3PL Case Study
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Samsung, and Foxconn
Reduced overheads by 3PL
Go for E-Logistics?
The Case Study: CRC Logistics (Hong Kong)
CRC aims to become one-stop shop total logistics service provider Total supply chain management solutions Major services include: import and export of raw materials,
Global Market
Background for the Research
Global economy, market and operations Technological and competitive forces Supply Chain Management (SCM) Globalization, outsourcing, and logistics in particular 3PL (DHL, FedEx, etc.) Implications of 3PL on organizational competitiveness 3PL is flexible and cost effective Upstream logistics is very important to deliver the product on time. A case study on 3PL – How a company has transformed itself to meet the global demand?
support, professional management, quality assurances and strong IT support.
The Company
The Case Study: CRC Logistics (Hong Kong)
Total quality management Data-driven and knowledge-based decisions on logistics operations KPI – Inventory turnover, warehouse utilization, inventory costs, reverse
logistics costs, delivery performance, damage rates, cost per mile and utilization of transport facilities.
IT/IS for integrating all the sub-systems (distribution
warehouse management, finished goods export, customs clearance, and ERP entry
IT system at CRC include modules such as EDRP and Cargo2000. Contract logistics operations, specialized distribution, multi-modal transportation management, consolidation and customs clearance, logistics facilities and staffing. Five major factors: a global network of partners, logistics facilities
Information network layer Logistics network layer Goods are the common factor between these two network layers!
Effectiveness
Research Methodology
Literature Survey Data Collection Primary sources: Interviews with managers at CRC Logistics (Hong Kong) Secondary sources: Annual reports, news letters and web site of the company Report and dissemination
Third-Party Logistics: A Case Experience and Analysis
Angappa Gunasekaran and Eric W.T. Ngai
Presented by A. Gunasekaran Department of Management, University of Massachusetts North Dartmouth, MA 02747-2300.
Research Methodology
The Case Study: CRC Logistics (Hong Kong)
China Resources (Holdings) Co. Ltd (CRC) is one of the largest China-based companies in Hong Kong Over 300 subsidiaries with 50,000 employees and turnover of US$8.5 billion – ERC beer, Supermarket,
Innovation!!
Conceptual Model for 3PL
Logistics facilities A global network of partners Information technology Quality assurance
Conceptual Model
An Effective Logistics System
Petrochems and CER-Vangaurd
CRC Logistics was found 1949 (FORENCO) In 1990s, CRC Logistics transformed into a 3PL Company in China Major clients include: Star Micronics, Acer, Armstrong, Brother,
Inventory Management
Details of MK Logistics System
Module 3PL Supply Chain Event Management
Features Item ownership, out-tracing numbers, bar-codes cross-referencing, storage charges, operations charges, service charge tables and service billings Order pool management, KPI, yard management, artificial intelligence Contracts management, electronic order processing, order status tracking, client sales orders, automatic replenishment, client purchase orders DRP, MRP, kiting, inventory location control, lot control, physical inventories, cycle counts, inventory transactions, inventory inquiries, locating rules, picking put away rules, advance shipment notices, receiving, put away and confirmation, order pool management, pick planning, packing, parceling and shipping Return material administration, service order processing and warranty management Accounts receivable, general ledgers, accounts payable, and financial statements
3PL – IT/IS!
Transport Management Warehouse and Inventory Management
TQM
One-Stop Shop Total Logistics Service
IT/IS Wharf and Container Yard Management
3PL System (Solution and Network)
Purpose of the Study
Highlight the nature of market and the role of Information technology Understand the importance of Third-Party Logistics (3PL) Discuss the challenges of 3PL Present a case study focusing on the experience of a 3PL Company Outline the summary findings and conclusions
Integration of Logistics Chain!
3PL
Core competencies Real-time information Globalizing service demand Visibility in key performance indicators Collaboration in supply chain operations E-commerce development Interaction between marketing and logistics
management, wharf and container yard management, warehouse and inventory management and transport management)
to one-stop
service!! Partnership for operating cost savings and improve its clients’ profit margins.
What is 3PL?
Logistics Challenges
Delayed and inaccurate information Incomplete services Slow and inefficient operations High product damage rates Inability to provide inter-linked services High operating costs Lack of flexibility to changing requirements
Importance of 3PL
来自百度文库
Third-Party Logistics (3PL)
Logistics can be defined as an operational process that include inputting, storing, transporting and distributing of physical goods. 3PL can be defined as the outsourcing of distribution functions (such as inbound freight, customs, warehousing, order fulfillment, distribution, and outbound freight) of goods from clients to customers 3PL: reduces operating cost, to meet demand fluctuations, and to reduce capital investment.
KPI
Distribution Management
CRC Logistics System
CRC Logistics: Warehouse and Inventory Management
ISO 9001: 2000 certificate Warehouse Management Systems (WMS) Upgraded to Multi-Warehouse Inventory Management System (MWIMS) – Centralized service tailored for clients Computerized and JIT inventory management + RFID Real-time inventory inquiries Value-added services MK Logistics in Jan 2002 (3PL, SCM, order processing, WMS, service and warranty and finance)
Reduced overheads by 3PL
Go for E-Logistics?
The Case Study: CRC Logistics (Hong Kong)
CRC aims to become one-stop shop total logistics service provider Total supply chain management solutions Major services include: import and export of raw materials,
Global Market
Background for the Research
Global economy, market and operations Technological and competitive forces Supply Chain Management (SCM) Globalization, outsourcing, and logistics in particular 3PL (DHL, FedEx, etc.) Implications of 3PL on organizational competitiveness 3PL is flexible and cost effective Upstream logistics is very important to deliver the product on time. A case study on 3PL – How a company has transformed itself to meet the global demand?
support, professional management, quality assurances and strong IT support.
The Company
The Case Study: CRC Logistics (Hong Kong)
Total quality management Data-driven and knowledge-based decisions on logistics operations KPI – Inventory turnover, warehouse utilization, inventory costs, reverse
logistics costs, delivery performance, damage rates, cost per mile and utilization of transport facilities.
IT/IS for integrating all the sub-systems (distribution
warehouse management, finished goods export, customs clearance, and ERP entry
IT system at CRC include modules such as EDRP and Cargo2000. Contract logistics operations, specialized distribution, multi-modal transportation management, consolidation and customs clearance, logistics facilities and staffing. Five major factors: a global network of partners, logistics facilities
Information network layer Logistics network layer Goods are the common factor between these two network layers!
Effectiveness
Research Methodology
Literature Survey Data Collection Primary sources: Interviews with managers at CRC Logistics (Hong Kong) Secondary sources: Annual reports, news letters and web site of the company Report and dissemination
Third-Party Logistics: A Case Experience and Analysis
Angappa Gunasekaran and Eric W.T. Ngai
Presented by A. Gunasekaran Department of Management, University of Massachusetts North Dartmouth, MA 02747-2300.
Research Methodology
The Case Study: CRC Logistics (Hong Kong)
China Resources (Holdings) Co. Ltd (CRC) is one of the largest China-based companies in Hong Kong Over 300 subsidiaries with 50,000 employees and turnover of US$8.5 billion – ERC beer, Supermarket,
Innovation!!
Conceptual Model for 3PL
Logistics facilities A global network of partners Information technology Quality assurance
Conceptual Model
An Effective Logistics System
Petrochems and CER-Vangaurd
CRC Logistics was found 1949 (FORENCO) In 1990s, CRC Logistics transformed into a 3PL Company in China Major clients include: Star Micronics, Acer, Armstrong, Brother,
Inventory Management
Details of MK Logistics System
Module 3PL Supply Chain Event Management
Features Item ownership, out-tracing numbers, bar-codes cross-referencing, storage charges, operations charges, service charge tables and service billings Order pool management, KPI, yard management, artificial intelligence Contracts management, electronic order processing, order status tracking, client sales orders, automatic replenishment, client purchase orders DRP, MRP, kiting, inventory location control, lot control, physical inventories, cycle counts, inventory transactions, inventory inquiries, locating rules, picking put away rules, advance shipment notices, receiving, put away and confirmation, order pool management, pick planning, packing, parceling and shipping Return material administration, service order processing and warranty management Accounts receivable, general ledgers, accounts payable, and financial statements
3PL – IT/IS!
Transport Management Warehouse and Inventory Management
TQM
One-Stop Shop Total Logistics Service
IT/IS Wharf and Container Yard Management
3PL System (Solution and Network)
Purpose of the Study
Highlight the nature of market and the role of Information technology Understand the importance of Third-Party Logistics (3PL) Discuss the challenges of 3PL Present a case study focusing on the experience of a 3PL Company Outline the summary findings and conclusions
Integration of Logistics Chain!
3PL
Core competencies Real-time information Globalizing service demand Visibility in key performance indicators Collaboration in supply chain operations E-commerce development Interaction between marketing and logistics
management, wharf and container yard management, warehouse and inventory management and transport management)
to one-stop
service!! Partnership for operating cost savings and improve its clients’ profit margins.
What is 3PL?
Logistics Challenges
Delayed and inaccurate information Incomplete services Slow and inefficient operations High product damage rates Inability to provide inter-linked services High operating costs Lack of flexibility to changing requirements
Importance of 3PL
来自百度文库
Third-Party Logistics (3PL)
Logistics can be defined as an operational process that include inputting, storing, transporting and distributing of physical goods. 3PL can be defined as the outsourcing of distribution functions (such as inbound freight, customs, warehousing, order fulfillment, distribution, and outbound freight) of goods from clients to customers 3PL: reduces operating cost, to meet demand fluctuations, and to reduce capital investment.
KPI
Distribution Management
CRC Logistics System
CRC Logistics: Warehouse and Inventory Management
ISO 9001: 2000 certificate Warehouse Management Systems (WMS) Upgraded to Multi-Warehouse Inventory Management System (MWIMS) – Centralized service tailored for clients Computerized and JIT inventory management + RFID Real-time inventory inquiries Value-added services MK Logistics in Jan 2002 (3PL, SCM, order processing, WMS, service and warranty and finance)