Do Thi Thu Ha, MSc.

07/11/2022

Learning outcomes

 Understand the concept of

Logistics and Supply chain

 Determine the significance of

Overview of Logistics and Logistics and Supply chain in

Supply Chain Management business activities

MSc. Do Thi Thu Ha  Be able to recognize logistics in

every daily activity

Do Thi Thu Ha, MSc.

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Contents
Supply Chain Management:
•Definition
•Flows in supply chain
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Logistics Management:
•Definition
•3 Types of Logistics
•Systems approaches
•Logistics goals
Do Thi Thu Ha, MSc.

Do Thi Thu Ha, MSc.

•3PLs and 4PLs

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The basic stages of a supply chain
Case study 1: A bottle of water
1. What materials that a bottle of
Supplier Manufacturer Warehouse Retailers
water need to be Distributor
Consumer

manufactured/made? Buy Make Move Sell Serve

things things things things things
2. How many stages to produce a Procurement Production Transportation
bottle of water? What are those? or Purchasing Inventory belong to
Warehousing Marketing
3. How can a bottle of water be Distribution
belong to management
Do Thi Thu Ha, MSc.

Do Thi Thu Ha, MSc.

delivered to customers? Operations
management

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Flows in a supply chain
Definitions – Supply Chain Management
Information flow
Management of material and information flow in a supply chain to
provide the highest degree of customer satisfaction at the lowest
possible cost. Supply chain management requires the commitment Reverse product flow
1. Product flow
of supply chain partners to work closely to coordinate order
generation, order taking, and order fulfillment. 2. Reverse
- Business Dictionary - product flow
Supply chain management is a set of approaches utilized to 3. Cash flow Supplier Manufacturer Warehouse Retailers Consumer
efficiently integrate suppliers, manufacturers, warehouses, and stores, Distributor
so that merchandise is produced and distributed at the right 4. Information Primary Secondary Secondary Secondary
quantities, to the right locations, and at the right time, in order to product product product product
flow flow flow flow flow
minimize system wide costs while satisfying service level
Do Thi Thu Ha, MSc.

Do Thi Thu Ha, MSc.

requirements.
Primary cash flow
- Simchi-Levi et al. (2003, p. 1) -

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Economic impacts of logistics
Definitions  A poor transportation infrastructure 2 key drawbacks that have
 High levels of inventory limited the expansion of
Forward flow
Vietnam’s economy

Economic utility
A product’s being in a form that can be used by the
Form utility customer and is of value to the customer
Raw material Supplier Manufacturer Warehouse Distributors Retailers End users
Having products available where they are needed by
Reverse flow Place utility customers; products are moved from points of lesser value
to points of greater value

Having products available when they are needed by

Plans Time utility customers
Logistics
Implements Management

Do Thi Thu Ha, MSc.

Do Thi Thu Ha, MSc.

Possession The value or usefulness that comes from a customer being

Controls utility able to take possession of a product

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7Rs in Logistics 12

Reverse Logistics

Right product Right quantity

Right
condition/quality Return Reuse Recycle Disposal

Effectiveness +
Responsiveness
Right place
Right cost/price
Do Thi Thu Ha, MSc.

Do Thi Thu Ha, MSc.

Suppliers Customers

11 Right time Right people

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Mass logistics and Tailored logistics 14
Humanitarian logistics
When companies use one logistics
approach to target ALL their customers. Mass logistics  Logistics for non-profit situations
When companies use various logistics approaches
to target various groups of their customers. Tailored logistics

Urban area/
City centre

Suburban area/
Rural area

Transportation
Do Thi Thu Ha, MSc.

Do Thi Thu Ha, MSc.

activities Residential area

Mass Tailored

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Reasons lead to the development of Logistics
1. Economic deregulation
2. Changes in consumer behavior
“ The tactics…no, amateurs
• Customized customer discuss tactics,…. Professional
• Changing family roles
soldiers study logistics.
• Rising customer expectations
3. Technological advances 16
Tom Clancy
”
• Disintermediation
• Reduction of paper works
• Shipment tracking Thank you for your effort.
4. The growing power of retailers
Do Thi Thu Ha, MSc.

Do Thi Thu Ha, MSc.

5. Globalization of trade
 1 Logistics system does not fit all companies

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