GLOBAL LOGISTICS

53-533-03
COURSE 6
MBA Session 06 / 2005
© J.C. MERKLY
Course 6 Outline

 Review case Obermeyer

 Distribution
– Distribution and Logistics - Key elements
• Fourth P - Know-how
• Customer’s satisfaction - Service
• International variables

 STRATEGIC PLANNING
 PARTNERSHIPS AND LOGISTICS

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SPORT OBERMEYER - CASE

1. What is the situation? What is the main

problem facing Wally? Explain AND justify.
2 Logistics play a major role in the delivery
cycle. What are the most important points?
Define, explain their impacts AND justify your
assessment.

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SPORT OBERMEYER - CASE

n Based on your analysis what are the logistics

elements, upstream and downstream, over the short
and medium term, that Obermeyer’s management
should consider and study regarding the Chinese Lo
Village and Hong Kong sources?
n Analyse, review and justify.

n 4. Regarding the clothing manufacture, and logistics

planning, do you have remarks to make? ……

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SPORT OBERMEYER - CASE

n What would be your recommendations to Wally to

n optimize the logistics elements?

 Define these elements, analyse and explain and
justify
 your recommendations.

 PRESENT YOUR VIEWS,

 DEFEND YOUR RECOMMENDATIONS.

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DISTRIBUTION and LOGISTICS

 DOWNSTREAM OPERATIONS
FLOW TOWARD THE CLIENT

– TRANSPORTATION
– STORAGE / INVENTORIES
– BILLING / COLLECTION
– ADMINISTRATION
– CLIENT SERVICE

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DISTRIBUTION and LOGISTICS (2)

 OPERATIONS TOWARD THE FIRM

 FLOW ORIGINATING FROM THE CLIENT

– FINANCIAL - PAYMENT - FXCHANGE

– DEMAND ESTIMATION
– AFTER SALE SERVICE / REPAIRS
– ADMINISTRATION
– REVERSE LOGISTICS
• Used items (end of useful life)
• Manufacturing scrap / rejects

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DISTRIBUTION and LOGISTICS (3)

 OBJECTIVES - MARKETING « 4th P » « PULL »

– DEFINITIONS
– CUSTOMER’S SATISFACTION (OPTIMUM COST)
– OPTIMUM PRODUCT-MIX
– CLIENT FIDELISATION

 INFORMATION

– DEMAND ESTIMATION
– MARKETING INFORMATION SYSTEMS

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DISTRIBUTION and LOGISTICS (4)

 CLIENT’S SATISFACTION
– ELEMENTS - PRODUCT
- AVAILABILITY

– PRODUCT DEFINITION
– AVAILABILITY DEFINITIONS

 CLIENT SERVICE

– CLIENT’S STANDPOINT
– HOW TO MEASURE (INTERNATIONAL)

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PHYSICAL DISTRIBUTION

MAIN FACTORS

PRODUCTS and PRODUCTS’ RANGE

– Product : Physical Definition
– Range width (modifications / location)
– Packing

PHYSICAL DISTRIBUTION CHANNELS

– Length
– Width
– Numbers

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PHYSICAL DISTRIBUTION (2)

SERVICE
INTERNATIONAL CONTEXT
Multiple variables - Firm’s policy
Logistics - Importance
Distance Factor
Time Factor
Information - bi-directional
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PHYSICAL DISTRIBUTION PLAN

 AUDIT Internal AND external

 UNDERSTAND THE NEEDS : EACH MARKET
– Clients’ needs, identification (service) - Trade offs
• Clients, service elements identification
• Relative importance determination
• Segments grouping
– Clients’ service objectives definition
– Logistics system conception

INVENTORIES’ INCREASE : NOT THE SOLUTION0

Cost : Difficult to determine (uncertain data)
Pareto (80/20) + “geography”
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PHYSICAL DISTRIBUTION PLAN (4)

 STRATEGIC PLANNING

– Corporate strategies and marketing plan

– Customers’ service
– Total associated costs
– Identification of critical elements / variables

 PLAN DEVELOPMENT - IMPLEMENTATION

– Benchmarking and control

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PHYSICAL DISTRIBUTION (1)

 DISTANCE - ELEMENTS
– SURFACE
• LAND
• MARITIME / CANALS
– AIR

 FLOW - PERMANENT
- SEASONAL

 IMPORTANCE / Volume - Income generation

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PHYSICAL DISTRIBUTION (2)

 TIME FACTOR

 AUDIT
 « CASH TO CASH » - REQUIRED TIME :

ACQUISITION FROMTHIRD PARTY Funds Flow > exterior

and

SALE TO A THIRD PARTY Funds Flow > Interior)

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PHYSICAL DISTRIBUTION (3)

 INTEGRATED LOGISTICS

 Physical Logistics
 Related Activities :
– Information (upstream- downstream)
– Orders follow-up
– Storage - Packing / conditionning
– Product localisation
– Customs clearance / Documentation

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PARTNERSHIPS and LOGISTICS

 QUICK REVIEW

– Agency / Distributorship
– Strategic alliance
– Joint-venture
– Consortium

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MBA GLOBAL LOGISTICS 2005

 Thanks for your attention, your interest

and
your contributions to this presentation

GOOD LUCK

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