LOGISTICS AND SUPPLY CHAIN MANAGEMENT

LOGISTICS - MOVE IT! (PART 1)MSc NGUYỄN THANH XUÂN VI

I. Logistics DefinitionII. Logistics Functions

QUESTIONS■ What is SC and SCM? Basic steps of a SC■ Give an example of a supply chain in Vietnam.■ Give an example of a global supply chain.■ What is procurement and 5 key steps of procure to pay process.■ What are basic procurement problems?■ What are procurement’s role in the supply chain?

MSc Nguyễn Thanh Xuân Vi 2

QUESTIONS

■ Difference between manufacturing and production? And analyze the example: India can manufacture aircrafts but in India, aircrafts are not produced.

■ What types of production systems?■ Compare Mass/Batch và Job shop with an example.■ What decisions do a manufacturing and operations

manager need to consider to to maximize efficiency of production and fulfill customer needs?

MSc Nguyễn Thanh Xuân Vi 3

QUESTIONS

■ Which indicators and measures should a manufacturing and operations manager need to consider to measure the operational and manufacturing performance?■ Analyse Agile and Lean and Just-in-time

manufacturing■ Analyse Push and pull production■ What is advanced manufacturing? And why does it suit

the global trends well?

MSc Nguyễn Thanh Xuân Vi 4

QUESTIONS• Similarities and Supportiveness between the

methods: JIT, LEAN, AGILE, PUSH, PULL, MTO, MTS• 8 Types of waste in Lean production.• Main issues of Lean manufacturing.• Real life Examples for each technique.• Major trends in global Manufacturing.

MSc Nguyễn Thanh Xuân Vi 5

VOCABULARY

■ "Takt time" is the rate at which you need to complete the production process in order to meet customer demand■ "Cycle time" is the time it takes to complete the production

of one unit from start to finish. By tracking your completed items and your net production time (NPT), you can determine the time it takes for you to complete one cycle (one crochet hook, in the above example).■ Takt time measures customer demand; cycle time

measures work.

MSc Nguyễn Thanh Xuân Vi 6

VOCABULARY

■ "Lead time" is the time it takes for one unit to make its way through your operation from taking the order to receiving payment. If the lead time is much higher than cycle time, it means you have a lot of units in your inventory.■ Lead time measures the time elapsed between order and

delivery, thus it measures your production process from your customer’s perspective. Cycle time starts when the actual work begins on the unit and ends when it is ready for delivery

MSc Nguyễn Thanh Xuân Vi 7

VOCABULARY

• Manufacturing vs production vs operations• Product variety # Product volume• Availability & Flexibility & Capacity• Job shop production (one-off production = prototype

production)• Batch production• Mass production (assembly line or repetitive production)

MSc Nguyễn Thanh Xuân Vi 8

VOCABULARY

■ Standardized Products■ Large Volume■ Utilization ■ Workforce■ Customised Work■ Firms

MSc Nguyễn Thanh Xuân Vi 9

• Stock• Assemble• Make-To-Stock Production• Make-To-Order Production• Assemble-To-Order

VOCABULARY■ Routing■ Integration■ Quality■ Delivery in Manufacturing■ Cost

MSc Nguyễn Thanh Xuân Vi 10

• Facilities• Process• Planning And Controlling• Performance Measures• Performance Dimension

WHAT IS LOGISTICS?

11

Điều 233 Luật thương mại:- Tổ chức thực hiện- Một hoặc nhiều công việc- Nhận hàng, vận chuyển, lưu kho, lưu bãi, làm thủ tục hải

quan, các thủ tục giấy tờ khác, tư vấn khách hàng, đóng góibao bì, ghi ký mã hiệu, giao hàng hoặc các dịch vụ khác

- Theo thỏa thuận với khách hàng- Để hưởng thù lao.”

WHAT IS LOGISTICS?

12

LOGISTICS VALUE PROPOSITION AND LOGISTICS GOALS

13

Value proposition- Cost and ServiceGoals1. Rapid response capability2. Minimum variance3. Minimum inventory expense4. Consolidated shipments5. High quality6. Support product life cycle

LOGISTICS GOALS

14

LOGISTICS GOALS

15

LOGISTICS GOALS

16

LOGISTICS GOALS

17

LOGISTICS GOALS

18

LOGISTICS GOALS

19

LOGISTICS STRATEGIES

20

Logistics Strategies1. Coordinating functions2. Integrating the SC3. Substituting information for inventory 4. Reducing the numbers of partners5. Pooling risks

LOGISTICS AND SCM.

21

LOGISTICS SCM

VISION Short and medium term Long term

TARGET Decrease Logistics cost, increase service quality

Decrease total cost, increase activities integration

ACTIVITIES Material management and physical distribution Procurement, Logistics, wholesaling and retailing, Finance, Sustainable supply chain, customer relationship, supplier relationship,…

RANGE Internal relationship management Internal & External relationship management

LOGISTICS AND SCM.

• TransformSCM

• MovementLogistics

22

LOGISTICS AND SCM.

• MovementLogistics

23

LOGISTICS FUNCTIONS

24

Inbound logistics:- Purchasing and arranging - Inbound movement of materials, parts, or finished inventory- From suppliers to manufacturing or assembly plants,…

Outbound logistics- Storage and movement - Final product and the related information flows - From the end of the production line to the end user.

LOGISTICS FUNCTIONS

25

TransportationWarehousing and InventoryThird and Fourth PLReverse Logistics Procurement Logistics

Manufacturing LogisticsDomestic Logistics

Global Logistics…

QUESTIONS

• Difference between Logistics and Supply chain.• What is 7Rs?• Analyse Logistics objectives.• Analyse Logistics strategies.• Difference between Inbound and Outbound Logistics.• What are basic Logistics functions?

26