Intro Handout Flashcards
Procurement questions
Which contract? Where to buy? How to improve?
Transportation Q
What mode? How often?
Manufacturing Q
Quantity? Quality?
DC Q
Where to locate? How many? How to design? How to operate? How many to keep?
Store
What value to deliver? What LT? What service?
Reverse logistics
Store - Defective returns - Returned Shipment - Warehouse - Recycle Center
SCM
Manage upstream and downstream relationships in order to deliver customer value at least cost to whole supply chain.
Improve flow materials and information from suppliers to end users.
Logistics activities
anticipating (customer needs), acquiring resources (to meet needs), utilizing network in timely manner (to fulfill customer request)
*Professor Q
How should we bring material to our assembly line? What kind of inventory position our story need? What is our return policy? Customer service?
Higher logistics costs means..
high cost for consumer, low profit for company, lower living standard
Logistics creates economic utilities. What are those?
Usefulness an item has in fulfilling a want or need (benefit of getting some things. e.g. receive the beer but cannot open it, or receive it late.
Competitive Advantage? 2 kinds?
How firm differentiates in the eyes of the customer. Value and cost advantage.
*Logistics is..
Develop business strategies. What can I deliver. What I am good at and benefit from it. There is a need in the market. How can you benefit from resources. Companies might use market base.
Types of utilities
- Quantity (logistics) 2. Form (production). 3.Possession (marketing) 4. Place (where) 5. Time 6.
Cost advantage
Lower cost, lower price, higher demand, more profit, economies of scale/learning curve/logistics advantage
Value advantage
Customer buys benefits, not products! (marketing!). Otherwise it will be seen as an -horrible, dull- “commodity”
Cost advantage / value advantage
low cost advantage /low value advantage - COMMODITY LEADER
low cost/high value - SERVICE L.
high cost/high advantage - COST & SERVICE L.
high cost/low value - COST L.
How logistics reduce costs
Capacity utilization, industrial packaging (protect from damaging), reliability (shortage of raw materials)
How logistics creates value
- Tailored services: customer segmentation, customized services.
- Responsiveness: agile logistics
- Impact in marketing (4 P’s)
Omega example
lot of demand variability, low inventory, looking for STRATEGIC FIT
Strategic fit is
How you meet goals you want to determine those goals.
3 steps of Strategic fit
1) Uncertainties 2) Capabilities 3) Define fit
