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Business Logistics and Supply Chain Overview

This document discusses business logistics and supply chain management. It defines logistics as planning, implementing, and controlling the flow of materials and information from origin to consumption, and defines supply chain management as integrating activities associated with transforming and transporting goods from raw materials to end users. The supply chain includes all activities from sourcing materials to delivering finished goods to customers. Effective logistics and supply chain management are vital for businesses to operate efficiently and satisfy customer needs.

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Laila Naqvi
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156 views10 pages

Business Logistics and Supply Chain Overview

This document discusses business logistics and supply chain management. It defines logistics as planning, implementing, and controlling the flow of materials and information from origin to consumption, and defines supply chain management as integrating activities associated with transforming and transporting goods from raw materials to end users. The supply chain includes all activities from sourcing materials to delivering finished goods to customers. Effective logistics and supply chain management are vital for businesses to operate efficiently and satisfy customer needs.

Uploaded by

Laila Naqvi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
  • Business Logistics/Supply Chain—A Vital Subject
  • Logistics and Supply Chain Management Definitions
  • Evolution of Supply Chain Management
  • Supply Chain Schematic
  • The Logistics/SC Mission
  • Strategy and Management Interest
  • Critical Customer Service Loop
  • Wal-Mart Wins with Logistics
  • Scope of the Supply Chain for Most Firms

Business Logistics/Supply

ChainA Vital Subject

The supply chain is simply another way of


saying the whole process of business.

Chapter 1
CR (2004) Prentice Hall, Inc.
1-1
The Immediate Supply Chain for an Individual Firm

Transportation Transportation Customers


Warehousing

Information
flows
Factory

Transportation

Vendors/plants/ports
Warehousing Transportation

CR (2004) Prentice Hall, Inc. 1-2


Logistics Defined
Logistics is the process of planning, implementing and
controlling the efficient, cost-effective flow and storage
of raw materials, in-process inventory, finished goods
and related information from the point of origin to point
of consumption for the purpose of conforming to
customer requirements.
Council of Logistics Management

Supply Chain Management Defined


SCM is the integration of all activities associated with the
flow and transformation of goods from raw materials
through to end user, as well as information flows, through
improved supply chain relationships, to achieve a
sustainable competitive advantage.
Handfield and Nichols
CR (2004) Prentice Hall, Inc.
1-3
Evolution of Supply Chain Management
Activity fragmentation to 1960 Activity Integration 1960 to 2000 2000+

Demand forecasting

Purchasing

Requirements planning
Purchasing/
Production planning Materials
Management
Manufacturing inventory

Warehousing
Logistics
Material handling

Packaging

Finished goods inventory Supply Chain


Physical Supply Chain
Management
Distribution Management
Distribution planning

Order processing

Transportation

Customer service

Strategic planning

Information services

Marketing/sales

Finance
1-4
CR (2004) Prentice Hall, Inc.
Supply Chain Schematic

CR (2004) Prentice Hall, Inc. 1-5


The Logistics/SC Mission

Getting the right goods or services


to the right place, at the right time,
and in the desired condition at the
lowest cost and highest return on
investment.

CR (2004) Prentice Hall, Inc.


1-6
A Revised Strategy is Generating
Great Top Management Interest
Historical perspective of distribution:
The last frontier of cost economies
Peter Drucker, 1962
The contemporary view:
Distribution is a new frontier for demand
generationa competitive weapon.

Both views are


now important!
CR (2004) Prentice Hall, Inc.
1-7
Critical Customer Service
Loop
Customer order processing (and
transmittal)

Transportation
Customers

Inventory
or supply source

CR (2004) Prentice Hall, Inc.


1-8
Costs are lower than K-Mart or
Target Stores
CEO is a former logistician
Wal-Mart is the largest retailer in
the world!
CR (2004) Prentice Hall, Inc.
1-9
Scope of the Supply Chain for Most Firms
Business logistics

Physical supply Physical distribution


(Materials management)

Sources of Plants/
Customers
supply operations
Transportation Transportation
Inventory maintenance Inventory maintenance
Order processing Order processing
Acquisition Product scheduling
Protective packaging Protective packaging
Warehousing Warehousing
Materials handling Materials handling
Information maintenance Information maintenance

Focus firms internal supply chain 1-14


CR (2004) Prentice Hall, Inc.

1-1 Business Logistics/Supply Chain—A Vital Subject The supply chain is simply another way of saying “the whole process of
Warehousing Warehousing Transportation Transportation Vendors/plants/ports Transportation Factory Transportation Customers In
1-3 Logistics Defined Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow
1-4 Demand forecasting Purchasing Requirements planning Production planning Manufacturing inventory Warehousing Material hand
Supply Chain Schematic CR (2004) Prentice Hall, Inc. 1-5
1-6 The Logistics/SC Mission Getting the right goods or services to the right place, at the right time, and in the desired
1-7 A Revised Strategy is Generating Great Top Management Interest Historical perspective of distribution: “The last frontie
1-8 Customers Transportation Inventory or supply source Customer order processing (and transmittal) Customers Transportation
1-9Wal-MartWins with Logistics! CR (2004) Prentice Hall, Inc. •Costs are lower than K-Mart or Target Stores •CEO is a former
Scope of the Supply Chain for Most Firms Physical distribution Physical supply (Materials management) Business logistics Sour

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