks“ is a long-term
project.
It draws from regular exchanges between industry and academia to
build concepts.
We need your input and desires to allow us to build top and
generalizable solution concepts.
Today’s focus on network volatility is a fundamental part of the project.
Please approach us if you are interested in a closer collaboration. We
would be happy to have a closer exchange with you, to get more
insights on how you plan your network and identify issues you may
have.
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 76 –
Thank you for participating!
What follows next?
We will send you a summary of the workshop results.
We will keep you up to date on all developments in the project.
We would be happy to welcome you at one of our next workshops!
1
2
Deutscher Wirtschaftsingenieurtag (DeWIT) 2015
Managementkongress für Entscheider und Vordenker
an der Technischen Universität Berlin
Thema 2015: „Führung · Netzwerke · Digitalisierung“
Veranstaltung: Hochwertige Netzwerkveranstaltung,
Informations- und Diskussionsplattform für
Top-Führungskräfte, Manager, Unternehmer,
Wissenschaftler, Young Professionals und
Studierende, insbesondere für
Wirtschaftsingenieure
Datum: 19. und 20. November 2015
Anmeldung: www.dewit.de
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 78 –
Room for feedback!
Lead-Time Management in a Globalized World, September 17, 2015
Prof. Dr.-Ing. Frank Straube
Chair of Logistics, Technische Universität Berlin – 79 –
Contact
Prof. Dr.-Ing. Frank Straube
Fachgebiet Logistik
Technische Universität Berlin
+49 30 314-22877 (Tel.)
Dipl.-Ing. Benjamin Nitsche
Fachgebiet Logistik
Technische Universität Berlin
+49 30 314-26007 (Tel.)
Christian F. Durach, M.Sc.
Fachgebiet Logistik
Technische Universität Berlin
+49 30 314-24568 (Tel.)
Please follow us on:
http://china.logistik.tu-berlin.de/