Study guide for 3380 Quiz 2 Procurement first slide set Relationships Some of the cost relationships associated with logistics Inventory carrying costs Lot quantity costs Order processing and info costs Transportation costs Warehousing costs A partnership is a tailored business relationship based on mutual trust and doing things that benefit each other Why do it To gain advantages How to choose a partner Bottleneck Supply quality and continuity Routine Simplicity efficiency Strategic BEST develop long term relationships Leverage cost saving and maximization Facilitators Supportive environmental factors that enhance partnership growth then Drivers compelling reasons to partner Then drivers set expectations of outcomes the extent to which performance meets expectations Driver examples Improvement in asset cost efficiencies Improved customer service Enhanced marketing advantage Profit growth stability Stronger drivers mean better chance of partnership happening Facilitators examples Corporate compatibility compatible management philosophy and techniques a strong perspective of mutuality symmetry between 2 parties shared competitors close physical proximity potential for exclusivity prior relationship experience shared end users Also a conservative company may not mesh well with a more liberal one Partnership levels Type I components are present at a low level Type II components are present at a medium level Type III components are present at a high level Study guide for 3380 Quiz 2 DRIVER POINTS 8 11 Points 12 15 Points 16 24 Points 8 11 Points 12 15 Points 16 25 Points Arm s Length Type I Type II Type I Type II Type III Type II Type III Type III Supply chain management Many rename logistics programs to supply chain A supply chain why it s a good name a network of companies every company in the network gains its revenue based on demand at the points of consumption thus every organization is a supplier to the end points of consumption the flow of everything from start to finish supplier manufacturer wholesaler distributer retailer customer Logistics Outsourcing Study guide for 3380 Quiz 2 3PL is a 3rd party logistics provider The relationship between a shipper and an external organization that performs the shippers logistics functions Companies outsource logistics because they don t view it as a core activity Main thing for logistics management is to manage product availability There s planning and LT of locations and capacity setting up the facilities hiring the people execution Range of technology used in them purchasing the shit ST production inventory and transportation plans manage that shit Typical logistics outsourcing services are Warehousing services value added warehouse services transportation services Top drivers for logistics outsourcing Relationship and trust operational excellence talent right people The major issues in supply chain are capacity issues storage consistency because customers are all over the world challenged by picky customers Effects when the economy goes to shit Smaller more frequent orders customers have higher delivery expectations Customers get picky Mature vs emerging markets Emerging markets are different Supply Chain Management II Stuff is getting more complex in many categories Network growing number of nodes and links outsourcing makes shit more complex more susceptible to risk Process whim wham development changing requirements Range new products being put into place Product choice of materials components also a lack of consistency Customer customized solutions for different people customer service Supplier all the new relationships can get complicated connected to product range and network Organizational managing and the different layers Information large amounts available bad info can hurt all processes 2 models SCOR and GSCF GSCF is everything SCOR is focused on logistics operations and procurement Future scenarios for supply chains Study guide for 3380 Quiz 2 Untamed economy the collapse Mega cities Customized lifestyles 3D printer and stuff Paralyzing protectionism no trust nationalism Global resilience high level consumption and we run out of resources so goal is to survive