Supply chain management
Rust99
SUPPLYCHAIN_LESSON1.pptxSUPPLY CHAIN MANAGEMENT Session 1 An introduction to Logistics
Barcelona, Fall 2018
Luis J. Díaz. Industrial Engineer. M.B.A.
Logistics: To place the right product at the right place at the right time at the lowest possible cost
Logistics involves the management of order processing, inventory, transportation and the combination of warehousing, materials handling and packaging.
Te goal of Logistics is to support procurement, manufacturing and customer accomodation.
SUPPLY CHAIN MANAGEMENT
INTRODUCTION TO LOGISTICS
LOGISTICS DEFINITION
First Logistics references: Year 1800!!!
Logistics in the Organization:
Originally: Only transportation
Next step. To support the manufacturing process Until 80´: “Factory is the queen”. Market buys what we decide to manufacture.
1980- . “Customer is King”. Marketing oriented Companies. Logistics supports this new situation
21st- century. Logistics will be managed as an integrated effort to achieve customer satisfaction at the lowest total cost.
Part of the supply chain!!!!
SUPPLY CHAIN MANAGEMENT
INTRODUCTION TO LOGISTICS
HISTORIAL DEVELOPMENT
Globalization
Global procurement
Global markets
High competition markets
Similar products
Market decides the price
similar prices
SUPPLY CHAIN MANAGEMENT
WHY IS LOGISTICS SO RELEVANT
IN 21-ST CENTURY ORGANIZATIONS ?
HOW CAN WE DIFFERENT (BETTER) THAN OTHERS??????? CUSTOMER SERVICE !!!!!!
SUPPLY CHAIN MANAGEMENT
WHY IS LOGISTICS SO RELEVANT
IN 21-ST CENTURY ORGANIZATIONS ?
Firms having world-class logistical competency enjoy competitive advantage as a result of providing their most important customers superior service
It has been established that logistics should be managed as integrated effort to achieve customer satisfaction at the lowest total cost
SUPPLY CHAIN MANAGEMENT
WHAT DOES TOTAL LOWEST COST MEAN?
Originally: Lowest possible cost of each individual function of logistics.
21st-century challenge: TOTAL COST TRADE-OFF IN SUPPLY CHAINS
Two key areas that command maximum attention are Inventory management and Transportation. But reducing inventory can lead to an increase in transportation cost. Likewise, cutting down transportation frequency will automatically lead to higher inventory
SUPPLY CHAIN MANAGEMENT
TOTAL LOWEST COST
| A | 96 | 0,40 | 38,4 | - | 0,60 | 0,0 | - | 0,00 | 0,0 | - | 0,00 | 0,0 | 38,4 | 38 | F |
Level of service a firm provides all stablished customers.
Availability involves having inventory to consistently meet customer material or product requirements
Operational performance: Time requiered to deliver a customer´s order
Speed
Consistency (Reliability): Fullfill what we promise
Flexibility
Recovery time (when something unexpected happens……..)
SUPPLY CHAIN MANAGEMENT
BASIC LOGISTICS SERVICE
THANK YOU!
