科尔尼－供应链ppt课件

1、Discussion paperShanghai, December 29th, 2002Challenges facing the pan-European supply chainExecutive summaryOverview: The pan-European supply chain faces four major challenges: Redesign of network, in-versus outsourcing, consolidation of supplier relationships and best practice tenderingRedesign of

2、 network is driven by forces outside of the supply chain. These external forces could be, e.g., consolidation of manufacturing base or change in service requirementsIn- versus outsourcing: Outsourcing provides strategic advantages, but it does not solve the problemConsolidation of supplier relations

3、hips: Trust and transparency are key for establishing long-term partnerships with suppliersBest practice tendering: Insight about key performance drivers of operation will guarantee a successful tendering processBenefits: Applying best practices to resolve these issues can lead to significant compet

4、itive advantages Four major challenges need to be mastered to establish a pan-European supply chainOverview1. Redesign of network2. In-versus outsourcing3. Consolidationof supplier relationship4. Best practice for tendering processRationalize European manufacturing locations and capacityRadically ch

5、ange service level to strengthen competitivenessConsolidate assets and free cash to finance growthExpand management capacity in core business areaOptimally use economies of scale for supply chainReduce in-house administration to manage interface to service providersEnsure transparency and consistenc

6、y of cost and performanceEnsure optimal target setting and performance commitment“Quick Win versus strategic advantagesOne-time benefit versus continuous improvementCreating a pan-European Supply ChainMain driverDecision-making criteriaBenefitsRedesign of networkType 1: Lead time driven Market manag

7、ed replenishment (MMR)Type 2: Optimal factory utilizationFactory managed replenishment (FMR)Type 3: High product Region managed replenishment (RMR)Three types of replenishment concepts reflect needs of short lead time, optimal factory utilization and high product availability producesbased on market

8、 replenishment plan replenishesmarkets based on mutually agreed rules producesbased on regional replenishment plan coordinates all replenishmentactivities defines replenishment plan (control total chain inventory) defines inventory levels and develops sales forecast defines inventory levels and deve

9、lops sales forecast defines sourcingand monitors inventories defines sourcingand monitors inventoriesFactory .Region .Market .Redesign of networkTodayShipment forecastOrderOrder quantityKey drivers for redesigning a network are service requirements, inventory policies, planning basis and shipment ch

10、aracteristicsRedesign of network100% mindsetMarket levelFactory levelAgreed service level is .Inventory policies at .Mid-term planning is based on Shipments are triggered by Shipment quantity according to .FMRDepot/brand inventory target and lead timeChain levelSales forecastMarket demandReplenishme

11、nt needs and factory optimizationClient Example2-3 inventory levels1 inventory level2 inventory levels1 inventory level1 inventory levelFactory warehouse with inventoryMarket stockin 1 or 2 stock levels before POSFactory warehouse with all inventory“Parcel Servicefrom factory warehouseFactory wareho

12、use with inventoryStock at 1st level “regional warehouseBuffer at factory (e.g. 2-5 days)The ideal physical network consists of one stock level between factory and POSRedesign of networkNotes:(1)This level may not exist(2)Local warehouses and/or transshipment pointWarehouseFactory1st level Warehouse

13、sLocal Warehouses/TP1)POS/PORSWarehouseFactoryPOS/PORSWarehouseFactoryLocal Warehouses/TP2)POS/PORSBufferFactory1st level WarehousesPOS/PORSWarehouseFactoryLocal Warehouses/TPPOS/PORSStock at 1st level “central in-market warehouseStock at 1st level “regional in-market warehouseTypicalSituationScenar

14、io 1 “Factory WarehouseScenario 2“Factory and regional warehouseScenario 3“Central WarehouseScenario 4 “Regional warehouseCombined scenarios will balance inventories and transport costsProsLow transportation costsShort lead times to POSConsMedium stock planningMedium stock levelMedium transportation

15、 planning2 handling steps for part of the volume between production and POSScenario 5 “CombinationsRedesign of networkWarehouseCentral Warehouse(s)Local POSPOSPOSCentral warehouse of A-customersTransshipment pointDirect delivery full-truck loadDaily replenishment half/full pallets onlyNo storage, bu

16、ffer onlyExampleWarehouseFactory1 level Warehouse(s)POS/PORSTransshipmentThe approach is to identify sequential changes based on the existing model and as is costsCurrentNew network volumes .+ new production .+ new network .+ new procurementVolume factorProduction factorNetwork factorProcurement fac

17、torAs is CostsModeledCostsRedesign of networkClientExampleIn- versus OutsourcingThe ever increasing level of outsourcing reflects concentration on core competenciesIn- versus OutsourcingSpecialistsTransportationInternal distribution/warehousingTransportation managementITValue-added activitiesOrder h

18、andlingInvoicingInventory managementTotal logisticsManufacturing CompaniesRespondents That Have OutsourcedChemicalIndustryCoreCompetencesSource: A.T. Kearney surveyCompanies like the cost effects from outsourcing, but fear losing controlReasons for OutcourcingAccess to other marketsMake cost visible

19、Access to outside expertiseIncrease cost variabilityImprove service qualityReduce costChemical companies 72%Confidentiality/Intellectual pro-perty protectionMore expensive than in-houseRequired capa-bilities not availableLoss of controlReasons Against OutcourcingThe role of outsourcingSource: A.T. K

20、earney surveyOutcourcing of transportation and logistics services provides infrastructure advantagesThe role of outsourcingInfrastructureSharing of assetsSharing of networksSharing of technologiesRisk and capitalsharingAvailabilityControlShipsTanksTerminalsPipelinesTruck fleetsTerminal densityDistri

21、bution pointsCross-docking pointsTransportation partners (regions, products, sizes)Service partnersSchedulingTracking and tracingNavigationElectronic document exchange/processingBenefitsExamplesFour key success factors need to be ensured in advance: Never outsource operational problems to service pr

22、ovidersKey Success Factors for OutsourcingFeasibilityCheck availability of competent service providers with enough capacityVerify possibility to transfer knowledgeable operators to 3rd partySet feasible targets for outsourcingDependencyLoss of competence and experience acquisition Loss of qualified

23、employees long termConvenience to exchange service providersLimited power to influence service providers if low volumeAdministration costFine tune interfaceInstall information managementEliminate functional redundanciesReduce multiple stages in value chainLimit transformation cost end ensure benefit

24、 trackingManagement/controlling processShare productivity gainMaintain and sustain quality and service levelUnderstand and define performance measurementsEnsure transparency of key cost/performance dataInstall performance controlling for service providersThe role of outsourcingConsolidation of suppl

25、ier relationshipsThe goal of enhancing supplier relationships is to reduce labor costs, ensure shared resources and improve productivityConsolidation of supplier relationshipsTargeted savings opportunitiesProductivity improvementShared resourcesLabor cost reductionRedesign handling process, implemen

26、t a new incentive system, etc.Share handling resources (labor, forklifts, etc.) and stocking capacity with other warehouse operations in surrounding area to compensate for business fluctuationsAdapt compensation of current staff to market levelLimit overtime by introducing flex-timeEstablishing mutu

27、ally beneficial and long-term partnerships calls for trust and transparencyOpen bookFair profit marginActivity- and cost-based charge with performance target (ABC)Flexibility (shared resources)Continuous improvement Consolidation of supplier relationshipsAn uniform and consistent methodology is a mu

28、st to consolidate pan-European supplier basesConsolidation of supplier relationshipsFixed storageFixed operating costsVariable handlingManagement feesTotal US$ mil.4.23.11.31.0A14,000Defining CriteriaWarehouse capacity/palletB19,500C7,500DCost Breakdown of Four Categories (in % of Total Cost)Example

29、Warehousing220,000Pallet throughput220,00075,000ManualManual or automated warehouseAutomatedManualManualModerateAmount of extra handlingLowHighModerateHighCompetition for warehousing in locationLowModerateHighUKCountryFranceBelgiumSwedenBest practice for tendering processImprovement opportunities ca

30、n be realized by initiating a series of actionsPlanning improvements:Reduce overtime by matching staffing with activities (e.g. standard weekend staffing)Renegotiate requirements and charges for additional activitiesEnsure visibility of inbound shipments to contract warehousesImprovements in product

31、ivity by unbundling variable handling rates, identifying barriers to efficiency, and attempting to reduce impact where possibleReduction in operator profits - margins are hidden in numerous charges - once unbundled, a fair return can be negotiated Example: warehousingBest practiceThe savings estimat

32、e for warehousing is based on a review of each single warehouseBest practiceExample of a pan-European Warehousing Network: Total Cost US$/ Plt-throughputFinlandSpainN. IrlandIrelandBelgiumItalyUK1UK 2SwedenDenmarkFranceUK 3UK 4Total Cost US$/pltSize of warehouse in 000 plt-throughput p.a.“Should cos

33、ts are estimated by conducting a detailed review of each contract, activity and invoice practiceBest practiceExample of a pan-European Warehousing Network: Variable Cost US$/ Plt-throughput% of mixed case handlingDenmarkUK 4BelgiumIrelandUK 2SwedenItalyUK 3FranceUK 1N. IrelandShould cost areaBenefit

34、sSavings of more than 10% can be realized by establishing a pan-European supply chainDeliveryTrucking3rd party warehousesPlant warehousingAdministrationSavings relative to base 0 (-4%) +4-5% 11-18%79%100%104%95%-96%82%-89%Network savings4-5%Procurement savings7-13%A.T. Kearney project experienceBenefits12%-13%12%-13%14%-17%18%-19%33%-34%Warehouse consolidation is a key driver to reduce inventoriesBenefitsWarehouse stock (MDM)Sept. 97 = 350Oct. 95 = 737July 96 = 547Aug. 96 = 529Sept. 96 = 490-34%ShortageSept. 97 = 150 articlesOct. 95 = 2.215 articlesJuly 96 = 645 articlesAug.