Chapter 1: Introduction to Logistics

and Supply Chain Management

Dr. YANG Ruina (Anna)

rnyang@mail.xjtu.edu.cn

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 Reference Book
Design and Managing the Supply Chain
---David Simchi-Levi (3rd Edition)

Logistics and Supply Chain Management

(Strategies for Reducing Cost and
Improving Service)
---Martin Christopher (2nd Edition)
 Content
Inventory management
Forecasting
Supply contracts
The value of information
Supply chain integration
Distribution Strategy
Outsourcing, off-shoring, and procurement
strategies
 Agenda
Logistics Management

Supply Chain Management

Global Supply Chain

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 Review of Logistics
Origin: Military strategy (e.g. Gulf War 1991)
Wars have been won through logistics strengths
and capabilities
The Second World War (The Allied Forces
invasion of Europe, Rommel before the fighting
proper, the battle is won or lost by quartermasters

It is only in the recent past that business organizations have come to recognize

the vital impact that logistics management can have

in the achievement of competitive advantage

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The Definition of Logistics
Logistics Definition
The Definition of Logistics(Latest)

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Logistics Management

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 What Skills Needed?
Communication
Problem solving
Information technology
Business knowledge

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Logistics in China

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Percentage of Logistics Cost/GDP

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World Bank Logistics Performance
Index

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 The Increased Importance of Logistics

Globalization
Information technology advances
A reduction in economic regulation
Changes in consumer behavior
The growing power of retailers
 Globalization

 Globalization

Global Supply Chain

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 The Value Curve

Information Technology Advances

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Information Technology Advances

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A Reduction in Economic Regulation

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Changes in Consumer
Behavior

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The Growing Power of
Retailers

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What is a Supply Chain?

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Examples of Supply Chain

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Examples of Supply Chains

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The SCM Network
Supply Chain Management

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 Key Observations
Every facility that impacts costs need to be
considered
Suppliers suppliers
Customers customers
Efficiency and cost-effectiveness throughout the
system is required
System level approach
Multiple levels of activities
Strategic Tactical Operational
 What Makes SCM Difficult?
Supply chain strategy can not be
determined in isolation.
Challenging to minimize system costs and
maximize system service levels
Inherent presence of uncertainty and risk
 Global Apparel Value Chain
Tracing back the dress you are wearing
 Grading

Attendance 5%

Paper presentation+ Case study 35%

Assignment 20%

Final Report 40%

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 Final Report(40%)
Based on the theories, methods, tools learned from
this course, please design a firm, and focus on its
supply chain strategies and practices.

Questions:
Will this firm survive in the future? Will it be successful?
Why?
How could we defeat this firm? (please consider this from
the perspectives of competitors)
What are the most important issues for supply chain
management?
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 Final Report
Individual assignment, about 3000 words, A4
paper with 2.54 cm for all margins, 12 pts Times
New Roman font, double space.
Appendices and references should be 12 pts
Times New Roman font, single space. Please
refer to Journal of Operations Management
papers for other formats (e.g. Citations and
references).

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 Group Discussion
Consider the supply chain for a automobile.
-- What are the components of the supply chain
for the automobile?
-- What are the different firms involved in the
supply chain?
-- What are the objectives of these firms?
-- Provide examples of conflicting objectives in
this supply chain.