1. L – 3 Network

2. Channel Design & Management Do your channel partners proactively search out your prospective customers and have the skills needed to close the business? Do your channel partners have the reach you need to fully participate in your chosen markets? Does your solution form a strategic part of your partners business? How quickly can you recruit effective new partners? How do you minimize channel conflicts without reducing market coverage? What performance data will you need to collect from the channel and how? How will you use your performance data to enhance the effectiveness of your channel partners and create a better service for your customers? Which partner programs will work for you and which won’t

3. MARKETING / LOGISTICS MANAGEMENT CONCEPTS CUSTOMER SATISFACTION 1.SUPPLIER 2.INTERMEDIATE CUSTOMERS 3.FINAL CUSTOMERS INTEGRATED EFFORTS 1.PRODUCT 2.PRICE 3.PLACE – DISTRIBUTION 4.PROMOTION COMPANY PROFITS 1.MAXIMUM LONG TERM PROFITS 2.LOWEST TOTAL COST GIVEN ACCEPTABLE LEVEL OF CS.

4. COST TRADE OFF REQUIRED IN MARKETING AND LOGISITICS PRODUCT PLACE PRICE PLACE/ CS INV. CARRYING COST INV. CARRYING COST INV CARRYING COST INV CARRYING COST MARKETING ORDER PROCESSING AND INFO COST LOGISITCS

5. LOGISTIC MODELS 1.A ) TRADITIONAL MODEL VENDOR MFG PLANTDEALER

6. LOGISTIC MODELS 1.B ) GENERIC SCM VENDOR 1 MFG PLANTDISTRIBUTOR 1 VENDOR 2 DISTRIBUTOR 2 DEALER 1 DEALER 2 CUSTOMER 1 CUSTOMER 2

7. LOGISTIC MODELS 2 ) DELL MODEL VENDOR 1 DELL VENDOR 2 CUSTOMER WAREHOUSE ORDER TO VENDOR ORDER

8. LOGISTIC MODELS C ) HUB AND SPOKE MODEL VENDOR 1 O 1 VENDOR 2 DC O 2 O3

9. LOGISTIC MODELS 4 ) J I T / SEQUENCE VENDOR PRODUCTION FLOOR / ASSEMBLY OUT BOUND

10. LOGISTIC MODELS 5 ) DEALER NETWORK MODEL MANUF C & F AGENT WARE HOUSE RETAILER CONSUMER

11. SCM is the network of organization that are involved through upstream and down stream linkage in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer SUPPLY CHAIN MANAGEMENT

12. Logistics Management / SCM Logistics ManagementSCM Focus Optimal flow with in the organizationRecognizes that internal integration by itself is not sufficient Time Ensures an opportunityCreates an opportunity Place Satisfy a marketCreates a market Quantity ReachIdentify Price Ensures cost efficiencyCompetitiveness Quality Customer Service levelProduction level Physical bondingMental, emotional bonding Free flow of product and informationCapacity to allow free flow Joins the echelonsCreates the echelons

13. INTEGRATED SCM INFLOW TIER 2TIER 1 MANUFACTURING CUSTOMER INBOUND PURCHASELOGISTICS MKTG & SERVICE PRODUCT FLOW PRODUCTIONR & DFINANCE Customer relation mngt., Demand mngt, order fulfillment, manuf flow mngt, supplier relation mngt, product devl, return mngt

14. Integrated SCM Scheduling Vendor Consolidation Compliance ( Based on vendors production capacity In bound logistics KAN BAN SYSTEM ( REPLINSHIPMENT SYSTEM ) Shelf Stock BufferLine Stock Assembly Material Kan Ban Trigger

15. NEW RULES…… Capabilities and competencies that they are competent Create superior value for the customer by managing the core competency like product fulfillment, supplier development, order fulfillment, supplier development, customer management Inbound outbound logistics Increase on service level rather than commodity Competitive advantage = Product excellence x process excellence Responsiveness, Reliability and relationship

16. LEARNING CASE STUDY