logistics and supply chain management
DESCRIPTION
TRANSCRIPT
LOGISTICS AND
SUPPLY CHAIN MANAGEMENT
“Humble, Back Office Tasks”
AGENDA• INTRODUCTION
• BUILDING BLOCKS– Newfound Importance
– Inventory Management• Reasons for Holding
• Holding Costs
• Reducing
• Inventory Savings
AGENDA• BUILDING BLOCKS
– Transportation and Fulfillment• Essentials
• Third Party Logistics (3PL)
– Order, Invoices, Payments
AGENDA• SUPPLY CHAIN MANAGEMENT
– What It Is• Supply Chains
• Definition
– Implementation Schemes• ECR
• Rapid Response
AGENDA• PUTTING IT ALL TOGETHER
– Efficiency versus Effectiveness
– Why Now
• Summary and Conclusions
INTRODUCTION
• Traditionally – Flow
– Physical Goods
– Distribution
– Finished Goods
INTRODUCTION
• Now, SCM– Store and Flow
– Goods, Services, Related Information
INTRODUCTION
• Now, SCM– Extended Channel
• Supply• Production• Distribution• Consumption• Disposal
INTRODUCTION
• Now, SCM– Inventory
• Raw Materials
• Work in Process
• Finished Goods
INTRODUCTION• Now, SCM
– Activities• Transportation• Order Processing• Materials Handling and Packaging• Warehousing• Forecasting• Other
INTRODUCTION• Now, SCM
– Focus• Cost
• Investment
• Service
• Profit
AGENDA• BUILDING BLOCKS
– Newfound Importance
– Inventory Management• Reasons for Holding
• Holding Costs
• Reducing
• Inventory Savings
BUILDING BLOCKS
• Newfound Importance– Quality
– Effectiveness
– Efficiency
BUILDING BLOCKS
• Inventory Management– Reasons for Holding
• Demand surges• Service• Gaps
– temporal– spatial
BUILDING BLOCKS
• Inventory Management– Reasons for Holding
• Uncertainty• Economies
– production– distribution– purchasing– financing
BUILDING BLOCKS
• Inventory Management– Holding Costs (% and $)
• Capital
• Storage
• Obsolescence
• Quality
BUILDING BLOCKS
• Inventory Management– Reducing Inventory
• “Obvious”– Avoid FISH– Lengthen PLC– Find faster vendors– Locate cheaper warehouse
BUILDING BLOCKS
• Inventory Management– Reducing Inventory
• “Obvious”– Avoid FISH– Lengthen PLC– Find faster vendors– Locate cheaper warehouse
BUILDING BLOCKS
• Inventory Management– Reducing Inventory
• “Less Obvious”– Forecasting– Alter production– Simplify– Modularize– Routinize
BUILDING BLOCKS
• Inventory Management– Inventory Savings
• Pseudo– Moving the bubble– Sacrifice service– Sacrifice profits
BUILDING BLOCKS
• Inventory Management– Inventory Savings
• Real– (moving from) Push– (moving to) Pull
BUILDING BLOCKS
• Fulfillment and Transportation– “Humble tasks”
BUILDING BLOCKS
• Fulfillment and Transportation– Essentials
• Transportation
• Warehousing– (past was) storage– (future is) movement
BUILDING BLOCKS
• Fulfillment and Transportation– Essentials
• Distribution Centers• Cross Docking
– Production– Transportation– Distribution– Supply
BUILDING BLOCKS
• Fulfillment and Transportation– 3PL
• More than transportation
• All aspects of fulfillment
BUILDING BLOCKS• Fulfillment and Transportation
– 3PL
BUILDING BLOCKS
• Orders, Invoices, Payments– Reduction
• Human intervention
• Documents
• Time
• Errors
• Money
BUILDING BLOCKS
• Orders, Invoices, Payments– IT/IS
• ERP
• EDI– VAN– Web-enabled
AGENDA• SUPPLY CHAIN MANAGEMENT
– What It Is• Supply Chains
• Definition
– Implementation Schemes• ECR
• Rapid Response
SUPPLY CHAIN MANAGEMENT
• What It Is– Extended Enterprise
• Set of entities
• Collective action
• Create value
SUPPLY CHAIN MANAGEMENT• What It Is
– Extended Enterprise
Suppliers
Suppliers
Retailers
Retailers
Manufacturer
Consumers
Consumers
Supply Chain Enablers
SUPPLY CHAIN MANAGEMENT• What It Is
– Definition• Organizing concept• Marketing concept• Logistics• Operations• IT/IS• ABC/ABM• Channel management
SUPPLY CHAIN MANAGEMENT
• Implementation Schemes– Efficient Consumer Response
• Foci– Continuous replenishment– Efficient pricing and promotion– Changes in product introduction– Changes in merchandising– Knowledgeable consumers
SUPPLY CHAIN MANAGEMENT
• Implementation Schemes– Efficient Consumer Response
• Efficiency – Aggregation– Categories– Not items
SUPPLY CHAIN MANAGEMENT
• Implementation Schemes– Efficient Consumer Response
• Continuous Replenishment – ABC/ABM– KBM– VMI
SUPPLY CHAIN MANAGEMENT
• Implementation Schemes– Efficient Consumer Response
• Obstacles – Standards– Coherence
SUPPLY CHAIN MANAGEMENT
• Implementation Schemes– Quick Response
• Similarities– Pull– Cooperation– KBM– FISH– FMCG
SUPPLY CHAIN MANAGEMENT
• Implementation Schemes– Quick Response
• Differences– Postponement– Less about merchandising– More about manufacturing– Integration
AGENDA• PUTTING IT ALL TOGETHER
– Efficiency versus Effectiveness
– Why Now
PUTTING IT ALL TOGETHER
• Efficiency versus Responsiveness– Brand Dichotomy
• Functional
• Innovative
PUTTING IT ALL TOGETHER• Efficiency versus Responsiveness
– Brand Dichotomy
PUTTING IT ALL TOGETHER• Efficiency versus Responsiveness
– Brand Dichotomy
PUTTING IT ALL TOGETHER
• Why Now– Pressure
• Competition
• Margin
• Turnover
PUTTING IT ALL TOGETHER
• Why Now– IT/IS
– ABC/ABM
– Culture
– Standards
– Sustainable Competitive Advantage
SUMMARY AND CONCLUSIONS