Analysis and Design of a Supply Chain Logistics Hub for ... · EEI Term-Project 2007/12/27 Introduction The Taiwan automotive industry is enhancing many aspects of the logistics supply

Analysis and Design of a Supply Chain Logistics Hub for After Market Automotive Parts Distribution

Group 2

9634516 Kent W.C. Ni

9634532 Ashley Y.L. Huang

9634543 Albert C.L. Kuo

E-Enterprise Integration Term-Project Presentation

EEI Term-Project2007/12/27

Agenda

� Introduction

� Case description

� As-Is logistics models from brand manufacturer to

overseas OEM facility and AM distributors

� To-Be logistics models

� As-Is and To-Be model comparison

� Conclusion


Introduction

� The Taiwan automotive industry is enhancing many

aspects of the logistics supply chain in response to trends

that move manufacturing to global sites providing the

greatest advantages.

� Manufacturers with several factories within a country, it is

often more cost effective to establish a logistics hub to

coordinate product shipments before exporting to the

overseas customers .

AS-IS Logistics Models

TO-BELogistics Models

Comparison ConclusionCase

DescriptionIntroduction

Lu Kang

Hsin Ying

Yung Kang

�� Kun ShanChen Yang ��


Introduction (Cont.)

� Business can benefit and become more competitive by adapting

their supply chain and global logistics processes with

information technology (IT) .

� Automotive parts manufacturers：：：：(1) After Market 【【【【AM】】】】 (2) Original Equipment Manufacturers 【【【【OEM】】】】

� About 85% to 90% of all parts for the global AM service

market are supplied by Taiwanese companies.

� CAPA oversees a test program guaranteeing the suitability and

quality of automotive parts.






Introduction (Cont.)

� One of the fastest growing applications involves the use of

Radio Frequency Identification (RFID) to help customers

track the delivery of ordered goods using the Internet.

� The application of RFID technology to the supply chains is

leveraged by combining standard business processes with

enterprise system information flows.

� This study evaluates the As-Is process of an automotive

parts suppliers using INCOME 4 software which enables

the user to build Petri net diagrams of standard and

proposed business processes.






Case Description

� The study analyzes the processes of DEPO, a Taiwan

automobile lamp manufacturer that began operations in

1980.

� DEPO has recently opened two manufacturing sites in

China. They believe that China will also grow into a very

prosperous after market parts market as consumer income

increases and further increase the sale of personal use

automobiles.

� DEPO currently has 3 manufacturing factories in different

locations. Each factory managed its own orders and export

processes, with each factory managing delivering products

independently and without coordination or central control.

Lu KangLu Kang

Yung KangYung Kang

HsinHsin YingYing

These products were never collected at a hub

to reduce unnecessary activities






As-Is Logistics Models

1. Organization Model

� has built an organizational structure designed deliver

products to markets in North America, Europe and

China. The As-Is organization includes the

manufacturers, the dealers, the maintenance providers,

third party logistics providers (3PLs), as well as the hub

managers.







2. Behavior model

The behavior model depicts how DEPO exports automobile

lamps to markets in China and America.






inefficien

tdelivery lead time Logistics costs



3. Object model

Several data objects are constructed to model manufacturer

data, production data, BOM (Bill of Material), product data,

order data, dealer data, dealer goods data, 3PL order data,

delivery data, sales records, and hub data for four organizations.











Hub informationHub dataHub

Record listSales record

Delivery informationDelivery data

3PL order content3PL order data

3PL

Dealer’s goods informationDealer goods data

Dealer informationDealer data

Order informationOrder data

Dealer

Product listProduct data

BOMBOM

Production informationProduction data

Manufacturer listManufacturer data

Manufacturer

DescriptionDocumentOrganization


To-Be Logistics Models

� These models are constructed by integrating the logistic

process with information processes after a benchmarking

simulation run used to evaluate the performance and

limitations of the As-Is logistic models.





1. Organization model

With the goal of increasing efficiency across the supply chain and in

particular providing the best delivery and product tracking services,

the original As-Is organization model was changed to include a

STORAGE HUB in China. 3PL were also empowered to manage

inventory with the goal of cushioning unexpected market demands

and to reacting to changing orders.



2. Behavior model

� A logistic hub is introduced to consolidate and coordinate

deliveries for all customers.

� The logistic hub located in Taiwan integrates all finished

goods and semi-finished goods and then delivers the goods

to the China logistic hub (sea then inland transportation).





Improve



3. Object model

� The proposed object model includes the storage hubs for

collecting and regulating goods and semi-finished goods

shipments.





Sales Record

PK Sales No

Sales name

Delivery Data

PK

FK

Deli. No

Delivery time

Delivery type

RFID No

Sale Region

Region_name

DownTown

Distance

Land_Cost

3PL Order Data

PK

FK1

FK2

FK3

FK4

FK5

3PL_No

Quantity

Due_date

Dealer_ID

Deli. No

Order_num

Hub_name

RFID NoRFID Information

RFID No

Cargo_name

Arrive time

Leave time

Cargo situation

Production

PK

FK1

FK2

Pro. No

Pro. Type

Pro. Information

BOM_ID

Order_num

BOM

PK BOM_ID

Name

Component

Quantity

Manufacturer Data

PK

FK1

FK2

Manu. No

Name

Manu. Time

Pro. No

Product No

Order Data

PK

FK

Order_num

Quantity

Due_date

Product No

Product Data

PK

FK

Product No

Name

Price

Cost

Sales_No

Dealer Goods Data

PK

FK1

FK2

Goods No

Name

Quantity

Price

Order_num

3PL_No

Hub Data

PK

FK1

FK2

Hub_name

Address

Tel

Capacity

Region_name

RFID No

Dealer Data

PK

FK1

FK2

Dealer_ID

Name

Address

Phone

Order_num

Goods No

Improve


As-Is and To-Be Model Comparison

�Compare the performance (e.g. cost & time)

between the current and proposed logistic model.





COST


As-Is and To-Be Model Comparison (Cont.)

2881.05 4729.33 Sum

0.80 16.50 Receive AM Products

270.00 400.00 Inland Transportation

16.00 20.00 Air Transportation (China)

840.00 1200.00 Custom Clearance (Hong Kong)

1296.00 1920.00 Sea Transportation

24.00 30.00 Air Transportation

245.00 700.00 Custom Clearance (Taiwan)

58.00 200.00 Check and Inspect

105.00 200.00 Pick and Sort Goods

5.83 16.67 Make Invoice

20.42 26.17 Make order

To-BeAs-Is

Time (Hours)Activity

TIME


Conclusion





� The results of the simulation shows that the logistic cost

and lead-times are reduced to nearly 40% by introducing

logistics hubs and by better enabling the third party

logistics providers to play a more significant role in the

processes.

� RFID technology is applied to track delivery status and

feedback the information to specific members of supply

chain.

� Demonstrates the importance of using technology based

services to enhance customer satisfaction and increase the

profits of the supply chain members.


Documents

Analysis and Design of a Supply Chain Logistics Hub for ... · EEI Term-Project 2007/12/27 Introduction The Taiwan automotive industry is enhancing many aspects of the logistics supply