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StrategicSupplyChain MaritimeTransportationManagement Coursepreparedby Jean Fran oisPelletierjf pelletier em normandie frandYannAlixy alix em normandie fr Outline ContentIntroductiontotheconceptof Logistics Introductiontotheconceptof SCM HistoricalperspectiveontheevolutionofsupplychainmanagementLogisticalfunctionswithinorganisationsLogisticsprocessesandfunctionsGlobalisationandlogistics SCM Pelletier 2009 Sources Ballou R H 1987 BasicBusinessLogistics PrenticeHallInc EnglewoodCliffs N J 438pages Ballou R H 1985 BusinessLogisticsManagement PlanningandControl PrenticeHallInc EnglewoodCliffs N J 596pages Bowersox D J Closs D J Helferich O K 1986 LogisticalManagement MacmillanPublishingCompany NewYork 586pages Bowersox D J etal 1992 LogisticalExcellence It snotBusinessasusual DigitalPress USA 246pages Christopher Martin 2005 LogisticsandSupplyChainManagement PrenticeHall 305pagesCousins Lamming LawsonandSquire 2008 StrategicSupplyManagement Pearson 308pDornier P H andFender M 2007 LalogistiqueglobaleetleSupplyChainManagement Enjeux principes exemples Editionsdel organisation 463pages Dornieretal 1998 GlobalOperationsandLogistics TextandCases WileyandSons 453pages Gattorna ed etal 2003 GowerHandbookofSupplyChainManagement 5thEdition 692pagesHarrison A vanHoek R 2008 LogisticsManagementAndStrategy CompetingThroughTheSupplyChain PrenticeHall 316pagesKent J L Jr andFlint D J PerspectivesontheEvolutionofLogisticsThought JournalofBusinessLogistics Vol 18No 21997 pages15 29 Laurentie J etal 1994 Logistique d marchesettechniques Afnor Paris 315pagesMagee J F etal 1985 ModernLogisticsManagement IntegratingMarketing ManufacturingandPhysicalDistribution Wiley Sons Toronto 430pages Mathe H andTixier D 1991 Lalogistique Quesais je Paris 126pages Pons J 1997 TransportetLogistique Herm s Paris 314pages Sarkis Joseph ed 2006 GreeningtheSupplyChain Springer 407pagesWood DonaldF etal ContemporaryLogistics415pages SCM Pelletier 2009 WhatisLogistics accordingtotheCSCMP Logisticsmanagementisthatpartofsupplychainmanagementthatplans implements andcontrolstheefficient effectiveforwardandreverseflowandstorageofgoods servicesandrelatedinformationbetweenthepointoforiginandthepointofconsumptioninordertomeetcustomers requirements Outstandingelements Flow forwardandreverseInformational physicalEffectiveandefficientCustomersatisfaction SCM Pelletier 2009 The7rightsoflogistics TherightPRODUCT TherightTIME TherightCLIENT TherightPLACE TherightPRICE TherightQUANTITY TherightCONDITION SatisfiedClient ClientReturns SCM Pelletier 2009 Logisticsactivitiesandfunctions Design Production WarehousingStockmanagement Procurement Distribution Transport Demandevaluationandforecasting After salesservice Informationmanagement Recycling Reuse FeedbackBenchmarkingOptimisation CustomerSatisfaction Theworkoflogisticiansconsistincoordinatingtheseactivitiesinordertomaximisecustomersatisfaction SCM Pelletier 2009 Logistics customersatisfactionobjective Objective Satisfiedclient Processes CoordinationofphysicalflowsCoordinationofinformationalflows Functions Activities NetworkdesignInformationmanagementTransportationmanagementInventorymanagementManagementoflogisticalsupportfunctions SCM Pelletier 2009 AndwhataboutSupplyChainManagement ReviewingthecurrentliteratureonSCM thereisapuzzlingdiversityofinterpretationsandunderstandingsofSCM EachoftheseperspectiveswillleadtospecificgoalsandinthiscoursealsotospecificmetricstomeasuretheperformanceofSCM Source Otto A Kotzab H 2003 Doessupplychainmanagementreallypay Sixperspectivestomeasuretheperformanceofmanagingasupplychain EuropeanJournalofOperationalResearch vol 144 no 2 pp306 321 SCM Pelletier 2009 WhatisSupplyChainManagement CSCMP Supplychainmanagementencompassestheplanningandmanagementofallactivitiesinvolvedinsourcingandprocurement conversion andalllogisticsmanagementactivities Importantly italsoincludescoordinationandcollaborationwithchannelpartners whichcanbesuppliers intermediaries thirdpartyserviceproviders andcustomers Inessence supplychainmanagementintegratessupplyanddemandmanagementwithinandacrosscompanies Outstandingelements ReferencetoachannelandnottoaspecificflowInter organisationalscopeCoordinationbetweenpartnersIncludeslogistics SCM Pelletier 2009 SupplyChainRelationshipSpiral SCM Pelletier 2009 CreationofW Wrelationship value Trust SCphilosophyjointriskandcostReduction Reliability Long termapproachtoperformancebypromotionofqualityandinnovation creativity SynchronizationandConfidence stability Dialogueandsharingofinformation communication AdaptedfromWilding Humphries SupplyChainManagement SCM Pelletier 2009 SCM Pelletier 2009 SCM Pelletier 2009 SCM Pelletier 2009 Thevaluechain Forestryexample Seeds Plants Research Soil Rain Forestmanagement Externalservices Wholesale Sawmill Machines Chemicalproducs Retailing Clients Recycling Wholesale Retail Internationalforwarind Technology Research Energy AdaptadodeKaplinsky Morris FurnitureManufacturing SCM Pelletier 2009 Thelogistics environment Supplier ThirdParty 3PL Fashion Carrier Economics CompetitorCapacity Politics Culture Ecology Policy Regulation Law InternalCapacity Client sChoice Technology SCM Pelletier 2009 Whatisvalue SCM Pelletier 2009 Definingvalue Producervalue LoyaltyofcustomersNonpricesensitivecustomersUnderstanddeliveryordersUservalue ServicequalityAvailabilityofcustomizationSocialexperienceTrustinproducerSustainability SCM Pelletier 2009 Definingvalue Valuehasmultiplecomponents InnovationTransparencyReliability Variability AgilityInformation etc Customersperceivethevalueofcomponentsdifferently Relationshipscanbevalued Knowhow expert referent CoerciveRewardThequalityoftherelationshipcanbringhighersatisfactiontotheclient SCM Pelletier 2009 Definingvalue corecompetencies SCM Pelletier 2009 Valueecologies HearnandPace 2006 Costminimisation ValuemaximisationThechainmetaphorislimitativeValuecreationisacooperativeandcompetitiveprocessEnvironment clientsandenablerscontributetovaluecreationValueisalsoderivedfromexternalitiesChainsdonotcapturetherelationshipbetweencompanyandcustomersValueecology IllustratesnetworksofrelationshipsHolisticviewValuedoesnotrelyexclusivelyintheproductInteractionofcompetitionandcooperationOtherfactors environment contributetothevalueprocessItisanevolutionarymetaphor SCM Pelletier 2009 Logistics SCMasCompetitiveAdvantagefromChristopher2005 Costadvantage DecisivefactorLogisticsenablesthereductionofunitcostsValueadvantage SupplementaryvaluebydifferentiationSupplementaryvaluebyaddedservicesSupplementaryvaluebyavailability SCM Pelletier 2009 WhatisLogistics SCM Pelletier 2009 WhatisLogistics Logisticsasadiscipline StrategicdeploymentoftroopsImplementationofordersgivengeneralsApplicationofmilitarylogisticstrategiestobusinessoperationsBut whatdistinguishes business logistics Thecostofimplementation SCM Pelletier 2009 TheRoots Beforethe1950s businesslogisticspracticallydidnotexistTheorybasedontransportationeconomicsdevelopedbyHenryAdamsacenturybeforeDevelopmentofstrategiesandknowledgebaseontransportationofagriculturalproductsCompanieswerelookingtobuildcheaperitems MassproductionEconomiesofscaleNodifferentiationSeller smarket SCM Pelletier 2009 TheBirthofRock Roll Thedevelopmentofbusinesslogisticstheoryandpracticetookplaceduringthe1950stothe1970s Sellers marketbecamebuyers marketManufacturersneededtotakeintoaccountcustomersatisfactionandserviceinordertomaintaintheircompetitivenessLocalmarketsbecameinternational Developmentofthetotalcostapproach byLewis CulitonandSteelein1956 whichleadedtotheanalysisofthelogisticalprocess Forrester 1958 SystemsDynamicsCoordinationandintegrationoffunctionsandactivitiesinthecompanySystemsorholisticapproachtologistics SCM Pelletier 2009 Thetotalcostoflogistics Productionandsourcingactivities Aftersalesservice Distributionnetworks Transportation Costtrade offs Inventory Alternativeuseofinfrastructure Obsolescenceofstocks Warehousing CommunicationsInformationmanagement FromAndersenandDommermuth 1972 SCM Pelletier 2009 Thetotalcostoflogistics Transactioncosts Distributioncosts Infrastructurecosts Inventorycosts Transportcosts TotalCosts NumberofDistributioncenters Costs FromChristopher 2005 SCM Pelletier 2009 Fromrocktodisco totechnoworldbeat Inthe1970sand1980s DevelopmentoftheJust in TimeconceptDevelopmentofinventoryandmaterialsmanagementstrategiesDevelopmentofcomputertechnologiesgivingrapidandpreciseaccesstoinformationElectronicDataInterchange EDI BarCodesCommunications satellites cellphones DeregulationintransportMarketsarebecomingglobal globalisationThe totalcost conceptevolvesfromthereductionoftotallogisticscoststousinglogisticstomaximiseprofitability SCM Pelletier 2009 TheWorldKeepsonRollin Inthe1990s informationtrulybecomesthecompetitiveadvantageCompaniesreturntotheircorecompetenciesGlobalisation growthofbuyingpower explosionindemand andoffer varietyrequirebettercoordination GrowthinenvironmentalandinfrastructureconstraintsPackagingTransportSafetyRecycling ReuseCongestiononroutes air water DeterioratinginfrastructurePrivatisationGrowthofpartnerships alliances cooperationagreementsDecentralisationofmanagementTechnology highercapacity faster SCM Pelletier 2009 Theneedforrenewal In2001 thefirstoutlookonthefragilityofexistingnetworksSecurityWhatisJiTexactly RedundancyResilienceRecyclingLife cycleFair tradeValuechains Confidence andcontinuingglobalisation consolidation convergence verticalspecialisation SCM Pelletier 2009 Principalconceptualframeworks Marketingandlogistics CustomerserviceCustomerbehaviour requirements expectations unsatisfaction DefiningservicelevelsInterfirmrelationships supplychainmanagementOperationsengineeringandmanagement OptimisationoflogisticalsystemsandoperationsModellingoftransactionandphysicalflowsSystemsengineeringBusinesslogistics Logisticsasaseparatediscipline SCM Pelletier 2009 Source Ballou 2007 SCM Pelletier 2009 Synthesis AdaptedfromKentetFlint 1997 SCM Pelletier 2009 BusinessLogisticsFunctions Examplesoflogistics transversalscopewithinorganisations Finance InventorycontrolInvoicingCreditauthorisationInfrastructureplanning Production ProcurementWarehousingTransportMaterialsRequirementPlanning Marketing SalesforecastingLevelofserviceDistributionDistribution Whing Physicalflows Informationflows Suppliers Clients SCM Pelletier 2009 Objectivesandconflictsbetweenbusinessfunctions SCM Pelletier 2009 TheChangingCompetitiveEnvironment Newrulesofcompetition Commoditisation ofmanyproductsReductionofthelife cycleofproductsCompetitionisbasedoncapabilitiesandcompetenciesInterfirmcollaborationRapidadaptationoftheentiresupplychainFlexibilityofthesupplychainAvailability ServiceandnotonlyProductCompetitiveadvantage ProductExcellence ProcessExcellence SCM Pelletier 2009 TheChangingCompetitiveEnvironment GlobalisationofindustryCompetitionisdiffuseGlobalsourcing regionalspecificityFindingaglobalproductDifferedfinaltransformationLengtheningofsupplychainsIncreaseinrisksTime basedcompetition SCM Pelletier 2009 TheChangingCompetitiveEnvironment Downwardpressureonprice Necessities Luxury Leisure AccelerationinthereductioncoststoaccesstechnologyMoreplayers newplayers overcapacityInternet brand superiority priceLogisticaloptimisation Supplychainoptimisation SCM Pelletier 2009 TheChangingCompetitiveEnvironment CustomersaretakingcontrolMoredemandingintermsofservicesMaterialisationofvaluewhentheproductispurchasedServicedifferentiationDifferentiationbyinnovativeoptionsDifferentiationbyafter salesservice SCM Pelletier 2009 PrinciplesguidingtheSupplyChainManager Responsiveness Reliability Resilience Relationships BetterknowledgeandunderstandingofdemandAccelerateprocessesrelatedtocommercialdataacquisitionCapacitytoreducecyclesoflogisticprocessesCapacitytoreducevariabilityincyclesandprocessesVisibilitythroughoutthesupplychainCapacitytoimplementalternateplansStrategicinventorymanagementBetterrelationships SCM Pelletier 2009 Customerservice The4PsofmarketingTimeandplaceutilityMaterialisationofvalueThreeelementsoflogisticscustomerservice Pre transactionelementsTransactionelementsPost transactionelementsDesignofreverselogisticsnetworks SCM Pelletier 2009 Definitionofserviceobjectives Completesatisfaction In timereceptionXCompletereceptionXError freereception SCM Pelletier 2009 Customermanagement CustomermanagementisaboutfocusingoncustomersCustomermanagementisalsoaboutcreatingvalueforthem CustomersarenotallthesameAligningbusinesscapabilitieswithcustomerrequirementsBuildinglong lastingrelationships SCM Pelletier 2009 Networkdesign Infrastructurelocation production warehouses terminals Infrastructuresize capacity numberInfrastructuretype stuffing grouping degrouping crossdocking InventorymanagementpolicyAdaptation modificationofnetworksOutsourcingInternationalproductionstrategy SCM Pelletier 2009 SCM Pelletier 2009 Networkconfiguration LogisticdesignofproductMaintenance supportTransportationconstraintsConditioning packaging Inducedflows procurement Relationswithsuppliers ServicelevelevaluationIdentificationofrequirementsWeightingoffactorsBenchmarkingQuantification service LogisticFamiliesEstablishmentofcriteriaGroupings SetobjectivesDelaysReliabilityQuality I TSystemDataProcessingToolsSafety Security PhysicalsystemArchitectureInventoryTransportationalternativesOutsourcing Planning ControlForecastinganddatacollectionAllocationofresourcesEstablishingprioritiesFeedbackproceduresTrendchart reporting AdaptedfromDornieretFender SCM Pelletier 2009 LeanvsAgilesupplychains Agile Business widecapabilityneedingaspecificmindsetFlexibilityandresponsivenesstochangeinthenetworkVariable unpredictabledemandLean DomorewithlessEliminatemudaandstriveforqualityWaiting scrap unnecessaryinventoriesStable predictabledemand SCM Pelletier 2009 SCM Pelletier 2009 Source Mason Jones 2000 SCM Pelletier 2009 SCM Pelletier 2009 Source Mason Jones 2000 Buildingsustainablenetworks LabourstandardsDistanceMakeModalchoiceanddistancesReturns recallsLife cycledesignCarbonlabellingEtc SCM Pelletier 2009 GreenSupplyChainBasics Eco Conception About4 5oftheenvironmentalfootprintofaproductisdeterminedduringitsdesignphase Anticipationofimpacts NatureofrawandintermediateinputsDistancesEnergyrequirementsRecycling reusepotentialDesign orupgrading ofproductshavingasmallerenvironmentalfootprintallthoughitslife cycle RulesandlegislationsattheEuropeanlevel SCM Pelletier 2009 GreenSupplyChainBasics Eco Sourcing Adoptionofenvironmentalcriteriainsourcingactivities Identificationofpotentialenvironmentalrisksrelatedtotheproductspurchased Highercost betterquality Trade offtobeevaluatedduringthewholelife cycleRequirestransparentandwellestablishedcriteria Stillfewsuppliers SCM Pelletier 2009 GreenSupplyChainBasics Eco Manufacturing Consumebetter consumelessLean eliminationofwasteTQM reductionofscrapBetterforecastingUseofrecycledmaterialsEnvironmentalmanagementsystemsIndustrialecology SCM Pelletier 2009 Source EricOffereins Source PortofRotterdam GreenSupplyChainBasics Eco Logistics Transportationchoices Warehousingtechnologies Energeticalternatives PackagingLoadingfactorReverselogisticsDefineperformancelevelsontransparentandunderstoodcriteria SCM Pelletier 2009 EnergyRequirements Emissions TheEcoLogisticsCycle SCM Pelletier 2009 Waste Intermediateproducts Rawmaterials Recycledproducts Recyclableproduct Unrecyclablewaste Retailproducts Finishedproducts Energy newmaterials Adaptedfrom OSC 2008 NetworksandtheroleofLogisticsServiceProviders SCM Pelletier 2009 Transaction 1stParty 2ndParty 3PL Transaction Movement Transaction Movement Localisation 3PLs 3PLs 3PLs 4PL Transaction Transaction Transaction Typesof4PLs SCM Pelletier 2009 Adaptedfrom Christopher 2005 SCM Pelletier 2009 Source HertzandAlfredsson 2003 ExternalEnablers SCM Pelletier 2009 Source BasoleandRouse 2008 Outsourcing Astrategicdecision Theborderoforganisations Rawmaterials Production Assembly Marketing sale Rawmaterials Production Assembly Marketing sale Rawmaterials Production Assembly Marketing sale AdaptadodeCousinsetal SCM Pelletier 2009 Whatisthebeststrategy ForcarriersFormanufacturersFordistributersWhatarethepotentialeconomies LabourResourcesCommunicationsTransactionsAndwhynotintegratecompetitors SCM Pelletier 2009 Dowehavethecapacitytomakethatproduct Canwedevelopthecapacitytomaketheproduc Canweacquirethecapacitytomaketheproduct Make Make Buy Make Yes Yes Yes No No No HistoriccontextLearningprocessCultureTimeLegalconstraintsMarketperceptionChangesduringtheacquisitionprocessExternalitiesOpportunitiesStrategiccontext Fuente Cousinselal SCM Pelletier 2009 SelectionofsupplynetworkKraljicMatrix Routine EfficiencyLowcostproductsCommoditiesEasysubstitutionManyproviders Impactonbusiness internalissues Supplyrisk supplymarketComplexity externalissues Elevated Elevated Low Low Leverage BestdealHighmanagementcostsSubstitutionpossibleManysuppliersCompetitivemarket Critical cooperationHighprofitimpactCustomdesignSubstitutiondifficultSuppliersarerareHightechnologysupply Bottleneck SupplycontinuityLowcostproductUniquespecificationFewsuppliersFluctuationnotpredictablePotentialstoragerisks AdaptedfromCousinsetal SCM Pelletier 2009 Selectionofsuppliers AdaptadodeCousinselal SCM Pelletier 2009 Verticalintegration LocalSuppliers SCM Pelletier 2009 Onceuponatime longago NewlyarrivedimmigrantWinterarrivingWood howmuch Askthenatives FirsttimetemperateSecondtimecoldThirdtimeverycoldFourthtimefreezing SCM Pelletier 2009 Lesson1ForecastsarenecessarilywrongbutnecessaryforplanningLesson2Trytounderstandhowforecastsaremade eveniftheyappearlegitimateLesson3Informationiscriticalforinventorybuilding ForecastingInvoicemanagementShippingmanagementTransactionmanagementCustomerservicemanagementCoordinationEnablevisibilityinnetworksAmeliorationofreliabilityReductionoferrorsAccelerateresponsivenessReducetransactioncosts Logisticsinformationmanagement SCM Pelletier 2009 Thebullwhipeffect Variationofdemandalongthesupplychain SCM Pelletier 2009 Thebullwhipeffect Distortionofinformationlinkedtodemandandresultingfromthedistancebetweenthesupplychainmemberandinitialdemand clientThefurtheryouarealongthes

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