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LOGISTICS AND SUPPLY CHAIN MANAGEMENT, What is Supply Chain Management?,…
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Six important developments over past decades
Reduced transport intensity of freight
Goods transported now has more value and reduced in size in order to maximize the efficiency of transportation of goods.
Falling product prices
Products that are being transported are being configured.
Deregulation of transport
Transportation of goods are provided accurately and fairly.
Productivity improvements
Introducing new methods to increase efficiency and effectiveness of various systems.
Emphasis on inventory reduction
Reducing unnecessary inventory will lead to saving cost and provides efficiency.
Changes in company structure
Outsourcing provides many advantages to the companies.
What is Logistics?
Planning
Process that creates value by timing and positioning inventory
It is the combination of a company's
Warehousing
Materials handling
Packaging
Inventory
Order management
Tracking of orders
Transportation methods
Storage of goods
Benefits of good storage system
Cost per unit
Reduce/ eliminate damages
Reduction of movement
Working personnel's safety
Reduce interruptions
Customer satisfaction
Easier tracking of goods
Transportation
Flow of goods (8Rs)
right way
cause little damage to the environment
right quantity
right quality
right place
right time
right customer
right cost
right product
With the correct information and services
Definition
Logistics is the collection of processes → moving raw materials & finish goods throughout the supply chain, internally or from seller to buyer.
Steps! e.g. receiving → warehousing → transportation → inventory management → order fulfilment etc.
e.g. order fulfilment = goods picked from warehouse as per customer's order → packaged → labeled → shipped to customer
Customer Satisfaction!
Inadequate logistics. e.g. delays → delivery time, customer experience → sales
Adds efficiencies, cut cost & ensuring products are delivered to the right location @ the right time to meet delivery deadlines & customer's expectations
Inbound Log
Supply
Collecting supplies or raw materials into warehouse→ receiving
Suppliers, manufacturers & retailers
Sourcing, procurement, material management etc.
Outbound Log
Demand
moving final goods & finish products to customers/ end-user → delivery
transportation, order fulfilment & delivery etc.
retail stores & customers etc
Perspectives
Unionist
Logistics is a part of SCM
Re-labelling
To avoid confusion, "logistics" has been relabeled into SCM
Traditionalist
SCM is a part of logistics
Intersectionist
Overlap between parts of logistics and SCM
Evolution of Logistics and SCM
Technology, Data, E-commerce
Global trade, Larger market
Data driven transportation
Military concern
Transportation and Storage
What is Supply Chain Management?
Network of relationship
Management of flow of goods and services
Finished goods
End to end order fulfillment
Work in process inventory
Raw materials
Benefits
Adding value
Maximum profitability
Higher efficiency rate
Cut excess costs
Customer satisfaction
Various separate functions
Transport
Warehousing
Purchasing
Marketing
Finance
Streamline activities / processes
Maximize customer value
Competitive advantage
Types of Supply Chain Models
Continuous Flow Model
Mature
Agile Model
Unpredictable
Flexible Model
Seasonality
Efficient Model
Efficiency
Custom Model
Specialized
Fast Model
Speed
Involvement
Suppliers
Manufacturers
Distributors
Retailers
Consumers
2022 Top companies in Supply Chain Management excellence
Cisco Systems
Schneider Electric
Valuable lessons in Supply Chain Management excellence
Embracing expanded responsibilities across an ever broadening ecosystem
Enabling leaders to stabilize more quickly after external shocks
Providing visibility and transparency into sustainability performance
Prioritizing digital literacy and dexterity
Colgate-Palmolive
Definition
A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.
Planning
Plan and manage all resources required to meet customer demand
Sourcing
Choose suppliers to provide the goods and services needed to create the product. Then, establish processes to monitor and manage supplier relationships
Manufacturing
Accept raw materials, manufacture the product, test for quality, package for shipping and schedule for delivery
Delivery
Coordinate customer orders, schedule deliveries, dispatch loads, invoice customers and receive payments
Returning
Create a network or process to take back defective, excess or unwanted products
B2C