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1、1-2Logistics: What It IslCouncil of Supply Chain Management Professionals (CSCMP) definition:“Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the
2、point of origin and the point of consumption in order to meet customers requirements.”Source: 1-3l Logistics managementl Business logistics managementl Integrated logistics managementl Materials managementl Physical distribution managementl Marketing logisticsl Industrial logisticsl Dis
3、tribution What is Logistics?1-4l Business logistics:lThat part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, service, and related information from point of use or consumption in order to meet customer requirements.l Military logi
4、stics: lThe design and integration of all aspects of support for the operational capability of the military forces (deployed or in garrison) and their equipment to ensure readiness, reliability, and efficiency.l Event logistics: lThe network of activities, facilities, and personnel required to organ
5、ize, schedule, and deploy the resources for an event to take place and to efficiently withdraw after the event.l Service logistics: lThe acquisition, scheduling, and management of the facilities/assets, personnel, and materials to support and sustain a service operation or business. Four Subdivision
6、s of Logistics1-5The Increased Importance of LogisticslA Reduction in Economic RegulationlChanges in Consumer Behaviorl Market demassification: market has distinct preference. next-day delivery certain time slot on next dayl Changing family role: extended store hours, delivery on purchasers convenie
7、nce, ready-to-eat-ready-to-cooklTechnological AdvanceslThe Growing Power of Retailers: CPFRlGlobalization of Trade1-6Economic Impacts of LogisticslMacroeconomic ImpactslEconomic Utilityl Possession utilityl Form utilityl Place utilityl Time utility1-7The Cost of the Business Logistics System In Rela
8、tion to Gross Domestic Product (GDP) In $ BillionYearInventory Carrying CostsTransportation CostsAdministrative CostsTotal U.S. Logistics CostLogistics As a Percentage of GDP1960314437814.719653864410614.719705691615314.7197597116922213.519802202141745116.119852272742052112.419902833512565911.419953
9、024413077310.42000377590391,00610.1Source: R. Wilson and R. Delaney, Twelfth Annual State of Logistics Report, 20011-8Source: Center for Supply Chain Research, Penn State University (2008).1-9The Systems and Total Cost Approaches to LogisticslSystems Approachl Interdependence of company and logistic
10、s goalsl Compatible with companys goals and objectivesl Interdependence of functional areasl Increased Stock-keeping units (SKUs) for marketingl Interdependence of logistics activities or Intrafunctional logisticsl Inbound, materials management, and physical distribution1-10Control Over the Flow of
11、Inbound and Outbound Movements1-11The Systems and Total Cost Approaches to LogisticslTotal Cost Approachl Cost trade-offs: changes to one activity cause some costs to increase and others to decrease.l Total Logistics Concept: to find the lowest total cost that supports an organizations customer serv
12、ice requirements.1-12Cost oftransportationserviceInventory cost(includesstorage andintransitTotal costRailTruckAirCost, in dollarsTransportation service(greater speed and dependability) A Cost Conflict in Logistics1-13More Cost ConflictsImproved customer service0100%(a) Setting the customer service
13、levelCostLost sales costTransportation,order processing,and inventorycostsTotal costsIncreasing number of stocking points0(b) Determining the number of warehouses in a logisticssystemCostTransportation costsTotal costsInventorycosts0RevenueRevenue 0Average inventory level0(c) Setting safety stock le
14、velsLost sales costTotal costsInventorycarryingcostsCost0Product run length and product sequencingaltenatives(d) Setting the sequence of production runs formultiple productsProduction costsTotal costsCost0Inventorycarryng cost1-14Logistical Relationships Within the FirmlFinancel LIFOl FIFOl Inventor
15、y Turnover vs. Inventory Float (Cash Flow)lProductionl Production runsl Postponement concept1-15Logistical Relationships Within the FirmlMarketingl Place Decisionsl Co-branding: one location where customers can purchase products from 2 or more name-brand retailers of the same parent companyl Price D
16、ecisionsl FOB origin/FOB destination pricing systemsl Landed costsl Phantom freight: buyers located close to sellers point pay more l Freight absorption: buyers located close to sellers point pay less1-166. Terms of Sale: F.O.B. Destination, Freight Collect and Allowed Buyer-Pays Freight Charges Buy
17、er-Bears Freight Charges Seller-Owns Goods in Transit Seller-Files Claims (If Any) then Charged to Seller by Deducting Amount from InvoiceFreight ChargesPaid by Buyer.TitlePasses toBuyerSELLERBUYER1. Terms of Sale: F.O.B. Origin, Freight Collect Buyer-Pays Freight Charges Buyer-Bears Freight Charges
18、 Buyer-Owns Goods in Transit Buyer-Files Claims (If Any)2. Terms of Sale: F.O.B. Origin, Freight Prepaid Seller-Pays Freight Charges Seller-Bears Freight Charges Buyer-Owns Goods in Transit Buyer-Files Claims (If Any)3. Terms of Sale: F.O.B. Origin, Freight Prepaid and Charged Back Seller-Pays Freig
19、ht Charges Buyer-Bears Freight Charges Buyer-Owns Goods in Transit Buyer-Files Claims (If Any) then Collected from Buyer by Adding Amount to Invoice4. Terms of Sale: F.O.B. Destination, Freight Collect Buyer-Pays Freight Charges Buyer-Bears Freight Charges Seller-Owns Goods in Transit Seller-Files C
20、laims (If Any)5. Terms of Sale: F.O.B. Destination, Freight Prepaid (Delivered) Seller-Pays Freight Charges Seller-Bears Freight Charges Seller-Owns Goods in Transit Seller-Files Claims (If Any)Freight ChargesPaid by BuyerFreight ChargesPaid by SellerFreight ChargesPaid by BuyerFreight ChargesPaid b
21、y SellerTitlePasses to BuyerTitlePasses toBuyerTitlePasses toBuyerTitlePasses toBuyerTitlePasses to BuyerSELLERSELLERSELLERSELLERSELLERBUYERBUYERBUYERBUYERBUYERFreight ChargesPaid by Seller.A Variety of Pricing Arrangements1-17Phantom Freight and Freight Absorption1-18Logistical Relationships Within
22、 the FirmlMarketingl Product Decisionsl Stockouts: additional space and increasing carrying costl Promotion Decisionsl Sale Campaign with stockout may damage a firms goodwill and can be viewed as bait and switch tactics1-19Marketing Channelsl“sets of interdependent organizations involved in the proc
23、ess of making a product or service available for use or consumption.”Source: Louis W. Stern and Adel I. El-Ansary, Marketing Channels, 4th edition, Upper Saddle River, NJ: Prentice Hall, 1992, p. 1l Ownership channell Manufacturersl Wholesalersl Retailers1-20Marketing Channelsl Negotiations channell
24、 Buy and sell agreements are reached: l Stated price or auctionl Financing channell Payments for goodsl 寄賣、預訂l Promotions channell Promoting a new or existing productl Allowance, special marketing materials, trackingl Logistics channell Moving and storing product throughout the channell Sorting out,
25、 accumulating, allocating, assorting1-21Channel Intermediaries or Facilitatorsl Ownership channell Banks, public warehousesl Negotiations channell Brokersl Financing channell Banks, insurance companiesl Promotions channell Advertising agencies, public relations agenciesl Logistics channell Freight f
26、orwarders1-22Activities in the Logistical Channell Customer servicel Facility location decisionsl Inventory managementl Order managementl Production schedulingl Returned productsl Transportation managementl Demand forecastingl Industrial packagingl Materials handlingl Parts and service supportl Proc
27、urementl Salvage and scrap disposall Warehousing management1-23The five functions of logistical work are interrelatedIntegrated Logistics1-24Responsibilities of Logistics ManagerslA specialistl Freight ratesl Warehouse layoutsl Inventory analysisl Productionl Purchasingl Transportation lawlA general
28、ist l Understands functional relationshipsl Relates logistics to other firm operations, suppliers, customersl Controls large expenditures1-25Logistics CareerslMost business organizations are potential employerslLogistics is the second-largest employment sector in the United StateslThe CEO of Wal-Mar
29、t began his Wal-Mart career in the logistics area!1-26Logistics Professionalisml Council of Logistics Management or Council of Supply Chain Management Professionals (CSCMP)l Canadian Association of Logistics Management l American Production and Inventory Control Societyl American Society of Transpor
30、tation and Logisticsl Association for Transportation Law, Logistics, and Policyl Delta Nu Alphal International Society of Logisticsl Transportation Research Foruml Warehousing and Education Research CouncilProfessional Organizations Dedicated to Advancing the Professional Knowledge of their members:
31、1-27About Supply ChainslA supply chain “encompasses all activities associated with the flow and transformation of goods from the raw material stage (extraction), through to the end user, as well as the associated information flows.”Source: Robert B. Handfield and Ernest L. Nichols, Jr., Introduction
32、 to Supply Chain Management1-28Different Supply Chain Configurations1-29Successful Supply Chains havelan enterprise-to-enterprise point of view.la systems approach across all organizations in the supply chain.l Companies recognize interdependenciesl Goals and objectives are compatible1-30The Supply
33、Chain Operations Reference (SCOR) Model1-31Globalization of Supply ChainslIncreasing globalizationl Lower priced materials and laborl Global perspective of companiesl Development of global competitionlExtremely difficult to execute due to differencesl Cultural, economic, and technologicall Political, spatial, and logistical1-32Key Attributes of Supply
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