• Component consolidation
• Re-source to low cost countries
• Request For Quotations (RFQ)
• Supplier cost breakdown analysis
• Function analysis / Value analysis / Value engineering
• Design For Manufacture / Design For Assembly
• Reverse costing
• Cost driver analysis
• Should cost
• Product bench-marking
• Design to cost
• Design workshops with suppliers
• Competitor bench-marking
2) Maximize Customer Service
- Customer-satisfaction/7R
- Feedback
- Market Research
- Front-line Personnel
- Strategic Activities
3) Maximize Profit
The business firm is the productive unit in an exchange economy. In order to survive, a firm must deal with three constraints: the demand for its product, the production function, and the supply of its inputs. When the firm successfully deals with these constraints, it makes a profit.
These readings explore the assumption that firms maximize profits, pointing out some of the ambiguities of this assumption. It then explores how the rules of maximization apply to the firm. It considers two ways in which the maximization principle can be used: to determine the proper levels of inputs or to determine the proper level of output. The first leads to the rule that marginal resource cost should equal marginal revenue product, and the second to the rule that marginal cost should equal marginal revenue. The readings show that these two rules are equivalent and simply represented different ways of using the information from the three constraints that a firm faces.
Much of this material is quite technical, but it is at the core of microeconomics. The unit closes with a section that shows how this theory can help critique proposals that sound good, but that are flawed because they ignore the theory developed in this unit.
5) Market Service Expanding
When we have success in domestic market and company become larger. To be more success we expending to internationally. That will give us a lot of profit and advantages to the company.
1) Supply Chain according to the Council of Logistics Management (CLM) is about planning, implementing, and controlling the effective and efficient movement of raw material, work in process, and finished goods from supplier to customer.
Answer: FALSE
Supply chain is all activities associated with the flow and transformations of goods from the raw material stage through to the end user to achieve a sustainable competitive advantages.
1) List four(4) primary and secondary logistics activities?
Primary activities
|
Secondary activities
|
Customer service
|
Warehousing
|
Transportation
|
Material handling
|
Inventory management
|
Purchasing
|
Information flows and order processing
|
Protective packaging designed
|
2) What are the key differences between Logistics and Supply Chain?
Answers :
1) Logistics and Supply Chain functions can overlap. Different companies define them in their own ways. Logistics is generally concerned with strategy and coordination of flows between marketing and production (i.e. transportation and distribution). However, it cuts across many functions such as Supply Chain.
I believe that Supply Chain tends to focus on purchasing and procurement, but not necessarily so. It can include materials, inventory, and production planning. There is also Demand Management which focuses on forecasting, but is sometimes included in either logistics or supply chain functions.
I think there is no formal definition that fits all situations. I recently took a graduate school class, and our textbook put Logistics as the overall strategic glue that crosses multiple functions including demand chain and supply chain, physical flows, information flows and the systems that support them.
I also worked as a Supply Chain consultant for J.D. Edwards and on SAP; however, they put the focus on Supply Chain, not much on Logistics. Personally, I think it there is a matrix relationship between them. It is up to each company to decide what emphasis works best for their goals.
2) The Definition of Logistics
Logistics management is that part of the Supply Chain Management process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements.
These are the boundaries and relationships of Logistics Management adopted by the Council of Logistics Management: "Logistics Management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management of third party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution -- strategic, operational and tactical. Logistics Management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance and information technology."
The Definition of Supply Chain Management
Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.
These are the boundaries and relationships of Supply Chain Management adopted by the Council of Logistics Management: "Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing.
3) Simple explain four(4) importance of logistic?
Answers:
1) Customer Needs
The customers need are very important in the world of logistic. There are a few thing that a customers really need such as provide the service directly to the customer and able to get customer satisfaction.
2) Customer Value
When the customer get the satisfaction. The customer will automatically loyal with the service and customer patronage. From that the company will able to gain profit and be more success.
3) Cost Reduction
To archive logistic goal, we need reduce cost such as transportation cost. To reduce cost in the transportation we need to use consolidation and mixed strategy.
-Cost Reduction
-Maximize Customer Service
-Maximize Profit
3) Simple explain four(4) importance of logistic?
Answers:
4) Market Service Expanding
When we have success in domestic market and company become larger. To be more success we expending to internationally. That will give us a lot of profit and advantages to the company.
4) List three(3) objective of business logistic?
Answers:
-Maximize Customer Service
-Maximize Profit
1) Which one is the best describe on definition of logistics?
A. Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw material, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.
B. Logistics is the process of integration of all parties and activities associated with the flow and transformation of goods to achieve sustainable competitive advantage.
C. Logistic is the process of getting right goods or right service at the lowest cost and highest return on investment.
D. Logistic is the process of business that capable of lowering a significant portion of the cost incurred by the organization and its role now more prevalence in the strategic planning of organization.
Answer: A
2) Reasons for the importance of logistics are:
I. Cost are significant
II. Distance between supply and distribution
III. Customer service expectation are increasing
IV. Value of the seller
A. I and II only
B. I,II, and III only
C. I and III only
D. All the above
Answer: C
3) What is the main objective of business logistic?
I. Cost reduction
II. Maximize customer service
III. Maximize profit
IV. Strategic role
A. I and II only
B. I,II, and III only
C. I and III only
D. All the above
Answer: B
Answer: B
1) Customer service
Customer service has been defined as "a customer-oriented philosophy which integrates and manages all elements of the customer interlace within a predetermined optimum cost-service mix. Customer service is the output of the logistics system. It involves getting the right product to the right customer at the right place, in the right condition and at the right time, at the lowest total cost possible, Good customer service supports customer satisfaction, which is the output of the entire marketing process.
2)Traffic and transportation
A key logistics activity is to actually provide for the movement of materials and goods from point of origin to point of consumption, and perhaps to its ultimate point of disposal as well. Transportation involves selection of the mode (e.g., air, rail, water, truck, or pipeline), the routing of the shipment, assuring of compliance with regulations in the region of the country where shipment is occurring, and selection of the carrier. It is frequently the largest single cost among logistics activities.
3)Inventory management
Inventory management involves trading off the level of inventory held to achieve high customer service levels with the cost of holding inventory, including capital tied up in inventory, variable storage costs, and obsolescence. These costs can range from 14 to over 50 percent of the value of inventory on an annual basis! With high costs for items such as high-tech merchandise, automobiles, and seasonal items that rapidly be come/obsolete, many organizations, including Hewlett Packard. Xerox, and Sears, are giving inventory management much more attention.
4)Order processing
Order processing entails the systems that an organization has for getting orders from customers, checking on the status of orders and communicating to customers about them, and actually filling the order and making it available lo the customer. Part of the order processing includes checking inventory status, customer credit, invoicing, and accounts receivable. Thus, order processing is a broad, highly automated area. Because the order processing cycle is a key area of customer interface with the organization, it can have a big impact on a customer's perception of service and. therefore, satisfaction.
Short Note:
1.Customer service standards:
customer wants and needs,
customer response to service,
setting customer level
2. Transportation:
• mode and transport service selection,
• freight consolidation,
• carrier routing,
• vehicle scheduling,
• equipment selection,
• claims processing,
• rate auditing
3. Inventory management:
• raw material and finished goods
stocking policies,
• short-term sales forecasting,
• product mix at stocking points,
• number, size and location of stocking
points,
• just in time, push and pull strategies
4. Information flows and order processing
• sales order-inventory interface procedures,
• order information transmittal methods,
• ordering rules
Support/Secondary Activities:
1.Warehousing:
• space determination,
• stock layout and dock design,
• warehouse configuration
• stock placement
2. Materials handling:
• equipment selection,
• equipment replacement policies,
• order picking policies,
• stock storage and retrieval,
3. Purchasing:
• supply source selection,
• purchase timing,
• purchase quantities,
4. Protective packaging:
• design for handling,
• storage,
• protection from loss and damage,
5. Cooperation with production/operations:
• specification of aggregate quantities,
• sequence and time production output,
6. Information maintenance:
• information collection, storage, and
manipulation,
• data analysis,
• control procedures
Handfield and Nichols
Council of Logistics Management
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