1、2-19Supply Chain Logistics ManagementChapter 2: Lean LogisticsSupply Chain Logistics Management, First Edition. Bowersox, Closs, and Cooper. Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinUnited States Logistics Costs1000900800$ billion700600500400300200100019

2、80Year19991980 GDP $2.88 trillion Logistics Cost $451 billion 15.7% of GDP Trans. Cost $214 billion 47.5 % of Logistics Cost1999 GDP $9.26 trillion Logistics Cost $921 billion 9.9% of GDP Trans. Cost $554 billion 60.2 % of Logistics CostLogisticsTransportationSource: Robert V. Delaney, 11th Annual “

3、State Of Logistics Report” June 5, 2000Understanding the SC A SC consists of all stages involved, directly or indirectly, in fulfilling a customer request. Includes the manufacturer, suppliers, transporters, warehouses, retailers, and cutomers themselves. Includes functions: new product development,

4、 marketing, operations, distribution, finance, and cutomer serviceWhat is a SC?P&G or other manufacturerJewel or third party DCJewel SupermarketCustomer wants detergent and goes to JewelPlastic ProducerTenneco PackagingChemical manufacturer(e.g. Oil Company)Chemical manufacturer(e.g. Oil Company)Pap

5、er ManufacturerTimber IndustryWhat is a SC? The term SC conjures up images of product, or supply, moving from suppliers to manufacturers to distributors to retailers to customers along a chain. Supply network or supply web A manufacturer may receive material form several suppliers and then supply se

6、veral distributors.Flows in a SCCustomerInformationProduct FundsThe Objective of a SC To maximize the overall value The value is The difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customers request. Value SC profitability The

7、 difference between the revenue generated from the customer and the overall cost across the SC. The SC profitability is The total profit to be shared across all SC stagesThe Objective of a SCM The SCM involves the management of flows between and among stages in a SC to maximize total profitability S

8、ources of revenue and cost Only one source of revenue customer, which is the only real point of positive cash flow in a SC. All other cash flows are simply fund exchanges within the SC.Decision Phases in a Supply Chain 1. Strategy decision (strategy or design) how to structure the SC Location, capac

9、ity of production, warehousing facilities, products to be made and stored, modes of transportation, type of information system SC strategy decisions are made typically for the long term ( a matter of years). SC strategy decisions are very expensive to alter on short notice. Must take into account un

10、certainty in anticipated market conditions over the next few years.Decision Phases in a Supply Chain 2. SC Planning Define a set of operating policies that govern short- term operations The SC s configuration establishes constraints Shorter time horizon and better forecast of demand. Which markets s

11、upplied from which locations, Buildup of inventories, subcontracting of manufacturing, replenishment and inventory policies Incorporate flexibility into SC Optimize performance in the shorter termDecision Phases in a Supply Chain 3. SC Operation Weekly or daily time horizon Decisions regarding indiv

12、idual customer orders The SC s configuration fixed Planning policies defined Implement the operating policies in the best possible manner Allocate individual orders, shipping mode set a due date, delivery schedules Reduce uncertainty and optimize performanceDecision Phases in a Supply Chain Key poin

13、t SC decision phases may be categorized as design, planning, or operational, depending on the time frame over which the decision made apply. The design, planning and operation of a SC have a strong impact on overall profitabilityand success. Dell, in 1993, performed poorly, its stock price dropped s

14、harply Improving the design, planning, operation of SC Both profitability and stock price subsequently have soared.Process View of a SC A SC is a sequence of processes and flows that take place within and between different SC stages and combine to fill a customer need for a product. 1. Cycle view Th

15、e processes are divided into a series of cycles, each performed at the interface between two successive stages of SC 2. Push/pull view Pull processes are initiated by a customer order. Push processes are initiated and performed in anticipation of customer orders.Integrated LogisticsInventoryOrder Pr

16、ocessingFacility NetworkWarehousing Material Handling PackagingTransportationSuppliersInformation FlowCustomersInventory FlowLogistical IntegrationEnterpriseMarketManufacturingProcurementDistributionSupportMarket Distribution Operating ConcernsMarket Distribution:Activities related to providing cust

17、omer service.Requires performing order receipt and processing, deploying inventories, storage and handling, and outbound transportation within a supply chain.Includes the responsibility to coordinate with marketing planning in such areas as pricing, promotional support, customer service levels, deli

18、very standards, handling return merchandise, and life-cycle support.The primary market distribution objective is to assist in revenue generation by providing strategically desired customer service levels at the lowest total cost.Manufacturing Support Operating ConcernsManufacturing Support:Activitie

19、s related to planning, scheduling, and supporting manufacturing operations.Requires master schedule planning and performing work-in-process storage, handling, transportation, and time phasing of components. Includes the responsibility for storage of inventory at manufacturingsites and maximum flexib

20、ility in the coordination of geographic and final assemblies postponement between manufacturing and market distribution operations.Procurement Operating ConcernsProcurement:Activities related to obtaining products and materials from outside suppliers.Requires performing resource planning, supply sou

21、rcing, negotiation, order placement, inbound transportation, receiving and inspection, storage and handling, and quality assurance.Includes the responsibility to coordinate with suppliers in such areas as scheduling, supply continuity, hedging, and speculation, as well as research leading to new sou

22、rces or programs.The primary procurement objective is to support manufacturing or resale organizations by providing timely purchasing at the lowest total cost.Logistics Information RequirementsInventory ManagementInventory DeploymentManufacturing RequirementsLogistics RequirementsProcurementTranspor

23、tationand ShippingDistributionOperationsOrderAssignmentForecastingProcurement RequirementsCapacity ConstraintsPLANNING - COORDINATIONStrategic ObjectivesOrderProcessingOPERATIONS2-21Echeloned Structured LogisticsINFORMATION FLOWSSupplierIndustrial Distribution or Consolidation WarehouseManufacturerW

24、holesaler or Distribution CenterRetailerCustomerSupply Chain Logistics Management, First Edition. Bowersox, Closs, and Cooper. Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinCustomerRetailerINFORMATION FLOWSSupport forDirect DeliveryWholesaler or Distribution

25、CenterManufacturerIndustrial Distribution or Consolidation WarehouseSupplier2-32CustomerRetailerFlexible Echeloned Structured LogisticsManufacturerService Supplier ArrangementsService Supplier ArrangementsFlow ThroughFlow ThroughSupplierWholesaler or Distribution CenterIndustrial Distribution or Con

26、solidation WarehouseINFORMATION FLOWSSupport forDirect DeliverySupply Chain Logistics Management, First Edition. Bowersox, Closs, and Cooper. Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinProcess View: Cycle View of SCsCustomer Order CycleReplenishment Cycle

27、Manufacturing CycleProcurement Cycleinterface interface interface interfaceCustomer Retailer DistributorManufacturerSupplierLogistical Performance CyclesMaterial SourceLead Supplier (Tier 1)Manufacturing PlantDistributorsCustomerPurchasing CycleManufacturing Support CycleNodePhysical Distribution Cy

28、cleTransportation LinksCommunication LinksMulti-Echeloned Flexible Network123MaterialMaterialMaterialSourceSourceSourceManufacturingManufacturingManufacturingPlantPlantPlantPlantPlantPlantWarehouseWarehouseWarehouseDistributionDistributionDistributionWarehouseWarehouseWarehouseCustomerCustomerCustom

29、erCustomer Order Cycle At the customer/retailer interface Includes all processes directly involved in receiving and filling the customers order: Customer arrival Customer order entry Customer order fulfillment Customer order receivingCustomer DeliveryOrder TransportationCustomer OrderOrder Transmiss

30、ionBasic Market Distribution Performance- Cycle ActivitiesOrder ProcessingOrder SelectionReplenishment Cycle At the retailer /distributor interface Includes all processes involved in replenishing retailer inventory: Retailer order trigger Retailer order entry Retailer order fulfillment Retailer orde

31、r receivingManufacturing Cycle At the distributor/manufacturer interface Includes all processes involved in replenishing distributor (or retailer) inventory: Order arrival from distributor, retailer, or customer Production scheduling Manufacturing and shipping Receiving at the distributor, retailer,

32、 or customerProcurement Cycle At the manufacturer/supplier interface Includes all processes necessary to ensure that material are available for manufacturing according to schedule. Key point: A cycle view of the SC Clearly defines the processes involved and the owners of each process. Useful in oper

33、ational decisions, specifies the roles and responsibilities of each member of the SC and the desired outcome for each process.SupplierOrder Placement and ExpeditingTransportationReceivingSourcingProcurement-Cycle ActivitiesPerformance-Cycle UncertaintyTotal Performance Cycle510401/2Time Range - Days

34、Order TransmissionCustomer Delivery 13Time Range - DaysOrder Transportation4Time Range - Days10Order Selection121/2 13Time Range - DaysOrderProcessing2Time Range - Days1 24Time Range - Days202-33Process View: Push/Pull View of SCsProcurement, Manufacturing and Replenishment cyclesCustomer Order CyclePUSH PROCESSESPULL PROCESSESCustomer Order ArrivesSupply Chain Logistics Management, First Edition. Bowersox, Closs, and Cooper.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-36The Importan