Leveraging technology to optimize the Hi-tech supply chain - Srini Varanasi ...
Enabling logistics excellence
1. Utilizing IT to enable
logistics excellence
Belinda Walter
14 November 2008
2. The challenge
Logistics plays a key role in the value chain
IT are changing the rules in a globalized economy
Excellence in IT logistics = better control of the chain
3. Risks of inefficient
logistics IT
Poor
Tracking
Lead times
Data quality
Reports
Dependency
Compatibility with
customers & suppliers
Global overview
7. Reliable quality
Implement standard Q-
checks and processes
Key performance
indicators for end to end
visibility
Enable zero defect
strategy with both
customers and suppliers
Total product
identification and
regulatory compliance
9. Fast delivery
Global logistics process
automation
Supplier portals and ASN
capabilities
Variability management
Integrated international
and domestic workflow
Integrated planning and
execution platform
Round the clock synchronization of material and information flow is becoming a key success factor.
Proper synchronization = transparency for all system users both internal and external (suppliers / customers)
Quality: reliable distribution structure (warehouse / transport)
Cost: realistic costs taking into account customers’ best interests
Delivery: quick response to customer
What is end to end visibility? It starts with the ability to answer all basic questions: where is it? When will it arrive? Is the expected date different from the planned date and if yes, why? (Source: Supply Chain Digest, The 10 Keys to global logistics excellence).
Total delivered cost management involves the ability to analyze and predict the total supply chain costs from the source of supply to its final source of distribution .
Instead of following static logistic flows, dynamic routing enables logistic leaders to ‘rate shop’ for the most effective combination of carriers, routes and third parties such as freight forwarders that will meet delivery constrains, in a fashion more consistent with how domestic transportation is managed.
Financial supply chain management = software solutions providing financial supply chain capabilities and services, associated with modules for generating import and export documentation.
(Source: Supply Chain Digest, The 10 Keys to global logistics excellence)
The aim of global logistics process automation is to cut manual steps, which are time-consuming and of low value activity. With the right IT support efforts can be concentrated on planning and continuous improvement instead.
Suppliers portal to achieve visibility over offshore suppliers. The ability to receive timely, accurate Advance Ship Notices (ASNs) from overseas suppliers is critical for inventory planning and to streamline inbound flow of goods.
International shipments inbound or outbound are subject to considerable variability in delivery times. Logistics leaders use supply chain data and performance management systems to better understand both the level of supply variability and the root causes of that flux.
Instead of splitting international and subsequent domestic moves, logistics leader are deploying IT systems that enable them to have a single ‘work space’.
(Source: Supply Chain Digest, The 10 Keys to global logistics excellence)
