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International Logistics Management

International Logistics Management. dr Marian Krupa. AGENDA:. Introduction to the International Logistics Management International Supply Chain Management (SCM) IT and International Logistics Management – ERP software overview International transportation systems

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International Logistics Management

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  1. International Logistics Management • dr Marian Krupa

  2. AGENDA: Introduction to the International Logistics Management International Supply Chain Management (SCM) IT and International Logistics Management – ERP software overview International transportation systems International logistics structures and networks management Global Logistics Excellence – case study Strategic and operational information management in Logistics - towards Global Business Intelligence (BI). dr Marian Krupa

  3. 5. Information Management in International Logistics SCM Excellence(by SupplyChainDigest) Global Logistics CapabilitiesDiagnostictool (by RedPrairie) Business Intelligence (BI) platforms SCM (by SAP BO)

  4. SCM Excellence

  5. Logistics Excellence The 10 Keys toGlobal Logistics ExcellenceIntroduction: • Supply Chain Digest has identified 10keycapabilities, encompassing processes,skill sets and technology, thatcompanies striving to achieve globallogistics excellence must develop. • “Best practice” (global business models) in thiscomparatively new discipline(SCM) is beingredefined on a continuous basis - SupplyChainDigest. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  6. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 1. Delivered CostManagement: • Total Delivered Cost Managementinvolves the ability to analyze andpredict the total supply chain costsfrom the source of supply to its finalpoint of distribution. • Itis required to makeoptimal sourcing and logisticsdecisions, and to ensure thatexecution is aligned with upstreamsourcing decisions (supplychain partners collaborationissue). The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  7. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 1. Delivered CostManagement: The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  8. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 2. Global Logistics ProcessAutomation: • There are still manymanual steps in most organizationsinarea of global operations. • The reality is that global logisticsexecution is simply much morecomplex than domestic transportation – logistics operations. • The ultimate goal in globallogistics execution: “one touch”information flow for all activities (workflow management). The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  9. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 3. End-to-End Visibility: • Visibility - ability to answer verybasic logistics (operational) questions: Where is it? Whenwill it arrive? • Is the expected datedifferent from the planned date? • Visibility systems should make it easyto find and drill down on informationfrom many points of reference, suchas the purchase order number, freight bill, etc. • In a global logistics visibility of theinformationsystem,the timeliness and accuracy ofinformation is critical. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  10. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 4. Supplier Portals and ASNCapabilities: • Integration (withininformationvisibility) with offshore suppliers canbe challenging, but it is essential tomanaging the global supply chain. • ACCURATEAdvance Ship Notices(ASNs) from overseas suppliers iscritical for both effective inventoryplanning and to streamline theinbound flow of goods. • Global logistic leaders reduce the timeand cost of inbound processing byenabling their suppliers to produceASNs and properly label the goods (IT). The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  11. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 5. Total Product Identification andRegulatory Compliance: • Supply chain security concerns aregrowing, and are certain to increase. • Partnership Against Terrorism (CTPAT),Operation Safe Commerce, andmany others place an increasinglydifficult array of burdens in theexecution of global logistics. • Technology provides some of theanswer here, and will increasingly doso, especially as we enable completetrack and trace and other capabilitiesthrough RFID-based systems. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  12. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 6. Dynamic Routing: • Many international logistics flows tendto be fairly static after they aredesigned. • Since we face the high level of volatilityinlocal and global economyability to quickly andaccurately determine thetransportation alternatives and costswould be extremely valuable. • Supply chain agility (dynamicrouting) and riskmitigation (reduction) will be anincreasingly common attribute ofsupply chain leadersdecisions. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  13. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 7. Variability Management: • Variability (permanent change) is the Achilles Heel of longsupply chains. • There is a significantlevel of variability in internationallogistics moves, with a tremendousimpact on inventory levels andcustomer service (see illustration). • Reducing the variability byeven 1-2 days can drive millions ofdollars in inventory savings and reducelost sales due to stock outs. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  14. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 7. Variability Management: SAV: Savla NYC: New York http://www.infodriveindia.com/traderesources The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  15. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 8. Integrated International andDomestic Workflow: • Mostlogistics companies were forced to manage the combinedinternational and subsequent domesticmoves really as separate processesfrom both a planning and executionperspective. • There reallyweren’t solutions available capable ofend-to-end optimization. • Logistics leaders are deployingtechnology that enables them tohave a single “work space” thatcontains both functionality anddata across the full internationalplanning and execution lifecycle. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  16. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 9. Integrated Planning andExecution Platform: • One of the challenges of globallogistics is that the information thatdecision-makers need tends to be inmultiple places, and is hard to access. • Data couldbecome real-time forscheduling, in-transit visibilityand performance measures ofcarriers. • By implementingdedicated software, transportation plannershave a full picture of the totaldelivered costs of the integrateddomestic and international legs. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  17. Logistics Excellence The 10 Keys toGlobal Logistics Excellence 10. Financial Supply ChainManagement: • International SCM is about themanagement of materials, informationand cash. The reality is that in mostcompanies and most supply chainprocesses, the “cash” element of thisdefinition is not really connected. • Letters ofCredit, financial settlement processes,and other financial related capabilitiesmust often be mastered to expand on the international market. • Global logistics leaders will closely linkthe movement of cash and excellencein the Financial Supply Chain. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  18. Logistics Excellence The 10 Keys toGlobal Logistics Excellence Conclusion: • Even sophisticatedcompanies that have more globalsupply chain experience and wereearly adopters have only automated asmall fraction of their global tradeoperations [Gartner]. • Significant strides arebeing made in many areas of globallogistics software, with many vendorsnow able to offer relativelycomprehensive suites of solutions thataddress many if not most processrequirements (10 Keys of Global Logistics Excellence). The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  19. Global Logistics Capabilities Diagnostic tool

  20. Global Logistics Capabilities Global Logistics CapabilitiesDiagnostic– intro: • The diagnostic tool (by RedPrairie) gives you a good idea of your capability position vis-à-vis both other companies andagainst your potential for improvement in both capability and result (benchmarkapproach). • It can be used to develop aprioritized roadmap for improvement in people, process and technologywithin global logistics management. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  21. Global Logistics Capabilities Global LCD – FinalScore Ranking: • 0 to 40 points: Your company is significantly behind the average company in terms of globallogistics capabilities. • 40-60 points: Your company is probably about average for the market today, though many arerapidly adding capabilities. • 60-80 points: Your company is well ahead of most other companies, and you are deliveringmajor benefits to your lines of business and shareholders. • 80-100 points: You are a global logistics leader; probably fewer than 5% of companies fall intothis category, and we do not believe any could currently score a perfect 100. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  22. Global Logistics Capabilities Global LCD – questionnairestructure: • Section A: Total Delivered Cost Management / Global Logistics Process Automation. • Section B: End-to-End Visibility / Supplier Portals and ASNCapabilities. • Section C: Total Product Identification andRegulatory ComplianceDynamic Routing. • Section D: Variability ManagementIntegrated International andDomestic Workflow. • Section E: Integrated Planning andExecution Platform / Financial Supply Chain Management. The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  23. Global Logistics Capabilities Global LCD – detailedinstruction: • To evaluate your company’s levelfor each capability, enter: • 0- if you aren't even at Manual Level (no procedureexist), • 3- for only Manualexecution, • 7 - for Basic Competence Level capabilities (industry standard), and • 10- for Leadership Level capabilities – benchmarklevel The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  24. Global Logistics Capabilities Global LCD – questionnaire: The 10 Keys toGlobal Logistics Excellence, Red Prairie, Springboro Ohio USA.

  25. Business Intelligence (BI) platforms

  26. BI in International Logistics Mgmt BuisnessIntelligence– definitions: • BIsimplify data manipulation, allowing users to access, navigate, analyze, format, and share information across a corporate environment. • BIallows a wide range of processes, from search and navigation to advanced analytics, enterprise query, reporting and analysis, dashboards and visualization, and information infrastructure management http://help.sap.com/bobi

  27. BI in International Logistics Mgmt BuisnessIntelligence Triangle [MK]:

  28. BI in International Logistics Mgmt BuisnessIntelligence: Global Logistics Headquarter

  29. BI in International Logistics Mgmt BI: Analysis and benefits • Logistics analysis– Deliver integrated, accurate, and timely intelligence reportsacross borders. Analyze loads, routes, carriers, tendering, bookings, customs filings, freight audit and payment on a by-order basis. http://logisticsviewpoints.com/wp-content/uploads/transplace-supplier-complaince-dashboard.jpg

  30. BI in International Logistics Mgmt BI: Analysis and benefits • Financial analysis– quick financial evaluation of business performance. EVA typeanalysis, „what-if”, benchmarkingetc. http://www.evadimensions.com/investor_EVAExpress

  31. BI in International Logistics Mgmt BI: Analysis and benefits • SALES analysis– quickevaluation of sales performance. Product life cyclemgmt., portfolio and salesofficesmgmt, „what-if”, etc. http://www.solemis.com

  32. BI in International Logistics Mgmt BI: Analysis and benefits • Budgeting and controlling – quickevaluation of overall business performance. Profitabilityevaluation by department, product, region etc. Budgetplanning and control. http://www.solemis.com

  33. BI in International Logistics Mgmt BI: Analysis and benefits • Strategic management – cause and effectanalysis, multidimensionalanalyticalmodels, long term performance analysis.

  34. BI in International Logistics Mgmt Business Intelligence: examples • SAP ERP • SAP BI OnDemand • SAP Xcelsius

  35. BI in International Logistics Mgmt Business Intelligence: SAP ERP

  36. BI in International Logistics Mgmt Business Intelligence: SAP BI onDemand

  37. Business Intelligence: Xcelsius

  38. Business Intelligence: Xcelsius

  39. Business Intelligence: Xcelsius

  40. Business Intelligence: Xcelsius

  41. Questions ? • dr Marian Krupa

  42. ExamQuestions (6): • Highlightwithshortcommentallkeys to Global Logistics Excellence. • Where Do the Lost SavingsGofrom offshoringand global sourcing initiatives? • Explain the Lack of Global LogisticsTechnology Enablement. • Whatisthe Global Logistics CapabilityDiagnostictool? • Whatistheadvantage of implementing BI solutionsin global SCM?

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