international logistics and supply chain management pdf

From this map it can be seen that horizontal time is 60 days., 25.07.2012.,29.07.2012. 3. There has to be nothing less than a shift from a functional focus to a process focus. usually performs management functions in the logistic center after it is set up. The term ‘customer profitability accounting’ describes any attempt to relate the revenue produced by a customer, market segment or distribution channel to the costs of servicing that customer/segment/channel. distribution, may be the biggest immediate benefit for the supplier. The goal of a hybrid (or ‘leagile’ as it is sometimes termed) strategy should be to build an agile response upon a lean platform by seeking to follow lean principles up to the de-coupling point and agile practices after that point.3 Figure 5.3 illustrates this idea. Process variability can add to supply chain risk in a number of ways. In March 2000 both Nokia and Ericsson were affected by a lightening strike on a semi-conductor factory in New Mexico, USA. simultaneously transmitting voice messages, transfer data to multiple recipients; interrupting less important conversations in favor of the more important; connection with a specific person because of their function; ). ResearchGate has not been able to resolve any citations for this publication. To overcome this problem it is necessary to change radically the basis of cost accounting away from the notion that all expenses must be allocated (often on an arbitrary basis) to individual units (such as products) and, instead, to separate the expenses and match them to the activities that consume the resources. However, as sales peaked and declined, beginning in 2008, much of that additional capacity became redundant. Today, customer retention is a key measure of success in the world of relationship marketing. Co-makership may be defined as: The development of a long-term relationship with a limited number of suppliers on the basis of mutual confidence. Many companies seek to be responsive and marketfacing and yet they still use performance metrics that relate to internal efficiencies. In the automobile industry most of the volume car manufacturers have established ‘seamless’ processes with their first tier suppliers based upon providing immediate access to production plans and schedules. This idea is not new. the activity of terminals, such as: airport stations and harbors etc.. fire-fighting and fire protection services at airports; handling of goods in seaports - the subclass includes: loading, unloading and handling of cargo and luggage of passengers in seaports, multimodal - transportation with at least two different transport modes, 83 Figure 4.1 Forecast error and planning horizons Forecast error + Time – Figure 4.2 The lead-time gap Procurement Manufacturing Delivery Logistics lead time Customer’s order cycle Order fulfilment Lead-time gap The customer’s order cycle refers to the length of time that the customer is prepared to wait, from when the order is placed through to when the goods are received. sector, what are its distinctive features, if any; Cooperation regarding information sharing and exchange is particularly important in, type, or finally enterprises that own intelligent production s. field of information is related, among others, to the following: controlling, decision-making and coordinating); assembly of products; supplies, storage; tool and repair management); regarding a specific unit at the same time ; 1.3. When parts are needed on the assembly line they are fed from the next stage up the chain in just the quantity needed at the time they are needed. It seems that no matter how sophisticated the forecasting techniques employed, the volatility of markets ensures that the forecast will be wrong! external SCM integrates the company with its suppliers and customers. The wider business, economic and political environments are increasingly subjected to unexpected shocks and discontinuities. 199 s Lower specification limit 2σ 4.56% probability of defect Upper Lower specification specification limit limit Upper specification limit 2σ 6σ 6σ Two sigma 0.00034% probability of defect Six sigma Six sigma is a data-driven continuous improvement methodology that seeks to bring processes under control and to improve process capability. MM What effect would this failure have? The curve assumes that demand for the item is ‘normally’ distributed, i.e. services related to air traffic management. As we get closer to the point of demand fulfilment then we can start to think about product mix requirements. Because of the swing in power in many marketing channels away from manufacturers and towards the distributor (e.g. typically 80 per cent of the profit derives from 20 per cent of the customer and likewise 80 per cent of the profit comes from just 20 per cent of the products. (this feature is not common among other described systems). from two to four a year. The more you know, the smarter and faster you can go. The unpredictability of these events is heightened by the growing volatility that characterises today’s business environment. Following success in the manufacturing area, Xerox’s top management directed that benchmarking be performed by all cost centres and business units across the company. 70 LOGISTICS & SUPPLY CHAIN MANAGEMEN T Figure 3.8 Missions that cut across functional boundaries Sales Purchasing Production Transportation Marketing Etc Supply chain mission A Supply chain mission B Supply chain mission C The successful achievement of defined mission goals involves inputs from a large number of functional areas and activity centres within the firm. In the case of the 787 the only part manufactured in the Washington factory is the tail fin (and even this manufacturing is shared with another facility outside Washington). Such strategies will focus upon seeking innovative ways to create more value for these customers. Hence it is critical that we develop a set of service criteria that are meaningful to customers. … The physical distribution of the goods is a problem distinct from the creation of demand … Not a few worthy failures in distribution campaigns have been due to such a lack of co-ordination between demand creation and physical supply … Instead of being a subsequent problem, this question of supply must be met and answered before the work of distribution begins.2 It is paradoxical that it has taken almost 100 years for these basic principles of logistics management to be widely accepted. Once a product is on the market the ability to respond quickly to demand is equally important. In the next 12 months … 69 per cent of all consumers plan to buy Fair Trade products, 53 per cent currently do. Thus process control becomes the means by which variation in output is identified. MAN AG ING rISk IN THE SUPPLY CHAIN 209 The era of network competition MM The new organisational paradigm MM Collaboration in the supply chain MM Managing the supply chain as a network MM Seven major business transformations MM The implications for tomorrow’s logistics managers MM Supply chain orchestration MM From 3PL to 4PL™ 11 Throughout this book the emphasis has been upon the achievement of competitive advantage through excellence in logistics and supply chain management.

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