Professional Documents
Culture Documents
Learning Objectives
SCM-2
Warehousing
Transportation
Customers
Information
flows
Factory
Transportation
Vendors/plants/ports
Warehousing
CR (2004) Prentice Hall, Inc.
Transportation
1-2
SCM-4
SCM-5
SCM-6
SCM-7
SCM-8
1-5
SCM-9
SCM-10
Transportation
Customers
Inventory
or supply source
SCM-11
Percent of sales
$/cwt.
3.34%
$26.52
Warehousing
2.02
18.06
Order entry
0.43
4.58
Administration
0.41
2.79
Inventory carrying
1.72
22.25
7.65%
$67.71
Transportation
Total
Logistics cost
are about 10% of
sales w/o
purchasing costs
SCM-12
SCM-13
Physical supply
(Materials management)
Sources of
supply
Physical distribution
Plants/
operations
Transportation
Inventory maintenance
Order processing
Acquisition
Protective packaging
Warehousing
Materials handling
Information maintenance
Customers
Transportation
Inventory maintenance
Order processing
Product scheduling
Protective packaging
Warehousing
Materials handling
Information maintenance
1-14
SCM-14
Key Activities/Processes
Primary
Secondary, or supporting
Warehousing
Materials handling
Acquisition (purchasing)
Protective packaging
Product scheduling
Order processing
Dickson Chiu 2006
SCM-15
Minimize cost
Minimize investment
Maximize customer service
Strategic
Tactical
Operational
SCM-16
Transport decisions
Purchasing and supply
scheduling decisions
Customer
Storage decisions
service goals
The product
Logistics service
Information sys.
Location Strategy
Location decisions
The network planning process
SCM-17
Dispatching
Inventories
Order
processing
Processing
orders, Filling
back orders
Purchasing
Expediting
Space utilization
Order picking
and restocking
SCM-18
Relationship of Logistics to
Marketing and Production
PRODUCTION/
OPERATIONS
Sample activities:
Quality control
Detailed production
scheduling
Equipment maint.
Capacity planning
Work measurement
& standards
Interface
activities:
Product
scheduling
Plant
location
Purchasing
LOGISTICS
Sample
activities:
Transport
Inventory
Order
processing
Materials
handling
Interface
activities:
Customer
service
standards
Pricing
Packaging
Retail
location
Productionlogistics
interface
MARKETING
Sample
activities:
Promotion
Market
research
Product
mix
Sales force
management
Marketinglogistics
interface
SCM-19
Marketing
Relationship of Logistics to
Marketing
Product
Promotion
Price
Logistics
Place-Customer
service levels
Transport
costs
Inventory
carrying costs
Lot quantity
costs
Order processing
and information
costs
Warehousing
costs
SCM-20
Relationship of Logistics to
Production
make-to-order
make-to-stock
Affects total response time for customers
Shares activities such as inventory planning
SCM-21
22
SCM-23
SCM-24
Focus
Company
Suppliers
Customers
Customers/
End users
Suppliers
suppliers
Acquire
Convert
Distribute
SCM-25
Profit
G&A
Increase
Marketing
Logistics
Increase
Tariffs
Overhead
Materials
Materials
Labor
CR (2004) Prentice Hall, Inc.
Labor
Reduction
SCM-26
SCM-27
oo
rdi
n
Int
(In er-fu
tra nct
-or ion
ga
niz al
a ti
on
al)
c
n
rdi
oo
lc
na
tio
iza
an
org
erInt
a ti
on
SUPPLY
CHAIN
MANAGEMENT
on
ati
SCM-28
Increasing Significance of
Logistics
Costs are high
Generate revenue
Improve profit
SCM-29
Contemporary IT Applications in
Logistics Focus of this Course
SCM-30
Mobile technologies
Radio Frequency Identification (RFID)
SCM-31
Summary
32
Summary
SCM-33