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    Chapter 1 - Foundamental of Logistics & Supply Chain Management

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    Tuấn Trần Bảo
    The document is a chapter about fundamentals of logistics and supply chain management. It defines key terms like supply chain, supply chain management, and logistics. It describes the objectives and basic activities of supply chain management, including planning and managing the flow of goods and information from suppliers to customers. It also outlines important logistics activities like transportation, warehousing, and inventory management. Current trends in supply chain and logistics emphasized in the chapter include improving communication, customer service, and collaboration across the supply network.

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    Chapter 1 - Foundamental of Logistics & Supply Chain Management

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    Tuấn Trần Bảo
    168 views23 pages
    The document is a chapter about fundamentals of logistics and supply chain management. It defines key terms like supply chain, supply chain management, and logistics. It describes the objectives and basic activities of supply chain management, including planning and managing the flow of goods and information from suppliers to customers. It also outlines important logistics activities like transportation, warehousing, and inventory management. Current trends in supply chain and logistics emphasized in the chapter include improving communication, customer service, and collaboration across the supply network.

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    Chapter 1_Foundamental of Logistics & Supply Chain Management

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    The document is a chapter about fundamentals of logistics and supply chain management. It defines key terms like supply chain, supply chain management, and logistics. It describes the objectives and basic activities of supply chain management, including planning and managing the flow of goods and information from suppliers to customers. It also outlines important logistics activities like transportation, warehousing, and inventory management. Current trends in supply chain and logistics emphasized in the chapter include improving communication, customer service, and collaboration across the supply network.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    168 views23 pages

    Chapter 1 - Foundamental of Logistics & Supply Chain Management

    Uploaded by

    Tuấn Trần Bảo
    The document is a chapter about fundamentals of logistics and supply chain management. It defines key terms like supply chain, supply chain management, and logistics. It describes the objectives and basic activities of supply chain management, including planning and managing the flow of goods and information from suppliers to customers. It also outlines important logistics activities like transportation, warehousing, and inventory management. Current trends in supply chain and logistics emphasized in the chapter include improving communication, customer service, and collaboration across the supply network.

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    © All Rights Reserved
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    of 23

    LOGO

    Chapter 1
    Fundamentals of
    Logistics and Supply
    Chain Management
    Lecturer: Dr. Nguyen Hang Giang Anh

    1
    LOGO
    Learning Objectives

    ❖ Describe a supply chain and define supply chain


    management.
    ❖ Describe the objectives and elements of supply chain
    management.
    ❖ Describe basic supply chain management activities.
    ❖ Understand the definition and importance of Logistics.
    ❖ Describe Logistics activities.
    ❖ Identify the challenges and current trends in Logistics.
    2
    LOGO
    Main Content

    1. Supply Chain

    2. Logistics
    LOGO

    1. SUPPLY CHAIN
    LOGO
    Products and Operations

    ❖ Products: Goods (tangible) and Services (intangible).


    ❖ Operations: manufacturing, serving, transporting, selling,
    training, and so on. The main outputs are products.

    5
    LOGO
    What is a Supply chain?

    6
    LOGO
    Activities in Supply Chain

    7
    LOGO
    Structure of the Supply chain

    ❖ Supply Chain is a series of activities and organizations


    that move materials from initial suppliers to final
    customers.

    ❖ Upstream supply chain activities: involve initial supplier,


    second tier supplier, first tier supplier.

    ❖ Downstream supply chain activities: involve first tier


    customer, second tier customer, final customer.

    8
    LOGO
    Supply Chain of Coca-Cola
    Supply Chain Management LOGO

    ❖ Supply chain management is defined as: “The planning and


    management of all activities involved in sourcing and procurement,
    conversion, and all logistics management activities. Importantly, it
    also includes coordination and collaboration with channel partners,
    which can be suppliers, intermediaries, third-party service
    providers, and customers” - Council of Supply Chain
    Management Professionals (CSCMP)

    ❖ Goals:
    o Produce and distribute products at the right quantities, to the
    right place, at the right time.
    o Minimize total cost while satisfy service level requirements.
    https://www.youtube.com/watch?v=Mi1QBxVjZAw

    10
    LOGO
    Importance of SCM

    When a firm, its customers, and its suppliers all know each
    other’s future plans and are willing to work together → the
    planning process is easier and much more productive.
    o lower purchasing and inventory carrying costs,
    o better product quality,
    o higher levels of customer service.
    → all leading to more sales and better profits.
    LOGO

    2. LOGISTICS
    LOGO
    What is Logistics?

    “Logistics is defined as the process of planning, implementing


    and controlling the efficient, effective flow and storage of goods,
    services and related information from point of origin to point of
    consumption for the purpose of conforming to customer
    requirements” - Council of Supply Chain Management
    Professionals (CSCMP)

    13
    LOGO
    Basic Definitions

    ❖ Logistics is the function responsible for the flow of


    materials/information from suppliers into an
    organization, through operations within the
    organization, and then out to customers.

    ❖ Logistical value proposition:


    ▪ Cost minimization.
    ▪ Service benefits/Customer satisfaction.

    14
    LOGO
    Role of Logistics

    Inbound logistics: activities between external suppliers and the organization.


    Outbound logistics: activities between external customers and the
    organization.
    Operations within the organization: activities between internal suppliers and
    internal customers.
    15
    LOGO
    Activities of Logistics

    16
    LOGO
    Importance of Logistics
    ❖ Return on assets (ROA) is a fundamental indicator of
    efficiency, measuring how well a business is using its
    assets to generate profit.
    LOGO
    Example

    Assume that ABC company currently has sales of 20


    million/year, with
    ❖ a stock level of 35% of sales,
    ❖ annual holding cost for the stock is 20% of value,
    ❖ operating cost is 8 mil./year,
    ❖ other assets are valued at 15 mil.
    Question: What is the current return on assets? How does
    this change if stock levels are reduced to 25% of sales?
    LOGO
    Solution
    LOGO
    Current Trends in Logistics (1/2)

    ❖ Improving communication
    o Electronic data interchange (EDI).
    o Electronic point-of-sales data (EPOS).
    o E-purchasing of e-procurement.
    o Support of EDI.
    o Item coding (often bar-coding, QR codes).
    o Electronic Fund Transfer (EFT).
    ❖ Improving customer service
    o Lower lead-times.
    o Synchronized material movement.
    o Mass customization. 20
    LOGO
    Current Trends in Logistics (2/2)
    ❖ Other significant tendencies:
    o Globalization.
    o Reduced number of suppliers.
    o Concentration of ownership.
    o Outsourcing.
    o Make or Buy.
    o Cross-docking.
    o Direct delivery.
    o Stock reduction methods.
    o Increasing environmental concerns.
    o More collaboration along the supply chain. 21
    2. role and structure of supply LOGO
    chains
    LOGO

    Link:
    http://www.youtube.com/watch?v=V4JRH3e4xrg&feature
    =related

    23

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