BADM 378 1:17.pdf - Introduction to Logistics Management...

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Introduction to Logistics Management Understanding the “Logistics” of the Supply Chain
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Module Outline 1. Understanding the “Logistics” of the Supply Chain Objective of a supply chain Decisions in supply chain Examples of supply chain 2. Logic of Logistics Video Case: Ford & Penske Logistics What is Logistics? and Logistics Management? Framework for Logistical Drivers 3. Supply Chain – Logistics Alignment The Logistics Model Canvas
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Defining Supply Chain Management What is supply chain management? Supply chain management is the management of upstream and downstream relationships with suppliers and customers in order to deliver superior customer value at less cost to the supply chain as a whole. Supply chain management is about getting the right products & services to the right locations , in the right quantities , at the right time, with the right quality and with the right documentation.
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How “old” is supply chain management? Source: Source:
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Example: Budweiser Supply Chain
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What is supply chain management? Source: Adapted from Riskmethods.net
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Decision Phases in Supply Chain Management Strategic Level - Design and strategy for the entire supply chain - Long-term decision: How to structure the supply chain over the next decade? - Decisions about the structure of the supply chain and what processes each stage will perform Tactical Level - Planning decisions and setting operational policies - Yearly, quarterly decisions - Definition of a set of policies that govern short-term operations Operational Level - Operational execution - Monthly, weekly, day-to-day decisions - Decisions regarding individual customer orders
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Decision Phases in Supply Chain Management
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Strategic: Supply chain strategy and design Decisions about the structure of the supply chain and what processes each stage will perform Strategic supply chain decisions Locations and capacities of facilities Products to be made or stored at various locations Modes of transportation Information systems Supply chain design decisions are long-term and expensive to reverse – must take into account market uncertainty
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Supply chain strategy examples
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