汽车制造行业的物流和供应链管理.ppt

1Auto Logistics and Supply Chain Management Summit 2003ThePracticeofVMIinChina陈陈 晖晖中国物流公司中国物流公司 执行总裁执行总裁2AgendalOurunderstandingoftheautomotivelogisticsneedslWhatisVMIdefinition,proceduresandbenefitslChallengesofVMIinChinalCasestudylBriefintroductiontoChinaLogisticsCompany3An automotive OEMs logistics needs cover both inbound and outbound operations of parts and finished vehiclesPlantSuppliersConsolidationandLoadingCenterServicePartsDistributionCenterLogisticsforProductionPartsLogisticsforServicePartsLogisticsforCompleteVehiclesDealerDealer/ServiceStationBondedWarehouseforImportPartsOur understanding of the automotive logistics needs4Supply chain management(SCM)is the strategic management tool that coordinates the material and information flows across the value chain to support adaptiveness5“Demand-pull”value chain requires the companies to be flexible and able to“control”a large part or the entire supply chainSuppliersManufacturingDemand indirectly drives manufacturing volume through forecastsWarehouse Wholesale/Retail“Supply-push”Logistics ChainSuppliersB2BExchangeManufacturingDirectDelivery“Demand-pull”Logistics ChainManufacturing driven by actual demandTherateofsupplywassetbythemanufacturerinadvance,basedonexpecteddemandItwastheroleofthelogisticsproviderstoensureajust-in-timesupplyofcomponentsTherateofmanufactureisdeterminedonareal-timebasisbytherateofdemandWhilethismodelismoreefficient,itrequiresperfectintegrationofalllogisticsoperationswithinoneprocessSource:LehmanBrothers,A.T.KearneyAnalysis6Third-party logistics providers(3PLs)can directly,or through a partner network,provide a range of servicesProcurementPayablesmanagementSupplierpaymentandconsolidatedinvoicingVendorperformancemonitoringandexceptionreportingJointprocessimprovementwithvendorsOverallfreightcoordinationFullloadtruckcarryingLess-than-loadtruckcarryingSmalllot(lessthan150pounds)carryingOrderconsolidationDeliveryschedulingExpeditingspecial/rushordersReturningandreprocessingundeliverableordersDeliverytracingPerformanceandexceptionmonitoringandreportingOverallinventorymanagementOptimizingsupplierorderschedulesOptimizingdealerorderschedulesCertificationofincomingshipmentsBarcodingPerformanceandexceptionmonitoringandreportingTrackingandReportingSystemsaccessibleviaInternetMaterialResourcePlanningOrderpreparation/assembly/consolidationSourcingofpackagingmaterialsPrintingofcorrugateand/orlinerboardmaterialsLabelingShrinkwrappingofcasesandpalletsFreight and Distribution CoordinationWarehousing and Inventory ManagementMinor Assembly and PackagingProcurement7Difference between traditional business model and VMI modelTraditionalVMIPurchase Order PlacementWhen a customer needs product,they place an order against a manufacturer.Under VMI,the vendor generates the order,not the customer.Inventory TransparencyOnly order is transmitted to supplier when product is needed.The vendor can view the“real-time”stock level of every item that the customer carries as well as true point of consumption data.Inventory ReplenishmentThe customer is in total control of the timing and size of the order being placed.The vendor is in total control of the timing and size of the order being placed.Inventory PlanThe customer maintains the inventory plan.The vendor is responsible for creating and maintaining the inventory plan.8Simplest VMI workflowManufacturerSuppliers23411.Themanufacturerapprovesthepurchasingtermswithsuppliers,includingthecommonlyagreedinventoryresponsibilityandmaintenancescheme.2.Themanufacturersendsproductactivitydatatothesupplier.Thisproductactivityisbasedonwarehousemovementofproductconsumedattheassemblylinelevel.3.Basedontheagreedinventorymaintenancescheme,thesupplieredits,approvesandreleasesthesuggestedpurchaseorder.4.Themanufacturerapprovesthispurchaseorderandsendittothesupplier.9Consolidation and Loading Center is commonly used to reduce the complexity in coordinating multiple vendorsQualityofdeliveryservicesfromvendorstoline-sidemightbedifferentVendorsshippingvolumemightbeverysmallgivenmorefrequent“demand-pull”ordersVendorsmightneedalargeline-sidebuffertocompriseafull-truckloadandmake-upasafetystockLargeline-sideareaisneededtoaccomplishunpacking,kitting,andpossiblysequencingofpartsbeforefeedingtoassemblylineIndividualvendorsmightrentwarehousesforthemselves,withlimitedscaletosharewithothervendorsConsistentdeliveryservicetoline-sideOptimalshippingvolumetoreducetransportationcostandinventorycostReducedrequirementonline-sidewarehousespaceCoordinationbetweensuppliersandproductionlinepossibletopromotesynchronizationandJITHow Consolidation and Loading Center Approach HelpsPotential Issues in Simplest VMI Model10Win-win situation can be achieved for both manufacturers lPlanningandorderingcostsforthemanufacturergodownduetotheresponsibilitybeingshiftedtothevendorlImprovedcustomerservicevendorscanbetterrespondtocustomersinventoryneedsintermsofbothquantityandlocationlReduceddemanduncertaintybyconstantlymonitoringcustomersinventoryanddemandstream,thenumberoflarge,unexpectedcustomerorderswilldwindle,ordisappearlThemanufacturerismorefocusedthaneverinprovidinggoodserviceandtheoverallservicelevelisimprovedbyhavingtherightproductattherighttimelSpeedandaccuracyofdataprocessingareimprovedduetocomputer-to-computercommunicationslReducedtotallogisticscostandimprovedcash-flow11 and vendorslSmoothingdemandthesupplierisabletosmooththepeaksandvalleysintheflowofgoods,andthereforetokeepsmallerbuffersofcapacityandinventory.lBettercoordinationthesupplierhasbetteropportunitiestoco-ordinatetheshipmentstodifferentcustomers,suchasscheduling-eitherpostponingoradvancing-shipmentsaccordingtoproductionschedules,customerinventorysituationsandtransportationcapacitylReducedinventoryrequirementsbyknowingexactlyhowmuchinventorythecustomeriscarrying,avendorsowninventoryrequirementsarereducedsincetheneedforexcessstocktobufferagainstuncertaintyisreducedoreliminatedlSpeedandaccuracyofdataprocessingareimprovedduetocomputer-to-computercommunicationslReducedtotallogisticscostandimprovedcash-flowThe binding of customers to vendors once relationship is established,customers will be reluctant to endure the amount of work needed to switch vendors12Currently,most automotive manufacturers in China consider Consignment Inventory as VMIlVMIareusuallyusedasamethodtorealize“zeroinventory”whilethepartsaresittinginmanufacturerswarehouse,vendorsareforcedtofinishthetransferifpartsownershipuntilassemblyisdonelConsignmentInventory,ontheotherhand,aretheexactpracticeofmostvendorsandmanufacturersvendorsarenotinvolvedininventoryandlogisticsdecisionsChallenges of VMI in China13This concept/belief reveals the transactional relation between suppliers and manufacturerslPrice-drivensourcingdecisionwithoutin-depthunderstandingofcoststructureLogisticscostandmaterialcostarecommonlyaddedupasalump-sum“CIFprice”Fewsuppliersarewillingto“opencost”totheircustomersunlessmarginisverythinSupplychainmanagementtargetsforcefullydrivesupplierstoreducepricetomaintainbusinessrelationlPaymenttermsandpaymentsituationconstrainsuppliersfromgettinginventoryinformationunderconsignmentinventoryInventorymovementmeansactualconsumptionofproducts,immediatelystartingthemanufacturerpaymentcyclelNeithermanufacturersandsuppliersmakesignificantinvestmentinbuildingEDItofacilitatedatasharingWithout transparent data sharing and collaborative supply chain planning,lose-lose situation arises due to higher operation(transaction)cost 14To avoid the potential conflict between manufacturers and suppliers,an independent third party can be employed to help manage the VMI initiativelThird-partyconsolidatestheshipmentfromvarioussupplierslThirdpartyfacilitatetheinformationexchangebetweenmanufacturer,consolidationandloadingcenter,andthesupplierslInformationisneutraltobothsuppliersandmanufacturers,signalingtransferofownershipaccordingtopre-agreedtermslThird-partycanhelpmanageinventory,unpacking,kitting,sequencinganddeliverytoline,milk-runningtheinboundpartsandpotentiallyplacingpurchaseorderonmanufacturersandsuppliersbehalflOwnershipremainsunchangedbeforeorafterVMIisimplemented15However,internal resistance against outsourcing the VMI service remains generally very strong lNocommonunderstandingofhowthird-partycanhelpsmooththeVMIoperationlStaffcurrentlyinchargeofinboundlogisticsareafraidoflosingjobslGeneralbelieftoholdpotential“profit”withinthecompanylNocostbenchmarktocomparetheoverallcostunderthird-partymanagementlResistancetoshareinventorydatawiththird-partylAculturaladjustmentaswellasasignificantreorganizationofeverydayjobdutiesisrequiredtoaccomplishamajorchangeofcompanyoperationsVMI will achieve its acceptance gradually,especially after the anticipated competitive environment in 2-3 years16A Chinese OEM outsourced its inbound logistics to China Logistics for operating assets,skills and better managementOEM Inbound LogisticsTheOEMwaspreparingformassproductionofanewpassengercarmodelonatotallynewplantInthepast,thesupplierswereaskedtodeliverallcomponentstothelinesidewarehouseTherearenotenoughin-houseoperationstaffandspacetocopewithexpansionofproductionThemanagementoftheOEMwouldliketofocusonmanufacturingofvehicles,whileoutsourcemostofitslogisticstothirdpartyChinaLogisticsrefurbisheda4,500Sq.M.warehousesituated8kmfromtheassemblylineInaddition,emergencyorderscanbedispatchedwithintenminutesofnotificationanddeliveredtolinesidewithin30minutesPartsarestored,pickedandmarshalledaccordingtowheretheyareusedontheassemblyline,withloadsconfiguredindirect-to-lineorderScalerampedupfrom40unitsperdayinNovember2002to180unitsinMarch2003Inatypicalweek,theChinaLogisticsteamhandlesmorethan3,000differentproductlinesandmakessome250just-in-timedeliveriestolinesidereceivingpointsChina Logistics ApproachSituationSelected Case Studies17There are several different factors to consider in designing an appropriate inventory levelOrderto-deliveryleadtimeOrdersizeandfrequencyAnnualthroughputPerSKUdemandCompletevehiclesalesvolumeCarparc(penetrationrate)TotalnumberofSKUsKittingorotherneedsPurchasingleadtimeTransportationleadtimePurchasingordersizeandfrequencyCustomer NeedsVolume ForecastSKU ComplexityInbound ProcessSolution SelectionTotal CostTransportationcostWarehousingcostLaborcostLevel of IntegrationSourceofmaterials(externalsuppliersorOEMfactory)LocationofsuppliersOEM Inbound Logistics18Current Operational Characteristics related to Materials Management20+domestic and 50+overseas suppliers SupplierSupplier1 1Customer involving:Logistics DeptQuality DeptPlanning DeptSupplierSupplierX XSupplierSupplier2 2SupplierSupplier3 3SupplierSupplier2222Operational characteristics:Component Supplier Inbound LogisticsAt present,Customer X directly contact a multitude of suppliers,to PlaceP/O;MonitorP/Ostatus,changeP/Oifnecessary;Receiveandunpackparts,storeandpickingInspectandsortparts;Delivertoassemblyline;Checkdocumentationandfinallypayinvoice.It involves functions across the customer:ProductionPlanningQualityControlLogisticsandMaterialsManagementITFinance19Major capacity and quality issues arises when 50%annual growth is anticipatedlUnder-capacityforwarehousingspaceThereareconstraintsasproductioncapacityneedstobeboomedtomeetincreasingcustomerdemandslManufacturingflexibilityislowWhenpartsorderedbeforearealreadyontheirwaywhileproductionplanneedstobechanged,eitherthepartshavetogobackortheproductionplanhastoremainunchangedsincethereisnospacefortheunwantedpartsWhenpartsreceivedarefounddefectedproductionhasnotbeenabletoswifttoalternativeplanasthereislittleotherstockinthefactorylQualityhasbeencompromised:Asthereislittlestockonhandsomepartswithdefectshavetoberepairedandused,hencequalityisnotatitsbestfromtimetotimelCommunicationsconsumeplentyoftimeEachfunctionmayhavetocontactsuppliersfortheirownresponsibilitiestoconductthepreviouslymentionedactivitiesmakingtheoperationlesssmoothComponent Supplier Inbound Logistics20Project Roll-out ScheduleContract negotiation Supplier agreement negotiation SetupGo liveJulyJulyAugAugSeptSeptMain tasksWarehousedecorationOfficeset-upWMSSystemfinetuningStafftrainingProcurementofequipmentsInternalSOPQualityinspectioncapabilitiesimprovementMain tasksMain tasks PricePrice ProcessProcess SOPSOP KPIKPIMain tasksMain tasks InventoryInventorylevellevel PriceandPriceandPaymentPayment SOP&KPISOP&KPI NegotiatingNegotiatingcontracts,i.e.contracts,i.e.warehouse,warehouse,equipmentsequipmentsetc.etc.StartingStartingrecruitmentrecruitmentMain tasksMain tasks SOPinplaceSOPinplace StaffinplaceStaffinplace QualitycontrolQualitycontrolprocedureinplaceprocedureinplace ITsysteminplaceITsysteminplace FacilitiesandFacilitiesandequipmentinequipmentinplaceplaceSeptSeptComponent Supplier Inbound Logistics