logistics and forwarding. 01 basic theory on logistics 02 forwarding and physical distribution...
Post on 18-Dec-2015
222 Views
Preview:
TRANSCRIPT
01 Basic Theory on Logistics 02 Forwarding and Physical Distribution Systems
03 Subsystems and Activities in Logistics
04 Information System and Future Issues
What is logistics on your fist thought?◦ Process of goods moving from origin to
destination What kinds of activities do logistics have?
◦ Inbound: demand forecasting, purchasing, manufacturing, assembling, warehouse & inventory
◦ Outbound: load and unload, transport, picking and sorting, packing, distribution, delivery, reverse logistics, customer services
◦ Two way: information system, strategy and business model, supply chain.
Understanding Logistics – Management instead of Transport
Who’s doing Logistics?◦ Supplier / Manufacturer / Distributor / Retail /
Customer ◦ 3PL, logistics centers, freight centers,
warehouses, distribution centers, express delivery◦ Shipper / FF / Port Authority / Port Terminal
Operator / Carrier / Consignee
Understanding Logistics – Management instead of Transport
DOUG LAMBERT, 1998◦ The process of planning, implementing and
controlling the efficient, effective flow and storage of goods, services, and related information from point of origin of consumption for the purpose of conforming to customer requirements.
Definitions of Logistics
CSMP◦ Logistics management is part of the supply chain
process that plans, implements, and controls the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption in order to meet the consumers requirements (1998)
◦ Logistics management is that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements. (2001-2010)
Definitions of Logistics
SHAPIRO and HESKETT, 1985◦ Getting the right product to the right customer, in
the right quantity, in the right condition, at the right place, at the right time, and at the right cost.
◦ This actually tell us logistics is: Not just about moving of the goods Not just about transport and warehousing Not just about information system No just about forwarding
But also the whole process of right management of the goods flow
Definitions of Logistics
CSCMP, 2010◦ Supply chain management encompasses the
planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.
Definitions of Supply Chain
Beginning Stage (1910 – 1950)◦ Scholar named ARCH SHAW put forward the
concept of modern logistics – Physical Distribution, which was the foundation of discipline history;
◦ During World War II, the United States military employed a system of supplier activities, which called LOGISTICS.
Brief History of Logistics & SCM
Preliminary Stage (1950 – 1960)◦ It was agreed that logistics should be regarded as
the a strategy of enterprises and countries in the 26th Boston marketing conference.
◦ In 1956, “Trade-off (antinomies)” theory was put forward to describe the relationship between logistics functions;
◦ Logistics substituted Physical Distribution as the formal concept, and also the formation of systematical theories and methodologies, made logistics as a new discipline began to established.
Brief History of Logistics & SCM
Development Stage (1960 – 1980)◦ In 1961, DONALD BOWERSOX wrote the world’s
first textbook on logistics management – logistics management.
◦ In 1960’s, Two universities, the Michigan State University and Ohio State University, opened the course of Logistics Management respectively, and become the world’s first logistics education in the undergraduate and graduate level academic education system.
Brief History of Logistics & SCM
In 1962, renowned management Professor Peter Ducker published a paper of “The Economy’s Dark Continent”, put logistics as the “dark continent” of the economic cost;
Council of Logistics Management was founded in 1963 in USA;
Toyota Corporation created far-reaching “JIT production”
Brief History of Logistics & SCM
Deepen and Transformation Stage (1980 – Today)◦ In 1990’s The concept of supply chain
management achieved great development; ◦ American and Japanese government began to
formulate and implement national level logistics planning and strategy;
◦ The theoretical framework of logistics discipline was build up, including the theories of customer service, supply chain management, global logistics etc.
Brief History of Logistics & SCM
On January 2005, the Council of Logistics management was renamed as the Council of Supply Chain Management Professionals (CSMP), a brand new stage of supply chain was opening;
Today◦ Logistics as a academic discipline remains immature.
The gap of theory and practice; Two optimization direction; Many optimization factors;
Brief History of Logistics & SCM
Cultivate pillar industry◦ Brief economic history of Hon Kong
Port – Freight Center – Commerce Center – International Financial, Trade and Shipping Center.
◦ Memphis (1973) FEDEX started its operations.
Logistics and Economy
Upgrading traditional transport, warehousing and forwarding industries◦ From functional service providers to integration service
providers◦ Information, Transparent supply Chain
Upgrading traditional retailing industry◦ Chain store, by 3rd party common delivery◦ Ecommerce, by express delivery
Upgrading traditional manufacture industries ◦ Supply chain management: value chain coordination◦ Lean production, Agile production, cooperation with
sales companies
Logistics and Industries
Industrial Products◦ Efficient production logistics, inventory management,
sales logistics, forwarding service, intelligent logistics technology improving manufacture distribution channel and sales.
Agricultural Products ◦ Shorten Market channel, optimize operation
management, lower the waste Due to the immature of cold chain system, China’s a fruits
and vegetables suffered a post-harvest loss rate as high as 20% up to 100 millions tons agro-products (75 billion Yuan) were lost in the logistics process.
The rate in advance countries ( USA, Germany, Japan ) was about 5%.
Improving distribution efficiency: faster, safer, less waste
Logistics are always part of enterprises strategy◦ Competition phase theory for modern enterprises◦ Logistics was one of the key factors to the
transition of competition phase◦ Phase 4: business model base competition◦ Phase 3: Fast changing; small lot size;
personalized demand. Time based competition. ◦ Phase 2: Consumerism; Information; Rational
demand. Service based competition. ◦ Phase 1: Marketing; Promotion; Mass demand.
Price and cost based competition.
Logistics and enterprise competitiveness
Many divergent tasks in logistics services◦ Take an example of transport service
Model: water transport (ocean, river), road transport, railway transport, airway transport, pipeline transport, multimodal / intermodal transport.
Scope: trunk line transport, branch line transport, city express, last mile delivery
Special goods: bulk products, light bulky/heavy cargo, cold chain large shape product, dangerous goods
Trade contract requirement: C.K.D; S.M.D; Cross border: customs clearance; inspection and
quarantine; booking etc.
Divergent Tasks in Logistics
Specialization trend in logistics in China – leading by ecommerce◦ Truckload to LCL transport ◦ Storage warehouse to storage-sorting integration
warehouse◦ Distribution center to logistics center network◦ Normal transport to express delivery ◦ Last mile was noticed
Will internet change the operations model of forwarding?◦ Cross border ecommerce
Direction of Logistics Divergent Tasks
Categories of forwarders (mainly international forwarders)◦ Business field
Airfreight forwarders: Sinoair, DHL, UPS, Panalpina, Kuehne & Nagel etc.
Railway/Highway forwarders: COSCO, CRCT, CREF, BRLB
Ocean freight forwarders / NVOCC: Sinotrans, COSCO, Fedex, DHL
Ocean freight agency: Penavico, Singoagent Freight Carrier: UPS, Fedex, CSCL, Maersk; Evergreen,
APL; China Airline, Huayu, Debang 3PL: Fedex, UPS, Schenker, DHL, EXEL
Forwarders in Supply Chain Process
Structure of property rights ◦ State-owned◦ Private◦ International◦ Joint Stock
Forwarders in Supply Chain Process
Activities of forwarders◦ Agent Service
Take orders, shipping, warehousing, yard, cargo, concentration, customs clearance, inspection, transshipment, booking broker.
◦ NVOCC (Work as a shipper) Sing contract, issue B/L, charge expenses,
consolidation Assume liabilities, undertake obligations and risks
◦ 3PL (Agent service and carrier) Moderate possession of carrier function with
integrated logistics
Forwarders in Supply Chain Process
Differences between logistics and forwarding in international trade◦ Functions – integration as a trend
Logistics: emphasis operation of physical distribution and management
Forwarding: emphasis agent and broker service Field – Logistics is closer to supply chain
◦ Logistics: includes manufacture, inventory etc. inner-enterprises fields, and distribution, retailing channel etc. between – enterprises supply chain fields.
◦ Forwarding: mainly trade issues, between enterprises
Forwarders in Supply Chain Process
Space – Forwarding serve more on international trade◦ Logistics: nation-wide, global, all included◦ Forwarding: more on international trade, less
inland physical distribution Demand – supply agent platform 3PL as a important role on inland forwading
Forwarding is Supply Chain Process
Theoretically, forwarder can serve each type of logistics activities in SC Process…◦ Agent and logistics operator on international trade
Traditional agent services and carrier, warehouse operator etc.
◦ Representative of shipper and in charge of the logistics function On behalf of shipper, in charge of total process of
import and export◦ Integration service provider on whole international
trade process (via global network) Whole trade program integrator, financial, exhibition,
consultant
Forwarders in Supply Chain Process
Forwarders in Each Phase / Echelon of enterprises supply chain (including inland logistics service for enterprises, total Supply Chain Service Provider)◦ Value – added Service in total logistics and supply
Chain process Business ecological platform builder in
foreign trade◦ Like Alibaba in Ecommerce
Forwarders in Supply Chain Process
Alibaba from ecommerce◦ Inland Retail
Taobao, Tmall◦ Inland Wholesale
Alibaba◦ Mid model
Ju.taobao ◦ International export
Ali express◦ International Import
G.taobao; tmall.hk◦ Payment and settlement
Alipay◦ Finance: Aliloan◦ Advisement: Alimama◦ Logistics: Cainiao
Business Ecological Platform
Customs agents to freight forwarders◦ Agent function integration on international trade
FF to 3PL◦ Carrier function integration on logistics ◦ Transport carrier and warehousing may as the first
level◦ Exhibition and finance as the following
FF to shipper◦ Commerce function integration on international trade◦ As a exhibition organizer or a importer / exporter as
the first level◦ Sorting and ERP matching as the following
Common Integration Evolving Route
Single logistics provider…◦ Single provider – Emergency backup◦ Relationship management – Alliance of companies
and logistics providers Case Study
◦ Vancl and Rufengda Logistics◦ Alliance and Emergency
Jingong Supermarket and Tianyuntong◦ Chain store crisis◦ Community store and logistics common delivery◦ Tianyuntong
Provision of Logistics system
Special services in logistics and supply chain◦ Special services in logistics and supply chain
Cold Chain: Perishable goods, medicine Import customs clearance Finance Information system
◦ Cold chain in Central Asia Network Spatial imbalance Trunk line and warehousing vs. city delivery Technology and infrastructure Demand and opportunity
Providers of Special Services
Network Providers◦ Logistics / Distribution Center◦ Cargo transportation◦ Warehouse
Logistics / Distribution Center◦ Logistics / distribution Centers in Asia◦ Property management type to incubation type
Integration of truck line◦ Transfar Logistics Group◦ Debon Logistics
Network Providers
Information system◦ ERP, SAP: Logistics Ltd.
Supply demand match platform◦ Emerging fast in China
KXTX Logistics platform ◦ Truck operator; Fleet companies◦ Shipper, consignee◦ Forwarders◦ Logistics/Transport Centers◦ Warehouse
System Providers
Production/Manufacture logistics:◦ Production logistics is the physical movement of materials,
WIP, semi-finished goods, finished goods within the manufacture enterprises.
◦ Start from demand forecasting, purchasing and terminated by finished goods entering the warehouse.
Main process of production logistics ◦ Reserve process (materials, work in process, finished goods,
buffer)◦ Transfer process (load and unload, transfer, inner-distribute)◦ Physical fabrication process (manufacture, assembly)◦ TQM, Inspection process and remanufacture◦ Queuing and Waiting process◦ Other actions
Production Logistics
We will go through some key concepts:◦ Organization of Manufacture◦ JIT & Lean Production◦ BOM & MRP
Production Logistics
Organization of manufacture◦ Design the products: modularization◦ Design the process: pull / push Model◦ Assemble to order, ATO;◦ Fabrication to order, FTO;◦ Purchase to order, PTO;◦ Engineer / Design to order; ETO;◦ Develop to order, DTO
Examples◦ Postponement ◦ Process reengineering in Benetton Company◦ C2B Ecommorce: Made.com
Key concepts of modern production logistics
Push/pull design Postponement Products feature of a pharmaceutical
factory◦ Same pill, different package◦ From storing finished goods to storing WIP◦ Hold more WIP inventory while less finished goods
inventory◦ Improve packing power
Case Study: ATO/postnement
Start up at 2010; Due to a Furniture shopping; Sales growth; 700% in 2011 3-4 40 feet container per day; Voting crowd-funding model; Opportunities for logistics service
◦ “We would like to become another Idea via Internet”
◦ “Logistics is the key factor for ours innovation and excellence”.
Made.com
Organization of Manufacture◦ Optimize the flow and action; JIT◦ Lean Production
JIT ◦ Eliminate Waste◦ Continual improvement
Examples◦ Kanban management◦ One piece flow
Key concepts of modern production logistics
JIT not always suitable for various types of company
Depends on products structure and the operations management
From JIT to Lean Production◦ Action management◦ POKA YOKE◦ Kaizen (Continual Improvement)◦ 5S / 5C
Key concepts of modern production logistics
MRP is a computer-based system which is designed to:◦ Release production and purchase orders to meet
the production schedule◦ Ensure the availability of materials for planned
production ◦ Maintain minimum levels of dependent demand
items.
MRP: Material Requirement Planning
From MRP to MRP II, ERP, DRP◦ MRP: Material Requirement Planning◦ MRP II: Manufacturer Resource Planning
Including cost, financial, order handling etc. modules, managing total manufacturer resources
◦ ERP: Enterprises Requirement Planning Including Plan, procurement, manufacture and cost,
managing total resources of the enterprise◦ DRP: Distribution Requirement Planning
Including distribution, warehousing etc. process, managing downstream supply chain.
MRP: Material Requirement Planning
From reorder point to MRP◦ BOM (Bill of Materials)
The basis of MRP Split product into parts Low level coding MPS: Master Production Schedule Base on safety stock, lot size, lead time, to plan
purchase Opportunities for Logistics Service
◦ Sorting for product line
MRP: Material Requirement Planning
Procurement Logistics◦ Demand Forecasting◦ Purchasing Material & ERP◦ Supplier selection, evaluation alliance (SRM)◦ Negotiation and contract management ◦ Procurement Integration Warehousing ◦ Global procurement & Internet procurement
We will go through some key concepts◦ Forecasting ◦ VMI & CPFR◦ Global procurement
Procurement Logistics
It will never be totally accurate for demand forecasting Different forecasting methods for different types of
goods under different market situations ◦ A type of beer that have steady demand, what’s the volume
next month?◦ The cooperation with invest a new type of car, what’s the
demand?◦ The company invest a new type of pen, what’s the demand?◦ Ready to eliminate a bookshelf product line, unexpectedly got
a big order, what’s the materials procurement plan next month?
◦ The ecommerce department of the company designed a new promotion plan, and promise 1 hour arrival after making order, what would logistics department do?
Demand Forecosting
VMI and JMI (Joint managed inventory)◦ From reorder point to VMI◦ Postpone of ownership transfer◦ Logistics provider: integrated service on transport
/ warehousing ◦ Supplier: risk and cost increment vs. sales
increment Case Study
◦ Wal-Mart (Retailer leading)◦ Western Publishing (Supplier leading)
VMI, Vendor-managed Inventory
Collaborative Planning, Forecasting and Replenishment ◦ Start from Wal-Mart in 1195◦ Warner-Lamber, SAP and other 3 supplier setup a
workgroup for Wal-Mart supply chain◦ Using information system to improve the
relationship between retailer and his supplier, realized collaborative planning for purchase and inventory replenishment
CPFR was procurement alliance through information system
CPFR
Sales Logistics◦ Distribution channel / network design ◦ Transportation◦ Distribution and delivery◦ Retail inventory◦ Reverse logistics
We will go though some key concepts ◦ Distribution channel / network design◦ Transportation ◦ Express delivery
Sales Logistics
Divergent distribution channel ◦ HP, Dell, Acer/Gateway◦ Apple◦ Wal-Mart, 7-11, Costco◦ P&G, Texas Instrument◦ Amazon, Taobao, Ymatou◦ MI, Chu Orange
Distribution Channel
Retail network design – Cost vs. Performance ◦ Performance
Order fulfilling time (response time) Product diversity Availability (service level) Customer experience Time to market Order visibility Return convenience
◦ Cost Setup cost and inventory cost, Proportional to number of
nodes Transportation cost, U shape relationship with number of
nodes
Distribution Channel
Emerging distribution Channel◦ City square and shopping mall◦ Vertical Ecommerce◦ O2O
O2O in China, fast emerging and evolving◦ Online sales for offline ◦ Offline sales for online◦ Build O2O experience ◦ Fans economy and reputation marketing◦ Go online for traditional offline services
Emerging Distribution Channe
Pallet pool system; container pool system Intermodal transport
◦ Spatial seamless Transshipment in an acceptable distance
◦ Time seamless Transshipment within a acceptable waiting
◦ Information seamless Quickly and easily obtain information
◦ Service seamless Route Integration
Sales Logistics – Transportation Issues
Growth with ecommerce◦ City level transportation network◦ Door to door◦ From document delivery to ecommerce package
delivery◦ 50% volume generated from EC
Outsourcing condition in China◦ JD.com; self-operation◦ Amazon.com; regional self0operation◦ Vip.com; outsourcing ◦ Taobao, Tmall; outsourcing
Express Delivery
Growth rapidly in volume and revenue Value added service
◦ COD (cash on delivery); furniture assembly; in-store pickup etc.
Specialized service◦ Cold chain express delivery
O2O and last mile delivery Cross border transshipment
◦ New challenger for forwarding companies
Mega Trends for Express Delivery
Identification technology◦ Obtaining large number of real-time data in logistics operation ◦ Bar Code, RFID
Tracking technology◦ Obtaining and tracking the information of position, time status
of logistics units◦ GPS, GIS
Information sharing and handling system◦ EDI, POS◦ Customs clearance system, Inspection system◦ Order fulfillment system, WMS◦ ERP
Intelligent Logistics technology◦ The Internet of Things
Categories of Information System in Logistics
Big data era Ecommerce accumulating more data What’s the good use for customer centered
data?◦ Business decision◦ Products design – especially service products
design◦ Marketing and sales campaign◦ C2B; logistics and supply chain services◦ Crowd-fundnig, P2P
Big data – Customer centered data
Paperless customs clearance system◦ Single window system
Connect forwarders, carriers, 3 PL, Customs, Inspection and quarantine, Tax departments of government, Port companies, Port Authority, banks etc.
Automatically get information (exchange rate, tax rates, products clearance process) you need, track the procedure of declaration progress
Log and enter data once for the whole process
Data sharing System for customer and forwarder
Inner land (dry port) system◦ Local declaration and port clearance ◦ Expand hinterland◦ Clearance after Release◦ Chances in the new model of clearance◦ FTZ
Data sharing System for customer and forwarder
IOT◦ Total Sensing◦ Reliable transfer◦ Intelligent processing
Application◦ Intelligent city◦ Intelligent transport◦ Intelligent tracking◦ Intelligent logistics◦ Intelligent industries
Logistics ◦ Transparent ◦ Convenient ◦ Automatic
3rd time Information Revolution
Future Issues: Intelligent Logistics
Provide a catch up solution for developing countries◦ Where low industrial concentration economy◦ Where multi-echelon agent distribution system◦ Where information cost were extremely high◦ Where international market were hard to reach◦ Where small business were hard to implement
Mobile ecommerce and platforms◦ Consumer are awakening
Logistics Change
Future Issues: Ecommerce
Revenues of Global logistics industries concentrated to Europe, Asia and North America
Asia: from global manufacture center to Global logistics center
9 out of 10 largest container ports of the world in the Asia in 2013
Future Issues: Asian Logistics
From 3Pl to LLP (Lead Logistics Provider)◦ Integrated logistics and supply chain service◦ Business ecological service provider◦ Specialization in one field◦ Specialization for one time / products
Future Issues: Logistics Integration and Specialization
Products◦ Shape design for logistics ◦ Package design for logistics ◦ Production line design for logistics
Business model◦ C2B design
Future Issues: Design for Logistics
Green Logistics Global logistics Emergency Logistics City Logistics Logistics Finance ……
Other future Issues
top related