This document discusses 21st century logistics and supply chain management. It defines logistics as planning and controlling the flow of goods and services, and defines supply chain management as coordinating the flow of information, materials, and services from suppliers to customers. The document outlines the strategic, tactical, and operational levels of supply chain decisions. Key challenges include integrating different partners and the dynamic nature of supply chains over time. Benefits of supply chain management include reducing costs, improving customer service, and mitigating the bullwhip effect.

1. 21 Century Logistics
st

2. Logistics
♦The process of planning,
implementing, and controlling the
efficient, effective flow and storage
of goods, services, and related
information from the point of origin
to the point of consumption for the
purpose of conforming to customer
requirement

3. What is Supply-Chain Management?
Defined
♦ Supply-chain is a term that describes how
organizations (suppliers, manufacturers,
distributors, and customers) are linked
together
♦ Supply-chain management is a total system
approach to managing the entire flow of
information, materials, and services from
raw-material suppliers through factories and
warehouses to the end customer.

4. ♦ Supply chain management is the
paradigm that is changing business and
business relationships. It reflects the
realization that the product pipeline for a
business extends from the vendor right
through to delivery to the customer. This
makes managing such a supply chain a
joint effort of suppliers and customers to
develop and exploit the savings, service
and benefits of SCM.

5. RETURNS.
Key DISTRIBUTOR AFTER SALES
RAW MATERIALS SERVICES.
Sub DIST REFUNDS.
PROCESSES / STAGES
WORK IN PROGRESS WARRANTE.
RETAILER ETC
WAREHOUSE FINISHED GOODS
SUPPLYER
FIRM CUSTOMERS
PLAN > SOURCE > MAKE > DELIVER OUTBOUND
INBOUND REVERSE
TRANSPORT TRANSPORT LOGISTICS
FUNDS
FLOWS MATERIALS
INFORMATION

6. Bill of “Rights”
♦ …………embodies the effort to
deliver:
– the right product
– in the right quantity
– in the right condition
– to the right place
– at the right time
– for the right customer
– at the right cost

7. Where is ONWARD in this grid???
Functional silos, each function protects its turf. Information/finance flows.
Functions lead business activities.
Suppliers not important, Customers Material
Purchasing. Production. Distribution. Sales.
dictated to on trade terms. control
Effectiveness of individual functions
more important than that of whole chain. Material flows.
. e nl esa B: e gat1S.
ts
Some functions integrated internally. Information/finance flows.
Some processes established, but
functions still dominate business
i
activities. Materials Manufacturing Distribution
Suppliers. Customers.
Suppliers considered important, but management . management. management.
dealt with at armslength mostly.
Customers “pushed” to buy. Material flows.
.l a noti s nar T: e gan S.
d2
t
Cross-enterprise processes integrate Information/finance flows.
suppliers and customers.
Plan. Plan.
Core processes lead business
activities. Internal supply
Each process a customer of previous Suppliere mgt. Customer mgt.
chain mgt.
and a supplier to next process. Processes. Processes.
i
Processes.
Planning process is link and
balance between processes.
Effectiviness of whole chain more Material flows.
important than individual function
e ga3S.
effectiveness.
tr
d

8. ♦ SCM therefore: (1) takes into consideration every
facility that has an impact on cost and plays a role
in making the product conform to customer
requirements from supplier through to consumer.
♦ (2) SCM should be efficient and cost effective
across the entire system. The approach should be a
system wide approach and not just minimizing
cost.
♦ (3) SCM revolves armed efficient ingemination of
all stakeholders; it therefore encourages all the
firms activities,firm strategic-Tactical-
Operational levels.

9. ♦ STRATEGIC LEVEL: Deals with decisions that have a long lasting
effect on the firm i.e. decisions regarding the number, location, and
capacity of warehouses and manufacturing plants and the flow of
material through the logistics network.
♦
♦ TACTICAL LEVEL: Includes decisions which are typically updated
anywhere believes once every quarter and once every year i.e.
purchasing and production decisions inventory polices and
transportation strategies including the frequency with which customers
are visited.
♦ OPERATIONAL LEVEL: Refers to day to day decisions such as
scheduling lend time quotations routing and trust loading.

10. KEY DECISION ISSUE IN SUPPLY CHAIN
MANAGEMENT IS
♦ (a)
Distribution network contribution
♦ (b)Inventory control
♦ (c)
Distribution strategies
♦ (d)SC integration and strategic partnering
♦ (e)
Product design
♦ (f)
Information technology and decision- support
system
♦ (g) Customer value
♦

11. SCM Challenges
♦ SCM integration is difficult for two main reason
– (a) Different facilities in the SC may have different conflicting objectives.
– (b) The SC is a dynamic system that evolves over time.
♦
♦ If some firms have improved SC performance by focusing on some SC
techniques, what inhabits other firm from adopting the same techniques
to improve their SC performance?
♦ (a) The SC is a complex network
♦ (b) Matching supply and demand is a major challenge.
♦ (c) System variations over time
♦ (d) Many supply chain problems are new

12. Benefits of Supply Chain
Management
♦ Mitigates bullwhip effect
♦ Improved customer service (internal &
external)
♦ Eliminate redundant processes
♦ One point concept
♦ Reduces wastages
♦ Reduces inventory level
♦ Impacts positively on the bottom line

13. THANK YOU FOR LISTENING