1 / 16

Logistics/Supply Chain Strategy and Planning

Logistics/Supply Chain Strategy and Planning. “If you don’t know where you want to go, any path will do.”. Chapter 2. CR (2004) Prentice Hall, Inc. Corporate Strategy. ·. Strategy is the process whereby plans are formulated for. positioning the firm to meet its objectives. ·.

tomas
Download Presentation

Logistics/Supply Chain Strategy and Planning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Logistics/Supply Chain Strategy and Planning “If you don’t know where you want to go, any path will do.” Chapter 2 CR (2004) Prentice Hall, Inc.

  2. Corporate Strategy · Strategy is the process whereby plans are formulated for positioning the firm to meet its objectives. · Strategy formulation begins with defining a corporate strategy. This involves: a. Assessing needs, strengths, and weaknesses of the 4 major components: - customers - suppliers - competitors - the company itself b. "Visioning" where counter - intuitive, unheard of, and unconventional strategies are considered. · Corporate strategies are converted to more specific strategies for the various functional areas of the firm such as logistics. CR (2004) Prentice Hall, Inc.

  3. · The objectives of logistics strategy are: - Minimize cost Logistics Strategy - Minimize investment - Maximize customer service Use ROLA · Levels of logistical planning: - Strategic - Tactical - Operational · The 4 problem areas of supply chain planning - Customer ser vice levels Recall the logistics strategy triangle - Facility location - Inventory decisions - Transportation decisions · When to plan? - No distribution network currently exists. - There has been no re-evaluation in 5 years. - When costs are changing rapidly, especially transport & inventory. - When markets have shifted. - When current distribution economics encourage shifts. - When there has been a major policy shift in logistics such as in price, customer service, or investment level.

  4. Corporate strategic plan • Economic • Regulatory • Technological • Competitive External factors Marketing Manufacturing Finance Logistics Functional strategic plans Corporate to Functional Strategic Planning CR (2004) Prentice Hall, Inc.

  5. Facility location • Operations strategy • Inventory management • Information systems • Material handling • Traffic and transportation • Planning and control methods • Organization Individual Link of Logistics System Business goals and strategies Customer service requirements Integrated logistics planning Design of integrated logistics management system Overall performance measures Flow of Logistics Planning CR (2004) Prentice Hall, Inc.

  6. Logistics’ Objective Maximize return on logistics assets (ROLA) Costs of logistics operations Logistics’ contribution to sales Investment in logistics assets CR (2004) Prentice Hall, Inc.

  7. Strategic, Tactical, and Operational Decision Making Decision area Strategic Tactical Operational Transportation Mode selection Seasonal equip- Dispatching ment leasing Inventories Location, Control policies Safety stock levels Order filling Order Order entry, transmittal, Processing processing and processing system orders, Filling design back orders Purchasing Development of supplier- Contracting, Expediting buyer relations Forward buying Warehousing Handling equipment Space utilization Order picking selection, Layout design and restocking Facility Number, size, and location location of warehouses 2-7 CR (2004) Prentice Hall, Inc.

  8. Total cost concept · Tradeoff conflicting costs at optimum Differentiated distribution · Not all products should be provided the same level of customer service Mixed strategy · A pure strategy has higher costs than a mixed strategy Postponement · Delay formati on of the final product as long as possible Shipment consolidation · Smaller shipment sizes have disproportionately higher transportation costs than larger ones Product standardization · Avoid product variety since it adds to inventory Six Concepts for Logistics Strategy Formulation CR (2004) Prentice Hall, Inc.

  9. A Cost Conflict in Logistics CR (2004) Prentice Hall, Inc.

  10. More Cost Conflicts 2-10 CR (2004) Prentice Hall, Inc.

  11. Pure vs. Mixed Strategy CR (2004) Prentice Hall, Inc.

  12. Choosing the Right Supply Chain Strategy Low margin High margin CR (2004) Prentice Hall, Inc.

  13. Classification of Products CR (2004) Prentice Hall, Inc.

  14. Choosing the Right Supply Chain Strategy Supply-to-stock Supply-to-order

  15. Actions for Misclassified Products CR (2004) Prentice Hall, Inc.

  16. Seven Principles of Supply Chain Management Differentiated distribution • Segment customers based on service needs • Listen to signals of market demand and plan accordingly • Develop a supply-chain-wide technology strategy • Customize the logistics network • Differentiate product closer to the customer • Source strategically • Adopt channel-spanning performance measures Design to customer needs Boundary spanning info. systems Postponement Source: Accenture Consulting CR (2004) Prentice Hall, Inc.

More Related