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Logistics Process Capabilities and Measures RVS Ramakrishna 1
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Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Sep 02, 2018

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Page 1: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Logistics Process Capabilities      and Measures 

RVS Ramakrishna 

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Page 2: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Background note…

• Logistics infrastructure challenges at the current scale & tonnage traffic scenario analysis 2015  

• Need to quantify the impacts in terms of logistics measures as a common measurement tool @ industry level 

• Need to establish linkages for ownership both internally and externally

Traffic ‐Mn Tons  2009 2015

Total ‐ISP  Steel traffic 40 100

Total ‐ISP  traffic  170 4252

Page 3: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Supply Chain maturity in steel 

Performance Attribute

Metrics India Best In Class

Forecast Accuracy 50‐70% Over 85%Reliability

Delivery Performance to Customer Request Date

40‐65% 97.7% 

Total Order Fulfillment Lead Times

20‐30 days

14 daysResponsiveness

Response Time to Inquires 1 day‐1 month

Less than 3 sec

Flexibility Re‐plan cycle time 1 to 3 months

15 days

Assets Inventory Turns 3 to 5 Over 7 

Logistics session, i2  Steel summit ‐2007  

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Page 4: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Activities till date 

• Logistics forum – Member companies nominated their Supply chain heads to the group  ‐ SAIL , Tata Steel , Essar, JSW, Ispat, JSPL, JSL,Welspun  ArcelorMittal   

• Two logistics round tables and inputs on  Infrastructure challenges from the members 

• Started the Logistics score card survey with the integrated steel plants  

• Submitted the first round of notes to Rail, Shipping and Surface transport ministries  

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Page 5: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Out‐bound Logistics cost  ‐ As  freight Index 

1. Lead kms 2. Freight cost/ton 

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Page 6: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

In‐bound Logistics cost  canvas as freight Index 

1. Lead kms 2. Freight cost/ton 

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Page 7: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Financial perspective 

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No Measure  Unit  Current Target 

1 Inventory turns Nos/year 6 72 Freight cost  Rs/Ton/km 1.35 1.23 Logistics cost  Freight Index 1.21 1.14 Returns on Investment  ROIC  0.3

Page 8: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Internal perspective 

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No Measure  Unit Current Target

1 Real time location visibility levels  % 0.30 1.002 In ‐plant Wagon Turnaround Hrs 35 63 In‐plant Truck Turnaround  Hrs 15 33 Dispatch spread  % 15/30/55 30/30/404 Transit Inventory  Days 7 35 In‐plant route network kms  Kms 6 No.of handlings  Nos  6 3

Page 9: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Customer perspective No Measure  Unit Current Target

1 Order Fulfillment time  Days 30 152 Delivery Compliance  % 0.7 0.93 Supply chain visibility % 0.25 14 Loss in Transit/Quality  % 0.1 0.5

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Page 10: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Strategic perspective No Item Measure  Current Target 

1 Best practices & Knowledge sharing Nos.2 Branding  3 Logistics forum  Initiatives Nos. 5 Sustainability  ‐Wood & Transportation % 

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Page 11: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Way forward

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Page 12: Logistics Process Capabilities and Measuresnewsletters.cii.in/newsletters/steelsummit2009/pdf/SESSION_1/RVS... · tonnage traffic scenario analysis ... as a common measurement tool

Thank you for your continued support  

• Mr. V.K.Gulhati,SAIL

• Mr. Sushim Banerjee , SAIL 

• Mr.Kalyan Ghosh ‐ Essar Steel 

• Mr.Gangadhar Rout – Essar Steel 

• Mr.Ulhas Pawar – JSW 

• Mr. OP Mishra , Tata Steel 

• Mr.  Manorajan Ram, ArcelorMittal

• Mr.Pradeep Tewari , Ispat Group 12