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    Seiichi Kawasaki

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    mohdkhidir
    This document discusses challenges in electronics supply chain management and expectations for logistics functions. It focuses on inventory carrying cost as the essence of logistics management. Key points are that electronics supply chains are complex with varying products and borders. Sales forecasts are difficult with short product lifecycles, price changes, and competition. Logistics functions are expected to join production planning, oversee entire supply chains, visualize processes, and flexibly meet demands. Managing inventory carrying cost through visualizing inventory levels, shortening supply chain processes, and shifting to a pull-based marketing concept are seen as important to success.

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    Seiichi Kawasaki

    Uploaded by

    mohdkhidir
    12 views7 pages
    This document discusses challenges in electronics supply chain management and expectations for logistics functions. It focuses on inventory carrying cost as the essence of logistics management. Key points are that electronics supply chains are complex with varying products and borders. Sales forecasts are difficult with short product lifecycles, price changes, and competition. Logistics functions are expected to join production planning, oversee entire supply chains, visualize processes, and flexibly meet demands. Managing inventory carrying cost through visualizing inventory levels, shortening supply chain processes, and shifting to a pull-based marketing concept are seen as important to success.

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    This document discusses challenges in electronics supply chain management and expectations for logistics functions. It focuses on inventory carrying cost as the essence of logistics management. Key points are that electronics supply chains are complex with varying products and borders. Sales forecasts are difficult with short product lifecycles, price changes, and competition. Logistics functions are expected to join production planning, oversee entire supply chains, visualize processes, and flexibly meet demands. Managing inventory carrying cost through visualizing inventory levels, shortening supply chain processes, and shifting to a pull-based marketing concept are seen as important to success.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    12 views7 pages

    Seiichi Kawasaki

    Uploaded by

    mohdkhidir
    This document discusses challenges in electronics supply chain management and expectations for logistics functions. It focuses on inventory carrying cost as the essence of logistics management. Key points are that electronics supply chains are complex with varying products and borders. Sales forecasts are difficult with short product lifecycles, price changes, and competition. Logistics functions are expected to join production planning, oversee entire supply chains, visualize processes, and flexibly meet demands. Managing inventory carrying cost through visualizing inventory levels, shortening supply chain processes, and shifting to a pull-based marketing concept are seen as important to success.

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    © All Rights Reserved
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    of 7

    Logistics Management focusing on

    Inventory Carrying Cost


    Seiichi Kawasaki
    President
    MITSUI-SOKO Supply Chain Solutions, Inc.

    MITSUI-SOKO Group
    MITSUI-SOKO HOLDINGS
    MITSUI-SOKO
    MITSUI-SOKO INTERNATIONAL

    MITSUI-SOKO LOGISTICS
    MITSUI-SOKO EXPRESS
    MITSUI-SOKO BUSINESS TRUST

    MITSUI-SOKO Supply Chain Solutions


    66%

    34%

    Challenges of electronics supply chain

    Complexity
    different supply chains depending on products
    logistics cost vs lead time
    complicated supply chains across the borders

    Sales forecast accuracy

    shorter product lifecycle


    price erosion
    changes in consumer preferences
    fierce business competition

    Expectations for logistics function

    Logistics staff
    Partner
    Plant

    Port

    Port

    Maker
    Mass
    DC Retailer DC

    Shop

    Customer

    Partner

    1.
    2.
    3.
    4.
    5.

    join in production planning


    overview the entire supply chain from upstream to downstream
    visualize each process in a supply chain
    provide the menu of logistics services to meet various demands
    take flexible action according to situations

    What is the essence of Logistics Management?


    Inventory Carrying Cost

    Inventory Related Cost

    Capital cost
    Logistics cost
    Tax, Insurance
    Administration cost

    Inventory Risk Cost


    Excess Obsolescence/Disposal
    Shortage Opportunity loss

    Cash flow

    Inventory Carrying Cost Management

    Key to success
    1. Visualize inventory in every process
    of supply chain
    2. Shorten supply chain process
    3. Change the marketing concept
    from Push to Pull

    Thank you.

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