1. Supply Chain Management
Chapter 14

2. Logistics v. Supply Chain Management
Logistics- Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest cost.
SC- A sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users.

3. Why Now? Deregulation Managerial Attention Technology
Competitive Pressures
Increase in Big Business

4. SCM & Strategy Identify the Consumer Understand the Supply Chain
Harmonize the Supply Chain with the Marketing Strategy
Efficient
Customer requirements
Efficient- Inexpensive but slow transportation; economies of scale by producing fewer models; limit assembly and storage facilities
Wal-mart- Low inv.; cross-docking; IT; own trucks
Cust. Req.- Similar platforms, but slightly different; expensive transportation; several manufacturing facilities

5. Information Importance Types Electronic Data Interchanges (EDI)
Extranet
Enterprise Resource Planning (ERP)
EDI- Combine proprietary and telecommunication technologies to exchange invoices, payments, and info among suppliers, manufacturers, and retailers.
Extranet- B2B communication, web/based network

6. Customer Service Dimensions Time Dependability Communication
Order Cycle Time
Quick response
Dependability
Communication
Convenience
Customer Service Standards
LT= Time from order until received. Emphasis on easy reorder, reduce lead time= reduce inventory
Depend= consistent lead time, safe delivery, complete delivery
Conv,- Minimum effort on part of buyer
Customer Service Standards- Written as objectives

7. Order Cycle Time What is it? Why is it important?
AKA Lead time
Why is it important?
How can it be reduced?

8. Total Logistics Cost Concept
Transportation, materials handling and warehousing, inventory, stock outs, order processing, goods handling costs.
Key issues
What if add warehouses? Decrease stockouts and transportation costs, increase handling and warehouses.
Ship in large quantities- Fewer stock outs, increase inventory costs

9. Logistical Functions Logistical functions
Transportation
Warehousing and Materials Handling
Order Processing
Inventory Management
Third-party Logistics Providers
3rd party- firms that take care of these issues that manufacturers, suppliers, and buyers would usually do themselves

10. Transportation Railroads Motor Carriers
Intermodal transportation
Motor Carriers
Air carriers and Express Companies
Freight Forwarders
IT- Combining different modes to get best features of each
FF- Accumulate small shipments into larger lots, then have them moved at a reduced rate

11. Warehousing and Materials Handling/ Order Processing
Types of Warehouses
Storage
Distribution
Materials Handling
Order Processing
Stirage- Come to rest for period of time; dist- timely movement
Mat Handling- Moving goods over short distances into, within, and out of warehouses and manufacturing plants.
2 probs: High labor costs & increasing chance for damage
Source:

12. Inventory Management Reasoning Costs Strategies Capital Inventory
Storage
Risk
Strategies
High inventory v. JIT
Vendor-managed Inventory
Buffer between supply and demand; better service for consumers who want on-demand; production efficiencies; provide hedge against price increases from suppliers; promote purchasing and transportation accts; protect from contingencies like strikes and shortages
Capital- $$ could be spent elsewhere
Inv.- insurance and taxes
Stor.- WH
Risk- Damage, obsolescence
VMI- Vendor decides inventory to go to buyer

13. Reverse Logistics What is it?
Process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or se for repair, remanufacturing, redistribution, or disposal.