Logistics System

Rule Of Conduct
• Min 80% Present in Class
• Present in Class Before Starting the
Lecture
• Don’t Use Sandal, Kaos Oblong and
Hand Phone During the Lecture
• Having Good Attitude
 SAP
Minggu Materi Metoda Referensi
Concept & Framework Logistics
1 Concept of Logistics & Evolution L&D 1, 2,&3
2 Basic Work of Logistics & Performance L&D 1&2
3 Presentation of HW: 1 P&D

Logistics Planning and Control

4 Concept & Method of Planning & Control L&D 3
5 Optimization & DRP Method L&D 2&3
6 Presentation of WH: 2 P&D

Inventory & Warehousing

7 Deterministic Model L&D 2&3
8 Probabilistic Model L&D 2&3

Mid Test
9 Multi Echelon Inventory Model L&D 2&3
10 Warehousing L&D 2&3
11 Presentation of HW: 3 P&D

Transportation
12 Transportation Planning L&D 1, 2,& 3
13 Routing and Scheduling L&D 1, 2,&3

Logistics Design
14 Structural Aspect L&D 1, 2,&3
15 Functional Aspect L&D 1, 2,&3
16 Presentation of HW: 4 P&D

Final Test
 References

1. Bowersox, Closs & Cooper:”Supply Chain

Logistics Management”, Mc. Graw Hill, New
York, 2002
2. Stock & Lambert:”Strategic Logistics
Management”, Mc. Graw Hill, New York, 2001
3. Chopra & Meindl:”Supply Chain Management:
Strategy, Planning and Operation” Prentice
Hall, New Yersery, 2001
 Assessment
• Requirements:
– Min 80% Present in Class
– Having Good Attitude
• Score/Grade :
– Mid Semester Test (UTS) : 30%
– Final Test (UAS): 30%
– Homework (PR) : 40%
• Group : 30% ( 4 papers &problems)
• Individual : 10% ( 1 paper)
 Logistics ?
Disiplin Yang Berkaitan Dengan Pengadaan
( Procurement), Penyimpanan Barang ( Storage ) Dan
Penghantaran ( Delivery ) Sesuai Dengan Jenis, Jumlah,
Waktu, Dan Tempat Yang Dikehendaki Dari Titik Asal
( Point Of Origin ) Ke Titik Tujuan ( Point Of Destination )

Obyek Aktivitas Misi

 Barang 1. Procurement 1. Right Goods
(Goods) 2. Sorage 2. Right Time
3. Delivery 3. Right Place

1. Aliran Barang ( Flow Of Goods )

2. Aliran Informasi ( Flow Of Information )
3. Aliran Uang ( Flow Of Money )
 Logistics Activities
• Procurement
• Storage
• Delivery:
Transportation
Services

Linkage Coordination
Channel Relationship
Structure Management
 Logistics Cycle

Pemrosesan Order
Transmisi Order
Order Konsumen

Transportasi Pengiriman ke
Seleksi Order
Order Konsumen
Logistics Mission
• Right Goods
• Right Time
• Right Place

• Flow of Goods
• Flow of Information
• Flow of Money
Logistics Flow Network
J a r in g a n P e m a s o k

S is t e m / a lir a n
M a t e r ia l
Jaringan Transportasi

Jaringan Informasi
S is t e m / a lir a n S is t e m / a lir a n
tra n sp o rta si In fo rm a s i

S is t e m / a lir a n
F in a n s ia l

J a r in g a n F in a n s ia l
 Role of Logistics
Increase
Efficiency and Productivity

Reduced Unit Cost

Better Services

Competitive Advantage
 Stakeholder

Shippers
Shippers Consumers
Consumers

Logistics
Logistics
Service
Service Government
Government
Providers
Providers
Performance Indicator

• Customer : Services
• Provider : Cost
• Owner : Return

Competitiveness
Marketing/Logistics Management Concept

CustomerSatisfaction
Customer Satisfaction
••Suppliers
Suppliers
••Intermediate
IntermediateCustomer
Customer
••Final
FinalCustomer
Customer

IntegratedEffort
Integrated Effort
••Product
Product CompanyProfit
Company Profit
•Max long term profitability
••Price
Price •
•Max
Lowest
long term profitability
costgiven
givenan
anacceptable
acceptable
•Lowest cost
••Promotion
Promotion levelofofcustomer
level customerservice
service
••Place
Place
Interface Marketing & Logistics
Product
Product

Price
Price Promotion
Promotion

Place
Place

Inventory
Inventory Transportation
Transportation

Lot
Lot Warehousing
Warehousing

OrderProcessing
Order Processing
Information
Information
Evolution of Logistics System
Partial Approach

Integrated Approach

• Value Chain
• Vertical Marketing System
 Partial Approach
Logistics as Part of Business Activity

Procurement Physical
Distribution
 Physical Distribution
(Partial)

KK
OO
NN
Manufacturing SS
Manufacturing UU
MM
EE
NN
Physical Distribution
(Integrasi)

KK
OO
NN
SS
Manufacturing
Manufacturing UU
MM
EE
NN
 Procurement
(Partial)

SS
uu
pp
pp Manufacturing
Manufacturing
ll
II
ee
rr
Procurement
(Integrated)

SS
uu
pp
pp
ll
Manufacturing
Manufacturing
II
ee
rr
 Integrated Approach
Logistics as integrated part of business
entity

Supply Chain
A Network of Connected And Interdependent
Organizations Mutually And Co-operatively
Working Together To Control, Manage And
Improve The Flow Of Materials And
Information From Supplier To End Users
 Integrated Logistics System

A lir a n I n fo r m a s i
s C
u u
p s
p P h y s ic a l
t
P ro cu re m e n t M a n u fa c tu r in g
l D is t r ib u t io n o
i m
e e
r r
A lir a n B a r a n g
 Market Distribution
Objective is to assist in revenue generation by
providing strategically desire customer service
levels efficiently

Activities related to providing services

• Order receipt and processing
• Deploying inventory
• Storage and material Handling
• Outbound transportation

Coordinate with marketing planning in such areas as pricing, promotional

support, customer service levels, delivery standard, handling return
merchandise, and life cycle support
 Integrated Logistics
Order
Order
Processing
Processing

Facility
Facility Inventory
Inventory
Network
Network

Warehousing
Warehousing Transportation
Transportation
 Chain Network
(VERTICAL MARKETING SYSTEM

Supplier
Supplier
Manufacturing
Manufacturing
Whole Seller
Whole Seller
Retailer
Retailer

Customer
Customer
 Supply Chain

Materials Flow

Suppliers
Suppliers Procurement
Procurement Manufacturing
Manufacturing Distributions
Distributions Customers
Customers

Requirements Information Flow

Achieving An Integrated Supply Chain
Stage one: Base Line

Material Customer
Flow Service
Material
Material
Purchasing
Purchasing Production
Production Sales Distribution
Sales Distribution
Control
Control
Achieving An Integrated Supply Chain
Stage two: Functional Integration

Material Customer
Flow Service
Materials
Materials Manufacturing
Manufacturing Distribution
Distribution
Management Management
Management Management
Achieving An Integrated Supply Chain
Stage three: Internal Integration

Material Customer
Flow Service
Materials
Materials Manufacturing
Manufacturing
Management Management
Distribution
Distribution
Management Management
Achieving An Integrated Supply Chain
Stage four: External Integration
(Total Supply Chain Management)

Material Customer
Flow Service
Suppliers Internal
Internal
Suppliers Customers
Customers
Supply Chain
Supply Chain
 Integrated Supply Chain Model
Customer
Customer Information & Financial Flow

Product & Information Flow

Retailer
Retailer

Distributor
Distributor

Manufacturing
Manufacturing

1stTier
1st TierSupplier
Supplier 1st Tier Supplier

2ndTier
2nd TierSupplier
Supplier 2ndTier
2nd TierSupplier
Supplier 2ndTier
2nd TierSupplier
Supplier
 Logistics Flow
Customer
Customer
Supplier
Supplier
Distributor Customer
Customer
Distributor

Customer
Customer
Supplier
Supplier Manufacture
Manufacture

Customer
Customer
Distributor
Distributor

Supplier
Supplier Customer
Customer

: Carrier
 General Supply Chain Model
Information, Product, Services, Financial, and Knowledge Flow

EE
Supplier
Integrated Distributive NN
Network
MM Enterprise
Network DD
AA
TT CC
EE PROC
DISTRI
UU
BUTION
RR NN
II MANUFAC
SS
AA TURING UU
M
LL M
SS EE
RR
SS

Capacity, Information, Core Competency, and Human Resources Constraints

 Cycle Stage
Customer

Customer Order Cycle

Retailer
Replenishment
Cycle
Distributor
Manufacturing
Cycle
Manufacturer
Procurement
Cycle
Supplier
Customer Order Cycle

Customer
Customer Customer
Customer
Arrival
Arrival OrderReceiving
Order Receiving

Customer
Customer Customer
Customer
OrderEntry
Order Entry OrderFulfillment
Order Fulfillment
 Replenishment Cycle

RetailOrder
Retail Order RetailOrder
Retail Order
Trigger
Trigger Receiving
Receiving

RetailOrder
Retail Order RetailOrder
Retail Order
Entry
Entry Fulfillment
Fulfillment
Manufacturing Cycle

Order
Order Receiving
Receiving
Arrival
Arrival

Production
Production Manufacturing
Manufacturing
Scheduling
Scheduling Shipping
Shipping
 Procurement Cycle

OrderBased
Order Basedonon
Manufacturer’sProd..
Manufacturer’s
Scheduleor
or
Prod.. Receivingat
Receiving at
Schedule
Supplier’sStocking
Supplier’s Stocking
Needs
Manufacturer
Manufacturer
Needs

Supplier
Supplier Component
Component
Production
Production Manufacturing
Manufacturing
Scheduling
Scheduling Shipping
Shipping
 Supply Chain Management

The Management of Upstream And Downstream

Relationship With Supplier And Customers To
Deliver Superior Customer Value At Least
Cost

Linkage Coordination
Channel Relationship
Structure Management
 Evolution of the Externalization of
Logistics Activities
Client Business Process Mgt

Client 4PL
4PL 3 PL Provider 00s 4 PL

Client IT Service Provider

Client 3 PL Provider
90s Outsourcing

<80s Insourcing
Client Internal Logistics
Supply Chain Decision Making Framework
CorporateStrategy
Corporate Strategy

CompetitiveStrategy
Competitive Strategy

SupplyChain
Supply ChainStrategy
Strategy

Supply Chain Structure

Inventory
Inventory Transport
Transport W’housing
W’housing Information
Information
 Supply Chain Planning
Link To Business Goal & Strategies
Vision&
Vision &
Mission
Mission

BusinessGoal
Business Goal
&&Strategies
Strategies

Customer
Customer
Service
Service
Requirements
Requirements

Integrated
Integrated
SupplyChain
Supply Chain
Planning
Planning
Designofof
Design
Integrated
Integrated
SCMSystem
SCM System

Overall
Overall
Performance
Performance
Measure
Measure
Competitive advantage and the ‘three C’s’
Source: Ohmae. K, The main of the strategist, Penguin Books, 1983

Customers
Needsseeking
Needs seekingbenefits
benefits
atacceptable
at acceptableprices
prices

V
ue

al
al

ue
V

Assets&
Assets & Cost Assets&
Assets &
Utilization
Utilization Differentials Utilization
Utilization

Company Competitors
Supply Chain Improvement Benefits
Typical Quantified Benefits From
Integrating The Supply Chain:
Delivery Performance 16% – 28% Improvement
Inventory Reduction 25% - 60% Improvement
Fulfillment Cycle Time 30% - 50% Improvement
Forecast Accuracy 25% - 80% Improvement
Overall Productivity 10% - 16% Improvement
Lower Supply Chain Costs 25% - 60% Improvement
Fills Rates 20% - 30% Improvement
Improvement Capacity 10% - 20% Improvement
Realizations
Somber: QAD – PRTM ISC Benchmark Study
Scope of Supply Chain Strategy
Inventory Transport
Strategy Strategy
•Inventory •Modes of
levels transport
•Deployments of Customer •Carrier routing/
inventories Customer Scheduling
•Control
ServiceGoals
Service Goals •Shipment size/
methods consolidation

Location Strategy
•Number, size, and
location of facilities
•Assignment of stocking
points of sourcing
points.
•Private/public
warehousing
 The Impact of Supply Chain
and Customer Service on Marketing

Consumer Customer Supply Chain Marketing

Franchise X Franchise X Efficiency = Effectiveness

• Brand • Customer • Flexibility • Market

values service • Reduced share
• Corporate • Partnershi asset base • Customer
Image p • Low cost retention
• Availability • Quick supplier • Superior ROI
response
Fig.1.2
 The Cost / Benefit of Service

Costs, revenue & profit contribution

Revenu
e

Maximize Costs
Profit

0 Service Level 100%

Fig.2.5
 Supply Chain Impact on ROI
Customer Sales
Service Revenue
− Profit
SCM/Logistics
Costs
Efficiency

Return On
Inventory ÷ Investment

+
Account
Receivable
Asset Capital
Deployment & + Employed
Utilization Cash

+
Fixed Assets
Fig. 3.6