01. logistic and supply chain

7/29/2019 01. Logistic and Supply Chain

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Logistic and Supply Chain

Individual ClassSCM

William Budiharsono


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Logistics An activity of managing material flow (as in supply

of physical product) from source (supplier) todistribution center (store facility and distributionpoint) to the stores (retailer). This activity will based

on demand data from customerprocurementsupplier vs. supply data from supplier to retailer.


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Supply Chain Definitions:

o A supply chain is a network of partners who collectively convert a basic

commodity (upstream) into a finished product (downstream) that is

valued by end-customers, and who manage returns at each stage.


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Logistic Vs. Supply Chain Supply chain are actually an integrations of several

logistics operation forming a network of materialand information flow of whole process from rawmaterial to manufacturer to distribution channel to

end user.

In other words, logistic is a part of supply chain.


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Example of Supply Chain Flow


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Tier System in Supply Chain


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Network of Supply Chain


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Case: Confectionary Manufacturer


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Material and Information Flow Material flow from raw material supplier to end-user

are planned and controlled used the demand fromend-user. Forming a network of linked informationthat integrated and interdepended.


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How Logistics and Supply Chain Influence

Organizational Competitiveness

As explained before: a product holds componentsthat supplied through the network. Ease on supplyto production to ensuring product availability in themarket is the key objective of supply chain.

Meeting end-customer demand through supplyingwhat is needed in the form it is needed, when it isneeded, at a competitive cost.


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Hard Objectives Quality (quantities, specifications)

Time (speed, responsiveness)

Cost


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Variability in Hard Objective on time (percentage of orders delivered on time,

and the variability against target);

in full (percentage of orders delivered complete,and the variability against target);

on quality (percentage of defects, and thevariability against target).


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Uncertainty in Supply Chain Nokia Case Study

Proactive: to create the capability in advance to

handle uncertaintyfor example, Toyotas counter-measures.

Reactive: to cope with uncertainty in a focal firmsinternal or external environmentfor example,Nokias response to the fire at Philips.


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Soft Objectives confidence: queries answered promptly,

courteously and efficiently;

security: customers information and propertytreated in a confidential and secure manner.


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Order Winners andQualifiers


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Example for soft objectives


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Logistic Strategy


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Setup Strategy How deliberate are the processes of strategy

setting? These can range from clearly and carefullyplanned to a series of ad hoc decisions taken on aday-to-day basis.

What are the goals of strategy setting? These canrange from a focus on maximizing profit to allowingother business priorities such as sales growth to beincluded.


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Factor in Strategy Evolve

Classical

Accommodate

Systemic


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Aligning Strategy A unique value proposition

A tailored supply chain

Identify the trade-offs

Align logistics processes Continuity

01. logistic and supply chain

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