Business logistics an overview g ran persson handelsh yskolen bi
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Business logistics an overview g ran persson handelsh yskolen bi

Business Logistics- an overviewGöran PerssonHandelshøyskolen BI


Business logistics an overview g ran persson handelsh yskolen bi

Physical DistributionMarketing LogisticsMaterials ManagementLogistics Engineering Production ManagementOperations ManagementIndustrial LogisticsBusiness LogisticsLogistics ManagementIntegrated Logistics ManagementSupply ManagementLogistics pipeline ManagementDistribution ManagementSupply Chain Management


Business logistics an overview g ran persson handelsh yskolen bi

Business Logistics

• design and management of

• the physical flow of goods

• and the related managerial processes

• from point of origin to end user (or disposal)


Business logistics an overview g ran persson handelsh yskolen bi

BUSINESS LOGISTICS - a flow orientation

Planning, control and coordination of the

flow of materials and products from the

sources of supply to the final customers

Customers

Suppliers

*

*

*

*

*

*

*

*

*

Regional

warehouses

²

²

²

²

²

²

Raw materials

storage

²

²

²

Finished

goods

storage

²

² ²

O O O

²

Purchasing

Production

Physical distribution

Business logistics


Business logistics an overview g ran persson handelsh yskolen bi

The logistics process spans most functions

of the business.....

Customer

Order

processing

Manu-

facturing

Distribution

Accounting

Place

order

Report

order

Request

materials

Transmit

order

Scedule

production

Deliver

Funds

Invoice

Sales

Forecasting

Purchasing

Sales

Check

availability

and reorder

Customer

.. demands cross-functional planning,

coordination and control


Business logistics an overview g ran persson handelsh yskolen bi

Logistics efficiency

Company stucture Variables which strongly

and systems influence the company

efficiency and profitability

The company

organisation

Planning- and

control systems

Transport, ware-

housing and

materials handling

Revenue which varies

with the customer service

The costs of running

the logistics systems

The inventory costs


Business logistics an overview g ran persson handelsh yskolen bi

Scope of activitiesTransportationStoragePackagingMaterials HandlingOrder ProcessingForecastingProduction PlanningPurchasingCustomer ServiceSite LocationOther Activities


Business logistics an overview g ran persson handelsh yskolen bi

  • Reoccuring problem areas and perceived inefficiencies

  • • long lead-times

  • • lead-time variations

  • • throughput time long and uncertain

  • • excess inventories

  • • obsolete materials

  • • many slow-movers

  • • poor service levels

  • • communication and coordination among players

  • (functions, organisations)

  • • poor control

  • • poor forecasts

  • • costs too high

    • - order processing/order handling

    • - transportation

    • - warehouse operation

  • • etc.


Business logistics an overview g ran persson handelsh yskolen bi

  • Major tasks for the logistics manager:

  • • Opportunity assessment

    • - Diagnostic review

    • - Pre-study for identifying inefficiencies and opportunities

  • • Logistics infrastructure design and action plan

    • - Exploring the link between overall strategy and logistics

    • - Creating the strategic logistics vision

    • - Evaluating selected options

    • - Develop a logistics strategy

  • • Operational capability improvement

    • - Logistics Process Redesign and Cont. improvement

    • - Creating faster and more reliable processes

    • - Improve flexibility in production and distribution


Business logistics an overview g ran persson handelsh yskolen bi

  • • Product flow synchronisation

    • - Synchronised production

    • - Continuous replenishment

    • - Integrated suppliers

    • - Automated ordering

    • - Capacity management

    • - Integrated and coordinated decision making

    • (Acting and reacting as one system)

  • • Organisational issues

    • - Inter-organisational processes

    • - Internal logistics processes

    • - Work processes


Business logistics an overview g ran persson handelsh yskolen bi

“Flow analysis”

To understand the physical flow of goods

• Where is the capital tied-up

• How long - coverage in days or weeks

• Why is it there - functions


Business logistics an overview g ran persson handelsh yskolen bi

Gj.sn. leveringstid

bestillt og ikke levert/

input pr. tidsenh.

Gj.sn. leveringstid

bestillt og ikke levert/

output pr. tidsenh.

Kan gjennomføres på

ulike nivåer:

totalt

hovedgrupper

produktgrupper

artikkelnr.nivåen

input/tidsenh.

output/tidsenhet

Gj.sn. gjennomløpstid

  • EKS:

  • Prod. områdeDekningstidVariasjon mellom prod.grupper

    • Gj.sn.siste Gj.sn.siste

    • 12 månSiste mån12 månSiste mån

  • A3 mån3 mån2 - 4 mån1 - 11 mån

  • B3 mån5 mån1 - 2 mån0 - 40 mån

  • C 4 mån7 mån2 - 12 mån0 - 106 mån


  • Business logistics an overview g ran persson handelsh yskolen bi

    • Basic Techniques

    • (1)DEMAND ANALYSIS

      • Forecasting

      • Forecast error

  • (2)INVENTORY CONTROL

    • Economic Order Quantity

    • Safety stock

    • ABC-analysis

  • (3)PRODUCTION CONTROL (AND WAREHOUSING)

    • Capacity planning

    • Scheduling

    • Lay-out planning

    • Line balancing techniques

  • (4)TRANSPORTATION

    • Location models

    • Routing

    • Sceduling


  • Business logistics an overview g ran persson handelsh yskolen bi

    • FORECASTING

    • • forecast and forecast error

    • expected demand and expected variation

    • • Item, product group, total output

      • - different levels

      • - kr

    • • Two dominating techniques

      • - moving average

      • - exponential smoothing


    Business logistics an overview g ran persson handelsh yskolen bi

    • INVENTORY CONTROL

      • ... when to order?

      • ... how much?

    • Stock has different

    functions

    meaning: different cost

    elements involved

    Order quantity

    turn-over stock

    Safety stock

    • Average inventory = turn-over stock + safety stock

    • Inventory turn-over = Demand (yr)/av. inventory

    • Coverage = actual stock level / output per time unit


    Business logistics an overview g ran persson handelsh yskolen bi

    • PRODUCTION PLANNING AND CONTROL

    • • Do I have the right capacity?

      • - where are the bottlenecks?

      • - what can be done about them?

    • • Am I working on the right job right now?

      • - priorities?


    Business logistics an overview g ran persson handelsh yskolen bi

    TECHNIQUES AND TOOLS (used by logisticians)

    • SUPPLY CHAIN MAPPING AND MODELLING

    • PERFORMANCE MEASUREMENT TECHNIQUES

    • DEMAND FORECASTING AND ANALYSIS

    • PRODUCTION MANAGEMENT TECHNIQUES AND TOOLS

    • MAINTENANCE MANAGEMENT TECHNIQUES AND TOOLS

    • CHANGEOVER REDUCTION PROCESS

    • STATISTICAL PROCESS CONTROL

    • SUPPLIER ANALYSIS AND ASSESSMENT TECHNIQUES

    • SUPPLY MANAGEMENT TECHNIQUES

    • ACTIVITY BASED COSTING

    • VALUE CHAIN ANALYSIS

    • NETWORK ANALYSIS

    • BENCHMARKING TECHNIQUES AND TOOLS (databases)

    • CHANGE MANAGEMENT TECHNIQUES AND TOOLS

    • ORGANISATION DESIGN MODELS

    • PROCESS ANALYSIS TOOLS

    (such as cause and effect diagrams and process flow charts)

    • STATISTICAL ANALYSIS TECHNIQUES AND TOOLS

    (such as Pareto charts, histograms & control charts)


    Business logistics an overview g ran persson handelsh yskolen bi

    60sTotal costAnalytical approachInternal perspectiveOptimising inventory costsOptimising transportation costsDecision models


    Business logistics an overview g ran persson handelsh yskolen bi

    70sSystems TheorySynergyDesign and management of Delivery SystemsHolistic (the flow of materials)Co-ordinationLogistics Management


    Business logistics an overview g ran persson handelsh yskolen bi

    80sSystems TheoryJust-in-timeEconomy of Scope vs economy of scaleCapital tied-upZero Defect & Zero InventoryElimination of wasteOrder production


    Business logistics an overview g ran persson handelsh yskolen bi

    90sValue chainsCompetitive advantageTime based managementResponsiveness, quality, andproductivity in thelogistics processes


    Business logistics an overview g ran persson handelsh yskolen bi

    00sShareholder value

    Supply chains

    Focus on interorganisational co-laboration

    Networks and relationships

    Positioning and operational excellence

    Supply Chain Management


    Three perspectives

    THREE PERSPECTIVES

    CHANNEL

    Industry

    Comp

    Supply Production

    Logistics

    Finance Marketing/

    /Accounting Sales

    Comp

    Company

    Source: Shapiro/Heskett, 1985


    Three perspectives1

    THREE PERSPECTIVES

    1. Company

    * To create an efficient and effective materials flow

    through an effective internal structure and through

    an efficient co-ordination of logistics activities

    * Focus on internal relationships

    * Delivery service, logistics costs and capital tied-up


    Business logistics an overview g ran persson handelsh yskolen bi

    2. CHANNEL

    * To create an effective co-operation and co-ordination

    in the channel, as well as an effective network structure

    * Focus on external relations (suppliers of materials,

    components, services,and customers)

    3. Industry

    * To achieve competitiveness through a

    logistics strategy

    * Customer value and shareholder value


    Fem trender i utviklingen mot leading edge logistics

    Fem trender i utviklingenmot "leading edge logistics"

    Fokus på hele verdiskapningskjeden

    • konkurranse vs outsourcing

    • spesialisering vs koordinering

    Prosessorientering

    • TQM; TBM; Re-engineering etc.

    • Prosessorienterte organisasjonsstrukturer

    Kundedrevet strategi :

    • "Customer focus" & å skape verdi for kunde

    • Differensierte leveringsprosesser

    Videre utvikling av strategiske allianser

    • Mellom "marked og hierarki"

    • Samspill i netverk

    • Leverandørsamarbeide

    Prosessorienterte målemetoder

    • Prosessorientert måling av prestasjon og effektivitet

    •• Benchmarking


    Business logistics an overview g ran persson handelsh yskolen bi

    Helhet: Logistikkens utvikling i en bedrift

    Trinn 1:

    Punktinnsatser i verdikjedens ulike ledd. Fokus på

    kostnadsreduksjoner i ulike funksjoner, f.eks. innkjøp

    eller distribusjon. "Funksjonell kostnadseffektivitet".

    Kunde

    Lev

    F1

    F2

    F3


    Business logistics an overview g ran persson handelsh yskolen bi

    Trinn 2:

    Integrasjon av de interne logistikk-prosessene. Fokus

    på felles bidrag fra ulike funksjoner for å oppnå en gitt

    leveringsservice mot kunde. Samordning av ulike

    interne aktører. "Intern kostnadseffektivitet".

    Lev

    F1

    F2

    F3

    Kund


    Business logistics an overview g ran persson handelsh yskolen bi

    Trinn 3:

    Synergier gjennom ekstern samordning.Logistikk

    som nøkkelelement for å skape konkurransefordeler.

    Fokus på hvordan logistikk skaper verdi for kunde.

    "Kundetilpasset kostnadseffektiv tillgjenglighet"

    Leverandør

    Bedriften

    Kunde


    Outsourcing som strategisk tiln rmning

    Outsourcing som strategisk tilnærmning

    • Konsentrasjon av bedriftens ressurser på

    et set av “kjernekompetanser”, hvor man har mulighet

    å oppnå en definerbar fordel fremfor konkurrentene

    gjennom å skape unik verdi for kunde

    • Outsource andre aktiviteter, inkludert mange som

    av tradisjon er blitt betraktet som nødvendige interne

    aktiviteter og funksjoner

    • Skape strategiske allianser med et set komplementære

    levrendører for å redusere risiko eller for å skape

    konkurransefordeler knyttet til posisjon eller prosess


    Hvorfor outsourcing

    Hvorfor “Outsourcing”?

    1. Bedre fokusering på kjernevirksomheten

    2. Tilgang til “world-class” produkter/processer/tjenester/teknologi

    3. Raskere omstilling

    4. Fordele risk

    5. Frigjøre ressurser (også ledelsesressurser)

    for annen (kjerne-) virksomhet

    6. Redusere investeringsbehov - konsentrere

    7. Bedre Cash-flow

    8. Redusere og styre driftskostnader

    9. Ressurser ikke tilgjengelige innen egen organisasjon

    10. Funksjonen er vanskelig å lede/styre

    Kilde:Outsourcing Institute, 1996

    1200 bedrifter i perioden -91/-96


    2 prosessorientering som strategi hvordan skape konkurransefordel

    2. Prosessorientering som strategi: Hvordan skape konkurransefordel...

    1. Posisjonell fordel - strukturell fordel

    * Hva og hvor

    * Produkt- / marked

    2. Prestasjonsfordel - prosess kompetanse

    * Hvordan konkurrere gitt posisjonen

    * “Operational excellence”

    * Hvordan bli "best i klassen"


    Leveransprocesserna

    Fokuseringen flyttas från "funktionell kompetens" till "affärsprocess kompetens", där leverantörerna är integrerade i processen.

    Leveransprocesserna

    Affärs

    process


    Innkj pets betydelse

    1. Stor andel av våra kostnader

    2. Andelen av de totala kostnaderna ökar

    3. Potential: en minskad inköpskrona (eller bättre kostkrona

    ytill skillnad från priskrona) är en vinstkrona

    4. Leverantören får ökad betydelse för våra leveransprocesser

    5. Ökad komplexitet i inköpsarbetet ökar dess betydelse

    • köpta produkter och komponenter mer sofistikerade

    • högre teknikinnehåll

    • andel internationella köp ökar

    6. Ny insikt: fördelar med långsiktiga relationer coh allianser

    • gemensamma satsningar, öppenhet, ömsesidigt förtroende,

    flexibilitet

    Innkjøpets betydelse


    Benchmarking

    1. En prosess for å sette realistiske og "riktige" målsettninger

    2.Oppdage og forstå hvilken praksis som er nødvendig for å nå målene

    3.Motivere og oppmuntre organisasjonen til kontinuerlig forbedring av sine ytelser for at den skal bli mer konkurransedyktig

    4.Legitimere kort- og langsiktige mål ved å knytte dem til observerte ytelser hos de ledende konkurrentene

    5.Konsentrere organisasjonens oppmerksomhet og innsamot de viktigste leveringsprosessene

    Benchmarking


    Business logistics an overview g ran persson handelsh yskolen bi

    From..

    function

    profit

    products

    transaction

    inventory

    To...

    process

    profitability

    customers

    relationships

    information

    Leading to...

    Integral management of

    materials & goods flow

    Ressource management

    and asset utilization

    Focus on markets

    and customer service

    Co-makership and

    co-shipper partnerships

    Demand-based replenishment

    & quick response systems


    Europeans leaders prioriterte tiltak

    Europeans leaders - prioriterte tiltak

    Forbedring av kundeservicen

    gjennom

    1. TQM

    2. Fokus på kjernen

    3. Differensiering av

    leveranseprosesser

    Bedre fleksibilitet gjennom

    1. Målstyrte teams

    2. Strategiske allianser

    3. Prosessorient./TBM

    Forbedring av logistikken gjennom

    1. Process reenginerring

    2. Effktivisering av distr.struktur

    3. Målstyrte grupper

    4. Omlokalisering

    5. Differensiering av leveranseprosesser


    Vinnarna

    1.Kundorientering inom hela organisationen.

    2.Flexibel och lärande organisation.

    3.Arbeta med värdekedjor, ökat värde för kunden (value added, kvalitet).

    4.Individen som pådrivare i förändringsprocessen.Individens och arbetsgruppens förmåga att genomföra förändringar och driva processen måste vara stor.

    5.Använda information- och kommunikations-teknologin fullt ut.

    Vinnarna


    Vinnarna1

    6. Tid som konkurrensmedel.

    7. En tydlig vision som drivkraft.

    8. Globalt perspektiv vid utveckling av strategier.

    9. Innovationskraft och entreprenörskap.

    10. Platta organisationshierarkier, inga hierarkier alls.

    11. Nätverksstrukturer.

    Vinnarna


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