Optimizing Logistics Supply Chain Efficiency

. . . Logistics & Retail Business Vertical Optimizing the efficiency of Supply chain Cycle Presented by :- Akash Jauhari Aniket Pandey .

[object Object],. . Dubai Logistics industry Strategic Geographic Location between Eastern and Western Hemispheres Rated Best in Logistics Infrastructure in Middle East by World Bank’s Logistics Performance Index 2010 Has One of Lowest Average Logistics Costs in the World UAE also has good internal road network, including The Emirates Road (140 Km) connecting all emirates. Availability of World Class Logistics Infrastructure facilities including free Trade Zones for Transshipment and Re-exporting .

[object Object],. . Dubai Logistics industry UAE Transportation Infrastructure .

[object Object],. . Dubai Logistics industry UAE warehousing Infrastructure .

[object Object],. . Dubai Logistics industry Leading players in logistics Industry .

[object Object],. . Dubai Logistics industry Strategic Analysis of SCM Cycle of Foreign Players in UAE DHL Full RMA-RTV tracking and visibility Customer Business rules embedded in software Strategically positioned storage locations Express Logistics Centers Strategic Parts Centers DHL Worldwide Express Transportation network Logistics Customer Service Center Dedicated DHL Airways .

[object Object],. United States Europe, Africa Middle East 45 Asia Pacific 109 93 Latin America 35 . Dubai Logistics industry Strategic Analysis of SCM Cycle of Foreign Players in UAE DHL Global Network SPCs & ELCs 9 Express Logistics Centre's 273 strategic parts centers .

.13 14 7 9 4 6 10 11 2 Event Info flow Breakdown occurs Pick & Pack 1 8 Physical flow Customer request spare part Dispatch Confirmation Optional (EDI only) : Dispatch Confirmation to CUST 2 9 10 CUST validates order (Optional : request can be direct to LCSC) Delivery of part to destination 3 11 Transmission to DHL LCSC Stock level ELC drops below reorder level 4 12 DHL LCSC validates order Parts ordered 5 13 Optional Order confirmation New parts delivered to ELC 6 14 Order to pick and pack 7 . Dubai Logistics industry D.E.I- Direct Express Inventory CUST Suppliers 5 LCSC 8 12 ELC CUSTCustomers/Engineers CUST 3 1 .

[object Object],. Advanced Exchange Business Model Manufacturing Repair Defective Repair process 6 New Stock process 7 DHL CRC DHL ELC Order attributed to SPC or ELC 3 5 Defective Returned to ELC Auto replenishments from ELC to SPC 4 DHL SPC 4 2 or 4 hour Order delivery from SPC Overnight Order delivery from ELC 4 Lucent Customers (FLM) Lucent EMEA CRC triggers maintenance order via DHL web 2 Lucent Customer suffers maintenance failure 1 . Dubai Logistics industry Strategic Analysis of SCM Cycle of Foreign Players in UAE DHL .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players 1.How to identify interdependencies in process networks, while doing the modeling of a Supply Chain Cycle. .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players E-SCM IMPROVEMENT PROCEDURE .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players STEP 1 :- Standarzation of Business Process Using SCOR Reference Model ( Supply Chain Operational Reference ) Version 6.0. The model is built on the concepts of BPR, benchmarking, and process measurement STEP 2 :- Business Process Modeling ( IDEF01 ) How Business Should be executed by a firm Decomposition and Assigning the Nodal Numbers Vertical & Horizontal Interdependencies .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players 2. How to Minimize the total expected delivery transshipments cost from Warehouse to Customer/Retail and Vice-Versa in uncertain Demand Situation .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players For simplicity, we aggregate all customers from one regional market into one customer located at the DC in that market, which implies no distance difference among customers in the same market delivery costs follow the basic geometric axiom—that is, Cij+Cjk≥Cik, for any i, j, and k n=number of distribution centers in the system Si=current inventory position at DC i (i=1, 2,…, n) λj=expected periodic demand rate at market j (j=1, 2,…, n) Cij=unit transshipment cost from DC i to market j Dj=expected remaining demand within the current period from market j .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players Optimal Transshipment Rule to find Optimal Dynamic Shipment Strategy Although the market demand is dynamic and uncertain, it follows a Poisson distribution with rate λj. So the probability that the next unit demand comes from market j is λj/λ. To the extent that shipping cost is roughly proportional to distance, it appears reasonable to transship from the closest DC with stock on hand. This intuitive approach is widely adopted in practice. We name the first decision rule as theNearest Rule. .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players 3. Application of RFID technology at various interface of Supply Chain Cycle and creating platform between Data and ERP Interface .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players BENEFITS TO SUPPLY CHAIN STAKEHOLDERS Benefits to Manufacturers Benefits to Distribution Centers Benefits to Warehouses Benefits to Logistics Company Administration Benefits to Retailers Benefits to the Whole Supply Chain .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players ADOPTION STRATEGY Shared Understanding Goal Setting Justification Read Rate Accuracy Security Privacy Moraitis Fresh Australian Post .

[object Object],. . Dubai Logistics industry Key Challenges faced by local players to compete against Foreign Major Players 4. Implementing ERP with Supply Chain for the better flow of Information and better tracking of Job ID .

Company website Flight details receipt custom clearance Air Freight CRM Warehouse 1,2,3….n Customer Service delivery team Feedback free receipt Delivery Vehicle Space Sea freight 3rd Party Agent Loading company General Flow Process For Logistics Company Port No Vessel no Route No Custom clearance Receipt Recipient Feedback Job no = close

[object Object],. . Dubai Logistics industry References http://somweb.utdallas.edu/centers/c4isn/documents/c4isn-Impact-RFID-SC-Perform.pdf http://www.dhl.co.ae/en.html http://www.dhs.gov/xlibrary/assets/foia/US-VISIT_RFIDattachI-redacted.pdf RFID utilization and information sharing: the impact on supply chain performance Pamela J. Zelbst Department of Management and and Marketing, College of Business Administration, Sam Houston State University, Huntsville, Texas, USA Kenneth W. Green Jr Department of Management, Marketing, and Management Information Systems, College of Business, Southern Arkansas University,Magnolia, Arkansas, USA, and Victor E. Sower and Gary Baker Department of Management and Marketing, College of Business Administration, Sam Houston State University, Huntsville, Texas, USA .

Optimizing Logistics Supply Chain Efficiency

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