Logistics and the Supply Chain（PPT 24）.ppt

PowerPoint by Carol J. Johnson, Ph.D. CHAPTER 1 Logistics and the Supply Chain Learning Objectives To learn the definition of logistics To understand the economic importance of logistics To learn of recent events and their influences on logistics practices Learning Objectives To gain an understanding of logistics practices within a firm To learn different pricing policies To know about logistics careers Logistics and the Supply Chain Key Terms Channel intermediaries Cost trade-offs Economic utility FIFO FOB origin/destination pricing systems Key Terms Form utility Freight absorption Landed costs LIFO Marketing channel Logistics and the Supply Chain Key Terms Phantom freight Place utility Possession utility Reverse logistics Supply chain Key Terms Stock-keeping units (SKUs) Stockouts Systems approach Time utility Total cost approach Economic Impacts of Logistics Macroeconomic Impacts Economic Utility Possession utility Form utility Place utility Time utility Table 1-1: The Cost of the Business Logistics System In Relation to Gross Domestic Product (GDP) In $ Billion Logistics: What It Is Council of Logistics Management definition: “Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.” The Increased Importance of Logistics A Reduction in Economic Regulation Recognition by Prominent Non-Logisticians Technological Advances The Growing Power of Retailers Globalization of Trade The Systems and Total Cost Approaches to Logistics Systems Approach Interdependence of company and logistics goals Interdependence of functional areas Stock-keeping units (SKUs) Interdependence of logistics activities or Intrafunctional logistics Figure 1-1: Control Over the Flow of Inbound and Outbound Movements Figure 1-2: The Utilization of Lo