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Confidentiality/date line: 13pt Arial Regular, white Maximum length: 1 line Information separated by vertical strokes, with two spaces on either side Disclaimer.

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Presentation on theme: "Confidentiality/date line: 13pt Arial Regular, white Maximum length: 1 line Information separated by vertical strokes, with two spaces on either side Disclaimer."— Presentation transcript:

1 Confidentiality/date line: 13pt Arial Regular, white Maximum length: 1 line Information separated by vertical strokes, with two spaces on either side Disclaimer information may also be appear in this area. Place flush left, aligned at bottom, 8-10pt Arial Regular, white Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Indications in black = Optional elements Copyright: 10pt Arial Regular, white Logistics Management Introduction to the Course Jing Yuan Feb, 2012

2 Introduce Yourself  Let’s me know who you are.  What’s logistics management?  Supply chain management Vs. logistics management  …

3 Outline  Introduce yourself  Who I am  Course introduction –Course description –Learning objectives –Textbooks –Grading policy –Schedules

4 Outline  Introduce yourself  Who I am  Course introduction –Course description –Learning objectives –Textbooks –Grading policy –Schedule

5 Course description  An introductory course in the analysis, design and operation of logistics and supply chain  Presented through lectures along with several case studies and experiments  The lectures consist of nine parts

6 Learning objectives  Knowledge the strategic role of the supply chain  An understanding of logistic systems & their management problems  Ability to devise workable solutions in business situations

7 Textbooks  Textbook –Harrison, A. and Hoek, R. V. (2010) Logistics Management and Strategy, third edition, 中国 人民大学出版社  References (not required) –Christopher, M. (2006) Logistics and Supply Chain Management: Creating Value-adding Network, third edition, 电子工业出版社 – 张余华,现代物流管理,清华大学出版社, 2010 年。

8 Lecture Organization  Lecturing  Videos  Group exercises  Case discussion  Case study presentations

9 Grading Policy  Grading –Assignment and Quiz 10% –Midterm 20% –Final Project 70%  Midterm –Case study –Final presentation  Final project –A closed examination held in the last week of term

10 Schedule  Lectures – 14 weeks  Case study presentations – 2 weeks  Experiments – 2 weeks

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

13  Seven-eleven convenience store –Describe the key logistics processes at –What differences between the early reform and the regional distribution center at –What do you think are the main logistics challenges in running the 7-11 operation. Case study

14 Centralized distribution No distribution center Built its own distribution center---joint distribution First stageSecond stageThird stage

15 Key issues 11 What is supply chain, and how is it structured? 22 What is the purpose of a supply chain?

16

17 The Supply Chain Concept  Development of the Concept –Total systems cost - remains an important element of logistics analysis. –Outbound logistics – the warehousing and distribution of finished goods. –Inbound logistics – the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. –Value chain analysis integrated logistics activities.

18 Business Logistics in a Firm

19  A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage. The Supply Chain management Concept DefinitionDefinition Planning and controlling all of the processes that link partners in a supply chain together in order to serve needs of the end-customer.

20 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. Supply chain: structure and tiering

21 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 DefinitionDefinition The task of coordinating material flow and information flow across the supply chain.

23 Activity 1 WheatFlour PralineWafers Chocolate Confectionery manufacturer Packing Creamery (milk) Cocoa beans Sugar Vegetable oil Cocoa butter Lecithin Emulsifiers, Salt, etc. Printed materials AluminiumFiberboard 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 11 What is the relationship between material flow and information flow?

26 Case study: Seven-eleven

27 Case study: Seven-eleven’s distribution strategy  Delivery arrives from over 200 plants  Delivery is cross docked at DC (over 80 DCs for food)  Food DCs store no inventory  Combined delivery system: frozen foods, chilled foods, room temperature and hot foods  11 truck visits per store per day (compared to 70 in 1974)  No supplier (not even coke!) delivers direct

28 Case study: Seven-eleven ’ s Information Strategy  Quick access to up to date information (as contrasts with data) –High speed data network linking stores, headquarters, DCs and suppliers –Store hardware –Store computer –POS registers linked to store computer –Graphic Order Terminals –Scanner terminals for receiving

29 Integrated Logistics Management

30 Material and information flow

31 Material flow Information flow

32 Activity 2  Describe the material and information flow in the supply network affecting one of the major products in Activity 1.

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

34 Key issues 11 How do products win orders in the marketplace? 22 How does logistics contribute to competitive advantage?

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

36 Creating logistics advantage: controlling variability  Variability undermines the dependability with which a product or service meets target.

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.

38 Activity 3  Compare the details for characteristics of both household appliance and mobile phone’s product lines.  Go on to identify the principal order winners and qualifiers for each product. Vs.

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 M a rk et in g a n d s al e s Ope ratio ns Distri butio n Se rvi ce Finance, Accounting, Information Technology, Human Resources

41 How to Achieving Strategic Fit  Understanding the Customer –Lot size –Response time –Service level –Product variety –Price –Innovation How to measure? Implied Demand Uncertainty

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 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 ManufacturerDistributorRetailerCustomer Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy

46 Drivers of Supply Chain Performance EfficiencyResponsiveness InventoryTransportationFacilitiesInformation Supply chain strategy and structure Drivers Competitive strategy

47 Considerations for Supply Chain Drivers


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