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Logistics time management


Logistics time management


Logistics time management based on the supply chain is the time compression strategy, to find various means to compress and reduce the non-value added time of the supply chain business to increase the time value of the supply chain. The strategic framework of logistics time management based on supply chain includes two levels of supply chain structure reengineering and operational strategy reengineering. Its purpose is to understand the time compression of logistics and information flow in two dimensions.

(a) Time-compressed structure reengineering at the operational strategy level of the supply chain emphasizes the concept and method of process improvement. The operational strategy focuses on the operational level process. Common strategies include quality management, the breakthrough of capacity bottlenecks, determination of reasonable processing batches based on bottleneck capacity, optimization of facility layout, planned adjustments and changes, and machines maintenance and so on.

(b) Time compression of the supply chain structural reengineering can be further divided into macro-structural reengineering and microstructural reengineering. The first is to reconstruct the macrostructure which decides the form of the supply chain node and considers which type of company to use as a partner.

After the inclusion of partners in the supply chain, the macrostructure of each company must also be adjusted accordingly, including information sharing, process reorganization, and optimization of the supply chain structure. The goal is to build a responsive supply chain network. Microstructure reengineering emphasizes on the overall interests of the established supply chain alliance, macro-coordination, optimization of the whole, better realization of customer value, and enhancement of the time competitiveness of the entire supply chain. The main methods and strategies cover Information Engineering and Information management, Concurrent Engineering and Matrix Management, Flexible management, System Engineering and Integrated Management. The reengineering of the supply chain through structural reengineering and operation strategy is mainly to achieve two-dimensional time compression. Logistics time compression meets the time requirement of the market for the supply chain. Secondly, it is necessary to consider the appropriate number of logistics. On this basis, the logistics cost should be reduced as much as possible. The time compression of information flow is not only reflected in improving the speed of information transmission, but also more importantly in the ability to extract useful information. By synthesizing the above-mentioned operational tactics, the overall strategy of logistics time management based on the supply chain is obtained. Based on this, the actual operation or simulation is used to analyze the supply chain’s member companies and the entire supply chain. Performance is evaluated and adjusted dynamically according to different product types and demand types. In the process of designing and adjusting operational strategies, it is also necessary to comprehensively consider goals such as costs and customer service levels in addition to the response time objectives of the supply chain.