Supply Chain Logistics Management - ppt video online download 1

Supply Chain Logistics Management. Published by Modified over 3 years ago. Similar presentations. Presentation on theme: "Supply Chain Logistics Management"— Presentation transcript: 1 Supply Chain Logistics Management Chapter 15: Logistics Integration. 2 North American Logistics Geography Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 3 Distribution Network Total Cost Dimensions Expense Components Handling + Inbound Transport DC Handling Inventory Customer Transport ____________ Total Cost Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 4 Definition of Systems Analysis Total integrated effort to accomplish the desired objective A set of interrelationships designed to achieve the desired objective Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 5 Principles of System Integration Total system performance is singularly important Components or parts of system need not have optimum construction A functional relationship exists between components called trade-offs which may enhance or hinder system performance Components linked together in a balanced system will produce greater end results than the sum of individual components Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 6 Cost to cost Cost to service Key Trade-Offs Increase transportation to reduce inventory Lot-size -- Inventory Inventory -- Transportation Cost to service Increased logistics cost to obtain increased service and the potential for more revenue Lead time -- Transportation Product variety -- Inventory Overall SC cost -- SC service Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 7 Transportation Cost Integration (Spatial) Basic economies Economy of size (quantity discount) Economy of distance (tapering principle) Activity based cost Loading and unloading Movement Information Generalized relationship Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 8 Transport Cost as a Function of Distribution Locations Total Transport Inbound Transport Cost Outbound Number of Distribution Locations Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 9 Inventory Cost Integration (Temporal) Basic economies Single location Multiple location Activity based cost Inventory risk Inventory management Storage and handling Generalized relationship Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 10 Graphical Illustration of Locational Impact of Inventory Total Inventory Average Inventory Safety Stock Cycle Stock Stocking Locations Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 11 Total Cost Integration Threshold service (Least cost assignment) Sensitivity analysis Science vs. art Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 12 Logistics Total Cost Curve Number of Distribution Locations Transportation Cost Inventory Carrying Cost Number of Distribution Locations Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 13 Market Strategy Mass marketing Focused marketing One to one marketing Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 14 Launching Supply Chain as a Strategic Resource Focus service to customer segments Emphasize flexibility Leverage through alliances Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.