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Logistics Excellence Imperative & Instruments & Tools Sompong Sirisoponsilp 6 November 2013
Logistics Excellence
Imperative & Instruments & Tools
Sompong Sirisoponsilp
6 November 2013
Challenges: Competing Priorities Cost Green Safety Quality Responsive- Reliability ness
Challenges: Competing Priorities
Cost
Green
Safety
Quality
Responsive-
Reliability
ness
A Critical Imperative for Logistics Excellence • the proper positioning or state of adjustment of
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 Aligning corporate strategy with organizational units CCorporate orporate strategy strategy Production
Alignment 1
Aligning corporate strategy with organizational units
CCorporate
orporate
strategy
strategy
Production
Production
Logistics
Logistics
Marketing
Marketing
ss rara egyegy
t t
t
t
ss rara egyegy
t t
t
t
sstrarategyegy
t
t
Alignment 2 Aligning logistics strategy with execution Logistics strategy Processes Resources
Alignment 2
Aligning logistics strategy with execution
Logistics
strategy
Processes
Resources
Alignment 3 Ali gn i ng fl ows
Alignment 3
Ali gn i ng fl ows
Suppliers Source Make Plants Distribution Deliver Centers 6 Customers ProPro duct/Sduct/S ervice F Fervice lowlow
Suppliers
Source
Make
Plants
Distribution
Deliver
Centers
6
Customers
ProPro duct/Sduct/S ervice F Fervice lowlow
WorkWork FlowFlow
I n nI formatformat ion Fl Fl o oion ww
Alignment 4 Aligning KPIs throughout the organization Vertically & horizontally integrated performance measurements
Alignment 4
Aligning KPIs throughout the organization
Vertically & horizontally integrated performance measurements
Corporate
Department 1
De artment 2
p
De artment 3
p
De artment 4
p
Individuals
Individuals
Individuals
Individuals
Alignment 5 Aligning with other organizations Suppliers Company Customers
Alignment 5
Aligning with other organizations
Suppliers
Company
Customers
Management Instruments & Tools • Visibility & Event management • Integrated planning system • Business
Management Instruments & Tools
• Visibility & Event management
• Integrated planning system
• Business process integration
• Talent development and management
• Leadership
Visibility & Event Management • End-to-end visibility across all tiers in the supply chain •
Visibility & Event Management
• End-to-end visibility across all tiers in the supply chain
• Ability to proactively and timely sense-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
0
5
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
Integrated Planning System
• Decision support system (DSS)
Operational Tactical  Strategic
• Asset optimization
• Making trade-off
• Effective mechanism for coordinating activities and
investments i.e. Sales & Operations Planning (S&OP)
Business Process Integration • From Task-oriented management to Process-oriented management • A number of
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 Sustainability
Talent Development & Management
Globalization/AEC
Sustainability
& Management Globalization/AEC Sustainability World-Class Supply Chain Strategy Strategic Mgt. Value
World-Class Supply Chain Strategy Strategic Mgt. Value Creation and Realization Supply Chain Planning Product
World-Class Supply Chain Strategy
Strategic Mgt.
Value Creation and Realization
Supply Chain Planning
Product
Specialty Areas
Manufacturing
Transportation
Warehousing
Development
Procurement and
Exchanges
Service
Management and
Customer
Support
Inventory Management
Supply Chain Analysis Tools and Techniques
Integration Mgt.
Supply Chain Relation Management Tools
IT Innovation
Risks/Crises
Adapted From The Accenture Supply Chain Academy
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%
Leadership
Creating Logistics Excellence involves
• 40-50% organizational (or People) change management
• 30-40% process design
People
• 10-20% technology deployment
Process
Technology