Logistics Strategic Planning pnjlee@cjcci.or.kr
Difference between 3PL and SCM Factors Third-Party Logistics Supply Chain Management Goal Demand Management End User Satisfaction Just-in-case Lower Inventory Levels Just-in-time Flow of Links Multiple directions One way Stocking Strategy Highly distributed Highly centralized Transportation Penalty Next day or Immediate Breech of Service Level Agreement Freight Out of stock Source: Vaidyanathan, G., A Framework for Evaluating 3PL, Comm. of the ACM, 2005, p89-94
(I)
2. (As-Is) 4.
Mission Statement Corporate strategic plan Functional strategic plans Marketing Manufacturing Logistics Finance Measuring Strategy Performance - Cash Flow(Financial) - Savings(F) - Return on Investment(F)
Objectives of Logistics Strategy Cost reduction Capital reduction Service Improvement Logistics Planning Area Customer Service Levels Facility Locations Inventory Decisions Transportation Decisions
Source : C. John Langley Jr. & Mary C. Holcomb, Total Quality Control in Logistics, The Logistics Handbook, 1994, pp.183-198
Information Technology
Structure of Organization
Outsourcing
Greater Functional Integration Broader Operational Autonomy Shippers Shippers 3PL Providers Supply Chain Outsourcing 1990-2000s 4PL Technology Service Providers Business Process Consulting Providers e-capability solution capability Customer Service Logistics Outsourcing 1980-1990s Shipper 3PL Providers Insourcing 1970-1980s Shipper Internal Logistics Operations Source: Adopted from Blade and Mueller (1999)
Source: Stock, Greis and Kasarda, (1998)
Source: Alan Stainer (1997)
External Analysis Internal Analysis
Value Chain 7S B. S. C. Stakeholders Business System Diamond Marketing Finance Production Purchasing After Service R&D Product SWOT (Strength / Weakness / Opportunity / Threat) (CSF (CSF; ; Critical Critical Success Success Factor) Factor)
Michael Porter s 5Forces Model Industrial Structure Analysis,,,, 5 (Drivers) Industry Industry Competitors Competitors Rival Rival among among existing existing firms firms
SWOT, BSD(Business System Diamond) BSDCSFSWOT
Value Chain Analysis() Michael Porter 7S Analysis Thomas Peters Balanced Scorecard Analysis() Kaplan & Norton Business System Diamond Analysis Michael Hammer
Risk Management
Balanced Scorecard Analysis (KPI) Translating Corporate Vision to Performance Targets,,,, 4, Balanced Scorecard(BSC)*
BSC BSC Financial Customer Vision & Strategy Internal Business Process Learning & Innovation(Growth)
1.4.1 SWOT Matrix SWOT (, ) (,),,
5 Forces Analysis : -, - - : - 3PL - Non-Asset - - 3PL -3PL ILLUSTRATIVE : - - base : - - 3PL
SWOT Analysis Strength 3PL Non-Asset S,, CPG(Customer Packaged Goods) CJ (CJ ) W Non-Asset (, ) Weakness ILLUSTRATIVE, e-scm O 3PL 3PL ( ) SWOT (Fedex, UPS) 3PL T 3PL Opportunities Threat
ILLUSTRATIVE
ILLUSTRATIVE
ILLUSTRATIVE
Consulting
6.1 Logistics Strategy in Global Leading-Edge Companies
6.2 Logistical Management in Global Leading-Edge Companies
6.2
6.3