CURRENT ISSUES AND INFLUENCESPresented by: Aditya Lukmanjaya (3094815) l Eka Darmadi (3094802)

Thursday, May 10, 12

What is all about?

Thursday, May 10, 12

Issues & InfluencesExternal and Internal

Thursday, May 10, 12

DEREGULATION• The Reduction of Tariff

Barriers

• The Eliminate of Cross-Border Custom Requirements

• Tax Harmonization

• Transport Deregulation

• Harmonization of Legislation Across Different Countries

Thursday, May 10, 12

ENVIRONMENTAL ISSUESThe ‘Greening’ of Products

The Recycling of Packaging

The Banning of Road Freight Movements

The Design of Product to Minimizing the Packaging

Promotion of Rail over Road Transport

Thursday, May 10, 12

Labour and Staff Availability

A shortage of Managers with a broader knowledge and experience

Labor shortages since skill requirements have changed

Thursday, May 10, 12

SUPPLY CHAIN VULNERABILITY

Natural Disaster

Terrorist Attack

Corporate Failures

Industrial Disuputes

Thursday, May 10, 12

MANUFACTURING AND SUPPLY

✦ New Manufacturing Technology

✦ New Supplier Relationship

✦ Focused Factories

✦ Global Sourcing

✦ Postponement

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product range and characteristic

Product Life Cycle

Stock Levels

Speed of Delivery Service

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Lean Manufacturing & Agile Supply Chain

Dramatic Shortening of Product Life Cycle

Rapid Increase in Variety of Final Products, eg: colors

Build up stock can quickly become obsolete

Development in direct buying and selling, via internet

Thursday, May 10, 12

Factor Gate Pricing

• Reduce Logistic Cost

• Utilization of Their Own Outsourced

• Own Transport Operation

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FREIGHT EXCHANGE

Contract Agreement

Online Transaction System

Bidding Process

Negotiated Face-to-Face

Shippers and Carriers

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Major Outsourcing Concerns

Major Outsourcing Concerns

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Radio Frequency Identification

Track raw materials and work in process goods

Track finish goods and unit loads in DC: reduce labour time and cost

Track finish goods and unit loads to shops or customers: more accurate and timely information

Tracking reusable assetsL improve asset utilization

Thursday, May 10, 12

inventory reduction

• The Maximization of Retail Selling Space

• The Reduction in DC Stock-Holding

• JIT Philosophies and Concepts

• Movement of Activities Back into the DC

Thursday, May 10, 12

ON-SHELF AVAILABILITY

REDUCE PRODUCT MOVEMENT

STOCK MANAGEMENT

PRODUCT AVAILABILITY

Thursday, May 10, 12

HOME SHOPPING & DELIVERY

Development of Home Computer, Banking, and Internet

Different Skill to Undertake the Work

Good Interpersonal Skills

Variety Delivery Option

Picking Operations

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The Need For Flexibility

Fluid Nature of Business

Speed of Change

React Proactively

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INCENTIVIZED CONTRACT

Service Improvement

Cost Reduction

Not Incentive based to Incentive (Open-Book Contract)

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Solving The Structural Issues

n 4 PLs is the answer

n Addressing strategic failure

n Addressing service and cost failure

n Addressing operational failures

n Additional benefits

Thursday, May 10, 12

APPLE CASEThursday, May 10, 12