Supply Chain Solution
- Supply Chain is a set of activities (e.g. purchasing, manufacturing, logistics, distribution, marketing) that perform the function of delivering value to end customer
- 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 -
Coordinates through scheduling and strategyRelationship of Logistics to Production
. 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
Principles of Supply Chain
| 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 | - | - | |
| The Logistics Strategy Triangle (4 Problem Areas) |
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| Relationship of logistics to Marketing and production |
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