logistics process capabilities and...
TRANSCRIPT
Background note…
• Logistics infrastructure challenges at the current scale & tonnage traffic scenario analysis 2015
• Need to quantify the impacts in terms of logistics measures as a common measurement tool @ industry level
• Need to establish linkages for ownership both internally and externally
Traffic ‐Mn Tons 2009 2015
Total ‐ISP Steel traffic 40 100
Total ‐ISP traffic 170 4252
Supply Chain maturity in steel
Performance Attribute
Metrics India Best In Class
Forecast Accuracy 50‐70% Over 85%Reliability
Delivery Performance to Customer Request Date
40‐65% 97.7%
Total Order Fulfillment Lead Times
20‐30 days
14 daysResponsiveness
Response Time to Inquires 1 day‐1 month
Less than 3 sec
Flexibility Re‐plan cycle time 1 to 3 months
15 days
Assets Inventory Turns 3 to 5 Over 7
Logistics session, i2 Steel summit ‐2007
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Activities till date
• Logistics forum – Member companies nominated their Supply chain heads to the group ‐ SAIL , Tata Steel , Essar, JSW, Ispat, JSPL, JSL,Welspun ArcelorMittal
• Two logistics round tables and inputs on Infrastructure challenges from the members
• Started the Logistics score card survey with the integrated steel plants
• Submitted the first round of notes to Rail, Shipping and Surface transport ministries
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Financial perspective
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No Measure Unit Current Target
1 Inventory turns Nos/year 6 72 Freight cost Rs/Ton/km 1.35 1.23 Logistics cost Freight Index 1.21 1.14 Returns on Investment ROIC 0.3
Internal perspective
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No Measure Unit Current Target
1 Real time location visibility levels % 0.30 1.002 In ‐plant Wagon Turnaround Hrs 35 63 In‐plant Truck Turnaround Hrs 15 33 Dispatch spread % 15/30/55 30/30/404 Transit Inventory Days 7 35 In‐plant route network kms Kms 6 No.of handlings Nos 6 3
Customer perspective No Measure Unit Current Target
1 Order Fulfillment time Days 30 152 Delivery Compliance % 0.7 0.93 Supply chain visibility % 0.25 14 Loss in Transit/Quality % 0.1 0.5
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Strategic perspective No Item Measure Current Target
1 Best practices & Knowledge sharing Nos.2 Branding 3 Logistics forum Initiatives Nos. 5 Sustainability ‐Wood & Transportation %
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