INTEGRATING SUPPLY CHAIN AND LOGISTICS MANAGEMENT

1. INTEGRATING SUPPLY CHAIN AND
LOGISTICS MANAGEMENT

2. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS
MANAGEMENT
Relating marketing Channels, Logistics, and
Supply Chain Management
Logistics
Logistics management
Supply chain
Supply chain management

3. Relating marketing channels, logistics management, and
supply chain management

4. The automotive supply chain
Speed
Efficiency
Reduce Cost
Improve Supply chain cycle times (to get a
company’s products from concept to
market)

5. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS
MANAGEMENT
Supply Chain Management and Marketing
Strategy
Aligning a Supply Chain with Marketing
Strategy
•Understand the customer
•Understand the supply chain
•Harmonize the supply chain with
the marketing strategy

6. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.•Information’s Role in Supply Chain
Responsiveness and Efficiency
•Electronic data interchanges
•Total Logistics Cost Concept
INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN
SUPPLY CHAIN

7. Decide where your products will
come from. Who will be your
supplier?
Helps the company know who they
can rely on to deliver their products
in a timely manner.
How total logistics cost varies with number of warehouses
used

8. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Customer Service Concept
INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN
A SUPPLY CHAIN

9. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Supply chain managers balance total logistics cost factors
against customer service factors

10. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.•Customer Service Concept
•Lead Time
•Quick response
•Efficient consumer response
•Dependability
•Communication
•Convenience
•Customer Service Standards
INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE
IN A SUPPLY CHAIN

11. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
•Third-party logistics providers
•Transportation
KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
Oracle SCM:

12. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
 Improving productivity
 Reducing their costs
 Decreasing processing time
 Cutting errors
 Increasing volume discounts
Advantages and disadvantages of five modes of
transportation
Oracle SCM:

13. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
•Transportation
•Railroads
•Intermodal transportation
KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
Oracle SCM:

14. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
•Transportation
•Motor Carriers
•Air Carriers and Express
Companies
•Freight Forwarders
•Warehousing and Materials Handling
•Order Processing
KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
Oracle SCM:

15. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
•Inventory Management
•Reasons for Inventory
•Inventory Costs
•Supply Chain Inventory Strategies
•Just-in-time (JIT) concept
•Vendor-managed inventory
•CLOSING THE LOOP:
REVERSE LOGISTICS
KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
Oracle SCM:

16. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Those activities that focus on getting the
right amount of the right products to the
right place at the right time at the lowest
possible price.
Logistics

17. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
The practice of organizing the cost-
effective flow of raw materials, in-process
inventory, finished goods, and related
information from point of origin to point of
consumption to satisfy customer
requirements.
Logistics Management

18. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
A sequence of firms that perform
activities required to create and deliver a
good or service to consumers or industrial
users.
Supply Chain

19. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
The integration and organization of
information and logistic activities across
firms in a supply chain for the purpose of
creating and delivering goods and
services that provide value to customers.
Supply Chain Management

20. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
The integration and organization of
information and logistic activities across
firms in a supply chain for the purpose of
creating and delivering goods and
services that provide value to customers.
Cross Docking

21. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Combine proprietary computer and
telecommunication technologies to
exchange electronic invoices, payments,
and information among suppliers,
manufacturers, and retailers.
Electronic Data Interchange (EDI)

22. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Expenses associated with transportation,
materials handling and warehousing,
inventory, stockouts, order processing,
and return goods handling.
Total Logistics Cost

23. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
The ability of logistics management to
satisfy users in terms of time,
dependability, communication, and
convenience.
Customer Service

24. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Lag from ordering an item until it is
received and ready for use or sale. Also
called order cycle time or replenishment
time.
Lead Time

25. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
An inventory management system
designed to reduce the retailer’s lead
time, thereby lowering its inventory
investment, improving customer service
levels, and reducing logistics expense.
Quick Response

26. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Firms that perform most or all of the
logistics functions that manufacturers,
suppliers, and distributors would normally
perform themselves.
Third-Party Logistics Providers

27. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
An inventory management system
whereby the supplier determines the
product amount and assortment a
customer (such as a retailer) needs and
automatically delivers the appropriate
items.
Vendor-Managed Inventory

28. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
A process of reclaiming recyclable and
reusable materials, returns, and reworks
from the point of consumption or sue for
repair, remanufacturing, redistribution, or
disposal.
Reverse Logistics

29. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Combining different transportation modes
to get the best features from each.
Intermodal Transportation

30. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Firms that accumulate small shipments
into larger lots and then hire a carrier to
move them, usually at reduced rates.
Freight Forwarders

31. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
Moving goods over short distances into,
within, and out of warehouses and
manufacturing plants.
Materials Handling

32. Develop strategies in order to meet customer’s needs and demands.
Plan to develop high quality products with a lower cost at a fast pace.
An inventory supply system that operates
with very low inventories and requires
fast, on-time delivery.
Just-In-Time Concept