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Supply chain & logistics management

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Supply chain & logistics management

  1. 1. INTEGRATING SUPPLY CHAIN AND LOGISTICS MANAGEMENT
  2. 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. 3. Relating marketing channels, logistics management, and supply chain management
  4. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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