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Lecture-1 Understanding Logistics and SCM-2.v1 (1) - 1
Lecture-1 Understanding Logistics and SCM-2.v1 (1) - 1
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
3 25/12/22
Module
Overview
4 25/12/22
Module Aim:
5 25/12/22
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.
Do your reading
• Textbooks; Lecture notes; Other sources
12 25/12/22
Assessment
13 25/12/22
Assessment 1
• Group presentation & Report 70% weighting
– Group presentation 30% percent
– Group report 40% percent
14 25/12/22
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.
15 25/12/22
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.
16 25/12/22
Assessment 2
• MCQ 30% weighting
17 25/12/22
Useful Resources
• Use “Summon” (
http://bradford.summon.serialssolutions.com/#!/)
18 25/12/22
Avoid Plagiarism!!
Click on “Login
• Avoiding plagiarism with Office 365
Account”
• Turnitin Reports
19 25/12/22
Introduction: Understanding Logistics
& Supply Chain Management
20 25/12/22
Logistics and
Supply Chain
Management
Introduction
21 25/12/22
Learning Outcomes
22 25/12/22
What is “Logistics”?
Originally…
23 25/12/22
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*)
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.:
SCM
Logistics
27 25/12/22
What is a
Supply
Chain?
28 25/12/22
What is a “Supply Chain”?
It consists of ALL parties/stages involved in fulfilling a
customer request.
Suppliers Manufacturers
Distributors/Wholesalers
Retailers
Customers
29 25/12/22
Supply Chains in Reality
30 25/12/22
Supply Chains in Reality
31 25/12/22
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)
32 25/12/22
“The three flows in a supply chain”
The Three Flows in a Supply Chain
Information
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
33 25/12/22
The Goal of
SCM
34 25/12/22
What is the Goal of Supply Chain
Management?
1) Satisfy customer needs whilst 2) generating profit for
a SC.
35 25/12/22
What is the Goal of Supply Chain
Management? (in detail)
• Maximise the net value or “supply chain surplus”
generated.
Supply chain profitability is total profit to be shared across all stages of the supply
chain
36 25/12/22
What is the Goal of Supply Chain
Management? (in detail)
• Maximise the net value or “supply chain surplus”
generated.
Price + satisfaction
Supply chain surplus focuses on the value of the final product to the customer.
37 25/12/22
Customer Value
Customer value is different from one customer to the other.
• Speed of delivery
• Price of products/services
• Quality of products/services
• Origins of source/suppliers
• Reputation of the company
38 25/12/22
SC Surplus vs. SC Profitability
39 25/12/22
The Importance of Supply Chain
Decisions
1993 – 2006
Dell’s significant growth:
• Selling PCs directly to end users (no distributors
or retailers)
40 25/12/22
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
41 25/12/22
The Importance of Supply Chain
Decisions
Supply chain strategy or design
– Time horizon: next several years
– Expensive to alter
42 25/12/22
Process
Views of a
Supply
Chain
43 25/12/22
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.
44 25/12/22
Cycle View of Supply Chain Processes
4 Cycles 5 Stages
Occur between
45 25/12/22
Cycle View of Supply Chain Processes
46 25/12/22
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
47 25/12/22
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.
48 25/12/22
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.
49 25/12/22
PushView
50 25/12/22
Pull View
51 25/12/22
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
52 25/12/22
Any thoughts? Questions?
Observations?
53 25/12/22