4.4k likes | 4.41k Views
This class requires students to be punctual, refrain from using phones, drinks, and food during lectures, and seek permission before leaving. Evaluation is based on exams, class performance, attendance, and papers. The class will include reading assignments, discussions, questions and answers, practical knowledge, case studies, and active participation.
E N D
To: Students 1. Must be punctual (15 minutes rule) 2. No telephone, drink & food during lecture 3. Do not leave class without permission! Please go to toilet before the class starts. No rule without exception!
Evaluations Examination 60% Class performance 20% Class attendance 10% Papers 10%
How to proceed this class ? • Reading assignment (text book) • More discussion • Questions and answers • Practical knowledge • Case studies • Attendance and participation to the class – get high point
Topics 1 : BOP Business World Population is around 7billion. There are 4 billion people is onBOP which is less than US$3000 a year.
Base of Pyramid Business Current situation of BOP population world population 7 billion Annual income per capita 4 billion <$3000
Background 1 1) Saturated market of developed countries 2) Size of population and population growth rate 3) Economic growth rate 4) Rate of younger generation 5) Aggressive acceptance of developed technologies etc.
EXAMPLE 1) 1.6 billion 3rd world residents need glasses, but less than 5% have. 2) Governments are preoccupied with life threatening maladies and urban optical shops are inclined to sell high-end glasses. The failure of both Government & Market
SCOJO New York • +3.00 Reading Glasses
SCOJO SCOJO is a famous reading glasses company in USA which is selling very fashionable & high-end reading glasses US$ 42~US$112. They started BOP business. Cost (producing & delivery) =$1 Wholesale price =$2 Retail price = $3
Back Ground 2 1) In BOP, there are many types of job, which can not be sufficiently carried out if your sight is not enough. 2) 1.6billion would need reading glasses. Especially, 95% of 35~80 years old population needs reading glasses.
Scheme Business SCOJO (franchising) Training of local entrepreneurs in BOP market Local Entrepreneurs BOP
Prologue Now we are in a global society – one world. Economically and culturally, a world become more smaller than ever by media, IT (information technology) and transportation. WTO, ACEAN and FTA will integrate each market into one world market – no border.
Recent happenings 1. The growing power of retailers 2. Technological advance 3. Globalization of trade = International Trade
WTO News Release Following the record-breaking 14.5% surge in the volume of exports in 2010 world trade growth should settle to a more modest 6.5% expansion in 2011. this would be higher than the 6.0% average yearly increase between 1990 and 2008. Global supply chains cause goods to cross national boundaries several times during the production process, which raises measured world trade flows compared to earlier decades.
Competition is not just in domestic market but also, in international market. The Logistics & SCM is a key for the success in international trade.
This is the reason why we must study “Logistics” & “Supply Chain Management”
Topics 2 World Logistics World Bank reported that world rank of “logistics” which is called “Logistics Performance Index” = LPI
Germany, Singapore and Sweden are the best 3. Japan is 7th , USA 15th , China 27th and Thai 35th among 155 countries. WB said the credibility of logistics would be more important than price and cost in international trade.
International LPI Ranking 1 Germany 4.11 2 Singapore 4.09 3 Sweden 4.08 4 Netherlands 4.07 5 Luxembourg 3.98 6 Switzerland 3.97 7 Japan 3.97 8 U K 3.95 9 Belgium 3.94 10 Norway 3.93
11 Ireland 3.89 12 Finland 3.89 13 Hong Kong 3.88 14 Canada 3.87 15 USA 3.86 16 Denmark 3.85 17 France 3.84 18 Australia 3.84 19 Austria 3.76 20 Taiwan 3.71
21 New Zealand 3.65 22 Italy 3.64 23 Korea, Rep. 3.64 24 U A E 3.63 25 Spain 3.63 26 Czech Republic 3.51 27 China 3.49 28 South Africa 3.46 29 Malaysia 30 Poland 3.44
31 Israel 3.41 32 Bahrain 3.37 33 Lebanon 3.34 34 Portugal 3.34 35 Thailand 3.29
Thai LPI 35 Thailand 3.29 Customs 3.02 Infrastructure 3.16 International shipments 3.27 Logistics competence 3.16 Tracking & tracing 3.41 Timeliness 3.73
050456 International Logistics (& Supply Chain) Management Yoshio Maki, Visiting Professor May 2012------September 2012 AT KKU
Part1. Concept of Logistics (& Supply Chain) 1) Logistics 2) Supply Chain Management This is very difficult to teach just Logistics.
1) What is Logistics? ① Origin The word “Logistics” comes from the Greek logistiki , meaning accounting and financial organization. Logistics is considered to have originated in the military‘s need to supply themselves with arms, ammunition(powder, shot, shrapnel, bullets, cartridges and primers etc.) and rations (foods) as they moved from their base to a forward position. From Wikipedia
② Definitionby Council of Logistics Management Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and relate information between the point of origin and the point of consumption in order to meet thecustomers’ requirements.
What is customer’s requirements?needs & wants Seller’s market Buyer’s market After world war II, seller’s market was created because of mass-production. Products had to be marketed not just produced and sold.
Mass Production The first “modern” mass-production system was Ford Type T assembly line (conveyer belt) at Highland Park Factory of Ford in 1914. Many factories followed this system and especially, during WWII, mass-production system was developed for the armament industry in USA.
Needs are things people must have to live—food, clothing, and shelter. Wants are things people would like to have but do not need in order to live. Effective “marketing” converts needs to wants. www.mcwdn.org/ECONOMICS/NeedWant.html
2) Supply Chain① Definition A supply chain is all activities associated with the flow and transformation of goods from the raw material through to end user as well as the associated information flow. Coordinating not only within organizations but across organizations as well.
Change to new ideas • NCPDM(The National Council of Physical DistributionManagement)was established in 1963. • (NCPDMchanged its name to CLM (Council of Logistics Management)in 1985. • CLM changed its name to CSCMP(The Council of Supply Chain Management Professionals)in2005.
SCM is wider concept than Logistics Logistics is essentially a planning orientation and framework that seeks to create a single plan for the flow of products and information through a business.
On the other hand, SCM (Supply Chain Management) builds upon this frame work and seeks to achieve linkage and co-ordination between the processes of other entities in the pipeline, i.e. suppliers and customers and the organization itself.
Thus, one goal of SCM might be to reduce or eliminate the buffers of inventory that exist between organizations in a chain through sharing information on demand and current stock.
Supply Chain Chart End user Goods Parts supplier Retailer End user Transporter MakiFactory Warehouse End user Parts supplier Supplier subassembly End user Wholesaler Parts supplier information End User
Bullwhip Effect The term "bullwhip effect" refers to the magnification of demand fluctuations as orders move up the supply chain. Improved forecasting techniques at any one level in the supply chain cannot eliminate the bullwhip effect and may worsen it if used improperly. Information flow and coordination of orders across the supply chain offer the only hope of taming the bullwhip effect.
Size of this preview: 800 × 600 pixels. Other resolutions: 320 × 240
My Business 1 I am importing Bioniche IV Vitamin C around 170,000 vials a year. ①Cash discount @€6.9 x 170,000vials = € 1,173,000 € 1,173,000 x 0.05= € 58,650 =THB2,316,000 ②Currency exchange gain (profit) JPY135-JPY98=JPY37 JPY37 x € 1,173,000 = JPY43,401,000 =THB17,360,000
I am selling this product to around 300 registered Japanese medical doctors. Yearly Sales unit price JPY1,785 x 170,000 vials =JPY303,450,000=THB121,380,000 Cost €6.555 (CIF Tokyo) x 170,000 x JPY98 =JPY109,000,000 15%(import & delivery charge) + 5% tax=20% 109,000,000 x 1.2 = JPY 130,000,000 Gross profit (= Sales – Cost) 303,000,000 – 130,000,000 = JPY173,000,000=THB69,000,000
Business ChartMoney & Product Flow Bioniche (Ireland) Doctor M Doctor Wish International (Hong Kong) Maki Corp. (Japan) M M M Doctor M
Part 2. Why Logistics & SCM ? 1) Economic impact of logistics Logistics cost in GDP is increasing year by year but logistics as a percentage of GDP is decreasing year by year. Logistics cost is around 10% of GDP and one of the most important components in a country’s economy. Logistics also, play an important role in economic growth and development.
2) Competitive Advantage Logistics & SCM can provide a major source of competitive advantage. Successful companies either have a cost advantage or they have a value advantage, or combination of two.