ppt-管理信息化-汽车制造行业的物流和供应链管理(ppt20)英文版-供应链管理

1,Auto Logistics and Supply Chain Management Summit 2003,The Practice of VMI in China,2,Agenda,Our understanding of the automotive logistics needsWhat is VMI definition, procedures and benefitsChallenges of VMI in ChinaCase studyBrief introduction to China Logistics Company,3,An automotive OEMs logistics needs cover both inbound and outbound operations of parts and finished vehicles,Plant,Suppliers,Consolidation and Loading Center,Service Parts Distribution Center,Logistics for Production Parts,Logistics for Service Parts,Logistics for Complete Vehicles,Dealer,Dealer/Service Station,Bonded Warehouse for Import Parts,Our understanding of the automotive logistics needs,4,Supply chain management (SCM) is the strategic management tool that coordinates the material and information flows across the value chain to support adaptiveness,5,“Demand-pull” value chain requires the companies to be flexible and able to “control” a large part or the entire supply chain,Suppliers,Manufacturing,Demand indirectly drives manufacturing volume through forecasts,Warehouse,Wholesale/Retail,“Supply-push” Logistics Chain,Suppliers,B2B Exchange,Manufacturing,Direct Delivery,“Demand-pull” Logistics Chain,Manufacturing driven by actual demand,The rate of supply was set by the manufacturer in advance, based on expected demandIt was the role of the logistics providers to ensure a just-in-time supply of components,The rate of manufacture is determined on a real-time basis by the rate of demandWhile this model is more efficient, it requires perfect integration of all logistics operations within one process,Source: Lehman Brothers, A.T. Kearney Analysis,6,Third-party logistics providers (3PLs) can directly, or through a partner network, provide a range of services,ProcurementPayables managementSupplier payment and consolidated invoicingVendor performance monitoring and exception reportingJoint process improvement with vendors,Overall freight coordinationFull load truck carryingLess-than-load truck carryingSmall lot (less than 150 pounds) carryingOrder consolidationDelivery schedulingExpediting special / rush ordersReturning and reprocessing undeliverable ordersDelivery tracing Performance and exception monitoring and reporting,Overall inventory management Optimizing supplier order schedulesOptimizing dealer order schedulesCertification of incoming shipmentsBar codingPerformance and exception monitoring and reportingTracking and Reporting Systems accessible via InternetMaterial Resource Planning,Order preparation / assembly / consolidationSourcing of packaging materialsPrinting of corrugate and/or linerboard materialsLabelingShrink wrapping of cases and pallets,Freight and Distribution Coordination,Warehousing and Inventory Management,Minor Assembly and Packaging,Procurement,7,Difference between traditional business model and VMI model,8,Simplest VMI workflow,Manufacturer,Suppliers,2,3,4,1,The manufacturer approves the purchasing terms with suppliers, including the commonly agreed inventory responsibility and maintenance scheme.The manufacturer sends product activity data to the supplier. This product activity is based on warehouse movement of product consumed at the assembly line level.Based on the agreed inventory maintenance scheme, the supplier edits, approves and releases the suggested purchase order.The manufacturer approves this purchase order and send it to the supplier.,9,Consolidation and Loading Center is commonly used to reduce the complexity in coordinating multiple vendors,Quality of delivery services from vendors to line-side might be different Vendors shipping volume might be very small given more frequent “demand-pull” ordersVendors might need a large line-side buffer to comprise a full-truck load and make-up a safety stockLarge line-side area is needed to accomplish unpacking, kitting, and possibly sequencing of parts before feeding to assembly lineIndividual vendors might rent warehouses for themselves, with limited scale to share with other vendors,Consistent delivery service to line-sideOptimal shipping volume to reduce transportation cost and inventory costReduced requirement on line-side warehouse space Coordination between suppliers and production line possible to promote synchronization and JIT,How Consolidation and Loading Center Approach Helps,Potential Issues in Simplest VMI Model,10,Win-win situation can be achieved for both manufacturers ,Planning and ordering costs for the manufacturer go down due to the responsibility being shifted to the vendorImproved customer service vendors can better respond to customers inventory needs in terms of both quantity and locationReduced demand uncertainty by constantly monitoring customers inventory and demand stream, the number of large, unexpected customer orders will dwindle, or disappearThe manufacturer is more focused than ever in providing good service and the overall service level is improved by having the right product at the right timeSpeed and accuracy of data processing are improved due to computer-to-computer communicationsReduced total logistics cost and improved cash-flow,11, and vendors,Smoothing demand the supplier is able to smooth the peaks and valleys in the flow of goods, and therefore to keep smaller buffers of capacity and inventory. Better coordination the supplier has better opportunities to co-ordinate the shipments to different customers, such as scheduling - either postponing or advancing - shipments according to production schedules, customer inventory situations and transportation capacityReduced inventory requirements by knowing exactly how much inventory the customer is carrying, a vendors own inventory requirements are reduced since the need for excess stock to buffer against uncertainty is reduced or eliminatedSpeed and accuracy of data processing are improved due to computer-to-computer communicationsReduced total logistics cost and improved cash-flow,The binding of customers to vendors once relationship is established, customers will be reluctant to endure the amount of work needed to switch vendors,12,Currently, most automotive manufacturers in China consider Consignment Inventory as VMI,VMI are usually used as a method to realize “zero inventory” while the parts are sitting in manufacturers warehouse, vendors are forced to finish the transfer if parts ownership until assembly is doneConsignment Inventory, on the other hand, are the exact practice of most vendors and manufacturers vendors are not involved in inventory and logistics decisions,Challenges of VMI in China,13,This concept/belief reveals the transactional relation between suppliers and manufacturers,Price-driven sourcing decision without in-depth understanding of cost structureLogistics cost and material cost are commonly added up as a lump-sum “CIF price”Few suppliers are willing to “open cost” to their customers unless margin is very thinSupply chain management targets forcefully drive suppliers to reduce price to maintain business relationPayment terms and payment situation constrain suppliers from getting inventory information under consignment inventoryInventory movement means actual consumption of products, immediately starting the manufacturer payment cycleNeither manufacturers and suppliers make significant investment in building EDI to facilitate data sharing,Without transparent data sharing and collaborative supply chain planning, lose-lose situation arises due to higher operation (transaction) cost,14,To avoid the potential conflict between manufacturers and suppliers, an independent third party can be employed to help manage the VMI initiative,Third-party consolidates the shipment from various suppliersThird party facilitate the information exchange between manufacturer, consolidation and loading center, and the suppliersInformation is neutral to both suppliers and manufacturers, signaling transfer of ownership according to pre-agreed termsThird-party can help manage inventory, unpacking, kitting, sequencing and delivery to line, milk-running the inbound parts and potentially placing purchase order on manufacturers and suppliers behalfOwnership remains unchanged before or after VMI is implemented,15,However, internal resistance against outsourcing the VMI service remains generally very strong,No common understanding of how third-party can help smooth the VMI operationStaff currently in charge of inbound logistics are afraid of losing jobsGeneral belief to hold potential “profit” within the companyNo cost benchmark to compare the overall cost under third-party managementResistance to share inventory data with third-partyA cultural adjustment as well as a significant reorganization of everyday job duties is required to accomplish a major change of company operations,VMI will achieve its acceptance gradually, especially after the anticipated competitive environment in 2-3 years,16,A Chinese OEM outsourced its inbound logistics to China Logistics for operating assets, skills and better management,OEM Inbound Logistics,The OEM was preparing for mass production of a new passenger car model on a totally new plantIn the past, the suppliers were asked to deliver all components to the line side warehouseThere are not enough in-house operation staff and space to cope with expansion of productionThe management of the OEM would like to focus on manufacturing of vehicles, while outsource most of its logistics to third party,China Logistics refurbished a 4,500 Sq. M. warehouse situated 8 km from the assembly line In addition, emergency orders can be dispatched within ten minutes of notification and delivered to line side within 30 minutesParts are stored, picked and marshalled according to where they are used on the assembly line, with loads configured in direct-to-line orderScale ramped up from 40 units per day in November 2002 to 180 units in March 2003In a typical week, the China Logistics team handles more than 3,000 different product lines and makes some 250 just-in-time deliveries to lineside receiving points,China Logistics Approach,Situation,Selected Case Studies,17,There are several different factors to consider in designing an appropriate inventory level,Orderto-delivery lead timeOrder size and frequency,Annual throughputPer SKU demandComplete vehicle sales volumeCar parc (penetration rate),Total number of SKUsKitting or other needs,Purchasing lead timeTransportation lead timePurchasing order size and frequency,Customer Needs,Volume Forecast,SKU Complexity,Inbound Process,Solution Selection,Total Cost,Transportation costWarehousing costLabor cost,Level of Integration,Source of materials (external suppliers or OEM factory)Location of suppliers,OEM Inbound Logistics,18,Current Operational Characteristics related to Materials Management,20+ domestic and 50 +overseas suppliers,Supplier,1,Customer involving:,Logistics Dept,Quality Dept,Planning Dept,Supplier,X,Supplier,2,Supplier,3,Supplier,22,Operational characteristics:,Component Supplier Inbound Logistics,At present, Customer X directly contact a multitude of suppliers, to Place P/O;Monitor P/O status, change P/O if necessary; Receive and unpack parts, store and pickingInspect and sort parts;Deliver to assembly line;Check documentation and finally pay invoice.It involves functions across the customer: Production PlanningQuality ControlLogistics and Materials ManagementITFinance,19,Major capacity and quality issues arises when 50% annual growth is anticipated,Under-capacity for warehousing spaceThere are constraints as production capacity needs to be boomed to meet increasing customer demandsManufacturing flexibility is lowWhen parts ordered before are already on their way whi