SELF-ASSESSMENT Performance of SMEs Logistics Services Emmanuel Pertin, CDP ISEL November 2014

SELF-ASSESSMENT

Performance of SMEs Logistics ServicesEmmanuel Pertin, CDP ISEL

November 2014

Supply Chain Management Logistics Performance Self-Assessment

Supply chain management has not only become a major competitive advantage, but first and foremost, it has now become one of the links of the organisational chain at the service of a company’s overall performance.

Controlling inbound and outbound logistics: a major advantage when selecting suppliers for the MRE industry.

The most efficient businesses will be able to:• Include weather hazards, chain breakdown and break-bulking in their planning;• Fit within the chain without generating additional risks.

“It isn’t the largest who swallow up the smallest, but the quickest who gobble up the slowest”.

Background

Will draw up an initial assessment of the logistics company’s arrangements.

Will measure overall strengths and weaknesses of the logistics arrangements.

Will draw up an improvement plan based on the business’s maturity level.

This guide includes standards, norms, concepts and good supply chain practices promoted by national and international bodies such as Aslog, Global Evalog, Scor, or SCM.

The self-assessment tool


At strategic level :• Definition of product and service offering;• Sizing of appropriate industrial and logistical tool;• Contract negotiation and partnerships with suppliers and customers.

At tactical level :• Sales forecasts;• Planning, programming and calculation of needs;• Procurement rules and stock control rules.

At operational level:• Customer order management;• Workflow process and hazard management;• Order fulfilment: production, distribution and invoicing.

The supply chain


Sizing and designing means

Designing logistics network

Logistics management

control

Studies and Methodology

Cross-Departmental Project Unit

Configuration and Sizing Studies

Studies and recast of logistics process

Information System Studies

Steering of IS logistics projects

Partner and sub-contractor

ControlSelection,

qualification of transport & logistics

partners

Lead tendering and HA for

services

Service provider monitoring

Invoicing : payment recovery

Reporting

Supply chain measuring & cost

analysis

Measuring operational indicators

Transport plans Control

Transport plan simulation

Transport Master Plan

Transportation evaluation & Consolidation

Warehousing Control

Warehousing capacity

simulation

Warehousing capacity management

Evaluation of warehousing

preparation /operations

Operational performance

Operational performance: warehousing and order picking

Operational performance: transportation

Monitoring the supply chain

Monitoring supply chain events

Management of alerts

Management of anomalies

Support in defining policies for logistics

department

Supply chain Control

Planning supplies based on sales plans

Supply management (rules & IS parameters, ...)

Inventory and factory supplies

Monitoring supplier orders

Customer Relations Mgt

Customer order intake

Mgt of priorities: arbitration

After-sales / Returned goods

Invoicing entities & customers

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onSupply Chain Management

Logistics Performance Self-Assessment

The supply chain: mapping of inbound and outbound flows

End result: measuring the company’s performance.

The tool, the methodology


Goal: business performance measurement

• 15 themes & 123 questions will scan all internal and external sectors and processes – those that have an impact on supply chain streams.

• 2 types of answers : Yes/No and Never; Sometimes; Frequently ; Always.

• An immediate scoring of the performance on a radar type graph against a “maturity” threshold that the company has set.

• Length of exercise 2:30.





Chapter 1 - Business Strategy & Logistics Strategy

Corporate long-term vision;Values & objectives;Supply chain process;Continuous improvement.

The tool, themes & objects. Illustrations.




Chapter 3 - Information System

Accounting and financial management system;Trade data flows;IS interoperability.



Chapter 5 - Demand management

Forecasting sales, production & supply;Changes in the demand; stocks & production;Customer relations management.



Chapter 6 - Supply Management

Supply pre-selection & sourcing;Anticipation, assessment of stock shortage risks;Solutions: Push/Pull/JIT flows;Service rates.



Chapter 7 - Production ManagementChapter 8 - Inventory ManagementChapter 9 - Preparation & Distribution

Location of establishment– lean manufacturing, lean supply chain;Planning of works and resources;Performance measurements;Planned deliveries; IS;Control elements; demand fluctuation; load smoothing; meeting committments.



Chapter 10 - Management of sales and distribution support (SD)Chapter 11 - Management of returned goods

Feedback from operational experience;Participation of front-end functions;Availability of spares, obsolescence and costs;Claims processing;Management and use of returned goods, reverse logistics;Supply Chain Execution Rate. Function costs.



Chapter 14 - Logistics Efficiency & ResponsivenessChapter 15 - Logistics & Environment

Lean Manufacturing tools;Optimisation steps;Meeting delivery deadlines;Processes available on line;Environmental conservation;Environmental impacts;Environmental assessments.

No supply chain strategy generated by the corporate strategy

Fragmented supply chain organisation Low comprehensive view of streams

Partially formalised logistics process, based on processing orders. Few logistics indicators; no measurements, no possible improvement.

First results.


Repeat use of tool applied to a new project;Software development;Implementation on a platform;Creating a user community.

Benchmarking tool.

Next steps. Ambition.


Documents

SELF-ASSESSMENT Performance of SMEs Logistics Services Emmanuel Pertin, CDP ISEL November 2014