5 global logistics

7/18/2019 5 Global Logistics

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1CONFIDENTIAL

TASKCo Corporation

[email protected]

886-2-8772-2583

e-Logistics Services

From Warehouse to Logistics ServiceCenter

64157

2002 Spring, Week 4-2

2002/04/13


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2CONFIDENTIAL

Complexity of a Typical Global Spply C!ai"

Supplier

Roadways

Roadways

Freight

Forwarder

Customs

Agent

Port

Ocean

liner

Airways

Roadways

Road+

Rail

RDCCustomers

Warehouse

Customer

(Retailer

Consumer!ome

Plant

Supercharin Supp!" Chains#rnst $ %oun &&'


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3CONFIDENTIAL

100%

T!e Evoltio" of E"terpriseApplicatio"s

% Penetration

Time

ERPERP

Supply

!ain

E"e#ution


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4CONFIDENTIAL

#!at is Logistics$

"ogisticsis de#ined as the process o# mo$ement o#

materials and products into% through and out o# a #irm&

T!e Logistics Flo%C!art

SALES

F&NCTION'S&((LIE)*

T)ANS(O)TATION (&)C+ASING

F&NCTION'DIST)I,&TO)*

S&((LIE)S

SALESF&NCTION

'DIST)I,&TO)*

T)ANS(O)TATION(&)C+ASINGF&NCTION'C&STOE)*

#A)E+O&SING


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5CONFIDENTIAL

T!e Logistics C!a""el

Sppliers

Sales 'Spplier*

Tra"sportatio"

(rc!asi"g 'Distribtor*

#are!osi"g

Sales 'Distribtor*

Tra"sportatio"

(rc!asi"g 'Cstomer*


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6CONFIDENTIAL

Cross F"ctio"al Natre of Logistics

Fro"t e". - Distribtor (rc!asi"g a".Spplier ar/eti"g I"terface

i..le - #are!osi"g a". Tra"sportatio"

,ac/ e". - Cstomer Co"tact 'ar/eti"g*

FRO' )'D *DD") ,AC- )'D

Functions o# "ogistics


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7CONFIDENTIAL

0ey Logistics Activities

Cstomer Service Levels - Set by ar/eti"g

base. o" Operatio"s Capabilities

Tra"sportatio" Routing and Vehicle

Scheduling I"ve"tory

R! and F" stoc#ing $olicies

%rea# %ul# Consolidation


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&CONFIDENTIAL

Spport Activities

#are!osi"g

How many? What configuration? Where to hold inventory?

*aterials !andling . ASRS% RF% ,ar Coding% )tc&

Purchasing . Supplier selection% Purchase timing%

/uantity% and /uality

Scheduling . nter#ace mar0eting and production

n#ormation *aintenance Data Collection Data Integrity


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'CONFIDENTIAL

Ob1ectives of Logistics Strategy

(rocess )e.ctio" - Cycle time2 Lea. time2Atomatio"

Capital Reduction . n$entory in$estment% num1er

o# warehouses

Ser$ice mpro$ement . the antithesis o# the #oregoing


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1(CONFIDENTIAL

I".stry Speci3c Logistics Services

$nu&try$nu&try $nu&try$nu&try

Si'

e

Si'

e

((

))

SS

Traitional W)S Pro*ier&Segment )arket +y u&tomer

Si'eTraitional

P

.pparel

ro#ery

/oo Ser*i#e

P(

pportunity

ealt!#are

Ele#troni#&.utomoti*e

3e (ogi&ti#& enter

Segment& )arket +y

u&tomer& erti#al

)arket

Si'

e

Si'

e


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11CONFIDENTIAL

Logistics Goal4 Close Gaps i" t!e SpplyC!ai"

Spee to

#omplian#e

(oer in*entory

ro&&-o#king alue-ae

&er*i#e&

ig!er num+er o

S89&

:ire#t-to-#on&umer onigure-to-orer

u&tomer ; retailer

&ati&a#tion

perational

prou#ti*ity

Tran&portationei#ien#y

$mpro*e in-&to#k

po&ition&

(oer in*entory

/le"i+le +u&ine&&pra#ti#e&

Retailer Re


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12CONFIDENTIAL

Tra.itio"al Distribtio" Systems &se.lti-Tiere. #are!osi"g

)anua#turer

=ulk

/ini&!e

oo& )anua#turer&:i&tri+ution

enter

=ulkS!ipment&

(o#al

Retail

:i&tri+ution

enter

ol in*entoryol in*entory

alue ae &er*i#e&alue ae &er*i#e&

Retail utlet Store

:i&tri+ution&


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CONFIDENTIAL

Tra.itio"al Distribtio" Ce"ter(rocess

1 $n+oun re#eipt o

goo&

3=ulk out+oun

&!ipment&

2Storage o

goo&

11

22


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CONFIDENTIAL

)anua#turer

)anua#turer&:i&tri+ution

enter

(o#al

Retail

:i&tri+utionenter

Retail utlet

5ic/ )espo"se I"itiativesStreamli"e Distribtio" (rocess

.*an#e &!ipping noti#e =ulk or irete &!ipment&

Store &pe#ii# pri#ing .i&le &pe#ii# palleti'ing ig! *elo#ity

ro&&-o#king /lo-t!roug!

(oer in*entory

reater a*aila+ility

:ire

#t&tore

:eli*

ery

:ire#t-to

-on

&um

er

ery !ig!

*olume )a&&

per&onali'ation $ntegrate T)S

re


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6ale-a..e. Logistics Ce"ter (rocess

1 $n+oun &!ipment$n+oun &!ipment

tra#kingtra#king

2 >ar management>ar management

3 $n+oun re#eipt$n+oun re#eipt

o goo&o goo&

4 Storage o goo&Storage o goo&

5 rer pi#kingrer pi#king

6 alue-aealue-ae

&er*i#e&&er*i#e&

7 rer pa#kingrer pa#king

8 Pa#k an !olPa#k an !ol

9 ut+oun #u&tomerut+oun #u&tomer

#ompliant &!ipmentompliant &!ipment&

44

77

55

66

??11

@@@@22


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Co"ti"osly C!a"gi"g Dema".s of)etailers

8-).RT We&tern Pu+li&!ing

3e Pra#ti#e3e Pra#ti#el Pra#ti#el Pra#ti#e

A rer&

:e&tination

/re


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From #are!ose to Distribtio"Ce"ter

B$n orer to ena+le greater #u&tomer

re&pon&i*ene&&, t!e traitional role o t!e

are!ou&e CW)SD i& mo*ing toar i&tri+ution

#enter T!i& i& a maFor or#e in ri*ing t!eeman or e-(ogi&ti#& appli#ation&G


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Global Operatio"s 7 Logistics Frame%or/

2eographical

ntegration

Sectorialntegration

Functionalntegration

G !i l i


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Geograp!ical I"tegratio"

mpact o# Distri1ution and ransportation greater

due to 32lo1alilty ,orders 1ecoming more porous in terms o# trade Production on glo1al scale ... no longer country.speci#ic nternational Sourcing Selling in *ultiple *ar0ets

Data Processing and Communication technology helpwith the geographical integration&

F i l I i


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F"ctio"al I"tegratio"

"ogistics . cross.#unctional in nature& Cuts across acti$ities

and creates inter#aces to optimi4e o$erall per#ormance& Flow management in 2lo1al "ogistics di##icult

nternationali4ed *ar0ets Competiti$e products in the *ar0et

Adaptation o# new technology 2o$ernment Regulations

S i l i


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Sectorial I"tegratio"

Companies are handling logistics issues together 1eyond

corporate 1oundaries&

)##icient Consumer Response ()CR

Distri1utorConsumer*anu#acturer

Colla1orate

(ina! aim(ina! aim--

to reachto reach

customercustomer

F i ! F .


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Freig!t For%ar.ers

Freight pro$iders ha$e the earliest instance o#

hu1 and spo0e systems

enders #or #reight ser$ices made worldwide De$elopment o# ntermodal #reight pro$ision *ergers 1etween #reight pro$iders .. e&g& Airplane

companies 2lo1ali4ation 1rings up se$eral issues in order to

satis#y pro5imity ser$ice 6se o# manu#acturers sales networ0 Setting up Pro5imity Distri1ution Centers (PDC De$eloping central hu1 #or e5press ser$ices and dispatch orders

Setting up in$entory o# class A products with storageoperator% distri1utor or agent

I t ti l T .i O t


23/5723CONFIDENTIAL

nternational Freight Forwarders

'on$essel.operating Common Carriers ('7OCC

Customs !ouse ,ro0ers

)5port *anagement companies

)5port rading Companies

Shippers Associations

)5port Pac0ers

I"ter"atio"al Tra.i"g Operators

D i F f Gl b l L i ti


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Dy"amic Forces of Global Logistics

he #irms adopt di##erent orientations with $arying intensities

due to the dynamic 1eha$ior o# the glo1al 1usiness en$ironment&

+'FO

6S)R

R)SO6RC)S

Gl b l L i ti 8 O i t ti


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Global Logistics8 Orie"tatio"

Resource Oriented "ogistics )mphasis towards optimal use o# resources .. capital%

materials and people Focuses on the relationship 1etween the #unctional

and the geographical

Optimi4e

Resources

Functional 2eographical



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CONFIDENTIAL


n#ormation Oriented "ogistics )mphasis towards optimal use o# in#ormation& Focuses on the relationship 1etween the sectorial

and the geographical dimensions

2eographicalSectorial

Optimal

Per#ormance



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CONFIDENTIAL


6ser Oriented "ogistics )mphasis on the #inal customer&

6sing all the supply chain partners to 1ring theire5pertise in order to 1est ser$ice the customer

6ser oriented #ocus 1rings a1out #le5i1ility in the

logistics channel

Customer

F t ( !i Gl b l L i ti


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CONFIDENTIAL

Factors (s!i"g Global Logistics

echnological

Ad$ances

)mergence o#2lo1al *ar0ets

2lo1al Cost

Forces

Political 8 *acro.economic #actors



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CONFIDENTIAL


2lo1al *ar0ets Competition #rom #oreign #irms in local mar0ets&

ncredi1le growth o# demand in #oreign mar0ets& 2lo1al presence used as competiti$e threat& Change o# priorities

2lo1al mar0ets growing #aster due to technological

ad$ances Products need to 1e introduced in all mar0ets

together& State o# the Art mar0ets dri$en 1y customer pre#erences

Firms ha$e to set up production in these areas to

maintain their competiti$e pro#iles& )&g& 9apan . *:ctools



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CONFIDENTIAL


mpro$ements in echnology

Communication #aster% easier and cheaper& *ar0ets characteri4ed 1y #ewer producers and greater

di$ersity in products Shorter product li#e cycles

echnology ad$ancement 1ecome glo1al phenomenon Firms ha$e to start loo0ing at international sources to

tap technological ser$ices 2lo1al competition #orcing companies to locate more

R8D and production units closer to the suppliers&

9oint $entures 1etween #irms to share technological in#o&



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CONFIDENTIAL


2lo1al Costs Forces.. Shi#t in "ogistics costs Shi#t in #ocus #rom direct la1or costs 2lo1al en$ironment #orcing companies to consider

a trade o## 1etween la1or costs% cost o# start.up%

#luctuation

o# currency% in$entory costs% cost o# ;uality

management and training the local wor0ers leading to is!an) hoppin

strate". 'ew Competiti$e priorities li0e speed%

;uality%customi4ation%

deli$ery relia1ility& Production #acilities are 1ecoming more capital

intensi$e high technology industries

R 8 D costs



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32CONFIDENTIAL


Political and *acroeconomic #actors )5change rate #luctuations Regional trade agreements ... 'AFA rade protection mechanisms

ari## and non.tari## 1arriers echnical Standards !ealth regulations Procurement policies

+ i Gl b l L i ti ti C! $


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33CONFIDENTIAL

+o% is Global Logistics creati"g C!a"ge$

he management has to consider the 2lo1al economy

"ogistics operations percei$ed more as Ser$ice Pro$ider

#or cost minimi4ation

Ser$icein the ndustry 1ecoming more important thanCost Sa$ing

"ogistics acti$ities no longer limited to mo$ing products

through the Supply Chain 1ut as an n#ormation Pro$ider

#or the SC&

Companies mo$ing away #rom 7ertical ntegration

and towards Supply Chain ntegration% with "ogistics

acti$ities pro$ided e5ternally&

Ne% co"cepts i" Global Logistics


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34CONFIDENTIAL

Ne% co"cepts i" Global Logistics

*e!oca!i+ation -practice o# adding $alue to the product at

di##erent locations closer to the consumer&

,o)u!ari+ation-practice o# assem1ling a product using modules

purchased #rom di##erent sources

*e!a"e) *ifferentiation $ postponement -Customi4ation

o# the order a#ter demand has 1een identi#ied

e.g: Labeling the product in the language of the countrie

that they have to be hipped to

,e"e3ts .e to Globali9atio" of Logistics


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35CONFIDENTIAL

,e"e3ts .e to Globali9atio" of Logistics

2lo1ali4ation is necessary #or long.term sur$i$al

Di$ersity o# mar0ets increasing gi$ing rise to Standardi4ation across international mar0ets

Product di$ersity

A1ility to access multiple sources o# technology

A1ility to set up strategic alliances and R 8 D

Global Spply C!ai" +( Example


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36CONFIDENTIAL

Global Spply C!ai" : +( Example

!P D)S-9) PR')R S6PP"< C!A'=

Printers made in 7ancou$er in two stages !rinted Circuit "embly # $et %!C"$& 'inal "embly # $eting %'"$&

Components needed #or PCA 8 FA ta0en #rom suppliers worldwide 8 #rom !P di$isions

Printer power supplies custom made #or each country

with manuals written in that language pac0ed

From 7ancou$er sent to Distri1ution Centers worldwide

Global Spply C!ai" +( Example


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37CONFIDENTIAL

C

*A'6F&

PR'*)C!&

*A'6F&

C6SO*)R

WOR"DWD)

S6PP")RS

DSR,6O'

C)'R)S

WOR"DWD)

PR')D

CRC6

ASS*& 8

)S

7A'CO67)R

F'A"

)S8

ASS*&

7A'CO67)R

S6PP")R

ACC)SSOR)S

Global Spply C!ai" : +( Example

Logistics Flo%s


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3&CONFIDENTIAL

Logistics Flo%s

Direct Flow

Re$erse Flow

From companies to mar0ets

From mar0ets to companies

Logistics8 Flo%s


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3'CONFIDENTIAL

Logistics Flo%s

nternal "ogistics )5ternal "ogistics

Direct

Flows

Re$erse

Flows

nterplants

Warehouse:Warehouse

Plant:warehouse

With suppliers%upply of material # component&

With customers%product( pare part( promotional #

advertiing material& With suppliers%pac)aging( repair&

With manu#acturers%elimination( recycling&

With customers%overtoc)( repair&

Strategy for Global Logistics


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4(CONFIDENTIAL

Strategy for Global Logistics

Co"soli.atio" poi"ts

,rea0 1ul0 Capacity iue - whether to add proceing capability or not

AWA'

6SA:)6ROP)*POR

7)'A*

*A"A


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41CONFIDENTIAL

e Logistics A o.lar Approac!

Snap-on )oule&

Snap-on moule

ar#!ite#ture

Ea&ily #onigura+le anupgraea+le

Prou#t i& ea&ily

#u&tomi'a+le to it

#u&tomer re


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42CONFIDENTIAL

Ftre Soltio" Strategy


43/57

43CONFIDENTIAL

I"tegrate. Logistics Services

$ntegrate (ogi&ti#& i& t!e u&ion o inormation, logi&ti#&

an tran&portation te#!nologie& to pro*ie rapi re&pon&eto tra#k an &!it a&&et& e*en !ile in reroute, an to

eli*er tailore logi&ti#& pa#kage& an &u&tainment ire#tly

at t!e &trategi#, operational an ta#ti#al le*el o operation

(ogi&ti#& un#tion& ill in#orporate inormation

te#!nologie& an ill ork Fointly an integrate it! ot!er&e#tor& to take a*antage o a*an#e +u&ine&& pra#ti#e&,

knolege e#onomy, an glo+al netork&

$normation te#!nologie& ill en!an#e air#rat, &ea liner&,

an pre-po&itioning #apa+ilitie& to lig!ten eployment loa&

T!ir. (arty Logistics (rovi.er


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44CONFIDENTIAL

Ser$ices pro$ided are 1oth physical and management&

Ser$ice le$els impro$e due to impro$ement in #le5i1ility

and in$entory management

Cost reduced as compared to in.house logistics pro$ider

n glo1al logistics% $ersatile mar0ets and products neede5pert ser$ices which can 1e pro$ided 1y se$eral ?P"




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45CONFIDENTIAL


6se o# ?P" allows the #irm to penetrate new mar0ets &

Access new technologies

Reduce inherent #inancial in$estment ris0s

Ris0s o# using ?P" he same ?P" might 1e pro$iding ser$ices #or

competing #irms *anu#acturer with a good image in the mar0et might

get tied down and their image lin0ed with the ?P"

)a"ge of Services provi.e. by =(L


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46CONFIDENTIAL

)a"ge of Services provi.e. by =(L

*ource: +.,. "fric) # C.*. Cal)in % $ranportation # Ditribution( /&

Comple5ity8C

ustomi4atio

n

Comple5ity 8 Customi4ation

"ow

"ow

!igh

!igh

Physical

Ser$ices

*anagement

Ser$ices

Physical Contract

"ogistics Ser$ices

0 Dedicated contract carrier0 Dedicated warehousing

ntegrated Contract "ogistics

0

ntegrated warehousing 8

transportation

0

ntegrated carrier

management 8 transportation

,asic Ser$ices *anagement contractlogistics Ser$ices

0 Common Carriage0 Pu1lic Warehousing

0 ra##ic *anagement0 Warehouse *anagement

0 mport:e5port *anagement

Emerge"ce of Fort! (arty Logistics


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47CONFIDENTIAL

Emerge"ce of Fort! (arty Logistics(rovi.ers 32lo1ality and Supply Chain ntegrationare increasing the

#unctions o# "ogistics pro$iders& his has lead to the

emergence o# consulting #irms as #ourth party logisticspro$iders

@P"s ha$e the ad$antage o# 1eing in sync with the rapid%

enormous changes in n#ormation echnology&

Consultants as @P"s are used to re$iew 1ids made 1y ?P"s%

and to align the 1usiness processes with the supply chain

.. especially critical in case o# 2lo1al "ogistics&

?P" ha$e a larger% more e##icient networ0 o# transportation 8

networ0ing% 1ut the @P" ha$e optimal com1ination o#

warehouse capa1ilities% transportation ser$ices and technology

Developme"t 7 )ole of >(L


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4&CONFIDENTIAL

Developme"t 7 )ole of >(L

*ource: "nderen Conulting http:11www.ac.com1ervice1cm1cm2who2/pl2paper32b.html

Clientnternal "ogistics

Operations

Client ?P"

@P" Ser$ice

Pro$iders

?P"

,usiness Process

*anagement

0 2reater Functional ntegration0 ,roader Operational Autonomy

nsourcing

Bs.BEs

Outsourcing

BEs.BBs

@P"BBs.

Client

Client

Client

(erforma"ce Criteria i" Global Logistics


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4'CONFIDENTIAL


&ookin e"on) (inancia! in)icators

Cost

nitial Cost

"i#ecycle Cost

/uality

Design /uality

Con#ormance to set production standards



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5(CONFIDENTIAL

Ser$ice

Deli$ery Speed Deli$ery Relia1ility

Fle5i1ility

'ew.Product Fle5i1ility.. "bility to introduce a newproduct fat

Customi4ation ... highly egmented mar)et

Product *i5 Fle5i1ility ... ad4ut production mi5 for demand

fluctuation

Product Ramp.up Fle5i1ility .. e5panion to ma production

for uncertain mar)et


I"ter"atio"al Freig!t For%ar.ers


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51CONFIDENTIAL

I"ter"atio"al Freig!t For%ar.ers

,uy space wholesale and sell it retail

nternational Freight Forwarders handle more

#unctions than the domestic #reight #orwarders= Ser$e as consultant in e5port matters

Ad$ise on acceptance o# letters o# credit&

,oo0ing space on carriers .. *ost o# the mo$ement

is done $ia $essel or air& Arrange #or insurance

Prepare documents li0e e5port declarations and

consular documents

Prepare ,ill o# "ading .. Forwarders e5perienceneeded

Ot!er I"ter"atio"al Tra.i"g Operators


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52CONFIDENTIAL

g p 'O7CCs

Per#orm most 1ut not all o# the #unctions o# an

international #reight #orwarder& Speci#ic #unctionality is trade agreements with carriers 'O7CCs a##iliate with #orwarders to o##er the entire

range o# ser$ices

Customs !ouse ,ro0ers a0e care o# paperwor0 and mo$ement o# goods

through customs

)5port *anagement Companies

Pro$ides the 6S #irm with in#ormation a1out theo$erseas 1uyer

Ad$ises the 6S supplier on re;uirements o# the #oreign

mar0et in issues li0e #oreign la1eling and other speciali4ed

#unctions

Ot!er I"ter"atio"al Tra.i"g Operators


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53CONFIDENTIAL

g p

)5port rading Companies Attempt to com1ine all #acets o# international 1usiness 6sed e5tensi$ely 1y the 9apanese

Shippers Associations rade groups representing shippers o# similar cargo

that 1argain with ocean steamship con#erences as a single entity

)5port Pac0ers

)5pertise is speci#ically in pac0aging #or the e5porter& o allow goods to mo$e through customs easily&

)&g ta0ing into consideration weight restrictions etc o pre$ent the decay:damage o# products&

Natre of t!e (ro.ct


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54CONFIDENTIAL

6ale-a.. !roduct proceing

Services

Tec!"ical Spport

I"ve"tory a"ageme"t

Fi"a"cial Commo.ities vs< specialty items

Deli$ery

Speed

Dependa1ility

Fle5i1ility

(ro.ct Life Cycle a". Distribtio"


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55CONFIDENTIAL

(ro.ct Life Cycle a". Distribtio"

'ROD6CO'

Low Ditribution !ublic Warehoue

2ROW! !ro4ected growth

Current networ) capabilitie Change

*A6R< 6ptimi7ation

D)C"') !ro4ected cot decreae 8eeded networ) cale bac)

(rici"g


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56CONFIDENTIAL

g

FO, prici"g

'69 factory - cutomer pic) up freight

'69 detination - eller pic) up freight

$itle e5change implicationinuranceobolecence

HIH !;IC< L";< =6L>,< I$


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?o"i"g

/uantity discounts

Legal implication - mut prove price difference i 4utified by

lowered logitical cot to deflect

dicrimination charge from mall buyer

GO')

DSA'C) A'D '6*,)R OF C6SO*)RS *PACS COS OF D)"7)R

5 global logistics

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