Overview Logistics Ops in Fmcg

8/8/2019 Overview Logistics Ops in Fmcg

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CLoCS - ITB, 16 Januari 2010

Logistics Operation Overview

in FMCG Industry


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AGENDA

Market & DemandCustomerService

Operation Group(CSOG)

LogisticsOverview

Supply ChainThe Big Picture

SupplyChain

CustomerService

Distributors (GT)

KPITowards Zero

Inventory Model(TZIM)

Initiatives


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AGENDA



LogisticsOverview


SupplyChain

CustomerService

Distributors (GT)

KPITowards Zero


Initiatives


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Demand Potential Ranking among regions 2006 2010

based on growth, income per capita, population & distribution of income (1)

Region

Jakarta

Riau

North Sumatra

Nanggroe-Aceh D

West Sumatra

East Kalimantan

West Java

East Java

Central Kalimantan

PopulationGDP percapita

Expenditureper capita

Distributionof income Ranking

2

3

4

1

5

6

7

8

9

Source: LPEM University of Indonesia= Good = Not Good

MARKET & DEMAND (2)


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AGENDA



LogisticsOverview


SupplyChain

CustomerService

Distributors (GT)

KPITowards Zero


Initiatives


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Supplier

Information Flow

Product Flow

SUPPLY CHAIN

LOGISTICSPRODUCTION COSTUMER

DEMANDSUPPLY(Internal company) (external company)

Reconcile?

$$$$$


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SUPPLY VS DEMAND: RECONCILE?

They both areIf Sales gave me

an accurate forecast,

we would provide

excellent service

I dont know what

my customers will

want in 3 months

If manufacturingwere more flexible, well

able to meet customer

requirements

We can only be

so flexible at

reasonable cost

Manufacturing& distribution

Sales &Marketing

Who is right ?


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DemandPlanning Marketing

Supplier

MPS

Information Flow

Product Flow

SUPPLY CHAIN


DEMANDSUPPLY(Internal company) (external company)

Reconcile?


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Demand Planning / Forecasting

Strategic Plan

Annual Plan

Business Management

Supply

Demand

Demand drivers

Demonstrated capability

Supply Planning

Demand Plan

Demand - Supply Reconciliation

Cash-up(Turnover & Costs)

Business Decision Model

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct5

10

15

20

25

30

35

Volume

Demand Series Baseline

History Future

Event

Event

Innovation

Innovation

Baseline

Forecast

Event Forecast

Forecast New

Product

Forecast

Accurate forecast means higher turnover & lower cost


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AGENDA



LogisticsOverview


SupplyChain

CustomerService

Distributors (GT)

KPITowards Zero


Initiatives


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Supplier

Information Flow

Product Flow

LOGISTICS OVERVIEW



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TYPICAL DISTRIBUTION NETWORK

COSTUMER 1

COSTUMER 2

COSTUMER 3

COSTUMER 4

COSTUMER 5

COSTUMER 6

Manufacturing Site

(B)

Manufacturing Site(A)

Central DistributionCentre

DistributionCentre 1 Distribution

Centre 2

DistributionCentre 3

National Demand

Area Demand

National Supply

Area Supply

Area Demand


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Distribution Requirement Planning Distribution Network Management

How much stock to keep at every stock point Inventory levelworking capital

How much stock to replenish DRP calculation

Warehouse Management

Stock Priority Management

Warehouse Management Capacity planning

Stock keeping methods Racking configuration

Warehouse layout

Throughput Docking capacity unloading capacity

Dispatch capacity loading capacity

Stock Flow Management FIFO

FEFO

Shipment / Delivery Execution

Transportation Management Transport Provider


Distribution Cost Saving

Contigency Route Management

INBOUND LOGISTICS

Manufacturing Site(B)

DistributionCentre 2

Central DistributionCentre

Back OfFactory


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DISTRIBUTION REQUIREMENT PLANNING

DCCDC

LT = 21 daysW3W2

W1W0

Forecast = 500

Safety Stock = 5000

Projected On Hand = 3000

Stock Transfer Order = 2500

STO = Forecast + SS

Proj OH

Example:


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Customer Service

Customer Order Purchase Order Replenishment Order

Replenishment Model

Inventory Level

Order Fulfillment Shipment / Delivery Execution

Billing Process

Proof Of Delivery KPI Service Quality?

On Shelf Availability

Casefill On Time

Joint Initiatives Service Improvements

Efficiency Improvements

Warehouse Management Shipment / Delivery Execution

Transportation Management Transport Provider


Distribution Cost Savings

Contigency Route Management

OUTBOUND LOGISTICS

COSTUMER 2

Distribution

Centre 1Service Quality:

How much?Is it On time?

In Good Shape?Easy to Unload?


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PURCHASE ORDER & DELIVERY

Send PO

Customer/

Store

Principal

ERP

Order EntryPO Checking: SKU/Description Barcode Price Qty Total PO

Expedition

Report

PO Electronic

Synchronization

Order Processor

WHS

Send Expedition

Report

DELIVERY

PO Manual

Load Planning

PickingAssembling &

Loading

Data interface: SKU/Desc-Barcode PriceTotal PO Completeness

Allocation

Delivery Monitoring / Daily Monitoring : Est. Arrived Delivery Qty FulfilmentTotal PO

Order

Validation


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REPLENISHMENT ORDER

Replenishment Order = Stock Norm

Stock On Hand

Stock IT

*Inventory model manages STOCK NORM level


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REPLENISHMENT ORDER & DELIVERY

PRINCIPAL

Product Flow

In-transit

Stock

FACTORY

Supply

ULI WHS

CUSTOMER

ERP System

MARKET

Shipment

Order

Order

Daily Sales & Stock

Generate Order Parameter Setup Database

Information Flow

Intransit Data

KPI: Service Quality

Custome

Product

Sourcing Whs

Sch. Date & Req. Date

Etc.


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AGENDA

Market & DemandCustomer

ServiceOperation Group

(CSOG)

LogisticsOverview


SupplyChain

CustomerService

Distributors (GT)

KPI Towards ZeroInventory Model(TZIM)

Initiatives


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MEASUREMENT

CCFOT(%) provides the Loss tree framework for capturingService, Efficiency and On-time Losses together

Internal Company reporting is consistent CCFOT

Reducing CCFOT loss areas would drive improvement ofCustomer Service KPIs

CCFOT =Qty Delivered On Time

Customer Order

*Figures are not actual data

0.30% 0.30%4.30%

17.40%

31.70%

46.10%

Stock Availability

Warehousing & Transport

Not Assigned

Customer Related

Commercial Issues

Order Management

Example Of CCFOT Loss:


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AGENDA

Market & DemandCustomer

ServiceOperation Group

(CSOG)

LogisticsOverview


SupplyChain

CustomerService

Distributors (GT)

KPI Towards ZeroInventory Model(TZIM)

Initiatives


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Logistics is about

Cooperation

(UsNOT you & i)

INITIATIVES


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Service Improvement Electronic Data Interchange Advance Shipment Notification

Integrated Promotion Activity Planning

CPFR

VMI On Shelf Availability

Efficiency Night Delivery Holiday Delivery

Palletized Delivery Distribution Bypass

Backhauling

Retailer Centralized Delivery

Logistic Discount Agreement

INITIATIVES


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Documents

Overview Logistics Ops in Fmcg