EBU5609 Logistics and Supply Chain Management

Transcription

1 EBU5609 Logistics and Supply Chain Lecture 1: Introduction to Logistics and Supply Chain Ms. Bing Han Agenda About the module Objectives of the course Readings, lectures and tutorials Session plan Assessment and coursework Ground rules Introduction to Logistics and SCM 2 1

2 Objectives of the module To prepare you to become managers with the knowledge of Logistics and SCM You cannot be taught management, you can only learn it! We will work together to help you develop those skills by: Identifying the principles and practices of contemporary Logistics and SCM Showing you good and bad examples Giving you the chance to think and discuss related issues 3 Readings Core Texts Christopher, Martin (2016) Logistics and Supply Chain, 5 th edition, FT Prentice Hall. Chopra, S. and Meindl P. (2016) Supply Chain Strategy, Planning and Operation, 6 th edition, Pearson. Fawcett, S.E. (2008) Supply Chain : from Vision to Implementation, Prentice Hall. Recommended books: Browersox, D.J., et al. (2007) Supply Chain Logistics, 2 nd edition, McGraw-Hill Leenders, et al. (2006) Purchasing and Supply : with 50 Supply Chain Cases, 13th edition, McGraw-Hill. 4 2

3 5 Lecture notes and reading materials Contents in the lecture notes are what you ll be examined on. Add materials to what s in the core text case studies, supplementary readings, and exercises. Update some out-of-date material in the book on-going subject. Case studies prepare before the session. Also, keep an eye on our QM+ pages 6 3

4 Lectures and tutorials 18 lectures, 4 tutorials in 4 concentrated weeks Lectures (2hrs/session) Lectures In-class exercises mini case studies Tutorials: Case Studies focus on skills building 7 1 Introduction to Logistics and Supply Chain 2 Supply Chain Organisation 3 Process Thinking: SCM's Foundation 4 Technology in Logistics and Supply Chain 5 Customer Fulfilment 6 Order Fulfilment Cycle - Purchasing, Production and Logistics 7 Supply Chain Mapping 8 Core Competencies and Outsourcing 9 Environmental Scanning and Global Supply Chain 10 Cost in SCM 11 Inventory 12 Managing Uncertainty in the Supply Chain 13 Operational issues in the Supply Chain 14 Performance Measurement in the Supply Chain 15 Collaborative Innovation in the Supply Chain 16 People 17 Law and Ethics in SCM 18 Relationship 8 4

5 Assessment Exam 4 essay questions, ALL 4 are compulsory, 25% each 75% of total marks Group coursework report (due date: 4 th June 2017) In groups of 5 A company in the related industry of your own choice Each group will produce a report 25% of total marks 9 Coursework (cont d) Group-based SCM analysis report Groups of 5 You must join a team via QM+ by Friday 31 March, otherwise, you may lose your coursework marks Submission deadline: 23:55 BST Sunday 04/06 (Monday morning for the paper copies) Group dynamics: very important refer to the guidelines on QM+ Submission details can be found at the coursework information folder 10 5

6 Ground Rules No mobiles to be left on That includes text messaging or browsing the Internet! Arrive on time If you are more than 15 minutes late you will be excluded from the session No side discussions If there is something to talk about, we can all discuss it Questions now or on Module Discussion Forum 11 Message Boards and QM+ pages This is the only way module-related questions will be answered electronically, any direct will be ignored Questions are likely to be asked by several students. All students will be able to see questions and responses Check QM+ regularly Lecture notes are available before lectures on the EBU5609 web page, in Teaching Week X folder 12 6

7 Logistics and SCM An Introduction Learning Objectives 1. Define supply chain management and identify how supply chain collaboration can improve performance. 2. Discuss the extent to which supply chain strategies are being implemented. 14 7

8 Theory of Supply Chain Companies seek to design business models that meet customer needs better than competitors. Success depends on the ability to Design, Make, and Deliver innovative, high quality, low cost products and services that customers demand. 15 Theory of Supply Chain (Cont d) Supply chain management allows companies to focus on their unique skill sets. Economic theory of comparative advantage Adam Smith: 1) the wealth of a nation, product of its labour; 2)the greatest improvements in the product of labour result from the division of labour. 16 8

9 Theory of Supply Chain (Cont d) It s the theory of comparative advantage applied at the company level. SCM allows companies to do what they do well. Other activities are outsourced to companies with complementary capabilities. 17 Theory of Supply Chain (Cont d) Supply chain management requires a common understanding of supply chain objectives and individual roles, an ability to work together, and a willingness to adapt in order to create and delivery the best products and services possible. 18 9

10 Supply Chain: Manufacturing Example 19 Supply Chain: Manufacturing Example 20 10

11 Supply Chain: Service Example 21 Supply Chain: Service Example 22 11

12 Supply Chain Defined Supply chain management is the design and management of seamless, value-added processes across organisational boundaries to meet the real needs of the end customer. -Institute for Supply (Leenders, 2006 p6) 23 Logistics defined the part of the supply chain that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers requirements. - Council of Logistics (Leenders, 2006 p5) 24 12

13 Supply Chain Integration Common 25 Internal Value Chain Elements Executive defines company strategy and allocates resources to achieve it. Supply coordinates the upstream supply base, finding the right suppliers and building the right relationships with them. Operations transforms the inputs acquired from suppliers into more highly valued products. Logistics moves and stores materials so they are available when and where they are needed. Marketing manages the downstream relationships with customers, identifying their needs and communicating to them how the company can meet those needs

14 Internal Value Chain Elements Human Resources designs the systems used to hire, train, and develop the company s employees. Accounting maintains business records that provide information needed to control operations. Finance acquires and controls the capital required to operate the business. Information Technology builds and maintains the systems needed to capture and communicate information among decision makers. Research and Development (R&D) is responsible for new product development. 27 Supply Chain Integration Internal Process Integration: increase collaboration among the company s functional groups. Backward Process Integration: collaboration with 1sttier and 2nd-tier (leading companies) suppliers. Forward Process Integration: collaboration with 1sttier customers. Complete Integration: collaboration from the suppliers supplier to the customers customer

15 Internal Value Chain: Local Focus Executive R & D Information Technology Operations Supply Logistics Finance Marketing Accounting Human Resource 29 Internal Value Chain: Company Focus Executive R & D Information Technology Operations Upstream Suppliers Supply Logistics Downstream Customers Finance Marketing Accounting Human Resource 30 15

16 Internal Value Chain: Company Focus Executive R & D Information Technology Operations Upstream Suppliers Supply Logistics Downstream Customers Finance Marketing Accounting Human Resource 31 SCM: Linked Value Chains Executive R & D Information Technology Operations Executive R & D Executive R & D Executive R & D Executive R & D Information Technology Information Operations Technology Operations Information Technology Information Operations Technology Operations Supply Supply Supply Logistics Logistics Supply Supply Logistics Logistics Logistics Finance Finance Marketing Marketing Finance Finance Marketing Marketing Accounting Human Resource Accounting Human Resource Accounting Human Resource Accounting Human Resource Finance Marketing Supplier s Supplier Supplier Accounting Focal Firm Human Resource Customer Customer s Customer 32 16

17 Supply Chain Integration Common Theoretical Ideal 33 Supply Chain Problems The goal of supply chain management is to use technology and teamwork to build efficient and effective processes that create value for the end customer. The goal is compromised when processes, value chain elements, and/or companies work toward local rather than global optimum

18 The Bullwhip Effect Variation in demand is exaggerated as information moves upstream away from the point of use. Variation in demand is exaggerated due to infrequent demand and/or inventory level information exchange and order batching. 35 The Bullwhip Effect 36 18

19 The Bullwhip Effect Bullwhip effect costs can be as high as 12-25% Bullwhip can be effectively mitigated by: Sharing point of sale data Collaborative forecasting Collaborative future product promotion planning 37 References Chopra, Ch3 Fawcett, Ch