Professional Documents
Culture Documents
BUS M&L 650: Professor Blackwell May 24, 2004 Thomas Goldsby, Ph.D.
Asst. Professor of Marketing and Logistics
Session Objectives
To understand the basics of logistics; To review the interrelationship between marketing and logistics; To examine logistics role in supply chain management; To gain insight into the work of the logistician (logistics professional); and To review the learning opportunities available in Transportation and Logistics at OSU.
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Production
Materials Management Physical Distribution
Logistics is the movement and storage of inventories (raw materials, work-in-process, finished goods, and consumed/scrap materials) throughout the supply chain
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A Bill of Rights
Logistics embodies the effort to deliver:
the right product in the right quantity in the right condition to the right place at the right time for the right customer at the right cost
SERVICE (effectiveness)
COST (efficiency)
DEMAND SATISFACTION
Price
Promotion
Place Customer Service Levels Inventory Management Transportation Management Warehousing Management
Procurement
Logistics
Marketing
Douglas M. Lambert
Place/customer service levels Customer service (lost sales) Parts & service support Returns goods handling
Inventory carrying cost Opportunity cost of inventory Insurance and taxes Obsolescence and loss
Warehousing costs Warehousing and storage Plant and warehouse site selection
Order processing and information costs Order processing Information exchange Demand forecasting/planning
Copyright 2001, Thomas J. Goldsby, all rights reserved
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Transportation cost
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Logistics costs represent 5 - 40% of the total (landed) cost of typical products
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SCM Processes
Information Flow
Tier 2 Supplier Tier 1 Supplier Purchasing Production Logistics Marketing & Sales Customer Consumer
PRODUCT FLOW
R&D
Finance
CUSTOMER RELATIONSHIP MANAGEMENT CUSTOMER SERVICE MANAGEMENT DEMAND MANAGEMENT ORDER FULFILLMENT MANUFACTURING FLOW MANAGEMENT SUPPLIER RELATIONSHP MANAGEMENT PRODUCT DEVELOPMENT AND COMMERCIALIZATION RETURNS MANAGEMENT
Source: Adapted from Keely L. Croxton, Sebastin J. Garca-Dastugue, Douglas M. Lambert and Dale S. Rogers, "Supply Chain Management Processes, The International Journal of Logistics Management, Vol. 12, No. 2 (2001), p. 14.
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1 2 n 1 1
Initial Suppliers
1 n 1 2 3 n 1 n n 3 n 2 2
1 n
1 2 n
Focal Company
Consumers/End-customers
Logistics professionals are gaining unprecedented stature in their organizations No longer uncommon for a logistician to become chief executive particularly by way of leadership in supply chain management
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Potential Employers
Manufacturing firms Retailers, Wholesalers & Distributors Service institutions (restaurants, hospitals, etc.) Passenger & Freight transportation companies Third-party logistics organizations Consulting firms Government
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Location: Schoenbaum Hall (2nd floor) Need not be a T&L major nor TLA member to attend meetings TLA website:
www.osutla.com
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