SUPPLY CHAIN
AND LOGISTICS MANAGEMENT
Sales and
Distribution
Management
Marketing 3345
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT
KEY CONCEPTS

Logistics – getting the right amount of
the right products to the right place at the
right time at the lowest possible cost.

Logistics Management – the practice
of organizing the cost-effective flow of
raw materials, in-process inventory,
finished goods from the point of origin
to the point of consumption to satisfy
customers requirements.
Relating logistics management and supply
chain management to supplier networks and
marketing channels
The automotive supply chain includes
thousands of firms that provide the 5,000 or
so parts in a typical car
Paint industry supply chain
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT
SUPPLY CHAIN MANAGEMENT AND
MARKETING STRATEGY

Aligning a Supply Chain
with Marketing Strategy
• Dell: A Responsive Supply Chain
• Wal-Mart: An Efficient Supply Chain
INFORMATION AND
LOGISTICS MANAGEMENT IN A
CUSTOMER-DRIVEN SUPPLY CHAIN

Information’s Role in Supply Chain
Responsiveness and Efficiency
• Electronic Data
Interchanges (EDIs)
• Extranet
How total logistics cost varies with the
number of warehouses used based on
inventory costs and transportation costs
Supply chain managers balance total
logistics cost factors against customer
service factors
INFORMATION AND LOGISTICS MANAGEMENT
IN A CUSTOMER-DRIVEN SUPPLY CHAIN
CUSTOMER SERVICE FACTORS

Time
• Lead Time
 Order Cycle Time
 Replenishment Time
• Quick Response
• Efficient Consumer Response
INFORMATION AND LOGISTICS MANAGEMENT
IN A CUSTOMER-DRIVEN SUPPLY CHAIN
CUSTOMER SERVICE STANDARDS
USING MARKETING DASHBOARDS
Diagnosing Out-of-Stocks and On-Time Delivery
for Organic Produce
Out-of-Stock (%) and On-Time-Delivery (%)
Out-of-Stock (%) =
# of Outlets Where a Brand/Product is Listed but Unavailable
Total # of Outlets Where a Brand/Product is Listed
On-Time Delivery (%) =
# of Deliveries Achieved in the Timeframe Promised
Total # of Deliveries Initiated in a Time Period
UPS and Ryder
What are third-party logistics providers?
Advantages and disadvantages of five
modes of transportation
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
TRANSPORTATION

Railroads
• Intermodal Transportation
• Piggy-Back or Trailer
on Flatcar (TOFC)
• Containers
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
TRANSPORTATION

Motor Carriers

Air Carriers and
Express Companies

Freight Forwarders/
Express Companies
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
TRANSPORTATION

Pipelines

Water
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
WAREHOUSING AND MATERIALS HANDLING

Storage Warehouses

Distribution Centers

Materials Handling
KEY LOGISTICS FUNCTIONS
IN A SUPPLY CHAIN
INVENTORY MANAGEMENT

Supply Chain Inventory Strategies
• Just-in-Time (JIT) Concept
• Vendor-Managed Inventory (VMI)
CLOSING THE LOOP:
REVERSE LOGISTICS

Reverse Logistics