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Chapter 3
Logistics Management
Vinod V Sople
Chapter 1
Logistics Management
Satish Ailawadi
Rakesh Singh
Contents
Basic concept
Definition
Scope
Relationship management
Basic Concept
Only for
understanding.
Not required for
exam
10
11
12
Organizations
14
16
17
18
19
20
22
23
Overall costs
Transportation
Warehousing strategies
Suppliers
Manufacturers
Distributors
Customers
25
AKA OEMs
Firms engaged in the original production & assembly of products &
services
Key material decisions
Location
Capacity
Sourcing of resources such as labor, material, power & machines
Lot sizes viz how much to make in a production run
Inventory (raw material, work-in-progress and finished goods)
Key Information & Related Decisions
Supplier shipments
Customer orders
Costs
Market prices
27
Channel Agencies
Information Flow
29
Channel Structures
30
FMCG companies have a very long & dense channel structure because
customers are very large in number & spread over wide geographical area
Unit product price is low & frequency of purchase is very high
Hence FMCG companies prefer to have more outlets to satisfy customer
needs
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33
Relationship Management
Underlying principle
35
Extended Enterprise
McDonald's Corporation
Franchisees
37
Bullwhip Effect
Definition
39
40
41
42
Forecast Errors
Batch Ordering
43
44
References
Presentation Image
http://www.china-assistance.com/how-it-works/supply-chain-management/
Introduction
http://theprofessornotes.com/wp-content/uploads/2010/09/Manufacturing-moving-towards-acollaborative-supply-chain_wiki.pdf
Origin / Evolution of SCM
http://www.elcnetwork.ca/ebusiness/efc_supply_chain_basics.pdf
http://en.wikipedia.org/wiki/Supply_chain
Supply Chain participants
Operations Management by R. Dan Reid & Nada R. Sanders 3rd Edition Wiley 2010
PowerPoint Presentation by R.B. Clough UNH M. E. Henrie - UAA [File name
ch04_scm_bull_whip.ppt]
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References
Key SCM Concepts
http://finntrack.co.uk/images/chp_supchain.jpg
Relationship Management
http://en.wikipedia.org/wiki/Extended_enterprise
Bullwhip Effect
http://www.mbaskool.com/business-articles/operations/104-bullwhip-effect.html
http://nl.wikipedia.org/wiki/Bullwhip_effect
http://en.wikipedia.org/wiki/Variance#Examples
http://maja.uni-mb.si/files/apem/APEM3-1_045-055.pdf
http://www.resourcesystemsconsulting.com/blog/archives/18
http://hosteddocs.ittoolbox.com/pa020609.pdf
http://pages.uindy.edu/~lgardner/bullwhip%20effect%20-%20IoPP.pdf
http://www.datalliance.com/donovan.pdf
Global scenario
http://www.wto.org/english/res_e/statis_e/its2010_e/its10_toc_e.htm
http://www.epiqtech.com/supply_chain-Global-Management.htm
Role of logistics in supply chain
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