Logistic and supply chain management


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Logistic and supply chain management

  1. 1. Logistic and supply chain management<br />Presented BY:<br />Ravikantsharma<br />
  2. 2. Rethinking Your Supply Chain StrategyBy Sean Silverthorne | June 8, 2011<br />In Japan, the production of everything from fuel cells to TV displays to cars has been disrupted.<br />Willy Shih sees two trends that place the world’s supply system at increasing risk.<br />In order to save costs, suppliers are putting all their faith in a smaller number of suppliers.<br />Subcontracting increasing the vulnerability if one of subs downstream is disrupted.<br />
  3. 3. Cont’d<br />Every firms need to rethink their supply strategy.<br />What happens if UPS workers go on strike–do you have a Plan B?<br />What suppliers can I least afford to have offline for any period of time?<br />Can I absorb the increased costs — prices go up when supply drops. If so, for how long? Or can I pass those costs along to customers?<br />Is business insurance an effective way for me to manage risk?<br />
  4. 4. 5 Ways China Can Benefit From Japan’s Auto Supply Chain Crisis.By Matthew DeBord | April 6, 2011<br />Upgrade the business model<br /> -An investment now in R&D will enable China to build its own high-value supply chain.<br />Develop logistics expertise<br />Expand the indigenous/existing parts industry<br /> -China’s economy can support a certain amount of excess capacity, so the country can function as a global auto-parts safety valve.<br />
  5. 5. Cont’d<br />Conceive a strategy for transplanting its carmakers<br /> -time for the Chinese to begin thinking about moving away from a pure export model and consider locating capacity in export markets.<br />Create a specialized supply chain for electric vehicles.<br /> -China could fill the role for high-end electric car parts.<br />
  6. 6. 5 Things the Auto Industry Can Learn From the Supply-Chain CrisisBy Matthew DeBord | March 30, 2011<br />Move from lean manufacturing to flexible manufacturing<br />Preposition “crisis” inventory<br />-in this area the auto industry can supplies near possible combat zones around the world to avoid the logistical hurdle of moving everything to the battle all at once.<br />
  7. 7. Cont’d<br />Pursue standardization of supply<br /> -At a fundamental level, all cars are basically the same.<br /> -higher levels of standardization are possible,<br />Enable local fabrication<br /> -Works better with cheap, simple vehicles.<br />Make the industry more sustainable<br /> -Eliminate excess capacity and try to make higher profits off the capacity that remains.<br />
  8. 8. Consumer goods co’s hire consultancies to improve supply chain<br />Makers of consumer goods and personal care products are turning to consultancies to help reduce sales losses and cope with high growth.<br /> LT sales were falling by 15% because of availability issues.<br />No tools were available for sales forecast or manufacturing.<br />There was no system to integrate raw materials and production check.<br />This resulted in high inventory and high loss of sales,” MD Arorasaid.<br />
  9. 9. Cont’d<br />By E&Y consultancy firm approach LT reduced loss of sales 5 to 15% in domestic and 2 to 5 % in export market.<br />The new logistics network reduced the time finished goods took to be sold from 38 days to 26.<br />E&Y also provided an integrated sales forecast system on monthly base prediction to LT Foods.<br />supply chain management put a company in an integrated planning process with clear accountability.<br />