Download - Supply Chain Lect1
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Activity frActivity fr
Evolution of Supply Chain Management
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Supply Chain Schematic
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Supply Chain Features
Functions: Logistics, Purchasing, Marketing,Operations, . . .
Institutions: Manufacturers, Retailers, Logistics
Service Providers, . . .
Behaviors
Power/Dependence
Conflict Competition
Cooperation, e.g. sharing information
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Physical Promotional Financial
Logistics Marketing Finance and
Accounting
Service Sales Stimulate Sales Pay Bills
Transportation Warehousing
Inventory
Management
Advertising Personnel Selling
Sales Promotion
Customer Service
Invoicing Payment
Supply Chain Flows
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SCM
Logistics
SCM
Logistics
Logistics
SCM SC
MLogistics
Traditionalist
Unionis
t
Re-labeling
Intersectionist
SCM versus Logistics: FourPerspectives
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Logistics
SCM
Logistics hires supply chain analysts to focuson cross-functional, inter-organizational issues.
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The logistics community has tended
to view supply chain management aslogistics outside the firm.
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SCM
Logistics
SCM
Logistics
Logistics
SCM SC
MLogistics
Traditionalist
Unionis
t
Re-labeling
Intersectionist
SCM versus Logistics: FourPerspectives
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Logistics
SCM
Logistics hires supply chain analysts to focuson cross-functional, inter-organizational issues.
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The logistics community has tended
to view supply chain management aslogistics outside the firm.
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Logistics
SCM
Logistics Manager Supply Chain Manager
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do not distinguish between logistics
and supply chain management (SCM).
supply chain = logistics network
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SC
MLogistics
SCM = purchasing + logistics + operations + marketing + . . .
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SCM: management of 8 key businessprocesses:
1. Customer relationship management2. Customer service management3. Demand management4. Order fulfillment
5. Manufacturing flow management6. Procurement7. Product development & commercialization8. Returns
Stock & Lambert (2001)
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Mentzer et al. (2001)
all the traditional business functionsshould be included1. Marketing & Sales2. Research & development
3. Forecasting4. Production5. Purchasing6. Logistics
7. Information systems8. Finance9. Customer service
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SCM Logistics
SCM staff function; internal consultants
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Intersectionist
SCM considers strategic, integrative
elements from several functional areas(logistics, purchasing, operations, andmarketing). However, it does not getinvolved in tactical elements, such as
picking orders in a warehouse.
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Logistics Defined
Logistics
controlliof raw
Supply Chain Management Defined
SCM is th
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The Logistics/SC Mission
Getti
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A Revised Strategy is Generating
Great Top Management InterestHistorical perspective of distribution:
The last frontier ofcost
economies
The contemporary view:
Distribution is a new frontier fordemand generationa competitiveweapon.
Peter Drucker, 1962
Both views are nowimportant!
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Customers
Transportation
Inventory
or supply source
Customer order processing (and
transmittal)
Customers
Transportation
Inventory
or supply source
Customer order processing (and
transmittal)
Critical Customer ServiceLoop
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Costs are
Customers
Significance of Logistics
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Scope of the Supply Chain for MostFirms
Physical distributionPhysical supply(Materials management)
Business logistics
Sources ofsupply
Plants/operations
Customers
TransportationInventory maintenanceOrder processingAcquisition
Protective packagingWarehousingMaterials handlingInformation maintenance
TransportationInventory maintenanceOrder processingProduct scheduling
Protective packagingWarehousingMaterials handlingInformation maintenance
Focus firms internal supply chain
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Primary
-Setting customer service goals-Transportation-Inventory management- Location
Secondary, or supporting- Warehousing-Materials handling
-Acquisition (purchasing)-Protective packaging-Product scheduling-Order processing
Key Activities/Processes
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Reality of SC Scope
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SUPPLYCHAIN
MANAGEMENT
In
terfuncti
onalcoordin
atio
nInt
erorg
anizationa
lcoord
in
ation
Activity and processadministration
The Multi-Dimensions of SC
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PLAN
NING
ORGA
NIZING
CONTROLLING
Transport Strategy
Transport fundamentals
Transport decisionsCustomer
service goals
The product
Logistics service Ord. proc. & info. sys.
Inventory Strategy
Forecasting
Inventory decisions
Purchasing and supply
scheduling decisions
Storage fundamentals
Storage decisions
Location Strategy
Location decisions
The network planning process
PLAN
NING
ORGA
NIZING
CONTROLLING
Transport Strategy
Transport fundamentals
Transport decisionsCustomer
service goals
The product
Logistics service Ord. proc. & info. sys.
Inventory Strategy
Forecasting
Inventory decisions
Purchasing and supply
scheduling decisions
Storage fundamentals
Storage decisions
Location Strategy
Location decisions
The network planning process
Study Framework
The focus ishere
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PRODUCTION/OPERATIONSSample activities:Quality controlDetailed productionscheduling
Equipmentmaint.Capacity planningWork measurement
&standards
LOGISTICSSampleactivities:TransportInventory
Orderprocessing
Materials
handling
Interface
activities:Productscheduling
Plantlocation
Purchasing
MARKETINGSampleactivities:PromotionMarketresearch
Productmix
Sales forcemanagement
Interfaceactivities:
Customerservicestandards
PricingPackagingRetaillocation
Production-logisticsinterface
Marketing-logisticsinterface
Relationship of Logistics toMarketing and Production
Internal Supply Chain
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Relationship of Logistics to MarketingProduct
PricePromotion
Place-
Customerservice levels
Inventorycarrying
costsLot
quantitycosts
Orderprocessing
and
information
Transport costs
Warehousing costs
Ma
rk
etin
g
Lo
gi
st
ics
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Relationship of Logistics to Production
Coordinates through scheduling and strategymake-to-order or make-to-stock
An integral part of the supply chain
Affects total response time for customers
Shares activities such as inventory planningCosts are in tradeoff
Production lot quantities affect inventory levels andtransportation efficiency
Production response affects transportation costsand customer service
Production and warehouse location are interrelated
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Contemporary Logistics Terms
Value stream/logistics processQuick response and flexible manufacturingMass customization
Supply chain management/collaborativelogisticsReverse logisticsService logisticsContinuous replenishmentLean logisticsIntegrated logistics