Study and projects

Logistics audit – basic evaluation of the logistics standard

Logistics audit is an optimal tool for swift, effective and complex evaluation of the standard of logistical processes.

 

The methodology of the logistics audit is certified by the Chamber of Logistics Auditors. It is based on the combination of a subjective point evaluation of individual parts of the logistics system made by selected respondents from a company management and an objective evaluation made by an independent consultant  - certified auditor, member of the Chamber of Logistics Auditors.

 

For the purpose of the logistics audit, a company's logistics system is first of all divided into basic logistical processes. The basic functions of each of these processes are evaluated by means of interviews, monitoring of the company's operation and collection and analysis of logistics indicators.

 

The output of the logistics audit is a Logistics Audit Report, containing besides the evaluation of the individual processes and functions first and foremost the identification of the critical areas and a proposal of the action plan for their improvement (the so called Schedule of Changes.

MATRIX FOR EVALUATION OF THE QUALITATIVE PARAMETERS OF LOGISTICS SYSTEMS

 

MATRIX FOR EVALUATION OF THE QUANTITATIVE PARAMETERS OF LOGISTICS SYSTEMS

 

 

Disposition and Technological Design of Warehouse

Optimal disposition and technological arrangement of a warehouse is a prerequisite for effective performance and quality of the warehouse operation.

 

Whether the main aim is to improve the existing warehouse operation, to solve the arrangement and technology in another storage building or to design a brand new warehouse "on a green field", the procedure and methodology of the solution in the introductory part of the study is always similar and is based on our consultants' practical experience gained while working on more than twenty projects in the Czech Republic.

 

First of all it is necessary to make a detailed analysis of everyday running of a warehouse in order to define the needs and requirements for the capacity, efficiency and quality of a new solution as well as its restrictive factors. Various tools and analytical methods are applied at this stage in relation to the level of complexity of the task, such as the detailed analyses of the stock using our own SW tool, called LOGIstock, SWOT analysis, dimensional analysis, process modelling, material flow charts, etc.

 

In order to produce a final model solution for the new warehouse operation, a rough three-dimensional and operational model of the warehouse is created at first, which is usually a compromise between the absolute requirements and the restrictive factors (space, investment resources, customer service).

 

After the rough warehouse model has been approved by the client, a detailed disposition and technological warehouse solution is created, integrating optimally the selected or existing construction solution, the most effective handling procedures, the most suitable handling and storage technology and the appropriate information system support.

 

In practice, the study itself is usually followed up by further cooperation in the form of authorial supervision over the supply of the proposed solution or possibly even external management of the project implementation carried out by the consultant who provided the particular solution.

Designs of Warehouse Management Systems (WMS)

An independent draft of the management system of warehouse operations provides for an objective definition of the optimum requirements for a specific warehouse information system of the WMS category for optimum setting of the warehouse processes.

 

The resulting study in the form of the SRS document (Software Requirement Specifications) is a set of instructions for internal changes and warehouse process optimisation, introduction of bar codes, etc., and at the same time it may also serve as a guideline document for a tender for the supply of a suitable information system. Thanks to clearly defined and detailed requirements, the offers made by the prospective suppliers may be compared from the point of view of their functionality, which helps to eliminate the risk of selecting an unsuitable IS and increasing the costs subsequently due to additional modifications.

 

The study is usually followed up by mutual cooperation on the relevant project, which may involve drawing up of the project schedule, coordination of the tender proceedings or management of the project implementation up to the point of putting WMS into routine operation.

Distribution Concept

The optimum distribution concept represents an ideal number, location and combination of a company's own and contractual warehouses, a suitable proportion of its own and contractual transportation including the planning and management methods, while meeting all the capacity and customer requirements and keeping the costs at minimum.

 

An analysis of the initial state deals with the initial process solution and infrastructure and examines the cost effectiveness and efficiency of the individual parts of the distribution system.

 

The proposal part of the study is among other things based on telematic SW tools called STANDORT and PLANTOUR by means of which it is possible to model the performance and costs within the proposed distribution system using digital maps.

 

Stock Management – Purchase and Production Planning

Stock management is one of the key areas of logistics, often with a considerable potential for logistics cost economies.

 

The analysis of a company's stock management system is based on a detailed item analysis using a SW tool called LOGIstock. This analysis enables a statistical assessment of the quality of the stock management system in the preceding period by means of a wide range of indicators (average stock level, safety stock, turnover stock, sale/consumption standard deviation, sale/consumption stability, etc.), considering separately the particular warehouses, desk-officers, groups of stock and individual items. Moreover, the item analyses are visualised by means of a graphic representation of the course of the key indicators (stock, input, consumption) in relation to a selected time period (weeks, months)

 

 

The analytical outputs are subsequently aggregated using the ABC/XYZ analysis and they are utilised for segmentation of the assortment into groups. Later on a diversified approach will be used on these groups in order to reduce their number. The relevant disposition parameters are generated for the particular items, such as safety stock level, extra order level, optimum volume of purchase, etc. These are later exported to material cards within the ERP system (SAP, Navision, K2, etc.)

 

In order to maintain the optimum condition and structure of the stock, the calculation of the disposition parameters may be repeated regularly, or the SW LOGIstock may be implemented with the interface to the client's ERP system thus enabling automatic updating of the disposition parameters. Alternatively, it is possible to generate the material requirements straight from LOGIstock.    

Business Process Reengineering (BPR)

Business process reengineering focuses primarily on logistical processes.

 

In terms of the project work, it is a complex service involving in its analytical stage mainly mapping and analysis of the logistical processes and related business processes, calculation of logistics performance and costs, a detailed analysis of material flow (stock, assortment, receiving, issue) and a service level analysis. 

 

The results of the analytical stage are used to formulate a definition of the logistics concept, i.e. the desired state of implementation and securing of logistical processes, and further a definition of the project of change, i.e. the action plan of transition from the current state into the target state. This part also involves determination of the target controlling logistics indicators/key parameter indicators (KPI's).

 

The actual performance of changes usually requires management or supervision by the consultant - author of the particular solution. The project's successfulness is monitored by introducing the "logistics controlling" (system of regular monitoring and assessment of logistics indicators and changes of key parameters)