SCM and Conceptual Framework (Pertemuan 1)
- 2. Kuliah_1_Conceptual Framework of SCM -Senator Nur Bahagi@ Conceptual Framework of Logistics & Supply Chain Management
- 3. Materi Paparan • Logistics • Supply Chain Management
- 4. Logistics
- 5. LOGISTICS ? Disiplin Yang Berkaitan Dengan Pengadaan (Procurement), Penyimpanan ( Storage ) Dan Penghantaran ( Delivery ) Barang Sesuai Dengan Jenis, Jumlah, Waktu, Dan Tempat Yang Dikehendaki Konumen Dari Titik Asal ( Point Of Origin ) Ke Titik Tujuan ( Point Of Destination ) Obyek Aktivitas Misi • Barang 1. Procurement 1. Right Goods (Goods) 2. Storage 2. Right Time 3. Delivery 3. Right Place 1. Aliran Barang ( Flow Of Goods ) 2. Aliran Informasi ( Flow Of Information ) 3. Aliran Uang ( Flow Of Money )
- 6. Basic Logistics Activities • Procurement • Storage • Delivery: -Transportation - Customer Services Linkage Coordination Channel Relationship Structure Management
- 7. Logistics Mission • Right Goods • Right Time • Right Place • Flow of Goods • Flow of Information • Flow of Money
- 8. Performance Indicator • Customer : Services • Provider : Cost • Owner : Return Competitiveness
- 9. Role of Logistics Increase Efficiency and Productivity Reduced Unit Cost Better Services Competitive Advantage
- 10. Logistics Business Components Manufacture & raw materials Export/import activities Primary movement Distribution Centers Secondary movement B2B & B2C distribution After-sales services Integrated IT Systems Integrated Solutions and Services Integrated Management E-commerce Fulfilment Global Freight Management Solutions Design Supply Chain Integrator Warehousing & Distribution Home Delivery Transport Solutions Value Added Services
- 11. Manufacture & raw materials Export/import activities Primary movement Distribution centers Secondary movement B2B & B2C distribution After-sales services Integrated IT Systems Integrated Solutions and Services Integrated Management E- commerce Fulfilment Global Freight Manageme nt Solutions Design Supply Chain Integrator W.housing & Distrbtion Home Delivery Transport Solutions Value Added Services Type of Business Online Logistics Company Freight Forwarding Logistics Consulting 3PL Operator Industrial Estate (Base) Courier Trucking Company Service- Based Company Type Of Company Type Of Services Backbone Support
- 12. Globalization • Dramatic growth in international trade • Expansion of supply chains into global markets • Multi-national manufacturer and retailers are turning to contract service providers • Innovation and re-engineering of SCM is led by contract logistics market
- 13. Logistics Indicators • 100 3PLs control a third of the $270 billion of contract logistics market worldwide • 80% of almost 400 North Amercian and European companies, SMEs to giant coy, already operate on a global scale – Shift of factory jobs to lower cost facilities in Asia • Put new stresses on US domestic transportation systems • China becomes the dominant force in industry – It has made logistics a major national priority
- 14. South Korea Logistics Cost = 16.3% of GDP = 12.5% of Sales Japan Logistics Cost = 10.6% of GDP = 5.9% of Sales USA Logistics Cost = 10.1% of GDP = 9.4% of Sales Indonesia Logistics Cost = ?(estimate 15-20%) 268 T Logistics Indicators
- 15. Trend of Business & Industry 50’ Mass Production 60’ New Product 70’ Low Cost Mangfg 80’ Total Quality Service 90’ Speed & Customer Relationship 00’ Supply Chain Mngt
- 16. International Players • Top ten World operators by size of contract logistics revenues: 1. Exel UK 2. TNT Logistics Netherlands 3. Wincanton/P&O Trans European Netherlands 4. Tibbet & Britten Group U.K. 5. UPS - SCS U.S.A. 6. DPNW Germany 7. Ryder U.S.A. 8. Hayslogistics U.K. 9. Geodis French 10. Penske U.S.A.
- 17. • Multinational/JVC – TNT Logistik (Tira) – Exel Indonesia (MSA) – Davids – Linfox (d/h Mayne) – Fedex (Repex) – Gulf (Samudra Indonesia) – BAX Global – Etc. • National – Pandu Logistik – FINLogistik – Ritra – GoTrans – Wicaksana – BGR – Berdikari – Posindo – Etc. Logistics Players in Indonesia Revenue Industry 2002: USD 90 MILLION Growth of Industry : 35% YoY
- 18. Evolution of Logistics System Partial Approach Integrated Approach Value Chain
- 23. Integrated Logistics System Procurement Physical Distribution Manufacturing Aliran Barang Aliran Informasi s u p p l i e r C u s t o m e r
- 25. Cycle Stage Customer Order Cycle Distribution Cycle Manufacturing Cycle Procurement Cycle Retailer Distributor Customer Manufacturer Supplier
- 26. Customer Order Cycle Customer Arrival Customer Order Fulfillment Customer Order Entry Customer Order Receiving
- 27. Distribution Cycle Retail Order Trigger Retail Order Fulfillment Retail Order Entry Retail Order Receiving
- 29. Procurement Cycle Order Based on Manufacturer’s Prod.. Schedule or Supplier’s Stocking Needs Component Manufacturing Shipping Supplier Production Scheduling Receiving at Manufacturer
- 31. Evolution of the Externalization of Logistics Activities Internal Logistics Client 3 PL Provider Client 4PL Client Client Client Business Process Mgt 3 PL Provider IT Service Provider <80s Insourcing 90s Outsourcing 00s 4 PL
- 33. Introduction to SCM • What is Supply Chain ? 1. Chopra & Meindl (2004) Supply Chain adalah jaringan pihak-pihak yang secara langsung atau tidak langsung terlibat dalam pemenuhan kebutuhan konsumen. 2. Levi et al. (2002) Supply Chain adalah jaringan perusahaan-perusahaan yang terlibat secara langsung dan bersama-sama bekerja dari hulu ke hilir mengelola aliran barang, aliran uang dan aliran informasi untuk menciptakan dan mengantarkan produk ke tangan pemakai akhir (end costumer)
- 34. Introduction to SCM What is Supply Chain Management? ➢ Istilah SCM pertama kali dikemukakan oleh Oliver & Weber pada tahun 1982 ➢ SCM perluasan dan kosep baru dalam memandang manajemen logistik. ➢ Manajemen logistik lebih terfokus pada pengaturan aliran barang dalam suatu perusahaan ➢ SCM mengutamakan tercapainya integrasi aktivitas untuk seluruh mata rantai pengadaan barang mulai dari hulu ke hilir sampai pengiriman pada konsumen akhir.
- 35. Definisi SCM • The Council of Logistic Management “ SCM is the systematic, strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain for the purpose of improving the long term performance of the individual company and the supply chain as a whole • Simchi Levi “ SCM is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements.
- 36. External SC Configuration Suppliers Manufacturers Warehouses and Distribution Centers Retailers internet
- 37. Internal SC Configuration INTRANET INTRANET PRODUCTION PLANNING PROCUREMENT INVENTORY PRODUCTION & MANUFACTURING CUSTOMER SERVICE ACCOUNTING & FINANCE MARKETING & SALES SHIPPING & DISTRIBUTION CUSTOMERS
- 38. A Key Concept: Integration • Systems Approach: – SCM takes into account every facility that has an impact on cost and customer service – The objective of SCM is to be cost-effective across the entire system (total costs: distribution (from supplier to manufacturers, from manufacturers to warehouses, from warehouses to retailers), inventories (raw material, WIP, finished goods), manufacturing costs) – In other courses the focus is on local minimization (inventory costs at a single location, distribution costs from one location to another). Here we should think in terms of the system-wide costs and service levels.
- 39. Integration (continued) • Integrated planning involves: – Functional Integration (of purchasing, manufacturing, transportation, warehousing) – Spatial Integration (across geographically dispersed vendors, facilities, markets) – Hierarchical Planning (coherence and consistency among overlapping supply chain decisions at various levels of planning) • Integrated Planning does not necessarily require centralized control
- 40. What makes SCM difficult? • Global optimization To design and operate a supply chain so that total systemwide costs are minimized, and systemwide service levels are maintained • Uncertainty Such as : Customer demand, travel times, machines & vehicles
- 41. Global Optimization • Facilities in the chain have different, conflicting objectives – Manufacturers need to adjust to customer demand (flexibility) – Suppliers would like to ship larger-steady quantities – Warehouses and distribution centers would like to see smaller batches to reduce inventory • Dynamic nature of the supply chain – Customer demand and supplier capabilities change over time – Relations in the chain evolve over time (highly specific, low volume production through customization)
- 42. Global Optimization (cont.) • The supply chain is a complex network Facilities dispersed over a large geography or all over the globe • Systems variation over time Demand and cost paremeters varying overtime due to the impact of : seasonal fluctuations, trends, advertising & promotions, competitors’ pricing strategy.
- 43. Where is the complexity ? Although successful applications of SCM concepts are widely available they can not be replicated easily to other organizational settings.
- 44. • The supply chain is a complex network (facilities and organizations with different conflicting objectives) • Matching supply and demand (manufacturers have to plan for production levels months before the demand is realized) • System variations over time (seasonal fluctuations, trends, advertising, promotions, competitors’ pricing) • Many SC problems are new (high-tech life cycles-one order opportunity-no historical data) MANAGING UNCERTAINTY
- 45. Supply Chain Management The Management Of Upstream And Downstream Relationship With Supplier And Customers To Deliver Superior Customer Value At Least Cost Linkage Coordination Channel Relationship Structure Management
- 46. Integrated Supply Chain Model Customer Manufacturing Distributor Retailer 2nd Tier Supplier 1st Tier Supplier 2nd Tier Supplier 2nd Tier Supplier 1st Tier Supplier Information & Financial Flow Product & Information Flow
- 47. General Supply Chain Model M A T E R I A L S E N D C U N S U M E R S Supplier Network PROC DISTRI BUTION MANUFAC TURING Information, Product, Services, Financial, and Knowledge Flow Capacity, Information, Core Competency, and Human Resources Constraints Integrated Enterprise Distributive Network
- 48. Supply Chain Suppliers Manufacturing Distributions Procurement Customers Materials Flow Information Flow
- 49. Achieving An Integrated Supply Chain Material Control Production Sales Distribution Purchasing Stage one: Base Line Material Flow Customer Service
- 50. Materials Management Manufacturing Management Distribution Stage two: Functional Integration Material Flow Customer Service Achieving An Integrated Supply Chain
- 51. Materials Management Manufacturing Management Distribution Stage three: Internal Integration Material Flow Customer Service Achieving An Integrated Supply Chain
- 52. Suppliers Internal Supply Chain Customers Stage four: External Integration (Total Supply Chain Management) Material Flow Customer Service Achieving An Integrated Supply Chain
- 53. Supply Chain PT SMART Tbk Struktur Proses bisnis Sistem Manajemen Anggota Dimensi Keterkaitan CRM Demand Management Order fulfillment Operation Inventory Distribusi & Transport Planning Control Work flow Organization Communication SOP System
- 54. Supply Chain Decision Making Framework Corporate Strategy Competitive Strategy Supply Chain Strategy Inventory Transport W’housing Information Supply Chain Structure
- 55. Supply Chain Improvement Benefits Delivery Performance Inventory Reduction Fulfillment Cycle Time Forecast Accuracy Overall Productivity Lower Supply Chain Costs Fills Rates Improvement Capacity Realizations 16% – 28% Improvement 25% - 60% Improvement 30% - 50% Improvement 25% - 80% Improvement 10% - 16% Improvement 25% - 60% Improvement 20% - 30% Improvement 10% - 20% Improvement
- 56. Scope of Supply Chain Strategy Inventory Strategy •Inventory levels •Deployments of inventories •Control methods Transport Strategy •Modes of transport •Carrier routing/ Scheduling •Shipment size/ consolidation Location Strategy •Number, size, and location of facilities •Assignment of stocking points of sourcing points. •Private/public warehousing Customer Service Goals
- 57. The Impact of Supply Chain and Customer Service on Marketing Consumer Franchise Supply Chain Efficiency Marketing Effectiveness Customer Franchise X X = •Brand values •Corporate Image •Availability •Customer service •Partnershi p •Quick response •Flexibility •Reduced asset base •Low cost supplier •Market share •Customer retention •Superior ROI
- 58. The Cost / Benefit of Service Service Level Costs, revenue & profit contribution 0 100% Maximize Profit Costs Revenu e
- 59. Supply Chain Impact on ROI Inventory Account Receivable + Cash + Fixed Assets + Sales Revenue Costs − Profit Capital Employed Return On Investment ÷ Customer Service SCM/Logistics Efficiency Asset Deployment & Utilization