SUPPLY CHAIN AND LOGISTICS MANAGEMENT Sales and Distribution Management Marketing 3345.

SUPPLY CHAINAND LOGISTICS MANAGEMENT

Sales and Distribution Management

Marketing 3345

SIGNIFICANCE OF SUPPLY CHAINAND LOGISTICS MANAGEMENT

KEY CONCEPTS

Logistics – getting the right amount of the right products to the right place at the right time at the lowest possible cost.

Logistics Management – the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods from the point of origin to the point of consumption to satisfy customers requirements.

Relating logistics management and supply chain management to supplier networks and marketing channels

The automotive supply chain includes thousands of firms that provide the 5,000 or so parts in a typical car

Paint industry supply chain

Aligning a Supply Chainwith Marketing Strategy

• Wal-Mart: An Efficient Supply Chain

• Dell: A Responsive Supply Chain

SIGNIFICANCE OF SUPPLY CHAINAND LOGISTICS MANAGEMENT

SUPPLY CHAIN MANAGEMENT ANDMARKETING STRATEGY

INFORMATION ANDLOGISTICS MANAGEMENT IN A

CUSTOMER-DRIVEN SUPPLY CHAIN

Information’s Role in Supply ChainResponsiveness and Efficiency

• Extranet

• Electronic DataInterchanges (EDIs)

How total logistics cost varies with the number of warehouses used based on inventory costs and transportation costs

Supply chain managers balance total logistics cost factors against customer service factors

INFORMATION AND LOGISTICS MANAGEMENTIN A CUSTOMER-DRIVEN SUPPLY CHAIN

CUSTOMER SERVICE FACTORS

Time

• Lead Time

Order Cycle Time

Replenishment Time

• Quick Response

• Efficient Consumer Response

INFORMATION AND LOGISTICS MANAGEMENTIN A CUSTOMER-DRIVEN SUPPLY CHAIN

CUSTOMER SERVICE STANDARDS

USING MARKETING DASHBOARDSDiagnosing Out-of-Stocks and On-Time Delivery

for Organic Produce

Out-of-Stock (%) and On-Time-Delivery (%)

Out-of-Stock (%) =

# of Outlets Where a Brand/Product is Listed but Unavailable

Total # of Outlets Where a Brand/Product is Listed

On-Time Delivery (%) =

# of Deliveries Achieved in the Timeframe Promised

Total # of Deliveries Initiated in a Time Period

UPS and RyderWhat are third-party logistics providers?

Advantages and disadvantages of five modes of transportation

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

TRANSPORTATION

Railroads

• Containers

• Intermodal Transportation

• Piggy-Back or Traileron Flatcar (TOFC)

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

TRANSPORTATION

Motor Carriers

Air Carriers and Express Companies

Freight Forwarders/Express Companies

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

TRANSPORTATION

Pipelines

Water

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAIN

WAREHOUSING AND MATERIALS HANDLING

Storage Warehouses

Distribution Centers

Materials Handling

KEY LOGISTICS FUNCTIONSIN A SUPPLY CHAININVENTORY MANAGEMENT

Supply Chain Inventory Strategies

• Just-in-Time (JIT) Concept

• Vendor-Managed Inventory (VMI)

CLOSING THE LOOP:REVERSE LOGISTICS

Reverse Logistics