Supply Chain Solution

  • photodune-2036600-sensuous-hills-m

  • Supply Chain is a set of activities (e.g. purchasing, manufacturing, logistics, distribution, marketing) that perform the function of delivering value to end customer

  • Principles of Supply Chain
    • 1.  Customer is King  
      2.   Management of Logistics  
      3.   Customer Management  
      4.   Process Integration  
      5.   Leveraging of Sourcing  
      6.   Strategic alliances and relationship management  
      7.   Develop performance measures  
      8.   The objectives of logistics strategy 
      9.   Minimize cost 
      10.   Minimize investment 
      11.   Maximize customer servicev 
      12.   Levels of logistical planning 
      13.   Strategic 
      14.   Tactical 
      15.   Operational

    Strategic Tactical and Operational Decision Making
    Decision area Strategic Tactical Operational
    Transportation Mode Selection Seasonal equipment Leasing Dispatching
    Inventories Location, Control Policies Safety Stock Levels Order Filling
    Order Processing Order entry, transmittal and Processing System Design - Processing orders, Filling back orders
    Purchasing Development of supplier buyer relations Contracting, forward buying Expediting
    Warehousing Handling equipment selection, Layout design Space Utilization Order Picking and restocking
    Facility Location Number, Size and Location of warehouses - -

  • Relationship of Logistics to Production
    Coordinates through scheduling and strategy
    . make-to-order
    . make-to-stock
    An integral part of the supply chain
    . Affects total response time for customers
    . Shares activities such as inventory planning
    Costs are in tradeoff
    . Production lot quantities affect inventory levels and transportation efficiency
    . Production response affects transportation costs and customer service
    . Production and warehouse location are interested

  • The Logistics Strategy Triangle (4 Problem Areas)
    Relationship of logistics to Marketing and production