Principles Of Supply Chain And Logistics Management PDF

College of Economics and Business Administration Course Code: BSSL1208 Principles of Supply chain and Logistics Management 1  Chapter 1 AN OVERVIEW OF SUPPLY CHAIN & LOGISTICS MANAGEMENT  Chapter 1...

College of Economics and Business Administration Course Code: BSSL1208 Principles of Supply chain and Logistics Management 1  Chapter 1 AN OVERVIEW OF SUPPLY CHAIN & LOGISTICS MANAGEMENT  Chapter 1 Learning Objectives You should be able to: Define logistics, supply chains, and supply chain management Explain the differences between logistics and supply chain Describe the importance of supply chain management Describe the brief history and current supply chain management trends Describe the fundamental functions/elements of supply chain management  Chapter Outline Introduction Supply Chain& Logistics Defined Why study supply chain and logistics? The Importance of Supply Chain Management The Evolutions of Supply Chain Management Elements of Supply Chain Management Logistics & SCM: Their Economic Impacts  Supply Chain & Supply chain Management (SCM): Definition “ Supply Chain Management unifies a network of connected but interdependent organisations, mutually and cooperatively working together to control, manage and improve the flow of material and information, from the suppliers to the end users, while increasing value to the end users delivering at less cost as a whole”. Supply Chain Management In 6 Minutes | What Is Supply Chain Management? | Simplilearn https://youtu.be/Lpp9bHtPAN0  Supply Chain Principles of Supply Chain and Logistics Management (BSSL1208)- SPRING 2023-UTAS Evolutions of Supply Chain Management Evolutions of Supply Chain Management 1950s-1960s U.S. manufacturers focused on mass production techniques as their principal cost reduction and productivity improvement strategies 1960s-1970s Introduction of new computer technologies lead to development of Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to coordinate inventory management and improve internal communications  Evolutions of Supply Chain Management 1980s-1990s Intense global competition led U.S. manufacturers to adopt: Just-In-Time (JIT)-The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules Total Quality Management (TQM) Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training. Business Process Reengineering (BPR)-BPR aimed to help organizations fundamentally rethink how they do their work in order to improve customer service, cut operational costs, and become world-class competitors. Customer Relationship Management (CRM) Customer relationship management is one of many different approaches that allow a company to manage and analyze its own interactions with its past, current and potential customers.  Evolutions of Supply Chain Management 2000s and Beyond Focus on improving supply chain capabilities with initiatives such as: Third-party service providers (3PLs) Integrating logistics. It is a unique business management process that governs the flow of materials, information and goods from the point of origin to the point of arrival, in which all management activities are interconnected and interdependent. Client/server SCM software - Enterprise Resource Planning Today Emphasis is being placed on the environmental and social impacts of supply chains Sustainability - ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations Triple bottom line – taking care of people, planet and profits Elements of Supply chain management  Logistics Management: Definition  Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. (http://www.clm1.org).  Logistics involves... “managing the flow of items, information, cash and ideas through the coordination of supply chain processes and through the strategic addition of place, period and pattern values.” MIT Center for Transportation & Logistics  Logistics is the function responsible for moving materials through their supply chain.’ Donald Waters, Global Logistics, 2010.  The goal of Logistics It aims to achieve a target level of customer service at lowest possible cost Logistics consider wide set of activities dedicated to transformation & circulation of goods (e.g., Warehousing ; Materials handling; Inventory; Packaging and Recycling Freight Transport: inbound and outbound logistics; Information sharing) https://www.goodfellowpublishers.com/free_files/Chapter%2011%20Logistics%20&%20the%20Supply%20Chain.pptx Logistics versus SC  Logistics & SCM: Why do we care? Supply Chains & Logistics...  Span across the globe and cannot be managed as an isolated function.  Have become critical to any organization’s operations locally and internationally.  Connect functions, divisions, and business units within and across firms  Cost of managing these functions is huge, and huge opportunities to be unique through these activities. Logistics & SCM: Their Economic Impacts Economic Utility Apart from the macro level economic impacts, logistics can affect individual consumers. These impacts can be illustrated through the concept of economic utility, which is the value or usefulness of a product in fulfilling customer needs or wants. The four general types of economic utility are possession, form, time, and place; Possession utility refers to the value or usefulness that comes from a customer being able to take possession of a product Form utility refers to a product’s being in a form that can be used by the customer and is of value to the customer. Place utility refers to having products available where they are needed by customers; products are moved from points of lesser value to points of greater value. Time utility refers to having products available when they are needed by customers. Importance of Supply Chain Management Cost savings and better coordination of resources are reasons to employ Supply Chain Management SCM reduces safety stocks and costs due to coordinated planning and better sharing of information Firms with large system inventories gain the most from successful SCM Lower purchasing & carrying costs Better product quality Higher customer service levels Increased sales and profits  Why study Supply chain and Logistics? 1. Career Stability 2. Immense Demand 3. Job Prospects in More Locations 4. High Salary 5. Low Barriers to Entry 6. Career Growth Opportunities 7. Wider Industry and Workplace Selection 8. Career Satisfaction 9. Transferrable Skills 10. International Opportunities  References and Sample questions References: 1. Principles of Supply Chain Management: A Balanced Approach by Wisner, Leong, and Tan, ISBN 13: 978-0-538- 47546-4/ISBN 10: 0-538-47546-3 2. Contemporary Logistics by Paul R. Murphy, Jr.A. Michael Knemeyer, ISBN 13: 978-0-13-451925-8/ Pearson Education Limited Questions:- 1. What is supply chain management's primary goal? 2. Distinguish the supply chain from logistics. 3. Using THREE examples of advantages a company that controls its supply chain effectively may realize, define the term "value-enhancing benefits" and then explain what it means. 4. What are supply chain management's primary elements? 5. Describe the professional options open to graduates in the supply chain. 6. What do TQM, BPR, JIT, and CRM mean? 7. What is a third-party service provider's function? (3PLs) 8. Give your own concise definition of supply chain management.  CONTACT INFORMATION: Name of the Staff: Office:: Email: VERSION HISTORY Version No Date Approved Changes incorporated 01 27