SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENTKEY CONCEPTS LO1 Supply Chain Supply Chain Management The Automotive Supply Chain 16-4... SIGNIFICANCE OF SUPPLY CHAIN AND LOGI
Trang 1McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc All Rights Reserved.
Trang 2LO1 Recognize the relationship between
marketing channels, logistics, and supply chain management.
Describe how a company’s supply chain aligns with its marketing
strategy.
LO2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
16-2
Trang 3LO3 Identify the major logistics cost and
customer service factors that managers consider when making supply chain decisions.
Describe the key logistics functions in
a supply chain.
LO4
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
16-3
Trang 4SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT
KEY CONCEPTS
LO1
Supply Chain
Supply Chain Management
The Automotive Supply Chain
16-4
Trang 5SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT
Trang 6FIGURE 16-1 Relating logistics
management and supply chain management
to supplier networks and marketing
channels
16-6
Trang 7The Supply Chain
Trang 8You are here
Trang 9FIGURE 16-2 The automotive supply chain
includes thousands of firms that provide the
5,000 or so parts in a typical car
16-9
Trang 10FIGURE 16-A Paint industry supply chain
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Trang 11SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT
SUPPLY CHAIN MANAGEMENT AND
MARKETING STRATEGY
LO2
Aligning a Supply Chain
with Marketing Strategy
• Understand the Customer
• Understand the Supply Chain
• Harmonize the Supply Chain with the Marketing Strategy
16-11
Trang 12 Aligning a Supply Chain
with Marketing Strategy
• Wal-Mart: An Efficient Supply Chain
• Dell: A Responsive Supply Chain
SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT
SUPPLY CHAIN MANAGEMENT AND
MARKETING STRATEGY
LO2
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Trang 13INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN
LO3
Information’s Role in Supply Chain
Responsiveness and Efficiency
• Extranet
• Electronic Data Interchanges (EDIs)
16-13
Trang 14INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN
LO3
Total Logistics Cost Concept
Customer Service Concept
16-15
Trang 15FIGURE 16-3 How total logistics cost varies
with the number of warehouses used based
on inventory costs and transportation costs
16-17
Trang 16Slide 16-21
OBJECTIVE OF INFORMATION
AND LOGISTICS MANAGEMENT
IN A SUPPLY CHAIN
• Customer Service Concept
– Customer Service – ability to satisfy users in
terms of time, dependability,
communication, and convenience
Trang 17Slide 16-21
OBJECTIVE OF INFORMATION AND LOGISTICS MANAGEMENT
IN A SUPPLY CHAIN
Time
• Lead Time (Order Cycle or Replenishment Time)
•Recognition of need to order
•Order transmittal
•Order processing
•Documentation
•Transportation
• Quick Response or Efficient Consumer Response
•Reduce retailer’s delivery time
Trang 18OBJECTIVE OF INFORMATION AND LOGISTICS MANAGEMENT
IN A SUPPLY CHAIN
• Customer Service Concept, cont…
Dependability – consistency of replenishment and has
3 elements: consistent lead time, safe delivery, and
complete delivery
Communication – two-way link between buyer and
seller using status reports to monitor service and anticipate future needs
Convenience – minimum effort on part of buyer in doing business and seller must remove unnecessary barriers
Trang 19Slide 16-25
OBJECTIVE OF INFORMATION
AND LOGISTICS MANAGEMENT
IN A SUPPLY CHAIN
• Customer Service Standards
– Firms develop set of written standards that
serve as objective and provide benchmark
against which results are measured
– Information is collected on customers’ needs
and competitors’ practices to establish
standards and ongoing monitoring programs
Trang 20FIGURE 16-4 Supply chain managers
balance total logistics cost factors against
customer service factors
16-22
Trang 21 Dependability
Communication
Convenience
INFORMATION AND LOGISTICS MANAGEMENT
IN A CUSTOMER-DRIVEN SUPPLY CHAIN
CUSTOMER SERVICE FACTORS
LO3
16-24
Trang 22INFORMATION AND LOGISTICS MANAGEMENT
IN A CUSTOMER-DRIVEN SUPPLY CHAIN
CUSTOMER SERVICE STANDARDS
LO3
16-25
Trang 23 Third-Party Logistics Providers
Trang 24Slide 16-29
KEY LOGISTICS FUNCTIONS IN
A SUPPLY CHAIN
• Third-Party Logistics Providers – provide
most or all of logistics functions of
manufacturers, suppliers and distributors
– Transportation
– Warehousing an materials handling
– Order processing
– Inventory management
Trang 27Slide 16-41
CLOSING THE LOOP:
REVERSE LOGISTICS
• Reverse Logistics – process of reclaiming
recyclable and reusable materials, returns, and
reworks from point of consumption or use for
repair, remanufacturing, redistribution, or
disposal
– Ecological and economical
Trang 29KEY LOGISTICS FUNCTIONS
Trang 30KEY LOGISTICS FUNCTIONS
Trang 31KEY LOGISTICS FUNCTIONS
Trang 32KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN WAREHOUSING AND MATERIALS HANDLING
Trang 33FIGURE 16-5 Advantages and
disadvantages of five modes of
transportation
16-37
Trang 34KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN ORDER PROCESSING
Trang 35Slide 16-39
Supply Chain Inventory Strategies
KEY LOGISTICS FUNCTIONS IN
A SUPPLY CHAIN
• Inventory Management
• Just-In-Time (JIT) Concept
• Vendor-Managed Inventory (VMI)
Trang 36– Inventory checked for availability
– If out of stock, backorder is created
– Customer credit checked, all documentation
prepared, transportation arranged, and
order confirmation sent
Trang 37KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN INVENTORY MANAGEMENT
LO4
Reasons for Inventory
• Capital Costs
• Inventory Service Costs
Inventory Costs
• Storage Costs
• Risk Costs
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Trang 38KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN INVENTORY MANAGEMENT
LO4
Supply Chain Inventory Strategies
• Just-in-Time (JIT) Concept
• Vendor-Managed Inventory (VMI)
16-42
Trang 39CLOSING THE LOOP:
REVERSE LOGISTICS
LO4
Reverse Logistics
16-43
Trang 40Logistics consists of 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 cost
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Trang 41Logistics Management
Logistics management is 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.
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Trang 42Supply Chain
A supply chain consists of a
sequence of firms that perform
activities required to create and
deliver a good or service to
consumers or industrial users
16-46
Trang 43Supply Chain Management
Supply chain management
is 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 consumers
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Trang 44Electronic Data Interchanges (EDIs)
Electronic data interchanges
(EDIs) combine proprietary
computer and telecommunication
technologies to exchange
electronic invoices, payments,
and information among suppliers,
manufacturers, and retailers
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Trang 45Total Logistics Cost
Total logistics cost consists of
expenses associated with
transportation, materials handling
and warehousing, inventory,
stockouts (being out of inventory), order processing, and return
goods handling
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Trang 46Customer Service
Customer service is the ability
of logistics management to satisfy users in terms of time,
dependability, communication, and convenience
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Trang 47Lead Time
Lead time is the lag from ordering
an item until it is received and
ready for use or sale Also called
order cycle time or replenishment
time.
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Trang 48Quick Response
Quick response, in inventory
management systems, are designed to
reduce the retailer’s lead time for
receiving merchandise which then lowers
a retailer’s inventory investment, improves
customer service levels, and reduces
logistic expenses Also called efficient
consumer response.
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Trang 49Efficient Consumer Response
Efficient consumer response, in
inventory management systems, are
designed to reduce the retailer’s lead
time for receiving merchandise which
then lowers a retailer’s inventory
investment, improves customer service
levels, and reduces logistic expenses Also
called quick response.
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Trang 50Third-Party Logistics Providers
Third-party logistics providers
are firms that perform most or
all of the logistics functions that
manufacturers, suppliers, and
distributors would normally
perform themselves
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Trang 51Just-In-Time (JIT) Concept
The just-in-time (JIT) concept
is an inventory supply system that operates with very low inventories and requires fast, on-time delivery
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Trang 52Vendor-Managed Inventory (VMI)
Vendor-managed inventory is
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
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Trang 53Reverse Logistics
Reverse logistics is a process
of reclaiming recyclable and
reusable materials, returns, and
reworks from the point of
consumption or use for repair,
remanufacturing, redistribution,
or disposal
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