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OIM 7501-B

Emerging Issues in Logistics and


Supply Chain Management

Ebru SURUCU BALCI, PhD


e.balci@bradford.ac.uk
Module Leader – OIM7501-B
Assistant Professor in Circular Supply Chain and Data Analytics

School of Management
Faculty of Management, Law and Social Sciences
University of Bradford, United Kingdom

1 25/12/22
Dr Ebru SURUCU BALCI:
Role:
• Assistant Professor in Circular Supply
Chains and Data Analytics
• Director of International Relations

Research Interests:
• Circular Food Supply Chains
• Digitalization of Transport and Logistic
Services
• Social Media Engagement
• Decarbonisation of the supply chains

Sunday 25 Decem
ber 2022
Lecture Outline

Module Overview
• What you are expected to do
• Module structure
• Assignment details

Introduction: Logistics and Supply Chain Management

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Module
Overview

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Module Aim:

• To understand key activities of Logistics and Supply


Chain Management

• To critically evaluate contemporary and emerging


issues in Logistics and Supply Chain Management

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Learning Outcomes:
• Evaluate a range of theories, frameworks and principles relating
to contemporary supply chain issues, adopt and, as necessary,
adapt these to evaluate and develop global supply networks.

• Critically analyse current trends in Logistics and Supply Chain


Management.

• Undertake personal research to support the evaluation of


organisational problems and provide grounded recommendations.

• Develop a range of leadership, management and IT-related skills


and behaviours including individual, interpersonal and team-
based skills.
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Core & Recommended books

Chopra, S. (2019) Supply Chain


Ivanov, D. (2021) Introduction to
Management: Strategy, Planning, and
Supply Chain Resilience (1st ed.),
Operation (7th ed.), Harlow, England,
Berlin, Germany, Springer.
Pearson
John Mangan, J. and Lalwani, C.
(2016) Global logistics and
supply chain management (3rd
7 25/12/22 ed.), Chichester, West Sussex,
Wiley.
Sunday 25 Decem
ber 2022
Sunday 25 Decem
ber 2022
Sunday 25 Decem
ber 2022
What you are expected to do
A lot of independent study!
• Lectures - 24 hrs
• Seminars – 10 hrs
• Direct study – 166 hrs!  83% of 200 hrs!

Learner Support Hours:


Thursday 11:00 to 12:00,
Friday 13:00 to 14:00

Do your reading 
• Textbooks; Lecture notes; Other sources

Don’t forget to check:


• Module Handbook
• Assignment Instructions
• Canvas frequently
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Create groups of five!
• For group presentations

• Please email me (e.balci@bradford.ac.uk


) your group members’
– Name
– Surname
– UB number
– E-mail
– Seminar session name
no later than Friday 21st October 2022.

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Assessment

13 25/12/22
Assessment 1
• Group presentation & Report  70% weighting
– Group presentation  30% percent
– Group report  40% percent

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Assessment 1
• Group presentation  30%
• A presentation will be delivered approximately 12 to
13 minutes. It will be followed by Q & A
• In total, 15 minutes
• Each group member is to present him/herself and
slides.
• One student from each group to upload:
i. PowerPoint presentation file onto Canvas submission
box.

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Assessment 1
• Group report  40%
• 3,000-word GROUP coursework (excl. title page,
contents page, appendix, and bibliography)
• Use Times New Roman 12-point font and 1.5 line
spacing
• Use the Harvard referencing (
https://www.bradford.ac.uk/library/find-out-about/r
eferencing/
)
• State the actual word count on the front page.

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Assessment 2
• MCQ  30% weighting

• 25 multiple choice questions

• Exam Date: 19 January 2023

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Useful Resources

• Use “Summon” (
http://bradford.summon.serialssolutions.com/#!/)

• Use the Harvard Referencing:


https://www.bradford.ac.uk/library/find-out-about/re
ferencing/

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Avoid Plagiarism!!
Click on “Login
• Avoiding plagiarism with Office 365
Account”

• Turnitin Reports

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Introduction: Understanding Logistics
& Supply Chain Management

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Logistics and
Supply Chain
Management

Introduction

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Learning Outcomes

To understand and explore:


• Differences between logistics and supply chain
management
• The three flows in a supply chain
• The fundamental purpose of any supply chain
• Three key supply chain decision phases
• The cycle and push/pull views

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What is “Logistics”?
Originally…

“[T]he branch of military


science relating to
procuring, maintaining and
transporting material,
personnel and facilities”
(Oxford English Dictionary)

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What is “Logistics”?
Now in non-militaristic areas…
“[T]he process of planning, implementing, and controlling
procedures for the efficient and effective transportation and
storage of goods including services, and related information from
the point of origin to the point of consumption for the purpose of
conforming to customer requirements. This…includes inbound,
outbound, internal and external movements”
(Mangan & Lalwani, 2016, p9*)

Inbound Outbound
Suppliers Distributors/ Retailers Customers
Manufacturing
wholesalers

24 25/12/22 *Mangan, J. and Lalwani, C. (2016) Global Logistics and Supply Chain Management
(3rd ed.), Chichester, West Sussex : Wiley.
What is “Supply Chain Management”?
“Supply chain management (SCM) is the management, across and
within a network of upstream and downstream organisations, of both
relationships and flows of material, information and resources. The
purposes of SCM are to create value, enhance efficiency, and satisfy
customers” (Mangan & Lalwani, 2016, p11*)

Upstream Distributors/ Retailers Customers Downstream


Suppliers Manufacturing
wholesalers

Material (Products) | Information | Resources (Funds, capital)

25 25/12/22 *Mangan, J. and Lalwani, C. (2016) Global Logistics and Supply Chain Management
(3rd ed.), Chichester, West Sussex : Wiley.
SCM Functions
A wide variety of activities are involved e.g.:

• Receiving and filling a customer request


• Developing new products,
• Marketing,
• Operations,
• Distribution,
• Finance,
• Customer service.
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“Logistics” vs. “SCM”?
“Logistics is part of SCM; SCM is a much wider,
intercompany boundary-spanning concept, than is the
case with logistics”
(Mangan & Lalwani, 2016, p13)

SCM

Logistics

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What is a
Supply
Chain?

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What is a “Supply Chain”?
It consists of ALL parties/stages involved in fulfilling a
customer request.
Suppliers Manufacturers

Distributors/Wholesalers

Retailers

Customers

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Supply Chains in Reality

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Supply Chains in Reality

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The Three Flows in a Supply Chain
A supply chain involves a constant flow of:

1. Information
2. Product
3. Funds
(customer is the only
source of funds)

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“The three flows in a supply chain”
The Three Flows in a Supply Chain
Information

Suppliers Product Manufacturers

Funds

In

Pr
fo

Fu
od
rm

nd
u
a

ct
tio

s
n
Distributors/Wholesalers

n
a tio
orm
Inf
t
duc
Information o
Pr
s
Costumers Product Retailers u nd
F

Funds

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The Goal of
SCM

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What is the Goal of Supply Chain
Management?
1) Satisfy customer needs whilst 2) generating profit for
a SC.

“Successful” Supply Chain Management

Structure & manage the three flows (i.e. information,


product, funds) to meet customer needs in a cost
effective manner.

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What is the Goal of Supply Chain
Management? (in detail)
• Maximise the net value or “supply chain surplus”
generated.

Supply Chain Surplus ≠ Supply Chain Profitability

Supply Chain Profitability = Price customers pay - Supply Chain Cost

Supply chain profitability is total profit to be shared across all stages of the supply
chain

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What is the Goal of Supply Chain
Management? (in detail)
• Maximise the net value or “supply chain surplus”
generated.

Supply Chain “Surplus” = Customer Value - Supply Chain Cost

Price + satisfaction

Supply chain surplus focuses on the value of the final product to the customer.

• Satisfied customers will come back  higher profit


• Dissatisfied customers will not come back  loss of profit

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Customer Value
Customer value is different from one customer to the other.

Factors that could affect customer values  depends on what each


customer values:

• Speed of delivery
• Price of products/services
• Quality of products/services
• Origins of source/suppliers
• Reputation of the company

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SC Surplus vs. SC Profitability

The success of a SC should be measured in terms of


“Supply Chain Surplus” instead of “Supply Chain Profitability”.

 Focusing on profitability at individual SC stages may


lead to a reduction in overall Supply Chain Surplus…

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The Importance of Supply Chain
Decisions
1993 – 2006
Dell’s significant growth:
• Selling PCs directly to end users (no distributors
or retailers)

• Final assembly began when the customer order


arrived  Wide variety of PC configurations & low
levels of components inventories

Suppliers Manufacturing Distributors Retailers Customers

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The Importance of Supply Chain
Decisions
Dell’s significant challenges:
• Change in customers’ taste from highly customised
PCs to lower levels of customisation  Rapid
development of PC hardware performance

Dell’s reaction
• Started to sell PCs through retailers & direct selling
• Outsourced the large proportion of its assembly to
low-cost locations

Suppliers Manufacturing Distributors Retailers Customers

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The Importance of Supply Chain
Decisions
Supply chain strategy or design
– Time horizon: next several years
– Expensive to alter

Supply chain planning


– Time horizon: a quarter to a year

Supply chain operation


– Time horizon: weekly or daily

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Process
Views of a
Supply
Chain

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Process Views of a Supply Chain
1. Cycle View: A series of cycles, each performed at the interface
between two successive stages of the supply chain.

2. Push/Pull View:
– Pull processes: initiated by a customer order
– Push processes: initiated and performed in anticipation of
customer orders.

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Cycle View of Supply Chain Processes

4 Cycles 5 Stages
Occur between

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Cycle View of Supply Chain Processes

Within each cycle,


we have six sub-
processes…

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Six sub-processes within each “cycle”

• Customers return products back to retailers they are not happy with.
• Retailers return recyclable/reusable parts back to manufacturer through
distributors
• Recall of faulty products by manufacturers

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Six sub-processes within each “cycle”
• In each cycle, the goal of the buyer is to ensure
product availability for its customers and to achieve
economies of scale in ordering.

• Few differences among the cycles:


– In the customer order cycle, demand is uncertain;
while in other cycles, order placement is uncertain
yet can be projected based on forecast
– Scale of order is different

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Push/Pull View of Supply Chain Processes
Push View/Process
• Forecast customers’ demand/needs
• Customer demand is unknown/unpredictable.

Pull View/Process
• React to customers’ demand/needs
• Customer demand is known/predictable.

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PushView

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Pull View

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Concepts learned today:
• Logistics
• Supply Chain
• Three flows in a supply chain
• Information
• Product
• Funds
• Supply chain profitability
• Supply chain surplus
• Customer value
• Decision phases in supply chain
• Cycle view
• Push/pull view
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Any thoughts? Questions?
Observations?

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