SUPPLY CHAIN LOGISTICS MANAGEMENT

- DONALD J. BOWERSOX -
- FIFTH EDITION -

- COPYRIGHT: 2020 -

By Dr. Luis ALFARO, YEAR 2022

SUPPLY CHAIN LOGISTICS MANAGEMENT

EXTRA MATERIAL CHAPTER 4 – P1:

THE LOGISTICS AND SCM STRATEGY

In accordance with the copyright sections. The content of this material has been
modified for teaching purposes only, and specifically to instruct the subject:
Introduction to Logistics & Supply Chain Management.
The Authorized Entity to Use this Material is Solely to:
Duy Tan University, Da Nang, Vietnam.

The course is dedicated for the undergraduate level/ program.

 Copyrights
Any other party wishing to access this POWERPOINT PRESENTATION;
s/he, must require the information directly by e-mail to:

Dr. Luis M. Alfaro

Director of Ports, Logistics and SCM
The Honors Program
Duy Tan University
254 Nguyen Van Linh St. Danang, Vietnam
T: (+84) 236.365.0403 (Ext. 606) - (+84) 236.382.7111
E: luisdtusci@gmail.com │ alfaroluisalfredo@dtu.edu.vn
W: https://duytan.edu.vn
Chapter Outline

The Supply Chain Revolution 1

4 Supply Chain Definitions and Activities

Why Integration Creates Value 2

Integrative Management
5 and
Generalized Supply Chain Model Supply Chain Processes
and
Supply Chain Applications
3
6 Supply Chain Value Proposition
Chapter Outline

Responsiveness 7
10 Summary

Globalization 8
11 Study Questions

Industry Disruptors 9
12 Challenge Questions
SUPPLY CHAIN VALUE PROPOSITION

Value Proposition Some Facts

A value proposition refers focused on providing the

to the combination of desired service objective
products and services at a minimum cost,
provided to customers and today’s value proposition
consumers by the supply is substantially more
chain complex. EERS MODEL
SUPPLY CHAIN VALUE PROPOSITION

Figure 1.2 EERS Value Diamond

 SUPPLY CHAIN DEFINITIONS AND ACTIVITIES

EFFECTIVENESS EFFICIENCY RELEVANCY SUSTAINABILITY

Deliver products in a The ability to deliver To be able to react to To reconfigure the supply
timely manner to the products at the minimum changes in the chain to enhance both the
consumer’s desired total cost, including raw environment, market environment and the firm
location material acquisition, place, or consumer
manufacturing, storage, requirements
inventory, and
transportation
 RESPONSIVENESS

A fundamental paradigm shift in strategic thinking occurred as a direct impact of information technology

Anticipatory (PUSH)
The Traditional Model 01
Responsive (PULL)
The emerging time-based
02 Business Model

Responsive Business Model

It is also is also referred to as 03
demand driven
RESPONSIVENESS

Figure 1.3 Anticipatory Business Model

The typical manufacturer produced products based on market forecast. Likewise,

wholesalers, distributors, and retailers purchased inventory based on their unique forecasts
and promotional plans.
RESPONSIVENESS

Figure 1.4 Responsive Business Model

The primary difference between modern responsive operations and traditional

build-to-order are the time to execute and the degree of potential customization

The greatest barrier to adopting responsive arrangements is the need for publicly
held corporations to maintain planned quarterly profits

A second barrier to implementing responsive operations is the need to establish

and sustain collaborative relationships.
GLOBALIZATION

GLOBAL DEMAND

A conservative estimate is that as

much as 90 percent of global demand
is not fully satisfied by local supply.

GLOBAL MARKET

It is conducting import and export

operations
 GLOBALIZATION

LOGISTICS INTERNATIONALIZATION

The concept involves four significant

differences in comparison to national or even
regional operations: DISTANCE,
DOCUMENTATION, DIVERSITY AND DEMAND

Finally, 21st-century commerce is conducted within a constant threat of terrorism, which requires
increased security. The intensity and severity of terrorist disruption involves both the shipment itself
and the exposure to using the logistics infrastructure as a means to deliver explosive and chemical
devices. The security aspects of global logistics are further discussed. It is important to understand
that successfully going supply chain global requires mastering the associated logistical challenges.
 INDUSTRY DISRUPTORS

CONSUMER REQUIREMENTS
(1) “want it now” mentality, (2)
personalization, (3) millennial
preferences, (4) omni-channel 01
shopping, and (5) aging consumer
needs. TECHNOLOGY ADOPTION

FLEXIBILITY 03 02 (1)
vehicles
autonomous
and the
The combination of the increasing Internet of Things (IoT),
flexibility and responsiveness on (2) artificial intelligence,
(3) “Uberization,” (4) 3D
the part of consumers places
printing, (5) big data,
increasing demands on supply and (6) alternative
chain design and operations. fuels.
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ALL RIGHTS ARE BELONG TO:

DR. LUIS ALFARO
DIRECTOR OF DEPARTMENT: PORTS, LOGISTICS AND SCM
DUY TAN UNIVERSITY, DA NANG, VIETNAM