Logistics and Food Supply Chain

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Logistics and Food Supply Chain

• By
• Mr. Paiboon Ponsuwanna
• Vice-Chairman, TNSC

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Outlines

• Introduction to Logistics and Supply Chain
  Management
• Food Supply Chain
• How logistics can help improve food supply chain?

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Introduction to Logistics Supply Chain
Management
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Logistics Activities
Location Selection
Order Processing
Procurement
Customer service
Reverse Logistics
Logistics
Demand Forecasting
Part and Service Support
Inventory Management
Traffic and Transportation
Material Handling
Warehousing And Storage
Packaging
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Logistics vs Marketing vs Manufacturing
Manufacturing Mix 5Ms
Inventory Holding
Minimize Cost
Product
Machine
Warehousing
Price
Money
Transportation
Logistics
Place
Order Processing Customers Response
Man
Promotion
Supply
Management
Marketing Mix 4Ps
Maximize Customer Service level and Satisfaction
LOGISTICS Activities
Material
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Supply Chain Logistics
Retailer Logistics
DC Logistics
Manufacturer Logistics
Source Techa Presentation
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Order Processing

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Order Processing Importance
The order processing and information system
forms the foundation for logistics and corporate
management information system

• The Order Processing System
• is the center of the Logistics System.

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Four ways to evaluate order transmittal
Speed
Cost
Consistency
Accuracy
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Developing Logistics Information System
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Customer Service

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Customers expectation continuous increasing!!!
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Service Provider who can created service level
above customer expectation will have more
competitiveness.
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3
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5
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2
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Forecasting

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or
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Procurement Purchasing

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Importance of Purchasing and
Procurement.
A 60 increase in its product margin
Margin 100,000
Overhead Cost 150,000
Overhead Cost 150,000
Production 150,000
Production 150,000
A 10 reduction in the raw material cost
Raw Material 600,000
Reduced Raw Material Cost to 540,000
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EPI Early Purchasing Involvement ????????????????
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ESI Early Supplier Involvement ??????????????????
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Inventory Control

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• Cycle Stock
• In-Transit Inventories
• Safety or Buffer Stock
• Speculative Stock
• Seasonal Stock
• Dead Stock

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ABC Analysis for
Sales, Expense, Stock
Classified by Paretos Rule
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Warehousing

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Flat Silo
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Warehouse Layout and Design

• Location
• Analysis
• Production-Position
• Market-Position
• Intermediately-
• Positioned

Material Handling Manual VS Automated
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Warehouse Management System
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Location Analysis

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Location Analysis
Intermediately Positioned Located midpoint of
customer and producer to offer high customer
service Level.
Market place or Customer
Source of Supply or Production site.
Production Positioned Close to source of supply
or production facilities.
Market Positioned Nearest to final customer.
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Parts and Supports

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Material Handling

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Manual System Warehouse
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Storage Rack
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Automated Picking System
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Automated Storage System
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Barcode
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RFID Radio Frequency Identification
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RFID Tag
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RFID Data Interchange
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RFID Reader