Global Logistics and Supply Chain Management

1. Global Logistics and Supply Chain Management • John Mangan • Chandra Lalwani • Tim Butcher ISBN: 978-0-470-06634-8

2. The Contents of the Books (Chapter 11) Presented by Sean M Hsu Advisor : Dr. Jr Jung Lyu

3. Chapter 11 Measuring and Managing Logistics Performance

4. Learning objectives • Understand basic forms of performance measurement used in a logistics context such as tacho-graphs (轉速記錄機/行車記錄儀) in road haulage (運搬) and space utili-zation (利用;使用) in warehousing • Illustrate the trend towards measurement of a wider array of activities and the eight driving forces behind this trend • Explain why many LSPs(logical signal processor 邏輯信號處理機) now routinely share key performance data with customers • Understand the role of benchmarking in the context of logistics performance management • Identify「how many」 and 「which KPIs」 to track, 「how」 they are embedded within the organization, 「how」 they fit with wider company objectives, 「where」the requisite-data ( ) will come from, and 「who」 (at what levels within the organization) should receive the information generated by these KPIs • Understand in particular warehouse/inventory metrics and total landed costs

5. Basic measurement • LSPstraditionally employed measures that were either very basic from an operational viewpoint, or imposed on them by law

6. The tacho-graph • Fitted to a truck to record its speed, distance travelled and any breaks taken(行車記錄器/黑盒子) • Used by police forces to ensure that laws relating to the maximum hours a truck driver can work are observed • The rules are designed to limit continuous driving time and detail minimum breaks and rest periods

7. Resource utilization measures • At the broader company level the key inventory measure: • Inventory turnover (from a financial perspective) 存貨週轉 • Warehouse utilization measures倉庫利用率 • Total number of pallet(棧板) or carton spaces consumedvs.total available • Total space consumed within the warehouse • Throughput(生產處置能力/吞吐量) , e.g. total number of shipments received • Road transport utilization measures • Total number of deliveries successfully completed vs. ‘dropped deliveries’ (i.e. failed deliveries)

8. A contemporary viewpoint • Today’s 3PLsnot only have to display expertise in operational management, they must also keep track of each transaction and ensure that they and their customers and agents can have access to information relating to this flow as and when it is required • Such is the importance of monitoring this information that many 3PLs now have dedicated staff who’s job it is to record data that can be used in the development of metrics(發展成效量測的指標/關鍵) SCOR Model的Metrics（衡量指標） • 效能度量 (metrics) Performance Metrics: The Measurement of Healthcare Delivery Performance within a New Built Hospital • 研究現狀－USCERT標準Security Scoring Standards of USCERT US-CERT用metric value來評價一條漏洞的嚴重程度，metric value是一個在0 到180之間的數值。The Metric Value is used to score a vulnerability by USCERT, and the range of the metric value is from 0 to 180.

9. Key performance indicators • KPIs are shared with staff at all levels and in all functions, with partners and agents, and most importantly with customers • Most large customers now hold formal business reviews with their 3PLs where the presentation of KPIs is a key part of the meeting’s focus • Logistics businesses now see measurement of the performance of all operational areas as a common requirement from their customers

10. 環境分析 導入架構 發展願景 發展策略與策略主題 策略 形成 發展策略目標 發展KPIs 發展(由上而下引導) 調整(由下而上回饋) 訂定KPI目標值 策略 展開 擬定行動方案 分配資源與編製預算 連結績效評核與獎酬 資訊系統呈現及維護 策略執行先導工作

11. 好的 KPI 衡量基礎--SMART • S–Simple(or Specific 定義明確) 簡單、不複雜、有意義 • M–Measurable(or Money 確實可以衡量) 可以被量化、資料是可提供的 • A–Achievable(or Approachable 達得到的) 可達成的 • R–Realistic(or Result-oriented 目的導向) 可實現、合理的 、實際可行的 • T–Timely(Timing 掌握時效關鍵、切對時間點) 有時效性的、如每月或每季 (不能無限展延) ※ 不論是量化的KPI 、或者是質化的完工百分比法(%) - Money是唯一共通的語言

12. Fundamentals-基本的管理報表介紹 • 一般代表性的程度衡量或分類：新產品銷售百分比、客戶接受度、市場佔有率、及時上市… • 財務績效：NPV, ROI, EVA, BET (Break-Even Time 損益兩平)… • 客戶滿意：退貨率、抱怨率、滿意度… • 員工滿意：招募/離職率 • 成長、創意與學習：專利數、版權數 • 生產力與資源運用率：專案與能力比重負荷 • 作業掌控：製造良率、訂單週期 • 對成功的衡量：依據各家策略與商務行為達成的程度，去認定他的成功水準。

13. Driving forces for performance measurement • Increased reliance on contract manufacturers • Strategic importance of LSPs to  supply chain success • Adoption of  manufacturing management principles • Impact on  customer experience • Increased  competition •  Information technology improvements •  Empowerment practices 活力化 (企業組織賦予員工更大的授權、參與決策權力、組織工作團體、目標設定及訓練的作為) •  Employee motivation

14. Selecting the best measures • ‘measure results, not activities’ • it is all too easy to focus on simply assimilating data (消化吸收/同化)without necessarily understanding how this data may be used【only Focus on KPI】 • When setting KPIs, focus on what benefit one hopes to gain as a result of having these measures in place【to be in proportion】 • Don’t focus on what data may be easily available

15. Quantitative vs. qualitative KPIs • The majority of measures should be focused on quantitative results(量化) • Measures based on raw data can often be better for accurately comparing performance over time, and indeed for predicting future results • Quantitative results are more reliable when comparing over time, as long as the data used to generate them can be replicated without error(Forecasting & Predicting) • Forecasting :時間是最主要因素，利用過去的數值來推測未來，模型是用來預測不在輸入值中的推測值，例：下次什麼時候，有人會買這項產品。 • Predicting : 時間因素通常不被考慮，找出一個預測的模型(規則)來對一個或多個變數進行預測，模型僅能包括輸入值的範圍，無法超出。如：在何種條件下，有人會買這項產品。 • Some qualitative measures can also be useful (質化)

16. Benchmarking • Companies should always look to emulate/ε/ best in class • This is the role of benchmarking • Logistics companies rely on referrals / / from not just customers, but also from competing firms • The referring company may not have the required capacity but wants to fulfil their customer’s requirement • It is therefore important that some benchmarking of performance can first take place

17. Benchmarking • To benchmark against the industry, the company needs to use a similar set of measures in order to map performance against the companies being benchmarked • The time to first consider benchmarking is when a company is initially putting together a set of performance measures • It should be seen as a continuous process, and not as a once off project • Today’s logistics industry is very dynamic and benchmark levels of performance can constantly change

18. Figure 11.1Category of metric reporting Top-down & Bottom-up : Strategy vs. KPI ※OTD is on-time delivery; FTE is full-time equivalent, i.e. the equivalent of one employee

19. Figure 11.2 Goals and Metrics for use in a typical balanced scorecard. Source: based on Kaplan, R. & Norton, D. (1992) The balanced scorecard – measures that drive performance, Harvard Business Review, January–February

20. 衡量過去努力成果 股東與顧客的外界衡量 有關重大企業流程, 創新能力, 學習及成長的內部衡量 願景& 策略 驅動未來績效 平衡計分卡的四個構面 “To succeed financially, how should we appear to our share-holders?” Measures Targets Initiatives Objectives 財務 “To satisfy our shareholders and customers, what business processes must we excel at?” “To achieve our vision, how should we appear to our customers?” Measures Targets Initiatives Measures Targets Initiatives Objectives Objectives 內部流程 顧客 “To achieve our vision, how will we sustain our ability to change and improve?” Measures Targets Initiatives Objectives 學習與成長 Source: The Balanced Scorecard Collaborative

21. 企業領導者的帶動 動員企業作改變 (Policy & Top-down) - Mobilization- Strategic Management 將策略轉換成 作業條例 (標準化/ SOP/ SIP) 擬定策略是 持續性的過程 (Continuous Improvement) - Strategy maps- Balanced Scorecard- Integrate operational tools - Learning organization- Analytics and IS- Link budgets & strategy 擬定策略成為 每個人的職責 (Top-down & Bottom-up) 將企業組織與策略 緊密聯繫 (Cop/ Sop/ Mop) - Corporate role- Business unit synergies- Support unit synergies - Strategic awareness- Personal scorecard & compensation 成功關鍵因素

22. 建構平衡計分卡所須具備的條件 • 提供發展平衡計分卡的指導原則與策略核心矩陣 (Core-Tech, Top-down, and Strategic Matrix) • 彈性的展現方式 (策略與矩陣管理) • 多樣化的資料存取方式 • 整合分析的能力, 例如 OLAP Reports ‘On-Line Analytical Processing’ • 可執行與可運作的工具 • 整合教育訓練與溝通 • 知識管理與平衡計分卡相關文件的管理 • 與其他系統的整合 • 如 ERP, BI (Business intelligence, BI), ISO 9000, 6σ • 知識就是力量。BI系統收集您客戶的相關信息並加以分析，以幫助您確定商機和創建可以滿足客戶需求的戰略。數據倉庫、數據挖掘和決策支持中的先進技術創建大量的BI (商業智慧/商務智能)工具。 • 系統擴充之容易度

23. 發展平衡計分卡之步驟 釐清策略 設計平衡計分卡 規劃並建構 系統環境 經營環境 財務構面策略目標 KPI所需資料來源 願景與使命 客戶構面策略目標 指定資料提供者 營運方針目標 流程構面策略目標 現有系統支援程度 業務策略 學習構面策略目標 資料更新時間 各構面KPI 規劃系統運作功能 經營模式 策略地圖 & 因果關係圖 開發系統運作環境 KPI 清單

24. 願景 產業結構分析 競爭力分析 策略 導入分析 股東權益與獲利 財務績效 集資計劃 方針管理 企業e化 企業流程改造 財務 內部流程 價 值 鏈 : 機 能 管 理 職涯規劃 職能庫 教育訓練 薪酬制度 人力結構 行銷通路 網路行銷 策略聯盟 客戶關係管理 客服中心 顧客 學習成長 平衡計分卡

25. Balanced Scorecard: Causal Relationships Strategy Internal Customer Financial Process T1 T2 T0 Learning T3

26. Inventory / warehouserelated metrics - receiving • Generally the first to be recorded, because receipt of product is often the most important transaction • If the receiving process is well thought out and implemented, then stock accuracy and product in/tegrity should also be well managed • If product is received into the correct location, and in the correct quantity, then the subsequent picking process too has a good chance of being problem free • Receiving metrics • Receiving time • Receiving On-Time Delivery • Delivery paperwork detail is correct • Part numbers, lot numbers and purchase order numbers match that on the paperwork and as against the ASN • Product is physically inspected with unit / carton or pallet count completed, product inspected for any signs of in-transit damage, repackaging, etc

27. Inventory / warehouserelated metrics - put-away • Put-away metric(把...收起;放好 ) • Number of pallets, cartons or units put-away • Compared against the resource available to produce a productivity measure • Percentage of product put-away within a stated time • Many warehouses might have good receiving metrics, but have product sitting on the floor yet to be put away(儲存 / 拋棄;放棄)

28. Inventory / warehouserelated metrics - inventory accuracy • Inventory metricsact asa measure of operational performance, and reflect the ad/herence to processes, rather than the performance of the inventory team who conduct cycle counts • Cycle-counting of product is an activity that customers usually take a keen interest in because the material being counted generally sits on their balance sheet rather than the 3PL’s balance sheet • Cycle-counting measures the length of time that inventory is sitting in the warehouse • An aged stock report, detailing the number of weeks product is in stock is easiest to report • An overall view of stock movements within the warehouse can be given with a report outlining the number of inventory turns

29. Figure 11.3 Total landed costs

30. Logistics costs performance • A purchasing decision should consider all related costs: • Freight (貨運) • Carrying Costs (運送成本) • Duty (稅) • Packaging (包裝) • Warehousing (入庫) • Locali/zation (局部化；地方化)

31. 3PL cost models • Cost plus margin(利潤;賺頭) • Often the preferred model for 3PLs • Advantages:(利多) • It provides complete trans/parency for all parties involved • Risk is reduced for both parties • Disadvantages:(利空) • Often a reluctance for the 3PL to drive continuous improvement • Resources may be fixed at a level that meets the peak season demand • Resources employed may not be adequate to meet business requirements • Little opportunity for 3PLs to make high profits

32. 3PL cost models • Transactional Pricing • 3PLs will use all their available resources across multiple customers and quote a unit rate for standard warehouse activities • Advantages: • Resources are generally not fixed by the customer • The 3PL will be highly motivated to drive efficiency at all stages of their process as any savings made will result in higher profits • Disadvantages: • The customer may not always get the customer service that they require • The 3PL needs to ensure that special requests are charged separately • The customer does not have transparency (透明;透明度)

33. Service level agreements • A mutually agreed and understood agreement put in place between both the company buying the service and the company providing the service • To include: • Roll-out and duration of the service or process being purchased • Scope of services • Areas of responsibility (i.e. who is responsible for what) -PIC • Performance metrics

34. Supplementary Matter (Chapter 11) ~ Some Additional Remarks ~

36. The Cultivating for Quality(舉例) Top Down • Top-Management • Division Managing • Dept. Managing • TQM (Total Quality Management) • Policy Deployment TQM • QMU (Quality Management for Unit) • SPC/ SQC Training & Problem-solving • Manufacturing Consulting • Dept. Managing • Unit Managing • Engineer Managing SQC • Engineer Operating • Operator Operating • QCC Training • Work Training Bottom Up QCC

37. 問題點對策 一覽表 ○○年度XX部門 展望目標 公司內部 問題點 公司外部 問題點 競爭公司 問題點對策 一覽表 ○○年度XX部門 展望目標 公司外部 問題點 公司內部 問題點 競爭公司 問題點對策 一覽表 ○○年度XX部門 展望目標 競爭公司 公司內部 問題點 公司外部 問題點 總經理目標方策 評價分析矩陣圖 TQM戰略 要因矩陣圖 TQM戰略要因 S-W分析 總經理年度 目標方策分析矩陣圖 ○○年度總經理方針 方針整理流程

38. 流程式組織 --橫向管理 & 縱向管理 (COP-SOP-MOP) 機能別管理與部門別管理的相互關係 方針管理 機能別管理　 新產品開發 品質保證 量 管 理 成本管理 標準化 教育訓練 機能別管理 新產品開發 品質保證 量 管 理 成本管理 標準化 教育訓練 部 門 別 管 理 QMU 品經體活動

39. Matrix Organization & TQM

40. 基本名詞 • BSC: Balanced Scorecard 平衡計分卡 • CPM: Corporate Performance Management 企業績效管理 • KPI: Key Performance Indicator 關鍵績效指標 • ERP: Enterprise Resource Planning 企業資源規劃

42. 檢視經營內涵 策略規劃展開 給予激勵╱懲處 價值創造之 程度高低 具體能力之展現 績效管理 提供資訊 組織整體運作 績效衡量指標 • 策略 • 行動計劃 • 監控 • 評核 • 獎懲 • 財務面 • 非財務面 • 組織 • 流程 • 人員能力 • 資訊科技 組織整體運作能力，而非績效指標，為組織競爭力來源 要知道績效之良莠，需要有正確的【績效衡量指標】 使用好的【績效管理】方式來評核與獎懲員工，驅動其行為 員工的行為，必須依照【策略規劃展開】後的行動計劃 • 【組織整體運作】為競爭力持續性最終來源，故策略展開之行動計劃用於建構組織整體運作能力

43. 建立企業績效管理／平衡計分卡制度對企業之幫助建立企業績效管理／平衡計分卡制度對企業之幫助 • 將策略轉換為不同層次之營運用語 • 將組織目標平衡地連結至企業整體策略目標 • 依據組織目標進行行動規劃與資源分配 • 監控策略之達成程度 • 採用策略管理流程並使其在組織內成為一個永續的流程 • 透過決策領導動員變革 • 而不是僅僅為了衡量而建立關鍵績效指標KPI

44. Vision 願景 Strategy 策略方向 Strategic Objectives 策略目標 Key Performance Indicators主要績效指標 InternalProcess 內部流程 Learning & Growth 學習成長 Financial 財務 Customer 顧客 平衡計分卡僅為企業績效管理架構之一 • 大衛．諾頓(David Norton)與羅伯．柯普朗(RobertKaplan)教授根據其對許多發展出創新績效衡量系統公司進行個案研究之研究結果後，於1992年提出「平衡計分卡」(Balanced Scorecard, BSC)模式。成為企業績效管理使用之衡量架構之一。 展開架構 (Deployment Framework) 本公司的未來為何？ 本公司如何達成願景? 本公司的策略量化目標為何? 如何全面衡量本公司績效水準? 我們如何持續成長、改善並創造價值？ 如何面對我們的股東？ 希望我們的顧客如何看待我們？ 期望我們的作業流程表現如何？

45. 平衡計分卡(Balanced Scorecard)的四個構面 財務 欲達成財務目標，我們該以何種姿態面對股東？ 內部流程 學習與成長 遠景與策略 為滿足股東與顧客之需求與期望，我們必須在那個流程上保持優勢？ 為達成企業遠景，我們該如何保持學習成長，並進行必要的變革與改善？ 顧客 既有及潛在的客戶如何看待我們，我們如何繼續提供價值給客戶？

46. 由質化之願景與策略展開至可量化的策略目標與績效衡量指標。由質化之願景與策略展開至可量化的策略目標與績效衡量指標。 績效衡量指標皆為可充份衡量策略的成功與否之「關鍵」「量化」指標。 由質化之願景與策略展開至可量化的策略目標與績效衡量指標。 將策略轉換成組織內不同功能部門、不同層次之營運績效指標：從全行、事業單位、功能部門、工作團隊至個人。 四個衡量構面： - 財務面 - 顧客面 - 內部流程面 - 學習成長面 可平衡地衡量： - 財務性 vs. 非財務性績效 • 內部性 vs. 外部性績效 • 短期性 vs. 長期性績效 • 結果性 vs. 中間性績效 各衡量層面間具有因果關係：學習成長績效 內部流程績效 顧客績效 財務績效 可協助進行績效成果追蹤分析，找出需改善之績校因子，並據以規劃改善行動。 平衡計分卡的特色與效益 特色 (Characters) 效益 (Benefit)

47. 平衡計分卡四構面因果關係圖（策略圖）（例）平衡計分卡四構面因果關係圖（策略圖）（例） 藉由員工發展，高品質之產品與服務， 及員工、股東、顧客之滿意度提昇，成為世界級公司 財務面 顧客面 內部流程面 學習與成長面 股東價值 顧客滿意 流程效率/效果 員工滿意 營收成長 市場佔有率 營收成長 創造股東價值 提昇整體服務品質提昇顧客滿意 股價 EPS 外部顧客滿意度 帳單相關抱怨百分比 抱怨次數／顧客 改善獲利 縮短服務時間 改善 供應商關係 員工技能發展 利潤率/毛利率 資本報酬率 技術能力 供應商/企業夥伴滿意度 成功作業遵行要求百分比 滿足顧客需求之週期時間 生產力與效率 達成員工滿意 每位員工收益 員工滿意

48. 用表列方式呈現的平衡計分卡（例） KPI 目標值 實際值 差異 行動方案 KPI 目標值 實際值 行動方案 差異 財務面 EPS 營收成長 利潤率/毛利率 股價 資本報酬率 非交易來源收入百分比 市場佔有率 內部流程面 供應商／企業夥伴滿意度 每位員工收益 成功作業遵行要求百分比 KPI 目標值 實際值 差異 行動方案 KPI 目標值 實際值 差異 行動方案 顧客面外部顧客滿意度 滿足顧客需求之週期時間 帳單相關抱怨百分比 抱怨次數／顧客 學習與成長面 員工滿意 技術能力

49. Gartner Research對CPM/BSC軟體看法

50. 策略地圖的建立