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ContemporaryLogisticsLogistics,SupplyChain,andCompetitivenessbyShao-juLeeApril,2008TopicsReviewofLogisticsManagementSupplyChainManagement–conceptsandevolutionBusinessStrategyandCompetitivenessBusinessModelInnovation/EvolutionI.LogisticsManagementLogisticsinPractice:Construction,Militaryoperations,andBusinessactivitiesLogisticsDefined:Logisticsistheprocessofstrategicallymanagingtheprocurement,movementandstorageofmaterials,partsandfinishedinventory(andtherelatedinformationflows)throughtheorganizationanditsmarketingchannelsinsuchawaythatthecurrentandfutureprofitabilityaremaximizedthroughthecost-effectivefulfillmentoforders.ComponentsofLogisticsManagementManagementactionsPlanningImplementationControlRawmaterialsIn-processinventoryFinishedgoodsNaturalresourcesHumanresourcesFinancialresourcesInformationresourcesTimeandplaceutilityEfficientmovementtocustomerProprietaryassetCompetitiveadvantageLogisticsmanagementSuppliersCustomersInputsintologisticsOutputsoflogisticsCustomerserviceDemandforecastingInventorymanagementLogisticscommunicationsMaterialhandlingOrderprocessingPartsandservicesupportPlant&warehousesiteselectionProcurementPackagingReverselogisticsTrafficandtransportationWarehousingandstorageLogisticsactivitiesKeyLogisticsActivitiesCustomerserviceDemandforecastingInventorymanagementLogisticscommunicationsMaterialhandlingOrderprocessingPackagingKeyLogisticsActivitiesTransportationManagementPlantandwarehousesiteselectionProcurementReverselogisticsWarehousingandstorageGlobalLogisticsII.SupplyChainManagementA.TheEvolutionofSCM-model,paradigmBusinessModelsTheTheoryoftheBusiness–PeterDrucker,1994-classicFateofbusinessdependson“BusinessModel”BusinessModel--theassumptions(conditions)of:1.Environment:society,structure,market,customer,technology–Status?2.Specificmissionoftheorganization–What?3.Corecompetenciesoftheorganization–How?Theseassumptionsmustbe:realistic,coherent,visible,proven,andevolvingtobeeffective,fitandvalid.II.SupplyChainManagementA.TheEvolutionofSCM1.The20thcenturyProduction:divisionoflabor,standardization,large-scaletolowerunitcostMarketing:guess-timationandpromotiontoexpandthemarketTheBusinessModel–e.g.USAuto,LoblawThesetwofunctionshavedifferentemphasis,andtheimbalancecancauseinefficiencies.2.Thelast2decadesproduction:JIT,TQM,smalllot,largemodelstoreduceinventory(direct)anquality(indirect)cost(ex.Toyota’sTPS–pull,0-inventory,smalllot,variety)Marketing:Customization.QR,segmentation,meetingneedsmoredirectly(ex.Zara’sFastFashion)Thegapbetweenabovefunctionsarenarrowing,withaccurateandin-timeinformation,businesscoherencehasbeengreatlyincreased;betterBusinessModel.3.Thelastdecade–Internaloperationsintegrationandexternalextensioncreatedbroaderandmoreaccurateoperationsmodel:Supply(Demand)ChainBusinessModelBusinessModelsRenovationTheUSautoindustry~80’s-90’s(GMasexample)Massproduction–pushmode,marketinsensitivityQualityceilingduetoprocessdesignHugeinventory,stockouts,discounts,wastesSegregatedfunctions(Mktg,R&D,Design,Prod.,Dist.)Patch–fullscaleautomation($50B)--failedFinally,revampedBMafterTPS–nowmodernizedLoblaw–Canadiangroceryking(1000stores)Slowlogistics,inaccurateforecasts,excessinventory(yogurt26/40days);threatfromWal-Mart;Traditionalpatchfailed;RevampedBM(~13/40days)B.ExamplesofindustriesmostdirectlyaffectedbySCBusinessModel1.Computer–Dell(directBM)2.Apparel–Benetton(QRBM)3.Wholesalers,retailers–Wal-Mart,7-11(QvsCBM,PullBM)C.FactorsleadingtoSCM(andlogistics)1.Shortenedproductlifecycle–3Cproducts,fashion,beverages,etc.2.Customers’raisedexpectations--informedconsumershavelowtoleranceforpoorquality,delays,stockouts,poorservices,etc.24/7services,e-services(e.g.28min.pick-up)3.Globalcompetition–globalsourcing(material,labor),manufacturing,marketing&distribution;WTO,NAFTAC.FactorsleadingtoSCM(andlogistics)4.ITandComm.Technologyadvancement–HighIT/Comm.capabilityatlowercost;anytime,anyplace;warehousing/order-pickingefficiency;EDI,RFID,etc.5.Enhancedtransportationcapability,(lower)cost6.Powershiftinthesupplychain–largeretailersmoredemandingandcommanding;dominatinganddrivingSCefficiency(e.g.Wal-Mart)D、ADefinitionofSCMSupplychainmanagementisasetofapproachesutilizedtoefficientlyintegratesuppliers,manufacturers,warehouses,andstores,sothatmerchandiseisproducedanddistributedattherightquantities,totherightlocations,andattherighttime,inordertominimizesystem-wisecostwhilesatisfyingservicelevelrequirements.III.SCMandCompetitivenessA.ClassicCompetitiveStrategies(M.Porter,1985)1.LowCostex:ClonePC,Wal-Mart,Carrefour2.Differentiation–quality,choice,featureex:Starbucks,NewBalance,GiantBicycle3.Focused(vs.Diversified)ex:GE,EnterpriseRentalB.LaterCompetitiveStrategies4.QuickResponse,QRex:Benetton;7-115.Innovation–BusinessModelshiftex:DellCo.SupplyChainManagementsupportsallabovestrategies.C.MeasuresofCompetitivenessA.QualityB.PriceC.TimelinessD.Service高品質高服務低价格高服務低時差D.SupplyChainManagementGoalsThemanagementofrelationshipswithupstreamsuppliersanddownstreamcustomerstodeliversu
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