Logistics & Supply Chain Management Course

Syllabus
MSc in Business Administration (IBS, ISCTE-IUL)
1. Concept and Fundamentals1
2. Independent Materials Management1
3. Supply Chain Strategy & Design1
4. Process Approach to the Supply Chain Management1
5. Internet-based Systems1
6. Managing Risk in SCM

Written permission for using these five chapters for academic teaching might be granted from its designer, Prof. João Vilas-Boas, jmvbs@iscte-iul.pt, work.jvb@gmail.com (in cc).
Internet-based Systems
 Internet-based Systems

• Current Context
• E-business Definition
• E-business Developments
• Industry 4.0
 Internet-based Systems
Current Context
Supply chain re-definition...
Customer

Distributor OEM

INTERNET EDI
Contract
E-Mail Manufacturer
Subcontractor

MS
MS
Excel
Excel
Parts Provider

Raw Material
 Internet-based Systems
Current Context
How Internet Enabled Supply Chain is Different...

Characteristic Internet Based Pre-Internet

Decision Focus Business Process Activity
Scope Ecosystem Functional Silo
Decision Timing Full Decision Funnel Executional
Sequence Concurrent Sequential
Response Postponement Forward Deploy
Demand Fulfillment Capable to Promise Fill from Inventory
Application Focus Integrated Point Solutions
Information Decision Making Communication
VALUE FOCUS ECOSYSTEM ENTERPRISE
Internet-based Systems
Current Context
The Evolution of Business...
 Internet-based Systems
Current Context Moore’s Law: Cheap Processing
Index 120

100

80

60
Workers per bushel of manufactured cotton
England 1770-83

Price of the Model T touring car

1908-20
cost
Metcalf’s Law: The Value of Networks
Value, 100

80

60

40

20
Cost increases linearly
with connections
Value increases as the
square of connections
Value
exceeds
cost

Cost
exceeds
value
40 0
0 1 2 3 4 5 6 7 8 9 10 n
Price of CPU
20 computing power Value Connections

$/MIPS 1982-95 0 2v 6v 12v 20v 30v 42v 56v 72v 90v n(n-1)v

Vertically integrated Inter-Enterprise Collaborative 0

1770
1910
1775
1915
1780
1920
Cost

F+0 F+ 2c F+ 3c F+ 4c F+ 5c F+ 6c F+ 7c F+ 8c F+ 9c F+ 10c F+ nc

1985 1990 1995

company Co-operation Business
Gilder’s Law: Cheap Bandwidth Coase’s Law: Enabling Virtual Companies
Single Company Multiple Strategies Multiple Companies Fiber 10 5
Transaction

Internal Integration Multiple Companies Openness capacity cost

Proprietary systems Little Integration Integrated business

processes
4
1032 10
10 0
Time Time

Cost reduction Improved

and efficiency through effectiveness through Value creation
cooperation & ◆ Focus on Core Competencies
integration of business through Networks
processes communication along
the supply chain ◆ The final consumer is the only
demand that counts
The Internet Revolution
◆ All products & services are
configurable

Companies will be measured on

Total Company Value
Internet-based Systems
Current Context
SCM as of Today Leads to Sustainable Value Creation...
Internet-based Systems
Current Context
Internet-based Systems
Current Context
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
 Internet-based Systems
E-business Definition
 Internet-based Systems
E-business Definition
 Internet-based Systems
E-business Definition
 Internet-based Systems
E-business Definition
E-commerce extended model classified by provider & consumer...
 Internet-based Systems
E-business Definition
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
 Internet-based Systems
E-business Developments
 Internet-based Systems
E-business Developments
RFID frequencies....
 Internet-based Systems
E-business Developments

RFID Applications....
 Internet-based Systems
E-business Developments
Bridging Wireless Technologies & Business
Applications
 Internet-based Systems
E-business Developments
Adaptive Supply Chain Network
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
Internet-based Systems
Industry 4.0
Internet-based Systems
Industry 4.0
Internet-based Systems
Industry 4.0
Internet-based Systems
Industry 4.0
Internet-based Systems
Industry 4.0
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
Internet-based Systems
Bibliography
 Logistics & Supply Chain Management Course
Syllabus
MSc in Business Administration (IBS, ISCTE-IUL)
1. Concept and Fundamentals1
2. Independent Materials Management1
3. Supply Chain Strategy & Design1
4. Process Approach to the Supply Chain Management1
5. Internet-based Systems1
6. Managing Risk in SCM2,3
1) Written permission for using chapters 1.,2.,3.,4 and 5. for academic teaching might be granted from its designer, Prof. João Vilas-Boas, jmvbs@iscte-iul.pt, work.jvb@gmail.com
2) Written permission for using chapter 6. for academic teaching might be granted from their designers, Profs. Teresa Grilo & Sophia Kalakou, teresa.sofia.grilo@iscte-iul.pt,
sofia.kalakou@iscte-iul.pt
3) Acknowledgments are due to Profs. Teresa Grilo & Sophia Kalakou for granting permission to use Chapter 6 slides in the LSCM2023/MBA/IBS/ISCTE-IUL course. Thanks a lot, JVB.
Managing Risk in SCM
 Managing Risk in SCM

• Risk Management
• Risk Management Process
• Risk Identification
• Risk Assessment
• Risk Impact Assessment
• Risk Mitigation Strategies
• Analysis Example of Risk Assessment
Managing Risk in SCM
Learning Goals
 Managing Risk in SCM

Why? Risk Management

 Managing Risk in SCM
Why? Risk Management
 Managing Risk in SCM
Why? Risk Management
 Managing Risk in SCM
Risk Management Process
 Managing Risk in SCM
Global
SC
Risk Identification
 Managing Risk in SCM
Risk Identification
 Managing Risk in SCM
Risk Identification
Managing Risk in SCM
Risk Assessment
 Managing Risk in SCM
Risk Impact Assessment
 Managing Risk in SCM
Responding
to Risk
(Simchi-Levy)
Risk Mitigation Strategies
 Managing Risk in SCM
Responding
to Risk
(Simchi-Levy)
Risk Mitigation Strategies
 Managing Risk in SCM
Responding
to Risk
(Simchi-Levy)
Risk Mitigation Strategies
 Managing Risk in SCM
Responding
to Risk
(Simchi-Levy)
Risk Mitigation Strategies
 Managing Risk in SCM
Responding
to Risk
(Simchi-Levy)
Risk Mitigation Strategies
 Managing Risk in SCM
Responding
to Risk
(Simchi-Levy)
Risk Mitigation Strategies
 Managing Risk in SCM
Responding
to Risk
(Simchi-Levy)
Risk Mitigation Strategies
 Managing Risk in SCM
Responding
to Risk
(Chopra)
Risk Mitigation Strategies

Source: Chopra, S., & Sodhi, M. S. (2004). Managing risk to avoid supply-chain breakdown. MIT Sloan management review, 46(1), p.53
 Managing Risk in SCM
Responding
to Risk
(E&Y)
Risk Mitigation Strategies
 Managing Risk in SCM
Analysis Example of Risk Assessment
 Managing Risk in SCM
Analysis Example of Risk Assessment
 Managing Risk in SCM
Analysis Example of Risk Assessment
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
___________________________________________________________________________________________
Managing Risk in SCM
Bibliography