Description
PRESENTATION ON LOGISTICS MANAGEMENT
Logistics Management
Introduction to the Course
Jing Yuan Feb, 2008
Introduce Yourself
? Let’s me know who you are. ? What’s logistics management? ? Supply chain management Vs. logistics management ?…
Outline
? Introduce yourself ? Who I am ? Course introduction
– Course description
– Learning objectives – Textbooks – Grading policy – Schedules
Outline
? Introduce yourself ? Who I am ? Course introduction
– Course description – Learning objectives – Textbooks
– Grading policy
– Schedule
Course description
? An introductory course in the analysis, design and operation of logistics and supply chain ? Presented through lectures along with several case studies and experiments ? The lectures consist of nine parts
Learning objectives
? Knowledge the strategic role of the supply chain ? An understanding of logistic systems & their management problems ? Ability to devise workable solutions in business situations
Textbooks
? Textbook
– Harrison, A. and Hoek, R. V. (2006) Logistics Management, second edition, ???????
? References (not required)
– Christopher, M. (2006) Logistics and Supply Chain Management: Creating Value-adding Network, third edition, ??????? – ??????????????????? 2006??
Lecture Organization
? Lecturing ? Videos ? Group exercises ? Case discussion ? Case study presentations
Grading Policy
? Grading
– Assignment and Quiz 10% – Midterm 20%
– Final Project
70%
? Midterm
– Case study – Final presentation
? Final project
– A closed examination held in the last week of term
Schedule
? Lectures
– 14 weeks
? Case study presentations
– 2 weeks
? Experiments
– 2 weeks
Logistics Management
Logistics and supply chain
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
Case study
? Seven-eleven convenience store
– Describe the key logistics processes at 7-11. – What differences between the early reform and the regional distribution center at 7-11.
– What do you think are the main logistics challenges in running the 7-11 operation.
Case study
First stage
Second stage
Third stage
No distribution center
Centralized distribution
Built its own distribution center---joint distribution
Key issues
1
What is supply chain, and how is it structured?
2
What is the purpose of a supply chain?
The Supply Chain Concept
? Development of the Concept
– Total systems cost - remains an important element of logistics analysis. – Outbound logistics – the warehousing and distribution of finished goods. – Inbound logistics – the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. – Value chain analysis integrated logistics activities.
Business Logistics in a Firm
The Supply Chain management Concept
? A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage.
Planning and controlling all of the processes that link partners in a supply chain together in order to serve needs of the end-customer.
Definition
Supply chain: structure and tiering
The process starts with several external suppliers that move milk, cardboard, and plastic to the processing plant. After the milk is processed and packaged, it is delivered to retailers, who sell it to customers. The alternative delivery system is delivery from a warehouse directly to customers’ homes.
Supply chain: structure and tiering
Supply chain can be fairly complex. The supply chain for a car manufacturer includes hundreds of suppliers, dozens of manufacturing plants (for parts) and assembly plants (for cars), dealers, direct business customers, wholesalers, customers, and support functions such as product engineering and purchasing.
Logistics concept
Definition
The task of coordinating material flow and information flow across the supply chain.
Activity 1
Wheat Flour Printed materials Aluminium Fiberboard
Praline
Wafers Confectionery manufacturer
Multiple retailers Packing
Chocolate
Wholesalers
Others (hospital etc.)
End customers
Creamery (milk)
Cocoa beans
Sugar
Vegetable oil
Cocoa butter
Lecithin
Emulsifiers, Salt, etc.
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
Key issue
1
What is the relationship between material flow and information flow?
Case study: Seven-eleven
Case study: Seven-eleven’s distribution strategy
? Delivery arrives from over 200 plants ? Delivery is cross docked at DC (over 80 DCs for food) ? Food DCs store no inventory ? Combined delivery system: frozen foods, chilled foods, room temperature and hot foods ? 11 truck visits per store per day (compared to 70 in 1974) ? No supplier (not even coke!) delivers direct
Case study: Seven-eleven’s Information Strategy
? Quick access to up to date information (as contrasts with data)
– High speed data network linking stores, headquarters, DCs and suppliers
– Store hardware
– – – – Store computer POS registers linked to store computer Graphic Order Terminals Scanner terminals for receiving
Integrated Logistics Management
Material and information flow
Material and information flow
Material flow
Information flow
Activity 2
? Describe the material and information flow in the supply network affecting one of the major products in Activity 1.
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
Key issues
1
How do products win orders in the marketplace?
2
How does logistics contribute to competitive advantage?
Creating logistics advantage: three basic ways
quality time
Logistics advantage
cost
Creating logistics advantage: controlling variability
? Variability undermines the dependability with which a product or service meets target.
Order winners and order qualifiers
Different logistics performance objectives
Order winners
are factors that directly and significantly help products to win orders in the marketplace. Customers regard such factors as key reasons for buying that product or services.
Order qualifiers
are factors that are regarded by the market as an ‘entry ticket’. Unless the product or service meets basic performance standards, it will not be taken seriously.
Activity 3
? Compare the details for characteristics of both household appliance and mobile phone’s product lines. ? Go on to identify the principal order winners and qualifiers for each product.
Vs.
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
The value chain: Linking supply chain and business strategy
Business Strategy
M Supply Chain Strategy a New Product Marketing rk Strategy Strategy et in New Marketing g Ope Distri Se New product Product and Operations a ratio butio rvi Development Development Sales n ns n ce d s Information Technology, Human Resources Finance, Accounting, al e s
How to Achieving Strategic Fit
? Understanding the Customer
– Lot size
– Response time – Service level – Product variety – Price – Innovation How to measure? Implied Demand Uncertainty
Levels of Implied Demand Uncertainty
Detergent High Fashion
Customer Need
Price Responsiveness
Low
High
Implied Demand Uncertainty
Understanding the Supply Chain: CostResponsiveness Efficient Frontier
Responsiveness
High
Low
Cost
High Low
Achieving Strategic Fit
Responsive supply chain
Responsiveness spectrum
Efficient supply chain Certain demand Implied uncertainty spectrum Uncertain demand
Strategic Scope
Suppliers Manufacturer Distributor Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy Retailer Customer
Drivers of Supply Chain Performance
Competitive strategy
Efficiency
Responsiveness
Supply chain strategy and structure
Inventory
Transportation
Facilities
Information
Drivers
Considerations for Supply Chain Drivers
Driver Inventory Transportation Facilities Information Efficiency Cost of holding Consolidation Responsiveness Availability Speed
Consolidation / Proximity / Dedicated Flexibility What information is best suited for each objective
doc_832652166.ppt
PRESENTATION ON LOGISTICS MANAGEMENT
Logistics Management
Introduction to the Course
Jing Yuan Feb, 2008
Introduce Yourself
? Let’s me know who you are. ? What’s logistics management? ? Supply chain management Vs. logistics management ?…
Outline
? Introduce yourself ? Who I am ? Course introduction
– Course description
– Learning objectives – Textbooks – Grading policy – Schedules
Outline
? Introduce yourself ? Who I am ? Course introduction
– Course description – Learning objectives – Textbooks
– Grading policy
– Schedule
Course description
? An introductory course in the analysis, design and operation of logistics and supply chain ? Presented through lectures along with several case studies and experiments ? The lectures consist of nine parts
Learning objectives
? Knowledge the strategic role of the supply chain ? An understanding of logistic systems & their management problems ? Ability to devise workable solutions in business situations
Textbooks
? Textbook
– Harrison, A. and Hoek, R. V. (2006) Logistics Management, second edition, ???????
? References (not required)
– Christopher, M. (2006) Logistics and Supply Chain Management: Creating Value-adding Network, third edition, ??????? – ??????????????????? 2006??
Lecture Organization
? Lecturing ? Videos ? Group exercises ? Case discussion ? Case study presentations
Grading Policy
? Grading
– Assignment and Quiz 10% – Midterm 20%
– Final Project
70%
? Midterm
– Case study – Final presentation
? Final project
– A closed examination held in the last week of term
Schedule
? Lectures
– 14 weeks
? Case study presentations
– 2 weeks
? Experiments
– 2 weeks
Logistics Management
Logistics and supply chain
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
Case study
? Seven-eleven convenience store
– Describe the key logistics processes at 7-11. – What differences between the early reform and the regional distribution center at 7-11.
– What do you think are the main logistics challenges in running the 7-11 operation.
Case study
First stage
Second stage
Third stage
No distribution center
Centralized distribution
Built its own distribution center---joint distribution
Key issues
1
What is supply chain, and how is it structured?
2
What is the purpose of a supply chain?
The Supply Chain Concept
? Development of the Concept
– Total systems cost - remains an important element of logistics analysis. – Outbound logistics – the warehousing and distribution of finished goods. – Inbound logistics – the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. – Value chain analysis integrated logistics activities.
Business Logistics in a Firm
The Supply Chain management Concept
? A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage.
Planning and controlling all of the processes that link partners in a supply chain together in order to serve needs of the end-customer.
Definition
Supply chain: structure and tiering
The process starts with several external suppliers that move milk, cardboard, and plastic to the processing plant. After the milk is processed and packaged, it is delivered to retailers, who sell it to customers. The alternative delivery system is delivery from a warehouse directly to customers’ homes.
Supply chain: structure and tiering
Supply chain can be fairly complex. The supply chain for a car manufacturer includes hundreds of suppliers, dozens of manufacturing plants (for parts) and assembly plants (for cars), dealers, direct business customers, wholesalers, customers, and support functions such as product engineering and purchasing.
Logistics concept
Definition
The task of coordinating material flow and information flow across the supply chain.
Activity 1
Wheat Flour Printed materials Aluminium Fiberboard
Praline
Wafers Confectionery manufacturer
Multiple retailers Packing
Chocolate
Wholesalers
Others (hospital etc.)
End customers
Creamery (milk)
Cocoa beans
Sugar
Vegetable oil
Cocoa butter
Lecithin
Emulsifiers, Salt, etc.
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
Key issue
1
What is the relationship between material flow and information flow?
Case study: Seven-eleven
Case study: Seven-eleven’s distribution strategy
? Delivery arrives from over 200 plants ? Delivery is cross docked at DC (over 80 DCs for food) ? Food DCs store no inventory ? Combined delivery system: frozen foods, chilled foods, room temperature and hot foods ? 11 truck visits per store per day (compared to 70 in 1974) ? No supplier (not even coke!) delivers direct
Case study: Seven-eleven’s Information Strategy
? Quick access to up to date information (as contrasts with data)
– High speed data network linking stores, headquarters, DCs and suppliers
– Store hardware
– – – – Store computer POS registers linked to store computer Graphic Order Terminals Scanner terminals for receiving
Integrated Logistics Management
Material and information flow
Material and information flow
Material flow
Information flow
Activity 2
? Describe the material and information flow in the supply network affecting one of the major products in Activity 1.
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
Key issues
1
How do products win orders in the marketplace?
2
How does logistics contribute to competitive advantage?
Creating logistics advantage: three basic ways
quality time
Logistics advantage
cost
Creating logistics advantage: controlling variability
? Variability undermines the dependability with which a product or service meets target.
Order winners and order qualifiers
Different logistics performance objectives
Order winners
are factors that directly and significantly help products to win orders in the marketplace. Customers regard such factors as key reasons for buying that product or services.
Order qualifiers
are factors that are regarded by the market as an ‘entry ticket’. Unless the product or service meets basic performance standards, it will not be taken seriously.
Activity 3
? Compare the details for characteristics of both household appliance and mobile phone’s product lines. ? Go on to identify the principal order winners and qualifiers for each product.
Vs.
1
2 3 4
logistics and Supply chain
Material and information flow
Competing through logistics
Logistics strategy
The value chain: Linking supply chain and business strategy
Business Strategy
M Supply Chain Strategy a New Product Marketing rk Strategy Strategy et in New Marketing g Ope Distri Se New product Product and Operations a ratio butio rvi Development Development Sales n ns n ce d s Information Technology, Human Resources Finance, Accounting, al e s
How to Achieving Strategic Fit
? Understanding the Customer
– Lot size
– Response time – Service level – Product variety – Price – Innovation How to measure? Implied Demand Uncertainty
Levels of Implied Demand Uncertainty
Detergent High Fashion
Customer Need
Price Responsiveness
Low
High
Implied Demand Uncertainty
Understanding the Supply Chain: CostResponsiveness Efficient Frontier
Responsiveness
High
Low
Cost
High Low
Achieving Strategic Fit
Responsive supply chain
Responsiveness spectrum
Efficient supply chain Certain demand Implied uncertainty spectrum Uncertain demand
Strategic Scope
Suppliers Manufacturer Distributor Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy Retailer Customer
Drivers of Supply Chain Performance
Competitive strategy
Efficiency
Responsiveness
Supply chain strategy and structure
Inventory
Transportation
Facilities
Information
Drivers
Considerations for Supply Chain Drivers
Driver Inventory Transportation Facilities Information Efficiency Cost of holding Consolidation Responsiveness Availability Speed
Consolidation / Proximity / Dedicated Flexibility What information is best suited for each objective
doc_832652166.ppt