Global Logistics Management Shihyu Chou National Taiwan Normal University Unless noted, the course...

Global Logistics Management

Shihyu Chou

National Taiwan Normal University

Unless noted, the course materials are licensed under Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Taiwan (CC BY-NC-SA 3.0)

1

http://creativecommons.org/licenses/by-nc-sa/3.0/tw/deed.en






Unit 1

Supply Chain Strategies

2

Learning objectives

Highlight the role of logistics and supply chain strategy in the context of firm strategy, and see how logistics and supply chain strategy can actually sometimes drive firm strategy

Outline the evolution of manufacturing, from which various logistics and supply chain strategies have emerged

Look at both lean and agile logistics strategies, and the role of mass customization in the latter

Develop a taxonomy of supply chain strategies

3

Outline

Definitions of logistics and SCM Strategy The evolution of manufacturing Lean production Agile supply chains and mass customization Combined logistics strategies Critical factors to consider in supply chain

planning

4

Mangan, J., Lalwani, C., and Butcher, T.,(2008), Global Logistics and Supply Chain Management, John Wiley & Sons, Ltd.(p35)

What is logistics?

Logistics involves getting, in the right way, the right product, in the right quantity and right quality, in the right place at the right time, for the right customer at the right cost (8Rs)

It’s not just ‘trucks and sheds’

5

What is supply chain management?

The supply chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer

Supply chain management (SCM) is the management across a network of upstream and downstream organizations of material, information and resource flows that lead to the creation of value in the form of products and / or services

6

Strategy

7

Strategy– It is about planning and configuring the organization

for the future according to certain stakeholder expectations.

– A particular long term plan for success

An organization without a strategy is like a ship without a compass

8

Corporate strategy

Business unit strategy

Functional strategy

Top-down view

Firm level

SBU level

departmental level(marketing, production, logistics,…)

9National Taiwan Normal University Shihyu Chou(reference: Mangan, J., Lalwani, C., and Butcher, T.,(2008), Global Logistics and Supply Chain Management, John Wiley & Sons, Ltd.(p36))

Corporate Strategy

SBU A’s Strategy

SBU B’s strategy

Strategy: Function A1



Strategy: Function B1



Logistics & SCM Strategy

A holistic view of logistics and SCM strategy formulation 10

National Taiwan Normal University Shihyu Chou(reference: Mangan, J., Lalwani, C., and Butcher, T.,(2008), Global Logistics and Supply Chain Management, John Wiley & Sons, Ltd.(p37))

SCM is an activity that is truly cross-functional and not limited to one functional area.

Companies need to evolve their strategies to meet the challenges of the dynamic, ever changing business environment.

Integration is a key feature of effective SCM Formulating a strategy for logistics and SCM

should not be restricted to the logistics function; instead it should involve taking a cross-functional, process based perspective.

11

http://get.nccu.edu.tw:8080/getcdb/handle/getcdb/127023




The evolution of manufacturing

12

Output variety

Output volume

Craft productionMass production

Lean production

Mass production

The evolution of production strategy

13National Taiwan Normal University Shihyu Chou(reference: Mangan, J., Lalwani, C., and Butcher, T.,(2008), Global Logistics and Supply Chain Management, John Wiley & Sons, Ltd.(p39))

Toyota Production System (TPS) is the origin of lean production and lean logistics. (Kiichiro Toyota, Taiichi Ohno, and others)

They improved the Ford can production model and also included the thinking of quality.

TPS: – The emphasis is not on the efficiency of individual

machines, but on the flows through the system.

14

Lean Production

15

Lean production:– Quick machine turnover, elimination of waste, even

production flows, low levels of inventory, faster total process time, achieving total quality

– Pulled system (JIT) rather than push system

Eliminating waste in a pull based value stream of activities with level production (i.e. even production runs with neither idle time nor surges in demand) and just-in-time inventory management

16

Typical wastes:– Overproduction, waiting, transportation, inappropriate

processing, unnecessary inventory, unnecessary motion, defects

A key aspect of lean is ensuring that value is added at each stage of the process and steps in the process that do not add value are eliminated

17

Lean can also be applied in the service context. Lean consumption, the principles:

– Solve the customer’s problem completely– Don’t waste the customer’s time– Provide exactly what the customer wants– Provide what’s wanted exactly where it’s wanted– Provide what’s wanted where it’s wanted exactly when

it’s wanted– Continually aggregate solutions to reduce the

customer’s time and hassle.

18

Agile supply chains and mass customization

19

Agile supply chains

The agile supply chain is a demand-pull chain designed to cope with volatile demand. – Structured so as to allow maximum flexibility

Enabled by mass customization– Often incorporates postponed production

Mass customization involves customization into various different finished products of what are largely mass produced product.

20


Mass customization

Customers usually concentrate on the dissimilar features among the similar products.

Different product configurations contain a majority of shared components and features to accommodate volume and variety

Enabled by postponement – the reconfiguration of product and process design so as to allow

postponement of final product customization as far downstream as possible

– Not only applied to manufacturing – E.g. Packaging postponement is merely delaying final packaging

of products until customer orders are received

21




Before standardization After standardization

The principle of postponement22



Toyota AYGO Citroen C1 Peugeot 107

• All three are produced in the new, purpose-built joint TPCA factory in the Czech Republic

• All three share 92% of the same components

23

Flickr Arrr! Flickr Andy_BB Flickr Tim van Rooyen

http://creativecommons.org/licenses/by/2.0/

http://creativecommons.org/licenses/by-nc-sa/2.0/

http://creativecommons.org/licenses/by-nc-nd/2.0/



Combined logistics strategies

24

A taxonomy for selecting global supply chain strategies

Supply demand characteristics Resulting pipelines

Short lead time + predictable demand Lean, continuous replenishment

Short lead time + unpredictable demand Agile, quick response

Long lead time + predictable demand Lean, planning and execution

Long lead time + unpredictable demand Leagile production/logistics postponement

LeanPlan and Execute

LeagilePostponement

LeanContinuous

replenishment

AgileQuick Response

Long lead time

Short lead time

Unpredictable demandPredictable demand

25





Manufacture of base product

Final MarketsAgileLean

Decoupling point

The leagile supply chain

(the base product can be manufactured at a remote location and shipped to locations nearer the final market) 26

National Taiwan Normal University Shihyu Chou(reference: Mangan, J., Lalwani, C., and Butcher, T.,(2008), Global Logistics and Supply Chain Management, John Wiley & Sons, Ltd.(p48)


Critical factors to consider in supply chain planning

27

Critical factors to consider in supply chain planning (I)

Living supply chains– Companies use a process of dynamic alignment to

match changing customer needs and desires with different supply strategies.

Focus on processes and flows– A supply chain approach in that it allows a full end-to-

end perspective rather than focus on separate functional areas

28


Critical factors to consider in supply chain planning (II)

Focus on high level objectives– The best supply chains are agile, adaptable and have

aligned interests among the firms in the supply chain. This is a ‘Triple A Supply Chain. (Hau Lee from Stanford)

The importance of people – It’s people who drive the supply chain, both inside and

outside a firm, not hard assets or technology. You can’t do anything without the right people.

29



Critical factors to consider in supply chain planning (III)

Its supply chains that compete– Increasingly it is supply chains that compete more so

than individual firms and products– A company can have the best and most sophisticated

product in the world, but if it doesn’t have a good supply chain behind it, then it will likely not be able to compete, especially in terms of cost and speed, and indeed many other attributes also.

30

Page Work Licensing Author/Source

3

Highlight the role of logistics… chain strategy can actuallysometimes drive firm strategy


3Outline the evolution of manufacturing,… chain strategies have emerged


3

Look at both lean and agile logistics strategies…of mass customization in the latter


3Develop a taxonomy of supply chain strategies Mangan, J., Lalwani, C., and Butcher, T.,(2008), Global Logistics

and Supply Chain Management, John Wiley & Sons, Ltd.(p35)

4

StrategyThe evolution of …consider in supply chain planning


Copyright Declaration

31


5

Logistics involves getting, …right customer at the right cost (8Rs)


6The supply chain is the network of …in the hands of the ultimate consumer


6

Supply chain management (SCM) is …products and / or services


8It is about planning and …according to certain stakeholder expectations.


8 A particular long term plan for success



32


9


10


11

SCM is an activity that is …not limited to one functional area.


11

Companies need to evolve …the dynamic, ever changing business environment.


11 Integration is a key feature of effective SCM



33


11

Formulating a strategy for logistics …taking a cross-functional, process based perspective.


13


14 The emphasis is not… but on the flows through the system.


16

Quick machine turnover…faster total process time, achieving total quality


16

Eliminating waste in a pull based value …and just-in-time inventory management.



34


17

A key aspect of lean is ensuring …the process that do not add value are eliminated


18

Solve the customer’s problem completely…. solutions to reduce the customer’s time and hassle.


20Mass customization involves …products of what are largely mass produced product.


21

Customers usually concentrate on the dissimilar features among the similar products.


21

the reconfiguration of product and …customization as far downstream as possible



35


21

Packaging postponement is …products until customer orders are received


22


23 Flickr Arrr!http://www.flickr.com/photos/gasheadsteve/157345234/sizes/m/in/photostream/2012/09/24 visited

23Flickr Andy_BBhttp://www.flickr.com/photos/andyboohh/5421789547/2012/10/15 visited

23Flickr Tim van Rooyenhttp://www.flickr.com/photos/timmee/282614963/2012/10/15 vistied


36

http://www.flickr.com/photos/gasheadsteve/157345234/sizes/m/in/photostream/

http://www.flickr.com/photos/gasheadsteve/157345234/sizes/m/in/photostream/

http://www.flickr.com/photos/andyboohh/5421789547/

http://www.flickr.com/photos/timmee/282614963/

http://creativecommons.org/licenses/by-nc-sa/2.0/

http://creativecommons.org/licenses/by/2.0/

http://creativecommons.org/licenses/by-nc-nd/2.0/


23

All three are produced in the new, purpose-built joint TPCA factory in the Czech Republic


23 All three share 92% of the same components


25


25


26

National Taiwan Normal University Shihyu Chou(reference: Mangan, J., Lalwani, C., and Butcher, T.,(2008), Global Logistics and Supply Chain Management, John Wiley & Sons, Ltd.(p48)

28

Companies use a process of …needs and desires with different supply strategies.



37





29

The best supply chains are agile…This is a ‘Triple A Supply Chain. (Hau Lee from Stanford)


29

It’s people who drive the supply chain, …You can’t do anything without the right people.



38



Date post:	26-Dec-2015
Category:	Documents
Upload:	bethany-stone
View:	215 times
Download:	0 times

Global Logistics Management Shihyu Chou National Taiwan Normal University Unless noted, the course...

Documents