© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-8

FIGURE 16-1 FIGURE 16-1 Relating logistics management and supply chain management to supplier networks and marketing channels

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-9

SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT

• Sourcing, Assembling, and Delivering a New Car: The Automotive Supply Chain

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-10

FIGURE 16-2 FIGURE 16-2 The automotive supply chain

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-11

FIGURE 16-AFIGURE 16-A Paint industry supply chain

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-15

SIGNIFICANCE OF SUPPLY CHAIN AND LOGISTICS MANAGEMENT

Cross-Docking

• Dell: A Responsive Supply Chain

• Wal-Mart: An Efficient Supply Chain

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-21

OBJECTIVE OF INFORMATIONAND LOGISTICS MANAGEMENT

IN A SUPPLY CHAIN

Time

• Customer Service Concept

• Lead Time (Order Cycle or Replenishment Time)

• Quick Response or

• Efficient Consumer Response

• Total Logistics Cost Concept

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-22

FIGURE 16-3 FIGURE 16-3 How total logistics cost varies with numbers of warehouses used

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-23

FIGURE 16-4 FIGURE 16-4 Supply chain managers balance total logistics cost factors against customer service factors

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MARKETING NEWSNET

For Fashion and Food Merchandising, Haste is as Important as Taste

Slide 16-24

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-25

OBJECTIVE OF INFORMATIONAND LOGISTICS MANAGEMENT

IN A SUPPLY CHAIN

• Customer Service Concept

Dependability

Communication

Convenience

• Customer Service Standards

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-29

Cost

KEY LOGISTICS FUNCTIONS INA SUPPLY CHAIN

• Third-Party Logistics Providers

• Transportation Service Criteria

Time

Capability

Dependability

Accessibility

Frequency

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-30

FIGURE 16-5 FIGURE 16-5 Advantages and disadvantages of five modes of transportation

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-31

Railroads

KEY LOGISTICS FUNCTIONS INA SUPPLY CHAIN

• Third-Party Logistics Providers

• Unit Train

• Transportation

• Intermodal Transportation

• Piggyback or Trailer on Flat-Car (TOFC)

• Containers

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 16-42

ETHICS AND SOCIAL RESPONSIBILITY ALERT

Reverse Logistics and Green Marketing Go Together at Estée Lauder