Thursday, January 30, 2020

Terapkan Zero ODOL, Biaya Logistik Bisa Naik

Dewan Pemakai Jasa Angkutan Indonesia (Depalindo) menilai tindakan penghilangan truk obesitas berisiko menambah biaya logistik yang berujung pada peningkatan laju inflasi.

Rinaldi Mohammad AzkaRinaldi Mohammad Azka -
30 Januari 2020  |  16:31 WIB, JAKARTA -- Dewan Pemakai Jasa Angkutan Indonesia (Depalindo) menilai langkah Kementerian Perhubungan (Kemenhub) menghilangkan truk obesitas berisiko menambah biaya logistik yang berujung pada peningkatan laju inflasi.

Ketua Depalindo Toto Dirgantoro mengaku tidak keberatan dan bisa menjalankan keinginan pemerintah untuk menghilangkan praktik muatan berlebih pada truk atau over dimension and over load (ODOL).

"Cuma ada satu resikonya, pada saat ODOL ditiadakan maka ongkos itu akan naik, dengan ongkos itu naik pastinya biaya logistik pasti naik. Artinya, timbul [dampak ke] inflasi dari biaya logistik tadi," ujarnya kepada Bisnis, Kamis (30/1/2020).

Dia membandingkan praktik angkutan barang di Indonesia dengan Malaysia. Menurutnya, di Negeri Jiran banyak pengusaha yang menggunakan truk dengan dimensi sasis panjang atau biasa dikenal dengan truk obesitas.

Di sisi lain, pihaknya mengkritisi kualitas konstruksi jalan yang terlalu rendah. Seringkali konstruksi pembangunan jalan tidak sesuai dengan peruntukkan kelasnya.

"Seharusnya tidak ada masalah, yang menjadi masalah adalah jalannya kelas dua, tetapi konstruksi pembangunan bukan untuk kelas dua, sehingga cepat rusak," katanya.

Sebelumnya, Kementerian Perhubungan dan Kementerian PUPR berkomitmen untuk menindak tegas pelanggaran angkutan barang obesitas atau ODOL. Pelaksanaan penegakan hukum harus dipercepat untuk mengurangi risiko kerusakan jalan akibat muatan berlebih.

Sumber :

Wednesday, January 29, 2020

Why You Should Put The Customer At The Center Of Your Supply Chain

Why You Should Put The Customer At The Center Of Your Supply Chain

Regardless of industry, geography, or size, companies in today’s global economy have one thing in common: To win the order, sign the contract, or make the deal, they all strive to delight, understand, and get closer to their customers.

The result is tremendous competition — and the companies that are winning are those that have pursued fundamental transformation. The lesson is clear: To put your own company on top, you need to transform not only how you interact with your customers, but also how you align your supply chain and other business processes to deliver the outcomes your customers desire.

Here are just some of the shifts leading companies are making to their supply chains and business processes to be more centered around the customer.

From sales forecasting to demand sensing (and demand shaping)

To understand your customers, knowing what they have bought in the past is only part of the equation. Why? Because things change — constantly. New trends, evolving tastes, different circumstances — all can impact what customers want. The goal, then, is to move beyond traditional sales forecasting and develop the capability to actually sense demand in the here and now.

This takes information — the kind gathered from structured and unstructured data across a variety of sources. You need to know what your customers are talking about — which requires social media monitoring and sentiment analysis. You need to know what customers are buying — which requires point-of-sale data. You need to understand broader trends — which requires syndicated market research, like that available from Nielsen and other third-party data providers.

And because it’s a volatile world, you’ll also want to bring in data on current events and weather conditions. From political coups and regional economic conditions to hurricanes and heat waves, you’ll want to be prepared for how anything impacts demand and your ability to respond.

With all this data at your disposal, you can also add machine learning to identify patterns in real time and get a sense of what’s coming. This helps you move from sensing demand to predicting it. And with a better sense of what’s coming, you can not only prepare better but you can also put yourself in a position to actually shape demand with messaging and campaigns targeted to demographic groups or even individuals.

From taking customer orders to delivering a customer experience

Once you understand demand, it’s typically up to sales and marketing to “make the promise.” But once the customer places the order, delivering on that promise falls to the supply chain.

Increasingly, however, customers expect much more than simple order fulfillment. Today, customers expect faster delivery time frames and complete experiences that make doing business with you a pleasure.

For many organizations, timely delivery starts with multi-echelon inventory optimization (MEIO) as a way to plan more effectively across distribution centers in a network. Add in demand-driven MRP (DDMRP) with advanced analytics, and you can develop better profiles of buffer stock positions. This helps reduce stock-outs and enables you forward position inventory for faster delivery.

All of this, of course, is table stakes. Leading-edge companies are going a step further with new approaches to logistics that speed delivery even more. Logistics teams, for example, can use Internet of Things (IoT) technology to optimize routes for delivery trucks on the road — or to control robotic units that move goods throughout the warehouse.

Perhaps the most forward-looking possibility is drone delivery. Yes, safety is a concern, but already, Amazon has been granted a patent that may help improve safety conditions with a drone that responds to human gestures.

From outcome-based transactions to sustainable processes

Many customers today evaluate you based on outcomes such as ease, convenience, and speed of delivery, many today also emphasize social responsibility. Increasingly, customers want products that are ethically sourced, sustainably produced, and delivered in a way that minimizes the carbon footprint.

In this regard, technologies such as IOT and blockchain have the potential to help ensure socially responsible business processes. As a distributed encrypted ledger that ensures the validity of transactions and is virtually impossible to hack, blockchain can build trust directly into transactions without third-party intermediaries such as banks.

The fair-trade coffee beans you buy? How do you know they’re actually sourced from farmers in the rainforests of South America? With blockchain, you have the transparency to show the chain of custody from source to customer. Blockchain is also being touted as a way to minimize or eliminate fraud in cap-and-trade approaches to reducing carbon emissions.

At the same time, it’s important to remember that being sustainable is not only good for the environment — often it’s good for the bottom line. If you can reduce the carbon footprint of logistics process by, say, optimizing inventory or route planning to minimize miles driven, you can also speed delivery and reduce costs.

Cheered on by the customers they serve, many companies today are striving for zero waste, zero impact, or even net-positive impacts on the environment. In the end, this requires a focus on a circular economy where the optimization of assets, equipment, and inventory is critical. Companies with flexible supply chains capable of rising to the occasion are those that will put themselves in a position to succeed.

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Sunday, January 26, 2020

Warehouse KPIs

Top 24 Warehouse KPIs You Must Be Tracking

Warehouse management encompasses its own world of complex tasks, and that’s why today there are dozens of...warehouse technologies...designed

by Hector Sunol   •   Dec 11, 2019   •   15 MIN READ

Warehouse management encompasses its own world of complex tasks, and that’s why today there are dozens of warehouse technologies designed specifically to make these tasks easier and more efficient.

However, there is one aspect that, if ignored, can render all that implementation of technological advancement futile—performance measurement. Round-the-clock performance measurement is essential to achieving consistent and predictable productivity levels.

This blog will provide you with some of the top warehouse KPIs (Key Performance Indicators) that every warehouse manager should be tracking.

Peter Drucker, one of the most renowned business management gurus, expresses the idea aptly: "If you can't measure it, you can't manage it". 

And that is the very essence of lean warehouse management as well. Tracking performance lets you not only monitor the efficiency of warehouse processes, but also take corrective measures to increase productivity and asset utilization. The result is continuous operational improvement and increased customer satisfaction.

Here are the top 24 warehouse key performance indicators as they relate to standard warehouse and distribution center processes:

Metrics that measure receiving performance are among the most critical warehouse KPIs. Warehouse operations begin with this process, and any inefficiencies here will snowball through all the subsequent processes.

Warehouse KPI metrics that correspond to the receiving process are:

1. Cost of Receiving Per Receiving Line:
The expense that the warehouse incurs on the receiving process of each receiving line. This includes handling costs as well.

2. Receiving Productivity:
Determined in terms of labor by measuring the volume of goods received per warehouse clerk per hour.

3. Receiving Accuracy:
Percentage of accurate receipts, i.e. the proportion of correctly received orders against purchase orders.

4. Dock Door Utilization:
Percentage of how many of the total dock doors were utilized.

5. Receiving Cycle Time:
The time taken to process each receipt.

These warehouse KPIs help managers identify any lapses in receiving and avoid a chain reaction of inefficiencies down the process line.

Catching inefficiencies, such as a long receiving cycle caused by busy dock doors, can reduce deficiencies as early as in the receiving stage.

Once goods are received, the process of putaway begins with placing each item at a designated location selected for most convenient retrieval.

Effective putaway ensures a smooth picking process, thus significantly reducing lead time.

Here are some of the important warehouse KPIs that you must track to measure the efficiency of the putaway process:

6. Putaway Cost Per Line:
Expenses incurred for putting away stock per line, including labor, handling, and equipment costs.

7. Putaway Productivity:
Volume of stock put away per warehouse clerk per hour.

8. Putaway Accuracy:
Percentage of number of items put away accurately at the designated location.

9. Labor and Equipment Utilization:
Percentage of the labor and material handling equipment utilized during the put-away process.

10. Putaway Cycle Time:
Total time taken during the entire process of each put-away task.

Evaluating the putaway through these key performance indicators gives you a clear picture of potential inefficiencies in the process. Recognizing snags such as inaccuracies or paucity of labor will help you to optimize and streamline the process.

Whether your warehouse is dependent on storing goods manually or uses AS/RS (Automated Storage and Retrieval System), you still need to measure efficiency. Here are some important KPIs to measure storage efficiency:

11. Carrying Cost of Inventory: 
The cost of storage over a particular span of time, including the cost of inventory, capital costs, service costs, damage costs, and costs of obsolescence. The longer the stock stays in storage, the higher the cost to the warehouse.

12. Storage Productivity:
Volume of inventory stored per square foot.

13. Space Utilization:
Percentage of space occupied by inventory out of the total space available for storage.

14. Inventory Turnover:
The number of times the entire inventory passes through during a period of time.

15. Inventory to Sales Ratio:
Measure of stock levels against sales. This helps managers identify monthly increases in inventory against falling sales.

These storage & inventory management KPIs are of immense value when it comes to maximizing storage utilization and reducing cost of inventory. For example, a low inventory turnover spurs you to track down a reason and helps you improve inventory management.

Pick & Pack
The process of picking & packing directly impacts lead time. Greater accuracy in picking means shorter lead time.

Picking in the right order decreases the rate of order return and increases customer satisfaction.

16. Picking and Packing Cost:
The cost incurred per order line, including handling, labeling, relabeling, and packing.

17. Picking Productivity:
The number of order lines picked per hour.

18. Picking Accuracy: 
The percentage of orders picked and packed without error.

19. Labor and Equipment Utilization:
The percentage of labor & pick/pack equipment out of the total labor and equipment utilized during the process.

20. Picking Cycle Time:
Time taken to pick each order.

A study by WERC shows that best-in-class picking accuracy can reach as high as 99.9%.

As the roles and responsibilities of warehouses expand with the growth of always-on supply chain, the added function of distribution exerts additional pressure on warehouse management. Here are some KPIs relevant to distribution:

21. Order Lead Time:
The average time taken by an order to reach the customer once the order has been placed. This is one of the most crucial KPIs for warehouses and distribution centers.

22. Perfect Order Rate:
Number of orders the warehouse delivered without error. It indicates the success rate of the warehouse/distribution center.

23. Back Order Rate:
The rate at which orders are coming in for items that are out of stock. There are situations wherein unexpected spike in demand causes this. However, if this rate is consistently high, it is an indication that there are lapses in planning and forecasting.

Another study by WERC shows that best-in-class perfect order rate can reach as high as 99.3% or more.

Making strategies on Top Warehouse KPIs

These distribution KPIs will help you diagnose underlying problems.

For example, a high back order rate indicates that a warehouse or distribution center isn’t stocking the appropriate inventory volumes. In this case, the problem lies in understanding consumer behavior and better forecasting demand so as to properly set inventory levels.

Reverse Logistics
In most cases, the always-on warehouse is exposed to returns and reverse logistics. As a result, proper KPIs are also necessary to measure the efficiency and effectiveness of this process.

Here is a KPI that warehouses should not  ignore if they are exposed to this process:

24. Rate of Return: 
The rate at which goods, once sold, are being returned. This is most effectively used when segmented by reason for return.

This is one of the top warehouse KPIs that can help the warehouse/operations manager diagnose the exact reasons for rising warehousing costs and customer dissatisfaction, as it lets you dig into the reasons for returns.

Identifying, implementing, and tracking warehouse key performance indicators on a consistent basis is the first step towards increasing warehouse productivity, efficiency, and customer satisfaction. This will yield consistent positive results and operational predictability.

Remember, even the most diligent of efforts towards warehouse digitalization can be wasted if you can’t measure warehouse operations.

Sumber :

Saturday, January 18, 2020

Program Zero Over Dimension dan Over Loading (ODOL) tahun 2022

Menhub Tetap Tertibkan Truk Kelebihan Muatan Mulai 2022

Kementerian Perhubungan (Kemhub) menyatakan program Zero Over Dimension dan Over Loading (ODOL) atau bebas truk kelebihan muatan tetap akan diberlakukan pada 2022, meski Kementerian Perindustrian telah meminta untuk menunda program tersebut hingga 2024.

Menteri Perhubungan, Budi Karya Sumadi, menyebut keputusan tersebut dihasilkan setelah perbincangannya dengan Menteri (Menperin) Perindustrian, Agus Gumiwang.

"Saya informal sudah bicara dengan Menperin, kami mungkin akan mentolerir dari segi waktu. Dia (Menperin) mintanya 2024, tapi kami mungkin akan kasih sampai 2022," kata Budi di Kantor Kementerian Kordinator Bidang Kemaritiman dan Investasi, Jakarta, Kamis (16/1).

Kendati demikian, Budi menegaskan program ODOL tetap akan diberlakukan di Tol Jakarta-Karawang tanpa penundaan waktu. Ia menyebut pihaknya telah mempersiapkan program tersebut di lokasi.

"Tapi yang tidak bisa di tawar itu Tol Jakarta- Karawang tetap berlaku. Kami sudah siapkan alat-alat. Kami enggak mau kecepatan terkoreksi lagi, itu tetap akan kami berlakukan," tegasnya.

Sumber dan berita selengkapnya: 

Thursday, January 16, 2020

Pemerintah Harus Dorong Ekspor melalui “E-Commerce” Global

Kamis 16/1/2020 | 00:02

JAKARTA – Pemerintah mesti bisa mempengaruhi perusahaan e-com­merce skala global, seperti Amazon dan Alibaba untuk memasarkan pro­duk-produk Indonesia.

“Indonesia dengan populasi keem­pat terbesar dunia merupakan pasar yang sangat penting dan strategis un­tuk pertumbuhan pasar masa depan bagi Amazon, Alibaba, dan e-com­merce companies. Untuk itu, peme­rintah harus mempunyai pengaruh besar untuk mendorong e-commerce companies untuk komit mengekspor produk-produk dalam negeri dari In­donesia,” kata pemerhati bisnis dalam jaringan (online), Edi Humaidi, saat dihubungi, Rabu (15/1).

Edi menanggapi kebijakan pemerintah India yang mampu mengajak Amazon asal Amerika Serikat (AS) mengembangkan e-commerce. “India dan Indonesia hampir mirip, sama-sa­ma mempunyai penduduk yang besar. Namun, India bisa mengajak Amazon untuk memasarkan produk dalam negeri, bukan menjadikan India sebagai pasar barang impor,” paparnya.

Diketahui, sekitar 90 persen produk yang dipasarkan melalui e-commerce di Indonesia merupakan barang-ba­rang impor. Kondisi ini menyebabkan neraca perdagangan Indonesia men­jadi defisit dan daya saing produk da­lam negeri menjadi melemah.

Sebelumnya, CEO Inc, Jeff Bezos, mengatakan perusahaannya akan menginvestasikan satu miliar dollar AS untuk mendo­rong usaha kecil dan menengah di In­dia, merambah pasar dalam jaringan (online) dan meningkatkan ekspor produk India senilai 10 miliar dollar AS pada 2025.

Sampai saat ini Indonesia tidak mempunyai perwakilan dan program pemasaran ekspor yang efektif un­tuk produk-produk nasional. Karena hampir semua pembantu Presiden lebih banyak berbicara tentang im­por, antara lain garam, gula, kedelai, terigu, dan migas.

Itulah sebab, kesepakatan dagang tahap pertama AS-Tiongkok tidak akan mengangkat permintaan komo­ditas Indonesia dari Tiongkok secara signifikan, karena dari nilai 200 miliar dollar AS pembelian produk AS oleh Tiongkok bersifat konsumsi, seperti kedelai, pesawat terbang, LNG, pro­duk industri, yang semua itu bukan kontributor pertumbuhan peningkat­an produktivitas industri bagi Tiong­kok. Akibatnya, perjanjian dagang tahap pertama AS-Tiongkok tidak membawa dampak kenaikan signifi­kan bagi ekspor Indonesia.

“Bargaining Power”

Namun, e-commerce raksasa du­nia dapat mengangkat permintaan produk-produk nasional Indonesia, seperti Alibaba yang menjual duren Malaysia ke Tiongkok secara besar-be­saran. Untuk itu, diperlukan bargain­ing power yang besar untuk mendo­rong e-commerce raksasa dunia dan retailer raksasa dunia untuk mema­sarkan dan menyerap produk-produk hasil dalam negeri Indonesia.

Adanya wacana Pemprov untuk mewajibkan mal untuk memfasilita­si 20 persen areal sewa untuk produk nasional, termasuk UKM adalah hal yang sangat penting agar produk In­donesia bisa secara berimbang dapat bersaing dengan produk impor mul­tinasional raksasa dunia.

Kualitas produk nasional sulit un­tuk meningkat bertaraf dunia jika pa­sarnya terbatas atau hanya dipasarkan di pasar kumuh sehingga harus sangat murah, apalagi kualitasnya seadanya. Tidak mungkin produk UKM dan industri kecil dalam negeri dapat bersaing tanpa adanya proaktif tindakan dan kebijakan pemerintah yang pro-industri dalam negeri.

Pada Rabu (15/1), Bezos hadir da­lam sebuah acara perusahaan di Sta­dion Jawaharlal Nehru, di New Delhi, yang disebutnya sebagai konferensi tingkat tinggi terbesar pertama untuk menyatukan lebih dari 3.000 usaha kecil. “Amazon akan memanfaatkaan ukuran, cakupan, dan skala bisnis un­tuk mengekspor produk lokal India senilai 10 miliar dollar AS sampai de­ngan 2025,” ujarnya.

Sumber :

Wednesday, January 15, 2020

Bandara Hang Nadim Jadi Hub Internasional

AP I Siapkan Bandara Hang Nadim Jadi Hub Internasional

PT Angkasa Pura I (Persero) berniat mengembangkan Bandara Hang Nadim Batam dalam konsep bandara hub internasional baik untuk penumpang maupun kargo udara.

Direktur Utama Angkasa Pura (AP) I, Faik Fahmi, mengatakan pengembangan tersebut akan dibantu oleh Incheon International Airport Corporation (IIAC) dan PT Wijaya Karya (Persero), Tbk. melalui mekanisme kerja sama pemerintah dengan badan usaha (KPBU).

"Nanti [Bandara] Batam akan menjadi hub. Kami akan pusatkan untuk rute penerbangan ataupun kargo internasional," kata Faik, Selasa (14/1/2020).

Dia mengatakan bandara tersebut bisa menjadi pusat kargo dari Indonesia untuk dikirimkan ke negara lain. Namun, pengembangan juga akan dilakukan terhadap kapasitas terminal untuk lebih banyak mengakomodasi pergerakan penumpang.

Akan tetapi, pihaknya mengaku belum bisa menyebutkan nilai investasi maupun rencana detil pengembangan tersebut. Hal tersebut masih memerlukan kajian studi yang akan dilakukan dalam waktu dekat.

"Kita pelajari lebih detil potensinya seperti apa dan sejauh mana ukuran pengembangannya," ujarnya.

Sumber dan berita selengkapnya:

Wednesday, January 8, 2020

JNE Berminat Jadi Logistik Halal

Rabu 08 Jan 2020 15:39 WIB
Rep: Lida Puspaningtyas/ Red: Muhammad Hafil

Perusahaan logistik Jalur Nugraha Ekakurir (JNE) menyampaikan ketertarikan untuk terjun ke pasar logistik halal. VP Marketing JNE, Eri Palgunadi, menyampaikan saat ini JNE sudah punya lini bisnis transporter produk segar.

"Kita melihat memang kelas menengah muslim terus tumbuh, pada akhirnya jika ada kebutuhan, mengapa tidak kalau harus ada logistik halal," katanya di Jakarta, Rabu (8/1).

 Eri menyampaikan saat ini mayoritas barang yang dikirim mencakup produk fashion, kerajinan, dan makanan. Produk segar tetap ada meski porsinya sangat kecil dan hanya untuk jarak dekat masih sekitar Jakarta.

 Transporter distribusi ini masih memanfaatkan kerja sama bussiness to bussiness dengan salah satu korporasi di Jakarta. JNE juga sudah meluncurkan layanan cold storage pada 2017 namun terbatas.

"Itu bisnisnya tumbuh, tapi kalau dibanding revenue pengiriman barang masih jauh sekali," katanya.

Ke depannya, jika pasar terus bergeliat maka JNE akan ikut masuk pada industri. Eri mengatakan layanan logistik transporter ini juga masih punya ruang luas untuk terus berkembang sehingga butuh sosialisasi, dan edukasi.

JNE juga mulai fokus menggarap jasa pergudangan untuk membantu pedagang menyimpan produk sebelum terus dikirimkan. Menurut Eri, layanan ini lebih memudahkan dan lebih rendah biaya daripada harus pengiriman langsung ke tempat jauh.

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Monday, January 6, 2020

Tol Semarang-Kendal Terintegrasi dengan Kawasan Industri Kendal

Rencana Tol Semarang-Kendal Terintegrasi dengan Kawasan Industri Kendal Diharap Secepat Trans Jawa 

Perencaan proyek tol Semarang-Kendal yang tersambung dengan Kawasan Industri Kendal (KIK) masih dalam tahap penyusunan.

Begitu juga dengan tahap penentuan trase oleh pemerintah kota/kabupaten terkait, dan juga Pemerintah Provinsi Jawa Tengah yang belum diputuskan.

Termasuk rencana apakah trase tol Semarang-Kendal ini juga berfungsi sebagai tanggul laut, hal itu masih dirancang.

Kepala Dinas Pekerjaan Umum Bina Marga dan Cipta Karya (DPUBMCK) Jawa Tengah, Hanung Triyono, menuturkan semua proyek prioritas termasuk tol Semarang-Kendal yang tersambung Kawasan Industri Kendal (KIK) masih terus berproses.

"Semuanya masih berproses antara proyek tol Semarang-Kendal dan Semarang-Demak," kata Hanung, Minggu (5/1/2020).

Dalam proyek yang dikerjakan Kementerian Pekerjaan Umum dan Perumahan Rakyat (PUPR), pemerintah daerah baik kabupaten/kota dan provinsi akan menyediakan lahan jika trase sudah ditentukan.

Sumber dan berita selengkapnya:

Supply Chain Planning

5 Levels of Time Horizon and Complexity Hierarchy

Supply Chain Planning within an organisation exists on many levels, as well as in many functional areas. At a minimum, most organisations formally update their Profit Plans on a yearly basis. However, planning is an ongoing process that happens at different levels and different times dependent on resource availability and this is recognised by the 5 levels of Supply Chain Planning Horizon. Additionally, it is important that all the functional plans tie together to ensure that they mesh and support the company’s overall plan and objectives.

It is important to have a plan of different time frames (time-phased plans) that fit together to support the long-term plan. The complexity also changes with each time-phase. The figure below shows how the 5 different level of Supply Chain Planning Horizon fit together, their review frequency and complexity in organisation from Low to High.

Generally, organisations use a variety of terms to explain the various planning levels. In this blog I will briefly discuss what Profit Plan, Sales Inventory & Operations Planning (SIOP), Master Plan, Material Plan (Mat. Plan) and Factory Plan or Line Scheduling are which make the Supply Chain Planning building block in a typical organisation.

1. Profit Plan- Yearly/Quarterly

At the highest level of Supply Chain Planning, which also extends the furthest in time, is the Profit Plan, which is mostly extended to 12 months and generally reviewed on a quarterly basis. The profit plan serves as a basis for financial planning. With the information developed from the profit plan, you can anticipate the need for increased investment in receivables, inventory, new product introduction, head counts, capital investment or facilities.

The profit plan considers an organisation’s objectives, overall service requirements, and how management intends to achieve its organisation’s vision. These plans are complex and usually include cross functional teams which adds to complexity of the process. This stage of Supply Chain Planning defines projected implications of supply chain activities within the business and their financial implication on revenues, cost and working capital.

2. Sales Inventory & Operations Planning (SIOP) – Monthly

SIOP in itself requires several blogs or even book(s) to cover its basics, as it is one of the core processes in any organisation or should be one! Simplistically speaking, The SIOP process does exactly what it says on the tin – it provides a general overview of company’s Sales, Inventory and Operations Planning method! Its purpose is to aid you in understanding the planning balance between supply and demand.

It represents an organizational improvement process which will…
  1. Balance employee understanding of supply capacity and market demand.
  2. Establish a common language for information sharing among all functional groups

SIOP is a cross-functional Supply Chain Planning process designed to keep demand and supply in balance by:
  1. Monitoring external market demand changes through the Sales department.
  2. Communicating market changes to the internal organization

The SIOP which is 5 Step monthly process (shown below) helps the business and Supply Chain communities proactively plan for changes in demand by Monitoring the External Market.

SIOP as Supply Chain Process:
  • is a forecasting and decision making process,
  • involves every department in the business,
  • gives the visibility and alignment on the middle term demand (2-18 months)

It is a monthly process
  • That provides realistic demand, production, and inventory plans to meet customer requirements.
  • That is implemented by a cross-functional team
  • That is documented and agreed by all parties
  • That provides communication and co-ordination of activities in different department

3. Master Plan or Master Production Schedule (MPS)- Monthly/Weekly

The master level or top-level schedule used to set the production plan in a manufacturing facility on a monthly basis but spread over a number of weeks. APICS considers the term Master Production Schedule (MPS) and Master Schedule to be synonymous and defines them as “The anticipated build schedule for those items assigned to the master scheduler. It represents what the company plans to produce expressed in a specific configurations, quantities and dates.” However, Everdell (1987) defines the master schedule as referring to the “presentation of information that expresses how a master scheduler has decided to satisfy the demand placed on the ‘end item’ by determining production quantities to be completed on specific schedule.”

In theory, Master Production Schedule is the linking pin between the marketing and sales (sales orders, forecasting), manufacturing operations and engineering functions. The MPS function should aim to develop and maintain a manufacturing plan which is satisfactory for all three functions. Moreover, the master schedule is reconciled monthly with the rough cut supply plan resulting from the SIOP Supply planning process.

The Master Production Scheduler (or equivalent process owner) creates and maintains the Master Production Schedule in the ERP system. The MPS is used to drive and direct all manufacturing, purchasing, and manufacturing related engineering activities. To have successful MPS, BOM Accuracy and Inventory Accuracy are key.

BOM Accuracy– The Engineering Manager (or equivalent process role) creates and maintains the engineering BOM’s and facilitates the translation of engineering BOM’s into manufacturing BOM’s. The Manufacturing Manager (or equivalent process role) creates and maintains the manufacturing BOM based on coordination with the Engineering Manager’s engineering BOM’s.

Inventory Accuracy– Demonstrating inventory management abilities by performing cycle counting on a regular basis and an annual physical inventory. There needs to also be a demonstrated ability to identify and correct inventory errors outside of these physical counts on a daily basis.

4. Materials Planning – Weekly/Daily

In most companies there is a material planning process that maintains valid material plans along with a control process that communicates priorities through either MRP, production schedules, supplier schedules, Min/Max planning and / or Kanban for replenishment as an example on daily or weekly basis. Materials planning are daily to weekly activity in most operations to maintain required customer service. Again like SIOP, material planning is a topic of greater depth and breadth in terms of the key concepts. However, here are brief definitions of some key techniques:

Min max planning- An inventory planning technique that uses min and max inventory values for items and maintains on hand balances between these two levels

Kanban planning- An inventory planning technique that determines Kanban size, number of Kanban cards, minimum order quantity, lead times, lot multipliers and safety stock days

Reorder point planning- An inventory planning technique that uses reorder point and reorder quantity values for items and maintains on hand balances required to meet forecasted demand during lead time plus safety stock

MRP- The original MRP dates back to 1960s, when letters stood for materials requirements planning (now called MRP or MRP I). MRP enables a company to calculate how many materials of particular types are required, and at what times they are required (Slack et. al., 2004*). MRP in itself is massive topic and entire chapter can be dedicated to explain this!

5. Factory Plan or Line Scheduling – Daily

The production line scheduling process is owned by Supply Chain/Materials Planning Team. The Supply Chain/Materials team decides how constrained materials will be allocated to meet what customer demand. Operations/Manufacturing is involved in constrained capacity decisions to meet the line schedule (demand) which is presented in shape of work orders which is to be released when MRP run over night daily (if you are using ERP/MRP). If managed by Kanban or Min-Max systems, then planners need to maintain inventory levels to the trigger levels to maintain Min-Max stocks or Kanban quantities.

Planners must ensure line schedules are aligned with MPS or SIOP; also work orders are maintained for aging or volume to assure alignment with SIOP or actual demand, in other words, line scheduling process has to be fully integrated with SIOP. The daily work that is given to lines/cells should be in line with the agreed upon production plan level with production folks. Furthermore, attainment and/or linearity to this plan is tracked and managed.

Lastly, line scheduling processes must be aligned with the On Time Delivery (OTD) Policy, drive sufficient inventory visibility and reduction in premium freight.

As a supply chain professional, you’ll always feel like you have more work to do.

Instead of burning yourself out, look for ways to do supply chain planning more efficiently at different levels, so we have to fire fight less.

The 5 levels of Supply Chain Planning I have mentioned in this blog have always been there in some shape or form. What I have tried to do is drive the focus in the frequency of these planning ‘horizons’ and how they are stacked in the planning ‘hierarchy’, so you can improve your supply chain performance and possibly business as a whole.

If you actually apply some of them, you will be able to get the same results in half the time I did!

If you have any questions about the Supply Chain Planning horizons & complexity or have any experience applying it in your life or business, leave your thoughts in a comment below—I’d love to hear from you

*Slack, N., Chambers, S., and Johnston, R. (2004), Operations Management, Pearson Education Limited, Essex.

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Saturday, January 4, 2020

Logistics Center untuk UMKM

Perlu Logistics Center untuk Kembangkan UMKM

Pengembangan usaha mikro kecil dan menengah (UMKM) memerlukan dukungan skema logistik, seperti pembangunan logistics center untuk menekan biaya produksi. Sistem logistik yang belum memadai menyebabkan kurangnya daya saing dan produktivitas.

Chairman Supply Chain Indonesia (SCI), Setijadi, mengatakan pelaku UMKM perlu mendapat dukungan sistem logistik yang memadai karena akan berpengaruh pada volume produksi dan penjualan para pelaku usaha. Apalagi, mereka terkendala modal, sehingga sulit dalam mengembangkan sistem logistik mandiri.

Menurut dia, dukungan sistem logistik diperlukan oleh para pelaku UMKM untuk meningkatkan efisiensi aliran bahan dan barang, informasi, dan uang. Sistem logistik yang baik akan berdampak pula terhadap produktivitasnya.

"Dalam pengadaan bahan baku misalnya, mereka beli dalam volume yang relatif kecil sehingga berbiaya mahal. Tetapi kalau ada konsolidasi, volume pengadaan bahan baku menjadi tinggi sehingga lebih murah, karena ada diskon pembelian dan pengiriman bahan baku," kata dia, Jumat (3/1/2020).

Menurut dia, pemerintah perlu memfasilitasi pembentukan logistics center di sentra-sentra UMKM. Logistics center itu sebaiknya melibatkan para pihak terkait, termasuk instansi pemerintah daerah dan perguruan tinggi setempat.

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