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Supply Chain Management

Supply Chain Management. Logistics. Supply Chain Management. Legends of Logistics Dabbawala’s (Video). Supply Chain Management. Logistics is “The process of planning, implementing and controlling the efficient, effective flow and storage of

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Supply Chain Management

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  1. Supply Chain Management Logistics

  2. Supply Chain Management Legends of Logistics Dabbawala’s (Video)

  3. Supply Chain Management Logistics is “The process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of customer Satisfaction” (council of logistics management)

  4. Supply Chain Management • Business Logistics • The planning, implementation, & control of the efficient & effective flow and storage of goods, services, & related information from point of origin to point of use or consumption in order to meet customer requirements • Military Logistics • The design & integration of all aspects of support for the operational capability of the military forces (deployed or in garrison) and their equipment to ensure readiness, reliability, & efficiency

  5. Supply Chain Management • Event Logistics • The network of activities, facilities, and personnel required to organize, schedule, and deploy the resources for an event to take place and to efficiently withdraw after the event

  6. Supply Chain Management • Logistics has existed since the beginning of civilization. Raw material and finished products had always to be moved, though on a small scale. Things began changing with the advance in transportation. Population began moving from rural to urban areas and to business centre. No longer did people live near production centre, nor did production take place near residence centre. The geographical distance between the production point and consumption point increased. And logistics gained importance.

  7. Supply Chain Management THE PURPOSE OF LOGISTICS SYSTEM • Right quantities of the • Right goods to the • Right places at the • Right time in the • Right condition at the • Right cost.

  8. Supply Chain Management A Simple Logistics Channel Market Customers Raw materials supply point Production facility Market Customers Raw materials supply point Market Customers Product Flow

  9. Supply Chain ManagementA Multi-Echelon Logistics Channel Retailer Raw materials supply point Warehouse Retailer Retailer Raw materials supply point Production facility Retailer Warehouse Retailer Raw materials supply point Retailer Product Flow

  10. Supply Chain Management Two Main Types: • Inbound logistics:  The management of materials from suppliers and vendors into production processes or storage facilities. • Outbound Logistics:  The process related to the movement and storage of products from the end of the production line to the end user.

  11. Supply Chain Management Steps toward improving Logistics performance • Make transport a customer service activity instead of a cost • Reduce your stock pipeline to cut costs and improve service (go easy by low inventory) • Pick as soon as you can (pick once, pick right and cut the cost time and error) • Is everything you are doing is really necessary

  12. Supply Chain Management Transportation: • Transport or transportation is the movement of people and goods from one place to another. Industries which have the business of providing actual transport, transport of people or goods and services referred to as transport industries.

  13. Supply Chain Management Basic modes of transport • By Air • By Road • By Train • By Sea

  14. Supply Chain Management Considerations in Transportation • Cost / Rates • Reliability • Safety / Damages • Insurance • Speed / Time • Mode of Transportation • Routes / sectors • Vehicles type • Urgency / Priority • In-house / Outsource

  15. Supply Chain Management

  16. Supply Chain Management 3rd Party Logistic Service providers “Third-party Logistics is simply the use of an outside company to perform all or part of the firm’s materials management and product distribution function.” -- Simchi-Levi (2000)

  17. Supply Chain Management Characteristics of 3PL • Perform outsourced logistics activities • Process management / Multiple activities • More customized services • Long-term commitments (1~ 3 years)

  18. Supply Chain Management • Advantages • Cost reduction • Focus on core competency • Improved efficiency, service and flexibility • Disadvantages • Loss of control • Impact on in-house workforce

  19. Supply Chain Management Current State -- Market Size 3PL market is growing ( $ Billions )

  20. Supply Chain Management Current use of 3PL by industry • Industry • Percentage of 3PL use in different industries Computer Consumer Retail Chemical Medical Auto Source "What's ahead for 3PLs“ Modern Materials Handling, April, 2000

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