The Economics of Downstream Logistics and Distribution

Course Summary
With the constant pressure on downstream organisations to minimise costs, the need to develop a process of continuous operational improvement becomes vital. A need to 'empower' operational staff closer to the customer becomes a 'driver for change' as companies move towards process-driven organisations and away from hierarchical control. The key to continuous improvement is to develop and share 'best practice' in the logistics and distribution function. The way to achieve this is to employ benchmarking techniques as a tool to develop key indicators for performance measurement and produce key indicators against which organisations can measure their performance improvement.

What you will learn

• The importance of total supply chain logistics to overall company performance
  
• Relationship between marketing and logistics and the need for continuous communication between these functions; the effect of customer service levels and trade profiles on cost
  
• Logistics economics (all modes of primary supply, road transport and depot/terminal operation) and the identification of key performance indicators and how these can be used for benchmarking
  
• The importance of joint ventures and the principles of their negotiation
  
• Principles of developing and implementing a meaningful and successful business strategy
  
• How to negotiate with and control outsourced suppliers
  
• The planning of a logistics and marketing operation within a competitive environment
  
• The issues and interactions between employers, government, trade unions, suppliers and environmental groups
  
• Training in essential management skills (for any function), such as business analysis, strategic development, negotiation, human relations, competitor analysis, financial appraisal, budgeting, etc
  
• Inventory and estates management and its financial relevance
  
  Suitability:
  
  
  
  • Team leaders and managers of major oil and energy companies with strategic or operating roles
    
  • Business control unit and finance managers responsible for performance measurement
    
  • Logistics and distribution managers with network planning, primary and secondary supply, and transport responsibilities
    
  • Marketing managers and planners
    
  • Logistics and distribution analysts
    
  
  Course content:
  The Wet Value Chain
  
  
  
  • The economic factors that effect the wet value chain
    
  • Application of continuous improvement techniques to the wet value chain
    
  • Managing the supply chain effectively; removing cost blocks, barriers and silos
    
  
  Customer Service
  
  
  
  • The application of customer service standards to the wet value chain
    
  • The effect of differing customer service standards on the supply chain solution
    
  • Service level agreements to meet customer needs and improve logistics and distribution performance
    
  
  Continuous Improvement - Performance Measurement and the role of Benchmarking
  
  
  
  • Developing a continuous improvement organisation
    
  • What is benchmarking and ho- it supports continuous improvement
    
  • Creating a continuous improvement culture - the team process
    
  • Organisational change in logistics
    
  
  Best Practice in Logistics and Distribution
  
  
  
  • Identifying and measuring 'best practice' in storage, transport and support services
    
  • Identifying the 'performance gap'
    
  • Information technology and its role in performance enhancement
    
  
  Case Studies:
  The Averia Business Planning Project
  
  
  
  • This computer based exercise places delegates in the position of a director or very senior manager of an oil marketing company where all skills and knowledge can be put to the test in a fast-moving and realistic environment
    
  
  Complaciente Oil Company of Yazilanta
  
  
  
  • Organisational change and its role in continuous improvement