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  • How does a supply chain make the efficiency / responsiveness tradeoff and position at the appropriate point - using Inventory, Transportation, Facilities, and Information decisions.
  • 1 introduction

    1. 1. Logistics Management Introduction to the Course Jing Yuan Feb, 2008
    2. 2. Introduce Yourself <ul><li>Let’s me know who you are. </li></ul><ul><li>What’s logistics management? </li></ul><ul><li>Supply chain management Vs. logistics management </li></ul><ul><li>… </li></ul>
    3. 3. Outline <ul><li>Introduce yourself </li></ul><ul><li>Who I am </li></ul><ul><li>Course introduction </li></ul><ul><ul><li>Course description </li></ul></ul><ul><ul><li>Learning objectives </li></ul></ul><ul><ul><li>Textbooks </li></ul></ul><ul><ul><li>Grading policy </li></ul></ul><ul><ul><li>S chedules </li></ul></ul>
    4. 4. Outline <ul><li>Introduce yourself </li></ul><ul><li>Who I am </li></ul><ul><li>Course introduction </li></ul><ul><ul><li>Course description </li></ul></ul><ul><ul><li>Learning objectives </li></ul></ul><ul><ul><li>Textbooks </li></ul></ul><ul><ul><li>Grading policy </li></ul></ul><ul><ul><li>S chedule </li></ul></ul>
    5. 5. Course description <ul><li>An introductory course in the analysis, design and operation of logistics and supply chain </li></ul><ul><li>Presented through lectures along with several case studies and experiments </li></ul><ul><li>The lectures consist of nine parts </li></ul>
    6. 6. Learning objectives <ul><li>Knowledge the strategic role of the supply chain </li></ul><ul><li>An understanding of logistic systems & their management problems </li></ul><ul><li>Ability to devise workable solutions in business situations </li></ul>
    7. 7. Textbooks <ul><li>Textbook </li></ul><ul><ul><li>Harrison, A. and Hoek, R. V. (2006) Logistics Management, second edition, 机械工业出版社 </li></ul></ul><ul><li>References (not required) </li></ul><ul><ul><li>Christopher, M. (2006) Logistics and Supply Chain Management: Creating Value-adding Network, third edition, 电子工业出版社 </li></ul></ul><ul><ul><li>张余华,现代物流管理,华中科技出版社, 2006 年。 </li></ul></ul>
    8. 8. Lecture Organization <ul><li>Lecturing </li></ul><ul><li>Videos </li></ul><ul><li>Group exercises </li></ul><ul><li>Case discussion </li></ul><ul><li>Case study presentations </li></ul>
    9. 9. Grading Policy <ul><li>Grading </li></ul><ul><ul><li>Assignment and Quiz 1 0% </li></ul></ul><ul><ul><li>Midterm 2 0% </li></ul></ul><ul><ul><li>Final Project 7 0% </li></ul></ul><ul><li>Midterm </li></ul><ul><ul><li>Case study </li></ul></ul><ul><ul><li>Final presentation </li></ul></ul><ul><li>Final project </li></ul><ul><ul><li>A closed examination held in the last week of term </li></ul></ul>
    10. 10. Schedule <ul><li>Lectures </li></ul><ul><ul><li>14 weeks </li></ul></ul><ul><li>Case study presentations </li></ul><ul><ul><li>2 weeks </li></ul></ul><ul><li>Experiments </li></ul><ul><ul><li>2 weeks </li></ul></ul>
    11. 11. Logistics and supply chain Logistics Management
    12. 12. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4
    13. 13. <ul><li>Seven-eleven convenience store </li></ul><ul><ul><li>Describe the key logistics processes at 7-11. </li></ul></ul><ul><ul><li>What differences between the early reform and the regional distribution center at 7-11. </li></ul></ul><ul><ul><li>What do you think are the main logistics challenges in running the 7-11 operation. </li></ul></ul>Case study
    14. 14. Case study Centralized distribution No distribution center Built its own distribution center---joint distribution First stage Second stage Third stage
    15. 15. Key issues 1 What is supply chain, and how is it structured? 2 What is the purpose of a supply chain?
    16. 17. The Supply Chain Concept <ul><li>Development of the Concept </li></ul><ul><ul><li>Total systems cost - remains an important element of logistics analysis. </li></ul></ul><ul><ul><li>Outbound logistics – the warehousing and distribution of finished goods. </li></ul></ul><ul><ul><li>Inbound logistics – the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. </li></ul></ul><ul><ul><li>Value chain analysis integrated logistics activities. </li></ul></ul>
    17. 18. Business Logistics in a Firm
    18. 19. <ul><li>A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage. </li></ul>The Supply Chain management Concept Definition Planning and controlling all of the processes that link partners in a supply chain together in order to serve needs of the end-customer.
    19. 20. Supply chain: structure and tiering The process starts with several external suppliers that move milk, cardboard, and plastic to the processing plant. After the milk is processed and packaged, it is delivered to retailers, who sell it to customers. The alternative delivery system is delivery from a warehouse directly to customers’ homes.
    20. 21. Supply chain: structure and tiering Supply chain can be fairly complex. The supply chain for a car manufacturer includes hundreds of suppliers, dozens of manufacturing plants (for parts) and assembly plants (for cars), dealers, direct business customers, wholesalers, customers, and support functions such as product engineering and purchasing.
    21. 22. Logistics concept Definition The task of coordinating material flow and information flow across the supply chain.
    22. 23. Activity 1 Wheat Flour Praline Wafers Chocolate Confectionery manufacturer Packing Creamery (milk) Cocoa beans Sugar Vegetable oil Cocoa butter Lecithin Emulsifiers, Salt, etc. Printed materials Aluminium Fiberboard Multiple retailers Wholesalers Others (hospital etc.) End customers
    23. 24. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4
    24. 25. Key issue 1 What is the relationship between material flow and information flow?
    25. 26. Case study: Seven-eleven
    26. 27. Case study: Seven-eleven’s distribution strategy <ul><li>Delivery arrives from over 200 plants </li></ul><ul><li>Delivery is cross docked at DC (over 80 DCs for food) </li></ul><ul><li>Food DCs store no inventory </li></ul><ul><li>Combined delivery system: frozen foods, chilled foods, room temperature and hot foods </li></ul><ul><li>11 truck visits per store per day (compared to 70 in 1974) </li></ul><ul><li>No supplier (not even coke!) delivers direct </li></ul>
    27. 28. Case study: Seven-eleven’s Information Strategy <ul><li>Quick access to up to date information (as contrasts with data) </li></ul><ul><ul><li>High speed data network linking stores, headquarters, DCs and suppliers </li></ul></ul><ul><ul><li>Store hardware </li></ul></ul><ul><ul><ul><li>Store computer </li></ul></ul></ul><ul><ul><ul><li>POS registers linked to store computer </li></ul></ul></ul><ul><ul><ul><li>Graphic Order Terminals </li></ul></ul></ul><ul><ul><ul><li>Scanner terminals for receiving </li></ul></ul></ul>
    28. 29. Integrated Logistics Management
    29. 30. Material and information flow
    30. 31. Material and information flow Material flow Information flow
    31. 32. Activity 2 <ul><li>Describe the material and information flow in the supply network affecting one of the major products in Activity 1. </li></ul>
    32. 33. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4
    33. 34. Key issues 1 How do products win orders in the marketplace? 2 How does logistics contribute to competitive advantage?
    34. 35. Creating logistics advantage: three basic ways Logistics advantage quality time cost
    35. 36. Creating logistics advantage: controlling variability <ul><li>Variability undermines the dependability with which a product or service meets target. </li></ul>
    36. 37. Order winners and order qualifiers Order winners are factors that directly and significantly help products to win orders in the marketplace. Customers regard such factors as key reasons for buying that product or services. Different logistics performance objectives Order qualifiers are factors that are regarded by the market as an ‘entry ticket’. Unless the product or service meets basic performance standards, it will not be taken seriously.
    37. 38. Activity 3 <ul><li>Compare the details for characteristics of both household appliance and mobile phone’s product lines. </li></ul><ul><li>Go on to identify the principal order winners and qualifiers for each product. </li></ul>Vs.
    38. 39. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4
    39. 40. The value chain: Linking supply chain and business strategy New Product Development Marketing and Sales Operations Business Strategy New Product Strategy Marketing Strategy Supply Chain Strategy New product Development Marketing and sales Operations Distribution Service Finance, Accounting, Information Technology, Human Resources
    40. 41. How to Achieving Strategic Fit <ul><li>Understanding the Customer </li></ul><ul><ul><li>Lot size </li></ul></ul><ul><ul><li>Response time </li></ul></ul><ul><ul><li>Service level </li></ul></ul><ul><ul><li>Product variety </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Innovation </li></ul></ul>How to measure? Implied Demand Uncertainty
    41. 42. Levels of Implied Demand Uncertainty Detergent High Fashion Low High Price Responsiveness Customer Need Implied Demand Uncertainty
    42. 43. Understanding the Supply Chain: Cost-Responsiveness Efficient Frontier High High Low Low Cost Responsiveness
    43. 44. Achieving Strategic Fit Implied uncertainty spectrum Responsive supply chain Efficient supply chain Certain demand Uncertain demand Responsiveness spectrum Zone of Strategic Fit
    44. 45. Strategic Scope Suppliers Manufacturer Distributor Retailer Customer Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy
    45. 46. Drivers of Supply Chain Performance Efficiency Responsiveness Inventory Transportation Facilities Information Supply chain strategy and structure Drivers Competitive strategy
    46. 47. Considerations for Supply Chain Drivers