This document discusses the integration of supply chain and logistics management. It covers relating marketing channels, logistics, and supply chain management. Several key topics are discussed including aligning supply chains with marketing strategy, the role of information in supply chain responsiveness and efficiency, balancing total logistics costs with customer service, and the various functions involved in supply chains like transportation, warehousing, and inventory 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