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