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Transcript 
FIGURE 16-1 Relating logistics
management and supply chain management
to supplier networks and marketing
channels
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-8
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT
• Sourcing, Assembling, and Delivering a
New Car: The Automotive Supply Chain
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-9
FIGURE 16-2 The automotive supply chain
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-10
FIGURE 16-A Paint industry supply chain
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-11
SIGNIFICANCE OF SUPPLY CHAIN
AND LOGISTICS MANAGEMENT
• Dell: A Responsive Supply Chain
• Wal-Mart: An Efficient Supply Chain
 Cross-Docking
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-15
OBJECTIVE OF INFORMATION
AND LOGISTICS MANAGEMENT
IN A SUPPLY CHAIN
• Total Logistics Cost Concept
• Customer Service Concept
 Time
• Lead Time (Order Cycle or Replenishment Time)
• Quick Response or
• Efficient Consumer Response
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-21
FIGURE 16-3 How total logistics cost varies
with numbers of warehouses used
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-22
FIGURE 16-4 Supply chain managers
balance total logistics cost factors against
customer service factors
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-23
MARKETING NEWSNET
For Fashion and Food Merchandising,
Haste is as Important as Taste
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-24
OBJECTIVE OF INFORMATION
AND LOGISTICS MANAGEMENT
IN A SUPPLY CHAIN
• Customer Service Concept
 Dependability
 Communication
 Convenience
• Customer Service Standards
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-25
KEY LOGISTICS FUNCTIONS IN
A SUPPLY CHAIN
• Third-Party Logistics Providers
• Transportation Service Criteria
 Cost
 Dependability
 Time
 Accessibility
 Capability
 Frequency
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-29
FIGURE 16-5 Advantages and
disadvantages of five modes of
transportation
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-30
KEY LOGISTICS FUNCTIONS IN
A SUPPLY CHAIN
• Third-Party Logistics Providers
• Transportation
 Railroads
• Unit Train
• Intermodal Transportation
• Piggyback or Trailer on Flat-Car (TOFC)
• Containers
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-31
ETHICS AND SOCIAL
RESPONSIBILITY ALERT
Reverse Logistics and Green Marketing
Go Together at Estée Lauder
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 16-42
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