C1 - Overview of Logistics and Supply Chain - SV

C1.
Overview of Logistics and

Supply Chain Management
MBA. Võ Thị Xuân Hạnh
2
Learning outcomes
Understand the concept of

Logistics and Supply chain
Determine the significance of

Logistics and Supply chain in
business activities
Be able to recognize logistics in

every daily activity
3
Contents
I. Supply Chain Management:
•1.1 Definition
•1.2 Flows in supply chain
II. Logistics Management:

•2.1 Definition
•2.2 Economic utility in Logistics
•2.3 Seven Rs in logistics
•2.4 Types of logistics
•2.5. The increased importance of Logistics
4
Knh5
Kênh bán hàng
gián tiÿp
The basic stages of a supply chain
Supplier Manufacturer Warehouse Retailers Consumer

Distributor
Buy Make Move Sell Serve

things things things things things
Procurement Production Transportation
or Purchasing Inventory belong to
Warehousing Marketing
Distribution
belong to management
Operations
management
6
1.1 Definitions – Supply Chain Management

Management of material and information flow in a supply chain to
provide the highest degree of customer satisfaction at the lowest possible
cost. Supply chain management requires the commitment of supply chain
partners to work closely to coordinate order generation, order taking, and
order fulfillment.
- Business Dictionary -
Supply chain management is a set of approaches utilized to

efficiently integrate suppliers, manufacturers, warehouses, and stores,
so that merchandise is produced and distributed at the right
quantities, to the right locations, and at the right time, in order to
minimize system wide costs while satisfying service level
requirements.
- Simchi-Levi et al. (2003, p. 1) -
7
1.2 Flows in a supply chain
Information flow
Reverse product flow

1. Product flow
2. Reverse
product flow
3. Cash flow Supplier Manufacturer Warehouse Retailers Consumer

Distributor
4. Information Primary Secondary Secondary Secondary
product product product product
flow flow flow flow flow
Primary cash flow

8
9 2.1 Definitions Effectiveness : How well does a company do what if says it
Is going to do ?
Efficiency : How well ( or poorly )company resources are
used to achieve what a company promises it can do
 According to the CSCMP:

“Logistics management is that part of supply chain
management that plans, implements, and controls the
efficient, eﬀective forward and reverse ﬂow and
storage of goods, services, and related information
between the point of origin and the point of
consumption in order to meet customers’ requirements
10
2.1 Definitions
Forward flow
Raw material Supplier Manufacturer Warehouse Distributors Retailers End users
Reverse flow
Plans
Logistics
Implements Management
Controls
11
2.2 Economic impacts of logistics
 A poor transportation infrastructure 2 key drawbacks that have
 High levels of inventory limited the expansion of
Vietnam’s economy
Economic utility
A product’s being in a form that can be used by the

Form utility customer and is of value to the customer
Having products available where they are needed by

Place utility customers; products are moved from points of lesser value
to points of greater value
Having products available when they are needed by

Time utility customers
Possession The value or usefulness that comes from a customer being

utility able to take possession of a product
2.3 Seven Rs in Logistic
Right product Right quantity

Right
condition/quality
Effectiveness +
Responsiveness
Right place
Right cost/price
12 Right time Right people

13
2.4 Types of Logistics

Reverse Logistics
Return Reuse Recycle Disposal
Suppliers Customers
14
Mass logistics and Tailored logistics
When companies use one logistics
approach to target ALL their customers. Mass logistics
When companies use various logistics approaches
to target various groups of their customers. Tailored logistics
Urban area/
City centre
Suburban area/
Rural area
Transportation
activities Residential area
Mass Tailored
15
Humanitarian logistics
→ Logistics for non-profit situations
16
2.5. The increased importance of Logistics
1. Economic deregulation
2. Changes in consumer behavior
• Customized customer
• Changing family roles
• Rising customer expectations
3. Technological advances
• Disintermediation
• Reduction of paper works
• Shipment tracking
4. The growing power of retailers
5. Globalization of trade
➔ 1 Logistics system does not fit all companies

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C1.

Overview of Logistics and

Understand the concept of

Determine the significance of

Be able to recognize logistics in

II. Logistics Management:

Supplier Manufacturer Warehouse Retailers Consumer

Buy Make Move Sell Serve

1.1 Definitions – Supply Chain Management

Supply chain management is a set of approaches utilized to

Reverse product flow

3. Cash flow Supplier Manufacturer Warehouse Retailers Consumer

Primary cash flow

 According to the CSCMP:

Raw material Supplier Manufacturer Warehouse Distributors Retailers End users

A product’s being in a form that can be used by the

Having products available where they are needed by

Having products available when they are needed by

Possession The value or usefulness that comes from a customer being

Right product Right quantity

12 Right time Right people

2.4 Types of Logistics

Return Reuse Recycle Disposal

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