LSCM-1-2015 #2 Introduction To LSCM

1
I t d ti
Introduction
to
LogisticsandSupplyChain
Management
Class#2
Vithaya Suharitdamrong,Ph.D.
12015
15Aug2015
g
Information
Flow
Move
Input
Do
(Execute)
Move
Do
(Execute)
Move
Do
(Execute)
Move
Do
(Execute)
perfoormance
Think
(Pl i )
(Planning)
execution
Think
(Pl i )
(Planning)
perfoormance
Think
(Pl i )
(Planning)
execution
Think
(Pl i )
(Planning)
perfoormance
Think
(Pl i )
(Planning)
execution
End
What values are logistics and supply chain for?

We have to think as the whole of the value. Thinking in terms of process creating the value
perfoormance
Management
Think in terms of End to End (E2E) in order to create Value
perfoormance
Control
execution
In tthis framewo
ork, this is Lo
ogistics and S
Supply Chain
n Management
Execute
Logistics and Supply Chain of Value
Improve
execution
Plan
End
Value
Move
Do
(Execute)
Output
Good
Fast
p
Cheap
Better
Faster
p
Cheaper
Management
Supply Chain Processes are functions in

creating values according to the
requirement of each value
value.
Flow of Values
(Logistics)
The target is the end point, not just finishing any

functions of logistics process. It depends on the
values at the end point of logistics and supply
chain management.
Have to win the game of competition, not just scoring points. Must complete the process, not just steps.
My Lecture#2
15 Aug 2015
Value Chain and Supply Chain

ValueChain=Processof(Make
l
h i
f ( k +Move))
Value Creation Process of a glass
Value Chain
of a glass
Execution of
value creating
process
SSandd Mines
Mi
(Make)
SSandd Trucks
T k
(Move)
Glass Shops Values of

Glass FFactory
Gl
t
Glass
l Trucks
k
(Move)
(Move & Store) a glass
(Make)
Com
mpetitions beetween supplly chains
V l Creators
Value
C
off glass
l
workk collaboratively
ll b
i l to create a glass.
l
Glass Supply
Chain No.1
Sand Mine
Comp. A
Sand Trucks
p
Comp.B
Glass Factory
Comp.C
Glass Trucks
Comp.D
p
Glass Supply
Chain No.2
Sand Mine
Comp. P
Sand Trucks
Comp.Q
Glass Factory
Comp.R
Glass Trucks
Comp.S
Glass Supply
Chain No.3
Sand Mine
Comp. K
Sand Trucks
Comp.L
Glass Factory
Comp.M
Glass Trucks
Comp.N
SupplyChain=ProcessOwnersof[Make(Manufacturing)+ Move(Logistics)]
Glass Shops Glass

No.1
Comp.E
Better
Faster
Cheaper
Glass Shops Glass

Comp.T
No.2
Better
Faster
Cheaper
Glass Shops Glass

No.3
Comp.O
Better
Faster
Cheaper
My Lecture#2
15 Aug 2015
SupplyChainandValueChain
ValueChainThinking
ProcessDesign(Blueprint)
Determine processes or activities in value creation
Improvement
or Re-design
Value Chain
Value Chain
Value Chain
SupplyChainThinking
Think Design Analyze values until

complete what customers want but
it cannot be used It is just a design
off the
th processes.
We need to take the design of Value

Chain to value creators in supply chains
to use resources to create values
according to design of value chain.
chain
Changed
Customer
Requirements
ProcessExecution
SupplyChainPlan(Collaboration)
Orders
I f
InformationFlow(Communication)
i Fl (C
i i )
Suppliers
l
f l
(
)
FlowofValues(Logistics):Connection
Better
Faster
Cheaper
InternalSupplyChain(SourcetoDelivery)
A Supply Chain is a network of value creators who execute the process
according to value chain in order to respond to customer requirements
Product(External)SupplyChain(upstreamtodownstream)
My Lecture#2
15 Aug 2015
Reductionism and Holism
Organs
Human
Integrated
Bicycle
Parts
Integrated
Organizations
Departments
Integrated
My Lecture#2
15 Aug 2015
CSSMPsDefinitionofLogistics
LogisticsManagement BoundariesandRelationships
Logisticsmanagementactivitiestypicallyincludeinboundandoutbound
transportation management, fleet management, warehousing, materials handling,
transportationmanagement,fleetmanagement,warehousing,materialshandling,
orderfulfillment,logisticsnetworkdesign,inventorymanagement,supply/demand
planning,andmanagementofthirdpartylogisticsservicesproviders.Tovarying
degrees the logistics function also includes sourcing and procurement production
degrees,thelogisticsfunctionalsoincludessourcingandprocurement,production
planningandscheduling,packagingandassembly,andcustomerservice.Itis
involvedinalllevelsofplanningandexecutionstrategic,operationalandtactical.
L i ti
Logisticsmanagementisanintegratingfunction,whichcoordinatesandoptimizes
ti
i t
ti f ti
hi h
di t
d ti i
alllogisticsactivities,aswellasintegrateslogisticsactivitieswithotherfunctions
includingmarketing,salesmanufacturing,finance,andinformationtechnology
This definition considers logistics as a singular which means unity
So, I understand that logistics cannot have many meanings such as transportation,
distribution, locations etc. On the other hand, those activities can be related to logistics.
My Lecture#2
15 Aug 2015
Logistics as an integrating function
Values from each musical

muscial instruments
Values from each musical instruments

Values from each musical instruments
LogisticsManagement=AnintegratingFunction
Supply Chain Management is an act of

planning together. Which songs, Which notes
Logistics Management is to manage

or to orchestrate) all musical
instruments to play in harmonize.
My Lecture#2
15 Aug 2015
ThePowerofTwobecomeOne
DesignChainandValueChain
SupplyChain
ValueCreatorandDeliverer
Value Designer
ValueDesigner
Source,BuildandDistributeandSell
Thi k D i
Think,DesignandDevelop
dD l
My Lecture#2
15 Aug 2015
What is a model?
A ppicture is a model of the real world and it is not real.

People create a model by
The reality of the world
building a mockup (painting)
from the realityy and theyy will
use the model in
communication their thoughts
and experimenting their
thoughts without real
implementation. A model is
used for a test of decision
making.
This painting is a model for communicating and making decisions
My Lecture#2
15 Aug 2015
Logistics
Model
Mode
Distance
Quality
Time
Cost
Transportation
Model
Capacity
Availability
Qualityy
Q
Time
Cost
Warehouse
Model
Volume
Availability
Performance
Communication
Executioon
Volume
Availability
Executioon
Performaance
Executiion
Plan
Plan
Mode
Distance Connection Capacity
Availability
Quality
Qualityy
Q
Time
Time
Cost
Cost
Transportation
Retail
Model
Model
Activities using
information
flow to support
activities of
logistics and
planning.
Service LLevel
Operationall
Model
Informaation
Model
Plan
Capacity
Availability
Qualityy
Q
Time
Cost
Factory
Model
Activities of planning together by

using information flow in order to
create logistics activities
Logistics Planning
Collaboration
Performannce
D
Decision
Model
Logistics Model
10
Customer
Demand
Better
F t
Faster
Cheaper
Logistics
Alogisticsmodelnormallyconsistsofthreesubmodel,DecisionModel(Collaboration),Information
Model(Communication)andOperationalModel(Connection).Themodelsmustbelinkedtocustomer
demand Logistics Model is foc sing on the linkages from decision model to information model and to
demand.LogisticsModelisfocusingonthelinkagesfromdecisionmodeltoinformationmodelandto
operationalmodelineachfunctionsoflogisticalprocessesuntilcustomersgetproductsandservices.
My Lecture#2
15 Aug 2015
11
Logistics Model for International Trades

ExporterslogisticsModel
International
Domestic
Custom
Port Transport W/H

Service
Mfg
W/H
Transport
Mfg Loggistics
Serviices
International
Transport
International
Port Custom
Service
International
Transport
Logistics Service Providers

LSPsLogisticsModel
My Lecture#2
15 Aug 2015
12
Logistics Model for Exporter

ExporterslogisticsModel
International
International
Domestic
Logistics Process
International
Transport
Custom
Port Transport W/H

Service
A logistics model is built to

represent the details of work and
resources in execution logistical
process from factory to customers
hands. The elements of decisions
are iin the
th ffollowings.
ll i
Mfg
W/H
Transport
Port Custom
Service
International
Transport
Customer location
Service level requirements
Order size and frequency Factory and supplier locations
Transport
Transport costs
Ports of entry for imported products
Transport vehicle types and many more key variables
Transport modes
Warehouse
Warehouse (Distribution Centre) size
size, Elements of Model
location, resources, costs
My Lecture#2
15 Aug 2015
13
Logistics Model for LSPs

I t ti l
International
I t ti l
International
Domestic
Port Transport W/H

Service
Mfg
W/H
A logistics model is built to represent the details of works and

resources in execution logistical process of LSPs from factory
(LSPs customers) to customers hands (LSPs customers) .
The elements of decisions are in the followings.
SSupplierrs
Customer location
S i level
Service
l l requirements
i
t
Order size and frequency Factory and supplier locations
Transport costs
Ports of entry for imported
Transport
Transport vehicle types products
Transport modes
and many more key variables
Warehouse (Distribution Centre) size,
location,, resources,, costs
Elements of a model
Transport Port
Service
Custom International
Transport
Port
Servicee
Custom
Transpoort
Servicees
International
Transport
Logistics
i i SService
i PProviders
id
Loogistics Model ffor LSPss
Logistics Process (outsourced)
My Lecture#2
15 Aug 2015
14
LogisticsEngineeringvs LogisticsManagement
Management istheonewhooperatethesystembyhandlingthe
customerordersandsupplyingtheproductsandservicesby
deliveringthemtocustomers
orders
Manufacturing(Planning)
Plan
Procurement
Plan
Manufacturing
f
make
make
R/MSupplier
End
Logistics(Planning)
Plan
Warehouse
move
Manufacturing
Plants
Warehouse
services
Plan
Transport
Plan
Retail
move
move
Transport
services
Retail
Shops
Logistics
Point
End
Engineering designsandbuildsasystem(PlanningandExecuting)andits
elements,logisticsandmanufacturing,tobeoperatedasasupplychain
andlogisticssystemofacompanybuttheyarenottheoneswhooperate
thesystem.Theyimproveandredesignthesystemtohandlechanges.
EndCusto
omers
Plannin
ng
System
m
Execu
ution
Systtem
SystemsP
Perspective
e
SupplyChainPlanning
My Lecture#2
15 Aug 2015
My Lecture#2
15 Aug 2015
Source:RichardE.Crandaall,WilliamCraandallNewMeethodsofCompetinginthe
GlobalMarkketplace CriticcalSuccessFacctorsfromServviceandManu
ufacturing
(ResourceM
Management)2008
The evolution of a supply chain from unaligned to aligned
15
16
Process Management
Pl
Plan
Procurement
Pl
Plan
Manufacturing
move
move
make
make
Procurement
Manufacturing
Pl
Plan
Warehouse
Pl
Plan
Transport
Pl
Plan
Retail
move
move
move
move
move
move
Warehouse
Transport
Retail
End
Products
&Services
ITfor
execution
ITfor
Performance
Measurement
Control
Performance
Benchmark
andAnalysis
Improve
SSupply
l
=
Demand?
ProcessExecution
Execution
End
(Manufacturing&LogisticsActivities)
ProcessMeasurement(Control)
Pro
ocessImprovementProjject
MasterPlanning
ITfor
Collaborative
Planning
ITfor
Operational
Planning
RePlan:ProcessImprovementor
RedesignProcess
Customerrs
PrrocessM
Manage
ement
Plan
Plan
Process Improvement
ProcessImprovement
Company(internal)Process
Management
Process
(Re)Plan
Execution
Management
Improve
Control
My Lecture#2
15 Aug 2015
17
Logistics, Logistical and Logistically

Logistics (adj) :
is the state of supply perfectly meet Demand at the end of
process, so customers (users) can get the values that they
demand. Logistics Management is the single function to integrate
activities of moving and storing values in the whole process in
order to achieve the objectives of the process.
process
LogisticsManagementasanIntegratingFunction
LogisticsPlanning
JIT
Supply=Demand
Products
&Services
Store
Make
Move
Make
Move
Make
LogisticsActivities
Make
ProcessMetrics
Process
Metrics
Good
Fast
(IntegratedFunctions)
Cheap
EndtoEndProcess
is characteristics of how the process is executed or how the actions

of work steps in the process are operated. Please note that
logistics is how supply meet demand or how customers would
receive the products or services. Moreover, to act or to operate is
concerned about how the single plan is collaboratively created and
sharing information for a seamless connectivity of value flow in the
process.
is attributes of process elements that support the linkages of the

perfect fit between supply and demand and delivering values from one
step to another step seamlessly
seamlessly. Moreover there are information
sharing between steps in the process in order to achieve the objective
of the process, the logistics at the end of process.
Store
Move
Logistically (adv) :
Logistical (adj) :
Logistics
(Status)
Think and plan logistically

and link together to create logistics
Logistics
(status)
LogisticalPlanning
JIT
Supply=Demand
Products
&Services
Store
Store
Move
Make
Move
Make
Move
Make
Logistical Activities
Make
ProcessMetrics
Process
Metrics
Good
Fast
Cheap
Logistics Activities with linkage and seamless attributes to create logistics

Execute or Flow Logistically
EndtoEndProcess
My Lecture#2
15 Aug 2015
If you see the Optimal

(Supply meet Demand) or
the fitness, just in time, this
is Logistics
SupplyChainPlanning
g(
g)
System
msPerrspectiive
18
Logistics,Logistical,Logistically
ofCompanySupplyChain
Plan
Procurement
Plan
Manufacturing
move
make
Procurement
Manufacturing
E d
End
Plan
Warehouse
Logisticsof
Manufacturing
Logisticsof
Warehouse
Retail
X
LP.T
Logisticsof
Transport
Supply=Demand?
Supply
emand?
Logistics
Point
move
Transport
X
LP.W
Supply=Demand?
Supply
emand?
Plan
Retail
move
Warehouse
X
LP.M
Supply=Demand?
Supply
emand?
Plan
Transport
move
X
LP.P
Logisticsof
Procurement
Logistics(Planning)
g
(
g)
Logisticsof
Retail
X
d
End
LP.E2E
LP.R
Supply=Demand?
Supply
emand? Supply
Supply=Demand?
emand?
Cu
ustomers
If you see planning and

collaboration or sharing risks
and rewards with common
goals, this is Logistically
Logisticsof
E2E (EndtoEnd)
Supprocess
Supprocess
Supprocess
Supprocess
Supprocess Supply=Demand?
Process(EndtoEnd:E2E)
LP.P=LogisticspointofProcurement
LP.M==LogisticspointofManufacturing
og s cs po o a u ac u g
LP.W==LogisticspointofWarehouse
LP.T==LogisticspointofTransport
LP.R=LogisticspointofRetail
LP.E2E=LogisticspointofE2E (EndtoEnd)
Company(internal)SupplyChain
If you see the status in the process (E2E) optimal (Supply meet
Demand) or fitted, so the process (E2E) is Logistical.
My Lecture#2
15 Aug 2015
19
TransportandLogistics
g
y or viewingg integration
g
of End to End Process byy
Transport Logistics Look at End to End ((E2E)) logistically
focusing on transport as collaborative plan of E2E in order to respond customer needs
Logistics(Planning)
Mi
Main
move
Modifier
The objective is to manage
E2E which determine a
transport plan to respond
Logistics of E2E
make
move
Logistics
Point
move
x Customers
Transport
End
Logistics(Execution)
End
Supply=Demand
(L i i A i i i )
(LogisticsActivities)
Logistics Transport Look at execution process of transport logistically or being integrated by logistically sharing
transport information to collaborative plan in order to respond to customers needs
Logistics(Planning)
Main
Modifier
The objective is to
manage transport
execution according to
logistics plan of E2E
move
make
move
Transport
End
End
Logistics
Point
move
x Customers
End
End
Supply=Demand
My Lecture#2
15 Aug 2015
20
WarehouseandLogistics
Look at End to End ((E2E)) logistically

g
y or viewingg integration
g
of End to End Process byy
focusing on warehouse as collaborative plan of E2E in order to respond customer needs
Warehouse Logistics
Main
Logistics(Planning)
og st cs ( a
g)
Modifier
move
warehouse plan to
respond Logistics of E2E
make
Storage
(move)
Logistics
Point
move
x Customers
Warehouse
End
End
Supply=Demand
SupplyChain
Logistics Warehouse
Look at execution process of Warehouse logistically or being integrated by logistically

sharing warehouse information to collaborative plan in order to respond to customers needs
Logistics(Planning)
Main
Modifier
move
The objective is to
manage warehouse
g to
execution according
make
Storage
g
(move)
Warehouse
End
Logistics (Execution)
SupplyChain
Logistics
Point
move
x Customers
End
Supply Demand
Supply=Demand
My Lecture#2
15 Aug 2015
21
ProcurementandLogistics
Procurement Logistics Look at End to End (E2E) logistically or viewing integration of End to End Process by
focusing on procurement as collaborative plan of E2E in order to respond customer needs
Logistics(Planning)
Main
Logistics
Point
Modifier
move
procurement plan to
make
Storage
(move)
move
x Customers
Procurement
End
End
Supply=Demand
SupplyChain
Logistics Procurement Look at execution process of procurement logistically or being integrated by logistically
Main
sharing procurement information to collaborative plan in order to respond to customers

needs
Logistics(Planning)
Logistics
Point
Modifier
move
The objective is to
manage procurement
g to
execution according
make
Storage
(move)
Procurement
End
SupplyChain
move
x Customers
End
Supply Demand
Supply=Demand
My Lecture#2
15 Aug 2015
22
ManufacturingandLogistics
Manufacturing Logistics Look at End to End (E2E) logistically or viewing integration of End to End Process by
focusing on manufacturing as collaborative plan of E2E in order to respond customer
needs
Logistics(Planning)
Main
Logistics
Point
Modifier
move
Manufacturing plan to
make
Storage
(move)
move
x Customers
Manufacturing
End
End
Supply=Demand
Logistics Manufacturing Look at execution process of Manufacturing logistically or being integrated by logistically
Main
sharing manufacturing information to collaborative plan in order to respond to customers

needs
Logistics(Planning)
Logistics
Point
Modifier
move
The objective is to
manage manufacturing
g to
execution according
make
Storage
(move)
move
Manufacturing
End
x Customers
End
Supply Demand
Supply=Demand
My Lecture#2
15 Aug 2015
23
DistributionandLogistics
Distribution Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by
focusing on distribution as collaborative plan of E2E in order to respond customer needs
Logistics(Planning)
Main
Logistics
Point
Modifier
move
distribution plan to
make
move
move
x Customers
Distribution
End
End
Supply=Demand
Logistics Distribution Look at execution process of procurement logistically or being integrated by logistically
sharing distribution information to collaborative plan in order to respond to customers needs
Logistics(Planning)
Main
Logistics
Point
Modifier
move
The objective is to
manage distribution
g to
execution according
make
move
move
Distribution
End
x Customers
End
Supply Demand
Supply=Demand
My Lecture#2
15 Aug 2015
24
RetailandLogistics
Retail Logistics
Look at End to End (E2E) logistically or viewing integration of End to End Process by
focusing on retail as collaborative plan of E2E in order to respond customer needs
Logistics(Planning)
Main
Logistics
Point
Modifier
move
retail plan to respond
Logistics of E2E
make
move
move
Retail
End
x Customers
End
Supply=Demand
Logistics Retail
Look at execution process of procurement logistically or being integrated by logistically

sharing retail information to collaborative plan in order to respond to customers needs
Logistics(Planning)
Main
Logistics
Point
Modifier
move
The objective is to
manage retail execution
g to logistics
g
according
plan of E2E
make
move
move
Retail
End
x Customers
End
Supply Demand
Supply=Demand
My Lecture#2
15 Aug 2015
25
LogisticsandLogisticsManagement
Logistics(Planning)
Pl
Plan
Procurement
Pl
Plan
Manufacturing
move
move
make
make
Procurement
Manufacturing
ITfor
Operational
Planning
End
ITfor
execution
X
LP.P
Execution
ITfor
Performance
Measurement
Control
Performance
Benchmark
andAnalysis
Improve
X
LP.M
Pl
Plan
Warehouse
Pl
Plan
Transport
Pl
Plan
Retail
move
move
move
move
move
move
Warehouse
Transport
X
LP.W
X
LP.T
Retail
Logistics
Point
X End
LP.E2E
LP.R
SSupply
l
=
Demand?
LogisticsMeasurement(Control)
LoggisticsProjecctImprovem
ment
ITfor
Collaborative
Planning
RePlan:ProcessImprovementor
RedesignProcess
Customerss
Lo
ogisticsManaggement
Plan
Plan
Logistics Improvement
LogisticsImprovement
Logistics
Management
Process
(Re)Plan
Execution
Logistics
Improve
Control
My Lecture#2
15 Aug 2015
26
HolisticViewofLogistics
Pl
Plan
Procurement
Pl
Plan
Manufacturing
move
move
make
make
Procurement
Manufacturing
End
move
move
X
LP.P
Logisticsof
Procurement
Pl
Plan
Warehouse
Warehouse
X
LP.M
Logisticsof
Manufacturing
Supply=Demand?
Pl
Plan
Transport
Pl
Plan
Retail
move
move
move
move
Transport
X
LP.W
Logisticsof
Warehouse
Supply=Demand?
X
LP.T
Logisticsof
Transport
Supply=Demand?
Retail
Logisticsof
Retail
Logistics
Point
X
End
LP.E2E
LP.R
Supply=Demand? Supply=Demand?
Customerss
SysstemsPerspeective
Logistics(Planning)
Logisticsof
E2E (EndtoEnd)
Supprocess
Supprocess
Supprocess
Supprocess
Supprocess
Supply=Demand?
The result at the end of p
process is created from integration
g
of
process elements or its systemic structure of sup processes
which the whole is more than sum of its parts
My Lecture#2
15 Aug 2015
27
HolisticViewofProductSupplyChain
S
SupplyChainPlanning
l Ch i l
i
End
Plan
Procurement
Plan
Manufacturing
make
R/MSupplier
make
Company1
Logisticsof
Company1
X
LP C1
LP.C1
Plan
Warehouse
move
Plan
Transport
Plan
Retail
Logistics
Point
move
move
Retail
Shops
Warehouse
Transport
services
services
X
X
Company3
Company4
LP.C2
LP
C2
LP C3
LP.C3
LP C4
LSP
LSP LP.C4
Logisticsof
Logisticsof
Logisticsof
I Company3
I Company4
I
Company2
Manufacturing
Plants
X
Company2
Supply=Demand?
Companyprocess
Logistics(Planning)
Supply=Demand?
Companyprocess
Supply=Demand?
Companyprocess
X
End
Company5
LP.E2E
LP C5
LP.C5
Logisticsof
Company5
Companyprocess
EndCustomers
SysttemsPerspecctive
Logisticsof
E2E (EndtoEnd)
(End to End)
Companyprocess
Supply=Demand?
Upstream
LP.C1=LogisticspointofR/MSupplier
LP.C2=LogisticspointofManufacturingPlants
LP.C3=LogisticspointofWarehouseServices
LP.C4=LogisticspointofTransportServices
LP.C5=LogisticspointofRetailShops
LP.C6=LogisticspointofE2E (ProductSupplyChain)
Product Process (End to End : E2E)

ProductProcess(EndtoEnd:E2E)
Downstream
Product(external)SupplyChain
My Lecture#2
15 Aug 2015
28
HolisticViewofCompanySupplyChain
S
SupplyChainPlanning
l Ch i l
i
Plan
Procurement
Plan
Manufacturing
move
make
Procurement
Manufacturing
End
End
X
LP.P
Logisticsof
Procurement
Logistics(Planning)
Plan
Warehouse
Warehouse
Supply=Demand?
move
Transport
X
LP.W
Logisticsof
Warehouse
Supply=Demand?
Plan
Retail
move
move
X
LP.M
Logisticsof
Manufacturing
Plan
Transport
X
LP.T
Logisticsof
Transport
Supply=Demand?
Logistics
Point
Retail
Logisticsof
Retail
X
End
End
LP.E2E
LP.R
Customers
C
SystemsPerspecttive
Logisticsof
E2E (EndtoEnd)
Supprocess
Supprocess
Supprocess
Supprocess
Supprocess
Supply=Demand?
LP W
L i i
i
fW h
p y(
) pp y
My Lecture#2
15 Aug 2015
Centralpositionoflogisticsintheenterprise
between markets and production
betweenmarketsandproduction
29
Seamlessly, perfect fit, Just in Time with

customer demand
Logistics is not just functions in
execution process but it is an
function for integration.
g
x
x x
LogisticsFlow
Source:MichaelSchenkSiegfriedWirthEgonMuller
FactoryPlanningManualSituationDrivenProductionFacilityPlanning 2010
My Lecture#2
15 Aug 2015
30
LogisticsandSupplyChainThinking
End
to
End
Plann
ning
Logisttics
Decisions
Planning
End
End
End
End
End
End
End
LogisticsFFlow
End
End
Loggistics
Perfo
ormance
Planning
Planning
L
Logistics
Infformation
LoggisticsManagementP
Process
LogisticsPlanning(Collaboration)
End End
My Lecture#2
15 Aug 2015
Quality
(Nodamages)
End End
MyNotesof
Dr.Vithaya
Dr.
Vithaya
3Jun
3
Jun15
15
End End
End
End
Quality
(Nodamages)
End End
End
Quality
(Nodamages)
31
Asupplychainplanningmatrix
Strategic
Tactical
Operational
Procurement
Production
Distribution
Source:Knolmayer,G.F.,Mertens,P.,AlexanderZeier,A.andDickersbach,J.T.SupplyChainManagement
BasedonSAPSystems:ArchitectureandPlanningProcesses2009
Sales
My Lecture#2
15 Aug 2015
32
Supply Chain Thinking
SupplyChainThinking
Collaboration
(Co Planning)
(CoPlanning)
S&OPor
SupplierRelationship
Communication
(InformationSharing)
Data&IT
My Lecture#2
15 Aug 2015
33
3Cin SupplyChainModel
DecisionFlows
Plan
C ll b
Collaboration
i
Execute
Measure
Measure
Execute
Communication
Execute
M
Measure
Connection
Measure
Execute
Actions
(Re) Plan
(Re)Plan
Execution
SupplyChain
Improve
Control
My Lecture#2
15 Aug 2015
Performance:3KPIs Effectiveness,Efficiency,Changeability 34
Changeability
Activities,
Process
Systems
If customers
change their
requirements, we
have to change
the processes.
If the utilization is in control, its ok or

improve process for better utilization.
Analysis
Me
easuremen
nt
Measure KPI, check with the goal.
M
Measurement
Change
Analysis
Measurementt
If reach the goal, its ok or

set the new goal higher. If
not reach the goal,
goal
improve the process.
Products&
Services
Customers
Output
Measure KPI, then

check the target of
resource utilization.
Analysis
My Lecture#2
15 Aug 2015
35
Scopelevelsofsupplychains
Supply Chain Professionals must holistically look at supply chain
SupplyChainProfessionalsmustholisticallylookatsupplychain.
Collaborations
Collaborations
Collaborations
Collaborations
EndtoEnd
WorkingasindividualfunctionswithinsupplychainisnotSupplyChainProfessional.
SupplyChainProfessionalmustdefinetheboundaryofsupplychainasEnd
toEndProcessandworkasprocessmanagement.
E dP
d
k
My Lecture#2
15 Aug 2015
36
RememberSupplyChainisallaboutTeamworkfrom
pp y
EndtoEndandLeadership,not justindividual
functions like transportation
functionsliketransportation
orwarehousinginthe
company.
company
My Lecture#2
15 Aug 2015
Dr.Vithayas PerspectiveonLogisticsandSCM(JellyfishModel)
Upstream
p
37
Downstream
EndtoEnd
SoftSide
ProductSupplyChainManagement
Company
SupplyChain
Management
Plan
Plan
Plan
Plan
Source
(move)
Make
Deliver
(Move)
Transport
(Move)
Execution
Execution
Execution
Execution
FlowofValues:Logistics
FlowofValues
EndtoEnd
EndtoEnd
Logistics Flow
Company
SupplyChainManagement
Company
Plan
Plan
Plan
Plan
Plan
Source
(Move)
Execution
Make
Deliver
D
li
(Move)
Execution
SSource
(Move)
Execution
Deliver
D
li
(Move)
Execution
Execution
FlowofValues:logistics
EndtoEnd
FlowofValues
Better
Faster
Cheaper
Customers
C
HardSide
H
Company
EndtoEnd
My Lecture#2
15 Aug 2015
Customers
Logistics
L
i ti is
i h
how
customers
receive values at
the right time and
the right place
with
ith right
i ht costt
To make flowss of values to ccustomers

ineffeectively and ineefficiently at no
ot the right timee
an
nd not the right place with no
ot right cost.
Logistics
Activities
Activvities of physsical moving

g and storing..
NoInform
N
mationSSharing
(Uncollaborative Plan
nning)
Planning
To make flowss of values to

T
o customers effectively aand
efficiiently at the rright time and the right pllace with righ
ht cost
Logisstics Activitties
Inform
mationSharing
(Collabo
orativePlaanning)
SupplyyChainPlaanning
Logistics and Not Logistics how are they related to Supply Chain
38
No Logistics Process
NoLogisticsProcess
Activities
Customers
No Logistics
is how
customers
receive values
at not the
right time and
not the right
place with not
right cost
My Lecture#2 15 Aug 2015
39
From Strategic to Tactical to Operational
High
Plan
Execute
Vision
Improve
Control
Management process
Wide
Plan
Execute
Control
Plan
Long
Execute Win IImprove

Uncertainty
Control
Plan
Time
Execute
Low
Inv
Short
Pl
Plan
Control
Plan
I
Improve
Control
Execute
Improve
Plan
Trans
Improve
TACTICAL
Control
Plan
Pl
Plan
Execute Source Execute Make ExecuteDeliverImprove

Improve
Improve
Narrow
STRATEGIC
Execute
Plan
Control
Scope
Improve
Control
Control
Execute
Improve
Control
OPERATIONAL
My Lecture#2
15 Aug 2015
40
PyramidalreferenceframeworkforSupplyChainManagement
Customers
LogisticsFlow
ReverseLogistics
Source:Knolmayer,G.F.,Mertens,P.,AlexanderZeier,A.andDickersbach,J.T.SupplyChainManagement
BasedonSAPSystems:ArchitectureandPlanningProcesses2009
My Lecture#2
15 Aug 2015
ModelingLevelsofAbstraction
Theory
Abstract
Practices
Concrete
Mostly, we focus at concrete level which we can consume and utilize, and ignore
thinking or abstraction which is the origin of things or concrete that we consume.
41
My Lecture#2
15 Aug 2015
42
CreatingSupplyChainRoadmap
(Guideline)
YourCompanyValues
CustomerValues
GSCF
48DecisionsofLogissticsNetworrk
SCOR
SCORand
dGSCFonSC
CMProcess
100QuestionsforStrategicSupp
plyChainmanaagement
Question #1
Question#1
48Decision
Question#100
SupplyChainRoadmap
My Lecture#2
15 Aug 2015

LSCM-1-2015 #2 Introduction To LSCM

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LSCM-1-2015 #2 Introduction To LSCM

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1

What values are logistics and supply chain for?

Think in terms of End to End (E2E) in order to create Value

Logistics and Supply Chain of Value

Supply Chain Processes are functions in

The target is the end point, not just finishing any

Value Chain and Supply Chain

Glass Shops Values of

Glass Shops Glass

Glass Shops Glass

Glass Shops Glass

Determine processes or activities in value creation

Think Design Analyze values until

We need to take the design of Value

Reductionism and Holism

Logistics as an integrating function

Values from each musical

Values from each musical instruments

Supply Chain Management is an act of

Logistics Management is to manage

A ppicture is a model of the real world and it is not real.

Activities of planning together by

Logistics Model for International Trades

Port Transport W/H

Logistics Service Providers

Logistics Model for Exporter

Port Transport W/H

A logistics model is built to

Logistics Model for LSPs

Port Transport W/H

A logistics model is built to represent the details of works and

Loogistics Model ffor LSPss

Logistics Process (outsourced)

The evolution of a supply chain from unaligned to aligned

Logistics, Logistical and Logistically

is characteristics of how the process is executed or how the actions

is attributes of process elements that support the linkages of the

Think and plan logistically

Logistics Activities with linkage and seamless attributes to create logistics

If you see the Optimal

If you see planning and

focusing on transport as collaborative plan of E2E in order to respond customer needs

Look at End to End ((E2E)) logistically

Look at execution process of Warehouse logistically or being integrated by logistically

focusing on procurement as collaborative plan of E2E in order to respond customer needs

sharing procurement information to collaborative plan in order to respond to customers

sharing manufacturing information to collaborative plan in order to respond to customers

Look at execution process of procurement logistically or being integrated by logistically

Product Process (End to End : E2E)

Seamlessly, perfect fit, Just in Time with

If the utilization is in control, its ok or

Measure KPI, check with the goal.

If reach the goal, its ok or

Measure KPI, then

To make flowss of values to ccustomers

Activvities of physsical moving

To make flowss of values to

My Lecture#2 15 Aug 2015

From Strategic to Tactical to Operational

Execute Win IImprove

Execute Source Execute Make ExecuteDeliverImprove

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