OMSAN LOJİSTİK. Global Supply Chains & Procurement

OMSAN LOJİSTİK

Global Supply Chains & Procurement

Sourcing Planning

Measures&

Goals

SupplyInfrastructure

PPROCESSES

SupplyWorkforce

Make-B

uy Analysis

Supplier R

ationalization

Supplier Integration

Procurem

ent

Planning

Supply C

hain Mapping

PLANNINGSUPPLY

Global SourcingPotential Pitfalls

Delays and Losses in International Shipments &Collections

Delays and Losses in International Shipments &Collections

Global Sourcing

•Lost Shipments•Lost Vendors•Lost Payments •Lost Documents

•Lost Shipments•Lost Vendors•Lost Payments •Lost Documents

Losing International Sourcing &

Manufacturing Opportunities

Losing International Sourcing &

Manufacturing Opportunities

Lose International Market Share

Lose International Market Share

Where will your company’s sourcing occur in the next couple of years?

Europe

14%

South

America

7%

North

America

31%

Asia

48%

Source: IDRC Survey of Corporate Purchasing Executives, 2003

Planning corporate growth strategy with the selection of locations for new business facilities and new areas of economic development

Planning corporate growth strategy with the selection of locations for new business facilities and new areas of economic development

Global Procurement

• Supply Chain Performance Indicators & Goals• Supply Chain Flows• Customer Service &

Supplier Integration Policy DefinitionInventory Availability, Response Time, Returns,

Unitizing & Packaging, etc.• Supply Chain Operating Model• Supply Chain Systems Requirements• Supply Chain Organization Plan• Supply Chain Integration Plan

Efficient Global Supply

Supply Performance Measures Segmented Supplier Service Policy & Rationalization Supply Chain Integration Virtual Vertical Integration Supplier Measurement & Certification Vendor Managed Inventories Standard Replenishment Model with Tweak Electronic Order Entry via EDI or Internet EOQ Orders Consolidated Buys to Leverage Purchasing Power RYG Program

Supply Gap Analysis

Measures

Supplier Service Policy

Supplier Integration

PO Entry

PO Processing

Buying & Payment

SMS

Organization

0

1

2

3

4

5

CIMSA

World-Class

Supply includes manufacturingand procurement processes. Foreach product, the company mustdecide whether to make or buy

the goods. For all thosemanufactured products, the

objective of supply is to efficientlybuild product to the establishedinventory targets. For all thoseprocured products, the objectiveis to efficiently procure products

to the established inventorytargets. In procurement, the

supply processes include supplierintegration, purchase order entry,

purchase order status, andpayment. In manufacturing the

supply process includesproduction scheduling, lineassignment, and production

requirements planning.

Global Supply Best Practices Processes

SupplyPractices

World-Class

SupplierServicePolicy

Supplier Certification Criteria Pre-receiving for certified suppliers RYG Indicators ABCxABC Supplier-SKU Service Policy

SupplyIntegration

Partnerships Primary & secondary to leverage procurement power Formal supplier certification criteria and monitoring to criteria performance Supply base rationalization and consolidation. On-going meetings with key suppliers

PurchaseOrder Entry

Hybrid entry methods based on ABCxABC segmentation EDI links EOQs Vendor-Managed Inventory JIT supply for commodities Standing purchase orders with minor adjustments for ETQ’s efficient transportation

quantities Automated p/ o entry based on continuous inventory review for A items and A

suppliers P/ O

Processing Perpetual p/ o status visibility provided by suppliers with red flags on exceptions Supplier inventory visibility (A items)

Buying &Payment

Central buying Consignment inventory with pay on consumption

Global Supply Best Practices:Processes

SupplyPractices

World-Class

SupplierServicePolicy

Supplier Certification Criteria Pre-receiving for certified suppliers RYG Indicators ABCxABC Supplier-SKU Service Policy

SupplyIntegration

Partnerships Primary & secondary to leverage procurement power Formal supplier certification criteria and monitoring to criteria performance Supply base rationalization and consolidation. On-going meetings with key suppliers

PurchaseOrder Entry

Hybrid entry methods based on ABCxABC segmentation EDI links EOQs Vendor-Managed Inventory JIT supply for commodities Standing purchase orders with minor adjustments for ETQ’s efficient transportation

quantities Automated p/ o entry based on continuous inventory review for A items and A

suppliers P/ O

Processing Perpetual p/ o status visibility provided by suppliers with red flags on exceptions Supplier inventory visibility (A items)

Buying &Payment

Central buying Consignment inventory with pay on consumption

Global Supply Best PracticesSystems and Organization Designs

Practice Area

World-Class

SupplyManagementSystem

Best-of-Breed SMS- Inventory Visibility- Electronic POs- Electronic Funds Transfer- On-Line Supplier Performance Monitoring

ProcurementOrganization

Commodity GroupsGlobal SourcingTrained in IP&M PrinciplesClose links and coordination with all logistics

functions

Supply Chain Criteria/Test(From Hanes, A Sara Lee Company)

Is timely point-of-sale (point-of-consumption) information used to provide early warning of rapid shifts in demand?

Are agreed upon, accurate demand forecasts used to "pull" products/services through the supply chain from raw materials through manufacturing to distribution to customers, in the right amounts and in the right assortments, when needed?

Do major customers regularly provide their demand projections and plans for growth?

Are major suppliers regularly provided with business plans and demand projections?


Does purchasing, manufacturing, product flow, inventory and transaction information move seamlessly throughout the supply chain?

Is there an electronic link (e.g.. for demand measurements, forecasts, automatic replenishment, electronic funds transfer) with all major customers?

Is there an electronic link (e.g... for forecasts, automatic replenishment, manufacturing resource planning (MAP) transmitted as purchase order, electronic funds transfer) with major suppliers?


Is there an electronic link (e.g. for load planning, negotiating rates, electronic dispatching, delivery acknowledgments, electronic fund transfer) with major carriers?

Have service and performance measurements been implemented between each stage of the supply chain to monitor supply chain performance?

Are supply chain processes coordinated and managed horizontally across the organization to minimize hand-offs and reduce cycle times?

GSCISteps Along the Way...

Incremental Inventory ReductionIncremental Inventory Reduction

Continuous ReplenishmentContinuous Replenishment

Flow-through/Cross-dockFlow-through/Cross-dock

Less space

Reduced inventory investment

Reduced spoilage/aging

Improved service level Further inventory reduction Some process change with

reduced labor expense

Significant process changes with reduced labor expense

Minimum inventory/space/labor costs

Maximum product freshness

Five Steps to Global Supply Chain Integration ...

Stage 1Traditional

Stage 1Traditional

CRP - IStage 2CRP - IStage 2

Stage 3CRP - IIStage 3CRP - II

Stage 4Flow-Through

Stage 4Flow-Through

Stage 5Cross-Dock

Stage 5Cross-Dock

Inbound replenishment exactly matches outbound orders Supplier shipment to match actual customer order, or, Full pallets in matched to full pallet order line out Pre-distribution or pre-sold items, e.g. promos & ads

Inbound replenishment closely aligned to outbound orders

Some percentage of inbound volume immediately picked to outbound order staging (reverse picking)

Store demand based replenishment Continued focus on a manageable number of suppliers Vendor replenishment pulled based on aggregate customer

P.O.S. information (or aggregate store orders)

Warehouse shipment based replenishment Focus on small number of high volume, capable suppliers Vendor replenishment pulled based on shipments

Forecasting based (push) ordering policies and replenishment concepts (As-Is)

Retailer Streamlines Global Logistics Channels

Overseas Supplier

CustomerConsolidator/

BrokerU.S. Transload

Facility

CompanyDistribution

SystemOverseas Supplier

SubassembliesDomestic

Assembly Plant

PoolDistribution

Vendor Dropship Program

Predistribution Facility

Current System

System Options

Delivery Frequencies &Transportation Design

CentralDC

High Volume Inbound Shipments

S

GM

DryGrocery

Frozen

M&D

Produce

Consolidation & Cross-Dock Facility

SS

S

S

S

S

Full Truckload shipments, by

commodity

Full Truckload shipments, by

commodity

Remote Combo Consolidation?

Global Sourcing: Where?

Global Logistics Conditions

Region Logistics Conditions Logistics Solution(s)

NorthAmerica

Short-term focus onshareholder return and returnon capital.

Excellent infrastructure.

Extensive logistics finance andperformance measures.

Supply chain integration andlogistics information systems toreduce capital assets.

LatinAmerica

Limited to no logisticsinfrastructure and/or logisticsservice providers.

Leapfrog to world-class status. Import logistics service

providers and education.WesternEurope

Transportation heritage. Individual rights.

Transportation heritage makes3PL providers commonplace.

Focus on individual rights yieldshuman-friendly logistics viaexcellent logistics ergonomicsand green logistics.

Japan Lack of land and/or humanresources and high logisticstransaction requirements.

Logistics culture of disciplineand order.

Automated storage andhandling systems.

Multi-story logistics facilities.

Global Sourcing Criteria

CulturalCompatibility

Skilled Labor FinancialOpportunities

LogisticsInfrastructure

Logistics Cost

Purchasing

BusinessConditions

LogisticsConditions

PoliticalConditions

FinancialOpportunities

Resource Availability

Manufacturing Cost

1980s

1990s

2000s

1970s

1960s

Geo-Economics & Logistics

Geography/Topography

Communications Infrastructure

Transportation Infrastructure

Logistics Workforce

Customs Regulations

Logistics Service Providers

Culture & Language

Economic Model

Economic Health &

Stability

Inflation & Currency

Exchange Stability

Political Stability

Legal Framework

Geo-Economic Systems 2000

-4E+

Corporate Strategy

Site Selection

Business Climate

Environmental Planning

Risk ManagementAsset Administration

Political Risk Analysis

Business Legislation

Logistics Conditions

World-ClassCorporation X

www.sitenet.com

Import Requirements & Process

Transportation Documents

Commercial Invoices Entry Manifest (Customs

Form 7533) or Entry/Immediate Delivery (Customs Form 3461)

Packing Lists Certificate of Origin (if

applicable)

Tariff Classification (HTSUS)

Goods Valuation Determination of

Origin Other Federal

Agencies Requirements

Duty Payment

License/Permit Required for Customs Clearance

Alcoholic Beverages Animals & Animal Products Certain Drugs Firearms and Ammunition Fruits & Nuts Meat & Meat Products Vegetables Milk, Dairy and Cheese

Products Plants and Plant products Poultry & Poultry Products Petroleum & Derivatives Trademarked Articles

Textiles

Clothing

Automobiles

Boats

Appliances

Medical Devices

Subject to special standards, declarations, certification, marking

or labeling requirements