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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin INTEGRATING SUPPLY CHAIN AND LOGISTICS MANAGEMENT
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Relating marketing Channels, Logistics, and Supply Chain Management Logistics Logistics Logistics management Logistics management Supply chain Supply chain Supply chain management Supply chain management SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Relating marketing channels, logistics management, and supply chain management
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The automotive supply chain
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Supply Chain Management and Marketing Strategy Aligning a Supply Chain with Marketing Strategy Understand the customer Understand the supply chain Harmonize the supply chain with the marketing strategy SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Information’s Role in Supply Chain Responsiveness and Efficiency Electronic data interchanges Total Logistics Cost Concept INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN A SUPPLY CHAIN
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin How total logistics cost varies with number of warehouses used
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Customer Service ConceptCustomer Service INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN A SUPPLY CHAIN
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Supply chain managers balance total logistics cost factors against customer service factors
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Customer Service ConceptCustomer Service Lead Time Quick response Quick response Efficient consumer response Dependability Communication Convenience Customer Service Standards INFORMATION AND LOGISTICS MANAGEMENT OBJECTIVE IN A SUPPLY CHAIN
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Third-party logistics providers Transportation KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages and disadvantages of five modes of transportation
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Transportation Railroads Intermodal transportation Intermodal transportation KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Transportation Motor Carriers Air Carriers and Express Companies Freight Forwarders Warehousing and Materials HandlingMaterials Handling Order Processing KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Inventory Management Reasons for Inventory Inventory Costs Supply Chain Inventory Strategies Just-in-time (JIT) concept Just-in-time (JIT) concept Vendor-managed inventory Vendor-managed inventory CLOSING THE LOOP: REVERSE LOGISTICS REVERSE LOGISTICS KEY LOGISTICS FUNCTIONS IN A SUPPLY CHAIN
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible price. Logistics
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. Logistics Management
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users. Supply Chain
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The integration and organization of information and logistic activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to customers. Supply Chain Management
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Practice of unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto trucks for a particular store. Cross Docking
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Combine proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers. Electronic Data Interchange (EDI)
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return goods handling. Total Logistics Cost
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. Customer Service
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Lag from ordering an item until it is received and ready for use or sale. Also called order cycle time or replenishment time. Lead Time
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An inventory management system designed to reduce the retailer’s lead time, thereby lowering its inventory investment, improving customer service levels, and reducing logistics expense. Quick Response
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Firms that perform most or all of the logistics functions that manufacturers, suppliers, and distributors would normally perform themselves. Third-Party Logistics Providers
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items. Vendor-Managed Inventory
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or sue for repair, remanufacturing, redistribution, or disposal. Reverse Logistics
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Combining different transportation modes to get the best features from each. Intermodal Transportation
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Firms that accumulate small shipments into larger lots and then hire a carrier to move them, usually at reduced rates. Freight Forwarders
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Moving goods over short distances into, within, and out of warehouses and manufacturing plants. Materials Handling
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© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An inventory supply system that operates with very low inventories and requires fast, on-time delivery. Just-In-Time Concept
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