GLOBAL SUPPLY NETWORK COORDINATION AND COLLABORATION

2. OVERALL SCHEME
Module M1 COMPANY MANAGEMENT
Module M2 PHYSICAL INTERNET
Module M3 SUPPLY CHAIN DIGITALISATION
Module M4 ANALYTICS. GLOBAL, MANUFACTURING AND LOGISTICS KPIS

3. digitalization
in logistics
M2. PHYSICAL INTERNET

4. M2. PHYSICAL INTERNET
2.1. Physical Internet, Definition And Topics
2.2. Horizontal Collaboration
2.3. Systems & Technologies For Interconnected Logistics
2.4. Global Supply Network Coordination And Collaboration

5. INDEX
2.4. Global Supply
Network Coordination And
Collaboration
2.4.1. Business Process Models
2.4.2. Innovative Management
Models
2.4.3. Business areas and KPIs
2.4.4. Data and optimization of
business results. Success
Stories

6. INDEX
2.4. Global Supply
Network Coordination And
Collaboration
2.4.1. Business Process Models
2.4.2. Innovative Management
Models
2.4.3. Business areas and KPIs
2.4.4. Data and optimization of
business results. Success
Stories

7. Business Process Models
Currently, any global business integration goes through an analysis of its processes
and their interconnection. More and more companies are turning to process modeling
as a starting point for defining their business.
BPM is a discipline that focuses on improving and optimizing processes within an
organization to achieve efficiency, effectiveness and quality in its operations.
BPM: BPM, or Business Process Management, is a methodology that seeks to improve,
control and optimize an organization's processes to achieve its strategic objectives
and satisfy customer needs..

8. Business Process Models
In this discipline, processes are seen as
strategic assets of an organization that must
be understood, managed and improved to
offer value-added products and services to
process consumers.
In a typical organization, computer systems
exist to solve the needs of specific functional
areas.
However, at the human level, work is not
adequately controlled and there is no end-to-
end visibility of the status of the activities
carried out during the processes carried out by
humans and systems.

9. Business Process Models
BPM components:
▪ Design: In this stage, what the ideal process should be is defined. This includes identifying the
steps, tasks, roles and responsibilities of the people involved.
▪ Modeling: A graphical representation of the process is created using flowcharts or other tools.
This helps to better visualize and understand the process.
▪ Execution: In this stage, the process is put into practice following the guidelines and
procedures established in the previous stages.
▪ Monitoring and control: Key performance indicators (KPIs) are established to measure the
performance of the process in real time. This allows problems to be identified and corrective
action taken when necessary.
▪ Optimization: Based on the data collected during monitoring, ways are sought to continually
improve the process. This may involve eliminating unnecessary steps, automating tasks, or
reallocating resources..

11. Business Process Models
Benefits of BPM :
▪ Efficiency: BPM seeks to eliminate bottlenecks and reduce cycle times, which improves
operational efficiency.
▪ Effectiveness: Helps the organization achieve its strategic objectives and offer high-quality
products or services.
▪ Flexibility: Allows the organization to quickly adapt to changes in the business environment.
▪ Transparency: Facilitates visibility of processes, which can improve decision making.

12. SOA (Service-Oriented Architecture)
In addition, technologies have evolved to use BPM systems complemented with the
power of SOA.
SOA, Service Oriented Architecture, is an information technology design and
development approach, which is based on the principle of decomposing an
application into independent software components called "services" that can be
reused and combined to build larger applications. and complex.
The use of these two technologies results in an optimal work environment for GLOBAL
SUPPLY NETWORKS

13. SOA has evolved a lot in the last decades and derived from both the insufficiencies of the
implemented solutions and the technological advances. The idea behind this whole evolution
has always been the usual strategy used to solve complex problems: break the problem into
smaller, solvable pieces.
As the teams and the
codebase grows, so does the
need for independent
evolution, scalability and
deployability. SOA provides
the tools for this
independence, forcing
stricter boundaries between
bounded contexts.

14. This allows giving the keys to the creation of GLOBAL SUPPLY NETWORKS
Interoperability: SOA promotes interoperability, which means that services can be used by different
applications and platforms, since their access is based on open standards and common protocols,
such as HTTP, XML and SOAP. This facilitates communication and integration between
heterogeneous systems.
Composition: SOA allows for the composition of services, meaning that multiple services can be
combined to build larger, more complex applications. This is done through service orchestration or
choreography, where rules and flows are defined to coordinate the execution of individual services.
Keys to the creation of GLOBAL SUPPLY NETWORKS

15. Discovery: Services in SOA are typically registered in a service repository where they can be
discovered and used by other systems. This makes it easier to identify and access the services
available in an organization.
Scalability and flexibility: SOA provides a scalable and flexible architecture, since services can be
implemented and deployed independently. This allows you to adapt to changing business needs
without affecting other parts of the system.

16. In SOA, a service is a self-contained, modular unit of
functionality that performs a specific task or provides clearly
defined functionality. The services are self-contained and can
be accessed through standard interfaces, such as web services
or APIs.

18. INDEX
2.4. Global Supply
Network Coordination And
Collaboration
2.4.1. Business Process Models
2.4.2. Innovative Management
Models
2.4.3. Business areas and KPIs
2.4.4. Data and optimization of
business results. Success
Stories

19. Innovative Management Models
Business model innovation is defined as a new way for a company to do business an earn
money. A business model innovation occurs when at least one of the business model
dimensions changes.
Innovations in supply chains can lead to performance improvements by increasing the service
level and reducing costs (Franks, 2000).
Service level improves product availability and
creates value to the customer. Thus, service level
and efficiency directly impact the company’s
value proposition and value capture.
Source: Supply chain innovation-driven business models

20. Fourth-party logistics (4PL)
Fourth Party Logistics, known as 4PL in the industry, is a model of logistics where
manufacturers outsource all of the organisation and oversight of their supply chain and
logistics to one external provider.
One of the identifiable disadvantages
of using a 4PL for your organisation is
that you have minimal control over the
logistics and fulfilment process for
your products.
This however can be a benefit for a
business where this is not something
you are an expert in.
Source: supplychaindigital.com

21. Click-and-collect
Click and Collect refers to any
shopping trip where products
are purchased online and picked
up by the consumer at a
designated location, either in
store or curbside outside the
store.
Consumers prefer this method
because of speed, convenience,
the assurance of tactile
purchasing and cost.
Source: numerator.com

22. Mass Customization and Logistics
Mass customization is the delivery of wide-ranged market goods and services that are modified
to each customer’s specific needs. It aims to create individualized goods while still keeping
production prices similar to those of mass produced goods.
Source: Mihlfeld

23. Mass Customization and Logistics
Source: Mihlfeld
Advantages Challenges
• Products are more attractive to consumers
than uniform products.
• Huge savings to be made by eradicating
inventories of unsold goods and raw
materials.
• Customer relationships are strengthened
through customization ability.
• Increase warehousing cost
• Trends or spikes are more difficult to forecast.
• Customized products take longer to reach
customers.
• Customized products still have a slightly higher
cost.
• Companies coming from a mass production
background find it tough to change their
organizational structure.

24. The Role of Logistics and the Future of Mass
Customization
Source: Mihlfeld
Logistics is the glue that holds the entire mass customization system together and central to
providing a competitive advantage. Mass customization programs cannot succeed if a
company does not have efficient logistics operations and information systems.
With the demand of customizable
goods increasing and advancements
such as the 3D printer making
customizing easier, it’s no surprise
that the custom trend is here to stay.

26. INDEX
2.4. Global Supply
Network Coordination And
Collaboration
2.4.1. Business Process Models
2.4.2. Innovative Management
Models
2.4.3. Business areas and KPIs
2.4.4. Data and optimization of
business results. Success
Stories

27. Business Areas
Customer Relationship
Management.
Sales Management.
Human Capital Management.
Service Management.
Product Data Management
Planning and Scheduling.
Project Management.
Production Management.
Supply Chain Management.
Financial Management.

28. Business Areas in Supply Chain
Customer Relationship Management.
Sales Management.
Human Capital Management.
Service Management.
Product Data Management
Planning and Scheduling.
Project Management.
Production Management.
Supply Chain Management.
Financial Management.
▪ Purchase Management
▪ Sourcing and Procurement
▪ Inventory Management
▪ Advanced Material Management
▪ Shipping and Receiving
▪ Warehouse Management
▪ Transport Management

29. To define BI we will start from the definition of Gartner's glossary of terms:
“BI is an interactive process for exploring and analyzing structured information
about an area (usually stored in a data warehouse), to discover trends or
patterns, from which to derive ideas and draw conclusions.
The Business Intelligence process includes communicating findings and making
changes.
Areas include customers, suppliers, products, services and competitors.
BI, business intelligence

30. Interactive process: when talking about BI we are assuming that it is an analysis
of information that continues over time, not just at a specific moment. Although
this last type of analysis can obviously provide us with value, it is incomparable
with what a continuous process of information analysis can provide us, in which,
for example, we can see trends, changes, variabilities, etc.
BI, business intelligence

31. Some examples of the most used KPIS
On-Time Delivery (OTD): Measures the percentage of orders or shipments that are delivered on or
before the promised delivery date. High OTD indicates reliability and customer satisfaction.
KPIs
Inventory Turnover: Calculates how many times
inventory is sold and replaced within a specific
period. A higher turnover rate can signify
efficient inventory management.

32. Order Accuracy: Measures the percentage of orders that are fulfilled without
errors. This includes accuracy in the quantity and quality of products shipped.
Supplier Performance: Evaluates the performance of suppliers in terms of
quality, timeliness, and reliability. Metrics can include supplier defect rates, on-
time delivery, and lead time.
KPIs
Cost of Goods Sold (COGS): Tracks the direct costs
associated with producing or purchasing products.
Monitoring COGS helps in cost control and efficiency
improvement.

33. Lead Time: Measures the time it takes to fulfill an order from the moment it's
placed to the moment it's delivered to the customer. Reducing lead times can
improve customer satisfaction.
Fill Rate: Measures the percentage of customer demand that is met immediately
from on-hand inventory. A high fill rate indicates strong inventory management.
Transportation Costs: Tracks the costs associated with shipping and
transportation. Monitoring transportation costs helps identify opportunities for
cost reduction.
KPIs

34. Warehouse Capacity Utilization: Measures how efficiently warehouse space is being utilized.
Optimizing warehouse space can lead to cost savings.
Return Rate: Calculates the percentage of products that are returned by customers. A high return rate
may indicate quality or fulfillment issues.
Supply Chain Cycle Time: Measures the time it takes for a product to move through the entire supply
chain, from order placement to delivery.
KPIs

35. Cash-to-Cash Cycle Time: Tracks the time it takes for a company to convert its
investments in inventory and other resources back into cash through sales. A
shorter cycle time can free up working capital.
Perfect Order Rate: Measures the percentage of orders that are delivered
without any issues, including late deliveries, incorrect items, or damaged goods.
Economic Order Quantity (EOQ): Calculates the optimal order quantity that
minimizes total inventory costs, considering factors like carrying costs and
ordering
KPIs

36. Supplier Lead Time Variability: Measures how consistent or variable supplier
lead times are. Predictable lead times are essential for effective supply chain
planning.
Customer Service Level: Tracks the percentage of customer orders that are
filled completely and on time. High customer service levels are critical for
customer satisfaction.
Overall Equipment Effectiveness (OEE): Measures the efficiency of
manufacturing or production equipment. OEE takes into account availability,
performance, and quality to assess equipment effectiveness.
KPIs

38. INDEX
2.4. Global Supply
Network Coordination And
Collaboration
2.4.1. Business Process Models
2.4.2. Innovative Management
Models
2.4.3. Business areas and KPIs
2.4.4. Data and optimization of
business results. Success
Stories

39. In the business case section throughout the course and especially in this
topic, there are success stories and how they have achieved it.
Data and optimization of business
results. Success Stories