Planning building & operating 3rd party warehousing
-
Upload
imdad-logistics -
Category
Business
-
view
183 -
download
0
description
Transcript of Planning building & operating 3rd party warehousing
PLANNING - BUILDING & OPERATING
3rd Party Logistics Centre Riyadh 2010
WWW.imdadlogistics.com 1
Functional Assessment 5Ws & 1H
WWW.imdadlogistics.com 2
What?
Why?
Who?
Where?
When?
How?
WWW.imdadlogistics.com 3
WHAT?The What Series
What is?
• Supply ChainNetwork that ensures the flow of products
• Third Party LogisticsOutsourcing to a Logistics Provider the flow of goods and information from sourcing raw materials to end consumer
• Main elements: Freight Forwarding – Warehousing – Local Delivery –Transportation Overland/intercity & (Water, Rail, Air cargo)
WWW.imdadlogistics.com 4
• What type of Logistics Centre?
Operational Specifications
…The What Series (continued)
Cannot Start the logistics centre without pre-defining its operational specifications
…The What Series (continued)
WWW.imdadlogistics.com
• What are Operational Specifications? Product Mix Master File– What Type of Goods?
Hazardous, Pharmaceuticals, Food, Raw Material, Semi-Finished, Assembly manufacturing, Perishables …– What Types of Storage & Handling?
Transit, repository,, stockholding, accumulation, Dry, Frozen, Chilled, Open Yard, Bulk, Palletized, Heavy, Light… Pallet in/out, Carton, Container, Piece picking… Pre-Manufacturing & Post-Manufacturing warehousing
• What will then be the Engineering & Technical Guidelines?– Tall, Big, High, Raised Floor, Plot to Construction Ratio, Docks to Floor Ratio, Office
to Floor Ratio, Mezzanine, Crane truss & beams, Future Development Strategy-Outside Expansion-Inside Changes
5
Notes• Standard type of DC cannot serve the totality of businesses
An Engineering Compromise could widen the serviced categories
Standards for Engineering Design Decision• Maximum Cubic Capacity• Fastest Method of Handling Goods • Lower Cost/InvestmentMeeting the max Productivity & Utilization and Cost Efficiency of Operations
WWW.imdadlogistics.com 6
…The What Series (continued)
3rd Party Logistics
Operational Benefits
Financia
lBenefit
s
WWW.imdadlogistics.com 7
WHY?The Why Series
Why go for 3rd Party Logistics? Customer’s Benefits
WWW.imdadlogistics.com 8
…The Why Series (continued) Why go for 3rd Party Logistics?
Keywords of the mission and vision statements of a 3PL
For Customer’s INVESTMENT – Will save cash flow allowing development in Manufacturer’s core business
For Customer’s OPERATIONS– Full Utilization /productivity of Space, Equipment & Manpower– High Accuracy in Live Inventory Balances – Proper Inventory Cycle – systems offering visibility & control
• Investment in Productive Assets = Higher Production Capacity (Higher Market Share)
• Higher Utilization and Productivity (Decrease in Operating Costs)• Accurate Lead Times in receiving and shipping (Customer Satisfaction)
• Better fulfilment rates(Customer Satisfaction)• Minimum strategic inventory (Higher Cash Flow)
• Minimum Stock Expiration (Lower Cost)• Minimum Near Expiry Date Deliveries(Customer Satisfaction)
Results Results Results Results
WWW.imdadlogistics.com 9
…The Why Series (continued) Operational Solutions Translated into Financial Results
Operations
Customer Service
Logistics Efficiency
Just-In-Time Logistics
Assets Investment & Utilization
Financial Transaction
Higher Sales
Lower Cost
Lower Inventory Level
Lower Fixed Assets
Financial Result
Profit
Lower Capital Employed
ROI
WWW.imdadlogistics.com 10
…The Why Series (continued)
Why launch a 3PL in KSA ?
• Large Economy of 400 billion $ GDP
• Governmental efforts for diversification increasing non-oil sectors
• 3PL success stories in smaller economies
• Early bird catches the worm – Competition still minimal
WWW.imdadlogistics.com 11
WHO?
3rd Party Logistics
Logistics
Operations
Management
Long Term Investment
WWW.imdadlogistics.com 12
…Who? (continued) INVESTMENTS• Facilities Construction & Infrastructure• MHEs, Racking Systems, Refrigeration & Fire Systems and Information systems& Hardware
are tools necessary for operating the business and require major investments as well, Transportation vehicles, maintenance equipment & workshops
• Availability of Working Capital awaiting the Cash Inflow from Sales
MANAGEMENT• Define the guidelines for construction & equipment• Implement Clear Operational Cycle and related Processes• Manage day to day operations• Implement a logistics management systems• Implement & Manage Operations & Support Depts • Promote Productivity, Quality & Cost Efficiency• Issue & communicate reports providing full visibility & Analysis• Introduction to Logistics KPIs• Health, Safety & Environment awareness• Recruit, Train, Motivate and Develop
WWW.imdadlogistics.com 13
WHEN?
NOWMeeting the trends
• Logistics costs = 10% of GDP
an emerging business worthy to explore
• in USA: 63% of firms now either partially or fully outsource their logistics and trends go towards the termination of this function within commercial and industrial firms
Customer’s need for:
Capital Leverage & Operations Quality
•Project InitiationI•Information GatheringII•Design & DevelopmentIII•DeploymentIV•Training & EducationV•Go LiveVI
WWW.imdadlogistics.com 14
HOW?
WWW.imdadlogistics.com 15
…How? (continued)
Implementation ProcessPhase I: Project Initiation
Documents Produced
Project Initiation Document:
KSA Logistics Market Overview
Recommended project scope objectives and deliverables & Location
Business Plan : Market Overview
Technical Overview
Financial Overview
WWW.imdadlogistics.com 16
…How? (continued)
Implementation Process
Phase II: Information Gathering• Data Gathering – Product Mix Master File of the designated Location
(research, questionnaires & surveys)• Defining Engineering & Technical guidelines• Defining handling requirements Vehicles, MHEs, Racking & Refrigeration &
Fire Systems ,IT and Manpower requirements
• Documents Produced:
Business Review Document (BRD) & Revised cash flow projection with necessary funding requirements
WWW.imdadlogistics.com 17
…How? (continued)
Implementation ProcessPhase III: Design & Development• Developing final:
Engineering & Technical Plans
• Documents Produced:– Warehouse, offices & Staging Yard Plans– Business Review Document (BRD), the New Process phase.– Functionality Review Documents (FRDs), Systems customizations
WWW.imdadlogistics.com 18
…How? (continued)
Implementation ProcessPhase IV: Deployment• The Phase of warehouse & staging yard Construction converting the
outputs of the Design & Development Phase to a concrete solution• Recruiting, filling the preset org chart• Implementing SOPs & Systems
• Documents Produced:– Operation Procedures and Manuals– Information Systems User Accepted Testing (UAT) scenarios & results– System Integration Testing (SIT) scenarios & results– Org Chart by name and function
WWW.imdadlogistics.com 19
…How? (continued)
Implementation Process
Phase V: Training & Education:
• Documents Produced: Training & Education Report
Phase VI: Go Live:• The Phase of putting into operation the designed solution in the
previous Phases
• Documents Produced: Go Live Report
WWW.imdadlogistics.com 20
Outsourcing Logistics is the current trend all over the world. Results Financial: Higher ROIOperational: Productivity, Just in Time & Zero ErrorBefore launching a Logistics Centre you need
to know its target operation.
SU
MM
ING
U
P
WWW.imdadlogistics.com 21
CV
The team has over 25 years of experience in Logistics Management
o Construction of mega warehouses and logistics centreso General management Levels in multinational end to end
supply chain corporations (warehousing, Transport & Freight)
o Field managers of logistics centres and FMCG companieso Field Managers of information systems, planning and
interfacing hundreds of 3PL & 4PL projectso Managers in logistics finance and feasibility studies with
multinational companies
WWW.imdadlogistics.com 22
QuestionsTimelines for Implementation Process 1&2:1 3:3 4&5&6:18 - Pilot Project – Performance Assessment Standards – Renewable Services Management Agreements – Service the full supply chain (Storage, Delivery, transportation & freight forwarding)
?
WWW.imdadlogistics.com 23
Thank You ?Questions