Table of Contents
Chapter 1 – SCM: An Overview .......................................................................................... 3
The Logistics Pipeline ................................................................................................................. 3
Logistics ..................................................................................................................................... 3
Five Major External Forces ......................................................................................................... 3
Evolution of Supply Chain Management Concept ....................................................................... 4
Integrated Supply Chain ............................................................................................................. 5
Supply Chain Management ........................................................................................................ 5
Major Supply Chain Issues ......................................................................................................... 5
Chapter 2 - Global Dimensions of Supply Chains................................................................. 6
Rationale for Global Trade ......................................................................................................... 6
Contributing Factors for Global Flows and Trade ........................................................................ 6
Global Markets and Strategy ...................................................................................................... 6
Chapter 3 – Role of Logistics in Supply Chains .................................................................... 6
Four major subdivisions ............................................................................................................. 6
Value-added Roles of Logistics ................................................................................................... 7
Important Logistics Activities ..................................................................................................... 7
Micro Dimension of Logistics ..................................................................................................... 7
Logistics and Systems Analysis ................................................................................................... 8
Summary ................................................................................................................................... 8
Chapter 5 – Sourcing Materials and Services ...................................................................... 9
Purchasing vs. Procurement vs. Strategic Sourcing ..................................................................... 9
Three Types of Purchasing Activity ............................................................................................. 9
Types and Importance of Purchases ..........................................................................................10
Strategic Sourcing .....................................................................................................................10
Total Landed Cost (TLC) .............................................................................................................12
E-sourcing, E-procurement, and E-commerce ............................................................................12
Four Basic Types of E-commerce Business Models ....................................................................13
Summary ..................................................................................................................................13
Customer Segmentation Matrix ................................................................................................14
Chapter 9 - Managing Inventory in the Supply Chain ....................................................... 15
Major Types of Inventory and Reasons for Carrying Them.........................................................15
Inventory Costs .........................................................................................................................15
Carrying Cost vs. Ordering Cost .................................................................................................17
, Approaches to Managing Inventory ..........................................................................................17
Additional Approaches: Just-in-Time (JIT) .................................................................................19
Materials Requirements Planning (MRP)...................................................................................20
Distribution Requirements Planning (DRP): ...............................................................................21
Vendor-Managed Inventory (VMI) ............................................................................................21
Inventory Management Techniques in the Logistics Network....................................................22
Inventory Classification .............................................................................................................23
Summary ..................................................................................................................................24
Chapter 13 - Supply Chain Performance Measurement and Financial Analysis ................. 25
Dimensions of Supply Chain Performance Metrics, Measure vs. Metric vs. Index ......................25
Characteristics of Good Performance Measures ........................................................................25
Performance Categories ............................................................................................................26
The Supply Chain–Finance Connection ......................................................................................26
Financial Implications of Supply Chain Strategies ......................................................................28
Financial Implications of Supply Chain Services .........................................................................29
Summary ..................................................................................................................................29
, Chapter 1 – SCM: An Overview
The Logistics Pipeline
Source: John Joseph Coyle, C John Langley, Novack, R. A., & Gibson, B. J. (2017). Supply chain management a logistics
perspective. Boston, Mass. Cengage Learning.
• The Logistics Pipeline (Company Focused)
• Materials Management (Inbound)
o Most retailers (e.g. supermarkets)
• Physical Distribution (Outbound)
• Goal of Logistics:
o To provide an acceptable level of customer service at the lowest possible total cost.
Difference between the Supply Chain Concept and the Logistics Pipeline Concept
The Supply Chain Concept is an Extended Enterprise that crosses the boundaries of individual companies
and integrates their activities wheras the Logistics Pipeline Concept focuses on maximizing the efficiency
of the relationship between one company and it's direct suppliers and direct customers.
Logistics
Simplest form: combines inbound logistics with the outbound logistics of physical distribution.
Process of planning, implementing and controlling the efficient and effective flow and storage of raw
materials, in process inventory, finished goods, related services and information from point of origin to
point of consumption for the purpose of conforming to customer and organizational requirements
• providing an acceptable level of customer service at the lowest possible total cost.
• Customer service goal (7 Rs): get the right products, to the right people, in the right
place, in the right quantity, in the right condition, at the right time, for the right price
• 3 Key Logistics Activities:
o Transportation
o Storage
o order processing (outbound), procurement (inbound)
Five Major External Forces
Governm
ent
Policy &
5 Globalization
4
Empowered Technol
ogy
1
consumer
Organizational
consolidation
3 2
Source: John Joseph Coyle, C John Langley, Novack, R. A., & Gibson, B. J. (2017).
Supply chain management a logistics perspective. Boston, Mass. Cengage Learning.
Chapter 1 – SCM: An Overview .......................................................................................... 3
The Logistics Pipeline ................................................................................................................. 3
Logistics ..................................................................................................................................... 3
Five Major External Forces ......................................................................................................... 3
Evolution of Supply Chain Management Concept ....................................................................... 4
Integrated Supply Chain ............................................................................................................. 5
Supply Chain Management ........................................................................................................ 5
Major Supply Chain Issues ......................................................................................................... 5
Chapter 2 - Global Dimensions of Supply Chains................................................................. 6
Rationale for Global Trade ......................................................................................................... 6
Contributing Factors for Global Flows and Trade ........................................................................ 6
Global Markets and Strategy ...................................................................................................... 6
Chapter 3 – Role of Logistics in Supply Chains .................................................................... 6
Four major subdivisions ............................................................................................................. 6
Value-added Roles of Logistics ................................................................................................... 7
Important Logistics Activities ..................................................................................................... 7
Micro Dimension of Logistics ..................................................................................................... 7
Logistics and Systems Analysis ................................................................................................... 8
Summary ................................................................................................................................... 8
Chapter 5 – Sourcing Materials and Services ...................................................................... 9
Purchasing vs. Procurement vs. Strategic Sourcing ..................................................................... 9
Three Types of Purchasing Activity ............................................................................................. 9
Types and Importance of Purchases ..........................................................................................10
Strategic Sourcing .....................................................................................................................10
Total Landed Cost (TLC) .............................................................................................................12
E-sourcing, E-procurement, and E-commerce ............................................................................12
Four Basic Types of E-commerce Business Models ....................................................................13
Summary ..................................................................................................................................13
Customer Segmentation Matrix ................................................................................................14
Chapter 9 - Managing Inventory in the Supply Chain ....................................................... 15
Major Types of Inventory and Reasons for Carrying Them.........................................................15
Inventory Costs .........................................................................................................................15
Carrying Cost vs. Ordering Cost .................................................................................................17
, Approaches to Managing Inventory ..........................................................................................17
Additional Approaches: Just-in-Time (JIT) .................................................................................19
Materials Requirements Planning (MRP)...................................................................................20
Distribution Requirements Planning (DRP): ...............................................................................21
Vendor-Managed Inventory (VMI) ............................................................................................21
Inventory Management Techniques in the Logistics Network....................................................22
Inventory Classification .............................................................................................................23
Summary ..................................................................................................................................24
Chapter 13 - Supply Chain Performance Measurement and Financial Analysis ................. 25
Dimensions of Supply Chain Performance Metrics, Measure vs. Metric vs. Index ......................25
Characteristics of Good Performance Measures ........................................................................25
Performance Categories ............................................................................................................26
The Supply Chain–Finance Connection ......................................................................................26
Financial Implications of Supply Chain Strategies ......................................................................28
Financial Implications of Supply Chain Services .........................................................................29
Summary ..................................................................................................................................29
, Chapter 1 – SCM: An Overview
The Logistics Pipeline
Source: John Joseph Coyle, C John Langley, Novack, R. A., & Gibson, B. J. (2017). Supply chain management a logistics
perspective. Boston, Mass. Cengage Learning.
• The Logistics Pipeline (Company Focused)
• Materials Management (Inbound)
o Most retailers (e.g. supermarkets)
• Physical Distribution (Outbound)
• Goal of Logistics:
o To provide an acceptable level of customer service at the lowest possible total cost.
Difference between the Supply Chain Concept and the Logistics Pipeline Concept
The Supply Chain Concept is an Extended Enterprise that crosses the boundaries of individual companies
and integrates their activities wheras the Logistics Pipeline Concept focuses on maximizing the efficiency
of the relationship between one company and it's direct suppliers and direct customers.
Logistics
Simplest form: combines inbound logistics with the outbound logistics of physical distribution.
Process of planning, implementing and controlling the efficient and effective flow and storage of raw
materials, in process inventory, finished goods, related services and information from point of origin to
point of consumption for the purpose of conforming to customer and organizational requirements
• providing an acceptable level of customer service at the lowest possible total cost.
• Customer service goal (7 Rs): get the right products, to the right people, in the right
place, in the right quantity, in the right condition, at the right time, for the right price
• 3 Key Logistics Activities:
o Transportation
o Storage
o order processing (outbound), procurement (inbound)
Five Major External Forces
Governm
ent
Policy &
5 Globalization
4
Empowered Technol
ogy
1
consumer
Organizational
consolidation
3 2
Source: John Joseph Coyle, C John Langley, Novack, R. A., & Gibson, B. J. (2017).
Supply chain management a logistics perspective. Boston, Mass. Cengage Learning.
