8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
1/21
Supply ChainSupply ChainManagementManagementandand
WarehousingWarehousingM Campus 24 th September, 2007
odule 01 : Understanding Logistics and Supply Chaiodule 01 : Understanding Logistics and Supply Chai
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
2/21
Major Chauncey B Baker That branch of the art of war pertaining tothe movement and supply of armies is called Logistics
Understanding Logistics andSupply Chain
eference
Logistics : from Greek word Logisticos The science of computing and calculating
2, Pg 6~8; 4, Pg 14~15 & 19~20,
1905
E v o l u t
i o n , C
o n f u s i o n s ,
J a r g o n a n d
E v o l u t
i o n , C
o n f u s i o n s ,
J a r g o n a n d
D e f
i n i t i o n s
D e f
i n i t i o n s
Agrawal and Rahul Atlekar, Web
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
3/21
Supplier Customer
Material
Money
Information
Definition : Bi-directional flow of Material, Money andInformation
Understanding Logistics andSupply Chain
eference
D e f
i n i t i o n
t h a t w
e w
i l l u s e
D e f
i n i t i o n
t h a t w
e w
i l l u s e
Definitions are an answer to X th Why? Ref to B-school
learning to living the life
1, Pg 5~12
Stated otherwise, do not look at a definition in a context , itwill limit understandingFirst, understanding-and-feeling and then, knowing it, is -definingNext is, knowing it through its context(s) i.e. knowing it
more fully Following is the contexts in which we will understandLogistics and Supply ChainVarious Components and their role in the Strategic Thinking of the
CompanyDesigning the Network viz. Warehouse Location and Transport
Various Processes, Infrastructure, Manpower and Information Needs
Managing a Logistics and Supply Chain Infrastructure
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
4/21
Situational ContextsWorkplace Logistics
Understanding Logistics andSupply Chain
eference
S i t u a t i o n a l
C o n
t e x t s
S i t u a t i o n a l C o n
t e x t s
1, Pg 6~8
within a single workstation, viz. stocking and replenishing thedisplay-rack stock or promo-zone stock in a store, ergonomicsin a assembly lineFacility Logisticsbetween workstations, viz. material handling inside a facilitye.g. warehouse to floor of store, floor of the store to cashcounter and to the exist, exit to the car parkCorporate Logisticsbetween the facilities of a company or that of the companyand its supplier(s) or customer(s) or that of supplierssuppliers or customers customersGlobal Logistics
same as Corporate Logistics but includes between countries;globalisation and increased use of web sites for buying andselling has increased the incidence of this complex activityviz. multiple handing-over, players, languages, documents,currencies, time zones and cultures of a international businessSupply Chain Logistics
Inter and intra workstation, facility and corporate logisticsBalaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
5/21
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
6/21
LSC Activities
Understanding Logistics andSupply Chain
eference
5 - P o i n t
A c t i v i t i e s
5 - P o i n t
A c t i v i t i e s
1, Pg 12~15
CRP
IP&M
SSPPDS
WMS
LogisticsLogisticsand Supplyand Supply
ChainChain
CustomerResponse Policy
Inventory Planningand Management
Supplier ServicePolicy
Physical
DistributionSystem
WarehouseManagement andSystems
5-Point Interdependent Activities5-Point Interdependent Activities
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
7/21
LSC Activities : Framework
Understanding Logistics andSupply Chain
eference
5 - P o i n t
A c t i v i t i e s
5 - P o i n t
A c t i v i t i e s
1, Pg 16
OrganisationDevelopmentProcess Design
Goals, Measuresand Performance
Parametrs
InformationSystem
Requirements
Logistics andLogistics andSupply ChainSupply Chain
Common toCommon to
all 5-Pointall 5-PointActivitiesActivities
Customer Response
InventoryPlanning andManagemen
t
Supply Transportation Warehousing
5-Point Interdependent Activities5-Point Interdependent Activities
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
8/21
LSC Activity : Analysis Framework
Understanding Logistics andSupply Chain
eference
S y s t e m a t i c
A n a
l y s i s o f 5 - P
o i n t
A c t
i v i t i e s
S y s t e m a t i c
A n a
l y s i s o f 5
- P o i n t
A c t
i v i t i e s
1, Pg 18~19
InvestigateInvestigate
ImplementImplementInnovateInnovate
InvestigateInvestigateProfileMeasureBenchmark
InnovateInnovateSimplifyOptimiseUse BestPractice
ImplementImplement
SystemizeAutomateHumanize
Each LSC Activity need be analysed using this tool
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
9/21
Understanding Logistics andSupply Chain
eference
E x a m p
l e o f
G a p
A n a
l y s i s
E x a m p
l e o f
G a p
A n a
l y s i s
1, Pg 19
3.5
3.0
3.0
3.5
3.23.8
3.5
3.5
3.0
4.04.0
4.0
5.0
4.0
5.5
5.0
5.0
4.0
0
1
2
3
4
5
6Perf Para
Process
Info Sys
Org Dev
CSLIP&M
SSL
PDS
WMS
Actual Best Practices
4.05.05.05.54.05.04.04.04.0Best Practices
3.03.53.53.83.23.53.03.03.5Actual
WMSPDSSSLIP&MCSLOrgDev
InfoSysProces
Perf.Para
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
10/21
1. Guidelines for using Case Studies in Supply Chain Management isgiven for classroom discussion and/or presented in the classroom
Assignment - 01
eference
S u p p
l y C h a i n
M a n a g e m e n
t a n
d
S u p p
l y C h a i n
M a n a g e m e n
t a n
d
W a r e h o u s
i n g
W a r e h o u s
i n g
Following Cases are given for presentation and discussion on24th September, 200724th September, 2007
1. In addition to participating in the above case, the followingstudents will present an additional case; New Global Links in AutoSupply Chain
Gateway : A direct Sales Manufacturer ThunderboltsZara : Apparel Manufacturing and Retail PinnacleW W Grainger and McMaster-Carr : MRO Suppliers Achievers
Toyota : A Global auto manufacturer Vikings
Amazon. COM : An e-business Saptarishi
Namita Bhuyan
DharmendraKumarXXXXXXXXX
TXXXXXXXXXXXXXXXX
XXXXXXXXXXX
Namita Bhuyan
DharmendraKumarXXXXXXXXX
TXXXXXXXXXXXXXXXX
XXXXXXXXXXX
PGPRM; 2006~08 Batch Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
11/21
1. Frazelle, Edward ; Supply Chain Strategy; 2004 edition; Tata McGraw-HillPub. Co. Ltd.
References
eference
S u p p
l y C h a i n
M a n a g e m e n
t a n
d
S u p p
l y C h a i n
M a n a g e m e n
t a n
d
W a r e h o u s
i n g
W a r e h o u s
i n g
PGPRM; 2006~08 Batch
1. Agrawal, D K; Textbook of Logistics and Supply Chain Management; 2003
edition; Macmillan India Ltd. Chopra Sunil and Meindl Peter; Supply Chain Management Strategy,Planning and Operation; 3 rd edition; Prentice Hall of India Pvt. Ltd.
1. Mohanty R P and Deshmukh S G; Supply Chain Management Theoriesand Practices; 2005 edition; Biztantra
1. Rahul Atlekar Mohanty R P and Deshmukh S G; Supply ChainManagement Theories and Practices; 2005 edition; Biztantra
1. Sople Rahul Atlekar Mohanty R P and Deshmukh S G; Supply ChainManagement Theories and Practices; 2005 edition; Biztantra
1. Kaminski Sople Rahul Atlekar Mohanty R P and Deshmukh S G; SupplyChain Management Theories and Practices; 2005 edition; Biztantra
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
12/21
Prepared for Classroom Discussions by
eferencePGPRM; 2006~08 Batch
Prof. Balaram Swamy JB. Tech (IIT, Kharagpur) and PGDM (IIM Calcutta, Joka)
Asian School of BusinessManagementCity Office :
# 8, Sai Anandam Complex, Patia Square, Bhubaneswar: 751 024 Phone : 91 674 274 4881,4882, 3154 Fax : 91 674 274 4883
Campus : Shiksha Vihar, Baranga-Khurda Road,
Chandaka, Bhubaneswar : 754 005 Phone :
91 674 211 1204, 1207, 1208 Fax : 91 674 2111205, 1206
Website : www.a sbm.ac.ine-mail : [email protected] [email protected] Mobile : 91 99380 68979
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
13/21
Thank YouThank You
M Campus 24 th September, 2007 Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
14/21
Supply ChainSupply ChainManagementManagementandand
WarehousingWarehousingM Campus 24 th September, 2007
Module 02 : Customer ResponseModule 02 : Customer Response
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
15/21
agreement between logistics organisation and its ExternalExternal andInternal CustomerInternal Customer
Customer Response
eference
75% of the reasons that customers leave a company has nothingto do with the product
1, Pg 70~71, Fortune One World Distribution
98% of dissatisfied customers do not complain, they just leave
H i d d e n
C o s
t a n
d i t s
H i d d e n
C o s t a n
d i t s
I m p o r t a n c e
I m p o r t a n c e
85% of dissatisfied customers tell 9 people; 13% tell 20 people; asatisfied customer tell 5In the next 6 years, 80% of your customers will leave, 65% due tosomething you did
Therefore, Customer Response StrategyCustomer Response Strategy is very important ithelps in arriving at an
agreement on the Customer Service PolicyCustomer Service Policy at a Total LogisticsTotal LogisticsCostCost
Business
Strategy
Custo
merResponseStrategy
ExternalEnvironment
InternalAnalysis
ExternalCus tomer
InternalCustomer
CustomerResponsePolicy
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
16/21
Understanding Customer Service
In Retail Strategy, we appreciated that the Customer Serviceis one of the major components which classifies the RetailBusiness in various Retail Formats
Customer Response
eference
A W i d e r
P e r s p e c
t i v e
A W i d e r
P e r s p e c
t i v e
x, Pg xx
Customer Service arising out of
Service-to-the-Customer (during and post-purchase),Merchandise (Inventory Management)
and, Inbound-OutboundLogistics (Porters Generic Value Chain Analysis for SCA)
are the subject of LSC Domain
Balaram Swamy
We appreciated that, the cost of Customer Service is a partof Value Pack Offering to the customer in the Retail Business
We also understood that, Merchandise both Variety and
Assortment, are integral part of the Value Pack andappreciated that, the cost is factored into the Price
Here, we will understanding Customer Service as givenbelow:Various Feature and Components of Customer Service
Customer Service Measures the Gap Analysis
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
17/21
Understanding to Defining Customer Service
A strategic process of Cost-Efficient, Value-Added Benefitprovided to External Customers so as to exploit this in Sales andMarketing Process
Customer Response
eference
D e f
i n i t i o n a n
d F e a t u r e s
D e f
i n i t i o n a n
d F e a t u r e s
2, Pg 83 : Pg 80, Ashok Leyland Caselet
Always ensures a Trade-off between Cost and Service
Balaram Swamy
A Strategic Process to provide Value-Added Services to theCustomers
Features of Customer Service
Keeps the Customer always, Happy and Loyal
Brings in Harmonious Relationships between Supply ChainMembersStarts, generally with Order Entry and ends with Delivery of Goods to the CustomerBrings in Competitive Advantage
Reflects Corporate Vision
More often, this has become a source of SustainedCompetitive Advantage for some of the successful
companies
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
18/21
A Mature Customer Service Policy - CSPCSP is stated, Quantified and Segmented by Customer and Item
Categories
Customer Response
eference
C u s
t o m
e r S e r v
i c e
P o l i c y
C u s
t o m
e r S e r v
i c e
P o l i c y
1, Pg 78~xx ; 2, Pg 87 Balaram Swamy
Refer to the Caselet : 2, Pg 99; The Financial Express, 2 nd August 1999J K Tyres Treads a New Measure for Winning Dealer
Loyalty The Company is sharing its Sales Policyfor 1999~2000 with its Dealers in writing
Statement of CSP
Sales Activity Profile - by Customer (SAP-C)
CSP is in measurable Quantified terms and are Segmented byCustomer-Item Cat
Sales Activity Profile - by Item (SAP-I)
Sales Activity Profile - by Customer-Item (SAP-CI)
Watch the use of Investigate-Innovate-
Implement framework in the following twoslides
InvestigateInvestigateProfileMeasureBenchmark
InnovateInnovateSimplifyOptimiseUse BestPracticeImplementImplement
SystemizeAutomateHumanize
InvestigateInvestigate
ImplemeImplementntInnovateInnovate
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
19/21
Sales Activity Profile by Customer (SAP-C)ABC Category of Customers by Sales or Profits
Customer Activity Profiling
eference
S A P - C S A P - C
1, Pg 73~76
Typically 5% of customers normally account for 80% of salesor profit; 15% of customers for 15% and, balance 80% of customers account for 5% of sales or profit This helps in making differentiated customer policy, eachserving to a segment of customers; hence, cost differentiationand justification is possible
Balaram Swamy
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
20/21
Sales Activity Profile by Item (SAP-I)ABC Category of Items by Sales or Profits
Customer Activity Profiling
eference
S A P - I a n d
S A P - C I
S A P - I a n d S
A P - C I
1, Pg 73~76
Typically 5% of items normally account for 80% of sales orprofit; 15% of items for 15% and, balance 80% of itemsaccount for 5% of sales or profit
This is similar to ABC-VED Matrix, in Inventory Managementwhere different Service Levels viz. 95% Service Level meansgoing o/f stock for 5% of times when it is needed
Balaram Swamy
Sales Activity Profile by Customer and Item (SAP-CI)
This system of analysis helps to make a DifferentiatedCustomer Policy and derive maximum cost-benefit
Refer to Fig 4.4, 1, Pg 76 : % Sales-Profit across Customer and ItemsCategories
On Item axis, further subdivision over SKUs and, on Customer axis,Store Location wise data from Data-Warehouse helps fix a CustomerService Standard which is optimal
8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC
21/21
We will begin with Investigate, Innovate and Implementroute
Customer Response
f
U s i n g
t h e
F r a m e w o r k s
U s i n g
t h e
F r a m e w o r k s
1 P 16 & 18
InvestigateInvestigateProfileMeasureBenchmark
InnovateInnovateSimplifyOptimiseUse BestPracticeImplementImplement
SystemizeAutomateHumanize
InvestigateInvestigate
ImplementImplementInnovateInnovate
and, plan Customer Response (CR) Activities as perLogistics Activity Framework
OrganisationDevelopmentProcess Design
Goals, Measuresand Performance
Parametrs
InformationSystem
Requirements
Logistics andLogistics andSupply ChainSupply Chain
Common toCommon toall 5-Pointall 5-PointActivitiesActivities
Balaram Swamy
Top Related