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Ch1

Chapter 1 introduces logistics and supply chain management, outlining their definitions, differences, and significance in manufacturing and services. It highlights key developments in the evolution of these fields, including reduced transport intensity and productivity improvements. The chapter emphasizes that effective logistics and supply chain management can lead to cost reduction and value addition, influencing society significantly.

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4 views

Ch1

Chapter 1 introduces logistics and supply chain management, outlining their definitions, differences, and significance in manufacturing and services. It highlights key developments in the evolution of these fields, including reduced transport intensity and productivity improvements. The chapter emphasizes that effective logistics and supply chain management can lead to cost reduction and value addition, influencing society significantly.

Uploaded by

loait95
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER 1

Introduction
LEARNING OBJECTIVES

· Explain the origins of logistics and supply chain


management.

· Define both terms and outline how logistics and supply


chain management differ from each other.

· Highlight the importance of these areas in both


manufacturing and services contexts.

· Identify how best practice logistics and supply chain


management can yield both cost reduction and value
addition.

· Show how supply chains have a major influence on society.


The evolution of logistics and
supply chain management

· Six key developments:

1. Reduced transport intensity of freight


2. Falling product prices
3. Deregulation of transport
4. Productivity improvements
5. Emphasis on inventory reduction
6. Changes in company structure

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Productivity Improvements

End of Chapter Note #2:


For a fascinating insight into the life of McLean and
the growth of containerisation see:
Levinson, P (2006) The Box, Princeton University
Press, Princeton, NJ.

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What is logistics?

· Logistics involves getting

– the right product,


– in the right way,
– in the right quantity and right quality,
– in the right place at the right time,
– for the right customer at the right cost

· Its not just ‘trucks and sheds’

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What is supply chain
management?

· The supply chain is the network of organisations that are


involved, through upstream and downstream linkages, in
the different processes and activities that produce value in
the form of products and services in the hands of the
ultimate consumer

· Supply chain management (SCM) is the management


across and within a network of upstream and downstream
organisations of both relationships and flows of material,
information and resources. The purposes of SCM are to
create value, enhance efficiency, and satisfy customers

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The evolution of the integrated
supply chain
Key flows in SCM

· Physical flows of materials

· Flows of information that inform the supply chain

· Resources (especially finance, but also others such as


people and equipment) which help the supply chain to
operate effectively
– Furthermore, not all resources in the supply chain are
tangible, for example good quality inter-company
relationships are often cited as a highly important
ingredient of effective supply chains
Distinguishing logistics and SCM
Applications to manufacturing
and services

· Logistics and SCM can be used to generate both cost


savings and service enhancements
– e.g. after sales service and delivery add-ons

· Robust logistics strategies enable the entire supply chain


to compete
– e.g. Ikea
o ‘flat packed’ products, simplified and standardised
processes
– e.g. triage
o rapid assessment of patient needs, matching
patients with the right care stream as early as
possible
CHAPTER 1 – END OF SHOW

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