Inleiding tot de logistiek (3542)

Prof. dr. Kris Braekers

Introduction to SCM
(chapter 1)
Introduction

Logistics?

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Introduction

Supply chain?

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Supply chain (SC)
 “The network of all entities involved in producing and
delivering a finished product to the final customer”

Supplier Manufacturer Distributor Retailer Customers

Flow of products

Flow of information

Flow of funds

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Supply chain (SC)
 “The network of all entities involved in producing and
delivering a finished product to the final customer”

Inbound Focal firm Outbound

2nd tier 1st tier 1st tier 2nd tier 3rd tier

Supplier Supplier Manufacturer Distributor Retailer Customers

Downstream

Upstream

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Supply chain: What’s in a name?
 Supply (chain) network?

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Supply chain: What’s in a name?
 Supply (chain) network?

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Supply chain: What’s in a name?
 Supply (chain) network?

Supplier Manufacturer Distributor Retailer Customers

Supplier Manufacturer Distributor Retailer Customers

Supplier Manufacturer Distributor Retailer Customers

 Value chain/network?

 Demand chain?

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Supply chain: How should it look like?
 Each supply chain is different

 Structure depends on:

 (Corporate) strategy
 Type of goods
 Type of demand
 …

 Many design choices

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Supply chain: How should it look like?
 Inbound/supply side:
 Selection of suppliers: which/how many?

 Manufacturing:
 Where/how many locations?
 Outsourcing?

 Outbound/distribution side:
 Type of distribution channels?
 Intermediary parties?
 Number and location of distribution centers?
 How to handle reverse flows?
 …

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Supply chain: San Pellegrino example

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Supply chain: San Pellegrino example

Produce
PTA (BE)

Produce
PET (IT)

PET bottle
(BE)

Fill bottle
(IT)

Consumer
(BE)

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Supply chain: Nike example

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Supply chain: Nike example
 Production locations Some figures:
• 36 counties
• 453 factories
• >1.2 million workers

• Vietnam/Indonesia/China: >70%
• EMEA: <3%

Nikeinc.com

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Supply chain: Nike example
 Major distribution centers (selection)

Nikeinc.com

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Supply chain: Nike example
 Major distribution centers

Nikeinc.com

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Supply chain: Nike example
 Major distribution centers

Distribution channels:
• Distributors  small independent retailers
• Large retail chains (Footlocker, InterSport, …)
• Nike stores
Nikeinc.com
• Nikestore.com

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Supply chain: How should it look like?
 Omni-channel strategy

(source: www.onthemark.com)

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Supply chain: How should it look like?
 Omni-channel strategy

(source: www.controlpay.com)

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Supply chain management (SCM)
 “Design and management of flows of products, information
and funds throughout the supply chain”

 Activities / key aspects:

 Coordination of movement of goods
 Information sharing
 Collaboration

 Bullwhip effect

 Customer focus

 Service supply chains

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Supply chain management
 Customer focus
 Driving force
 Value chain/network (cfr. Porter), demand chain
 “Pulls” products through the SC

 Service supply chains

 Services vs. products

 SC is typically shorter
 Direct interaction with customer
 No buffer  find other ways of being flexible!

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What makes a supply chain competitive?
 Responsiveness / agility
 Move quickly to meet changing customer demands
 More important than long-term strategy?

 Reliability
 Uncertainty is unavoidable
 Many sources
 Safety stocks: reliability vs. costs
 Improved by improving visibility
 Coordination and real-time information sharing

 Relationship management

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The boundary spanning nature of SCM
 Coordination
 Intra-organizational
 Cross-enterprise coordination

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The boundary spanning nature of SCM
 Intra-organizational

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The boundary spanning nature of SCM
 Intra-organisational

Traditional “functional silo” approach

• A function focuses on own objectives

• What is best for my department?

Supply chain perspective

• What is best for the company (SC)?

• Share objectives & goals

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The boundary spanning nature of SCM
 Cross-enterprise
 A SC as an “extended” enterprise
 Ultimate goal: act as a single entity
 Difficult due to complex supply chains
 IT may help

Adversarial relationships

• Focus on maximizing own rewards and minimizing own risks

Relationship management

• Partnerships & alliances

• Share information and focus on total supply chain cost
• Joint strategic plans and long-term goals
• Single sourcing, “Early supplier involvement”
• Share risks & rewards

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Trends in SCM?
 Globalization
 New markets and sources of supply
 Distance vs. fast/efficient?

 Outsourcing
 Core competencies

 Technology
 IT as enabler of SCM
 ERP, GPS, RFID

 Postponement
 Local customization needs
 Standardization + customization  mass customization

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Trends in SCM?
 Lean SC
 Collaboratively work to reduce cost and waste

 SC disruptions

 SC security
 E.g., inspection at ports, theft

 Sustainability
 E.g., sources of supply, transportation, packaging

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SC disruptions
 Disruption:
 (Major) disturbance of the supply chain
 Can be at your supply or demand side
 Variety of reasons:
 Transportation delays, industrial plant breakdowns/fires, …
 Natural disasters: earthquakes, floods, pandemics, …
 Man-made reasons: terrorist attacks, trade wars, political instability, …

 Evolution in past decades:

 More complex and global supply chains
 Production in low wage countries
 Single sourcing strategies
 Most companies: focus on “lean” operations/SC

 Result: increasing SC risks

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SC disruptions
 Recent examples:
 COVID-19
 Ever Given
 Brexit
 Ukraine-Russia war

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SC disruptions
 Recent examples:
 COVID-19
 Ever Given
 Brexit
 Ukraine-Russia war

 Effects:
 Supply side:
 Sourcing issues
 Demand side:
 Unpredictable demand
 Changing consumer behavior
 Boom in e-commerce
 Sudden drop in demand for other products/services (e.g., due to lockdown)
 Overall:
 Changing market conditions

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SC disruptions
 Other examples of uncertainties/risks

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SC disruptions
 Solution: “resilience”
 Supply chain mapping
 Where are my suppliers?
 Where are my suppliers’ suppliers?
 Which of the components that I buy carry most risks?

 Supply chain collaboration

 Improving information sharing
 Is supported by IT opportunities

 New sourcing paradigms

 Local sourcing (also relevant from an ecological point of view)
 Dual or multi-sourcing (backup suppliers)

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SC disruptions

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Logistics
(chapter 7)
SCM vs. Logistics

Supply chain
management
?

Logistics

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Logistics
 Definitions:
 “Business function responsible for transporting and delivering products to
the right place at the right time throughout the supply chain.”

 “The process of planning, implementing, and controlling the efficient

(forward and reverse) flow and storage of raw materials, in-process
inventory, finished goods, services, and related information from point of
origin to point of consumption in order to meet customer’s requirements.”

 “To make sure that the right quantity is at the right place, on the right
time, with the right quality, and at the right cost.”

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Logistics

Inbound (upstream) Focal firm Outbound (downstream)

2nd tier 1st tier 1st tier 2nd tier 3rd tier

Supplier Supplier Manufacturer Distributor Retailer Customers

Inbound logistics Production logistics Distribution logistics

(physical supply) (material management) (physical distribution)

Logistics

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SCM vs. logistics
 Logistics supports SCM
Supply chain
 Responsible for one of the flows
management
 Provides place, quantity and time utility

Logistics

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Which activities belong to logistics?
 Transportation
 Storage
 Inventory management
 Material handling
 Packaging
 Order fulfillment

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Outsourcing (some of) these activities?
 You cannot be good at everything
 Focus on core competencies, outsource other activities
 Logistics: large asset requirements

 Logistic service providers

 2PL: transaction-based, transportation
 3PL: multiple activities (e.g. transportation & warehousing)
 4PL: designs, builds, organizes the whole logistic process
throughout the supply chain

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 Reverse logistics

Inbound (upstream) Focal firm Outbound (downstream)

2nd tier 1st tier 1st tier 2nd tier 3rd tier

Supplier Supplier Manufacturer Distributor Retailer Customers

Inbound logistics Production logistics Distribution logistics

(physical supply) (material management) (physical distribution)

s Logistics

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Reverse logistics
 Several reasons
 Defective product, (e-commerce) return, overstock, recalled, end-of-life,
deposit on packing material, …

 Tasks:
 Manage transport, storage, receiving, inspection, …
 Handle cash flows
 Abide “green” laws

 Items returned for different reasons may follow different paths

 Does not directly add value

 But: ability to easily return goods is an “order qualifier”

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Reverse logistics
 Does not directly add value
 But: ability to easily return goods is an “order qualifier”

https://vrtnws.be/p.b3NdW076A 48
Logistics: not a functional silo
 Impact on operations (production)
 “It is up to logistics to work with operations to arrange for the precise
timing of deliveries of the exact materials that are needed based on
production schedules”
 Demand patterns and production schedules may change!
 Inventory costs vs. risk of shortages

 Impact on marketing
 “A key element in sales is ensuring the product is available when needed”

 Impact on finance
 Return On Assets (ROA) = gross revenue / assets
 Inventory = current asset
 Capital investments in transportation/warehousing = non-current asset

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Course information
Course overview

Inventory Quality Warehouse

SC strategy + Production
Introduction managemen managemen managemen
Inv. Mgmt. strategy
t t t

HC 1 HC2 HC 3 HC 4 HC 5 HC 6

WZ 2: WZ 4:
WZ 1: WZ 3:
/ / case case
exercises exercises
study study

Ch.1+7 Ch.2+12 Ch.12 Ch.16 Ch.5+6 /

Responsiecollege

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Wat kan ik na deze cursus?
 De student:
 kan eenvoudige managementvragen met betrekking tot interne logistieke
beslissingen oplossen
 houdt bij het oplossen van interne logistieke managementvragen rekening
met het effect van deze beslissingen op de verschillende stakeholders
(klanten, leveranciers, werknemers, ...)
 kan aantonen hoe regelgeving en maatschappelijke veranderingen een
impact hebben op de logistieke beslissingen in een bedrijf
 kan de rol van logistiek in een organisatie en de samenhang ervan met de
andere bedrijfsfuncties toelichten

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Cursusmateriaal?
 Verplicht cursusmateriaal
 Custom handboek: “Introduction to logistics”
 7 hoofdstukken uit 3 handboeken
 Volledig te studeren, tenzij anders vermeld op Blackboard
 Powerpoint slides
 Case studies / oefeningen uit WZ
 Zelfstudie-oefeningen
 Essentieel onderdeel
 Vragen/moeilijkheden: contacteer assistent (discussieforum, mail, na de les)

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Cursusmateriaal?
 Verplicht cursusmateriaal
 Custom handboek: “Introduction to logistics”
 7 hoofdstukken uit 3 handboeken
 Volledig te studeren, tenzij anders vermeld op Blackboard
 Powerpoint slides
 Case studies / oefeningen uit WZ
 Zelfstudie-oefeningen
 Essentieel onderdeel
 Vragen/moeilijkheden: contacteer assistent (discussieforum, mail, na de les)

 Achtergrondmateriaal
 Artikels, filmpjes, papers: beschikbaar op Blackboard

 Studieleidraad
 O.a. informatie over voorbereiding en naverwerking

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Week Contactmoment Voorbereiding/Zelfstudie
1 HC 1: Introductie Voor: /
Na: H1, H7

2 HC 2: Supply chain strategie + Voor: lees de nieuwsartikels op Blackboard

introductie voorraadbeheer Na: H2, H12 (p.423-433)

3 HC 3: Voorraadbeheer Voor: lees de case van Zara (p.66-67, H2)

Na: H12 (p. 433-463)

4 WZ 1: Voorraadbeheer Voor:
1) bestudeer de “Solved problems” (p.466, H12), met uitzondering van Problem 4
2) maak oef 19 en 24(a/b/c) van H12
Na: maak de zelfstudie-oefeningen op Blackboard

5 HC 4: Productiebeheer Voor: /
Na: H16

6 WZ 2: Productiebeheer Voor:
1) Lees case study “Kristen’s Cookie Company” (zie Blackboard)
2) Probeer Key Question 1,2 en 3 te beantwoorden
Na: maak de zelfstudie-oefeningen op Blackboard

7 /  
8 HC 5: Kwaliteitsmanagement Voor: Lees H5
Na: H5, H6

9 WZ 3: Kwaliteitsmanagement Voor:
1) bestudeer de “Solved problems” (p.221, H6)
2) maak oef 6(a+b) (p.227, H6)
Na: maak de zelfstudie-oefeningen op Blackboard

10 HC 6: Magazijnbeheer /
11 WZ 4: Magazijnbeheer /
12 RC: responsiecollege 55
Voor: vragen insturen voor 6/12 via mail (kris.braekers@uhasselt.be)
Week Contactmoment Voorbereiding/Zelfstudie
1 HC 1: Introductie Voor: /
Na: H1, H7

2 HC 2: Supply chain strategie + Voor: lees de nieuwsartikels op Blackboard

introductie voorraadbeheer Na: H2, H12 (p.423-433)

3 HC 3: Voorraadbeheer Voor: lees de case van Zara (p.66-67, H2)

Na: H12 (p. 433-463)

4 WZ 1: Voorraadbeheer Voor:
1) bestudeer de “Solved problems” (p.466, H12), met uitzondering van Problem 4
2) maak oef 19 en 24(a/b/c) van H12
Na: maak de zelfstudie-oefeningen op Blackboard

5 HC 4: Productiebeheer Voor: /
Na: H16

6 WZ 2: Productiebeheer Voor:
1) Lees case study “Kristen’s Cookie Company” (zie Blackboard)
2) Probeer Key Question 1,2 en 3 te beantwoorden
Na: maak de zelfstudie-oefeningen op Blackboard

7 /  
8 HC 5: Kwaliteitsmanagement Voor: Lees H5
Na: H5, H6

9 WZ 3: Kwaliteitsmanagement Voor:
1) bestudeer de “Solved problems” (p.221, H6)
2) maak oef 6(a+b) (p.227, H6)
Na: maak de zelfstudie-oefeningen op Blackboard

10 HC 6: Magazijnbeheer /
11 WZ 4: Magazijnbeheer /
12 RC: responsiecollege 56
Voor: vragen insturen voor 6/12 via mail (kris.braekers@uhasselt.be)
Examen?
 Gesloten boek examen
 Gebruik niet-grafisch rekenmachine is toegestaan
 Formularium is beschikbaar op het examen (staat op BB)

 Verschillende aspecten:
 Theorie
 Kennis (wat is, leg uit, …)
 Inzicht (verbanden leggen, voorbeeld geven, …)
 Oefeningen
 Eventueel beperkte case study

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Enkele vragen…
 Letterlijk:
 Leg uit: omni-channel strategie, relationship management, reverse
logistics, …
 Welke zijn de drie grote stromen in een supply chain?
 Waarom wordt een supply chain soms ook een supply network genoemd?
 Bespreek kort drie trends in SCM.
 Waarom besteden productie-ondernemingen hun logistieke activiteiten
vaak uit aan logistieke dienstverleners?

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Enkele vragen…
 Inzicht:
 Bespreek volgende stellingen (ben je het hiermee eens, waarom wel/niet):
 “Logistiek is een onderdeel van supply chain management”
 “De structuur van een supply chain wordt mede bepaald door de strategie van
een bedrijf”
 Waarom besteden bedrijven steeds vaker aandacht aan reverse logistics?
 Leg uit waarom globalisatie zowel leidt tot nieuwe mogelijkheden als
nieuwe problemen op vlak van SCM en logistiek.
 Leg uit waarom “responsiveness” in SCM soms belangrijker wordt geacht
dan het hebben van een lange-termijn strategie.
 Geef een voorbeeld van hoe het strikt denken in functionele gebieden in
een onderneming (“functional silo approach”) kan leiden tot niet-optimale
beslissingen.

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