SUPPLY CHAIN AND LOGISTICS MANAGEMENT Sales and Distribution Management Marketing 3345
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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
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