Chapter 1 ->Five Major External Forces Driving the Rate of Change & Shaping our Economic, Political, and Business Landscapes :1) Globalization - Global Marketplace concept; overall, globalization has led to a more competitively intense economic and geopolitical environment;Sourcing, manufacturing, distributionQuestions companies ask: where should we set up these facilitiesNo geographic limitationsEmergence of trading blocsSupply chain challengesImportant Issues in Global EconomyMore economic and political riskShorter product life cyclesThe blurring of traditional organizational boundariesTerrorism, contamination of food supply, natural disasters, shorter product life (duplication of products)Nike outsources all of its manufacturing; Airlines and Hotels outsource their call centers;2) Technology – Faster, Bigger, More complex, More integrated; ‘information age’ provides new and unrestricted access to the ‘place’ aspect of businessEDI, RFiD, Expert Systemswe have become known as the “click here” generation, we no longer have to wait for information to be ‘pushed’ to us via the media on their schedule; we can ‘pull’ information as we need it.3) Organizational Consolidation and Power Shifts – product manufacturers became the driving force in supply chains, after WW2, they developed, designed, produced, promoted, and distributed their productsLarge retailers (walmart, Kroger, target, kmart, home depot) became powerful market leaders and engines for change;VMI (Vendor-Managed Inventory) – this service usually means that the manufacturer will manage the inventory of its products at the retailers warehouse(s) and reorder as appropriate for customer fulfillment;4) The Empowered Customer – today’s customers are more enlightened and educated, and they are empowered more than ever by the information that they have at their disposal;Customers have a tendency to have low tolerance for poor qualityThe five day service weeks from 9am to 6pm for customers is no longer acceptable; The expectation for service is frequently 24/7 availability;5) Deregulation – the deregulation of several important sectors of our economy that occurred in the 1980s and 1990s is a good example, these deregulated sectors include Transportation, Communications, and Financial Institutions, which are cornerstones of the infrastructure for most organizationsLate 70’s/Early 80’s, the U.S. Transportation Industry was deregulated at the federal level in terms of economic controls such as rates and areas of serviceThe net effect was that it became possible for transportation services to be purchased and sold in a much more competitive environmentThe results were lower prices to users and improved serviceIt became possible for carriers and shippers to negotiate and to make changes in their respective operations to allow carriers to operate more efficiently and lower their prices;New carriers entered the marketplace, in the motor carrier industry, which increased competition,Certain Sectors of transportation underwent consolidation through mergers and acquisitions : most notable were the railroads and airlines (pg13)The Financial Sector was also deregulated at the federal level; the distinctions between commercial banks, savings and loan associations, and credit unions, for example, have blurred as these institutions have been allowed to broaden their array of services.More competitive and responsive towards customer needsThe Communications Industry was also made more competitive; major cause of change was a supreme court decision to split up the AT&T/Bell Telephone system into regional companies,The Supply Chain Concept -In the 1980s, the logistics or integrated logistics management concept developed in a growing number of organizations,Logistics in its basic form added inbound logistics to the outbound logistics of physical distributionThe underlying logic of the systems or Total Cost Concept was also the rationale for logistics managementIn addition, the Value Chain Concept, was also developed as a tool for competitive analysis and strategySupply Chain Management can be viewed as a pipeline or conduit for the efficient and effective flow of products/materials, services, information, and financialsMajor Supply Chain Issues :Supply Chain Networks – companies and other organizations need a network system that is capable and flexible to respond and change with the dynamics of the marketplace whether in the short run or the long runIncreased complexity for organizations is a problem, organizations need to simplify as much as possibleInventory Deployment –Inventory being duplicated,Information – collection and storage of vast amounts of dataCost and Value – efficiency (cost) and effectiveness (value)A challenge for Supply Chains is the prevention of sub-optimizationOrganizational Relationships – tradeoffs and optimizationChapter 2 – Role of Logistics in SCMTLogistics – television, radio, print advertising, have lauded the importance of logistics; transportation companies such as DHL, UPS, FedEx, frequently refer to their organizations as logistics companies;4 Sub-Divisions of Logistics :1) Business Logistics – part of the supply chain process, that plans, implements, and controls the efficient, effective flow and storage of goods, service, and related information from point of origin to point of consumption in order to meet customer requirements2) Military Logistics – the design and integration of all aspects of support for the operational capability of the military forces and their equipment to ensure readiness, reliability, and efficiency3) Event Logistics – the network of activities, facilities, and personnel required to organize, schedule, and deploy the resources for an event to take place and to efficiently withdraw after the event4) Service Logistics – the acquisition, scheduling, and management of the facilities, assets, personnel, and materials to support and sustain a service operation or businessLogistics Definitions –Inventory – management of materials in notion and at restCustomer – getting the RIGHT PRODUCT to the RIGHT CUSTOMER, in the RIGHT QUANTITY, in the RIGHT CONDITION, at the RIGHT PLACE, at the RIGHT TIME, and at the RIGHT COST (SEVEN R’s of Logistics)Dictionary – the branch of military science having to do with procuring, maintaining, and transporting material, personnel, and facilitiesInternational Society of Logistics – the art and