2. Tactical logistics management and supply chain integration
Chapter 4
Tactical logistics management and supply chain integration

3. Tactical logistics management
This chapter addresses the following four aspects:
Tactical logistics activities
Managing the goods flow
Product supply chain processes
Time management in supply chains

4. Tactical logistics activities
Tactical logistics activities are those that are undertaken to implement and organise functional supply chain activities:
Buying
Making
Moving
Storing
Selling

5. Tactical logistics activities (continued)
The main tactical management objectives in a supply chain are:
Minimising time to convert orders into cash
Minimising the total WIP in the supply chain
Improving pipeline visibility
Improving visibility of demand by each partner
Improving quality
Reducing costs
Improving services

6. Managing the goods flow

7. Managing the goods flow (continued)

8. Product supply chain processes
Push-based supply chain systems
Pull-based supply chain systems
Push-pull-based supply chain systems

9. Identifying the appropriate supply chain approach

10. Implementing a supply chain approach
(Insert Table 4.1)
Characteristics of the push and pull portions of supply chains

11. Product supply chain processes
Push-, pull- and push-pull-based supply chain systems:
Pick and ship to stock
Make to stock
Assemble to order
Make to order
Purchase and make to order
Engineer to order

12. Product supply chain processes (continued)
See Figure 4.4 for customer order decoupling points.
See Table 4.2 for supply chain responses to customer demands.

13. Customer order decoupling points

14. Supply chain responses to customer demands

15. Time management in supply chains
The importance of time:
Time-based competition
Reducing cycle lead time
Reliability or consistency of cycle lead time
Flexibility in order to restore reliability
Causes of long order lead times:
Ambiguous goals and objectives
Batching

16. Time management in supply chains (continued)
Causes of long order lead times (continued):
Excessive controls
Lack of information
Lack of synchronisation in materials movement
Lack of proper training
Limited co-operation
Limited co-ordination

17. Time management in supply chains (continued)
Causes of long order lead times (continued):
Non-value-added activities
Outdated information technology
Poor communication
Poorly designed procedures and forms
Repeating process activities
Serial versus parallel operations
Waiting

18. Time management in supply chains (continued)
Opportunities for production cycle and order lead-time reduction
Requires effective co-ordination between:
Selling
Moving
Manufacturing
Storing and
Buying activities

19. Real-time supply chain scheduling

20. Time management in supply chains (continued)
Process time improvement approach
proposed by Harrington:
1. Establish a time management team.
2. Understand given supply chain process and current cycle time and order lead time.
3. Identify opportunities for time reduction and
on-time delivery improvement.
4. Develop and implement recommendations.
5. Measure performance.
6. Implement continuous improvement efforts.