integrating supply chain and logistics management

1. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
INTEGRATING
SUPPLY CHAIN AND
LOGISTICS
MANAGEMENT

2. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Relating marketing Channels, Logistics,
and Supply Chain Management
 Logistics
 Logistics management
 Supply chain
 Supply chain management
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT

3. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Relating marketing channels, logistics management,
and supply chain management

4. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The automotive supply chain

5. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Supply Chain Management and
Marketing Strategy
• Aligning a Supply Chain with Marketing
Strategy
 Understand the customer
 Understand the supply chain
 Harmonize the supply chain with
the marketing strategy
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT

6. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Information’s Role in Supply Chain
Responsiveness and Efficiency
• Electronic data interchanges
• Total Logistics Cost Concept
INFORMATION AND LOGISTICS
MANAGEMENT OBJECTIVE
IN A SUPPLY CHAIN

7. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
How total logistics cost varies with number of
warehouses used

8. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Customer Service Concept
INFORMATION AND LOGISTICS
MANAGEMENT OBJECTIVE
IN A SUPPLY CHAIN

9. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Supply chain managers balance total logistics cost
factors against customer service factors

10. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Customer Service Concept
• Lead Time
 Quick response
 Efficient consumer response
• Dependability
• Communication
• Convenience
• Customer Service Standards
INFORMATION AND LOGISTICS
MANAGEMENT OBJECTIVE
IN A SUPPLY CHAIN

11. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Third-party logistics providers
• Transportation
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN

12. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advantages and disadvantages of five modes of
transportation

13. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Transportation
• Railroads
 Intermodal transportation
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN

14. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Transportation
• Motor Carriers
• Air Carriers and Express Companies
• Freight Forwarders
• Warehousing and Materials Handling
• Order Processing
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN

15. © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Inventory Management
• Reasons for Inventory
• Inventory Costs
• Supply Chain Inventory Strategies
 Just-in-time (JIT) concept
 Vendor-managed inventory
• CLOSING THE LOOP:
REVERSE LOGISTICS
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN