Video Lectures for MBA

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Chapter 10
Material & Information Flow Management in Channel

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 Material Flow & Logistics System

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Thinking 1: PD or Logistics
Thinking 2: content of logistics system
Thinking 3: task and goal of logistics

Thinking 4:programming and management

of logistics
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Thinking 2: content of logistics system

Acording to function
Supply Logistics
Manufacture Logistics
Sale Logistics
Returned Logistics
Waste Material Logistics

Acording to activity process

Transportation Subsystem
Storage Subsystem
Loading & Unloading Subsystem
Packaging Subsystem
Dstribution Subsystem
Circulation &Processing Subsystem

Regional Logistics

Social Logistics

Domestic Logistics

Industrial Logistics

International Logistics

Enterprise Logistics

Acording to spacial scope Acording to nature & category

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Logistics contents
logistics

Information Flow

Material Flow

Logistics
facilities
& tools

Transp
ortation

Invent
ory&St
orage

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Loadi
ng &
unloa
ding

Circul
ation
&proc
essing

Distrib
ution

Informa
tion tool

collection,proc
essing &
communication

of logistics
information

Thinking 3: task and goal of logistics

Quick Response
Maximum Transportation Amount
Consolidation
Minimum Inventory
Relatively Balanced Minimum Change
Total Quality Control
Life Cycle Support
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Domestic 3PL Enterprise Category

Traditional
Transportation
Enterprise

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Manufacturing
Enterprise
Logistic
Department

TCL

Emerging
Logistics
Enterprises

Foreign Capital
Logistics
Corporation

APL
PANALPINA
EXCEL
FEDEX

Thinking 4:programming and management of logistics

D=T+FW+VW+S
D: total cost of logistics system
T: transportation cost of this system

FW: fixed inventory cost of this system

VW: total variable inventory cost of this system

S: total opportunity cost of loss on sale caused by

delayed distribution
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Factors & Assessment of Customer Service in Channel Logistics

Before-trade Factor

During-trade Factor
Ordering information
Ordering convenience
Ordering cycle
Special freight
Stock out level
surrogate products

Customer service
regulation

Organization structure
System flexibility
Management service

After-trade Factor
Fixing/Warranty/Change/Providing/Spare & accessory
parts
Products track
Customers resentment for refund
Temporary borrowing
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Customer Service Factors Assessment

Performance Performance
Enterprise A
Enterprise B

Relative
performance

NO.

Factors

Importance

Supply accuracy

6.42

5.54

5.56

-0.11

Rush order
dispose
Deal with
resentment of
customer

6.25

4.98

5.23

-0.25

6.07

4.82

5.18

-0.36

Supply on time

5.92

4.53

4.73

-0.20

Correct mistakes

5.34

4.64

4.90

-0.24

4.55

5.03

4.15

0.88

4.29

5.07

5.03

0.04

3.58

5.33

5.21

0.12

2.33

4.07

3.53

0.54

3
4
5
6
7

Single package
order
Delivery
frequency

Special man
8
computerized
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Transportation Management
2)Optimization of
Transportation
Line

1)Selection of
Transportation
Mode
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Optimization of Transportation Line

Operating
characteristics
Speed
Availability
Dependence
Liability
Using
Frequency
Cost
Eexpense

Railway

Road

Waterway

Pipeline

ecumenical

good

slightly bad

bad

slightly bad

bad

good

slightly bad

excellent

bad

good

ecumenical

excellent

bad

slightly bad

slightly bad

good

bad

excellent

ecumenical

Good

slightly bad

excellent

good

bad

good
ecumenical

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excellent

Airway
excellent
ecumenical

Inventory Management

Products
Storage
Management
Content

Warehouse
Selection

Identify the warehouse category

Identify the warehouse size
Identify the warehouse location

Inventory control
Inventory
Daily inventory management
Management
Stock anaysis

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Method to Identify the Optimal Ordering Amount

1)EOQ
2) ABC Classification Method

3) Material Requirements Planning

MRP II (Manufacturing Resource)
4)JIT
5)Enterprise Requirements Planning
6)QR
7)ECR
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EOQ
Expense

Total cost
Inventory cost
A
Ordering cost

Economic ordering lot size

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Ordering lot size

Explaination for the EOQ Model

Ordering cost and inventory cost changing with amount of
ordering lot size respectivrly.
Ordering cost decreasing with increasing of ordering lot size;
inventory cost increasing with increasing of ordering lot size.

Point A stands for economic ordering lot size, or economic

ordering amount.

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 Channel Information System

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Channel Information System Defined

Channel information system
An integrated man-machine system, aiming at improving
effect and efficiency of enterprise strategy .It is humanoriented and manage information by computer.

Nature
A management system & A social system
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Structure of MIS

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Structure of MIS

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Structure of MIS

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Headquarters/Franchisers/

Information Management

Stores Management

Technology Among

System

Channel Members

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Analysis of Channel Information Process

Sale Management

Delivery Management

Promotion Management

Customer Management

Inventory Management

Accounts Receivable/payable

Purchasing Management

After-sale service

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Function of Channel Information System

Supporting distribution rear services strongly

Assessing adjust channel members

Facilitating and improving rear services data exchange
Used in non-channel management

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Thank you for your time!

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