LOGISTICS AND SUPPLY CHAIN MANAGEMENT

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LOGISTICS AND SUPPLY CHAIN MANAGEMENT

  1. 1. LOGISTICS AND SUPPLY CHAIN MANAGEMENT “Humble, Back Office Tasks”
  2. 2. AGENDA <ul><li>INTRODUCTION </li></ul><ul><li>BUILDING BLOCKS </li></ul><ul><ul><li>Newfound Importance </li></ul></ul><ul><ul><li>Inventory Management </li></ul></ul><ul><ul><ul><li>Reasons for Holding </li></ul></ul></ul><ul><ul><ul><li>Holding Costs </li></ul></ul></ul><ul><ul><ul><li>Reducing </li></ul></ul></ul><ul><ul><ul><li>Inventory Savings </li></ul></ul></ul>
  3. 3. AGENDA <ul><li>BUILDING BLOCKS </li></ul><ul><ul><li>Transportation and Fulfillment </li></ul></ul><ul><ul><ul><li>Essentials </li></ul></ul></ul><ul><ul><ul><li>Third Party Logistics (3PL) </li></ul></ul></ul><ul><ul><li>Order, Invoices, Payments </li></ul></ul>
  4. 4. AGENDA <ul><li>SUPPLY CHAIN MANAGEMENT </li></ul><ul><ul><li>What It Is </li></ul></ul><ul><ul><ul><li>Supply Chains </li></ul></ul></ul><ul><ul><ul><li>Definition </li></ul></ul></ul><ul><ul><li>Implementation Schemes </li></ul></ul><ul><ul><ul><li>ECR </li></ul></ul></ul><ul><ul><ul><li>Rapid Response </li></ul></ul></ul>
  5. 5. AGENDA <ul><li>PUTTING IT ALL TOGETHER </li></ul><ul><ul><li>Efficiency versus Effectiveness </li></ul></ul><ul><ul><li>Why Now </li></ul></ul><ul><li>Summary and Conclusions </li></ul>
  6. 6. INTRODUCTION <ul><li>Traditionally </li></ul><ul><ul><li>Flow </li></ul></ul><ul><ul><li>Physical Goods </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Finished Goods </li></ul></ul>
  7. 7. INTRODUCTION <ul><li>Now, SCM </li></ul><ul><ul><li>Store and Flow </li></ul></ul><ul><ul><li>Goods, Services, Related Information </li></ul></ul>
  8. 8. INTRODUCTION <ul><li>Now, SCM </li></ul><ul><ul><li>Extended Channel </li></ul></ul><ul><ul><ul><li>Supply </li></ul></ul></ul><ul><ul><ul><li>Production </li></ul></ul></ul><ul><ul><ul><li>Distribution </li></ul></ul></ul><ul><ul><ul><li>Consumption </li></ul></ul></ul><ul><ul><ul><li>Disposal </li></ul></ul></ul>
  9. 9. INTRODUCTION <ul><li>Now, SCM </li></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><ul><li>Raw Materials </li></ul></ul></ul><ul><ul><ul><li>Work in Process </li></ul></ul></ul><ul><ul><ul><li>Finished Goods </li></ul></ul></ul>
  10. 10. INTRODUCTION <ul><li>Now, SCM </li></ul><ul><ul><li>Activities </li></ul></ul><ul><ul><ul><li>Transportation </li></ul></ul></ul><ul><ul><ul><li>Order Processing </li></ul></ul></ul><ul><ul><ul><li>Materials Handling and Packaging </li></ul></ul></ul><ul><ul><ul><li>Warehousing </li></ul></ul></ul><ul><ul><ul><li>Forecasting </li></ul></ul></ul><ul><ul><ul><li>Other </li></ul></ul></ul>
  11. 11. INTRODUCTION <ul><li>Now, SCM </li></ul><ul><ul><li>Focus </li></ul></ul><ul><ul><ul><li>Cost </li></ul></ul></ul><ul><ul><ul><li>Investment </li></ul></ul></ul><ul><ul><ul><li>Service </li></ul></ul></ul><ul><ul><ul><li>Profit </li></ul></ul></ul>
  12. 12. AGENDA <ul><li>BUILDING BLOCKS </li></ul><ul><ul><li>Newfound Importance </li></ul></ul><ul><ul><li>Inventory Management </li></ul></ul><ul><ul><ul><li>Reasons for Holding </li></ul></ul></ul><ul><ul><ul><li>Holding Costs </li></ul></ul></ul><ul><ul><ul><li>Reducing </li></ul></ul></ul><ul><ul><ul><li>Inventory Savings </li></ul></ul></ul>
  13. 13. BUILDING BLOCKS <ul><li>Newfound Importance </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Effectiveness </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul>
  14. 14. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Reasons for Holding </li></ul></ul><ul><ul><ul><li>Demand surges </li></ul></ul></ul><ul><ul><ul><li>Service </li></ul></ul></ul><ul><ul><ul><li>Gaps </li></ul></ul></ul><ul><ul><ul><ul><li>temporal </li></ul></ul></ul></ul><ul><ul><ul><ul><li>spatial </li></ul></ul></ul></ul>
  15. 15. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Reasons for Holding </li></ul></ul><ul><ul><ul><li>Uncertainty </li></ul></ul></ul><ul><ul><ul><li>Economies </li></ul></ul></ul><ul><ul><ul><ul><li>production </li></ul></ul></ul></ul><ul><ul><ul><ul><li>distribution </li></ul></ul></ul></ul><ul><ul><ul><ul><li>purchasing </li></ul></ul></ul></ul><ul><ul><ul><ul><li>financing </li></ul></ul></ul></ul>
  16. 16. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Holding Costs (% and $) </li></ul></ul><ul><ul><ul><li>Capital </li></ul></ul></ul><ul><ul><ul><li>Storage </li></ul></ul></ul><ul><ul><ul><li>Obsolescence </li></ul></ul></ul><ul><ul><ul><li>Quality </li></ul></ul></ul>
  17. 17. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Reducing Inventory </li></ul></ul><ul><ul><ul><li>“ Obvious” </li></ul></ul></ul><ul><ul><ul><ul><li>Avoid FISH </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lengthen PLC </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Find faster vendors </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Locate cheaper warehouse </li></ul></ul></ul></ul>
  18. 18. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Reducing Inventory </li></ul></ul><ul><ul><ul><li>“ Obvious” </li></ul></ul></ul><ul><ul><ul><ul><li>Avoid FISH </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lengthen PLC </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Find faster vendors </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Locate cheaper warehouse </li></ul></ul></ul></ul>
  19. 19. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Reducing Inventory </li></ul></ul><ul><ul><ul><li>“Less Obvious” </li></ul></ul></ul><ul><ul><ul><ul><li>Forecasting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Alter production </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Simplify </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Modularize </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Routinize </li></ul></ul></ul></ul>
  20. 20. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Inventory Savings </li></ul></ul><ul><ul><ul><li>Pseudo </li></ul></ul></ul><ul><ul><ul><ul><li>Moving the bubble </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sacrifice service </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sacrifice profits </li></ul></ul></ul></ul>
  21. 21. BUILDING BLOCKS <ul><li>Inventory Management </li></ul><ul><ul><li>Inventory Savings </li></ul></ul><ul><ul><ul><li>Real </li></ul></ul></ul><ul><ul><ul><ul><li>(moving from) Push </li></ul></ul></ul></ul><ul><ul><ul><ul><li>(moving to) Pull </li></ul></ul></ul></ul>
  22. 22. BUILDING BLOCKS <ul><li>Fulfillment and Transportation </li></ul><ul><ul><li>“Humble tasks” </li></ul></ul>
  23. 23. BUILDING BLOCKS <ul><li>Fulfillment and Transportation </li></ul><ul><ul><li>Essentials </li></ul></ul><ul><ul><ul><li>Transportation </li></ul></ul></ul><ul><ul><ul><li>Warehousing </li></ul></ul></ul><ul><ul><ul><ul><li>(past was) storage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>(future is) movement </li></ul></ul></ul></ul>
  24. 24. BUILDING BLOCKS <ul><li>Fulfillment and Transportation </li></ul><ul><ul><li>Essentials </li></ul></ul><ul><ul><ul><li>Distribution Centers </li></ul></ul></ul><ul><ul><ul><li>Cross Docking </li></ul></ul></ul><ul><ul><ul><ul><li>Production </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Transportation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Distribution </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Supply </li></ul></ul></ul></ul>
  25. 25. BUILDING BLOCKS <ul><li>Fulfillment and Transportation </li></ul><ul><ul><li>3PL </li></ul></ul><ul><ul><ul><li>More than transportation </li></ul></ul></ul><ul><ul><ul><li>All aspects of fulfillment </li></ul></ul></ul>
  26. 26. BUILDING BLOCKS <ul><li>Fulfillment and Transportation </li></ul><ul><ul><li>3PL </li></ul></ul>
  27. 27. BUILDING BLOCKS <ul><li>Orders, Invoices, Payments </li></ul><ul><ul><li>Reduction </li></ul></ul><ul><ul><ul><li>Human intervention </li></ul></ul></ul><ul><ul><ul><li>Documents </li></ul></ul></ul><ul><ul><ul><li>Time </li></ul></ul></ul><ul><ul><ul><li>Errors </li></ul></ul></ul><ul><ul><ul><li>Money </li></ul></ul></ul>
  28. 28. BUILDING BLOCKS <ul><li>Orders, Invoices, Payments </li></ul><ul><ul><li>IT/IS </li></ul></ul><ul><ul><ul><li>ERP </li></ul></ul></ul><ul><ul><ul><li>EDI </li></ul></ul></ul><ul><ul><ul><ul><li>VAN </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Web-enabled </li></ul></ul></ul></ul>
  29. 29. AGENDA <ul><li>SUPPLY CHAIN MANAGEMENT </li></ul><ul><ul><li>What It Is </li></ul></ul><ul><ul><ul><li>Supply Chains </li></ul></ul></ul><ul><ul><ul><li>Definition </li></ul></ul></ul><ul><ul><li>Implementation Schemes </li></ul></ul><ul><ul><ul><li>ECR </li></ul></ul></ul><ul><ul><ul><li>Rapid Response </li></ul></ul></ul>
  30. 30. SUPPLY CHAIN MANAGEMENT <ul><li>What It Is </li></ul><ul><ul><li>Extended Enterprise </li></ul></ul><ul><ul><ul><li>Set of entities </li></ul></ul></ul><ul><ul><ul><li>Collective action </li></ul></ul></ul><ul><ul><ul><li>Create value </li></ul></ul></ul>
  31. 31. SUPPLY CHAIN MANAGEMENT <ul><li>What It Is </li></ul><ul><ul><li>Extended Enterprise </li></ul></ul>
  32. 32. SUPPLY CHAIN MANAGEMENT <ul><li>What It Is </li></ul><ul><ul><li>Definition </li></ul></ul><ul><ul><ul><li>Organizing concept </li></ul></ul></ul><ul><ul><ul><li>Marketing concept </li></ul></ul></ul><ul><ul><ul><li>Logistics </li></ul></ul></ul><ul><ul><ul><li>Operations </li></ul></ul></ul><ul><ul><ul><li>IT/IS </li></ul></ul></ul><ul><ul><ul><li>ABC/ABM </li></ul></ul></ul><ul><ul><ul><li>Channel management </li></ul></ul></ul>
  33. 33. SUPPLY CHAIN MANAGEMENT <ul><li>Implementation Schemes </li></ul><ul><ul><li>Efficient Consumer Response </li></ul></ul><ul><ul><ul><li>Foci </li></ul></ul></ul><ul><ul><ul><ul><li>Continuous replenishment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Efficient pricing and promotion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Changes in product introduction </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Changes in merchandising </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Knowledgeable consumers </li></ul></ul></ul></ul>
  34. 34. SUPPLY CHAIN MANAGEMENT <ul><li>Implementation Schemes </li></ul><ul><ul><li>Efficient Consumer Response </li></ul></ul><ul><ul><ul><li>Efficiency </li></ul></ul></ul><ul><ul><ul><ul><li>Aggregation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Categories </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Not items </li></ul></ul></ul></ul>
  35. 35. SUPPLY CHAIN MANAGEMENT <ul><li>Implementation Schemes </li></ul><ul><ul><li>Efficient Consumer Response </li></ul></ul><ul><ul><ul><li>Continuous Replenishment </li></ul></ul></ul><ul><ul><ul><ul><li>ABC/ABM </li></ul></ul></ul></ul><ul><ul><ul><ul><li>KBM </li></ul></ul></ul></ul><ul><ul><ul><ul><li>VMI </li></ul></ul></ul></ul>
  36. 36. SUPPLY CHAIN MANAGEMENT <ul><li>Implementation Schemes </li></ul><ul><ul><li>Efficient Consumer Response </li></ul></ul><ul><ul><ul><li>Obstacles </li></ul></ul></ul><ul><ul><ul><ul><li>Standards </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Coherence </li></ul></ul></ul></ul>
  37. 37. SUPPLY CHAIN MANAGEMENT <ul><li>Implementation Schemes </li></ul><ul><ul><li>Quick Response </li></ul></ul><ul><ul><ul><li>Similarities </li></ul></ul></ul><ul><ul><ul><ul><li>Pull </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cooperation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>KBM </li></ul></ul></ul></ul><ul><ul><ul><ul><li>FISH </li></ul></ul></ul></ul><ul><ul><ul><ul><li>FMCG </li></ul></ul></ul></ul>
  38. 38. SUPPLY CHAIN MANAGEMENT <ul><li>Implementation Schemes </li></ul><ul><ul><li>Quick Response </li></ul></ul><ul><ul><ul><li>Differences </li></ul></ul></ul><ul><ul><ul><ul><li>Postponement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Less about merchandising </li></ul></ul></ul></ul><ul><ul><ul><ul><li>More about manufacturing </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Integration </li></ul></ul></ul></ul>
  39. 39. AGENDA <ul><li>PUTTING IT ALL TOGETHER </li></ul><ul><ul><li>Efficiency versus Effectiveness </li></ul></ul><ul><ul><li>Why Now </li></ul></ul>
  40. 40. PUTTING IT ALL TOGETHER <ul><li>Efficiency versus Responsiveness </li></ul><ul><ul><li>Brand Dichotomy </li></ul></ul><ul><ul><ul><li>Functional </li></ul></ul></ul><ul><ul><ul><li>Innovative </li></ul></ul></ul>
  41. 41. PUTTING IT ALL TOGETHER <ul><li>Efficiency versus Responsiveness </li></ul><ul><ul><li>Brand Dichotomy </li></ul></ul>
  42. 42. PUTTING IT ALL TOGETHER <ul><li>Efficiency versus Responsiveness </li></ul><ul><ul><li>Brand Dichotomy </li></ul></ul>
  43. 43. PUTTING IT ALL TOGETHER <ul><li>Why Now </li></ul><ul><ul><li>Pressure </li></ul></ul><ul><ul><ul><li>Competition </li></ul></ul></ul><ul><ul><ul><li>Margin </li></ul></ul></ul><ul><ul><ul><li>Turnover </li></ul></ul></ul>
  44. 44. PUTTING IT ALL TOGETHER <ul><li>Why Now </li></ul><ul><ul><li>IT/IS </li></ul></ul><ul><ul><li>ABC/ABM </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Standards </li></ul></ul><ul><ul><li>Sustainable Competitive Advantage </li></ul></ul>
  45. 45. SUMMARY AND CONCLUSIONS

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