ENPC MBA Lecture Slides 2010 Day 2

ENPC MBA Lecture Slides 2010 Day 2 - ENPC School of...

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ENPC School of International Management Maroc 12 MBA Logistics and Supply Chain Management Tuesday 6 April 2010 Professor David Grant [email protected] / +44 1482 347542
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2 Agenda Day 1 What are logistics/supply chain management? Trends and challenges in logistics/supply chain management In-class exercise: Toys ‘R Us Japan Case Strategic and design issues in logistics and SCM
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3 Definitions of logistics and SCM Logistics Management: “...that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements .” Supply Chain Management (SCM): “...the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities . Importantly, it also includes coordination and collaboration with channel partners , which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.” Council of Supply Chain Management Professionals (2009)
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4 A simplified ‘chain’ Elements Suppliers Warehouses Inventory Transport Information Customers Supplier Distribution centre Manufacturing site Customer Transport Transport Transport Dimensions DISTANCE: transport = movement across space TIME : storage = movement through time RISK: ‘logistics management is… essentially a process of risk management’ Sources of risk or uncertainty variations in consumer demand variations in supplier lead times variations in delivery other random events TIME is the ‘unifying dimension’
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5 How much do countries spend on logistics?
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6 Break-down of Logistics Costs transport 40% warehousing 26% inventory 18% administration 16% How much do companies spend on logistics? Variations in Logistics Costs by Industrial Sector 0 2 4 6 8 10 12 14 16 Paper Electrical Appliances Food and Drink Chemicals/Petroleum Electronics Automotive Machine Tools/Metal Products Pharmaceuticals Percentage of Sales Revenue Transport Inventory Warehousing Administration
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7 Reasons for the increased emergence of logistics and SCM Intensification of competition Liberalisation of trade Deregulation of transportation Shortened expectation of time Product variety, market segmentation Consumer expectation service delivery, price efficiency Change in channel power Global brands Retailers v manufacturers Global manufacturing economies IT improvements Planning, execution and control Profit Leverage Cost minimisation with service excellence Business process re-engineering
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8 Relationship Marketing Levitt / Grönroos Strategic
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This note was uploaded on 10/01/2010 for the course ENTERPRENE mba122010 taught by Professor Ang during the Spring '10 term at Télécom Paris.

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ENPC MBA Lecture Slides 2010 Day 2 - ENPC School of...

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