Ch10 Logistics and SCMA

Ch10 Logistics and SCMA - Dimensions of Logistics and SCM...

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Click to edit Master subtitle style Copyright © 2009 all rights reserved Dr. Chafik Abid – www0.umoncton.ca/abidc/e – Dimensions of Logistics and SCM Chafik Abid Ph.D., M.B.A. 11
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Content SC Management Dimensions of Logistics Demand Management and Customer Service 10/13/10 22
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Click to edit Master subtitle style Copyright © 2009 all rights reserved Dr. Chafik Abid – www0.umoncton.ca/abidc/e – Understanding the Supply Chain
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Logistics 44 10/13/10 Logistics is that part of the SC that plans , implements , and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements. Logistics has a significant impact on a business' cost, flexibility, and performance. Logistics costs account for between 5 and 35 percent of total sales costs and represent one of the largest costs in international commerce. 4 *Council of Logistics
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55 Traditional View: Logistics in the Economy Freight Transportation $352, $455 Billion Inventory Expense $221, $311 Billion Administrative Expense $27, $31 Billion Logistics Related Activity 11%, 10.5% of GNP Source: Cass Logistics 1990, 1996
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66 Traditional View: Logistics in the Profit 4% Logistics Cost 21% Marketing Cost 27% Manufacturing Cost 48%
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77 SCM: The Magnitude in Estimated that the grocery industry could save $30 billion (10% of operating cost) by using effective logistics and SC strategies A typical box of cereal spends 104 days from factory to sale A typical car spends 15 days from factory to dealership Laura Ashley turns its inventory 10 times a year, five times faster than 3 years ago
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88 SCM: The True
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Ch10 Logistics and SCMA - Dimensions of Logistics and SCM...

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