Logistics Challenges for Manufacturing Sector Presented by Olusegun Adekoya Quality, R&D Manager ISO 9001:2008 Lead Implementer, PECB ISO 17025:2005 Lead Implementer NQIP/UNIDO (in view)
Logistics Challenges for Manufacturing Sector
Presented by Olusegun Adekoya
Quality, R&D Manager ISO 9001:2008 Lead Implementer, PECB
ISO 17025:2005 Lead Implementer NQIP/UNIDO (in view)
Challenge versus Risk
PAST FUTURE PRESENT
CHALLENGES POTENTIAL RISK PROBLEMS
Logistic Planning
Logistic Plan
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Sector 2
RISK Versus CHALLENGE
Risk and challenge are two completely different things.
The main difference between a risk and a challenge is that a risk is something that has the capability to hurt, harm or injure;
A challenge is something that motivates, interests, or engages oneself.
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Sector 3
Corporate Strategy = Business Challenge Solutions
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What is Logistics?
Logistics is the . . .
“process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.“
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Sector 5
Logistics as an Extension of Marketing Function
CORPORATE PROFIT
Maximization of the long-term profitability
Lowest total costs given an acceptable level of customer service
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Sector 6
CUSTOMER SATISFACTION
Suppliers
Intermediate customers
Final Customers
INTEHRATED EFFORTS
Product
Price
Promotion
Place (distribution)
Logistics Challenge = Strategy Challenge
Logistic Strategy:
Logistics strategy is the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies, and which are reinforced through conscious and subconscious behavior within and between partners across a network.
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Logistic Challenge = Strategy Challenge
Logistics strategy (is the set of) 1. guiding principles, 2. driving forces and 3. ingrained attitudes
(that help to coordinate)
• goals, • plans and policies,
which are reinforced through
conscious and subconscious behavior within and between partners across a network.
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Sector 8
Logistics Strategy Development: A guiding Principle
CORPORATE STRATEGY
COMPETITIVE STRATEGY
LOGISTICS STRATEGY
Logistics Information System
Design
Logistics Process Design
Logistics Network Design
Logistics Organization Design
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Logistics Processes
• Logistics Planning,
• Logistics Plan,
• Implementation of Logistics Plan,
• controlling the efficient, effective flow and storage of goods and services,
• controlling the efficient, effective flow and storage of related information,
from point of origin to point of consumption for the purpose of conforming to customer requirements.
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Sector 10
Manufacturing Sector classifications
• Foods, Beverages and Tobacco • Chemicals and Pharmaceuticals • Base Metal, Iron and Steel and Fabricated Metal Producer • Domestic and Industrial Plastics: Rubber and Foam • Pulp, Paper and Paper Products, Printing and Publishing • Electrical and Electronics • Textile weaving Apparel, Carpet, Leather/Leather footwear. • Wood and wool Products/ Furniture • Non-Metallic Mineral Products • Motor Vehicle and Miscellaneous Assembly • EXPORT
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LOGISTICS CHALLENGES – Strategic Objectives
Strategic Objectives Descriptions
COST REDUCTION
CAPITAL REDUCTION
SERVICE IMPROVEMENT
Minimizing the variable costs associated with movement and storage
Recognizing that revenues depend on the level of logistics Services Provided
• Minimizing the level of investment in the logistics system
• Maximizing the return on logistics assets
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LOGISTICS CHALLENGES: Driving Forces
• Globalization • Urbanization/Urban Logistics • Mass Customization • Information and Communication Technology (ICT) • Increasing Cost of Real Estate in the Cities –
Location of warehouses • Traffic Congestion leading Increasing GHG
Emissions/ Exhaust gas Emissions • Fluctuating Foreign Exchange • Stringent Regulatory Requirements
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LOGISTICS CHALLENGES – Ingrained Attitude
Selecting a good logistics Strategy may yield a competitive advantage.
Logistics Strategy must not been seen as a less creative process than developing a corporate strategy
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LOGISTICS CHALLENGES – Ingrained Attitude
1. OPTIMISTIC VEIW OF CHALLENGES= Opportunity – Internal Integration
– External Integration
2. PESSIMISTIC VIEW OF CHALLENGES = Problems – Internal Threats
– External Threats
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Sector 15
LOGISTIC CHALLENGES – Ingrained Attitude
ATTITUDE DETERMINES ALTITUDE
– Job Design
– Job Description
– Standard Operating Procedure
– Quality Management System – ISO 9001:2008/2015 implementation and Certification
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A Case Study of a Automobile Assembly Sector
Logistics System Design • Customer Requirements Gathering • Product and Service Characteristics • Resource Configurations • Parts/Material Ordering process • Warehousing Operations • Plants/Manufacturing Operations – Production Logistics • Physical Distribution • Logistics Information System • Reverse logistics • Customer Satisfaction
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A Case Study of a Automobile Assembly Sector
Type of logistics Services: 1. Procurement Logistics 2. Inbound Logistics 3. Warehousing 4. Service Parts Logistics 5. Production Logistics 6. Packaging Logistics 7. After-Sales Logistics 8. Urban Logistics 9. Reverse Logistics
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Sector 18
A Case Study of a Automobile Assembly Sector
Procurement Logistics Challenges:
• Customs Clearing Challenges – External Threats
• Port Issues and Container Transportation challenges
• Container Inspection Processes
• Challenges Intra-city and Inter-city Transportation of Containers
• Empty Container Handling Challenges
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A Case Study of a Automobile Assembly Sector
Warehousing/Inbound Logistics Challenges: • Container off-loading • Warehouse Management System
– Manual Processes – Computerized System – WMS Software – Inventory Management System
• Bulk Breaking • Material Handling System • Trucks Loading • Interconnectivity with Customers
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Sector 20
A Case Study of a Automobile Assembly Sector
Production Logistics Challenges: Material Handling programme
– Raw Material (Storage) Stock
– Work-In-Progress Stock
– Finished Goods Inventory
Material Handling Equipment, jigs and fixtures
Pallet Racks, Trolleys and Forklifts etc.,
Manufacturing and Logistics Trade-off
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A Case Study of a Automobile Assembly Sector
Production Logistics Challenges: Motorcycle Pallet Rack
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Sector 22
A Case Study of a Automobile Assembly Sector
Packaging Logistic Challenges:
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Sector 23
A Case Study of a Automobile Assembly Sector
Urban Logistic Challenges:
Last Mile Delivery of goods
KONGA.com
DHL
Service Parts Logistics Solutions
LAST MILE DELIVERY SOLUTIONS
– Motorcycle for distributing cigarettes
– Motorcycle Dispatch
– Tricycle for FMCG
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Logistics Challenges Facing Manufacturing Sector
24
What is your Plan?
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Thank You
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