“Deliver”
Management on SCOR Model (1)
By: Wibisono
Adhi
In manufacture industry,
speed is one of the most important elements to support business process. On
time and in full delivery usually become the common customer points of interest
that will determine business success to satisfy customer expectations. The main
point of delivery management system is to provide reliable delivery process
that meet customer and company expectation with reducing delivery cost as low
as possible. In order to provide reliable delivery process, there are so many
variable and factors which may affect the quality of the delivery process.
Those variable and factors may come from internal or external of the company.
Those are always related to all stake holders especially partners or the
customers itself. They need serious attention from company management. There
are at least 5 points that would make a difference in delivery process
management which are network design, decoupling point, incoterms, transportation,
warehousing and reverse logistic.
Network design allows
selecting the most cost-effective solution to meet customer requirements. For
example with network redesign there can be cost reduction, less average
distance to customers, and less carbon footprint. This efficiency may be
conduct just only by rearranging the distribution line or merely put additional
distribution center. With a proper network design it may give a better service
level, optimizing a network and reduce distribution cost. Factories, warehouse,
and transportation have often already been optimized individually, but in
global perspective these partial optimization may not be (and is not likely to be)
a global optimum. By enlarging the optimization scope, distribution managers
can emulate to lever from bigger perspective for example by optimizing product
synergies, it also helps to solve volume issue and transportation cost issue or
others. Network optimization starts usually with customers’ requirements, so it
always takes into accounts services and lead time. The global optimization is
heavy, recurrent, and significant approach, which requires good modeling of
flows together with storage and transportation cost.
Network optimization can be
done at three levels. The first level that I like to point out is on strategic
level. On Strategic level it is all about position of nodes and arcs. Strategic
choices will define long term investment (usually 10 years or 5 years
planning). Some question need to be answered considering given service offering
and volume forecast. The question such as where factories and warehouses should
be located to meet current and future requirement of target market, which
assets/means should be put in place to best utilize transportation modes between
network nodes, and how to find synergies with other flows. Although the
business planning is made for a long term, these questions can be considered each
year, or whenever necessary. For example to follow an acquisition, with
additional resource a network modification is always possible as long as it is
still coverage within company’s master plan. Next level that not less important
is network optimization on tactical level. On this level of management,
planning activity is made based on actual business event. Tactical choices
determine how the define network is operated. Tactical choices such as which
factory/warehouse will serve which customers, where the backup scenarios are
(e.g.; in case of shortage or transport limitation), how company manage volume
variation in the network, which level of flexibility should be put in place and
how it is implemented, which transportation mode should be used on a given
route. This level calls for the use of shop-floor scheduling rules and
manufacturing tradeoffs. On the last layer, operational level, it is order
execution optimization. Some points which able to be optimized are order
preparation, order size and frequency trade off (EOQ), choice of the best
transportation mode, joint shipment delivery scheduling, organized response to
random events, information feedback, and performance measures. This
optimization supported by the rigorous application of management of management
rules defined during strategic and tactical optimizations.
Management of the
information flow is the key to optimization at tactical and operational levels.
On tactical process MRP, MPS, and DRP are best be done using factory
programming, while business transactions such as order, shipping and invoice
handling may be improved adapting to external stakeholder. A key success factor
is visibility, i.e. access by all supply chain actors to the same relevant and
up to date information. Although different actors manage each optimization
stage, a supply chain managers is a natural link between all stages. Sometimes
we will not find any team in a company merely focusing on strategic, tactical
or operational level. Nevertheless, a team will be formed to take care of
specific task such as network optimization unit, supply planning unit, and
shipping unit.
