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INTEGRATING SUPPLY CHAIN

AND LOGISTICS MANAGEMENT

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• Relating marketing Channels, Logistics, and Supply Chain Management

Logistics Logistics management Supply chain Supply chain management

SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Relating marketing channels, logistics management, Relating marketing channels, logistics management, and supply chain managementand supply chain management

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The automotive supply chainThe automotive supply chain

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• 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

SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Information’s Role in Supply Chain Responsiveness and Efficiency• Electronic data interchanges

• Total Logistics Cost Concept

INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE

IN A SUPPLY CHAIN

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How total logistics cost varies with number of How total logistics cost varies with number of warehouses usedwarehouses used

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Customer Service Concept

INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE

IN A SUPPLY CHAIN

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Supply chain managers balance total logistics cost Supply chain managers balance total logistics cost factors against customer service factorsfactors against customer service factors

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• 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

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• Third-party logistics providers

• Transportation

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN

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Advantages and disadvantages of five modes of Advantages and disadvantages of five modes of transportationtransportation

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• Transportation • Railroads

Intermodal transportation

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN

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• Transportation • Motor Carriers

• Air Carriers and Express Companies

• Freight Forwarders

• Warehousing and Materials Handling

• Order Processing

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN

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• 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