Basic Concepts of Supply Chain and Logistics Management_session3

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    CLO

    Logistics

    29 June 2012

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    Logistics Leadership Bootcamp 10

    Distribution Movement of goods and services

    from producers to customers.

    Marketing (distribution) channel System of

    marketing institutions that enhances the physical

    flow of goods and services, along with ownership

    title, from producer to consumer or business user.

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    Logistics Leadership Bootcamp 10

    Supply-chain management Control of the activities of

    purchasing, processing, and delivery through which raw

    materials are transformed into products and made

    available to final consumers.

    Physical distribution Broad range of activities aimed at

    efficient movement of finished goods from the end of the

    production line to the consumer.

    Logistics Process of coordinating the flow of

    information, goods, and services among members

    of the distribution channel.

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    Logistics Leadership Bootcamp 10

    QUESTIONS??

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    Logistics Leadership Bootcamp 10

    What is Logistics?

    Supplier Storage Plant Warehouse Customers

    RM Supply

    Point

    RM Storage Manufacturing FG Storage Markets

    Movement/

    Transport

    Movement/

    Transport

    Movement/

    Transport

    Movement/

    Transport

    Materials Management Physical Distribution

    Inbound Logistics Outbound Logistics

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    Supply Chain

    Suppliers Factory Warehouse Customer Store Customer

    Customer Purchase Information

    Product Flow

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    Supply Chain Management

    Supply Chain Management encompasses the

    planning and management of all activities

    involved in sourcing and procurement,

    conversion, and all logistics managementactivities.

    (According to the Council of Supply Chain Management Professionals, CSCMP)

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    Functional scope for Supply Management is

    based on four pillars

    Demand &Replenishment

    LogisticsOperations

    Purchasing

    CustomerService

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    Procurement

    Logistics

    Operations

    Customer

    Service

    Demand &

    Replenishment

    Purchasing

    Supply

    Management

    Supplier Selection

    Negotiation &

    Bidding

    Contract

    Administration

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    Demand & Replenishment

    Logistics

    Operations

    Customer

    Service

    Demand &

    Replenishment

    Purchasing

    Supply

    Management

    Demand

    Forecasting

    Inventory

    Management

    Replenishment

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    Demand & Replenishment

    Logistics

    Operations

    Customer

    Service

    Demand &

    Replenishment

    Purchasing

    Supply

    Management

    Order

    Taking

    Order

    Entry

    Order

    Processing

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    Demand & Replenishment

    Logistics

    Operations

    Customer

    Service

    Demand &

    Replenishment

    Purchasing

    Supply

    Management

    Warehousing

    Handling &

    Storage

    Inventory

    Management

    Transportation

    & Delivery

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    Aim of Supply Management

    1. Highest service level to

    customers

    2. Lowest cost operations

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    PCPPI Logistics Process

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    Sales Offices

    North CLO - Plantbase, Bataan, Olongapo and

    Botolan

    South CLO Tarlac, Gapan, Cabanatuan,

    Munoz, Pulilan, Sta. Maria

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    Other Plants Serviced

    NLO/IRO/CVO-NCB 8oz RGBs

    Muntinlupa- RGB Multi-serve

    Nationwide-PET Multi-serve

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