What is Logistics Management?

Total Cost Concept

-View the sum of logistics operations as a system & seek to minimize the total cost of the system rather than the individual functions -It's like a stereo system: -Tuner vs. Media Player vs. Speakers

Customer; process; time; repeat

4 Steps of Lean -Look through the Eyes of the _______________ -Eliminate ________ waste -Eliminate wasted ________ & space -______ continuously revisit these steps

Cost; interlinked

All ______ & service elements are interlinked

Sourcing; coordination; suppliers; integrates

CSCMP definition of Supply Chain Management Supply Chain management encompasses the planning & management of all activities involved in _______________ & procurement, conversion & all logistics management activities. Importantly, it also includes __________________ & collaboration w/ channel partners, which can be ________________, intermediaries, 3rd party service providers & customers. In essence, Supply Chain Management _____________ supply & demand management w/in & across companies

Customer; support; handling; number; communications; set-up; procurement; capital; space; risk

Cost of service level: -____________ service cost -Cost of parts & service __________ -Cost of returns __________ Transportation costs: -Inbound & outbound transportation Warehousing costs: -Cost as a result of the _____________ & location of warehouses Order processing & info costs: -Order processing costs -Costs of logistics _____________________ -Info systems cost Lot quantity costs: -Production _____-_____ cost -Cost of lost capacity -Material handling -_________________ cost Inventory carrying cost: -_____________/opportunity cost -Inventory service cost -Storage _______ cost -Inventory ______ cost

Process Mapping

Creating an accurate depiction of a process & performance

Competitive; channel; IT; delivery

Executive are giving logistics more focus b/c of... -Increasing ___________________ pressures -Shift in ________________ power -Globalization -Development of ______ systems & the increasing importance of info -Increased product proliferation -Increased number of _______________ points

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Final thoughts on supply chain management... -Supply Chain management continues to seek standardized definition -Logistics is part of supply chain management -Functional areas can be integrated through a process approach --w/in the firm & across the supply chain -While supply chain management is the current trend -- functional logistics knowledge never goes out of style

Waste; value; knowledge

Fundamental concept from "lean" -Eliminate _______ -i.e. EVERYTHING that does not add ______ to meet customers' needs as efficiently & effectively as possible -Utilize workers' _____________________ -Lean is generally sustainable

Kaizen Events

Gatherings of people who are involved in the day-to-day management of the process

Longer; world; lean; reduced

Globalization -Supply chains becoming increasingly __________ due to sourcing materials from throughout the __________ -With the move towards _______ operations, inventory levels have been consistently _____________

Place/customer; competency; cost; substitute

Increasing Competitive Pressure -__________/_____________ service is the hardest component for competitors replicate of the marketing mix components -Logistics _________________ is one way that a company can outcompete others in its industry by providing outstanding customer service -Logistics competency provides one way for smaller firms to differentiate themselves from larger competitors w/ an absolute __________ advantage stemming from scales economies -Superior service creates a "ock-in" whereby it is harder for the buyer to find a _________________ for the supplier

Expand; smaller

Increasing Number of Delivery Points -Retail outlets are beginning to __________ their product offerings -Now the manufacturer must be able to handle _____________ orders

Visibility; operational; useful; trust

Increasing Role of IT & Information -Info & ___________ w/in & across organizations improves cost performance & _________________ efficiency -One challenge is that companies are now drowning in data, but the challenge is to turn this data into __________ info -A 2nd challenge is that sharing info b/t firms in the SC requires ________ that the partner will not act opportunistically w/ such info

Organization; Kaizen; 8

Lean 5s Methodology -A lean tool to improve the _________________ of processes -Can guide _________________ event -Help identify _____ wastes -Reduce wasted time -Apply these ideas to the place & the process that you use to do your homework

Supply Chain

Logistics management is part of the __________ __________

Plans; efficient; goods; origin; consumption; customer's

Logistics management is that part of the supply chain management that _______, implements & controls the ___________, effective forward & reverse flow & storage of ______, services & related info b/t the point of ________ & the point of ________________ in order to meet ______________ requirements

Categories; niche; keeping; unit

Product Proliferation -Companies have greatly increased the number of product offerings w/in ______________ to try & secure _______ customers -SKU (stock _____________ _______) proliferation greatly increases the challenges of inventory management -Oftentimes, logistics professionals are not consulted about the impact of increasing the number of SKUs

Category; retailers

Shift in Channel Power The development of "_______________ killer" stores has resulted in a shift of channel power from manufacturers to _______________

Increases; transportation; lost; faster; inversely; decrease

Simple Rules about Trade-offs -Increasing the number of warehouses _________________ inventory cost, but decreases __________________ costs & often decreases the cost of ______ sales -Using _________ modes of transportation decreases the cost of lost sales -Lot quantity costs & inventory carrying costs are _________ related -Investments in info tech should _____________ the cost of lost sales

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Summary of Lean Ideas: -1st, understand what your customer wants (effectiveness) -Then, determine how to achieve that w/ the least waste/cost possible -Apply lean 5-s methodology & look for ways to reduce the 8 wastes -Continually improve -Is it possible to be too lean? -Hold Kaizen events to utilize the knowledge of those who understand the best procedures

Logistics

Supply chain is bigger than ____________

Tradeoffs; cost; customer; part

Takeaways: -Logistics management is about understanding the _________ -The goal of logistics is to minimize the system of logistics _______ components while providing a specified level of ________________ service that meets the company's broader strategic objectives -Logistics is becoming increasingly important in today's competitive environment -Logistics is ______ of the supply chain

Creation; satisfaction

The Marketing/Logistics Relationship Marketing side: demands realization and/or ________________ Logistics side: demands _____________________

Sort: eliminate unneeded items from the area, store things not needed now --organize Simplify: have a logical place that everything fits --a place for everything & everything in its place Sweep: clean & organize each day as you use things --put them away Standardize: have standardized processes & procedures to maintain workplace order, ease training of new people Sustain: continuously follow this approach & implement throughout your company

What are the 5s of Lean methodology?

-Right product -Right customer -Right time -Right condition -Right quantity -Right place -Right cost

What are the 7 Rights of Logistics?

d. Costs

What is not one of the 8 Wastes? a. Defects b. Overproduction c. Waiting d. Costs e. Not utilizing staff talent f. Transportation g. Inventory h. Motion i. Excess processing