Logistics

MG412 Lecture Good Afternoon All!

MG412 2014

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Chapter -1

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Overview of 21st-century supply chains

• • • • • • • SCM The supply chain revolution Why integration creates value Generalized supply chain model Responsiveness Financial sophistication Globalization

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The supply chain revolution has reshaped contemporary strategic thinking

• Supply Chain Management

– Consists of firms collaborating to leverage strategic positioning and to improve operating efficiency

• Supply Chain Strategy

– Is a channel and business organizational arrangement based on acknowledge dependency and collaboration

• Logistics

– The work required to move and geographically position inventory

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What is Supply Chain Management?

• Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements.

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Two Other Formal Definitions

The design and management of seamless, value-added process across organizational boundaries to meet the real needs of the end customer Institute for Supply Management Managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer The Supply Chain Council

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Evolution of Supply Chain Management

Further Refinement of SCM Capabilities

SCM Formation/ Extensions JIT, TQM, , Alliances

Inventory Management/Cost Optimization

Traditional Mass Manufacturing

1950s

1960s

1970s

1980s

1990s

2000s

Beyond

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Cisco’s Value Network

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SCM Definition

Material Flow

Supplier Source

Converter Distributor

Retailer

Converter Supplier Distributor End-User...