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Logistics and SCM, Group DSC_1 - Coggle Diagram

- - - - Huge changes in ports: from dominated by large workforces responsible for manual handling of bulk cargo to usage of containerisation
        
        Containers can
        be stacked on top of each other onboard the ship, thus allowing very
        efficient space utilisation and cargo handlin
        
        Reduced the costs of transporting freight by maritime transport and significantly
        improved its efficiency
        
        Freight could now move from origin to destination across many modes and
        services with greater ease of handling
    - - Usage of barcoding and online tracking and tracing of freight, developments that also increase the efficiency of logistics
        systems
      - New technology - Radio Frequency Identification (RFID), is now emerging and should also drive more efficiencies into logistics systems
  - - - Rather than transporting bulky foodstuffs, now tend to try and ‘add value’ to the product
      - Manufacturers try and increase the value-to volume ratio of products being shipped.
  - - - Outsourcing, with suppliers playing a more central role for many manufacturers
      - In more recent years in particular, competition based on time, for example order to delivery
        time, has become a key success factor (KSF) in many markets.
  - - - This has forced companies to focus on other areas where savings can be made, and the storage and movement of inventory is a key area in this regard.
  - - - The various functions in which inventory played a key role, for example, transport, warehousing, purchasing, and marketing, were usually considered by managers to be separate and distinct.
        
        Led to
        
        Firms began to realise that cost savings and significant efficiency gains could be harnessed from more integrated
        and focused management of inventory
    - - Indeed many companies came to recognise the risks associated with holding too much stock which rendered them
        less flexible in their ability to respond to changing demandconditions.
        
        Led to
        
        Cost savings were identified through eliminating unnecessary inventory
        and just-in-time (JIT) deliveries became normal operating practice in many industries.
  - - - HOWEVER
        
        the reality in some deregulated markets has been somewhat different (with private monopolies sometimes replacing public ones)
      - Leading to the provision of both more and cheaper
        services. This of course in turn makes it easier and more efficient to move freight around the world.
- - - - Just 1 component out of many others such as: Strategic planning, IT, Marketing, Sales
      - High-level representative position: Director/VP of SCM Responsibilities range from minimum (logistics, purchasing, parts of marketing) to CEO-level
    - - NOT the combination of entire business functions
      - Supply chain council
        
        Includes important executives across business functions and establishments
        
        Purpose is to streamline SCM and utilize SCM concepts to enhance the performance of the supply chain as a whole
      - Small SCM advisory group
        
        Business departments approach the group for research, information, advice
        
        Business functions (e.g. Logistics, marketing) are NOT the responsibility of the group
  - - - View: SCM is logistics external from the organization, between different firms
      - Representative position: SCM analyst Oversees the connection of Logistics between internal business functions and other organizations
    - - SCM is just another term for “Integrated Logistics”, the evolution from “Logistics”
        
        “Supply chain” and “Logistics network” mean the same
        
        Scope of SCM is reduced (to be equal to Logistics)