In this chapter, the following content will be discussed: Reality of SC scope, the multi-dimensions of SC, study framework, the logistics strategy triangle, relationship of logistics to marketing and production, relationship of logistics to marketing, relationship of logistics to production, logistics/SC in diverse areas. | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 06 1 1-2 Reality of SC Scope 1-3 SUPPLY CHAIN MANAGEMENT Interfunctional coordination Interorganizational coordination Activity and process administration The Multi-Dimensions of SC 1-4 Study Framework It involves the decision triangle---The focus is here 1-5 Customer service goals The product Logistics service Information sys. The Logistics Strategy Triangle PRODUCTION/ OPERATIONS Sample activities: · Quality control · Detailed production scheduling · Equipment maint . · Capacity planning · Work measurement & standards LOGISTICS Sample activities: · Transport · Inventory · Order processing · Materials handling Interface activities: · Product scheduling · Plant location · Purchasing MARKETING Sample activities: · Promotion · Market research · Product mix · Sales force management Interface activities: · Customer service standards · Pricing · Packaging · Retail location Production- logistics interface Marketing- logistics . | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 06 1 1-2 Reality of SC Scope 1-3 SUPPLY CHAIN MANAGEMENT Interfunctional coordination Interorganizational coordination Activity and process administration The Multi-Dimensions of SC 1-4 Study Framework It involves the decision triangle---The focus is here 1-5 Customer service goals The product Logistics service Information sys. The Logistics Strategy Triangle PRODUCTION/ OPERATIONS Sample activities: · Quality control · Detailed production scheduling · Equipment maint . · Capacity planning · Work measurement & standards LOGISTICS Sample activities: · Transport · Inventory · Order processing · Materials handling Interface activities: · Product scheduling · Plant location · Purchasing MARKETING Sample activities: · Promotion · Market research · Product mix · Sales force management Interface activities: · Customer service standards · Pricing · Packaging · Retail location Production- logistics interface Marketing- logistics interface Relationship of Logistics to Marketing and Production Internal Supply Chain . 1-21 Relationship of Logistics to Marketing Product Price Promotion Place-Customer service levels Inventory carrying costs Lot quantity costs Order processing and information costs Transport costs Warehousing costs Marketing Logistics . 1-22 1-8 Relationship of Logistics to Production Coordinates through scheduling and strategy— make-to-order or make-to-stock An integral part of the the supply chain Affects total response time for customers Shares activities such as inventory planning Costs are in tradeoff Production lot quantities affect inventory levels and transportation efficiency Production response affects transportation costs and customer service Production and warehouse location are interrelated . 1-9 Logistics/SC in Diverse Areas Manufacturing—most common Environment—causing restrictions Service—emerging opportunities Non-profits—little explored Military—long history
