© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

INTEGRATING

SUPPLY CHAIN AND

LOGISTICS

MANAGEMENT

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Relating marketing Channels, Logistics,

and Supply Chain Management

Logistics

Logistics management

Supply chain

Supply chain management

SIGNIFICANCE OF SUPPLY CHAIN

AND LOGISTICS MANAGEMENT

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Relating marketing channels, logistics management,

and supply chain management

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The automotive supply chain

© 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

© 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

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

How total logistics cost varies with number of

warehouses used

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Customer Service Concept

INFORMATION AND LOGISTICS

MANAGEMENT OBJECTIVE

IN A SUPPLY CHAIN

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Supply chain managers balance total logistics cost

factors against customer service factors

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Customer Service Concept

• Lead Time

Quick response

Efficient consumer response

• Dependability

• Communication

• Convenience

• Customer Service Standards

INFORMATION AND LOGISTICS

MANAGEMENT OBJECTIVE

IN A SUPPLY CHAIN

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Third-party logistics providers

• Transportation

KEY LOGISTICS FUNCTIONS

IN A SUPPLY CHAIN

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advantages and disadvantages of five modes of

transportation

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Transportation

• Railroads

Intermodal transportation

KEY LOGISTICS FUNCTIONS

IN A SUPPLY CHAIN

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Transportation

• Motor Carriers

• Air Carriers and Express Companies

• Freight Forwarders

• Warehousing and Materials Handling

• Order Processing

KEY LOGISTICS FUNCTIONS

IN A SUPPLY CHAIN

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

• Inventory Management

• Reasons for Inventory

• Inventory Costs

• Supply Chain Inventory Strategies

Just-in-time (JIT) concept

Vendor-managed inventory

• CLOSING THE LOOP:

REVERSE LOGISTICS

KEY LOGISTICS FUNCTIONS

IN A SUPPLY CHAIN