Murphy_ContemporaryLogistics_12e_ppt_Ch01 and ch05.pptx

logitics

1. Contemporary Logistics Twelfth Edition Chapter 1 An Overview of Logistics Copyright © 2018, 2015, 2011 Pearson Education, Inc. All Rights Reserved.

2. Learning Objectives (1 of 2) 1.1 To discuss the economic impacts of logistics 1.2 To define what logistics is 1.3 To analyze the increased importance of logistics 1.4 To discuss the systems and total cost approaches to logistics

3. Learning Objectives (2 of 2) 1.5 To expose you to logistical relationships within the firm 1.6 To introduce you to marketing channels 1.7 To provide a brief overview of activities in the logistics channel 1.8 To familiarize you with logistics careers

4. Economic Impacts of Logistics Macroeconomic impacts Economic utility Possession utility Form utility Place utility Time utility

5. Table 1.1: The Cost of the Business Logistics System in Relation to a Country’s Gross Domestic Product (GDP) Sources: Various country reports

6. Logistics: What It Is Council of Supply Chain Management Professionals (CSCMP) definition: “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.” 1 1 www.cscmp.org

7. The Increased Importance of Logistics A reduction in economic regulation Changes in consumer behavior Technological advances Advances in retailing Globalization of trade

8. The Systems and Total Cost Approaches to Logistics (1 of 2) Systems approach Compatibility between a company’s goals and objectives and major functional area goals and objectives Interdependence of functional areas Stock-keeping units (SKUs) Interdependence of logistics activities or intra-functional logistics

9. Figure 1.1: Control Over the Flow of Inbound and Outbound Movements

10. The Systems and Total Cost Approaches to Logistics (2 of 2) Total cost approach Cost trade-offs: changes to one activity cause some costs to increase and others to decrease Total logistics concept: integration of all activities into a unified whole that seeks to minimize distribution costs in a manner that supports an organization’s strategic objectives

11. Logistical Relationships within the Firm (1 of 2) PRODUCTION/ OPERATIONS Sample activities: · Quality control · Detailed production scheduling · Equipment maint . · Capacity planning · Work measurement & standards LOGISTICS Sample activities: · Transport · Inventory · Order processing · Materials handling Interface activities: · Product scheduling · Plant location · Purchasing MARKETING Sample activities: · Promotion · Market research · Product mix · Sales force management Interface activities: · Customer service standards · Pricing · Packaging · Retail location Production- logistics interface Marketing- logistics interface Internal Supply Chain CR (2004) Prentice Hall, Inc. 1-21

12. Marketing Channels (1 of 3) Marketing channels refer to “a set of institutions necessary to transfer the title to goods and to move goods from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process.” 2 2 American Marketing Association Dictionary, www.marketingpower.com

13. Marketing Channels (2 of 3) Channel members Manufacturers Wholesalers Retailers

14. Marketing Channels (3 of 3) Ownership channel Covers movement of the title to the goods Negotiation channel Buy and sell agreements are reached Financing channel Payments for goods Promotions channel Promoting a new or existing product Logistics channel Contributes the sorting function to the overall channel process

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16. Activities in the Logistical Channel Customer service Facility location decisions Inventory management Order management Procurement Transportation management Demand forecasting International logistics Materials handling Packaging Reverse logistics Warehousing management

17. 17 Physical distribution Physical supply (Materials management) Business logistics Sources of supply Plants/ operations Customers • Transportation • Inventory maintenance • Order processing • Acquisition • Protective packaging • Warehousing • Materials handling • Information maintenance • Transportation • Inventory maintenance • Order processing • Product scheduling • Protective packaging • Warehousing • Materials handling • Information maintenance

18. Logistics Careers (1 of 2) Entry-level position examples include: Logistics (supply chain) analyst Consultant Customer service manager Fulfillment supervisor

19. Logistics Careers (2 of 2) Second-level position examples include: International logistics manager Supply chain software manager Purchasing manager Transportation manager Warehouse operations manager

20. Key Terms (1 of 2) 3D printing Big-box retailer Co-branding Container Cost trade-offs Disintermediation Economic utility Form utility Humanitarian logistics Landed cost Logistics Marketing channels Mass logistics Materials management Omnichannel retailing

21. Key Terms (2 of 2) Physical distribution Place utility Possession utility Postponement Sorting function Stock-keeping units (SKUs) Stockouts Sustainable products Systems approach Tailored logistics Time utility Total cost approach

22. Contemporary Logistics Twelfth Edition Chapter 5 The Supply Chain Management Concept Copyright © 2018, 2015, 2011 Pearson Education, Inc. All Rights Reserved.

23. © 2008 Prentice Hall 2- 23 About Supply Chains… A supply chain “encompasses all activities associated with the flow and transformation of goods from the raw material stage (extraction), through to the end user, as well as the associated information flows.” Source: Robert B. Handfield and Ernest L. Nichols, Jr., Introduction to Supply Chain Management

24. © 2008 Prentice Hall 2- 24 Figure 2-1: Different Supply Chain Configurations

25. © 2008 Prentice Hall 2- 25 Supply Chain Management Supply chain management is “the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses in the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.” Source: John T. Mentzer et al., “ Defining Supply Chain Management,” Journal of Business Logistics

26. © 2008 Prentice Hall 2- 26 Successful Supply Chains have… an enterprise-to-enterprise point of view a systems approach across all organizations in the supply chain Companies recognize interdependencies Goals and objectives are compatible

27. 1- 27 Logistics Defined Supply Chain Management Defined CR (2004) Prentice Hall, Inc.

28. 1- 28 Evolution of Supply Chain Management CR (2004) Prentice Hall, Inc.

29. Supply Chain Schematic CR (2004) Prentice Hall, Inc. 1-5

30. © 2008 Prentice Hall 2- 30 Figure 2-2: The Supply Chain Operations Reference (SCOR) Model

31. © 2008 Prentice Hall 2- 31 JIT I and II R eplenishment (JIT): An inventory control system that controls material flow into assembly and manufacturing plants by coordinating demand and supply to the point where desired materials arrive just in time for use. (JIT II): Vendor-managed operations taking place within a customer's facility. JIT II was popularized by the Bose Corporation. The supplier reps, called " inplants ," place orders to their own companies, relieving the customer's buyers from this task

32. © 2008 Prentice Hall 2- 32 Globalization of Supply Chains Increasing globalization Lower priced materials and labor Global perspective of companies Development of global competition Extremely difficult to execute due to differences Cultural, economic, and technological Political, spatial, and logistical

33. © 2008 Prentice Hall 2- 33 Key Attributes of Supply Chain Management Customer power Long-term orientation Relational exchanges Transactional exchanges Technology Enhanced communication across organizations

34. 2- 34 Key Attributes of Supply Chain Management Inventory control Bullwhip effect: forecast-driven distribution channels Interactivity, interfunctional , and interorganizational coordination Supply chain councils Coopetition

35. © 2008 Prentice Hall 2- 35 Barriers and obstacles to Supply Chain Management Regulatory and political considerations Lack of top management commitment Reluctance to share, or use, relevant data Incompatible information systems Incompatible corporate cultures Increasing variety of products Decreasing product life cycles Increasingly demanding customers fragmentation of supply chain ownership Globalization Difficulty executing new strategies

36. © 2008 Prentice Hall 2- 36 Supply Chain Management and Integration Long-term, mutually beneficial agreements Partnerships Strategic alliances Third-party arrangements Contract logistics Methods used to integrate Vertical integration Formal contracts Informal agreements

37. © 2008 Prentice Hall 2- 37 Supply Chain Management and Integration Third-Party Logistics (3PL) Logistics outsourcing Contract logistics Fourth-party logistics (4PL) primarily used in global companies Lead logistics provider (LLP) Supply chain software

38. © 2008 Prentice Hall 2- 38 Supply Chain Management and Integration