7 workshop on german-chinese navigating german-chinese ... · chair of logistics, technische...

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In cooperation with: endowed by the Kühne Foundation Navigating German-Chinese Logistics Networks Lead-Time Management in a Globalized World Prof. Dr.-Ing. Frank Straube Christian F. Durach, M.Sc. Dipl.-Ing. Benjamin Nitsche Berlin, September 17, 2015 7 th Workshop on German-Chinese Logistics Networks

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Page 1: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

In cooperation with:

endowed by the Kühne Foundation

Navigating German-Chinese Logistics

Networks

Lead-Time Management in a Globalized World

Prof. Dr.-Ing. Frank Straube

Christian F. Durach, M.Sc.

Dipl.-Ing. Benjamin Nitsche

Berlin, September 17, 2015

7th Workshop on German-Chinese

Logistics Networks

Page 2: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 2 –

Today’s Take Away

Get exclusive insights to the online Navigator Tool for German-Chinese logistics networks

Learn about causes for long lead-times and lead-time variability in different industry sectors

Exchange experiences with some of your peers in the same and different industry sectors

Jointly identify strategies to reduce lead-times and their variability in international supply chains

Note: We seek to provide a platform for you to exchange ideas and concerns in order to allow you to excel in your business in China – take advantage of it.

Page 3: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 3 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 4: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 4 –

The Technische Universität Berlin

HBS Building

• 7th Workshop,

HBS 0.005

Main Building

• Chair of Logistics, H90

Page 5: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 5 –

Students (SS 2015)

Total: 31.702

Male: 21.429

Female: 10.273 (32.4%)

International: 19.3%

Staff (March 2015)

Total: 8.372

Professors: 444*

Researchers: 2,691

Students: 2,630

* incl.visiting and honorary prof.

Faculties

I Humanities

II Mathematics and Natural Sciences

III Process Sciences

IV Electrical Engineering and Computer Sciences

V Mechanical Engineering and Transport Systems

VI Planning Building Environment

VII Economics and Management

› 3.602 students (of which 95% are industrial

engineers)

Institute

Economics, Management

and Business Law

Technology &

Management

Bereich

Logistik

Public funding: 302.6 Mio Euro p.a.

External funding: 174 Mio Euro p.a.

>1.200 research projects and

over 110 research cooperations with

international universities

Presentation of TU Berlin – Chair/Department of Logistics

(1/2)

Page 6: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 6 –

Presentation of TU Berlin – Chair/Department of Logistics

(2/2)

Chair of Logistics at TU Berlin

Teaching

Research

Services

Competence Center

for

International

Logistics Networks

Endowed by

Kühne-Foundation

Head: Prof. Dr.-Ing. F. Straube

Founder: Prof. Dr.-Ing. H. Baumgarten

Honorary professors:

Prof. Dr. S. Jürgens

Prof. Dr.-Ing. R. Klinkner

Prof. Dr. W. Prümper

Lecturers:

Dr. J. Biesemann (Continental)

Dr. S. Doch (ITCL GmbH)

Dr. F. Schupp (Schaeffler Group)

Partner institutes of the chair of logistics in

China, Brazil, Abu Dhabi and France

International

Logistics

Networks and

Services

Prof. Dr.

Sidong Zhang

Endowed by

Kühne-Foundation

Chinesisch-

Deutsches

Hochschulkolleg

CDHK) der Tongji

University Shanghai

ILOS – Instituto de Logística e Supply Chain

Abu Dhabi University

Toulouse Business School

Ecole Centrale Paris

More than 30 years of experience in logistics research and

logistics education at the TU Berlin

Honoured as one of the most research active chairs of the

TU Berlin (TOP 10%)

One of the most important research and education

institutions of logistics in Germany

Facts about the Chair of Logistics

Staff: ca. 20 research associates

10 student assistands

3 non-academic employees

Students: 180 (Summer14), 170 (Winter1415)

Theses: 60 bachelor, master, diploma theses

3 conferrals of a doctorate

Ratio of internal financing: ca. 85%

Key data of the Chair of Logistics (2014/15)

Page 7: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 7 –

eMobilty - Smart eUser

Reduction of urban supply and waste transport through logistics optimization.

The project is a part of a national eMobilty research network. The aim is to

consider costumer’s demand and the use of electric mobility and smart

technologies.

Smart Logistics Grid

The project “Smart Logistics Grid” examines how adaptable and multimodal

logistics networks can be created by use of integrated logistic planning and

regulation as well as the realisation of a SC Operations Room and SC Event

Cloud.

Navigator for German-Chinese Logistics Networks

The project “Navigator for German-Chinese Logistics Networks” a research

project seeks to improve strategic planning processes in German-Chinese

logistics networks.

MX Award: Manufacturing Excellence Award

Providing a platform for experts from academia and practice in order to support

the international and cross-industrial collaboration of our economy, and

honoring best practice manufacturing.

Current Research Projects at the Chair of Logistics –

Selection

Page 8: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

– 8 –

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin

The Research Project: Where do we come from, what is still

to come?

We seek a continous exchange between research & practice,

so fare having focused on risk and volatility.

Company Visits

Workshops Online Tool

Research/

Publications Living Lab

Page 9: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

– 9 –

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin

Multiple German companies seek a new market in

China

Target for today

Infrastructure

need in

Chinese

hinterland

Lack of talent

Chinese domestic market

becomes increasingly important

Chinese companies

become global player

Lack of process

standardization

Increasing demand for

sustainability

Increasing challenges for companies in the Chinese market

Increasing supply chain

volatility

Increasing disruption risks (e.g., natural catastrophes)

Increasing supply chain

volatility

Page 10: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 10 –

Objectives of Today‘s Workshop

Discuss applications and potential improvements of the Navigator

Tool

Discuss how volatile lead-times affect your business

Identify important causes for long lead-times and lead-time

variability

Openly discuss potential strategies to lower lead-times and to

decrease their variability

We want to learn from your experiences in order to develop feasible

solutions for your business

Page 11: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 11 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 12: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 12 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 13: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 13 –

Multidimensional challenges make German-Chinese

logistics networks particularly vulnerable.

Warehouse

Production

Production

Customer

Material Flow

Information Flow

Customer Customer

Customer

Customer

Counterfeit Sub-Products

Transport Infrastructure Failure

Warehouse Fire

Cu

sto

m D

ela

ys

Damaged Goods

Lead Time

Container Loss

Culture

Page 14: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 14 –

Mitigating these challenges through a purposeful design of

your logistics network – An effort that needs practical and

scientific support.

Requirements and Aims of a Planning Support

Planning

Support

Robust Structure (Avoiding/ Resisting)

Concepts to support

Planning Decisions Designing/Planning

Proactiveness

Page 15: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 15 –

The research project „Navigator for German-Chinese Logistics

Networks“ supports logistics planning in international networks.

Target Audience

Automobile, Electronics, Consumer Goods and Logistics Service

Provider Industry

Develop an online logistics data library with relevant practical

network data.

Develop a navigational tool to help build robust German-Chinese

logistics networks.

Identify challenges and mitigation strategies for German-Chinese

logistics networks to build robust networks.

Project Goals

Page 16: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 16 –

Customs Customs

The regulatory framework of this project offers research possibilities

in multiple areas and is open for any additional suggestions you may

have.

Supplier LSP LSP Customer Focal Firm

Robust Logistics Strategies

Manufacturing Distribution Delivery

Distribution Planning

Volume Planning

Order Contact Point

Order Sequencing

Production Planning

Capacity Planning Disposition Planning

Logistics Data Library

Proactiveness Partner

Selection Co-opetition

Talent

Management

Information &

Communication

Technologies

Reactiveness

Supply & Demand Volatility

Disruptive

Risks

Planning of Logistics Networks

Grounded in the Customer Order Process

Good-Practice Supply Chain Concepts

Page 17: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 18 –

Online Logistics Data Library with relevant practical

network data of China and Germany

A first draft is available online

http://china.logistik.tu-berlin.de

Value of import and export

Throughputs of ports

Airports

Metropolitan Clusters

Logistics Region China

E-Commerce Logistics Development of Chain Business

Logistics

China Logistics Costs

Coordinated Development of Manufacturing and Logistics in

China

Development of Cross-Border Logistics System

in Inland China

2013

Page 18: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 19 –

Participants of the previous workshop in Shanghai

(excerpt)

Page 19: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 20 –

The browser based navigational aid will provide a platform for

companies to perform inter-organizational network planning.

Navigator structure

Freely accessible Account access

Joint planning via multi-user browser based online

application

Joint Remote

Planning Teaching Living Lab Valuable Planning

Information

Page 20: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 21 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 21: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 22 –

Cultural gap (misunderstanding)

Legal uncertainty

Transport infrastructure failure

Customs compliance

Industrial espionage

Unfair competition

Non-complient partner

Supplier insolvency

Corruption

Restricted number of appropriate suppliers

Relocation of partner

Unexpected supplier plant outage

Natural disasters (Metrological)

Political unrest

Inferior quality due to handling errors

Strikes

Criminal acts (endogenous)

Criminal acts (exogenous)

Counterfeit sub-products

2,5

3,0

3,5

4,0

4,5

5,0

5,5

2,5 3,0 3,5 4,0 4,5 5,0 5,5

Pro

bab

ilit

y

Impact

In previous workshops we mastered to identify most

pressing disruption risks in the Chinese market.

Page 22: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 23 –

For some of these risk we identified an evaluated specific

mitigation strategies.

Cultural gap (misunderstanding)

Legal uncertainty

Transport infrastructure failure

Customs compliance

Industrial espionage

Unfair competition

Non-complient partner

Supplier insolvency

Corruption

Restricted number of appropriate suppliers

Relocation of partner

Unexpected supplier plant outage

Natural disasters (Metrological)

Political unrest

Inferior quality due to handling errors

Strikes

Criminal acts (endogenous)

Criminal acts (exogenous)

Counterfeit sub-products

2,5

3,0

3,5

4,0

4,5

5,0

5,5

2,5 3,0 3,5 4,0 4,5 5,0 5,5

Pro

ba

bil

ity

Impact

Identification of Disruption Risks

using the „Nominal Group Technique“

Identification of Appropriate

Mitigation Strategies

Page 23: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 24 –

SC Example I: Supply Chain of a German tier-1 automotive

supplier for turned parts – Lead Time Issues

DC

Supplier

Material flow (Supply)

Purchasing

Information flow*

Material flow (Distribution)

Shanghai, DC

Tier 1

Tier 1

Tier 1

Tier 1 Tier 1

Tier 1 Tier 1

Tier 1

Tier 1

Tier 1

Purchasing

Office

Tier 2

Tier 2

Poland

Serbia

South Africa, DC

Brazil, DC

• Purchasing Volume: 6 Mio. €/a

• Order Lead Time: ~6 months

• Material Sourcing: 70% from China

• Shipment cycle: 1 shipment per week

• Make-to-Order

Suppliers

• Delivery reliability:

~60%

General Company

Information:

• >3100 employees

• 10 product groups

• >25000 SKUs

• >2000 suppliers • Make-to-Stock

production

• Risk: >52 supply chain

disruption/a

• Delivery reliability:

>99%

Page 24: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 25 –

SC Example II: SC of a tier-1automotive supplier for steering

systems – Disruption Issues

Material flow

Information flow

Cross-Dock (supplier)

Production site (Steer Inc.)

SC headquarters

Production site (supplier)

Tier 3

Tier 4

Malaysia

Japan

China

Tier 1

Tier 2

Tier 3

• 1st tier supplier for electric

motors supplies Steer

Inc. productions sites in

China and Europe

• 2nd tier supplier for relays

fails to deliver the right

amount at the right time

• 3rd tier supplier delivery

transistors to relay

manufacturer

• Steer Inc. is doing regular

capacity checks with 4th tier

(wafer supplier) to ensure

feasability of orders

Page 25: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 26 –

Managing supply chain volatility has been the topic of the

last workshop and will be central to this workshop as well.

We define volatility as the unplanned variation of upstream and downstream material

flows resulting in a mismatch of supply and demand at the focal firm.

Definition of volatility

Supply chain events can be classified as recurrent and disruptive events. To specify

the focus of this workshop, volatile material flows that are caused by supply chain

disruptions are excluded.

The main goal of managing volatility is to adjust the upstream and downstream material

flow in order minimize total costs and avoid the negative effects of out of stock situations.

Objectives of volatility management

Page 26: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 27 –

The survey results indicate the usefulness of a platform for

exchanging practices on the management of volatility

0 1 2 3 4 5 6 7

We are completely aware of all reasons forvolatile material flows

Companies located in China experience ahigher degree of volatility than companies

located in Western countries

Our suppliers are capable of managingvolatile material flows

Due to a lack of capabilities the negativeimpacts of volatility are severe

The resulting challenges to deal withvolatility are very high

Volatile material flows affect our dailybusiness

Mean

Std

Totally disagree Indifferent Totally agree

*Data according to pre-workshop questionnaire in Berlin and Shanghai

Page 27: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 28 –

Supply Side (vom Lieferant): Supply Side Volatility

What is your highest positive/negative deviation from this order quantity per month within

one year?*

Highest Positive Deviation Highest Negative Deviation

56% 46% Average Ø**

1000%

Min

Max

5%

100%

10% *Data according to pre-workshop questionnaire in Berlin and Shanghai

**Outlier excluded

Page 28: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 29 –

Supply Side (vom Lieferant): Delivery Quantity Deviation

To what percentage does the delivery quantity deviate from your order quantity on

average?*

38%

25%

18% 19%

0% - 5% >5% - 10% >10% - 30% >30%

Classification of Quantity Completeness of Delivery

*Data according to pre-workshop questionnaire in Berlin and Shanghai

Page 29: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 30 –

Supply Side (vom Lieferant): Complete Delivery

Please specify the percentage of complete deliveries (nothing missing) that are delivered

on-time.*

41%

6%

29%

18%

6%

<=84% >84% - 90% >89% - 95% >95% - 98% >98% - 100%

Classification of Timeliness of Delivery

*Data according to pre-workshop questionnaire in Berlin and Shanghai

Page 30: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 31 –

Demand Side (zum Kunde): Demand Side Volatility

Highest Positive Deviation Highest Negative Deviation

62% 47% Average Ø**

1000%

Min

Max

10%

100%

10%

What is the highest positive/negative deviation of sales per month you experience within one

year?*

*Data according to pre-workshop questionnaire in Berlin and Shanghai

**Outlier excluded

Page 31: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 32 –

Demand Side (zum Kunde): Delivery Reliability

Please specify your delivery reliability for that product.*

53%

20%

7%

13%

7%

<90%Latecomer

90% - <97%Catch up

97% - < 98%Typical

98% - <100%Advanced

100%Best in Class

Classification of Delivery Reliability*

Classification is based on German Automotive Industry performance according to Handfield et al. (2013).

*Data according to pre-workshop questionnaire in Berlin and Shanghai

Page 32: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 33 –

Your Company

In the last workshop we sought to identify the most

pressing root causes of volatility in supply chains.

• Identification of drivers of volatile material flows in supply chain

A driver is understood as a controllable or uncontrollable factor that increases

volatility in your supply chain.

• Classification of drivers according to the following categories:

1. Exogenous to your supply chain

2. Endogenous to your supply chain (supply chain partners)

3. Self-induced

Goal of the 6th Workshop (Shanghai)

Source Make Plan Deliver Suppliers Customers

Self-induced Endogenous Endogenous

Exogenous

Page 33: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 34 –

A multitude of drivers for volatile material flows have been

identified.

Exo-

genous to

the SC

Endo-

genous to

the SC

Self-

induced

Weather

Seasonality/holidays

Demographic changes

Economic instability

Exchange-rate volatility

Competition

Labor shortage

Customs regulations

Legal changes

Technological development

Political instability

Cultural differences

Capability of suppliers

(quality & capacity)

Lead-time variability

Demand forecasting

processes

of suppliers

Inter-organizational

misalignment (technology &

communication)

(expected) unstable material

prices

Financial instability of

suppliers

Lack of information

transparency in the SC

Lack of service quality (LSP)

Lack of IT

Quality issues

Long/short product life

cycles

Design/engineering changes

Intra-organizational

misalignment

Delayed management

decisions

Internal forecasting

processes

Lack of long-term capacity

planning/flexibility

New product launches

Product variety

Network complexity

Human error

Technical issues/unstable

production

Page 34: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 35 –

Managing lead-time variability has been prioritized as one of

the most pressing sources of volatile material flows.

Exo-

genous to

the SC

Endo-

genous to

the SC

Self-

induced

Weather

Seasonality/holidays

Demographic changes

Economic instability

Exchange-rate volatility

Competition

Labor shortage

Customs regulations

Legal changes

Technological development

Political instability

Cultural differences

Capability of suppliers

(quality & capacity)

Lead-time variability

Demand forecasting

processes

of suppliers

Inter-organizational

misalignment (technology &

communication)

(expected) unstable material

prices

Financial instability of

suppliers

Lack of information

transparency in the SC

Lack of service quality (LSP)

Lack of IT

Quality issues

Long/short product life

cycles

Design/engineering changes

Intra-organizational

misalignment

Delayed management

decisions

Internal forecasting

processes

Lack of long-term capacity

planning/flexibility

New product launches

Product variety

Network complexity

Human error

Technical issues/unstable

production

Page 35: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 36 –

From the previous workshop data we developed a framework to

manage disruption risks and volatility in German-Chinese

logistics networks.

Page 36: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 37 –

The framework builds around six measurement categories that are

central to the project and provide the basis for developing new

concepts.

Page 37: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 38 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 38: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 39 –

Goals of the Navigator Tool

The overall goal of the Navigator Tool is to support practitioners in

planning robust logistics networks between Germany and China.

Therefore it helps to visualize supply chains.

It aims to accumulate supply chain data that is widely spread among

different departments and suppliers.

The tool forces logistics planners to think about their supply chain structures.

It provides valuable planning information, logistics data and

management concepts for different steps of supply chain planning to

improve supply chain robustness.

Page 39: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 40 –

Planning steps of the Navigator Tool

1. Define all countries needed to draw the network under consideration.

2. Choose all nodes for the network and place them on the created map.

3. Define all available and necessary information for each node.

4. Draw the material flow between the nodes starting from the node that is furthest upstream in your network, through using the „edge“ symbol.

5. Define all available and necessary information for each edge.

6. Define material flows on all edges. The tool will automatically calculate inputs and outputs in each node.

7. To relate inputs and outputs in each node, define the Bill of Material in each node.

8. In case needed, send your project to some of your peers to develop it further.

9. Critically analyze your network through visual inspection and going through the data provided in the logistics data library and the navigational aid

Page 40: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 41 –

The Navigator Tool can be found on our Website

• You can find the

Navigator Tool on our

website

• www.china.logistik.tu

-berlin.de/wp/

Page 41: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 42 –

Navigator Tool – Login screen

• By clicking on the “Register”

button you can create your own

account

Page 42: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 43 –

Navigator Tool – User profile

• In your account you will find an

overview of your projects

• You can also invite colleagues

to your project to jointly plan

your supply chain

• By clicking on the “Add new

project” button you can start a

new project

Page 43: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 44 –

Navigator Tool – Starting a new project

• Before starting a new project

you have to determine general

project data, currency and

relevant companies for your

supply chain project

Page 44: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 45 –

Navigator Tool – Adding nodes to your network

• Every project starts on blank page

including maps of Germany and

China

• The navigation area on the left

includes different node types of a

supply chain

• By selecting a node type you can

add warehouses, factories,

suppliers, customers etc. to your

network

Page 45: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 46 –

Navigator Tool – Adding countries

• By using the „Add country“ button

you can add additional countries to

your supply chain

Page 46: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 47 –

Navigator Tool – Definition of material flows between nodes

• By using the „Add edge“ button you

can connect your nodes to visualize

the material flow between them

Page 47: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 48 –

Navigator Tool – Crafting the supply chain

• By adding additional nodes and

edges to your network you can craft

your whole supply chain step by

step

• Once you have finished this process

you can start adding additional

supply chain data to the nodes and

edges

Page 48: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 49 –

Navigator Tool – Compiling node information

• By double-clicking on different nodes you can

determine relevant supply chain data for every supply

chain actor:

Node Info: Name of Node, owner, operator, address

etc.

Input: includes all products that are delivered to that

node, will be generated automatically after definition

of material flows in the supply chain

Output: Description of all outputs, will be generated

automatically

BOM: Definition of bill of materials for every output

product

Page 49: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 50 –

Navigator Tool – Definition of material flows

• By double-clicking the edges you can determine the

material flows in your supply chain:

Edge Info: Operator, transport carrier, transportation

time etc..

Edge goods:Definition of all products including

names, quantities, prices, measures, weights,

transport costs etc.

Page 50: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 51 –

• A comments function will be

implemented to discuss your supply

chain project with peers and

suppliers

Navigator Tool – Comments function

Page 51: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 52 –

• The „navigational aid“ provides

planning information, logistics data

and management concepts that will

help supply chain planners to plan

robust logistics networks

Good practice supply chains:

supply chains from electronics,

automotive und consumer goods

industry that have been

generated within the project

Logistics data library: includes

relevant logistics planning data

Planning information:

information materials e.g. on

customs management,

successful market entry, supplier

selection processes, cultural

aspects, logistics costs etc.

Risk and volatility

management framework:

framework has been developed

during the project, it contains

management concepts and

strategies to deal with risks and

volatilities in the chinese market

Navigator Tool – Navigational aid to support supply chain

planners

Page 52: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 53 –

How the tool can and cannot support you.

What it is not

The tool is not a strategic optimization tool that automatically adjusts your network to fit an optimal solution.

The tools strength

Freely available browser based tool.

Easily accessible from all around the world not requiring any software to be installed on your laptop or PC.

Helps to easily pool knowledge across complicated and sometimes complex network structures.

Aims at making the supply chain planner critically analyze her/his network

Important information will be presented in a structured way that is considered a “navigational aid” to supply chain managers, as it provides cross level decision support in prioritizing and selecting network alternatives.

Page 53: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 54 –

Let‘s go online…

Page 54: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 55 –

Discussion questions

Do you already have a structured overview on your supply chains?

How do you visualize your supply chain structures for new colleagues?

Do you store your supply chain data centrally?

How do you go about analyzing your supply chains?

Now, that you have seen the process and value of our tool, do you see additional

features we should consider in our tool that could help you? Would you be willing

to provide further feedback after you have applied it at your company?

Please let us know if you are interested in receiving more information regarding

the tool, such as a presentation at your company.

Page 55: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 56 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 56: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 57 –

With your help we aim to design a lead-time management concept

that helps decrease lead-times and lead-time variability.

Page 57: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 58 –

Status Quo: Western companies face very long and volatile

lead-times within their logistics networks

DC

Supplier

Material flow (Supply)

Purchasing

Information flow*

Material flow (Distribution)

Shanghai, DC

Tier 1

Tier 1

Tier 1

Tier 1 Tier 1

Tier 1 Tier 1

Tier 1

Tier 1

Tier 1

Purchasing

Office

Tier 2

Tier 2

Poland

Serbia

South Africa, DC

Brazil, DC

• Transportation to

Germany: 5 weeks

• material purchasing of

the supplier: 2-3

weeks

• Production: 3-4 weeks

• On a yearly basis headquarters

determine binding annual order

quantity for each supplier

• transport and

warehousing in China:

1-2 w

• Possible total lead-time: 12-14 weeks

• Nevertheless they face a lead-time of

5-7 month from order placement to

arrival in Germany for every single

order

Page 58: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 59 –

Underlying definition and understanding of lead-time in this

workshop

Placement

of Order at

Supplier

Start

Lead-Time End Lead-

Time

Receiving

Shipment

Production/

Transformation Delivering Transportation

Product

arrives at

Customer

Shipping

Lead-Time

Source: Gudehus (2007. p. 218)

Lead-Time starts when you order the product at your

supplier, and it ends when the transformed product reaches

your customer.

Definition

Lead-Time is the sum of all throughput times (manufacturing, transportation,

idel, waiting, storage etc.).

Page 59: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 60 –

Why do we want to manage our lead-times?

Lead-time vs. Service cost

• Competitive advantage (higher customer satisfaction)

• Potentially higher prices

• Etc.

Advantages from decreasing lead-times

• Higher costs due to increased working capital • More puffers needed • More space needed • Etc.

Disadvantages from decreasing lead-times

The automobile industry sometimes experiences idle times that

are 5 to 10 times higher than the sum of all set-up, production

and transportation times (Gudehus, 2007).

Potential?

Page 60: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 61 –

Re

lative

Va

ria

bil

ity o

f L

ea

d-T

ime

Length of Lead-Time

Two different dimensions in lead-times

Short lead-time with some

delays

Medium lead-time with hardly any variability

Long lead-time with strong variability

Page 61: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 62 –

Workshop I: What causes long and variable lead-times in

German-Chinese logistics networks?

Logistics Services Customs

Distance Culture

Page 62: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 63 –

When does variability in lead-times become important?

Variability is always realtive to the average expected length of

the lead-time.

What does

this mean?

When your delivery time is calculated in weeks, a deviation of one

week might be considered normal. If your delivery time is calculated

in calendar days, you will not try to deliver using exact ours.

Note

Page 63: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 64 –

We want to develop a „Lead-Time Flexibilization Management

Concept“ that provides a guideline to analyze, cluster and reduce

lead-times.

Structured

analysis of lead-

times in the

supply chain

Identification of

critical

processes

Implementation

of lead-time

reduction

measures

• Determination of lead-times and lead-time variability for main processes of all

actors in the supply chain (raw material suppliers, n-tier suppliers, OEM,

customer) according to a structured process model

• Identification of appropriate measures with the help of a Measurement

framework to reduce lead-times and variability in supply chains

• E.g. capacity insurance program

Raw material

suppliers 1st-tier supplier … OEM

Process Leng

th LT

Variability LT

- +

Purchasing 14 0 21

Prod. Planning 7 3 3

Production 3 0 0

Distribution 3 0 3

Page 64: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 65 –

Workshop II: Identify management strategies

Suppliers Processes

Trans-

portation

In-house Processes

Trans-

portation Pur-

chasing

Prod.

Planning

Pro-

duction

others Pur-

chasing

Prod.

Planning

Pro-

duction

others

Re-Design

(e.g., bottle neck

reduction, order

penetration point,

change order of

processes, make

processes parallel etc.)

Partners

(e.g. increase cultural

understanding, reduce

avoidable steps in your

network etc.)

Management (e.g.

agree on dates and

schedules, standardize,

reduce disruptions etc.)

Others

Source: Gudehus and Kotzab (2012)

Placement

of Order at

Supplier

Start

Lead-Time End Lead-

Time

Receiving

Shipment

Production/

Transformation Delivering Transportation

Product

arrives at

Customer

Shipping

Lead-Time

Ma

na

ge

me

nt

Str

ate

gy C

luste

rs

Page 65: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 66 –

Two workshops will provide the framework for today‘s

group discussions

Talk about your most important

causes for long and variable lead-

times

Identify lead-time management

strategies

Workshop I Workshop II

Goal

• Identification of causes for long

and variable lead-times

• Decide jointly on the causes that

seem to have the biggest impact

on your business performance

Goal

• Identify supply chain strategies to

decrease lead-time and lower lead-

time variability

Page 66: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 67 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 67: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 68 –

Workshop I: Causes for Long and Variable Lead-Times

Individual sharing of causes

one after the other

2

30 min

1

In each group: write down your

individual causes for long and

variable Lead-Times.

15 min

Guiding questions:

• What are the causes for long and variable lead-times in your supply chain?

3

Each Group 7 min

Presentation of results from Workshop I

by group leaders

Choose a group leader to present the results to the plenum.

Suppliers Processes

Trans-

portation

In-house Processes

Trans-

portation Pur-

chasing

Prod.

Planning

Pro-

duction

others Pur-

chasing

Prod.

Planning

Pro-

duction

others

Long Lead-times

Variable Lead-times

Page 68: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 69 –

Workshop Groups

Group 1

• Dr. Alessio Merlin

• Frank Bieber

• Thomas Engeln

• Matthias Genthe

• Jens Happe

Group 2

• Dr. Padideh Moini

Gützkow

• Korinna Wüstefeld

• Marc Stichert

• Rainer Schmitt

• Piotr Dopierala

Group 3

• Markus Wagner

• Andre Remy

• Yawei Zhen

• Dr. Lars Dittmann

• Christoph Paulus

Group 4

• Andrea Wolf

• Stefan Schleich

• Georg Feng

• Markus Punzmann

• Hans-Gunnar Elias

Page 69: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 70 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 70: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 71 –

Workshop II - Identification of Internal Mitigation Strategies

Individual sharing of ideas

and opinions, followed by a

discussion.

50 min

In each group: individual

generation of mitigation

strategies for each cause.

20 min

Take notes of the strategies

and further ideas.

Draw a dot behind each

cause that you want to

talk about

1

10 min

2

Choose a group leader to present the results to the plenum.

3

Page 71: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 72 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

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Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 73 –

Presentation of Results from Workshop II

1

Each Group 8-10 min

Presentation of mitigation strategies

from Workshop II

Feedback and comments on

additional strategies by other

groups

2

3-5 min

Page 73: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 74 –

Agenda

08:30 – 09:00 Registration of the participants and welcome tea & coffee

09:00 – 09:15 Opening Note & Target for Today

09:15 – 09:45 Self-introduction of Workshop Participants

09:45 – 10:15 The Project & Results Achieved

Motivation and Goals of the Project

Results and next steps

10:15 – 11:15 Presentation and Discussion of Navigator Tool

11:15 – 11:30 Introduction to Workshop

11:30 – 12:45 Workshop I: Causes for Long and Variable Lead-Times

12:45 – 13:45 Lunchtime

13:45 – 15:15 Workshop II: Identification of Mitigation Strategies

15:15 – 15:30 Tea & Coffee Break

15:30 – 16:15 Presentation of Workshop Results

16:15 – 16:30 Summary, Feedback and Farewells

Page 74: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 75 –

Outlook

The „Navigator for German-Chinese Logistics Networks“ is a long-term

project.

It draws from regular exchanges between industry and academia to

build concepts.

We need your input and desires to allow us to build top and

generalizable solution concepts.

Today’s focus on network volatility is a fundamental part of the project.

Please approach us if you are interested in a closer collaboration. We

would be happy to have a closer exchange with you, to get more

insights on how you plan your network and identify issues you may

have.

Page 75: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 76 –

Thank you for participating!

What follows next?

We will send you a summary of the workshop results.

We will keep you up to date on all developments in the project.

We would be happy to welcome you at one of our next workshops!

1

2

Page 76: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Deutscher Wirtschaftsingenieurtag (DeWIT) 2015

Managementkongress für Entscheider und Vordenker

an der Technischen Universität Berlin

Thema 2015: „Führung · Netzwerke · Digitalisierung“

Veranstaltung: Hochwertige Netzwerkveranstaltung,

Informations- und Diskussionsplattform für

Top-Führungskräfte, Manager, Unternehmer,

Wissenschaftler, Young Professionals und

Studierende, insbesondere für

Wirtschaftsingenieure

Datum: 19. und 20. November 2015

Anmeldung: www.dewit.de

Page 77: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 78 –

Room for feedback!

Page 78: 7 Workshop on German-Chinese Navigating German-Chinese ... · Chair of Logistics, Technische Universität Berlin – 3 – Agenda 08:30 – 09:00 Registration of the participants

Lead-Time Management in a Globalized World, September 17, 2015

Prof. Dr.-Ing. Frank Straube

Chair of Logistics, Technische Universität Berlin – 79 –

Contact

Prof. Dr.-Ing. Frank Straube

Fachgebiet Logistik

Technische Universität Berlin

+49 30 314-22877 (Tel.)

[email protected]

Dipl.-Ing. Benjamin Nitsche

Fachgebiet Logistik

Technische Universität Berlin

+49 30 314-26007 (Tel.)

[email protected]

Christian F. Durach, M.Sc.

Fachgebiet Logistik

Technische Universität Berlin

+49 30 314-24568 (Tel.)

[email protected]

Please follow us on:

http://china.logistik.tu-berlin.de/