ISTRIB\TION SYSTMS

AN IOGISTCS
S V I PRASA
IIPM
Marketing ChanneI
A marketing channel consists oI
individuals and Iirms involved in the
process oI making a product or service
available Ior use or consumption by
consumers or industrial users.
A marketing channel consists oI
individuals and Iirms involved in the
process oI making a product or service
available Ior use or consumption by
consumers or industrial users.
:aI istrib:tion
:al distrib:tion is an arrangement
whereby a Iirm reaches diIIerent buyers
by employing two or more diIIerent types
oI channels Ior the same basic product.
:al distrib:tion is an arrangement
whereby a Iirm reaches diIIerent buyers
by employing two or more diIIerent types
oI channels Ior the same basic product.
Logistics
ogistics consists oI those activities that
Iocus on getting the right amount oI the
right products to the right place at the
right time at the lowest possible cost.
ogistics consists oI those activities that
Iocus on getting the right amount oI the
right products to the right place at the
right time at the lowest possible cost.
S:55Iy Chain
A s:55ly chain is a sequence oI Iirms
that perIorm activities required to create
and deliver a good or service to
consumers or industrial users.
A s:55ly chain is a sequence oI Iirms
that perIorm activities required to create
and deliver a good or service to
consumers or industrial users.
TotaI Logistics Cost
%otal logistics cost consists oI expenses
associated with transportation, materials
handling and warehousing, inventory,
stockouts (being out oI inventory), order
processing, and return goods handling.
%otal logistics cost consists oI expenses
associated with transportation, materials
handling and warehousing, inventory,
stockouts (being out oI inventory), order
processing, and return goods handling.
C:stomer Service
:stomer service is the ability oI
logistics management to satisIy users in
terms oI time, dependability,
communication, and convenience.
:stomer service is the ability oI
logistics management to satisIy users in
terms oI time, dependability,
communication, and convenience.
Vendor-Managed Inventory
'endor-managed inventory (VMI)
is an inventory management system
whereby the supplier determines the
product amount and assortment a
customer (such as a retailer) needs and
automatically delivers the appropriate
items.
'endor-managed inventory (VMI)
is an inventory management system
whereby the supplier determines the
product amount and assortment a
customer (such as a retailer) needs and
automatically delivers the appropriate
items.
LOGISTICS AN
SUPPLY CHAIN MANAGEMENT
low of the Prod:ct
W ogistics
W ogistics Management
ost-Effective
:stomer Service
LOGISTICS AN
SUPPLY CHAIN MANAGEMENT
W S:55ly hains vers:s Marketing
hannels
S:55ly hain
S:55ly hain Management
#eIating Iogistics management and s:55Iy
chain management to s:55Iier networks and
marketing channeIs
LOGISTICS AN
SUPPLY CHAIN MANAGEMENT
W So:rcing, Assembling, and elivering a
New ar: %he A:tomotive S:55ly hain
The a:tomotive s:55Iy chain
Paint ind:stry s:55Iy chain
LOGISTICS AN
SUPPLY CHAIN MANAGEMENT
Aligning a S:55ly hain w/ Marketing Strategy
W S:55ly hain Management and
Marketing Strategy
W Understand the :stomer
W Understand the S:55ly hain
W Harmonize the S:55ly hain with the
Marketing Strategy
LOGISTICS AN
SUPPLY CHAIN MANAGEMENT
ross-ocking
W ell: A Res5onsive S:55ly hain
W Wal-Mart: An Efficient S:55ly hain
Concept Check
. What is the principal diIIerence
between a marketing channel and a
supply chain?
A: A supply chain also includes suppliers
who provide raw materials to a
manuIacturer as well as the wholesalers
and retailersthe marketing channel
who deliver the Iinished goods to ultimate
consumers.
Concept Check
. The choice oI a supply chain
involves what three steps?
A: () Understand the customer.
() Understand the supply chain.
(3) Harmonize the supply chain with
the marketing strategy.
TWO CONCEPTS OF LOGISTICS
MANAGEMENT IN A SUPPLY CHAIN
%ime
W :stomer Service once5t
W Order ycle or Re5lenishment %ime
W Q:ick Res5onse or Efficient ons:mer Res5onse
W %otal ogistics ost once5t
S:55Iy chain managers baIance totaI
Iogistics cost factors against c:stomer
service factors
TWO CONCEPTS OF LOGISTICS
MANAGEMENT IN A SUPPLY CHAIN
e5endability
W :stomer Service once5t
W 'endor-Managed Inventory ('MI)
omm:nication
onvenience
. What is the logistics management
objective in a supply chain?
A: To minimize total logistics costs
while delivering the appropriate level
oI customer service.
Concept Check
. A manager`s key task is to balance which
Iour customer service Iactors against
which Iive logistics cost Iactors?
A: Customer service Iactors: time,
dependability, communication, and
convenience. Logistics cost Iactors:
transportation, materials handling and
warehousing, order processing, stockouts,
and inventory.
Concept Check
IHYSICA! IST!II!TIO, S!II!Y
CHAIS, A !OCISTICS MAACIMIT
Ordor IrocossIng
O IncIudos ordor onfry In whIch fho ordor Is
ncfunIIy onforod Info n comnny`s InformnfIon
sysfom; ordor hnndIIng, whIch InvoIvos IocnfIng,
nssombIIng, nnd movIng roducfs Info
dIsfrIbufIon; nnd ordor doIIvory
nrohousIng
O nrohousos nro usod fo sforo goods unfII fhoy
nro soId
O IstvIbutIon centevs nro dosIgnod fo offIcIonfIy
rocoIvo goods from suIIors nnd fhon fIII ordors
for IndIvIdunI sforos or cusfomors
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IHYSICA! IST!II!TIO, S!II!Y
CHAIS, A !OCISTICS MAACIMIT
Invonfory Mnnngomonf
O Insuros fhnf n comnny noIfhor runs ouf of
mnnufncfurIng comononfs or fInIshod goods
nor Incurs fho oxonso nnd rIsk of cnrryIng
oxcossIvo sfocks of fhoso Ifoms.
TrnnsorfnfIon
O fho mofhod or modo n comnny shouId ufIIIzo
whon movIng roducfs fhrough domosfIc nnd
gIobnI chnnnoIs; fho mosf common modos of
frnnsorfnfIon nro rnII, fruck, nIr, nnd wnfor
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%RANSPOR%A%ION:
A KEY OGIS%IS UN%ION
IN A SUPPY HAIN
FedEx and Maersk
What trans5ortation modes does each 5erform?
Advantages and disadvantages of five
modes of trans5ortation
T!ASIO!TATIO
ChnnnoI Sfrnfogy nnnIyzIng onch shIIng
modo fo doformIno whIch modo, or
combInnfIon of modos, wIII bo bofh offocfIvo
nnd offIcIonf In n gIvon sIfunfIon
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THI I....
THAK YO! IO!KS