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- 1. Logistics Management Introduction tothe Course Jing Yuan Feb, 2012
- 2. Introduce Yourself Let’s meknow who you are. What’s logistics management? Supply chain management Vs. logistics management …
- 3. Outline Introduce yourself Who Iam Course introduction – Course description – Learning objectives – Textbooks – Grading policy – Schedules
- 4. Outline Introduce yourself Who Iam Course introduction – Course description – Learning objectives – Textbooks – Grading policy – Schedule
- 5. Course description An introductorycourse in the analysis, design and operation of logistics and supply chain Presented through lectures along with several case studies and experiments The lectures consist of nine parts
- 6. Learning objectives Knowledge thestrategic role of the supply chain An understanding of logistic systems & their management problems Ability to devise workable solutions in business situations
- 7. Textbooks Textbook – Harrison, A.and Hoek, R. V. (2010) Logistics Management and Strategy, third edition, 中国 人民大学出版社 References (not required) – Christopher, M. (2006) Logistics and Supply Chain Management: Creating Value-adding Network, third edition, 电子工业出版社 – 张余华，现代物流管理，清华大学出版 社， 2010 年。
- 8. Lecture Organization Lecturing Videos Group exercises Casediscussion Case study presentations
- 9. Grading Policy Grading – Assignmentand Quiz 10% – Midterm 20% – Final Project 70% Midterm – Case study – Final presentation Final project – A closed examination held in the last week of term
- 10. Schedule Lectures – 14 weeks Casestudy presentations – 2 weeks Experiments – 2 weeks
- 11. Logistics and supplychain Logistics Management
- 12. logistics and Supplychain1 Material and information flow2 Competing through logistics3 Logistics strategy4
- 13. Seven-eleven convenience store –Describe the key logistics processes at 7-11. – What differences between the early reform and the regional distribution center at 7-11. – What do you think are the main logistics challenges in running the 7-11 operation. Case study
- 14. Case study Centralized distribution No distribution center Built itsown distribution center---joint distribution First stage Second stage Third stage
- 15. Key issues 11 What issupply chain, and how is it structured? 22 What is the purpose of a supply chain?
- 17. The Supply ChainConcept Development of the Concept – Total systems cost - remains an important element of logistics analysis. – Outbound logistics – the warehousing and distribution of finished goods. – Inbound logistics – the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. – Value chain analysis integrated logistics activities.
- 18. Business Logistics ina Firm
- 19. A supply chainis 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. The Supply Chain management Concept DefinitionDefinition Planning and controlling all of the processes that link partners in a supply chain together in order to serve needs of the end-customer.
- 20. The process startswith 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. Supply chain: structure and tiering
- 21. Supply chain: structure andtiering 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.
- 22. Logistics concept DefinitionDefinition The taskof coordinating material flow and information flow across the supply chain.
- 23. Activity 1 Wheat Flour PralineWafers 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
- 24. logistics and Supplychain1 Material and information flow2 Competing through logistics3 Logistics strategy4
- 25. Key issue 11 What isthe relationship between material flow and information flow?
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- 27. Case study: Seven-eleven’sdistribution strategy Delivery arrives from over 200 plants Delivery is cross docked at DC (over 80 DCs for food) Food DCs store no inventory Combined delivery system: frozen foods, chilled foods, room temperature and hot foods 11 truck visits per store per day (compared to 70 in 1974) No supplier (not even coke!) delivers direct
- 28. Case study: Seven-eleven’s InformationStrategy Quick access to up to date information (as contrasts with data) – High speed data network linking stores, headquarters, DCs and suppliers – Store hardware – Store computer – POS registers linked to store computer – Graphic Order Terminals – Scanner terminals for receiving
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- 31. Material and informationflow Material flow Information flow
- 32. Activity 2 Describe thematerial and information flow in the supply network affecting one of the major products in Activity 1.
- 33. logistics and Supplychain1 Material and information flow2 Competing through logistics3 Logistics strategy4
- 34. Key issues 11 How doproducts win orders in the marketplace? 22 How does logistics contribute to competitive advantage?
- 35. Creating logistics advantage:three basic ways Logistics advantageLogistics advantage quality time cost
- 36. Creating logistics advantage: controllingvariability Variability undermines the dependability with which a product or service meets target.
- 37. Order winners andorder 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.
- 38. Activity 3 Comparethe details for characteristics of both household appliance and mobile phone’s product lines. Go on to identify the principal order winners and qualifiers for each product. Vs.
- 39. logistics and Supplychain1 Material and information flow2 Competing through logistics3 Logistics strategy4
- 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
- 41. How to AchievingStrategic Fit Understanding the Customer – Lot size – Response time – Service level – Product variety – Price – Innovation How to measure? Implied Demand Uncertainty
- 42. Levels of ImpliedDemand Uncertainty Detergent High Fashion Low High Price Responsiveness Customer Need Implied Demand Uncertainty
- 43. Understanding the SupplyChain: Cost- Responsiveness Efficient Frontier High High Low Low Cost Responsiveness
- 44. Achieving Strategic Fit Implied uncertainty spectrum Responsive supplychain Efficient supply chain Certain demand Uncertain demand Responsiveness spectrum Zone of Strategic Fit
- 45. Strategic Scope Suppliers ManufacturerDistributor Retailer Customer Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy
- 46. Drivers of SupplyChain Performance Efficiency Responsiveness Inventory Transportation Facilities Information Supply chain strategy and structure Drivers Competitive strategy
- 47. Considerations for SupplyChain Drivers Driver Efficiency Responsiveness Inventory Cost of holding Availability Transportation Consolidation Speed Facilities Consolidation / Dedicated Proximity / Flexibility Information What information is best suited for each objective
Editor's Notes
- #47 How does a supply chain make the efficiency / responsiveness tradeoff and position at the appropriate point - using Inventory, Transportation, Facilities, and Information decisions.