SCM 3301 1st EditionFinal Exam Study Guide Lectures: 19-251. Definition of LogisticsPlanning, Implementing, Controllingo Movement from suppliers to customerso Movement from customers to supplierso Storage of goods in the Supply Chain2. Difference between time and place utilityo Time utility-products delivered at the right timeo Place utility-products delivered to right place3. Various types of carriers- Common Carrierso Offer transportation services to all shippers at published rates, between designated locations- Contract Carrierso Serve specific customers under contractural agreements- Exempt Carrierso Carriers that are exempt from regulation if they transport certain products- Private Carrierso Carriers who transport goods from the company owning the carrier4. TWO QUESTIONS: Acronyms: LTL, TL, 3PLLTL: Less than truckloadTL: Truckload3PL: Third party logistics5. TWO QUESTIONS: Modes of Transportation- Motor Carrierso LTL vs. TL vs. CLo General Freight vs. Specialized (LNG, Chemicals, etc.)- Rail Carrierso Trailer on Flatcar: Container Moved by Railo RTLS (Real-time Location System): RFID- Air Carriers: Speed vs. Cost- Water Carriers: Deep-sea Container Ships- Pipeline Carriers: Move petrochemicals- Intermodal: Truck, Ship, & Rail6. Intermodal TransportationIntermodal: Truck, Ship, & Rail7. Crossdocking (Break-bulk, repackage)Distribution Centers (DCs)8. Types of WarehousesConsolidation Warehouses (LTL to TL)Private Warehouses (Wal-Mart DCs)Public Warehouses9. Differences between decentralized/centralized warehousesIncreasing the number of warehouses:- Known as Decentralized Warehousing (vs Centralized)- Advantages:o Increased responsivenesso Increased service levelso Outbound transportation costs decrease- Disadvantages:o Increased inventory costso Increased operating and managemento Risk of warehouse supplier service distributions10. Risk PoolingRisk Pooling (Centralized): Relationship between # warehouses, inventories, and customer service.11. Reverse Logistics- Reverse Logistics (Returns Management)12. CRM: Customer Relationship Management- What is Customer Relationship Management?o Building and maintaining profitable long-term customer relationships.- Importance of CRM:o Organizational Longevity: Cost of New vs. Existing Customerso Information Flow Across the Supply Chain: The Entire Supply Chain Must Meet End Customer Expectationso Improve Capability to Meet Customer Expectations/Needs: Successful CRM: 50% People, 30% Process, 20% Technology- Challenges of CRM as Customer Base Increases:o Customer based gets more diverse, so their needs get more diverse.o Our supply chain must get more responsive to this diversity.13. TWO QUESTIONS: Types of factories- 6 types- Offshore Factoryo Manufactures products at low cost with minimal technical and managerial resources- Source Factoryo Manufactures products at low cost but with skilled workers and significant managerial resources- Server Factoryo Factory set up to take advantage of government incentives, reduce taxes/tariff barriers to meet regional needs.- Contributor Factoryo Focused on product development and engineering for products that they manufacturer.- Outpost Factoryo Factory set up in an area with an abundance of advance suppliers, competitors, research facilities, etc.- Lead Factoryo Source of product and process innovation and competitive advantage across the entire organization (World-Class)Notes: Factories can evolve several of these categories over the decades.14. Review facility location techniques- Weighted Factor Rating Modelo Access to markets, labor issues, access to suppliers, utility availability (costs), QOL, right-to-work, land, etc.o Criteria are weightedo Criteria are measuredo Multiply the measures by the weights- Break-Even Modelo When fixed and variable costs can be determined- Both Qualitative and Quantitative measures should be considered15. Business ClusterResearch parks and special economic/industrial zonesInterconnected companies in a particular field (co-location). Variant of JIT Supplier Co-Location.16. Supply Chain Integration Model1. Identify Critical Supply Chain Trading Partnersa. These are key partners who will eventually enable the successful sale and delivery of end products to end customers (Supplier Evaluation and Development).2. Review and Establish Supply Chain Strategiesa. Porter’s Generic Strategies: Cost or Differentiation3. Align Supply Chain Strategies with Key Supply Chain Process Objectivesa. If a firm differentiates itself based on quality, then the key supply chain process objectives must align with the strategic objective.4. Develop Internal Performance Measures for Key Process Effectivenessa. Procedures and metrics must be in place to measure performance.5. Assess and Improve Internal Integration of Key Supply Chain Processesa. Measure and improve the key processes 6. Develop Supply Chain Performance Measures for the Key Processesa. Develop external performance measures to monitor links with key trading partners.7. Assess and Improve External Process Integration and Supply Chain Performancea. Rationalize poor performing suppliers, help improve better suppliers8. Extend Process Integration to Second-Tier Supply Chain Partners9. Re-evaluate the Integration Model Annually17. 8 Key Supply Chain Processes Customer Relationship Management Customer Service Management Demand Management Order Fulfillment Manufacturing Flow Management Supplier Relationship Management Product Development and Commercialization Returns Management18. The Silo MentalityActing only in regard to a single department within the firm or a single firm with the supply chain (local optimization)19. The Bullwhip Effect Indication (Symptoms)o Poor Capacity Planning Supply/Demand Integration (Balance)o Excess Inventory High inventory Carry Costs/Low Turnovero Stock-outs Low Customer Service Levelso Excess Supply Chain Costs Demand Forecast Updatingo Order variability creates variability in forecastso Solutions: CPFR, Vendor Managed Inventory (VMI) Order Batchingo Artificial batching of orders creates additional variation (end-of-quarter) Price Fluctuationso Sales create artificial demand variability Rationing and Shortage Gamingo Rationing of product inflates subsequent orders20. Shortage Gaming Rationing and Shortage Gamingo Rationing of product inflates subsequent orders21. Stockpiling Managing Supply Chain Risko Increase safety stocks and