Transportation$352.ppt

Logistics management Outline Some facts Understanding the supply chain Supply Chain Strategy Case study discussion Team up Example 1.1, 1.2, 1.4 and 1.5 Assignment 1 Paper reading Where can you find this paper “ Critical Issues in Transportation 2002”? Logistics in the Economy (1990, 1996) Freight Transportation $352, $455 Billion Inventory Expense $221, $311 Billion Administrative Expense $27, $31 Billion Logistics Related Activity 11%, 10.5% of GNP Logistics in the Manufacturing Firm Profit 4% Logistics Cost 21% Marketing Cost 27% Manufacturing Cost 48% Some facts about inventory Carrying Estimated that the grocery industry could save $30 billion (10% of operating cost) by using effective logistics and supply chain strategies A typical box of cereal spends 104 days from factory to sale A typical car spends 15 days from factory to dealership Laura Ashley turns its inventory 10 times a year, five times faster than 3 years ago More facts and estimation Compaq estimates it lost $.5 billion to $1 billion in sales in 1995 because laptops were not available when and where needed When the 1 gig processor was introduced by AMD, the price of the 800 mb processor dropped by 30% PG estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demand Understanding the supply chain What is a Supply Chain? Introduction The objective of a supply chain Decision Phases in a Supply Chain Process View of a Supply Chain The Importance of Supply Chain Flows Case study discussion--Examples of Supply Chains What is a Supply Chain?Supply Chain Example What is a Supply Chain? All stages involved, directly or indirectly, in fulfilling a customer request Includes manufacturers, suppliers, transporters, warehouses, retailers, customers Within each company, the supply chain includes all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service) Examples: Fig.