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Video Lectures for MBA

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Logistics Management
Introduction to the Course

Jing Yuan
Feb, 2012
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Introduce Yourself
Lets me know who you are.
Whats logistics management?
Supply chain management Vs. logistics
management

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Outline
Introduce yourself
Who I am
Course introduction
Course description
Learning objectives
Textbooks
Grading policy
Schedules
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Outline
Introduce yourself
Who I am
Course introduction
Course description
Learning objectives
Textbooks
Grading policy
Schedule
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Course description
An introductory course in the analysis,
design and operation of logistics and
supply chain
Presented through lectures along with
several case studies and experiments
The lectures consist of nine parts
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Learning objectives
Knowledge the strategic role of the supply
chain
An understanding of logistic systems &
their management problems
Ability to devise workable solutions in
business situations
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Textbooks
Textbook
Harrison, A. and Hoek, R. V. (2010) Logistics
Management and Strategy, third edition,

References (not required)
Christopher, M. (2006) Logistics and Supply
Chain Management: Creating Value-adding
Network, third edition,

2010
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Lecture Organization
Lecturing
Videos
Group exercises
Case discussion
Case study presentations
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Grading Policy
Grading
Assignment and Quiz 10%
Midterm 20%
Final Project 70%
Midterm
Case study
Final presentation
Final project
A closed examination held in the last week of term
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Schedule
Lectures
14 weeks
Case study presentations
2 weeks
Experiments
2 weeks
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Logistics and supply chain
Logistics Management
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logistics and Supply chain 1
Material and information flow 2
Competing through logistics 3
Logistics strategy 4
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Seven-eleven convenience store
Describe the key logistics processes at 7-11.
What differences between the early reform
and the regional distribution center at 7-11.
What do you think are the main logistics
challenges in running the 7-11 operation.
Case study
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Case study
Centralized
distribution
No
distribution
center
Built its own
distribution
center---joint
distribution
First stage Second stage Third stage
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Key issues
1
What is supply chain, and
how is it structured?
2
What is the purpose of a
supply chain?
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The Supply Chain Concept
Development of the Concept
Total systems cost - remains an important element
of logistics analysis.
Outbound logistics the warehousing and
distribution of finished goods.
Inbound logistics the receiving and warehousing
of raw materials, and their distribution to
manufacturing as they are required.
Value chain analysis integrated logistics activities.
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Business Logistics in a Firm
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A supply chain is a group of partners who
collectively convert a basic commodity (upstream)
into a finished product (downstream) that is
valued by end-customers, and who manage
returns at each stage.
The Supply Chain management Concept
Definition
Planning and controlling all of the processes
that link partners in a supply chain together in
order to serve needs of the end-customer.
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The process starts with
several external suppliers
that move milk, cardboard,
and plastic to the processing
plant.
After the milk is processed
and packaged, it is delivered
to retailers, who sell it to
customers. The alternative
delivery system is delivery
from a warehouse directly to
customers homes.
Supply chain:
structure and tiering
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Supply chain:
structure and tiering
Supply chain can be fairly
complex. The supply
chain for a car
manufacturer includes
hundreds of suppliers,
dozens of manufacturing
plants (for parts) and
assembly plants (for cars),
dealers, direct business
customers, wholesalers,
customers, and support
functions such as product
engineering and
purchasing.
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Logistics concept
Definition
The task of coordinating material flow
and information flow across the supply
chain.
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Activity 1
Wheat Flour
Praline Wafers
Chocolate
Confectionery
manufacturer
Packing
Creamery
(milk)
Cocoa
beans
Sugar
Vegetable
oil
Cocoa
butter
Lecithin
Emulsifiers,
Salt, etc.
Printed
materials
Aluminium Fiberboard
Multiple
retailers
Wholesalers
Others
(hospital etc.)
End
customers
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logistics and Supply chain 1
Material and information flow 2
Competing through logistics 3
Logistics strategy 4
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Key issue
1
What is the relationship between
material flow and information
flow?
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Case study: Seven-eleven
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Case study: Seven-elevens distribution
strategy
Delivery arrives from over 200 plants
Delivery is cross docked at DC (over 80 DCs for
food)
Food DCs store no inventory
Combined delivery system: frozen foods, chilled
foods, room temperature and hot foods
11 truck visits per store per day (compared to 70
in 1974)
No supplier (not even coke!) delivers direct
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Case study: Seven-elevens
Information Strategy

Quick access to up to date information (as
contrasts with data)
High speed data network linking stores, headquarters,
DCs and suppliers
Store hardware
Store computer
POS registers linked to store computer
Graphic Order Terminals
Scanner terminals for receiving

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Integrated Logistics Management
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Material and information flow
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Material and information flow
Material flow
Information flow
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Activity 2
Describe the material and information flow in the
supply network affecting one of the major
products in Activity 1.
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logistics and Supply chain 1
Material and information flow 2
Competing through logistics 3
Logistics strategy 4
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Key issues
1
How do products win orders in
the marketplace?
2
How does logistics contribute
to competitive advantage?
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Creating logistics advantage: three
basic ways
Logistics advantage
quality
time
cost
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Creating logistics advantage:
controlling variability
Variability undermines the dependability with which a product or
service meets target.
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Order winners and order qualifiers
Order winners
are factors that directly and
significantly help products to
win orders in the
marketplace.
Customers regard such
factors as key reasons for
buying that product or
services.
Different logistics
performance
objectives
Order qualifiers
are factors that are regarded
by the market as an entry
ticket.
Unless the product or service
meets basic performance
standards, it will not be taken
seriously.
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Activity 3
Compare the details for characteristics of
both household appliance and mobile
phones product lines.
Go on to identify the principal order
winners and qualifiers for each product.
Vs.
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logistics and Supply chain 1
Material and information flow 2
Competing through logistics 3
Logistics strategy 4
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The value chain: Linking supply chain
and business strategy
New
Product
Development
Marketing
and
Sales
Operations
Business Strategy
New Product
Strategy
Marketing
Strategy
Supply Chain Strategy
New product
Development
M
a
rk
et
in
g
a
n
d
s
al
e
s
Ope
ratio
ns
Distri
butio
n
Se
rvi
ce
Finance, Accounting, I nformation Technology, Human Resources
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How to Achieving Strategic Fit
Understanding the Customer
Lot size
Response time
Service level
Product variety
Price
Innovation
How to measure?
Implied Demand
Uncertainty
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Levels of Implied Demand Uncertainty
Detergent High Fashion
Low
High
Price
Responsiveness
Customer Need
Implied Demand Uncertainty
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Understanding the Supply Chain: Cost-
Responsiveness Efficient Frontier
High
High
Low
Low
Cost
Responsiveness
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Achieving Strategic Fit
Implied
uncertainty
spectrum
Responsive
supply chain
Efficient supply
chain
Certain
demand
Uncertain
demand
Responsiveness
spectrum
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Strategic Scope
Suppliers
Manufacturer Distributor Retailer Customer
Competitive
Strategy
Product Dev.
Strategy
Supply Chain
Strategy
Marketing
Strategy
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Drivers of Supply Chain Performance
Efficiency Responsiveness
I nventory Transportation Facilities I nformation
Supply chain strategy and structure
Drivers
Competitive strategy
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Considerations for Supply Chain Drivers
Driver Efficiency Responsiveness
Inventory Cost of holding Availability
Transportation Consolidation Speed
Facilities Consolidation /
Dedicated
Proximity /
Flexibility
Information What information is best suited for
each objective
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