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1、Developing a Logistics Perspective as Part of Supply Chain ManagementMartha C. CooperProfessor of LogisticsDepartment of Marketing and LogisticsThe Ohio State UniversityModern Logistical & Economy Development International Forum October 23-25, 2001Overview What Is Supply Chain Management? Is Supply
2、Chain Management More Than Simply a New Name for Logistics? What is the Role of Logistics in the Domestic Economy? What is the Role of Logistics in the Global Economy? SummaryLOGISTICS MANAGEMENT DEFINED.the process of planning, implementing, and controlling the efficient, effective flow and storage
3、 of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers requirements. Council of Logistics Management, 1986SUPPLY CHAIN MANAGEMENTis the integration of key business processesfrom end user through original suppliers, that provides p
4、roducts, services, and informationthat add value for customers andother stakeholders.1998 CLM DEFINITION OF LOGISTICS.is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-
5、origin to the point-of-consumption in order to meet customers requirements. Figure 1SUPPLY CHAIN MANAGEMENT: Integrating and Managing Processes Across the Supply ChainSupply Chain Business ProcessesTier 1SupplierTier 2SupplierLogisticsPurchasing Marketing & SalesR&DCustomerConsumer/End-userCUSTOMER
6、RELATIONSHIP MANAGEMENTCUSTOMER SERVICE MANAGEMENTDEMAND MANAGEMENTORDER FULFILLMENTMANUFACTURING FLOW MANAGEMENTPROCUREMENTPRODUCT DEVELOPMENT AND COMMERCIALIZATIONRETURNSPRODUCT FLOWProductionFinanceManufacturerInformation FlowCOST TRADEOFFS REQUIRED INMARKETING AND LOGISTICSProductPriceMarketing
7、Objective:Logistics Objective:Allocate resources to the marketing mix in such a manner as to maximize the long-term profitability of the firm.Minimize Total Costs given the customer service objective where total costs = Transportation Costs + Warehousing Costs + Order Processing and Information Cost
8、s + Lot Quantity Costs +Inventory Carrying CostsPromotionPlaceCustomer ServiceLevelsInventoryCarrying CostsTransportationCostsWarehousingCostsOrder Processingand informationCostsLot QuantityCostsLogisticsMarketingFigure 2 SUPPLY CHAIN MANAGEMENT FRAMEWORK: Elements and Key Decisions2) What processes
9、 should belinked with each of thesekey supply chain members?1) Who are the key supplychain members with whom to link processes?3) What level of integration and management should be applied for each process link?Supply ChainBusinessProcessesSupply ChainNetworkStructureSupply ChainManagementComponents
10、Managed Process LinksMonitor Process LinksNot-Managed Process LinksNon-Member Process Linksn2312n11n213nn1121n2n12n1n1nTier 1CustomersTier 2CustomersTier 3 toConsumers/End-CustomersTier 2SuppliersTier 1SuppliersTier 3 toInitialsuppliersn1Figure 3Types of Inter-company Business Process LinksInitial S
11、uppliersTier 3 to n suppliersTier 3 to n customersConsumers/End-customersMembers of the Focal Companys Supply ChainNon-Members of the Focal Companys Supply ChainFocal CompanyCommunicationand Information FlowFacility StructureWork Flow/Activity StructureOrganizationStructureProduct FlowFacility Struc
12、turePlanning andControl MethodsPhysical & Technical Management ComponentsManagementMethodsPower andLeadership StructureRisk andReward StructureCulture andAttitudeManagerial & BehavioralManagement ComponentsFigure 4Supply Chain Management: Fundamental Management ComponentsWhat is the Role of Logistic
13、s in the Domestic Economy? Business Environment Issues Trends in US Logistics Measures Implications for Business in General Infrastructure Considerations Information TransportationIndex of Business Logistics Costs As A Percent of GDP 1980 - 20004050607080901001101201980198119821983198419851986198719
14、88198919901991199219931994199519961997199819992000Year1980 = 100InventoryTransportationTotalRobert V. Delaney and Rosalyn Wilson, State of Logistics Report, June 4, 2001, co-sponsored by Cass Information Systems and ProLogis. See web site , Delaneys Dugout.Figure 5Inventory-Sales RatioSource: Federa
15、l Reserve Bank of St. Louis1.301.351.401.451.501.551.601991199219931994199519961997199819992000YearPercent1.25Robert V. Delaney and Rosalyn Wilson, State of Logistics Report, June 4, 2001, co-sponsored by Cass Information Systems and ProLogis. See web site , Delaneys Dugout.Figure 6Inventories Are D
16、rawn Down SharplySource: BusinessWeek, May 14, 2001Data: Commerce Dept.-20Billions of Chain Weighted Dollars020406080Changes InInventories00 I01 IIIIIIIVRobert V. Delaney and Rosalyn Wilson, State of Logistics Report, June 4, 2001, co-sponsored by Cass Information Systems and ProLogis. See web site
17、, Delaneys Dugout.Figure 7Logistics Infrastructure Considerations Transportation Warehousing Customer Service Inventory Control Information InfrastructureWhat is the Role of Logistics in the Global Economy? Same Issues as Domestic Information Transportation The Role of Logistics in Postponement and
18、Speculation StrategiesFigure 8THE P/S-MATRIX ANDGENERIC SUPPLY CHAIN P/S-STRATEGIESLogisticsSpeculationPostponementSpecu-lationPostpone-mentMake toorderMake toinventoryDecentralizedinventoriesCentralized inventoriesand direct distributionManufac-turingThe fullspeculationstrategyThe logisticspostpone
19、mentstrategyThe fullpostponementstrategyThemanufacturingpostponementstrategySource: Janus D. Pagh and Martha C. Cooper, “ Supply Chain Postponement and Speculation Strategy : How to choose the Right Strategy,” Journal of Business Logistics, Vol.19, No.2, 1998, pp. 13-33.Figure 9ILLUSTRATION OF THE F
20、ULL SPECULATION STRATEGYRetailer/customerProduction plantOptional levelsof distributionwarehousesPlantor centralwarehouseFinalwarehouselevelRetailer/customer order pointManufacturing processInventoryMaterials flowSource: Janus D. Pagh and Martha C. Cooper, “ Supply Chain Postponement and Speculation
21、 Strategy : How to choose the Right Strategy,” Journal of Business Logistics, Vol.19, No.2, 1998, pp. 13-33.Figure 10ILLUSTRATION OF THE FULL POSTPONEMENT STRATEGY Production plantRetailer/customerRetailer/customer order pointManufacturing processInventoryMaterials flowSource: Janus D. Pagh and Mart
22、ha C. Cooper, “ Supply Chain Postponement and Speculation Strategy : How to choose the Right Strategy,” Journal of Business Logistics, Vol.19, No.2, 1998, pp. 13-33.Figure 11CONTINUUM OF P/S-STRATEGIES,AND POSITIONING OF THE CASE-EXAMPLESThe Logistics P/S-ContinuumSpeculationPostponementSpecu-lation
23、Postpone-mentTheManufacturingP/S-ContinuumThe fullspeculationstrategyThemanufacturingpostponementstrategyThe fullpostponementstrategyThe logisticspostponementstrategyB&OThe paintbusinessXeroxcomplexnetworksXeroxcommodityproductsHewlett-Packard,DeskJetprintersThe threeSwedishcompaniesXeroxmid volumep
24、roductsSource: Janus D. Pagh and Martha C. Cooper, “ Supply Chain Postponement and Speculation Strategy : How to choose the Right Strategy,” Journal of Business Logistics, Vol.19, No.2, 1998, pp. 13-33.Figure 12USING THE PROFILE ANALYSIS TOOLVolumeCost/service strategyValue profileProductMarketan dd
25、emandManufac-turing &logisticsProductcharac-teristicsProduct typeProduct rangeStageLifecycleValueMonetary densityDelivery frequencyRelative delivery timeEconomies of scaleUncertainty of demandSpecial capabilities The fullspeculationstrategyThe manufacturingpostponementstrategyThe logisticspostponementstrategyThe fullpostponementstrategyServiceCostLow/Med.Med./HighMed./HighLow/Med.StandardCustomizedNarrowWideFinal stagesInitial stagesIntroductionGrowthMaturationMat./DeclineHighLowHighLowShortLongHighMed./LowLowHighSmal
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