Developing a Logistics Perspective as Part of Supply Chain Management,Martha C. Cooper Professor of Logistics Department of Marketing and Logistics The Ohio State University Modern Logistical & Economy Development International Forum October 23-25, 2001,Overview,What Is Supply Chain Management? Is Supply Chain Management More Than Simply a New Name for Logistics? What is the Role of Logistics in the Domestic Economy? What is the Role of Logistics in the Global Economy? Summary,LOGISTICS MANAGEMENT DEFINED,.the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers requirements.,Council of Logistics Management, 1986,SUPPLY CHAIN MANAGEMENT,is the integration of key business processes from end user through original suppliers, that provides products, services, and information that add value for customers and other stakeholders.,Source: Martha C. Cooper, Douglas M. Lambert, and Janus D. Pagh, “Supply Chain Management: More Than a New Name for Logistics,” The International Journal of Logistics Management, Vol. 8, No. 1, 1997, p. 2. www.IJLM.org,1998 CLM DEFINITION OF LOGISTICS,.is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers requirements.,Council of Logistics Management, 1998; www.CLM1.org,Figure 1 SUPPLY CHAIN MANAGEMENT: Integrating and Managing Processes Across the Supply Chain,Supply Chain Business Processes,Tier 1 Supplier,Tier 2 Supplier,Logistics,Purchasing,Marketing & Sales,R&D,Customer,Consumer/End-user,PRODUCT FLOW,Production,Finance,Manufacturer,Information Flow,Source: Douglas M. Lambert, Martha C. Cooper, and Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2, 1998, p. 2. www.IJLM.org,Product,Price,Marketing Objective:,Logistics Objective:,Allocate resources to the marketing mix in such a manner as to maximize the long-term profitability of the firm.,Minimize Total Costs given the customer service objective where total costs = Transportation Costs +,Warehousing Costs + Order Processing and Information Costs + Lot Quantity Costs +,Inventory Carrying Costs,Promotion,Place Customer Service Levels,Inventory Carrying Costs,Transportation Costs,Warehousing Costs,Order Processing and information Costs,Lot Quantity Costs,Logistics,Marketing,Source: Lambert, Doubles M., James R. Stock, and Lisa M. Ellram, Fundamentals of Logistics Management, Boston: Irwin McGraw-Hill, 1998, www.mhhe.com.,Figure 2 SUPPLY CHAIN MANAGEMENT FRAMEWORK: Elements and Key Decisions,2) What processes should be linked with each of these key supply chain members?,1) Who are the key supply chain members with whom to link processes?,3) What level of integration and management should be applied for each process link?,Supply Chain Business Processes,Supply Chain Network Structure,Supply Chain Management Components,Source: Douglas M. Lambert, Martha C. Cooper, and Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2, 1998. www.IJLM.org,Managed Process Links,Monitor Process Links,Not-Managed Process Links,Non-Member Process Links,n,2,3,1,2,n,1,1,n,2,1,3,n,n,1,1,2,1,n,2,n,1,2,n,1,n,1,n,Tier 1 Customers,Tier 2 Customers,Tier 3 to Consumers/ End-Customers,Tier 2 Suppliers,Tier 1 Suppliers,Tier 3 to Initial suppliers,n,1,Figure 3 Types of Inter-company Business Process Links,Initial Suppliers,Tier 3 to n suppliers,Tier 3 to n customers,Consumers/End-customers,Members of the Focal Companys Supply Chain,Non-Members of the Focal Companys Supply Chain,Focal Company,Source: Douglas M. Lambert, Martha C. Cooper, and Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2, 1998, p. 7. www.IJLM.org,Figure 4 Supply Chain Management: Fundamental Management Components,Source: Douglas M. Lambert, Martha C. Cooper, and Janus D. Pagh, “Supply Chain Management: Implementation Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9, No. 2, 1998, p. 11. www.IJLM.org,What is the Role of Logistics in the Domestic Economy?,Business Environment Issues Trends in US Logistics Measures Implications for Business in General Infrastructure Considerations Information Transportation,Robert V. Delaney a