Logistic and supply chain

management
Syllabus:

Unit: 1
• Introduction to supply chain Mgt.
• The development chain-key issues in supply chain
• Introduction to logistic value proposition
• Procurement and outsourcing strategies
• Outsourcing benefit and risk
• A framework for buy and make decisions
• Procurement strategies
• Supply contracts-strategies components
• Distribution strategies, direct shipment distribution
• Intermediate Inventory storage point strategies
 Logistic and supply chain
management
Syllabus:

Unit: 2
• Inventory functionality & management
• Planning and managing inventory
• Managing uncertainty
• Inventory management policies & practices
• Transportation infrastructure & operation
• Transport functionality
• Principal and participants transportation infrastructure
• Transportation service
• Strategic warehousing
• Warehouse decision
• Packaging for material handling efficiency – material handling
 Logistic and supply chain
management
Syllabus:

Unit: 3
• Supply chain integration
• Push-pull and push-pull system
• The impact of lead time-demand driven strategies
• Strategic alliance under supply chain – frame work
• Third party logistics
• Retailer supplier partnerships- distributor integration
• Coordinated product and supply chain design
• Design for logistics supplier
• Integration into new product development-mass customization
 Logistic and supply chain
management
Syllabus:

Unit: 4
• The value of information
• Information sharing and incentives
• Information for the coordination of the system
• Locating desired products
• Lead time reduction
• IT & business process
• Goals of supply chain IT
• Supply chain system components
• Supply chain management technology standards
•Information technology infrastructure
• RFID Technology
 Logistic and supply chain
management
Syllabus:

Unit: 5
• Local issue in supply chain management
• Supply chain issues during natural disaster
and other calamities
• Supply chain issues for SMEs
• Reverse logistics
 Logistic and supply chain
management
Suggested readings

• David simchi-levi, philip kaminsky – levy ravi Tata Mcgraw hill

designing and managing the supply chain concept, strategies and
case studies
• Donald J Bowersox , David j closs ,M Bixby Supply chain
logistic management Tata Mcgraw
• JF Shapiro , modeling the supply chain, duxbury
• Sunil chopra Supply chain management Prentice hall
• Raghuram G & N Rangaraj , logistic and supply chain
management Mcmillan
Men of wisdom lives in happiness
while
Ordinary man live in search of
happiness
 Logistic and supply chain
management

 What is supply chain ?

Example:
 Stages of a detergent supply chain

Timber Paper Tenneco

company Manufacturer packaging

P&G or Wal mart or Wal mart

other third party DC store Customer

Chemical Plastic
manufacturer producer
The difference between Logistics and
supply chain
Logistics
includes physical distribution, warehousing, freight transportation
(inbound and outbound from manufacturing plants and in some
industries customer service (sales order processing, inventory
planning and production planning.

Supply chain
(for a manufacturer)includes the logistics business functions above,
and also includes purchasing, sourcing, procurement, buying,
manufacturing operations,production scheduling and inventory
control and materials management, facilities location planning, the
information technology to coordinate between suppliers, the company,
and customers (wholesalers and retailers and end users.
 Supply chain stages

Supplier Manufacturer Distributor Retailer Customer

Supplier Manufacturer Distributor Retailer Customer

Supplier Manufacturer Distributor Retailer Customer

 The stages of supply chain
A Typical supply chain may include the
following stages:

Customers
Retailers
Wholesalers/Distributors
Manufacturers
Components/Raw material suppliers
The objective of a supply chain
• Maximize the overall value generated.
What is the value of a supply chain?
• Supply chain value is strongly correlated with supply
chain profitability also known as supply chain surplus.
• Effective supply chain management involves the
management of supply chain assets and product,
information and fund flows to maximize total supply
chain profitability
 Some more definition of supply chain
management
“ Supply chain encompasses all activities, involved
in the transformation of goods from the raw
material stage, to the final stage, when the
goods and services reaches the end customers”.

“ It involves planning, design, and control of flow

of material, information, and finance along the
supply chain to deliver superior value to the end
customer in an effective and efficient manner
 The Evolution through revolution of supply chain
management

The developmental chain :

Three major revolution in the field of supply chain
management
• The first revolution(1910-1920) The ford supply
chain
• Highly integrated
• Fully owned
• Inflexible supply chain
 The Evolution through revolution of
supply chain management
• The Second revolution(1960-1970) The
Toyota supply chain
The major changes:
• Wide variety
• Less inventory holding
The great idea of Toyota:
• In house manufacturing of key components and
final assembly of the products
• Keiretsu system
• Location advantage for all the suppliers
It was widely referred as lean production systems
 The Evolution through revolution of
supply chain management
• The problem with the lean system of production
was
• Tight linkage prevents flexibility of movement
• The supplier no more competitive and became
complacent
• Inspite of EDI (Electronic data interchange) the
Toyota shown some rigidity, such as permanent
relationship with suppliers which became a liability
over a period of time.
This limitation on the part of Toyota lead to the third
revolution led by dell computers
 The Evolution through revolution of
supply chain management
• The Third revolution(1990-2000) The Dell
supply chain
The key features:
• Advances in IT
• Flexibility and no long term relationships
• Working with world class suppliers who maintains
cost leaderships and technology.
• Integrating supplier electronically
• No demand forecast
• No need to locate suppliers close to the firms since
they are connected electronically
 The Evolution through revolution of
supply chain management
The progression:
Product variety front:
progressions from, single product (Ford) to wide
variety (GM and Toyota) to highly customizations
(Dell)
From chain ownership front:
Vertically integrated firms to long term partnerships to
loosely held networks
 The development chain
• It is the set of activities and processes associated
with new product introductions. Includes
• Product design phase
• The associated capabilities and knowledge that
needs to be developed internally
• sourcing decisions
• Productions plans
 The development chain
• The development chain includes decisions:
• Product architecture
• Make/Buy decisions
• Supplier selection
• Productions plans
• Early supplier involvement
• Strategic partnership
The development and supply chains
• Product architecture
Plan/Design • Make/Buy
• Early supplier involvement

• Strategic Partnerships
Source • Supplier selections
• supply contract

Supply Produce Distribute Sell

Supply chain
 The key concepts in supply chain

• Focal/Nodal/Main entity in the chain

• Reverse supply chain management
• New product return
• End of life product return
• Company recall
• Material and packaging return

Decision in supply chain

• Design decision
• Nodal and outsourced firm
• Selection of entity partners for outsourced activities and nature
of relationship
• Decision on capacity and location of the various facility
 Decision in supply chain
• Design decision
• Nodal and outsourced firm
• Selection of entity partners for outsourced activities and nature
of relationship
• Decision on capacity and location of the various facility

Decision in supply chain

• Design decision
• Nodal and outsourced firm
• Selection of entity partners for outsourced activities and nature
of relationship
• Decision on capacity and location of the various facility
 Decision in supply chain
Operation decisions
• Demand forecasting
• Procurement planning and control
• Production planning and control
• Distribution planning and control
• Inventory management
• Transportation management
• Customer order processing
• Relationship management with partnership in the chain

Launch of Harry porter book (21 July 6:30 AM)

21 July 2007
(Harry porter and Deathly hallows)
A supply chain nightmare
What is the issues:
 The importance of supply chain
• Proliferation in product line
• Shorter PLC
• High level of outsourcing
• Shift in the power structure in the chain
• Globalization of manufacturing
 The Enabler of Supply Chain
• Improvement in communication and IT
• Entry of third party logistics providers
• Enhanced inter-firm coordination capabilities
Supply chain performance in India:
Challenges in Maintaining supply chain
in India :

• Poor Logistics infrastructure

• Taxation structure Drive location decisions
 Supply chain challenges for the
Indian FMCG sectors
• Managing availability in the complex distribution set up
• Working with smaller pack sizes
• Entry of national players in traditional fresh product
sectors
• Dealing with counterfeit goods
• Opportunistic games played by distrubutors
• Emergence of third party logistic proviers
• Emergence of modern retail chains
• Reservation for the small scale sectors
• Example of Indian supply chain:
• Amul
• Dabbawalas Mumbai
 Questions
• Indian companies complain high logistics
cost make their products less competitive
in international markets. Identify products
that are likely to be significantly affected
by the poor logistics infrastructure in India