SUPPLY CHAIN DYNAMICS

A supply chain is defined as a set of three or more

companies directly linked by one or more of the
upstream and downstream flows of products, services,
finances and information from a source to a customer.
Logistical management
 Logistical management includes the design and
administration of system to control the flow of
material, work in progress, and finished inventory to
support business unit strategy.
 KEY SUPPLY CHAIN CONCEPTS
Operational and tactical activities
Strategic aspect of the function.
Conflicting objectives in supply
chain
1.Purchasing
 Stable volume requirements
 Flexible delivery time
 Little variation
 Large quantities
2.Manufacturing
 Long run production
 High quality
 High productivity
 Low productivity
3. Warehousing
 Low inventory
Short term logistics
- Transport deployment
 Safety
 Fleet visibility
 OTIFIC
 Efficient dispatch
 Accountability
 Drivers management
- Improve security at dispatch points
 Physical distribution
 This transaction may involve
-packaging
Finished goods warehousing
packaging
 Consumer packaging vs. industrial packaging
 Damage protection in packaging
 Increasing the efficiency in packaging
 Transportation management
 Choosing from transportation alternatives
 Transportation rate determination
 Factors affecting the freight rates
 Quantity discounts in transportation
 Evaluating the carrier alternatives
Trip planning
 Estimating
 Scheduling
 Routing
 Budgeting
 Programming
 Simulating
the planning would center around time and space.
That is
 When and where
 Who and when
Routing ( route mapping)
In route planning, following factors should be taken into
consideration
 Distance
 State of the road
 Safety of lives and property
 Road network
 Escape route
 Local legislation
 Perennial hold up
 Road rehabilitation
Measuring logistics performance
 What is in the purpose of service providers
performance management(SPPM)whose performance
should we manage?
 Cross functional input
 How do we measure performance ?
 Service level agreement (SLA)
 Key performance indicators (KPI)
 Managing performance review meetings
 Frequency
 Key considerations
 Contingency planning
What is the purpose of logistic
performance management?
To raise business performance by delivery continuous
improvement in the supply of cost effective goods and
services
 Understand performance to help logistics decisions
 Determine high performing haulage company
 Build appropriate relationships with the best
contractor
 Track and fix under performing contractor issues
before risk .
 Obtain information to ensure achievement of promise.
 Provide incentive through appraisal for continuous