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SUPPLY CHAIN AND LOGISTICS
MANAGEMENT
Week-1 :
Lecture 2
Prepared by
LEARNING OBJECTIVES
 Differentiation between Logistics and Supply Chain
Management from business organisations
perspective
 Identifying and drawing various types of Supply
Chain Networks
 Objectives of Supply Chain Management
 Re-visiting some fundamental concepts that drive
business supply chain such as theory on
competitive advantage , Customer Relationship
Management ( CRM ) , business process
Integration etc.
INTROUDCTION
A SIMPLE SUPPLY -CHAIN NETWORK
NODES
S= Supplier
M= Manufacturer
D= Distributor
R= Retailer
C= Customer
S M D R C
S
S
WHAT TYPE OF SUPPLY CHAIN IS IT ? CAN
YOU IDENTIFY VARIOUS NODES
1-4
Customer wants
detergent and goes
to Jewel
Jewel
Supermarket
Jewel or third
party DC
P&G or other
manufacturer
Plastic
Producer
Chemical
manufacturer
(e.g. Oil Company)
Tenneco
Packaging
Paper
Manufacturer
Timber
Industry
Chemical
manufacturer
(e.g. Oil Company)
LEVI’S JEANS SUPPLY CHAIN
Suppose there is a garment retail organization
operating in USA. It orders to produce 10,000
garments . It decides to buy yarn from South Korean
producer but have it woven and dyed in Taiwan. So
the yarn is picked from Korea and sent to Taiwan.
Japanese market has the best zippers, so the
American organization goes to the Japanese zipper
manufacturer. The right zippers are ordered from
China. The best place to make garments is Thailand.
So everything , that is involved in the manufacturing
of a garment is sent to Thailand. The customer needs
quick delivery , so orders are divided across five
factories in Thailand.
WHAT IS CRM
Customer Relationship
Management
(CRM) is a strategy that focuses
on building strong relationships
with customers and potential
customers for creating and
maintaining a loyal customer
base.
WHY CRM
 Satisfied customer contributes 2.6 times
more revenue as some what satisfied customer
 Satisfied customers contributes 17 times more
revenue as some what dissatisfied customer
 It requires 5-10 times more to acquire new
customers than to retain already existing customer
PORTER VALUE CHAIN
• Value creation is combination of primary and secondary activities
• Operations of an organization comprises of several entities
• Depending on where an organization wants to place itself it needs
to reconfigure the combination of primary and secondary activities
• The would lead to achieving competitive advantage
COMPETITIVE ADVANTAGE
According to Porter, competitive advantage,
and thus higher profits will result either from:
Differentiation of products (distinctive, more
product features) and selling them at a premium
price, OR
Producing products at a lower price than
competitors
COST AND VALUE LEADERSHIP
Ryan Air McDonalds
Ferrari,
Rolls Royce

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SUPPLY CHAIN AND LOGISTICS MANAGEMENT

  • 1. SUPPLY CHAIN AND LOGISTICS MANAGEMENT Week-1 : Lecture 2 Prepared by
  • 2. LEARNING OBJECTIVES  Differentiation between Logistics and Supply Chain Management from business organisations perspective  Identifying and drawing various types of Supply Chain Networks  Objectives of Supply Chain Management  Re-visiting some fundamental concepts that drive business supply chain such as theory on competitive advantage , Customer Relationship Management ( CRM ) , business process Integration etc.
  • 3. INTROUDCTION A SIMPLE SUPPLY -CHAIN NETWORK NODES S= Supplier M= Manufacturer D= Distributor R= Retailer C= Customer S M D R C S S
  • 4. WHAT TYPE OF SUPPLY CHAIN IS IT ? CAN YOU IDENTIFY VARIOUS NODES 1-4 Customer wants detergent and goes to Jewel Jewel Supermarket Jewel or third party DC P&G or other manufacturer Plastic Producer Chemical manufacturer (e.g. Oil Company) Tenneco Packaging Paper Manufacturer Timber Industry Chemical manufacturer (e.g. Oil Company)
  • 5. LEVI’S JEANS SUPPLY CHAIN Suppose there is a garment retail organization operating in USA. It orders to produce 10,000 garments . It decides to buy yarn from South Korean producer but have it woven and dyed in Taiwan. So the yarn is picked from Korea and sent to Taiwan. Japanese market has the best zippers, so the American organization goes to the Japanese zipper manufacturer. The right zippers are ordered from China. The best place to make garments is Thailand. So everything , that is involved in the manufacturing of a garment is sent to Thailand. The customer needs quick delivery , so orders are divided across five factories in Thailand.
  • 6. WHAT IS CRM Customer Relationship Management (CRM) is a strategy that focuses on building strong relationships with customers and potential customers for creating and maintaining a loyal customer base.
  • 7. WHY CRM  Satisfied customer contributes 2.6 times more revenue as some what satisfied customer  Satisfied customers contributes 17 times more revenue as some what dissatisfied customer  It requires 5-10 times more to acquire new customers than to retain already existing customer
  • 8. PORTER VALUE CHAIN • Value creation is combination of primary and secondary activities • Operations of an organization comprises of several entities • Depending on where an organization wants to place itself it needs to reconfigure the combination of primary and secondary activities • The would lead to achieving competitive advantage
  • 9. COMPETITIVE ADVANTAGE According to Porter, competitive advantage, and thus higher profits will result either from: Differentiation of products (distinctive, more product features) and selling them at a premium price, OR Producing products at a lower price than competitors
  • 10. COST AND VALUE LEADERSHIP Ryan Air McDonalds Ferrari, Rolls Royce