1. McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
Recognize the relationship between marketing channels, logistics, and supply chain management.
LO1
Describe how a company’s supply chain aligns with its marketing strategy.
LO2
16-2

3. Describe the key logistics functions in a supply chain.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 16, YOU SHOULD BE ABLE TO:
Identify the major logistics cost and customer service factors that managers consider when making supply chain decisions.
LO3
LO4
Describe the key logistics functions in a supply chain.
16-3

4. ACER USES ADVANCED SUPPLY CHAIN TECHNOLOGY
TO SERVE CUSTOMERS IN EUROPE
16-4

5. Recognize the relationship between marketing channels, logistics, and supply chain management.5

6. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT KEY CONCEPTS
Cost-Effective Flow
Customer Requirements = Service
16-6

7. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT KEY CONCEPTS
Supply Chain Management
16-7

8. FIGURE Relating logistics management and supply chain management to supplier networks and marketing channels
16-8

9. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT KEY CONCEPTS
FIGURE The automotive supply chain includes thousands of firms that provide the 5,000 or so parts in a typical car
16-9

10. Describe how a company’s supply chain aligns with its marketing strategy.
LO2 10

11. 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

12. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT SUPPLY CHAIN MANAGEMENT AND MARKETING STRATEGY
Aligning a Supply Chain with Marketing Strategy
Dell: A Responsive Supply Chain
Wal-Mart: An Efficient Supply Chain
7-Eleven: Effective Use of Information
Technology
16-12

13. Identify the major logistics cost and customer service factors that managers consider when making supply chain decisions.
LO3 13

14. INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN
Information’s Role in Supply Chain Responsiveness and Efficiency
Electronic Data Interchanges (EDIs)
Extranet
16-14

15. INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN
Total Logistics Cost Concept
Customer Service Concept
16-15

16. FIGURE How total logistics cost varies with the number of warehouses used based on inventory costs and transportation costs
16-16

17. FIGURE Supply chain managers balance total logistics cost factors against customer service factors
16-17

18. Time Lead Time Quick Response Efficient Consumer Response
INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN
CUSTOMER SERVICE FACTORS
LO3
Time
Lead Time
Order Cycle Time
Replenishment Time
Quick Response
Efficient Consumer Response

19. Dependability Communication Convenience
INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN
CUSTOMER SERVICE FACTORS
LO3
Dependability
Communication
Convenience
16-19

20. INFORMATION AND LOGISTICS MANAGEMENT IN A CUSTOMER-DRIVEN SUPPLY CHAIN
CUSTOMER SERVICE STANDARDS
LO3
16-20

21. Out-of-Stock (%) and On-Time-Delivery (%)
USING MARKETING DASHBOARDS Diagnosing Out-of-Stocks and On-Time Delivery for Organic Produce
Out-of-Stock (%) and On-Time-Delivery (%)
16-21

22. Describe the key logistics functions in a supply chain.22

23. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
TRANSPORTATION
LO4
Third-Party Logistics
Providers
Service Criteria
Costs
Dependability
Time
Accessibility
Capability
Frequency
16-23

24. FIGURE 16-5 Advantages and disadvantages of five modes of transportation
16-24

25. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
TRANSPORTATION
LO4
Railroads
Intermodal Transportation
Piggy-Back or Trailer on Flatcar (TOFC)
Containers
16-25

26. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
TRANSPORTATION
LO4
Motor Carriers
Air Carriers and Express Companies
Freight Forwarders/ Express Companies
16-26

27. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
TRANSPORTATION
LO4
Pipelines
Water
16-27

28. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
WAREHOUSING AND MATERIALS HANDLING
LO4
Storage Warehouses
Distribution Centers
Materials Handling
16-28

29. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
ORDER PROCESSING
LO4
Order Processing
Backorder
EDI/EFT
16-29

30. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
INVENTORY MANAGEMENT
LO4
Reasons for Inventory
Inventory Costs
Capital Costs
Storage Costs
Inventory Service Costs
Risk Costs
16-30

31. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
INVENTORY MANAGEMENT
LO4
Supply Chain Inventory Strategies
Just-in-Time (JIT) Concept
Vendor-Managed Inventory (VMI)
16-31

32. CLOSING THE LOOP: REVERSE LOGISTICS
16-32