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        The logisticssystem<br />
Saturatedmarket<br />
Healthy market <br />
Ideas<br />
ProductLifecycle<br />
Proliferationof the range<br />
    Price war<br />
Quickleadtime…<br />… fast suppliers<br />
Tobe competitive:<br />Necessaryflexibility<br />
The lessons from Japan: The 4 strenght for a company<br />
Technolgy: to create needs<br />
 The involvementofhumanresources<br />
Quality<br />
Logistics<br />
The different stages of logistics<br />
Before production: <br />Material management<br />
Supply Management<br />
Rawmaterialsinventory Management<br />
                   Production Planning<br />
After production: <br />Distribution management<br />
Finishedgoodsinventory management<br />
Warehouse Management<br />
Transport Management<br />
Logistic Manager<br />
Must ensure …<br />
   The 7 right conditions<br />Right product<br />In the right quantity<br />In the right condition<br />In the right plac...
The 7 right conditions<br />
Why logistics?<br />
A well-organized flow of materials …<br />
… increases the turnover<br />
… because it reduces delivery time<br />
… and improves service levels<br />
But at the same time reduces costs<br />
Inventory cost: before<br />
Inventorycosts: after<br />
Warehouse costs: before<br />
Warehouse costs: after<br />
Transport cost: before<br />
Transport costs: after<br />
Integration of functions<br />
Because there’s an increasing need for logistics? The outsourcing<br />
The Outsourcing ….<br />
       allows respect for delivery times<br />
butincreases the flow ofgoods and information tomanage<br />
Because there’s an increasing need for logistics? To save resources<br />
           Logistics helps to save<br />
Thanks to BPR …<br />
Inventory and transport are razionalized <br />
Because there’s an increasing need for logistics? Customer service<br />
    Are reduced delivery times<br />
    Orders are completed<br />
What does make logistics<br />
Analyze the logistics system<br />
 Designing the logistics system<br />
Build the logistics system<br />
 Manage the logistics system<br />
This involves dealing with:Demand management<br />
  Collect and Control orders<br />
        Sales forecast<br />
This involves dealing with: Inventory management<br />
Location<br />
Coverage level<br />
This involves dealing with: Production planning<br />
Forecasting horizon<br />
 Programming system<br />
This involves dealing with: Supplying<br />
 Choise of supplier<br />
How and When to order?<br />
This involves dealing with: Distribution<br />
Distribution network<br />
 Supply logics<br />
  Warehouse Lay-out <br />
Transport<br />
This involves dealing with: Customer service<br />
What level of service to offer?<br />
This involves dealing with: Organization<br />
Which organizational structure?<br />
Which information system?<br />
   Which automation systems?<br />
THE ANALYSIS OF THE LOGISTICS SYSTEM<br />It’s necessarytomeasure:<br />- The levelofstocks- The levelof service<br />
Stocks affect the profit<br />
  Service affects the turnover<br />
Where is the leak?<br /> Where to intervene?<br />
THE ANALYSIS OF THE LOGISTICS SYSTEM<br />The operating cycle is estimated to:<br />
Establish the rationality .…<br />
… and coordination<br />
To eliminate the irrazionality …<br />
… and inefficiencies<br />
The analisys of the logistics system:<br />THE  INFRASTRUCTURES<br />
THE INFRASTRUCTURES<br />To verify that the logistics infrastructures of the company are adequate to accommodate the opera...
THE INFRASTRUCTURES<br />To verify that the logistics infrastructures of the company are adequate to accommodate the opera...
THE INFRASTRUCTURES<br />To verify that the logistics infrastructures of the company are adequate to accommodate the opera...
The analisys of the logistics system:<br />How should be the organizational structure?<br />
Modern<br />
Efficient<br />
The analisys of the logistics system:<br />When the organizational structure is the right one?<br />
There’s a process responsible<br />
The organization chart in defined<br />
The job descriptions and the procedures are formalized and applied<br />
  Working to target<br />
Inventory management<br />
Calculating turnover rate<br />IR = Dt / St<br />
Calculating duration index<br />ID = 1 / IR<br />
S average=(s n  + s n  + .. s n ) /T<br />1<br />2<br />n<br />1<br />2<br />n<br />Calculating weighted average stock<br />
Customer service: What is it?<br />
     Large assortment<br />
Minimum order<br />
    Delivery frequency<br />
    Efficiency information system<br />
   After sales support<br />
   Suitable packing<br />
  Adequate transportation<br />
Fast and reliable delivery<br /> Ho do you get?<br />
Speed<br />
   Product availability<br />
 Flexible production system<br />
Customer service: Ho do you measure?<br />
     Speed<br />
Punctuality<br />
Satisfied demand<br />
Average delay<br />
          Readiness<br />
Design of a new logistc system<br />We start measuring…<br />
The service level indicators …<br />
… analyzed from customer perspective<br />
Choice of strategy<br />
Innovation strategy:<br />  Flexible logistics<br />
Cost strategy:<br />  Economic logistics<br />
Service strategy:<br />   Rapid logistics<br />
   The main components of the logistics system are 4:<br /><ul><li>Distribution network
Transport
Stocks
Supply </li></li></ul><li>  Flexible Logistics:<br />Lean distribution network<br />
Rapid logistics:<br /> Branched distribution network<br />
Economic logistic:<br />Centralized distribution network<br />
Flexible logistics:<br /> Rapid transport<br />
Rapid logistic:<br /> Urgent transport<br />
Economic Logistics:<br />Economics transport<br />
              The product life cycle<br />The 4 stages:<br />Introduction<br />Growth<br />Maturity<br />Decline<br />What...
    Introduction: low sales<br />  Availability<br />
   Growth: increase sales<br />   Punctuality and quality<br />
Maturity: constant sales<br />   Customization<br />
Decline: reduced sales<br />         Low service<br />
Choiceof service level<br />  … tobe competitive<br />
       Ensure integration<br />
Formalize the design of the logistics system<br />Processes and methods<br />
Promotechange<br />
Forecast<br />
Are made to:<br />
Are made to:<br /> allocate resources better<br />
What are the main business forecast?<br />
Human resources requirements<br />
Raw materials<br />
 Energy<br />
Technological system  <br />
 Financial resources<br />
Finished products selling<br />
Forecasting horizon<br /><ul><li> very short (less 1 month)
 short ( from 1 to 6 months)
 medium (less two years)
 long (more than two years)</li></li></ul><li>Forecast details<br /><ul><li> item
 product family
 filial
 etc. etc.</li></li></ul><li>Supply logistics service in house contract: example<br />
Under contract services<br /><ul><li> bundling
 picking and handling
 external storage</li></li></ul><li>    Loading and unloading<br />
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The logistics system

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What is the company's logistics system? Because logistics is increasingly important? How do you design a new logistics system?

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Transcript of "The logistics system"

  1. 1. The logisticssystem<br />
  2. 2. Saturatedmarket<br />
  3. 3.
  4. 4. Healthy market <br />
  5. 5. Ideas<br />
  6. 6. ProductLifecycle<br />
  7. 7. Proliferationof the range<br />
  8. 8. Price war<br />
  9. 9. Quickleadtime…<br />… fast suppliers<br />
  10. 10. Tobe competitive:<br />Necessaryflexibility<br />
  11. 11. The lessons from Japan: The 4 strenght for a company<br />
  12. 12. Technolgy: to create needs<br />
  13. 13. The involvementofhumanresources<br />
  14. 14. Quality<br />
  15. 15. Logistics<br />
  16. 16. The different stages of logistics<br />
  17. 17. Before production: <br />Material management<br />
  18. 18. Supply Management<br />
  19. 19. Rawmaterialsinventory Management<br />
  20. 20. Production Planning<br />
  21. 21. After production: <br />Distribution management<br />
  22. 22. Finishedgoodsinventory management<br />
  23. 23. Warehouse Management<br />
  24. 24. Transport Management<br />
  25. 25. Logistic Manager<br />
  26. 26. Must ensure …<br />
  27. 27. The 7 right conditions<br />Right product<br />In the right quantity<br />In the right condition<br />In the right place<br />At the right time<br />The right customer<br />At the right cost<br />
  28. 28. The 7 right conditions<br />
  29. 29. Why logistics?<br />
  30. 30. A well-organized flow of materials …<br />
  31. 31. … increases the turnover<br />
  32. 32. … because it reduces delivery time<br />
  33. 33. … and improves service levels<br />
  34. 34. But at the same time reduces costs<br />
  35. 35. Inventory cost: before<br />
  36. 36. Inventorycosts: after<br />
  37. 37. Warehouse costs: before<br />
  38. 38. Warehouse costs: after<br />
  39. 39. Transport cost: before<br />
  40. 40. Transport costs: after<br />
  41. 41. Integration of functions<br />
  42. 42. Because there’s an increasing need for logistics? The outsourcing<br />
  43. 43. The Outsourcing ….<br />
  44. 44. allows respect for delivery times<br />
  45. 45. butincreases the flow ofgoods and information tomanage<br />
  46. 46. Because there’s an increasing need for logistics? To save resources<br />
  47. 47. Logistics helps to save<br />
  48. 48. Thanks to BPR …<br />
  49. 49. Inventory and transport are razionalized <br />
  50. 50. Because there’s an increasing need for logistics? Customer service<br />
  51. 51. Are reduced delivery times<br />
  52. 52. Orders are completed<br />
  53. 53. What does make logistics<br />
  54. 54. Analyze the logistics system<br />
  55. 55. Designing the logistics system<br />
  56. 56. Build the logistics system<br />
  57. 57. Manage the logistics system<br />
  58. 58. This involves dealing with:Demand management<br />
  59. 59. Collect and Control orders<br />
  60. 60. Sales forecast<br />
  61. 61. This involves dealing with: Inventory management<br />
  62. 62. Location<br />
  63. 63. Coverage level<br />
  64. 64. This involves dealing with: Production planning<br />
  65. 65. Forecasting horizon<br />
  66. 66. Programming system<br />
  67. 67. This involves dealing with: Supplying<br />
  68. 68. Choise of supplier<br />
  69. 69. How and When to order?<br />
  70. 70. This involves dealing with: Distribution<br />
  71. 71. Distribution network<br />
  72. 72. Supply logics<br />
  73. 73. Warehouse Lay-out <br />
  74. 74. Transport<br />
  75. 75. This involves dealing with: Customer service<br />
  76. 76. What level of service to offer?<br />
  77. 77. This involves dealing with: Organization<br />
  78. 78. Which organizational structure?<br />
  79. 79. Which information system?<br />
  80. 80. Which automation systems?<br />
  81. 81. THE ANALYSIS OF THE LOGISTICS SYSTEM<br />It’s necessarytomeasure:<br />- The levelofstocks- The levelof service<br />
  82. 82. Stocks affect the profit<br />
  83. 83. Service affects the turnover<br />
  84. 84. Where is the leak?<br /> Where to intervene?<br />
  85. 85. THE ANALYSIS OF THE LOGISTICS SYSTEM<br />The operating cycle is estimated to:<br />
  86. 86. Establish the rationality .…<br />
  87. 87. … and coordination<br />
  88. 88. To eliminate the irrazionality …<br />
  89. 89. … and inefficiencies<br />
  90. 90. The analisys of the logistics system:<br />THE INFRASTRUCTURES<br />
  91. 91. THE INFRASTRUCTURES<br />To verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :<br />1) CHECK THE DISTRIBUTION NETWORK;<br />
  92. 92. THE INFRASTRUCTURES<br />To verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :<br />2) CHECK THE FUNCTIONAL REQUIREMENT: - minimum, medium and maximum annual pallets stock per warehouse; - supply frequency; - structure and number of orders to evade; - type of product to manage.<br />
  93. 93. THE INFRASTRUCTURES<br />To verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :<br />3) CHECK THE TECHNICAL SPECIFICATIONS: - number of loading and unloading doors; - lay-out; - storage and handling system.<br />
  94. 94. The analisys of the logistics system:<br />How should be the organizational structure?<br />
  95. 95. Modern<br />
  96. 96. Efficient<br />
  97. 97. The analisys of the logistics system:<br />When the organizational structure is the right one?<br />
  98. 98. There’s a process responsible<br />
  99. 99. The organization chart in defined<br />
  100. 100. The job descriptions and the procedures are formalized and applied<br />
  101. 101. Working to target<br />
  102. 102. Inventory management<br />
  103. 103. Calculating turnover rate<br />IR = Dt / St<br />
  104. 104. Calculating duration index<br />ID = 1 / IR<br />
  105. 105. S average=(s n + s n + .. s n ) /T<br />1<br />2<br />n<br />1<br />2<br />n<br />Calculating weighted average stock<br />
  106. 106. Customer service: What is it?<br />
  107. 107. Large assortment<br />
  108. 108. Minimum order<br />
  109. 109. Delivery frequency<br />
  110. 110. Efficiency information system<br />
  111. 111. After sales support<br />
  112. 112. Suitable packing<br />
  113. 113. Adequate transportation<br />
  114. 114. Fast and reliable delivery<br /> Ho do you get?<br />
  115. 115. Speed<br />
  116. 116. Product availability<br />
  117. 117. Flexible production system<br />
  118. 118. Customer service: Ho do you measure?<br />
  119. 119. Speed<br />
  120. 120. Punctuality<br />
  121. 121. Satisfied demand<br />
  122. 122. Average delay<br />
  123. 123. Readiness<br />
  124. 124. Design of a new logistc system<br />We start measuring…<br />
  125. 125. The service level indicators …<br />
  126. 126. … analyzed from customer perspective<br />
  127. 127. Choice of strategy<br />
  128. 128. Innovation strategy:<br /> Flexible logistics<br />
  129. 129. Cost strategy:<br /> Economic logistics<br />
  130. 130. Service strategy:<br /> Rapid logistics<br />
  131. 131. The main components of the logistics system are 4:<br /><ul><li>Distribution network
  132. 132. Transport
  133. 133. Stocks
  134. 134. Supply </li></li></ul><li> Flexible Logistics:<br />Lean distribution network<br />
  135. 135. Rapid logistics:<br /> Branched distribution network<br />
  136. 136. Economic logistic:<br />Centralized distribution network<br />
  137. 137. Flexible logistics:<br /> Rapid transport<br />
  138. 138. Rapid logistic:<br /> Urgent transport<br />
  139. 139. Economic Logistics:<br />Economics transport<br />
  140. 140. The product life cycle<br />The 4 stages:<br />Introduction<br />Growth<br />Maturity<br />Decline<br />Whatis the right logisticsforeach?<br />
  141. 141. Introduction: low sales<br /> Availability<br />
  142. 142. Growth: increase sales<br /> Punctuality and quality<br />
  143. 143. Maturity: constant sales<br /> Customization<br />
  144. 144. Decline: reduced sales<br /> Low service<br />
  145. 145. Choiceof service level<br /> … tobe competitive<br />
  146. 146. Ensure integration<br />
  147. 147. Formalize the design of the logistics system<br />Processes and methods<br />
  148. 148. Promotechange<br />
  149. 149. Forecast<br />
  150. 150. Are made to:<br />
  151. 151. Are made to:<br /> allocate resources better<br />
  152. 152. What are the main business forecast?<br />
  153. 153. Human resources requirements<br />
  154. 154. Raw materials<br />
  155. 155. Energy<br />
  156. 156. Technological system <br />
  157. 157. Financial resources<br />
  158. 158. Finished products selling<br />
  159. 159. Forecasting horizon<br /><ul><li> very short (less 1 month)
  160. 160. short ( from 1 to 6 months)
  161. 161. medium (less two years)
  162. 162. long (more than two years)</li></li></ul><li>Forecast details<br /><ul><li> item
  163. 163. product family
  164. 164. filial
  165. 165. etc. etc.</li></li></ul><li>Supply logistics service in house contract: example<br />
  166. 166. Under contract services<br /><ul><li> bundling
  167. 167. picking and handling
  168. 168. external storage</li></li></ul><li> Loading and unloading<br />
  169. 169. Handling - a<br />
  170. 170. Handling - b<br />
  171. 171. Storage<br />
  172. 172. Picking<br />
  173. 173. Product bundling<br />
  174. 174. Palletizing<br />
  175. 175. … thanks for your attention<br />Dott. Vincenzo Presutto<br />info@studiopresutto.it<br />www.studiopresutto.it<br />
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