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Lesson 1 logistics and supply chain

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Lesson 1 logistics and supply chain

  1. 1. © Alan Harrison and Remko van Hoek 2008 Slide 1.1 What shall we do in Supply Chain? • 7 lessons • Almost read a book • Have fun • Prepare for the exam
  2. 2. © Alan Harrison and Remko van Hoek 2008 Slide 1.2 Logistics and Supply Chain What is it – can it be fun?
  3. 3. © Alan Harrison and Remko van Hoek 2008 Slide 1.3 Supply Chain A Supply Chain is a network of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers and who manage returns at each stage
  4. 4. © Alan Harrison and Remko van Hoek 2008 Slide 1.4 Supply Chain Management Planning and controlling all of the business processes – from end-customer to raw material suppliers – that link together partners in a supply chain in order to serve the needs of the end-customer
  5. 5. © Alan Harrison and Remko van Hoek 2008 Slide 1.5 Logistic The task of coordinating material flow and information flow across the supply chain
  6. 6. © Alan Harrison and Remko van Hoek 2008 Slide 1.6 Figure 1.1 From cow to customer
  7. 7. © Alan Harrison and Remko van Hoek 2008 Slide 1.7 Figure 1.2 Supply network Source: After Slack et al., 1997
  8. 8. © Alan Harrison and Remko van Hoek 2008 Slide 1.8 Figure 1.4 The network in context
  9. 9. © Alan Harrison and Remko van Hoek 2008 Slide 1.9 Competing through logistic Hard objectives • The quality advantage • The time advantage • The cost advantage Supportive capabilities • Controlling variability (agility) Soft objectives • Confidence • Security
  10. 10. © Alan Harrison and Remko van Hoek 2008 Slide 1.10 Logistics strategy Logistic strategy is the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies and which are reinforced through conscious and subconscious behavior within and between partners across a network
  11. 11. © Alan Harrison and Remko van Hoek 2008 Slide 1.11 Logistics strategy Usually demands systemic strategy setting between network partners Porter describes five principles: • a unique value proposition • a tailored supply chain • identify the trade-offs • align logistics processes • continuity – improvements consistently
  12. 12. © Alan Harrison and Remko van Hoek 2008 Slide 1.12 Table 1.1 Different product ranges have different logistics performance objectives

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