Logistics System

Rule Of Conduct
Min 80% Present in Class Present in Class Before Starting the Lecture Dont Use Sandal, Kaos Oblong and Hand Phone During the Lecture Having Good Attitude

SAP
Minggu
1 2 3

Materi

Metoda
L&D L&D P&D

Referensi
1, 2,&3 1&2

Concept & Framework Logistics

Concept of Logistics & Evolution Basic Work of Logistics & Performance Presentation of HW: 1

Logistics Planning and Control

4 5 6 Concept & Method of Planning & Control Optimization & DRP Method Presentation of WH: 2 L&D L&D P&D 3 2&3

Inventory & Warehousing

7 8 Deterministic Model Probabilistic Model L&D L&D 2&3 2&3

Mid Test
9 10 11 12 13 14 15 16 Multi Echelon Inventory Model Warehousing Presentation of HW: 3 L&D L&D P&D L&D L&D L&D L&D P&D 2&3 2&3

Transportation

Transportation Planning Routing and Scheduling

1, 2,& 3 1, 2,&3 1, 2,&3 1, 2,&3

Structural Aspect Functional Aspect Presentation of HW: 4

Logistics Design

Final Test

References
1. Bowersox, Closs & Cooper:Supply Chain
Logistics Management, Mc. Graw Hill, New York, 2002 2. Stock & Lambert:Strategic Logistics Management, Mc. Graw Hill, New York, 2001 3. Chopra & Meindl:Supply Chain Management: Strategy, Planning and Operation Prentice Hall, New Yersery, 2001

Assessment
Requirements:
Min 80% Present in Class Having Good Attitude

Score/Grade :
Mid Semester Test (UTS) : 30% Final Test (UAS): 30% Homework (PR) : 40%
Group : 30% ( 4 papers &problems) Individual : 10% ( 1 paper)

Logistics ?
Disiplin Yang Berkaitan Dengan Pengadaan ( Procurement), Penyimpanan Barang ( Storage ) Dan Penghantaran ( Delivery ) Sesuai Dengan Jenis, Jumlah, Waktu, Dan Tempat Yang Dikehendaki Dari Titik Asal ( Point Of Origin ) Ke Titik Tujuan ( Point Of Destination )

Obyek
Barang (Goods)

Aktivitas
1. Procurement 2. Sorage 3. Delivery

Misi
1. Right Goods 2. Right Time 3. Right Place

1. Aliran Barang ( Flow Of Goods ) 2. Aliran Informasi ( Flow Of Information ) 3. Aliran Uang ( Flow Of Money )

Logistics Activities
Procurement Storage Delivery:
Transportation Services

Linkage
Channel Structure

Coordination
Relationship Management

Logistics Cycle
Pe m ro se sa n O rd e r O rd e r K o n su m e n

T r a n s m is i O r d e r

S e le k s i O r d e r

T ra n s p o rta s i O rd e r

P e n g ir im a n k e K o n su m e n

Logistics Mission
Right Goods Right Time Right Place
Flow of Goods Flow of Information Flow of Money

Logistics Flow Network

J a r i n g a n P e m a s o k
S i s t e m / a l i r a n M a t e r i a l

Jaringan Transportasi

Jaringan Informasi

S i s t e m / a l i r a n t r a n s p o r t a s i

S i s t e m / a l i r a n I n f o r m a s i

S i s t e m / a l i r a n F i n a n s i a l

J a r i n g a n

F i n a n s i a l

Role of Logistics
Increase Efficiency and Productivity Reduced Unit Cost Better Services Competitive Advantage

Stakeholder
Shippers Shippers Consumers Consumers

Logistics Logistics Service Service Providers Providers

Government Government

Performance Indicator
Customer : Services Provider : Cost Owner : Return

Competitiveness

Marketing/Logistics Management Concept

Customer Satisfaction Customer Satisfaction
Suppliers Suppliers IntermediateCustomer Intermediate Customer FinalCustomer Final Customer

Integrated Effort Integrated Effort

Product Product Price Price Promotion Promotion Place Place

Max long term profitability Max long term profitability Lowest cost given an acceptable Lowest cost given an acceptable level of customer service level of customer service

Company Profit Company Profit

Interface Marketing & Logistics

Product Product Price Price Place Place Inventory Inventory Lot Lot
Order Processing Order Processing Information Information

Promotion Promotion

Transportation Transportation Warehousing Warehousing

Evolution of Logistics System

Partial Approach

Integrated Approach

Value Chain Vertical Marketing System

Partial Approach
Logistics as Part of Business Activity

Procurement

Physical Distribution

Physical Distribution
(Partial)
K K O O N N S S U U M M E E N N

Manufacturing Manufacturing

Physical Distribution
(Integrasi)
K K O O N N S S U U M M E E N N

Manufacturing Manufacturing

Procurement
(Partial)
S S u u p p p p ll II e e rr

Manufacturing Manufacturing

Procurement
(Integrated)
S S u u p p p p ll II e e rr

Manufacturing Manufacturing

Integrated Approach
Logistics as integrated part of business entity Supply Chain
A Network of Connected And Interdependent Organizations Mutually And Co-operatively Working Together To Control, Manage And Improve The Flow Of Materials And Information From Supplier To End Users

Integrated Logistics System

s u p p l i e r
A l i r a n I n f o r m a s i

r o c u r e m

e n t

a n u f a c t u r i n g

h y s i c a l i s t r i b u t i o n

C u s t o m e r

l i r a n

a r a n g

Market Distribution
Objective is to assist in revenue generation by providing strategically desire customer service levels efficiently
Activities related to providing services
Order receipt and processing Deploying inventory Storage and material Handling Outbound transportation Coordinate with marketing planning in such areas as pricing, promotional support, customer service levels, delivery standard, handling return merchandise, and life cycle support

Integrated Logistics
Order Order Processing Processing

Facility Facility Network Network

Inventory Inventory

Warehousing Warehousing

Transportation Transportation

Chain Network (VERTICAL MARKETING SYSTEM )

Supplier Supplier Manufacturing Manufacturing Whole Seller Whole Seller Retailer Retailer

Customer Customer

Supply Chain
Materials Flow
Suppliers Suppliers
Procurement Procurement
Manufacturing Manufacturing

Distributions Distributions

Customers Customers

Requirements Information Flow

Achieving An Integrated Supply Chain

Stage one: Base

Line

Material Flow
Material Production Purchasing Material Production Purchasing Control Control

Customer Service
Sales Distribution Sales Distribution

Achieving An Integrated Supply Chain

Stage two: Functional

Integration

Material Flow
Materials Manufacturing Materials Manufacturing Management Management Management Management

Customer Service
Distribution Distribution

Achieving An Integrated Supply Chain

Stage three: Internal

Integration

Material Flow
Materials Manufacturing Materials Manufacturing Management Management Management Management

Customer Service Distribution Distribution

Achieving An Integrated Supply Chain

Stage four: External

Integration

(Total Supply Chain Management)

Material Flow Suppliers Suppliers Internal Internal Customers SupplyChain Customers Chain Supply

Customer Service

Integrated Supply Chain Model

Customer Customer Retailer Retailer Distributor Distributor Manufacturing Manufacturing 1st Tier Supplier 1st Tier Supplier 2nd Tier Supplier 2nd Tier Supplier 1st Tier Supplier 2nd Tier Supplier 2nd Tier Supplier
Information & Financial Flow Product & Information Flow

2nd Tier Supplier 2nd Tier Supplier

Logistics Flow
Supplier Supplier
Distributor Distributor
Customer Customer

Customer Customer Customer Customer Customer Customer

Supplier Supplier

Manufacture Manufacture

Distributor Distributor

Supplier Supplier
: Carrier

Customer Customer

General Supply Chain Model

Information, Product, Services, Financial, and Knowledge Flow
Supplier Network

M M A A T T E E R R II A A L L S S

Integrated Enterprise
PROC DISTRI BUTION

Distributive Network

E E N N D D C C U U N N S S U U M M E E R R S S

MANUFAC TURING

Capacity, Information, Core Competency, and Human Resources Constraints

Cycle
Customer Order Cycle

Stage
Customer

Replenishment Cycle Manufacturing Cycle Procurement Cycle

Retailer Distributor Manufacturer Supplier

Customer Order Cycle

Customer Customer Arrival Arrival Customer Customer

Order Receiving Order Receiving

Customer Customer Order Entry Order Entry

Order Fulfillment Order Fulfillment

Customer Customer

Replenishment Cycle
Retail Order Retail Order Trigger Trigger Retail Order Retail Order Receiving Receiving

Retail Order Retail Order Entry Entry

Retail Order Retail Order Fulfillment Fulfillment

Manufacturing Cycle
Order Order Arrival Arrival

Receiving Receiving

Production Production Scheduling Scheduling

Manufacturing Manufacturing Shipping Shipping

Procurement Cycle
Order Based on Order Based on Manufacturers Prod.. Manufacturers Prod.. Schedule or Schedule or Suppliers Stocking Suppliers Stocking Needs Needs

Receiving at Receiving at Manufacturer Manufacturer

Supplier Supplier Production Production Scheduling Scheduling

Component Component Manufacturing Manufacturing Shipping Shipping

Supply Chain Management

The Management of Upstream And Downstream Relationship With Supplier And Customers To Deliver Superior Customer Value At Least Cost

Linkage
Channel Structure

Coordination
Relationship Management

Evolution of the Externalization of Logistics Activities

Client Client Client 4PL 4PL
Business Process Mgt 3 PL Provider IT Service Provider 00s 4 PL

Client

3 PL Provider

90s Outsourcing

Client

Internal Logistics

<80s Insourcing

Supply Chain Decision Making Framework

Corporate Strategy Corporate Strategy Competitive Strategy Competitive Strategy Supply Chain Strategy Supply Chain Strategy

Supply Chain Structure

Inventory Inventory

Transport Transport

Whousing Whousing

Information Information

Supply Chain Planning Link To Business Goal & Strategies

Vision & Vision & Mission Mission Business Goal Business Goal & Strategies & Strategies Customer Customer Service Service Requirements Requirements Integrated Integrated Supply Chain Supply Chain Planning Planning Design of Design of Integrated Integrated SCM System SCM System Overall Overall Performance Performance Measure Measure

Competitive advantage and the three Cs

Source: Ohmae. K, The main of the strategist, Penguin Books, 1983

Customers
Needs seeking benefits Needs seeking benefits at acceptable prices at acceptable prices

Assets & Assets & Utilization Utilization

V al ue

V al ue
Cost Differentials
Assets & Assets & Utilization Utilization

Company

Competitors

Supply Chain Improvement Benefits

Typical Quantified Benefits From Integrating The Supply Chain:
Delivery Performance Inventory Reduction Fulfillment Cycle Time Forecast Accuracy Overall Productivity Lower Supply Chain Costs Fills Rates Improvement Capacity Realizations
Somber: QAD PRTM ISC Benchmark Study

16% 28% Improvement 25% - 60% Improvement 30% - 50% Improvement 25% - 80% Improvement 10% - 16% Improvement 25% - 60% Improvement 20% - 30% Improvement 10% - 20% Improvement

Scope of Supply Chain Strategy

Inventory Strategy
Inventory levels Deployments of inventories Control methods

Transport Strategy Customer Customer Service Goals Service Goals

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

The Impact of Supply Chain and Customer Service on Marketing

Consumer Franchise X Customer Supply Chain Marketing Franchise X Efficiency = Effectiveness Flexibility Reduced asset base Low cost supplier Market share Customer retention Superior ROI

Customer Brand values service Corporate Partnershi Image p Availability Quick response
Fig.1.2

The Cost / Benefit of Service

Costs, revenue & profit contribution Revenu e Costs

Maximize Profit

Fig.2.5

Service Level

100%

Supply Chain Impact on ROI

Customer Service SCM/Logistics Efficiency Sales Revenue

Costs

Profit

Inventory
Account Receivable

Return On Investment

+ +

Asset Deployment & Utilization

Capital Employed

Cash

+
Fixed Assets

Fig. 3.6