An Individual Assignment Submitted in Partial Fulfillment of the Requirements of 1210334 Global Economic Trends in Thailand Exporting and Service Course, Mae Fah Luang University, Second Semester, 2014

1. SUMMARY OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT
BY MARTIN CHRISTOPHER, ANALYSIS TO AVIATION SYSTEM,
AND APPLICATION TO AVIATION LOGISTICS
AUTHORED BY:
MR. TANADE SIRINUMAS ID: 5531210150
SECTION 1
AVIATION BUSINESS MANAGEMENT
SCHOOL OF MANAGEMENT
AN INDIVIDUAL ASSIGNMENT ADVISOR
DR. SUTHEP NIMSAI
AN INDIVIDUAL ASSIGNMENT
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF 1210334
GLOBAL ECONOMIC TRENDS IN THAILAND EXPORTING AND SERVICE
COURSE
MAE FAH LUANG UNIVERSITY
SECOND SEMESTER, 2014

2. Summary of Logistics and Supply Chain Management by Martin Christopher,
Analysis to Aviation System, and Application to Aviation Logistics
Authored By:
Mr. Tanade Sirinumas ID: 5531210150
Section 1
Aviation Business Management
School of Management
An Individual Assignment Advisor
Dr. Suthep Nimsai
An Individual Assignment
Submitted in Partial Fulfillment of the Requirements of
1210334 Global Economic Trends in Thailand Exporting and Service
Course
Mae Fah Luang University
Second Semester, 2014

3. Contents
Page
Acknowledgements i
Declaration ii
Executive Summary iii
Part 1: Summary of Logistics and Supply Chain Management by Martin Christopher 1
1.1 Chapter 1: Logistics, the supply chain and competitive strategy 1
1.1.1 Concept of supply chain management and logistics 1
1.1.2 Competitive advantage 1
1.1.3 The supply chain becomes the value chain 1
1.1.4 The changing competitive environment 2
1.2 Chapter 7: The synchronous supply chain 2
1.2.1 Role of information 2
1.2.2 Quick response 3
1.3 Chapter 11: The era of network competition 3
1.3.1 The need for new business model 3
1.3.2 Collaboration in the supply chain 3
1.3.3 Managing the supply chain as a network 3
1.4 Chapter 13: Creating a sustainable supply chain 4
1.4.1 The triple bottom line 4
1.4.2 Greenhouse effect 5
1.4.3 Improving the transport-intensity of supply chain 5
1.4.4 Impact of congestion 5
1.5 Chapter 14: The supply chain of the future 6
1.5.1 Emerging mega-trends 6
1.5.2 Shifting centers of gravity 6
1.5.3 The multi-channel revolution 6
1.5.4 Structural flexibility 6
1.5.5 Vision in 2020 6

4. Contents (continued)
Page
Part 2: Analysis to Aviation System 7
2.1 Supply side 8
2.2 Demand side 9
2.3 Market 10
2.4 External factors 11
Part 3: Application to Aviation Logistics 12
References 14
Table of Figures
Page
Figure 1: The triple bottom line: people, planet, profit 4
Figure 2: The aviation system 7

5. i
Acknowledgements
I would like to thank my lecturer, Dr. Suthep Nimsai, for his sharing beneficial book
"Logistics and Supply Chain Management by Martin Christopher" and suggestion. His book
and suggestion gave the directions to plan the outline of this report. For everything you have
done for us, Dr. Nimsai, I thank you.
I would also like to acknowledge the very significant contribution to this report of the
following person for pleasant and hospitable giving us permission to use their information:
Andreas Wittmer
Martin Christopher
Thomas Bieger

6. ii
Declaration
I, Mr. Tanade Sirinumas being the author of this report, hereby declare that this report
entitled "Summary of Logistics and Supply Chain Management by Martin Christopher,
Analysis to Aviation System, and Application to Aviation Logistics" is written by me, and is
my own effort, and has not been submitted before for any degree to any other University. All
data and information from these other sources presented in this report are correct and have
been duly referenced and acknowledged.
Tanade Sirinumas

7. iii
Executive Summary
The logistics and supply chain management book by Martin Christopher says about
logistics and supply chain concept, how to create the competitive advantage, changing in
competitive environment presently. And to create more effective supply chain, the supply
chain partner should collaborate to become the synchronous supply chain. Because now is the
era of network competition. Furthermore, the supply chain management should think about
the sustainable supply chain. One of the sustainable topics is Greenhouse effect. And the last,
Martin Christopher wrote about the future, new mega-trends, shifting of center of gravity, and
2020 vision.
To analyze the knowledge from logistics and supply chain management book, the
author uses the aviation system model of Andreas Wittmer and Thomas Bieger that separate
into 4 sides that are: supply side, demand side, market, and external factors.
And the ways to apply to use in the aviation logistics business are: the aviation
logistics business should create the competitive advantage, study the customers, collaborate
with the partners and competitors to share information and capacity to each other, apply the
new idea, new technology, and new innovation to use in the organization, and think about the
sustainability issues.

8. 1
Part 1: Summary of Logistics and Supply Chain Management
by Martin Christopher
1.1 Chapter 1: Logistics, the supply chain and competitive strategy
(Christopher, 2011, pp. 1-24)
1.1.1 Concept of supply chain management and logistics
Logistics is the plan for product and information flow, while supply chain is wider
than logistics because it includes with relationship flow of suppliers through customers too.
1.1.2 Competitive advantage
There are two type of competitive advantage: first is cost advantage, second is value
advantage.
1) Cost advantage
Cost advantage occurs between company and its competitors. That is competition by
cost. The cost advantage can be made by economy of scale.
2) Value advantage
Value advantage is the competitive advantage from creating the value to customers by
responds the different demand of customers. And the service can make added value to
customers. The term “service” in logistics is speed of the delivery or just in time.
1.1.3 The supply chain becomes the value chain
The supply chain increases its value by using value chain. The method is to join with
outsourcing to make the network and to make the advantage together. But to do this method,
the partners in supply chain should have high level of relationship.

9. 2
1.1.4 The changing competitive environment
 The new rules of competition
The company cannot stand alone. And the customers have less royalty; they will
consume the substitute products because their trend changes to be commoditization.
 Globalization of industry
The supply chain is longer and complex because of finding the lower cost of resource
and labor from foreign countries.
 Downward pressure on price
The price deflation occurs from out-of-date products and easy price comparison
through the internet.
 Customers taking control
The power comes from demand of customers, not product or service quality.
1.2 Chapter 7: The synchronous supply chain
Nowadays, the nature of business is more boundaries-less. Supply chain needs the
synchronized network to be more efficient network. To be synchronous, the supply chain
partners should share the information between each other includes demand data, demand
forecasts, other details (Christopher, 2011, pp. 141-157).
1.2.1 Role of information
Internet is a way that used to create synchronous supply chain. The internet links
between customers and suppliers directly, and then the suppliers can respond their customers
immediately. Moreover, the internet is a way that use low costs, and provide customer short
time searching and reduce transaction costs. And the information that can get from internet
will make the supply and demand match with each other in the market.
The companies use information and information technology to improve their customer
response to become the successful company. Because the information technology or IT
system make them know the demand data quicker.
An example of the benefit of sharing information is “quick response.”

10. 3
1.2.2 Quick response
Quick response is the idea that the suppliers will response the company as soon as the
company has demand. This method make the company carries less inventory, and safety
stock.
1.3 Chapter 11: The era of network competition
(Christopher, 2011, pp. 211-226)
1.3.1 The need for new business model
The organization should make more effective network and share the information
together. The business cannot stand alone.
1.3.2 Collaboration in the supply chain
The co-ordination between supply chain partners should be trust. The closer
relationship between suppliers and buyer will make mutual benefit or “win-win” outcome.
1.3.3 Managing the supply chain as a network
1) Collective strategy development
To make more effective, the supply chain partners should share and make the strategy
together.
2) Win-win thinking
Supply chain partners should have win-win thinking. Win-win thinking does not mean
50/50, but it means all partners will get benefit minimally.
3) Open communication
To make powerful network, the partners should use the information technology, such
as internet, to share the information to each other.

11. 4
1.4 Chapter 13: Creating a sustainable supply chain
Sustainable is the term of concerning the world. When people say about sustainable,
they will talk about the triple bottom line mostly (Christopher, 2011, pp. 241-254).
1.4.1 The triple bottom line
Triple bottom line consists of 3 aspects.
1) Environment e.g. climate change, pollution, deficiency of resources
2) Economy e.g. financial security of the company
3) Society e.g. wellbeing of people, labor standard
The triple bottom line can be written into 3Ps of people, planet, and profit.
Figure 1: The triple bottom line: people, planet, profit
Source: Accenture
To continue the business to the future, the company should contribute the future
wellbeing of the world as well.

12. 5
1.4.2 Greenhouse effect
Nowadays, the people have the awareness of the environmental issues. One of these
issues is “Greenhouse gases.” The emissions that relate to the activity that produce them is
called “carbon footprint.”
The journey of one product from suppliers to customer cause a lot of carbon footprint.
So supply chain management should think about strategy to reduce the emissions.
1.4.3 Improving the transport-intensity of supply chain
The ways to improve transport-intensity and reduce the emissions could be: the
supply chain decisions impact the resource footprint that includes:
 Design
Change product design to be able to reuse, recycle
 Source
Find the source from new location that cause less emission during transportation than
old location
 Make
Produce by using the way that reduce the emission
 Deliver
Change the transportation mode to reduce carbon footprint
 Return
Improve transport utilization by share transport with other organization to reduce
“empty miles”
1.4.4 Impact of congestion
Traffic congestion is one of key issue when think about the sustainable. The
improvement of infrastructure may cause the traffic congestion. Because the infrastructure is
not be improved all of them that make the bottlenecks on somewhere.

13. 6
1.5 Chapter 14: The supply chain of the future
(Christopher, 2011, pp. 257-267)
1.5.1 Emerging mega-trends
 The population in some region may increase, and also, the demographic of age will
change too.
 There will be the new “mega-cities” because the moving from rural to urban increase.
 The wealth people will change from western region to new emerging economies
countries.
1.5.2 Shifting centers of gravity
The center of gravity may shift in both supply and demand side. One evident of
shifting is the growing new urban.
1.5.3 The multi-channel revolution
Many companies provide multi-option for ordering and delivery to their customers
currently. The internet is a way that they offer to their customer. The transaction trough
internet increase constantly. Then the customers can compare the price, plan the lead time,
and request their specific demand. Conversely, the suppliers can study their customers’
behavior through the internet and use this information to launch the strategies.
1.5.4 Structural flexibility
The many supply chain partners co-operate with each other by:
 Sharing their information
 Sharing their capacity
 Sharing their knowledge for product and process innovation
1.5.5 Vision in 2020
 The “doing more with less” method will increase in the organizations.
 The new technology and new thinking will improve the manufacturing.

14. 7
Part 2: Analysis to Aviation System
Figure 2: The aviation system
Source: Wittmer and Bieger
The aviation system includes with
1) Supply side
2) Demand side: customer
3) Market: where the supply and demand meet together
4) External factors; that are social, economic, political, ecological, and technological
(Wittmer and Bieger, 2011, p. 2)

15. 8
2.1 Supply side
Competitive advantage
The suppliers or producers should make the competitive advantages for their own
business. They may use the cost advantage by compete with their competitors or use value
advantage by serve the value to their customer.
Value chain and co-operation
The suppliers and producers should join together and make benefit together. They
should share their information maybe through the internet. This will lead the win-win
outcome for them, for example, make the quick respond. The companies cannot stand alone
because the customers’ trend has changed.
Sustainability
The producers should review their process since design product, find the resource,
produce, transport, and return the product to make sure that their process makes less
emission, because the environmental issue is one key issue of sustainability. The business
should make the world sustain along with itself.
Future trends
There will be new trends in the world, so the supplier and produces should change
themselves to meet the customers’ demand or improve their business, such as using more
information technology and provide the multi-channel to customers. Moreover, the suppliers
and producers may change themselves because of the resource or the infrastructure
improvement in the new urban, not only change by following the demand. Last, the new
technology will come to improve the manufacturers and make new innovation for the
products and service.

16. 9
2.2 Demand side
Customer taking control
Nowadays, customers have high power than sellers. Customers can choose products
or substitute products. Moreover, customers can make special requirements for products or
services because the companies try to compete with each other by serve the value to
customers.
Benefits from internet
Customers gain benefits from the internet. First, the customers can make price
comparison so the customers can choose the appropriate price. This leads the price deflate.
Second, the customers can contact the supplier directly, and the supplier will respond
immediately too. Moreover, the customer can tell the supplier what they want, even if their
need is special request.
Help the world
The customers can help the world by consume the products and services that make
less carbon emission or Greenhouse gases.
Changing of customers
The demographic of customers had changed. There will be the new rich of customers
in the new urban and new economic countries.

17. 10
2.3 Market
Cyber market
The internet becomes the new market place between the supplier and the customers.
The internet makes the transaction faster and low cost.
Collaborate through supply side, market, and demand side
The internet is the way that links supply side, market, and demand side. The
information exchange occurs in internet networks so the supply side and demand side will
know the information of other side and market. This makes equilibrium in the market.
New market emerges
Because of the new urban and infrastructure improvement, the market will change
from old place to new place with high demand.

18. 11
2.4 External factors
Technology improve supply chain
Technology plays a key role in improve supply chain. It links all partners and makes
the procedures better, such as, be the fastest way to communicate between all partners, make
the innovation in manufacture.
Ecological issue
The environmental issues such the Greenhouse effect becomes an important issue in
supply chain management. It leads supply chain partners change their process to maintain the
sustainability of the world.
Government
The infrastructure improvement by the government can affect the supply chain, such
as the imperfect infrastructure improvement cause the traffic congestion.

19. 12
Part 3: Application to Aviation Logistics
Create the competitive advantage
The aviation logistics is a business that has substitute service. Then the aviation
logistics business should improve itself; maybe start from creating the competitive
advantages, serve the value to customers by make its service fast and reliable.
Know the customers
The aviation logistics business should also know own customers and market.
Nowadays, the group of customers and market change from one region to other region
quietly. So the aviation logistics business should study the customers’ behavior all the time,
which it can start from study from the internet, or the information from partners.
Collaborate to make win-win outcome
The aviation logistics business cannot stay alone; it has a lot of partners in its supply
chain. It should coordinate with its partners to help each other, for example, sharing the
information together, to make the win-win outcome. Moreover, it can reduce cost by joint
venture and share the capacity with its competitors, change the competitors to become the
partners, then the empty miles will not occur and this is a way to reduce the carbon footprint.
Reduce the emission
The aviation logistics business is one of the businesses that create a lot of carbon
dioxide. And this is not the sustainable way. So the aviation logistics business should
improve its technology and strategy to reduce the emission as much as possible.

20. 13
Social improvement
Not only the environmental topic, the aviation logistics business should think about
the well-being of society, human right, living standard of staffs, to make the sustainable
business.
Apply new method
To make the better process, the aviation logistics business should apply new method,
new idea, new technology, and new innovation to use in its organization. Because of the
world change all the time, the aviation logistics business cannot remain on the same point.

21. 14
References
Christopher, M. (2011). Logistics, the supply chain and competitive strategy. In Logistics &
supply chain management (4th ed., pp. 1-24). Harlow, England: Financial Times
Prentice Hall.
Christopher, M. (2011). The synchronous supply chain. In Logistics & supply chain
management (4th ed., pp. 141-157). Harlow, England: Financial Times Prentice Hall.
Christopher, M. (2011). The era of network competition. In Logistics & supply chain
management (4th ed., pp. 211-226). Harlow, England: Financial Times Prentice Hall.
Christopher, M. (2011). Creating a sustainable supply chain. In Logistics & supply chain
management (4th ed., pp. 241-254). Harlow, England: Financial Times Prentice Hall.
Christopher, M. (2011). The supply chain of the future. In Logistics & supply chain
management (4th ed., pp. 257-267). Harlow, England: Financial Times Prentice Hall.
Wittmer, A., & Bieger, T. (2011). Fundamentals and Structure of Aviation Systems. In R.
Müller (Ed.), Aviation systems management of the integrated aviation value chain
(p. 2). Berlin: Springer.