Description
range of activities involved in logistics management; explains what is material management and transportation principles; What are the economic drivers behind logistics. It also includes topics like reverse logistics; types of supply chain; ways of managing supply chain risks and porter's value chain
SUPPLY CHAIN: LOGISTIC & DISTRIBUTION IN CONTEXT
Logistics and Supply Chains
What is Logistics
The total management of the key operational functions in the supply chain – procurement, production and distribution. Procurement includes purchasing and product development. The production function includes manufacturing and assembling, while the distribution function involves warehousing, inventory, transport and delivery.
Logistics and Supply Chains
Logistics : Range of Activities Involved
• Freight fowarding • Customs brokerage • Freight auditing and payment • Vehicle control and communications • Product identifications & tracking • Information systems – optimisation in management
Logistics and Supply Chains
Logistics : Range of Activities Involved
• Transportation services / Brokerage • Transportation equipment / leasing • Private fleet assets / management • Warehousing • Order Management & fulfillment • Cross docking • Value added, assembly & configuration • Site location
Logistics and Supply Chains Materials Management is the planning, organisation and control of all aspects of inventory embracing procurement, warehousing, work in progress and distribution of finished goods.
Logistics and Supply Chains
Logistics and Supply Chains
Logistics : Transport Principles
• Economies of scale : Large capacity transportation vehicle are less costly per unit of freight than smaller capacity vehicle. • Economy of distance : Decrease transportation coast per unit of weight as distance increase. To maximise the size of load and the distance being shipped while still meeting the customer expectation,
Logistics and Supply Chains
Logistics :Transport Mode
• Small Packages • Air Cargo • Truckload • Railroad/ Train • Water • Pipe Line • Intermodal (Combination)
Logistics and Supply Chains
Logistics :Transportation Management
• On-time pick up • On-time delivery • Loss & damage claims • Transit time • Transit time reliability • Equipment availability • Price • Continuous improvement
Logistics and Supply Chains Economic Driver
Distance
Market
Weight
Factors
Liability Density
Handling
Stowability
Logistics and Supply Chains Reverse Logistics is the process of planning, implementation and controlling the efficient, cost effective flow of raw materials, in process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
Logistics and Supply Chains
A Supply Chain is that network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer or consumer.
Types of Supply Chain
Can be classified according to: • Customer/supplier characteristics • Virtuality • Scope • Service • Complexity • Products • Purpose and value
Logistics and Supply Chains
Logistics and Supply Chains
Logistics and Supply Chains
Logistics and Supply Chains
Logistics and Supply Chains
Customer relationship management
Returns management
Customer service management
Product development & commercialisation
Supply Chain Management Demand management – Eight Processes
Supplier relationship management
Order fulfillment
Manufacturing flow management
Logistics and Supply Chains Supply Chain Vulnerability
Cranfield Five Categories of Supply Chain Risk!
Lack of Ownership
Chaos Risks
Decision Risks
J.I.T Relationship Risks
Inertia Risks
Logistics and Supply Chains
Ten ways of Managing Supply Chain Risk
1 2 3 4 5 6 7 8
Diversification Stockpiling
Redundancy
Insurance Supplier selection Supplier development Contractual obligation Collaborative initiatives
9
Rationalisation of the product range
10
Localised sourcing
Logistics and Supply Chains Porter’s Value Chain Model
Five Primary Activities
• Inbound logistics • Operations • Outbound logistics • Marketing and sales • Service
Logistics and Supply Chains Porter’s Value Chain Model
Four Support Activities
• Firm infrastructure • Human resources • Technology development • Procurement
Logistics and Supply Chains
Ten Major Cost Drivers – Value Chains
1 2 3 4 5 6 7 8
Economic or diseconomies of scale Learning and spillovers
Capacity utilisation
Linkages among activities Inter-relationships Degree of vertical integration Timing of market entry Firms policy of cost or differentiation
9
Geographic location
10
Institutional factors
Logistics and Supply Chains
Test the cost reduction strategy for sustainability Main Steps in Strategic Cost Analysis
Ensure cost reduction efforts do not differentiate Develop a strategy lower relative cost position Identify competitor value chains Diagnose the cost drivers of each activity Identify value chain & assign costs & assets to it
Logistics and Supply Chains Supply Chains – Who Runs Them? 45% Logistics or supply manager
20%
Operations or production director
15%
Logistics or supply director
14%
Operations or production manager
Sale, finance or commercial
doc_756155185.pptx
range of activities involved in logistics management; explains what is material management and transportation principles; What are the economic drivers behind logistics. It also includes topics like reverse logistics; types of supply chain; ways of managing supply chain risks and porter's value chain
SUPPLY CHAIN: LOGISTIC & DISTRIBUTION IN CONTEXT
Logistics and Supply Chains
What is Logistics
The total management of the key operational functions in the supply chain – procurement, production and distribution. Procurement includes purchasing and product development. The production function includes manufacturing and assembling, while the distribution function involves warehousing, inventory, transport and delivery.
Logistics and Supply Chains
Logistics : Range of Activities Involved
• Freight fowarding • Customs brokerage • Freight auditing and payment • Vehicle control and communications • Product identifications & tracking • Information systems – optimisation in management
Logistics and Supply Chains
Logistics : Range of Activities Involved
• Transportation services / Brokerage • Transportation equipment / leasing • Private fleet assets / management • Warehousing • Order Management & fulfillment • Cross docking • Value added, assembly & configuration • Site location
Logistics and Supply Chains Materials Management is the planning, organisation and control of all aspects of inventory embracing procurement, warehousing, work in progress and distribution of finished goods.
Logistics and Supply Chains
Logistics and Supply Chains
Logistics : Transport Principles
• Economies of scale : Large capacity transportation vehicle are less costly per unit of freight than smaller capacity vehicle. • Economy of distance : Decrease transportation coast per unit of weight as distance increase. To maximise the size of load and the distance being shipped while still meeting the customer expectation,
Logistics and Supply Chains
Logistics :Transport Mode
• Small Packages • Air Cargo • Truckload • Railroad/ Train • Water • Pipe Line • Intermodal (Combination)
Logistics and Supply Chains
Logistics :Transportation Management
• On-time pick up • On-time delivery • Loss & damage claims • Transit time • Transit time reliability • Equipment availability • Price • Continuous improvement
Logistics and Supply Chains Economic Driver
Distance
Market
Weight
Factors
Liability Density
Handling
Stowability
Logistics and Supply Chains Reverse Logistics is the process of planning, implementation and controlling the efficient, cost effective flow of raw materials, in process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
Logistics and Supply Chains
A Supply Chain is that network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer or consumer.
Types of Supply Chain
Can be classified according to: • Customer/supplier characteristics • Virtuality • Scope • Service • Complexity • Products • Purpose and value
Logistics and Supply Chains
Logistics and Supply Chains
Logistics and Supply Chains
Logistics and Supply Chains
Logistics and Supply Chains
Customer relationship management
Returns management
Customer service management
Product development & commercialisation
Supply Chain Management Demand management – Eight Processes
Supplier relationship management
Order fulfillment
Manufacturing flow management
Logistics and Supply Chains Supply Chain Vulnerability
Cranfield Five Categories of Supply Chain Risk!
Lack of Ownership
Chaos Risks
Decision Risks
J.I.T Relationship Risks
Inertia Risks
Logistics and Supply Chains
Ten ways of Managing Supply Chain Risk
1 2 3 4 5 6 7 8
Diversification Stockpiling
Redundancy
Insurance Supplier selection Supplier development Contractual obligation Collaborative initiatives
9
Rationalisation of the product range
10
Localised sourcing
Logistics and Supply Chains Porter’s Value Chain Model
Five Primary Activities
• Inbound logistics • Operations • Outbound logistics • Marketing and sales • Service
Logistics and Supply Chains Porter’s Value Chain Model
Four Support Activities
• Firm infrastructure • Human resources • Technology development • Procurement
Logistics and Supply Chains
Ten Major Cost Drivers – Value Chains
1 2 3 4 5 6 7 8
Economic or diseconomies of scale Learning and spillovers
Capacity utilisation
Linkages among activities Inter-relationships Degree of vertical integration Timing of market entry Firms policy of cost or differentiation
9
Geographic location
10
Institutional factors
Logistics and Supply Chains
Test the cost reduction strategy for sustainability Main Steps in Strategic Cost Analysis
Ensure cost reduction efforts do not differentiate Develop a strategy lower relative cost position Identify competitor value chains Diagnose the cost drivers of each activity Identify value chain & assign costs & assets to it
Logistics and Supply Chains Supply Chains – Who Runs Them? 45% Logistics or supply manager
20%
Operations or production director
15%
Logistics or supply director
14%
Operations or production manager
Sale, finance or commercial
doc_756155185.pptx