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INTEGRATING
SUPPLY CHAIN AND
LOGISTICS
MANAGEMENT

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

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

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

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT
• 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

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

• Total Logistics Cost Concept

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

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

• Customer Service Concept

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

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

• Customer Service Concept
• Lead Time
 Quick response
 Efficient consumer response

• Dependability
• Communication
• Convenience

• Customer Service Standards
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN

• Third-party logistics providers
• Transportation

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

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN

• Transportation
• Railroads
 Intermodal transportation

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

• Warehousing and Materials Handling
• Order Processing

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN

• Inventory Management
• Reasons for Inventory
• Inventory Costs
• Supply Chain Inventory Strategies
 Just-in-time (JIT) concept
 Vendor-managed inventory

• CLOSING THE LOOP:
REVERSE LOGISTICS
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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12 logistics

  • 1. INTEGRATING SUPPLY CHAIN AND LOGISTICS MANAGEMENT © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 2. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT • Relating marketing Channels, Logistics, and Supply Chain Management  Logistics  Logistics management  Supply chain  Supply chain management © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 3. Relating marketing channels, logistics management, and supply chain management © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 4. The automotive supply chain © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 5. SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT • 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 © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 6. INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN A SUPPLY CHAIN • Information’s Role in Supply Chain Responsiveness and Efficiency • Electronic data interchanges • Total Logistics Cost Concept © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 7. How total logistics cost varies with number of warehouses used © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 8. INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN A SUPPLY CHAIN • Customer Service Concept © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 9. Supply chain managers balance total logistics cost factors against customer service factors © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 10. INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN A SUPPLY CHAIN • Customer Service Concept • Lead Time  Quick response  Efficient consumer response • Dependability • Communication • Convenience • Customer Service Standards © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 11. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN • Third-party logistics providers • Transportation © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 12. Advantages and disadvantages of five modes of transportation © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 13. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN • Transportation • Railroads  Intermodal transportation © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 14. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN • Transportation • Motor Carriers • Air Carriers and Express Companies • Freight Forwarders • Warehousing and Materials Handling • Order Processing © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 15. KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN • Inventory Management • Reasons for Inventory • Inventory Costs • Supply Chain Inventory Strategies  Just-in-time (JIT) concept  Vendor-managed inventory • CLOSING THE LOOP: REVERSE LOGISTICS © 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin