1st Presentation Notes Flashcards
What is logistics?
The process of strategically managing the procurement, movement, and storage of materials, parts, and finished inventory (and the realted information flows) through the organisation and its marketing channels in such a way that current and future profitability are maximised through the cost-effective fulfilment of orders
What is the general logistics management process?
Suppliers - Procurement - Operations - Distribution - Customers (Picture)
What is the single largest cost in most physical distribution systems?
Transportation
What is a supply chain?
It consists of all parties involved, directly or indirectly, in fulfilling a customer request. This involves new product development, marketing, operations, distribution, finance, and customer service. Roughly, it is about market network and relationship management
Three areas of the supply chain macro process?
Supplier Relationship Management, Internal Supply Chain Management, Customer Relationship Management
Supplier Relationship dealings
Source, Negotiate, Buy, Design Collaboration, Supply Collaboration
Internal Supply Chain dealings
strategic planning, demand planning, supply planning, fulfillment, field service
Customer Relationship dealings
market, price, sell, call center, order management
What are the factors to consider in Supply Chain performance?
Facilities (production sites, storage sites), Inventory, Transportation, Information, Sourcing, Pricing
Return on Equity
Net Income / Average Sharehold Equity
Return on Assets
Earnings Before Interest / Average Total Assets (Profit Margin x Asset Turnover)
Earnings Before Interests and Tax (EBIT)
Revenue - material expenses - personnel expenses
Which dimensions of SC-related value creation can not be captured by financial statement analysis?
Disregarded underachievement (Markdowns necessary due to excess inventory and lost sales incurred due to unavailability of products) and disregarded future development (uncertainty due to changinig trends, competition, life cycle, shocks and reputational damage by delivery of poor quality products)
What are two problems from SC demand uncertainty?
No stable demand forecast and no stable demand retention
How can a company be responsive with their SC
Supplier Relations, Demand Flexibility, Speed, Capacity, Technical Capability, Product Reliability, Innovation, and Service
