1. Logistics and Supply Chain Management

2. Logistics
The Oxford English Dictionary defines logistics as "the branch of military science having to do with procuring, maintaining and transporting materiel, personnel and facilities."
Logistics Management defines as “Application of management principles to logistics operations for efficient and cost effective movement of goods and personnel.”

3. Involves entire supply chain Increasing importance of logistics
effective logistics is becoming a key to winning and keeping customers.
logistics is a major cost element for most companies.
the explosion in product variety has created a need for improved logistics management.
information technology has created opportunities for major gains in distribution efficiency.

4. Goals of Logistics system
Provide a Targeted Level of Customer Service at the Least Cost.
Maximize Profits, Not Sales.
Higher Distribution Costs/ Higher Customer Service Levels
Lower Distribution Costs/ Lower Customer Service Levels

5. Logistics Functions Order Processing Warehousing Inventory Management
Transportation
Design system to minimize costs of attaining objectives

6. Transportation Modes Rail Truck Water Pipeline Air
Nation’s largest carrier, cost-effective
for shipping bulk products, piggyback
Truck
Flexible in routing & time schedules, efficient
for short-hauls of high value goods
Water
Low cost for shipping bulky, low-value
goods, slowest form
Pipeline
Ship petroleum, natural gas, and chemicals
from sources to markets
Air
High cost, ideal when speed is needed or to
ship high-value, low-bulk items

7. Supply Chain Management
According to the Council of Supply Chain Management Professionals (CSCMP), Supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management.
it also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.

8. WHAT IS SUPPLY CHAIN MANAGEMENT
" Is the strategic management of activities involved in
the acquisition and conversion of materials to finished
products delivered to the customer"
Supplier
Management
Material Flow
Information Flow
Customer
Management
Schedule /
Resources
Conversion
Stock
Deployment
Delivery
Leads to Business Process Integration

9. SUPPLY CHAIN INCLUDES :
MATERIAL FLOWS
INFORMATION FLOWS
FINANCIAL FLOWS
A set of approaches used to efficiently integrate
Suppliers
Manufacturers
Warehouses
Distribution centers
So that the product is produced and distributed
In the right quantities
To the right locations
And at the right time
System-wide costs are minimized and
Service level requirements are satisfied

10. Supply Chain Structure
Information Flow
Raw Materials
RETAILER
FACTORY DC
RDC
SUPPLIER
Finished Goods

11. Relationship between Facilities and Functions along the Wal-Mart Supply Chain

12. The steps involved Step1- Designing the supply chain
Determine the supply chain network
Identify the levels of service required

13. Step 2 - Optimizing the supply chain
Determine pathways from suppliers to the end customer
Customer markets to Distribution centers
Distribution centers to production plants
Raw material sources to production plants
Identify constraints at vendors, plants and distribution centers
Get the big picture
Plan the procurement, production and distribution of product groups rather than individual products in large time periods- quarters or years

14. Step 3- Material flow planning
Determine the exact flow and timing of materials
Arrive at decisions by working back from the projected demand through the supply chain to the raw material resources
Techniques
ERP

15. Step 4 - Transaction processing and short term scheduling
Customer orders arrive at random
This is a day to day accounting system which tracks and schedules every order to meet customer demand
Order entry, order fulfillment and physical replenishment

16. Global Supply Chain
To compete globally requires an effective supply chain
Information technology is an “enabler” of global trade
Nations form trading groups
No tariffs or duties