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1. Logistics Management Introduction to the Course Jing Yuan Feb, 2008

11. Logistics and supply chain Logistics Management

12. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4

14. Case study Centralized distribution No distribution center Built its own distribution center---joint distribution First stage Second stage Third stage

15. Key issues 1 What is supply chain, and how is it structured? 2 What is the purpose of a supply chain?

18. Business Logistics in a Firm

20. Supply chain: structure and tiering The process starts with several external suppliers that move milk, cardboard, and plastic to the processing plant. After the milk is processed and packaged, it is delivered to retailers, who sell it to customers. The alternative delivery system is delivery from a warehouse directly to customers’ homes.

21. Supply chain: structure and tiering Supply chain can be fairly complex. The supply chain for a car manufacturer includes hundreds of suppliers, dozens of manufacturing plants (for parts) and assembly plants (for cars), dealers, direct business customers, wholesalers, customers, and support functions such as product engineering and purchasing.

22. Logistics concept Definition The task of coordinating material flow and information flow across the supply chain.

23. Activity 1 Wheat Flour Praline Wafers Chocolate Confectionery manufacturer Packing Creamery (milk) Cocoa beans Sugar Vegetable oil Cocoa butter Lecithin Emulsifiers, Salt, etc. Printed materials Aluminium Fiberboard Multiple retailers Wholesalers Others (hospital etc.) End customers

24. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4

25. Key issue 1 What is the relationship between material flow and information flow?

26. Case study: Seven-eleven

29. Integrated Logistics Management

30. Material and information flow

31. Material and information flow Material flow Information flow

33. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4

34. Key issues 1 How do products win orders in the marketplace? 2 How does logistics contribute to competitive advantage?

35. Creating logistics advantage: three basic ways Logistics advantage quality time cost

37. Order winners and order qualifiers Order winners are factors that directly and significantly help products to win orders in the marketplace. Customers regard such factors as key reasons for buying that product or services. Different logistics performance objectives Order qualifiers are factors that are regarded by the market as an ‘entry ticket’. Unless the product or service meets basic performance standards, it will not be taken seriously.

39. logistics and Supply chain 1 Material and information flow 2 Competing through logistics 3 Logistics strategy 4

40. The value chain: Linking supply chain and business strategy New Product Development Marketing and Sales Operations Business Strategy New Product Strategy Marketing Strategy Supply Chain Strategy New product Development Marketing and sales Operations Distribution Service Finance, Accounting, Information Technology, Human Resources

42. Levels of Implied Demand Uncertainty Detergent High Fashion Low High Price Responsiveness Customer Need Implied Demand Uncertainty

43. Understanding the Supply Chain: Cost-Responsiveness Efficient Frontier High High Low Low Cost Responsiveness

44. Achieving Strategic Fit Implied uncertainty spectrum Responsive supply chain Efficient supply chain Certain demand Uncertain demand Responsiveness spectrum Zone of Strategic Fit

45. Strategic Scope Suppliers Manufacturer Distributor Retailer Customer Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy

46. Drivers of Supply Chain Performance Efficiency Responsiveness Inventory Transportation Facilities Information Supply chain strategy and structure Drivers Competitive strategy

47. Considerations for Supply Chain Drivers