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International Logistics Management

International Logistics Management. dr Marian Krupa. AGENDA:. Introduction to the International Logistics Management International Supply Chain Management (SCM) IT and International Logistics Management – ERP software overview International transportation systems

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International Logistics Management

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  1. International Logistics Management • dr Marian Krupa

  2. AGENDA: Introduction to the International Logistics Management International Supply Chain Management (SCM) IT and International Logistics Management – ERP software overview International transportation systems International logistics structures and networks management Strategic and operational information management in Logistics - towards Global Business Intelligence. International Logistics Management – case study dr Marian Krupa

  3. 3. IT and International Logistics Management / SCM InformationFLows MRP /ERP (SAP) /BPM SAP SCM platform VMI / WMS / RFID

  4. InformationFlowsinSupplyChain and IT

  5. IT and International Logistics / SCM Informationflows– introduction: • Informationisthekey (first step) thatunlocksallactivitiesinsupplychainbothpull and push model. • To ensure 8R principleitisnecessaryto build a complex and visibleinformation system. • To balancedemand and supplyinreal time youhave to implement IT software solutions (ERP/SCM). • All new business model such as: Personalization, customization and e-marketsarebuilt on thestate-of-the-art IT platforms – information technology. Mangan, Lalwani, Butcher, Global Logistics and Supply Chain Management, Wiley & Sons, 2008.

  6. IT and International Logistics / SCM Informationvisibility and transparency: • VISIBILITY– the (technical) abilityto seeinformationatvariouspointsacrossthesupplychain as and whenrequired. • To have an access to rightinformationatright time. • TRANSPARENCY – authorization, the will of all business partners within a supplychain to shareinformation / data. • SC partners mustallagreewhat data arerequired , when, and whom. Theyshouldatleasthaveability to „talk” to eachother. Mangan, Lalwani, Butcher, Javadpour, Global Logistics and Supply Chain Management, Wiley & Sons, 2012.

  7. IT and International Logistics / SCM Informationvisibility and transparencyBARRIERS: • COST – financial barriers; million of dollars/euros. • COMPLEXITY – itisverydifficult to cover by IT 100% of allkeyprocesses and functionalities. • Multi CULTURAL / axiological global barriers – transparency, trust/loyaltyissue. • OrganizationalCHANGEobstacles – business do not likechangein general. Mangan, Lalwani, Butcher, Javadpour, Global Logistics and Supply Chain Management, Wiley & Sons, 2012.

  8. IT and International Logistics / SCM NEW MODEL: Reconfiguration of industry value supplychain by IT JürgenDaum, Value Based Management for the New Economy, The my SAP Business Intelligence Conference, Hamburg 2000.

  9. IT applications in Logistics and SCM IT standards

  10. IMIS / DEM MRP / ERP ES FI / CO / AM EIS DSS DW TPS MRP /ERP development BI / HANA INTEGRATION SOA E-comerce E-BUSINESS CRM / SCM / HRS LOGISTICS FINANCE Expert Systems DecisionSupport System Data Warehouse ExecutiveInformation Systems TRANSACTION MODEL DATA MINING DECISONs and ANALYSIS TransactionProcessing System 1950 1960 1970 1980 1990 2000

  11. MRP IMaterialRequirementsPlanning

  12. MRP I - definitions MRP- MaterialRequirementsPlanning • Software based production planning and inventory control system used to manage thecomplexity of procurementprocess. • Informationtoolthatplansthetypes of materialneededintheproductionprocess. • Whatmaterial? Whatquantity? When? Where? Whatcost?

  13. MRP I - definitions MRP– thebasicpurpose of MRP software is: To ensure that proper amount of the right materials are avaialable for the production process at the right time. R. Schulteis, M. Sumner, Management Information Systems, Irwin, USA 1989, p. 414.

  14. MRP I - benefits MRP- MaterialRequirementsPlanning • theprocess of identifyingstockthatislow (JiT), • identifyingthelead time to getthestockfromsuppliers (forwarding, shipping management), • identifyingthe most cost-effective order quantities, • and thenproducingpurchaseorders for thosestockitemsintherightamountattheright time, • to ensurethestock will be on handintherightplace. R. Schulteis, M. Sumner, Management Information Systems, Irwin, USA 1989, p. 414.

  15. MRP I - objectives MRPsystem isintended to meet 3 objectives: Ensure materials and products are available for production and delivery to customers. Maintain the lowest possible level of inventory/ costs. Plan manufacturing activities, delivery schedules and purchasing activities.

  16. ORDER MRP I – howthe system works? Master production schedule BOM MRP Stock level in the warehouse BOM – Bill of Material Material Requirments schedule

  17. MRP I - advantages MRP- MaterialRequirementsPlanning • reduction of thestocklevel • precise time of deliverycreation • preciseproductioncostevaluation • betterproductioncapacityimplementation • fasterresponse to thechangeinthe environment • betterproductionprocesscontrolateverystage.

  18. MRP IIManufacturing Resource Planning

  19. MRP II MRP II (Manufacturing ResourcePlanning) • Business softwarethatextendstheprocurementinformation system (materialrequirementsplanning – MRPI) to production resources planning(PP) and distribution (SD).

  20. MRP II MRP II refers to thefollowingkeyfeatures: • Project, productionordersplanning • Planning and productioncontrol • Material Requirements Planning (MRP I) • Productioncapacityplanning

  21. ORDER How does the MRP II work? Demand for the product or service BOM Stock overview MPS Master Production Schedule Warehouse management Production Plan Material requirements MRP II Purchase order CRP Capacity Resources Planning Production capacity planning Production orders Production Control Purchasingcontrol Routings

  22. Current ORDERS Production PLAN SALES forecast MRP II – the business model BOM Materials inventory files Master Production schedule BOM – Bill of Material Planned-order schedulefor supppliers MRP performance Engineering design Planned-order Schedule for WM Order releases to production R. Schulteis, M. Sumner, Management Information Systems, Irwin, USA 1989, p. 415.

  23. MRP II Standard System American Production and InventoryControlSociety (APICS) The list of standard functionalities for MRP II SOP - Sales and OperationPlanning DEM - DemanandManagment MSP - Master ProductionScheduling MRP - MaterialRequirementPlanning BOM - Bill of MaterialSubsystem INV - InventoryTranscation System http://www.apics.org

  24. MRP II Standard System APICS Certificate for SC Professionals http://www.apics.org/careers-education-professional-development/certification/cscp

  25. ERPEnterprise Resource Planning

  26. ERP – definition (1) ERP (Enterprise Resource Planning) • Software, business managementconcept and automation informationsystem that integrates multiple (or all) business processes, including planning, manufacturing, logistic, inventory, accounting, human resources, sales, and marketing. • All and totalenterpriseresourceplanning (MK). www.networkdictionary.com

  27. ERP – definition (2) ERP (Enterprise Resource Planning) • Systemthat integrates (or attempt to integrate) all data and processes of an organization into a single unified, collaborative systemwithinSCM. • The acronym ERP originated in the manufacturing environment. • Today'suse of the term ERP systems has much broader scope – ERP II.

  28. ERP - definition ERP(I) mainlyconsistsof: • CRM - CustomerRelationship Management, • SCM - SupplyChain Management, • EDI - Electronic DocumentInterchange, • Finance – bookeeping, accounting, reporting. • E-business / mobile - ERPII

  29. Mobile technology

  30. E-com. SCM Marketplace CRM Portals FI Mobile EDI How ERP system works?

  31. ERP - functionalities ERP – typicalimplementationwouldinclude (1/3): • Manufacturing: Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, QualityControl, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow • SupplyChain Management: Inventory, Order Entry, Purchasing, ProductConfigurator, SupplyChainPlanning, SupplierScheduling.

  32. ERP - functionalities ERP – typicalimplementationwouldinclude (2/3): • Financials: General Ledger, Cash Management, AccountsPayable, AccountsReceivable, FixedAssets • Projects: Costing, Billing, Time and Expense, Activity Management

  33. ERP - functionalities ERP – typicalimplementationwouldinclude (3/3): • HumanResources: Human Resources, Payroll, Training, Time & Attendance, Benefits • CustomerRelationship Management: Sales and Marketing, Commissions, Service, CustomerContact and Call Center support • Data Warehouse: and variousSelf-Serviceinterfaces for Customers, Suppliers, and Employees

  34. ERPcasestudy

  35. IFS Foundation Production scheduling Machinery productivity Report creator Production costs Machinery monitor Scheduling Concern consolidation Preventing repairs Production performance Production performance Fixed Assets Repairs orders Customer orders CRP Capacity Res.Planning Employees qualifications Accounts Recievable Invoicing Equipment providing Payroll rules interface MRP performance Accounts payable Purchases Purchases Production orders Time Management General Ledger Warehouse Warehouse Project designing Master PLAN Laboure time controlling Accounting rules Accounting rules Accounting rules Accounting rules Accounting rules Accounting rules Specification Specification Specification Specification Specification Specification IFS Finance IFS Distribution IFS Repairs IFS Resource Management IFS Production IFS Designing platforma: IFS FOUNDATION

  36. ERP – BAAN IV

  37. KW SRM CRM SEM APO SD FI MM CO PP ERP (R/3) AM QM PS PM WF HR IS SAP ERP (R/3)Enterprise – version4,7 SAP Web Application Server 6,20

  38. SAP ERP – collaborationwithin SCM http://www.sap.com/lines-of-business/scm/solutions-overview.epx

  39. Oracle

  40. SALES and DistributionprocessexecutioninSAP ERP. Logistics and Financial processesintegration on-linepresentation

  41. Integrated business process Sales and Distribution (ERP) and Business Blueprint QM SD SD WM WM WM SD FI FI BI Contractcreation. Sales order (SO) withreference to thecontract Warehouse order creationwithreference to the SO. Materialmovement / picking-upthestock. Postingthematerialmovement. Invoiceposting and publishing. Receivablesanalysis. Paymentposting. Thecontract status analysis. Qualityevaluation of theprocess.

  42. STRATEGIC MANAGEMENT (SEM) / BPM Business blueprint Status contract control Sales order creation Accounts receivablemgmt. Contract creation Outbound delivery Invoice creation Incoming payments SalesOrder VA41 VA01 VL01N VF01 FBL5N F-28 VA43 SAP ERP Material, Customer, GL Accounts, Cost centers etc. Documenttype, Logistics structure, GL, Standard org. structures ABAP (java)

  43. Sales and Distribution (ERP) • EPC / BPM • SAP ERP

  44. Sales and Distribution ( SAP ERP) - Executionprocess - alltransactions

  45. Sales and Distribution ( SAP ERP) - Thecontractcreationtransaction

  46. Sales and Distribution ( SAP ERP) - SD Reporting – towards Business Intelligence

  47. Business Process Management (BPM)

  48. Business ProcessMgmt. BPM– a concept (tool) for managingthecomplexity of business processeswithin one orwithinthenetwork of differentorganizations: • Activelysupports, by controlling complexity, all group interestswithinthenetwork; • Itis a central repositoryof all business processes(best practices); • Betterunderstandingof flowswithinthenetwork. • Global levelvia access to allshared resources.

  49. Business ProcessMgmt. BPM– keyissues and terms: • Process designand mapping– allkey business processesinventory (AS-IS). • Process business simulator – data collection and differentvariantsanalysis and evaluation (TO-BE). • Process developmentand optimization – implementingnewconcepts and business models (TO-BE). • Processautomiccontrol (workflow) - a plannedsequence of operations within a givenprocess.

  50. ProcessMapping / Block diagrams

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