Tài liệu tiếng Anh thương mại Chapter 21 Demand management and logistics

Tài liệu tiếng Anh thương mại quản lý Chapter 21 Demand management and logistics

Chapter 21

Demand Management and

Logistics

Key Concepts

– Supply Management– Demand Management– Logistics Management

Key Concepts

The Key to Supply Chain Management

• Supply management is the key to Supply

Chain Management.

• While many functional areas lay claim to

the emerging field of SCM, supply

management has the strongest claim

• Since supply professionals are

responsible for developing and managing the interrelationships between supply

chain members, supply management is

the critical function responsible for

Harnessing the Power of SCM

creating debate in upper management

boardrooms and academic classrooms across

the world

going to improve their competitiveness in the

future through SCM

versus chain (or network versus network.)

first step to moving it towards world class

Definitions of Supply Chain Management

flow of a distribution channel from supplier to the ultimate customer.

logistical, conversion and service activities from vendors to ultimate consumers necessary to

produce a product of service efficiently and

effectively.

Definitions of Supply Chain Management

understanding and managing of the sequence of activities - from supplier to customer - that add

value to the product supply chain.

associated with the upstream and downstream

flow and transformation of goods and information from the raw materials stage (extraction), through

to the end user

effort of multiple channel members to design,

implement, and manage seamless value-added

processes to meet the real needs of the end

customer

The Strategic SCM Triangle

Strategic Supply Management

St ra te gic L og is tic

s

M an ag em

Strategic Demand Management

smooth, coordinate, balance, and influence the

demand and supply for a firm’s products and

services.

costs for the firm and its supply chain.

to adjust the inflow of materials and products.

process.

Need for World Class Demand Management

the proliferation of error in forecasts

accumulated in some supply chains

of demand management

further into the future one attempts to forecast future conditions, the greater the error

Demand Management Characteristics

points throughout an organization

updates them based on actual, real-time demand

materials and products

production plans, calculation of inventory levels, setting of capacity levels and developing

customer service strategies

Demand Management Characteristics

• Smoothes production after master production

schedules have already been released to internal production and external suppliers

• Is a process (versus a bounded business

function) that requires the utmost in coordination and communication between the responsible

parties

• Has contingency plans developed with supply

chain members to allow modification of

short-term schedules when necessary

• Balances the total costs of not meeting demand

against the total costs of adding additional

Future Customer Demand

Research and Technology

Operations

Schedules

Demand Forecasting

(1-4 weeks)

Strategic Product Decisions

Strategic Capacity Planning

Aggregate Plan

(12-24 months)

Master Schedule

(1-12 months)

DEMAND MANAGEMENT

DEMAND MANAGEMENT

Research and Technology

Future Customer Demand

Demand Management Information Flows

The Bullwhip Effect

information among supply chain entities can

result in bloated inventory levels due to a

cumulative effect of poor information cascading

up through a supply chain

Evolution of Strategic Demand

Questions Related to Demand Management

Forecasting Demand

• What is a forecast?

• In terms of SCM, a forecast is an estimate

of future demand

• A calculated guess or estimate about the

future demand for a firm’s products and

services under conditions of uncertainty

• Forecasts fall into two categories:

Comments Frequently Overheard about Demand

forecast!”

software module.”

much time.”

Planning with Time Fences

Demand Time Fence

Current Production

Period

Intermediate Planning Period

Long

-Range Planning Period

Planning Time Fence

Implications for Supply Management

• Demand management organizationally fits

within either supply management or SCM

• Supply professionals manage the

relationships in the supply chain;

therefore they are in a critical position to

facilitate the high levels of communication and trust that are required in Strategic

Demand Management.

Strategic Logistics Management

• Strategic LM forms the third side of the

Strategic SCM triangle

• Logistics professionals play an important role in the success of supply chain

management in the management of

transportation, storage, and warehousing activities

• Unfortunately, many companies define

logistics as synonymous with the term

SCM, thus ignoring the contributions and

roles of supply management and demand management

Definition of Logistics

that plans, implements, and controls the efficient, effective flow and storage of raw materials, in-

process inventory, finished goods, services and related information from point of origin to point of consumption (including inbound, outbound,

internal and external movements) for the purpose

of conforming to customer requirements (Coyle

et al.)

A Generalization of a Typical Logistics System

Raw Materials Storage

Plant 1

Plant 3 Plant 2

Manufacturing

Distribution Center

Distribution Center

Distribution Center

Finished Goods Distribution

A

C B

Markets

Concluding Remarks

Management field will be driven by:

» Institutionalisation of the SCM perspective

» Increasing emphasis on supply chain relationships

» Increasing emphasis on the long-term view

» Use of information technology to enhance supply chain

communications

» An increasing focus which looks “outward” toward the

intricacies of supplier and customer relations

END