Description
Logistics and Supply Chain Management
LOGISTICS & SUPPLY CHAIN MANAGEMENT
LOGISTICS MANAGEMENT
(IN 21ST CENTURY)
Logistics management refers to creating (designing, developing, producing) and operating an integrated system which responds to customer expectations by making available required quantity of required quality
products and services as and
place & speed) at the least possible
when required (Time, costs.
EVOLUTION OF LOGISTICS MANAGEMENT
Period Logistics Evolution Era
Till1950s Independent Business Function
1960s 1980s 1990s Limited Internal integration Fully Internally Integrated Function Externally integrated Function
2000+
IT integrated process function
INDEPENDENT BUSINESS FUNCTION ERA (TILL 1950S)
Long history of application in wars but no formal concepts or theory for business existed. Post war-large demands and acute shortages of products Mindset-Increased capacities and high volume production Main object- maximize profit by volume sales Role of logistics limited to warehousing & transportation of raw materials and finished products. “Production Focus”
INDEPENDENT FUNCTIONAL STRUCTURE
Chief Executive
Manufacturing -Prod. scheduling -Plant location -RM purchases -Factory transport -Inventory mgmt. -Packaging -Work in process
Sales & Marketing
Finance &Control
-Sales forecasting -Depot locations and operations -Depot stock levels -Delivery transports -Distribution channels
-Order processing -Use of computers -Credit controls -Investments in inventories -Operational research
LIMITED INTERNAL INTEGRATION ERA (1960-70S)
Recession of 1958 Plentiful of products, very sluggish demand, severe price competition Business focus- price based competition and cost controls Limited Internal Integration of-
Materials Management and Distribution Management. “Focus: Cost Control”
LIMITED INTERNALLY INTEGRATED FUNCTIONAL STRUCTURE
Chief Executive Manufacturing -Prod. scheduling -Industrial Eng. -in-plant storage Sales & Marketing -Sales forecasting -Sales operations -Market Intelligence Finance &Control -Credit controls -Facility planning -Budgeting
Materials Management -Material req. planning -Procurement, purchase -Warehousing -RM inventory -In-bound transport
Distribution Management -Out-bound transport -Fin. goods stocks -order processing -Distrib. warehousing
FULLY INTERNALLY INTEGRATED FUNCTIONAL ERA(1980S)
OPEC embargo-steep increase in oil price Sharp increase in transport costs-reduced profitability Very high inflation- significant increase in interest rates Gradual change in economic structure- multinational operations Pressure for increased internal efficiencies
FULLY INTERNALLY INTEGRATED FUNCTIONAL ERA(1980S)..CONTD
Business need- maximize profitable sales volume and cost reduction Major development- Integrated logistics management i.e. Materials
Management, Production Management and Distribution Management
Main Focus- increased productivity, profitability
“ Focus: Internal Efficiencies”
FULLY INTERNALLY INTEGRATED FUNCTIONAL STRUCTURE(1980S)
EXTERNALLY INTEGRATED FUNCTIONAL ERA (1990S)
Rapid privatization, Liberalization and globalization Business scenario becomes still more competitive New pattern for survival- provide most value at least cost Rapid technology development, many new concepts developed- TQM,MRP,DRP, JIT, 3PL & 4PL Major thrust of era- Core Competence and high degree of specialization Do what you can do the best and outsource the rest “ Focus” Core Competencies”
IT INTEGRATED FUNCTIONAL ERA(2000+) (VIRTUAL ORGANIZATION ERA)
Major developments in Information technology Real time and high speed communications becoming common Web based transaction becoming common Supplier, manufacture, seller and customer can make transactions simultaneously on a real time basis E-commerce, VMI, Zero Inventory and many other developments
IT INTEGRATED FUNCTIONAL STRUCTURE
IT INTEGRATED PROCESS STRUCTURE Chief Executive
Logistics Executive
Multi-discipline Logistics Management Team Transaction Management foundation Software
Supplier Relationship Management (SRM)
-Source -Negotiate -Buy -supply collabortn. -Design collaboratn.
Internal Logistics Management (ILM)
Custom Relationship Management (CRM)
-Call centre -Marketing -Selling -Order Management -Customer service
-Strategic
Planning -Demand and supply Planning -Fulfillment -Field service
LOGISTICS MANAGEMENT
OVERVIEW
Retail Chain Outlets
Products based SCM-Supply Chain Mgmt industries Mfg & distribution Electronic & M business Ten Elements Of Logistics Media, Entertainment &Music Service Based SDM-Services delivery Mgmt Industries
Travel, Tourism, leisure & Event Mgmt
BPO, KPO & Fin. Services
Repairs, Maint.& Post sales services
Export & Import business
ISCM /Global SCM
International Trade Operations
Logistics Managing Logistics change Admin
Motivation, Training, coordin.
TEN BASIC ELEMENTS OF LOGISTICS
Information Systems Forecasting Inventory
Warehousing &Distribution Centres
Material Handling Systems Transportation Protective Packaging Order Processing Purchasing & Sourcing Supply Chain Design
LOGISTICS MANAGEMENT
(IN 21ST CENTURY)
Logistics management refers to creating
(designing, developing,
producing) and operating an integrated system which responds to customer
expectations by making available required quantity of required quality
products and services as and when required (Time,
place & speed) at the least possible costs.
(Value Chain; Value Engineering; Business process Engineering; products, funds and
information flows; paradigm shift in the way business is done)
WHAT IS A SUPPLY CHAIN?
P&G or other manufacturer
Jewel or third party DC
Jewel Supermarket
Customer wants detergent and goes to Jewel
Plastic Producer
Tenneco Packaging
Chemical manufacturer (e.g. Oil Company)
Chemical manufacturer (e.g. Oil Company)
Paper Manufacturer
Timber Industry
FLOWS IN A SUPPLY CHAIN
Information Product
Customer
Funds
doc_538371305.ppt
Logistics and Supply Chain Management
LOGISTICS & SUPPLY CHAIN MANAGEMENT
LOGISTICS MANAGEMENT
(IN 21ST CENTURY)
Logistics management refers to creating (designing, developing, producing) and operating an integrated system which responds to customer expectations by making available required quantity of required quality
products and services as and
place & speed) at the least possible
when required (Time, costs.
EVOLUTION OF LOGISTICS MANAGEMENT
Period Logistics Evolution Era
Till1950s Independent Business Function
1960s 1980s 1990s Limited Internal integration Fully Internally Integrated Function Externally integrated Function
2000+
IT integrated process function
INDEPENDENT BUSINESS FUNCTION ERA (TILL 1950S)
Long history of application in wars but no formal concepts or theory for business existed. Post war-large demands and acute shortages of products Mindset-Increased capacities and high volume production Main object- maximize profit by volume sales Role of logistics limited to warehousing & transportation of raw materials and finished products. “Production Focus”
INDEPENDENT FUNCTIONAL STRUCTURE
Chief Executive
Manufacturing -Prod. scheduling -Plant location -RM purchases -Factory transport -Inventory mgmt. -Packaging -Work in process
Sales & Marketing
Finance &Control
-Sales forecasting -Depot locations and operations -Depot stock levels -Delivery transports -Distribution channels
-Order processing -Use of computers -Credit controls -Investments in inventories -Operational research
LIMITED INTERNAL INTEGRATION ERA (1960-70S)
Recession of 1958 Plentiful of products, very sluggish demand, severe price competition Business focus- price based competition and cost controls Limited Internal Integration of-
Materials Management and Distribution Management. “Focus: Cost Control”
LIMITED INTERNALLY INTEGRATED FUNCTIONAL STRUCTURE
Chief Executive Manufacturing -Prod. scheduling -Industrial Eng. -in-plant storage Sales & Marketing -Sales forecasting -Sales operations -Market Intelligence Finance &Control -Credit controls -Facility planning -Budgeting
Materials Management -Material req. planning -Procurement, purchase -Warehousing -RM inventory -In-bound transport
Distribution Management -Out-bound transport -Fin. goods stocks -order processing -Distrib. warehousing
FULLY INTERNALLY INTEGRATED FUNCTIONAL ERA(1980S)
OPEC embargo-steep increase in oil price Sharp increase in transport costs-reduced profitability Very high inflation- significant increase in interest rates Gradual change in economic structure- multinational operations Pressure for increased internal efficiencies
FULLY INTERNALLY INTEGRATED FUNCTIONAL ERA(1980S)..CONTD
Business need- maximize profitable sales volume and cost reduction Major development- Integrated logistics management i.e. Materials
Management, Production Management and Distribution Management
Main Focus- increased productivity, profitability
“ Focus: Internal Efficiencies”
FULLY INTERNALLY INTEGRATED FUNCTIONAL STRUCTURE(1980S)
EXTERNALLY INTEGRATED FUNCTIONAL ERA (1990S)
Rapid privatization, Liberalization and globalization Business scenario becomes still more competitive New pattern for survival- provide most value at least cost Rapid technology development, many new concepts developed- TQM,MRP,DRP, JIT, 3PL & 4PL Major thrust of era- Core Competence and high degree of specialization Do what you can do the best and outsource the rest “ Focus” Core Competencies”
IT INTEGRATED FUNCTIONAL ERA(2000+) (VIRTUAL ORGANIZATION ERA)
Major developments in Information technology Real time and high speed communications becoming common Web based transaction becoming common Supplier, manufacture, seller and customer can make transactions simultaneously on a real time basis E-commerce, VMI, Zero Inventory and many other developments
IT INTEGRATED FUNCTIONAL STRUCTURE
IT INTEGRATED PROCESS STRUCTURE Chief Executive
Logistics Executive
Multi-discipline Logistics Management Team Transaction Management foundation Software
Supplier Relationship Management (SRM)
-Source -Negotiate -Buy -supply collabortn. -Design collaboratn.
Internal Logistics Management (ILM)
Custom Relationship Management (CRM)
-Call centre -Marketing -Selling -Order Management -Customer service
-Strategic
Planning -Demand and supply Planning -Fulfillment -Field service
LOGISTICS MANAGEMENT
OVERVIEW
Retail Chain Outlets
Products based SCM-Supply Chain Mgmt industries Mfg & distribution Electronic & M business Ten Elements Of Logistics Media, Entertainment &Music Service Based SDM-Services delivery Mgmt Industries
Travel, Tourism, leisure & Event Mgmt
BPO, KPO & Fin. Services
Repairs, Maint.& Post sales services
Export & Import business
ISCM /Global SCM
International Trade Operations
Logistics Managing Logistics change Admin
Motivation, Training, coordin.
TEN BASIC ELEMENTS OF LOGISTICS
Information Systems Forecasting Inventory
Warehousing &Distribution Centres
Material Handling Systems Transportation Protective Packaging Order Processing Purchasing & Sourcing Supply Chain Design
LOGISTICS MANAGEMENT
(IN 21ST CENTURY)
Logistics management refers to creating
(designing, developing,
producing) and operating an integrated system which responds to customer
expectations by making available required quantity of required quality
products and services as and when required (Time,
place & speed) at the least possible costs.
(Value Chain; Value Engineering; Business process Engineering; products, funds and
information flows; paradigm shift in the way business is done)
WHAT IS A SUPPLY CHAIN?
P&G or other manufacturer
Jewel or third party DC
Jewel Supermarket
Customer wants detergent and goes to Jewel
Plastic Producer
Tenneco Packaging
Chemical manufacturer (e.g. Oil Company)
Chemical manufacturer (e.g. Oil Company)
Paper Manufacturer
Timber Industry
FLOWS IN A SUPPLY CHAIN
Information Product
Customer
Funds
doc_538371305.ppt