New direction in supply chain management

Lecture 1: Logistics role in the economy and organization Lecture 2: Financial impact of inventory Lecture 3: Inventory management Lecture 4: Customer service and transportation Lecture 5: Decision strategies in transportation Lecture 6: Warehousing

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GLOBAL LOGISTIC MANAGEMENT New Direction in Supply Chain Management Course Outline Lecture 1: Logistics role in the economy and organization Lecture 2: Financial impact of inventory Lecture 3: Inventory management Lecture 4: Customer service and transportation Lecture 5: Decision strategies in transportation Lecture 6: Warehousing Course Outline Lecture 7: Global logistics Lecture 8: Global logistic strategies Lecture 9: Organizing for effective logistics Lecture 10: Financial control of global logistics performance Lecture 11: Measuring and selling the value of global logistics Lecture 12: The strategic global logistic plan Lecture 1: Logistics role in the economy and organization A supply chain is the series of activities and organisations that materials-both tangible and intangible- move through on their journeys from initial suppliers to final customers Logistics is the function responsible for moving material through their supply chain. Other names of logistics Logistics can be called as following names: ◦Business logistics ◦Channel management ◦Distribution ◦ Industrial logistics ◦Logistical management ◦Materials management ◦Physical distribution ◦Quick-response system ◦Supply chain management ◦Supply management Why is Logistics important ? Logistics plays a key role in the economy in two significant ways: First, logistics is one of the major expenditures for businesses Second, logistics supports the movement and flow of many economic transactions; it is an important activity in facilitating the sale of virtually all goods and services. Cost factor in Logistic Cost of raw material Operational cost Production cost Cost of transportation Cost of warehousing Marketing cost Administrative cost Logistics support economic activities Purchasing activities Storing activities Transportation Production Marketing activities Sales activities Administration activities Cooperation activities Logistic Activity Logistics activities include:  transportation warehousing, material handling  protective packaging, inventory control order processing marketing, forecasting, customer service Five rights of Logistics Right Items which are needed for consumption or production Right Place Right Time Right Condition Right Cost What is global logistics ? Global logistics means logistic activities occur across boundary of one nation Supply Chain Management  The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.  The development and integration of people and technological resources are critical to successful supply chain integration. Supply chain model Input Processing Output Critical Flows in SCM Critical flows in SCM include: Material Service Information Cash