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Chapter 4

Tactical logistics management and supply chain integration. Chapter 4. This chapter addresses the following four aspects: Tactical logistics activities Managing the goods flow Product supply chain processes Time management in supply chains. Tactical logistics management.

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Chapter 4

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  1. Tactical logistics management and supply chain integration Chapter 4

  2. This chapter addresses the following four aspects: Tactical logistics activities Managing the goods flow Product supply chain processes Time management in supply chains Tactical logistics management

  3. Tactical logistics activities are those that are undertaken to implement and organise functional supply chain activities: Buying Making Moving Storing Selling Tactical logistics activities

  4. The main tactical management objectives in a supply chain are: Minimising time to convert orders into cash Minimising the total WIP in the supply chain Improving pipeline visibility Improving visibility of demand by each partner Improving quality Reducing costs Improving services Tactical logistics activities(continued)

  5. Managing the goods flow

  6. Managing the goods flow(continued)

  7. Push-based supply chain systems Pull-based supply chain systems Push-pull-based supply chain systems Product supply chain processes

  8. Identifying the appropriate supply chain approach

  9. (Insert Table 4.1) Characteristics of the push and pull portions of supply chains Implementing a supply chain approach

  10. Push-, pull- and push-pull-based supply chain systems: Pick and ship to stock Make to stock Assemble to order Make to order Purchase and make to order Engineer to order Product supply chain processes

  11. See Figure 4.4 for customer order decoupling points. See Table 4.2 for supply chain responses to customer demands. Product supply chain processes(continued)

  12. Customer order decoupling points

  13. Supply chain responses to customer demands

  14. The importance of time: Time-based competition Reducing cycle lead time Reliability or consistency of cycle lead time Flexibility in order to restore reliability Causes of long order lead times: Ambiguous goals and objectives Batching Time management in supply chains

  15. Causes of long order lead times (continued): Excessive controls Lack of information Lack of synchronisation in materials movement Lack of proper training Limited co-operation Limited co-ordination Time management in supply chains(continued)

  16. Causes of long order lead times (continued): Non-value-added activities Outdated information technology Poor communication Poorly designed procedures and forms Repeating process activities Serial versus parallel operations Waiting Time management in supply chains(continued)

  17. Opportunities for production cycle and order lead-time reduction Requires effective co-ordination between: Selling Moving Manufacturing Storing and Buying activities Time management in supply chains(continued)

  18. Real-time supply chain scheduling

  19. Process time improvement approach proposed by Harrington: 1. Establish a time management team. 2. Understand given supply chain process and current cycle time and order lead time. 3. Identify opportunities for time reduction and on-time delivery improvement. 4. Develop and implement recommendations. 5. Measure performance. 6. Implement continuous improvement efforts. Time management in supply chains(continued)

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