Supply chain management

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SUPPLYCHAIN_LESSON4.pptx

SUPPLY CHAIN MANAGEMENT Session 4 The reason of Logistics Customer service Forecasting

Barcelona, Fall 2018

Luis J. Díaz. Industrial Engineer. M.B.A.

SUPPLY CHAIN MANAGEMENT

CUSTOMER-FOCUSED MARKETING

Logistics contributes to an organization´s success by accommodating customer´s delivery and inventory availability expectations and requierements.

Four ideas:

Customer needs are more than products or services.

All markets are composed of different segments.

Customers must be readily able to obtain the products they desire.

Profitability contrasted to sales volume.

We can´t give the same customer service level to all customers.

Transactional: Short-term interaction

Relationship: Focused on the development of long-term relations!!!!

SUPPLY CHAIN MANAGEMENT

TRANSACTIONAL VS- RELATIONSHIP MARKETING

AVAILABILITY: Capacity to have inventory when desired by a customer

STOCKOUT FREQUENCY: Probability of not having inventory.

FILL RATE: Magnitude of stockouts over time.

ORDERS SHIPPED COMPLETE

SUPPLY CHAIN MANAGEMENT

CUSTOMER SERVICE ATRIBUTES

FIRM´S ABILITY TO PERFORM ALL ORDER-RELATED ACTIVITIES AS WELL AS PROVIDE CUSTOMERS WITH CRITICAL INFORMATION REGARDING LOGISTICAL OPERATIONS AND STATUS

SUPPLY CHAIN MANAGEMENT

SERVICE RELIABILITY

Order capture

Inventory management

Purchasing and supplier management

Production/manufacturing

Warehousing

Transportation

SUPPLY CHAIN MANAGEMENT

PERFORMANCE INDICATORS IN THE SC (KPI´S) (1)

The first-tier KPIs would be the ones monitored at an executive level in your company, and would perhaps include metrics like:

Logistics costs as a percentage of sales

Inventory turns

Total inventory days

Source-to-deliver cycle time (the time from sourcing raw materials to delivery of finished goods)

SUPPLY CHAIN MANAGEMENT

PERFORMANCE INDICATORS IN THE SC (KPI´S) (2)

CUSTOMER SUCCESS SHIFTS THE FOCUS FROM EXPECTATIONS TO THE CUSTOMER´S REAL REQUIREMENTS : WHICH ARE OUR CUSTOMER´S CUSTOMER NEEDS?

SUPPLY CHAIN MANAGEMENT

CUSTOMER SUCCESS

PHILOSOPHY

CUSTOMER SERVICE

CUSTOMER SATISFACTION

CUSTOMER SUCCESS

FOCUS

MEET INTERNAL STANDARDS

MEET EXPECTATIONS

MEET CUSTOMER´S CUSTOMERS REQUIREMENTS

SUPPLY CHAIN MANAGEMENT

WHAT IS PROJECTED TO BE SOLD ,WHEN AND WHERE”

Logistics forecasts are necessary:

To support collaborating planning.

To drive requirements planning.

To improve resource management.

SUPPLY CHAIN MANAGEMENT

FORECASTING

FORECASTING COMPONENTS:

Base demand

Seasonal demand

Trend

Cyclic

Promotion

Irregular

SUPPLY CHAIN MANAGEMENT

FORECASTING

THANK YOU!