SUPPLY CHAIN AND LOGISTICS MANAGEMENT Sales and Distribution Management Marketing 3345

SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT KEY CONCEPTS  Logistics – getting the right amount of the right products to the right place at the right time at the lowest possible cost. Logistics – getting the right amount of the right products to the right place at the right time at the lowest possible cost.  Logistics Management – the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods from the point of origin to the point of consumption to satisfy customers requirements. Logistics Management – the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods from the point of origin to the point of consumption to satisfy customers requirements.

SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT KEY CONCEPTS  Supply Chain Supply Chain  Supply Chain Management Supply Chain Management  The Automotive Supply Chain

Relating logistics management and supply chain management to supplier networks and marketing channels

The automotive supply chain includes thousands of firms that provide the 5,000 or so parts in a typical car

Paint industry supply chain

SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT SUPPLY CHAIN MANAGEMENT AND MARKETING STRATEGY  Aligning a Supply Chain with Marketing Strategy Understand the Customer Understand the Supply Chain Harmonize the Supply Chain with the Marketing Strategy

 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

INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN  Information’s Role in Supply Chain Responsiveness and Efficiency Extranet Electronic Data Interchanges (EDIs) Electronic Data Interchanges (EDIs)

INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN  Total Logistics Cost Concept Total Logistics Cost Concept  Customer Service Concept Customer Service Concept

How total logistics cost varies with the number of warehouses used based on inventory costs and transportation costs

Supply chain managers balance total logistics cost factors against customer service factors

INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN CUSTOMER SERVICE FACTORS  Time Lead Time  Order Cycle Time  Replenishment Time Quick Response Efficient Consumer Response

 Dependability  Communication  Convenience INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN CUSTOMER SERVICE FACTORS

INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN CUSTOMER SERVICE STANDARDS

USING MARKETING DASHBOARDS Diagnosing Out-of-Stocks and On-Time Delivery for Organic Produce Out-of-Stock (%) and On-Time-Delivery (%)

 Third-Party Logistics Providers Third-Party Logistics Providers Costs  Service Criteria Dependability Accessibility KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN TRANSPORTATION Time Capability Frequency

UPS and Ryder What are third-party logistics providers?

Advantages and disadvantages of five modes of transportation

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN TRANSPORTATION  Railroads Containers Intermodal Transportation Piggy-Back or Trailer on Flatcar (TOFC)

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN TRANSPORTATION  Motor Carriers  Air Carriers and Express Companies  Freight Forwarders/ Express Companies

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN TRANSPORTATION  Pipelines  Water

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN WAREHOUSING AND MATERIALS HANDLING  Storage Warehouses  Distribution Centers  Materials Handling

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN ORDER PROCESSING  Order Processing Backorder EDI/EFT

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN INVENTORY MANAGEMENT  Reasons for Inventory Capital Costs Inventory Service Costs  Inventory Costs Storage Costs Risk Costs

KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN INVENTORY MANAGEMENT  Supply Chain Inventory Strategies Just-in-Time (JIT) Concept Vendor-Managed Inventory (VMI)

CLOSING THE LOOP: REVERSE LOGISTICS  Reverse Logistics Reverse Logistics

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