EBU6609 Logistics and Supply Chain Management
Logistics and
Supply Chain
Management
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TOPIC 1: INTRODUCTION TO LOGISTICS AND
SUPPLY CHAIN MANAGEMENT
MS. BING HAN
LECTURER IN INFORMATION TECHNOLOGY MANAGEMENT, MODULE ORGANISER FOR EBU6609
EBU6609 Logistics and Supply Chain Management
About this module
◦Objectives of the module
◦Readings, online lectures and tutorials ◦Session plan
◦Assessment and coursework ◦Feedbacks & Do’s and Don’ts
Introduction to Logistics and SCM
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Ground Rules for Live Sessions
No distractions – all sessions will be recorded, please remember to mute yourself unless you’re about to speak!
Arrive on time! (Join our meeting on Teams 5 minutes earlier)
You may turn your camera on when speaking, but no unrelated chats
during/after the session
Active learning ‐ raise your ‘hand’ or ask questions via ‘Menti.com’, during the session, you can also use the Discussion Forum on QM+ after the lecture
Remember, direct emails will be ignored, except for personal matters. You can send anonymous messages to MO via module representatives.
EBU6609 Logistics and Supply Chain Management
Objectives of the module
To prepare you to become managers with the knowledge of Logistics and Supply Chain Management
You cannot be taught management, you can only learn it! We will work together to help you develop those skills by:
oIdentifying the principles and practices of contemporary Logistics and SCM
oAnalysing good and bad examples
oGiving you the chance to think and discuss about relevant SCM
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Learning Outcomes:
Apply basic theories of global supply chain management and global value chains to examine the internationalisation of production in the primary sector and its upstream supply chains
Comprehend and analyse the multidimensional nature of global supply chains: articulate how different economic and political forces and actors shape, and are shaped by, their mutual relationship structuring the chains
Demonstrate a deep understanding of the increasing global nature of production, and the critical relevance of food and natural resources industries to contemporary global business
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EBU6609 Logistics and Supply Chain Management
Transferrable Skills:
Strengthen the ability to apply theory to understand and conceptualise evidenced‐based phenomena
Develop analytical skills through independent study and group‐based research within webinar activities
Produce theoretically‐informed and evidence‐based analysis of global supply chains case‐studies
Enhance critical reading, oral and written communication
Enhance self‐organisational and group working skills
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Core Texts
◦Chopra, S. and Meindl P. (2020) Supply Chain th
Management – Strategy, Planning and Operation, 7 edition, Pearson.
◦Christopher, Martin (2016) Logistics and Supply Chain Management, 5th edition, FT . (Ebook available via QM Library, https://search.library.qmul.ac.uk/iii/encore/record/C__R b1352558__Smartin%20christopher__Orightresult__U__ X4?lang=eng&suite=def)
◦Fawcett, S.E. (2008) Supply Chain Management: from Vision to Implementation, .
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EBU6609 Logistics and Supply Chain Management
Course Webpage on QM+:
Login to QMPlus: http://qmplus.qmul.ac.uk
Use your QMUL account
Course Area: EBU6609 Logistics and Supply Chain Management 2021/22
Check it regularly, as you will find all information there, e.g. extra exercises or reading lists.
You are expected to check your QMUL email account every week, including after the teaching weeks!
You can link your QMUL email account to your BUPT account, or another account that you check regularly
Emails sent to lecturers must be only from your QMUL or BUPT student email account; emails from other accounts are ignored.
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Lecture notes and reading materials
Lecture notes are normally available a couple of days before lectures on the EBU6609 web page, in ‘Week X’ folder
Contents in the lecture notes are what you’ll be examined on. ◦ Add materials to what’s in the core text – case studies,
supplementary readings, and exercises.
◦ Update some out‐of‐date material in the book – on‐going subject.
◦ Case studies – prepare before the Tutorial session.
Also, keep an eye on our QM+ web page for new announcements and updates.
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EBU6609 Logistics and Supply Chain Management
Lectures, Webinars and Office Hours
16 lectures (live + recorded); 6 tutorials/webinars; 5 office hours; 1 revision
Lectures (2 sessions per topic; live + recorded): lectures, embedded examples & exercises, mini‐case studies
Tutorials (Case‐study based, related mostly to recorded topics)
Preparation is vital; focus more on interaction, skills building; non‐transferrable and analytical skills
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EBU6609 Logistics and Supply Chain Management
Introduction to Logistics and Supply Chain Management
Supply Chain Organisation – Process thinking
Technology in Logistics and Supply Chain
Customer Fulfilment
Order Fulfilment Cycle ‐ Purchasing, Production and Logistics
Supply Chain Mapping
Core Competencies and Outsourcing
Environmental Scanning and Global Supply Chain
Cost Management in SCM
Inventory Management
Managing Uncertainty in the Supply Chain
Operational issues in the Supply Chain
Performance Measurement in the Supply Chain
People Management
Law and Ethics in SCM
Relationship Management
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Assessment
Exam (70% of total marks)
◦ 4 essay‐type questions, ALL 4 are compulsory, 25% each
◦ More details to be given at Revision Sessions in the last teaching week
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EBU6609 Logistics and Supply Chain Management
Coursework
30% of total marks
Deliverable: A group‐based SCM analysis report
Due date: 23rd May 2022, by 5pm British Summer Time
Groups of 6, randomly allocated, please double check and meet online by 20th March
Choose a company in tech‐related sectore – declare your choice on QM+
Group dynamics: very important – resolve disputes within your groups.
Submission and other detailed instructions can be found in the ‘Coursework Information’ folder
Message Boards and QM+ web page
This is for module‐related questions, it will be monitored and answered regularly, any direct emails (unless it’s about personal matters) will be ignored
Questions are likely to be asked by several students. All students will be able to see questions and responses
Check existing discussions in the forum, before posting a new question
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EBU6609 Logistics and Supply Chain Management
Questions about the module content – Discussion Forum on QM+
Personal issue or other comments that you don’t think it’s appropriate to post on QM+, email to or via your module representatives in order to keep anonymous;
Don’t have to wait until the next SSLC meeting!
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Module Representative – Apply Now!
2 Module Representatives for this module. Main responsibilities:
Give an overall feedbacks collected from students about the lectures to lecturer at the end of teaching week
Provide quick feedback to lecturers during each teaching week and aim at quicker respond to students
Finish the tasks assigned by the lecturer Assist lecturers to prepare the content of
revision lecture
Attend the SSLC meetings
To apply, email: with 1) your name, 2) both BUPT&QM student numbers, 3) your mobile phone numbers and WeChat IDs.
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EBU6609 Logistics and Supply Chain Management
Summary – Do’s and Don’ts
“Attend” all lectures and tutorials
Take your own notes on your print‐outs/downloaded files
Read books and other teaching materials on QMplus Remember to access QMplus regularly, to check for news/updates ASK! (Lecturers and TA via Message Board on QMplus)
Aim to fully understand new concepts and use them in case analysis
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Summary – Do’s and Don’ts
Don’t just…
relax and wait until the last minute before the exam to study this module –
your brain needs some processing time!
rely on the lecture slides instead of watching Q‐review lectures – your active participation will save you lots of time in assimilating the material covered in lectures.
read lecture notes only – the books and other reading materials on Qmplus are also vital to help you fully understand.
never ask for help as you want to pretend that you know everything.
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EBU6609 Logistics and Supply Chain Management
Questions?
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics and
Supply Chain
Management
AN INTRODUCTION
EBU6609 Logistics and Supply Chain Management
Learning Objectives
1. Define supply chain management, logistics and identify how supply chain collaboration can improve performance.
2. Discuss the extent to which supply chain strategies are being implemented.
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Theory of Supply Chain Management
Companies seek to design business models that meet customer needs better than competitors. Success depends on the ability to
Design, Make, and Deliver
innovative, high quality, low cost products and services that customers demand.
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EBU6609 Logistics and Supply Chain Management
Theory of Supply Chain Management (Cont’d)
Supply chain management allows companies to focus on their unique skill sets.
◦Economic theory of comparative advantage
◦ : 1) the wealth of a nation, product of its labour; 2)the greatest improvements in the product of labour result from the division of labour.
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3Gietticiencg.ateetive , equity
Theory of Supply Chain Management (Cont’d)
It’s the theory of comparative advantage applied at the company level.
-SCM allows companies to do what they do well.
Other activities are outsourced to companies with complementary capabilities.
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EBU6609 Logistics and Supply Chain Management
Theory of Supply Chain Management (Cont’d)
Supply chain management requires
◦ a common understanding of supply chain objectives and individual roles,
◦an ability to work together, and
◦ a willingness to adapt in order to create and delivery the
best products and services possible.
Su cturing Ex
pply Chain: Manufa
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EBU6609 Logistics and Supply Chain Management
Supply Chain: Manufacturing Example
tangib.ie/ntannklsenne/piodusnpplychainshare aeincommon Supply Chain: Service Example
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EBU6609 Logistics and Supply Chain Management
Supply Chain: Service Example
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Supply Chain Management Defined
-Supply chain management is the design and management of seamless, value‐added processes across organisational boundaries to meet the real needs of the end customer.
‐Institute for Supply Management (Leenders, 2006 p6)
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EBU6609 Logistics and Supply Chain Management
Logistics defined
“…the part of the supply chain that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers’ requirements.”
‐ Council of Logistics Management (Leenders, 2006 p5)
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Third‐party Logistics (3PL)
logistics activities for their clients. E.g. distribution centres, warehouse facilities, manage the delivery of the products through their transport fleets or undertake value‐adding services such as re‐packing.
3PL service providers are companies who provide a range of
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EBU6609 Logistics and Supply Chain Management
4PLsTM originated by Accenture (previously ).
Modern supply chain network is global and complicated, the capabilities to manage does not exist in any one organisation.
There’s a need for a specialist organisation, to form a JV with the focal firm, use its knowledge of SCs and 3PLs to manage and integrate end‐to‐end supply chain.
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Supply Chain Integration
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EBU6609 Logistics and Supply Chain Management
Internal Value Chain Elements
Executive Management defines company strategy and allocates resources to achieve it.
Supply Management coordinates the upstream supply base, finding the right suppliers and building the right relationships with them.
Operations transforms the inputs acquired from suppliers into more highly valued products.
Logistics moves and stores materials, so they are available when and where they are needed.
Marketing manages the downstream relationships with customers, identifying their needs and communicating to them how the company can meet those needs.
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Internal Value Chain Elements (cont’d)
Human Resources designs the systems used to hire, train, and develop the company’s employees.
Accounting maintains business records that provide information needed to control operations.
Finance acquires and controls the capital required to operate the business.
Information Technology builds and maintains the systems needed to capture and communicate information among decision makers.
Research and Development (R&D) is responsible for new product development.
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EBU6609 Logistics and Supply Chain Management
Supply Chain Integration
Internal Process Integration: increase collaboration among the company’s functional groups.
Backward Process Integration: collaboration with 1st‐tier and 2nd‐ tier (leading companies) suppliers.
Forward Process Integration: collaboration with 1st‐tier customers. Complete Integration: collaboration from the “suppliers’ supplier to
the customers’ customer.”
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Value chain analysis
Inbound logistics
Operations
Outbound logistics
Marketing & sales
Firm’s infrastructure
Human resource management
Technology development
Procurement
Step 1 – identify and classify the activities in the company
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
SECONDARY PRIMARY ACTIVITIES ACTIVITIES
EBU6609 Logistics and Supply Chain Management
Value chain analysis
Step 2 – identify the strengths & weaknesses of each activity
Inbound logistics
Operations
Outbound logistics
Good QA system on goods received
Well established production process
Good retail outlets via operators
Good brand image
Effective help-line
Weaknesses
No just-in-time system
Capital intensive machinery
Little control over process
Retail outlets control sales
Limited languages
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Value chain analysis (cont’d)
Step 2 – identify the strengths & weaknesses of each activity
Weaknesses
Procurement
Well established supplier links
Vulnerable to component shortages
Good track record
Lack of skill in future substitutes
Human resources
High level of morale
Long learning curve for some skills
Infrastructure
Legal dept good at patenting
Cost of tackling counterfeits
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
EBU6609 Logistics and Supply Chain Management
Value chain – exploiting resources
You also need to decide which strengths are
◦ Valuable
◦ Durable – not likely to lose their rarity or
value soon
◦ Inimitable – e.g. the result of company culture
Once strengths & weaknesses are known, look
◦ How you can use and maintain strengths
◦ Solve weaknesses
Internal Value Chain: Local Focus
Executive Management
Information Technology
Supply Management
Operations
Accounting
EBU6609 LOGISTICS AND SUPPLY CHMAIaNnMagAeNmAeGnEtMENT
Human Resource
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
EBU6609 Logistics and Supply Chain Management
Internal Value Chain: Company Focus
Executive Management
Information Technology
Operations
Upstream Suppliers Management
Human Resource
Downstream Customers
Accounting
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Internal Value Chain: Company Focus
Executive Management
Information Technology
Operations
Upstream Suppliers Management
Human Resource
Downstream Customers
Accounting
EBU6609 LOGISTICS AND SUPPLY CHMAIaNnMagAeNmAeGnEtMENT
EBU6609 Logistics and Supply Chain Management
SCM: Linked Value Chains
Accounti ng
Manage ment
Accounti ng
Executive Management
Information Technology
Operations ee ee
Manage ment
R&D R&D Manage
Manage ment
R&D R&D Manage
T echnol T echnol ogy ogy
Operatio ns
ns T echnol ogy
Supply Logistics Manage ment
Informati oOnperatio
T echnonls ogy
MaLnaogge isticsLogistics
Operatio ns
Customer’s Customer
Supply Supply Supply Manage Manage
Logistics ment mMentanagement
Manage Manage
Marketin Finance
Human Resourc
Resourc ee ee
Supplier’s Supplier Supplier
Focal Firm
Human Resource
Accounti ng
Manage ment
Accounting
EBU6609 LOGISTICS AND SUPPLY CHMAIaNnMagAeNmAeGnEtMENT
Supply Chain Integration
Theoretical Ideal
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EBU6609 Logistics and Supply Chain Management
Supply Chain Management Problems
The goal of supply chain management is to use technology and teamwork to build efficient and effective processes that create value for the end customer.
The goal is compromised when processes, value chain elements, and/or companies work toward local rather than global optimum.
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Supply Chain Illustration
Outline the components of the supply chain for the final delivery of a pint of beer to a consumer. It’s more complex that it seems at first!
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EBU6609 Logistics and Supply Chain Management
Basic Supply Chain: Beer
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Further Readings
Chopra, Ch3 Christopher, M. Ch1‐2 Fawcett, Ch1‐3
Supply Chain Management in Projects: https://www.popsci.com/where‐supertall‐skyscraper‐glass‐ comes‐from#page‐2
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