SCTHouse of ScMCompetitivenessCustomer serviceIntegration:CoordinationUseof informationChoice of partnersandcommunicationtechnologyNetwork organizationand inter-organi-Process orientationzational collaborationSource:ScMLeadershipAdvanced planningoverview-HStadtlerFoundations:Logistics,marketing,operationsresearch,organizational theory,purchasingand supply6王长琼武汉理工大学
House of SCM 6 Source: SCM overview - H Stadtler 王长琼 武汉理工大学
ComparingbetweenSCMandLM Sc is a network consisting firms collaboratingto improve operating efficiency; Logistics is the process required to move andgeographically position inventory, and is asubset of the framework of sCM.: Supply chain strategy establishes a operatingframework within which logistics is performed.王长琼武汉理工大学
• Comparing between SCM and LM • SC is a network consisting firms collaborating to improve operating efficiency; • Logistics is the process required to move and geographically position inventory, and is a subset of the framework of SCM. • Supply chain strategy establishes a operating framework within which logistics is performed. 7 王长琼 武汉理工大学
ScMhasevolvedfromlogistics managementStage1:Fragmentationtophysical distribution (1960s and 1970s)Different related functions (e.g., warehousing, order processing, transport, customer service)wereoriginallyfragmentedandbecametreated inamoreintegratedwayforvariousreasons(e.g., product line expansion, increasing transport costs,products with higher value-to-weightratios).Stage 2: Integrated logistics management (1970s and 1980s)Cost savings through integrating inbound (materials management) and outbound (physicadistribution)functions were identifiedundertheheadingof“businesslogistics".Thisprocesswas accelerated through greater transport deregulation, more international competition, andmore overseas sourcing for raw materials or components. Muchgreater emphasis was placedon reducing inventory levels. Integration within a company linked purchasing,manufacturingwarehousing, inventory management, sales order processing and transport.Stage 3: Supply chain management (1980s to present time)Partnerships were established between different members of the supply chain, not onlysuppliersandcustomersinthedistribution(ormarketing)channel,butalsothirdpartylogisticsproviders.Collaborationbetweensupplychainmembersenables muchgreater efficiencyofdelivery combined with lower inventory levels throughout the supply chain.8王长琼武汉理工大学
SCM has evolved from logistics management Stage 1: Fragmentation to physical distribution (1960s and 1970s) Different related functions (e.g., warehousing, order processing, transport, customer service) were originally fragmented and became treated in a more integrated way for various reasons (e.g., product line expansion, increasing transport costs, products with higher value-to-weight ratios). Stage 2: Integrated logistics management (1970s and 1980s) Cost savings through integrating inbound (materials management) and outbound (physical distribution) functions were identified under the heading of “business logistics”. This process was accelerated through greater transport deregulation, more international competition, and more overseas sourcing for raw materials or components. Much greater emphasis was placed on reducing inventory levels. Integration within a company linked purchasing, manufacturing, warehousing, inventory management, sales order processing and transport. Stage 3: Supply chain management (1980s to present time) Partnerships were established between different members of the supply chain, not only suppliers and customers in the distribution (or marketing) channel, but also third party logistics providers. Collaboration between supply chain members enables much greater efficiency of delivery combined with lower inventory levels throughout the supply chain. 8 王长琼 武汉理工大学
(2)物流管理的要点LM is an integrating function, which coordinatesand optimizes all logistics activities, as well asintegrates logistics activities with other functionsincluding marketing, sales manufacturing, financeand information technology..Managethreetypes offlows: material flows,---spaceutility&time utilityinformationflows,--- IT, IS, ERP monetary flows. ---global trade & logistics,Currency fluctuations and fiscal regulations9王长琼武汉理工大学
（2）物流管理的要点 LM is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance and information technology. • Manage three types of flows: - material flows, - space utility & time utility - information flows, - IT, IS, ERP - monetary flows. -global trade & logistics, Currency fluctuations and fiscal regulations 9 王长琼 武汉理工大学
Logistics Management 活动Management actionsOutputs ofInputs intoPlanningImplementationControllogisticslogisticsMarketingNaturalorientationresources(competitiveland, facilities,advantage)and equipment)Logistics managementTimeHumanand placeRawFinishedIn-processSuppliersCustomersresourcesutilitymaterialsgoodsinventoryEfficientFinancialmovementresourcesto customerProprietaryInformationassetresourcesLogistics activities?Customer service.Plant and warehouse siteDemand forecastingselectionDistribution.Procure mentcommunications.PackagingInventory controlReturn goods handlingMaterial handlingSalvage and scrap disposalOrder processing.Traffic and transportation.Partsand service support.Warehousing and storage10王长琼武汉理工大学
Logistics Management 活动 Planning Implementation Control Management actions Marketing orientation (competitive advantage) Efficient movement to customer Time and place utility Proprietary asset Outputs of logistics Natural resources (land, facilities, and equipment) Financial resources Human resources Information resources Inputs into logistics Logistics activities • Customer service • Demand forecasting • Distribution communications • Inventory control • Material handling • Order processing • Parts and service support • Plant and warehouse site selection • Procurement • Packaging • Return goods handling • Salvage and scrap disposal • Traffic and transportation • Warehousing and storage Raw materials In-process inventory Finished goods Suppliers Customers Logistics management 王长琼 武汉理工大学 10