LOGISTICS AND SUPPLY CHAIN MANAGEMENT

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LOGISTICS AND SUPPLY CHAIN MANAGEMENT

• Humble, Back Office Tasks

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AGENDA

• INTRODUCTION
• BUILDING BLOCKS
• Newfound Importance
• Inventory Management
• Reasons for Holding
• Holding Costs
• Reducing
• Inventory Savings

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AGENDA

• BUILDING BLOCKS
• Transportation and Fulfillment
• Essentials
• Third Party Logistics (3PL)
• Order, Invoices, Payments

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AGENDA

• SUPPLY CHAIN MANAGEMENT
• What It Is
• Supply Chains
• Definition
• Implementation Schemes
• ECR
• Rapid Response

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AGENDA

• PUTTING IT ALL TOGETHER
• Efficiency versus Effectiveness
• Why Now
• Summary and Conclusions

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INTRODUCTION

• Traditionally
• Flow
• Physical Goods
• Distribution
• Finished Goods

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INTRODUCTION

• Now, SCM
• Store and Flow
• Goods, Services, Related Information

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INTRODUCTION

• Now, SCM
• Extended Channel
• Supply
• Production
• Distribution
• Consumption
• Disposal

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INTRODUCTION

• Now, SCM
• Inventory
• Raw Materials
• Work in Process
• Finished Goods

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INTRODUCTION

• Now, SCM
• Activities
• Transportation
• Order Processing
• Materials Handling and Packaging
• Warehousing
• Forecasting
• Other

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INTRODUCTION

• Now, SCM
• Focus
• Cost
• Investment
• Service
• Profit

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AGENDA

• BUILDING BLOCKS
• Newfound Importance
• Inventory Management
• Reasons for Holding
• Holding Costs
• Reducing
• Inventory Savings

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BUILDING BLOCKS

• Newfound Importance
• Quality
• Effectiveness
• Efficiency

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BUILDING BLOCKS

• Inventory Management
• Reasons for Holding
• Demand surges
• Service
• Gaps
• temporal
• spatial

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BUILDING BLOCKS

• Inventory Management
• Reasons for Holding
• Uncertainty
• Economies
• production
• distribution
• purchasing
• financing

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BUILDING BLOCKS

• Inventory Management
• Holding Costs ( and )
• Capital
• Storage
• Obsolescence
• Quality

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BUILDING BLOCKS

• Inventory Management
• Reducing Inventory
• Obvious
• Avoid FISH
• Lengthen PLC
• Find faster vendors
• Locate cheaper warehouse

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BUILDING BLOCKS

• Inventory Management
• Reducing Inventory
• Obvious
• Avoid FISH
• Lengthen PLC
• Find faster vendors
• Locate cheaper warehouse

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BUILDING BLOCKS

• Inventory Management
• Reducing Inventory
• Less Obvious
• Forecasting
• Alter production
• Simplify
• Modularize
• Routinize

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BUILDING BLOCKS

• Inventory Management
• Inventory Savings
• Pseudo
• Moving the bubble
• Sacrifice service
• Sacrifice profits

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BUILDING BLOCKS

• Inventory Management
• Inventory Savings
• Real
• (moving from) Push
• (moving to) Pull

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BUILDING BLOCKS

• Fulfillment and Transportation
• Humble tasks

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BUILDING BLOCKS

• Fulfillment and Transportation
• Essentials
• Transportation
• Warehousing
• (past was) storage
• (future is) movement

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BUILDING BLOCKS

• Fulfillment and Transportation
• Essentials
• Distribution Centers
• Cross Docking
• Production
• Transportation
• Distribution
• Supply

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BUILDING BLOCKS

• Fulfillment and Transportation
• 3PL
• More than transportation
• All aspects of fulfillment

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BUILDING BLOCKS

• Fulfillment and Transportation
• 3PL

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BUILDING BLOCKS

• Orders, Invoices, Payments
• Reduction
• Human intervention
• Documents
• Time
• Errors
• Money

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BUILDING BLOCKS

• Orders, Invoices, Payments
• IT/IS
• ERP
• EDI
• VAN
• Web-enabled

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AGENDA

• SUPPLY CHAIN MANAGEMENT
• What It Is
• Supply Chains
• Definition
• Implementation Schemes
• ECR
• Rapid Response

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SUPPLY CHAIN MANAGEMENT

• What It Is
• Extended Enterprise
• Set of entities
• Collective action
• Create value

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SUPPLY CHAIN MANAGEMENT

• What It Is
• Extended Enterprise

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SUPPLY CHAIN MANAGEMENT

• What It Is
• Definition
• Organizing concept
• Marketing concept
• Logistics
• Operations
• IT/IS
• ABC/ABM
• Channel management

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SUPPLY CHAIN MANAGEMENT

• Implementation Schemes
• Efficient Consumer Response
• Foci
• Continuous replenishment
• Efficient pricing and promotion
• Changes in product introduction
• Changes in merchandising
• Knowledgeable consumers

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SUPPLY CHAIN MANAGEMENT

• Implementation Schemes
• Efficient Consumer Response
• Efficiency
• Aggregation
• Categories
• Not items

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SUPPLY CHAIN MANAGEMENT

• Implementation Schemes
• Efficient Consumer Response
• Continuous Replenishment
• ABC/ABM
• KBM
• VMI

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SUPPLY CHAIN MANAGEMENT

• Implementation Schemes
• Efficient Consumer Response
• Obstacles
• Standards
• Coherence

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SUPPLY CHAIN MANAGEMENT

• Implementation Schemes
• Quick Response
• Similarities
• Pull
• Cooperation
• KBM
• FISH
• FMCG

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SUPPLY CHAIN MANAGEMENT

• Implementation Schemes
• Quick Response
• Differences
• Postponement
• Less about merchandising
• More about manufacturing
• Integration

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AGENDA

• PUTTING IT ALL TOGETHER
• Efficiency versus Effectiveness
• Why Now

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PUTTING IT ALL TOGETHER

• Efficiency versus Responsiveness
• Brand Dichotomy
• Functional
• Innovative

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PUTTING IT ALL TOGETHER

• Efficiency versus Responsiveness
• Brand Dichotomy

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PUTTING IT ALL TOGETHER

• Efficiency versus Responsiveness
• Brand Dichotomy

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PUTTING IT ALL TOGETHER

• Why Now
• Pressure
• Competition
• Margin
• Turnover

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PUTTING IT ALL TOGETHER

• Why Now
• IT/IS
• ABC/ABM
• Culture
• Standards
• Sustainable Competitive Advantage

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SUMMARY AND CONCLUSIONS