Supply Chain ManagementSupply Chain Management

Chapter 16Chapter 16

Logistics v. Supply Chain Logistics v. Supply Chain ManagementManagement

LogisticsLogistics

Supply ChainSupply Chain

Why Now?Why Now?

DeregulationDeregulation Managerial AttentionManagerial Attention TechnologyTechnology Competitive PressuresCompetitive Pressures Increase in Big BusinessIncrease in Big Business

SCM & StrategySCM & Strategy

Identify the ConsumerIdentify the Consumer Understand the Supply ChainUnderstand the Supply Chain Harmonize the Supply Chain with the Harmonize the Supply Chain with the

Marketing StrategyMarketing Strategy EfficientEfficient Customer requirementsCustomer requirements

InformationInformation ImportanceImportance TypesTypes

Electronic Data Interchanges (EDI)Electronic Data Interchanges (EDI) ExtranetExtranet Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP)

Customer ServiceCustomer Service

DimensionsDimensions TimeTime

Order Cycle TimeOrder Cycle Time Quick responseQuick response

DependabilityDependability CommunicationCommunication ConvenienceConvenience Customer Service StandardsCustomer Service Standards

Order Cycle TimeOrder Cycle Time

What is it?What is it? AKA Lead timeAKA Lead time

Why is it important?Why is it important?

How can it be reduced?How can it be reduced?

Total Logistics Cost ConceptTotal Logistics Cost Concept

Transportation, materials handling Transportation, materials handling and warehousing, inventory, stock and warehousing, inventory, stock outs, order processing, goods outs, order processing, goods handling costs.handling costs.

Key issuesKey issues

Logistical FunctionsLogistical Functions

Logistical functionsLogistical functions TransportationTransportation Warehousing and Materials HandlingWarehousing and Materials Handling Order ProcessingOrder Processing Inventory ManagementInventory Management

Third-party Logistics ProvidersThird-party Logistics Providers

TransportationTransportation

RailroadsRailroads Intermodal transportationIntermodal transportation

Motor CarriersMotor Carriers Air carriers and Express CompaniesAir carriers and Express Companies Freight ForwardersFreight Forwarders

Warehousing and Materials Warehousing and Materials Handling/ Order ProcessingHandling/ Order Processing

Types of WarehousesTypes of Warehouses StorageStorage DistributionDistribution

Materials HandlingMaterials Handling

Order ProcessingOrder Processing

Inventory ManagementInventory Management

ReasoningReasoning CostsCosts

CapitalCapital InventoryInventory StorageStorage RiskRisk

StrategiesStrategies High inventory v. JITHigh inventory v. JIT Vendor-managed Inventory Vendor-managed Inventory

Reverse LogisticsReverse Logistics

What is it?What is it?