Supply Chain Management; Chapter 1-3
Organization Consolidation and Power Shift
1980-1990: Power shifted from product manufacturers to retail end of supply chain
What percentage of current Logistics/SC executives will retire in the next 10-15 years?
65%
Motor
All shipments use motor at some point, restricted quantity, most accessible
Dollar Value
As the dollar value of a product goes up, so do transportation, warehousing, package costs, materials handling
Operational
BBA/Entry level jobs
Advance Shipments Notices
Barcode on the pallet that indicates everything on it
BRICS
Brazil, Russia, India, China
Strategic
C-Level Management
Port Security
CSI: 80% of imports through ports are checked for security
~2000
Characterized as being powered by individuals
International Freight Forwarders
Companies that help you navigate international waters
Micro Dimensions of Logistics
Competitive Relationships, Order Cycle, Sustainability, Inventory Effect, Transportation Effect, Spatial Relationships
Empowered Consumers
Competitive prices, high quality in products, customized products, 24/7 responsiveness, flexibility
1800-2000
Driven by companies seeking goods, materials, labor, economies of scale, and markets
Malcolm McLean
Father of Containerization; 1956, first freighter carrying 58 containers
SC Generalist
Follows a more general path through the supply chain but does not leave it
SC Specialist
Follows a narrow path through the supply chain
SC Boundary Spanner
Follows a very broad path and may leave and re-enter the supply chain
Five Major External Forces Driving the Rate of Change
Globalization, Technology, Organizational consolidation and power shift, Empowered customers, Government
Rail
Good for raw materials, good for travel 200+ miles, large quantity, not safe
Density
Has an effect on transportation and warehousing (Physical cube)
Customs House Brokers
Help avoid problems in customs
Air
High cost, low quantity, fast, safe, good for high security and high value products
Technology
If you have bad processes before, you will continue to have bad processes even with technology
1400-1800
Initially driven by countries seeking materials and goods not available to them
Ocean
Low speed, low cost, good for international travel, not safe, high quantity
Micro Logistics
Manufacturing, Finance, Marketing, Accounting
Tactical
Mid-Level Management
Rainbow Pallets
Mixing different products on one pallet to save money and space
NAFTA
North American Free Trade Act
Bullwhip Effect
One small change at the retail end can cause a huge ripple down the supply chain
Supply Chain Jobs
Planning, Operations, Forecasting, Procurement, Fulfillment, Storage and Distribution, Customer Service
Contributing Factors for Global Flow and Trade
Population size, Urbanization, Land and Resources, Technology, Globalized Economy
Integrated Supply Chain
Product/Service flow, Information flow, Finance/cash flow
Who has the power in the supply chain?
Retailers (End customers have the most)
Logistics
Right product, right person, right quantity, right condition, right place, right time, right cost
Supply Chain Management
SCM is the art and science of integrating the flows of products/services, knowledge, and financials through the entire supply pipeline from the supplier's supplier to the customer's customer.
Globalization
Small businesses can compete on global scale, duplication of products happens much quicker, longer supply chains become more complex
Major Supply Chain Issues
Supply chain network, complexity, Inventory development, Information, Cost and Value, Organizational relationships, Performance Measurements, Technology, Transportation Management, Supply chain security, Talent Management
Economic Utility
Time, Form, Quantity, Place, Possession
Susceptibility to Damage
Transportation goes up with more likelihood to be damaged
Government
Transportation, trade, financial sector
TEU
Twenty foot Equivalent Unit
VISTA
Vietnam, Indonesia, South Africa, Turkey, Argentina