Supply Chain Logistics Management,Chapter 1: Twenty-first Century Supply Chains Yanhong Hou,Generalized Supply Chain Model,1-2,McGraw-Hill/Irwin,Supply Chain Logistics Management, First Edition. Bowersox, Closs, and Cooper. Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.,What is a supply chain?,Customer wants detergent and goes to Jewel,Jewel Supermarket,Jewel or third party DC,P&G or other manufacturer,Plastic Producer,Chemical manufacturer (e.g. Oil Company),Tenneco Packaging,Paper Manufacturer,Timber Industry,Chemical manufacturer (e.g. Oil Company),Anticipatory Business Model,Response-based Business Model,The 21st Century Supply Chain,Managing the modern supply chain is a job that involves specialists in manufacturing, purchasing, and distribution, of course. But today it is also vital to the work of CFOs, CIOs, operations and customer service executives, and certainly chief executives. Changes in supply chain management have been truly revolutionary, and the pace of progress shows no sign of moderating. In our increasingly interconnected and interdependent global economy, the process of delivering supplies and finished goods (and information and other business services) from one place to another is accomplished by means of mind-boggling technological innovations, clever new applications of old ideas, seemingly magical mathematics, powerful software, and old-fashioned concrete, steel, and muscle.,Supply Chain Logistics Management,Chapter 2: Logistics,Source: Robert V. Delaney, 11th Annual “State Of Logistics Report” June 5, 2000,1980 GDP $2.88 trillion Logistics Cost $451 billion 15.7% of GDP Trans. Cost $214 billion,2007 GDP $13.84 trillion Logistics Cost $1398billion 10.1% of GDP Trans. Cost $857 billion,$ billion,United States Logistics Costs,Integrated Logistics,Order Processing,Inventory,Transportation,Facility Network,Warehousing Material Handling Packaging,Logistical Integration,Market Distribution Operating Concerns,Market Distribution: Activities related to providing customer service. Requires performing order receipt and processing, deploying inventories, storage and handling, and outbound transportation within a supply chain. Includes the responsibility to coordinate with marketing planning in such areas as pricing, promotional support, customer service levels, delivery standards, handling return merchandise, and life-cycle support. The primary market distribution objective is to assist in revenue generation by providing strategically desired customer service levels at the lowest total cost.,Manufacturing Support Operating Concerns,Manufacturing Support: Activities related to planning, scheduling, and supporting manufacturing operations. Requires master schedule planning and performing work-in-process storage, handling, transportation, and time phasing of components. Includes the responsibility for storage of inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement between manufacturing and market distribution operations.,Procurement Operating Concerns,Procurement: Activities related to obtaining products and materials from outside suppliers. Requires performing resource planning, supply sourcing, negotiation, order placement, inbound transportation, receiving and inspection, storage and handling, and quality assurance. Includes the responsibility to coordinate with suppliers in such areas as scheduling, supply continuity, hedging, and speculation, as well as research leading to new sources or programs. The primary procurement objective is to support manufacturing or resale organizations by providing timely purchasing at the lowest total cost.,Logistics Information Requirements,Echeloned Structured Logistics,Echeloned Structured Logistics,Flexible Echeloned Structured Logistics,Process View: Cycle View of SCs,Customer Order Cycle,Replenishment Cycle,Manufacturing Cycle,Procurement Cycle,Customer,Retailer,Distributor,Manufacturer,Supplier,interface,interface,interface,interface,Logistical Performance Cycles,Multi-Echeloned Flexible Network,Customer Order Cycle,At the customer/retailer interface Includes all processes directly involved in receiving and filling the customers order: Customer arrival Customer order entry Customer order fulfillment Customer order receiving,Basic Market Distribution Performance-Cycle Activities,Replenishment Cycle,At the retailer /distributor interface Includes all processes involved in replenishing retailer inventory: Retailer order trigger Retailer order entry Retailer order fulfillment Retailer order receiving,Manufacturing Cycle,At the distributor/manufacturer interface Includes all processes involved in replenishing distributor (or retailer) inventory: Order arrival from distributor, retailer, or customer Production scheduling Manufacturing and shipping Receiving at the distributor, retailer, or customer,Procurement Cycle,At the manufacturer/supplier