SUPPLY CHAIN
MANAGEMEMT 2
1
,Table of Contents
Logistics and SCM ............................................................................................... 3
Demand and Order Management ......................................................................... 8
Purpose and types of inventories along the supply chain ..................................... 13
Operations Management ................................................................................... 18
Transport management in SCM .......................................................................... 22
Information Systems & Technology in Contract Logistics ..................................... 24
Warehouse Management and Reverse Logistics ................................................. 27
Logistics network design and channel strategy ................................................... 31
Global dimension of logistics ............................................................................. 32
Sustainable Logistics: Navigating the path to a greener future ............................. 34
2
, Logis'cs and SCM
Outsourcing in Logis-cs
- Entrus(ng logis(cs tasks to a specialized external company
- Improves efficiency and cost effec(veness
- Allow to focus on core competencies
- To streamline opera(ons, reduce costs and improve efficiency
- Includes transporta(on, warehousing, distribu(on and other supply chain ac(vi(es
Benefits of outsourcing:
• Employ best prac(ces
o To remain compe((ve they will con(nually be looking at different ways to
improve its services to its customers and adopt best prac(ces
o This makes business more efficient and more produc(ve
• Focus on core competencies
o Team to focus more on important strategic issues in the business
o Concentrate on core ac(vi(es
o Not waste valuable management (me on reac(ve asks
• Increase compe((veness
o Company can respond to more effec(vely to changing market demand when
outsourcing
o Have greater leverage in responding to change with added flexibility
• Reduce opera(ng costs
o Company can achieve economy of scale when outsourcing = this drives down
the outsourcing company’s opera(ng costs.
o Higher produc(vity while opera(ng more efficiently = adding value to
company processes
o Do outsourcing when they have to provide a compe((ve level of customer
service to their client base,
• Use advanced technologies
3PL Provider
- Provides offer outsourced logis(cs services, managing specific logis(cs func(ons
- Owns and manages both distribu(on centres and modes of transporta(on.
- Provides a service
- Transport Management
- Warehousing and Distribu(on
- Freight Forwarding
- Inventory Management
- Order Fulfillment
3
, - DHL, UPS
4PL Provider
- Providers manage the en(re supply chain and logis(cs process, oTen overseeing
mul(ple 3PL providers
- Integrates the resources of producers, retailers and third-party logis(cs providers to
build a system-wide improvement in the management of supply chain opera(ons.
- Provides a solu(on
- Manages en(re supply chain network
- Integrates 3PL providers and other partners
- Focuses on strategy, op(miza(on and visibility
- Advanced technology and data analysis
- Accenture, Allyn Interna(onal
Workable solu(ons can be developed by the co-venture or fourth-party service provider to
offer significant benefits to its clients:
- A total supply chain perspec(ve that focuses on moving both goods and informa(on
from one end of the supply chain to the other
- Flexibility to adjust to the partners’ changing needs as goods and services are
enhanced or changed, keeping the service flexible and adaptable to each iden(fied
change.
- Measurement along the supply chain (cost and performance), feeding back cost and
performance data in real-(me; data that can be used to help reduce costs and
improve performance standards as it happens.
- Integrate an ‘open’ system. An open system is a communica(ons standard developed
by the Interna(onal Organiza(on for Standardiza(on (ISO) that describes the flow of
data in a network through seven layers, from the user’s applica(on to the physical
transmission media.
- Technical vision to enhance the service as technology improves. At the rate
technology is advancing today, almost every business process is par(ally obsolete
before it has been fully implemented
- Visibility along the supply chain, giving each par(cipant a global perspec(ve of each
link across the en(re chain from source to the end user.
- Where beneficial, develop tailored structures and systems to meet a client’s
(partner’s) requirements. Perhaps providing them with a compe((ve advantage that
compe(ng companies do not have.
4
MANAGEMEMT 2
1
,Table of Contents
Logistics and SCM ............................................................................................... 3
Demand and Order Management ......................................................................... 8
Purpose and types of inventories along the supply chain ..................................... 13
Operations Management ................................................................................... 18
Transport management in SCM .......................................................................... 22
Information Systems & Technology in Contract Logistics ..................................... 24
Warehouse Management and Reverse Logistics ................................................. 27
Logistics network design and channel strategy ................................................... 31
Global dimension of logistics ............................................................................. 32
Sustainable Logistics: Navigating the path to a greener future ............................. 34
2
, Logis'cs and SCM
Outsourcing in Logis-cs
- Entrus(ng logis(cs tasks to a specialized external company
- Improves efficiency and cost effec(veness
- Allow to focus on core competencies
- To streamline opera(ons, reduce costs and improve efficiency
- Includes transporta(on, warehousing, distribu(on and other supply chain ac(vi(es
Benefits of outsourcing:
• Employ best prac(ces
o To remain compe((ve they will con(nually be looking at different ways to
improve its services to its customers and adopt best prac(ces
o This makes business more efficient and more produc(ve
• Focus on core competencies
o Team to focus more on important strategic issues in the business
o Concentrate on core ac(vi(es
o Not waste valuable management (me on reac(ve asks
• Increase compe((veness
o Company can respond to more effec(vely to changing market demand when
outsourcing
o Have greater leverage in responding to change with added flexibility
• Reduce opera(ng costs
o Company can achieve economy of scale when outsourcing = this drives down
the outsourcing company’s opera(ng costs.
o Higher produc(vity while opera(ng more efficiently = adding value to
company processes
o Do outsourcing when they have to provide a compe((ve level of customer
service to their client base,
• Use advanced technologies
3PL Provider
- Provides offer outsourced logis(cs services, managing specific logis(cs func(ons
- Owns and manages both distribu(on centres and modes of transporta(on.
- Provides a service
- Transport Management
- Warehousing and Distribu(on
- Freight Forwarding
- Inventory Management
- Order Fulfillment
3
, - DHL, UPS
4PL Provider
- Providers manage the en(re supply chain and logis(cs process, oTen overseeing
mul(ple 3PL providers
- Integrates the resources of producers, retailers and third-party logis(cs providers to
build a system-wide improvement in the management of supply chain opera(ons.
- Provides a solu(on
- Manages en(re supply chain network
- Integrates 3PL providers and other partners
- Focuses on strategy, op(miza(on and visibility
- Advanced technology and data analysis
- Accenture, Allyn Interna(onal
Workable solu(ons can be developed by the co-venture or fourth-party service provider to
offer significant benefits to its clients:
- A total supply chain perspec(ve that focuses on moving both goods and informa(on
from one end of the supply chain to the other
- Flexibility to adjust to the partners’ changing needs as goods and services are
enhanced or changed, keeping the service flexible and adaptable to each iden(fied
change.
- Measurement along the supply chain (cost and performance), feeding back cost and
performance data in real-(me; data that can be used to help reduce costs and
improve performance standards as it happens.
- Integrate an ‘open’ system. An open system is a communica(ons standard developed
by the Interna(onal Organiza(on for Standardiza(on (ISO) that describes the flow of
data in a network through seven layers, from the user’s applica(on to the physical
transmission media.
- Technical vision to enhance the service as technology improves. At the rate
technology is advancing today, almost every business process is par(ally obsolete
before it has been fully implemented
- Visibility along the supply chain, giving each par(cipant a global perspec(ve of each
link across the en(re chain from source to the end user.
- Where beneficial, develop tailored structures and systems to meet a client’s
(partner’s) requirements. Perhaps providing them with a compe((ve advantage that
compe(ng companies do not have.
4
