Logistics Excellence

Imperative & Instruments & Tools

Sompong Sirisoponsilp 6 November 2013

Challenges: Competing Priorities

Cost

Green

Safety

Quality

Reliability

Responsiveness

A Critical Imperative for Logistics Excellence

the proper positioning or state of adjustment of parts (as of a mechanical or electronic device) in relation to each other an arrangement of groups or forces in relation to one another www.merriam-webster.com

Alignment 1 Ali i corporate Aligning t strategy t t with ith organizational i ti l units it

Corporate strategy Production strategy Logistics strategy Marketing strategy

Alignment 2

Ali i logistics Aligning l i ti strategy t t with ith execution ti

Logistics strategy

Processes

Resources

Alignment3 Aligningflows
Suppliers

Source
Prod duct/Se erviceF Flow In nformat tionFlo ow
6

Make

Plants

Deliver

Distribution Centers

Customers

WorkFlow

Alignment 4 Ali i KPI Aligning KPIs th throughout h t th the organization i ti

Vertically y & horizontally y integrated g p performance measurements

Corporate
Department1 Department2 Department3 Department4

Individuals

Individuals

Individuals

Individuals

Alignment 5 Aligning with other organizations

Suppliers

Company

Customers

Management Instruments & Tools

Visibility & Event management Integrated planning system Business process integration T l t development Talent d l t and d management t Leadership

Visibility & Event Management

End-to-end visibility across all tiers in the supply chain Ability to proactively and timely sense-reactsense react respond to events
Need to optimize the numbers of trading partners, suppliers, carriers, LSPs Need to reduce, proactively allocate, or manage inventory held at various stages in the supply chain Business mandate to reduce supply chain execution costs Increased stakeholder and customer demand for accuray and timeliness of inbound/outbound shipment events Need to improve supply chain operational spped and/or accuracy Growing global operaitons/complexitiy

10

15

20

25

30

35

40

45

50

Percent of respondents n = 149

Top Pressures to Improve Supply Chain Visibility Source: Aberdeen Group, May 2013

Integrated Planning System

Decision support system (DSS)
Operational Tactical Strategic

Asset optimization Making trade trade-off off Effective mechanism for coordinating activities and investments ii.e. e Sales & Operations Planning (S&OP)

Business Process Integration

From Task-oriented management to Process-oriented management A number of frameworks available
SCOR model Lean Six Sigma Theory of Constraints (TOC)

Talent Development & Management

Globalization/AEC
Strategic Mgt.
W ld Cl World-Class Supply S l Chain Ch i Strategy St t Value Creation and Realization

Sustainability

Supply Chain Planning

Specialty Areas

Product Development

Procurement and Exchanges

Manufacturing

Transportation

Warehousing

Service Management and Customer Support

Inventory Management

Integration Mgt.

Supply Chain Analysis Tools and Techniques Supply Chain Relation Management Tools

IT Innovation
Adapted From The Accenture Supply Chain Academy

Risks/Crises

Building the Right Supply Chain Performance Skills, (7/26/2003) Ascet Volume 5, By Dwight Dowdell, Accenture

Leadership
Creating Logistics Excellence involves 40-50% organizational (or People) change management 30-40% process design 10-20% 10 20% technology deployment
People

Process

Technology