Summary distribution management
Supply chain logistics management fifth edition (Bowersox, Closs, Cooper, & Bowersox,
2020)
Bowersox, D. J., Closs, D. J., Cooper, M. B., & Bowersox, J. C. (2020). Supply chain logistics
managment. In Supply chain logistics management (5th ed., p. 462). New York: McGraw-Hill
Education.
Content
Summary distribution management ....................................................................................................... 1
Supply chain logistics management fifth edition ................................................................................ 1
Chapter 1 21st-Century Supply Chains ..................................................................................................... 2
Chapter 3 Logistics .................................................................................................................................. 6
Chapter 4 Customer accommodation ..................................................................................................... 9
Chapter 7 Inventory............................................................................................................................... 14
Chapter 8 Transportation ...................................................................................................................... 15
Chapter 9 Warehousing, Materials Handling, and Packaging ............................................................... 17
Chapter 11 Network design................................................................................................................... 21
Chapter 14 Supply chain trends ............................................................................................................ 24
,Chapter 1 21st-Century Supply Chains
Ch. 1 All pages
In the past companies had to have a lot of stock in order to be able to deliver to customers without
running out of stock. It took a long time to deliver an order to the customer (10-15 days). Now in de
information or digital age there is more connectivity and products can be manufactured and
delivered to a lot of specifications. Order and delivery can be performed in hours. The integrated
supply chain perspective shifts traditional channel arrangements from loosely linked groups of
independent businesses that buy and sell inventory to each other toward a managerially coordinated
initiative to increase market impact, overall efficiency, continuous improvement, and
competitiveness.
Perfect orders: delivering the desired assortment and quantity of products to the correct location on
time, damage-free, and correctly invoiced.
Supply chain management: consists of firms collaborating to leverage strategic positioning and to
improve operating efficiency.
Logistics: the work required to move and position inventory throughout a supply chain. This process
creates value by timing and positioning inventory. It is the combination of a firm's order
management, inventory, transportation, warehousing, materials handling, and packaging as
integrated throughout a facility network.
Integration creates value
There are 3 perspectives of value
- Economic value (Traditional perspective): economy of scale as source of efficiency
o Quality at a low price
- Market value: convenient product/service assortment and choice
o Attractive assortment
o Economy-of-scope effectiveness
o Product/service presentation
- Relevancy value: the right products and services positioned in a manner that creates
customer-specific value
o Customization
o Segmental diversity
o Product/service positioning
, Generalised supply chain model:
The context of an integrated supply chain is multifirm relationship management within a framework
characterized by capacity limitations, information, core competencies, capital, and human resource
constraints.
Value is created from synergy among firms in the supply chain with respect to five critical flows:
information, product, service, financial, and knowledge.
Supply chain definitions and activities
Supply chain management: set of processes to effectively and efficiently integrate suppliers,
manufacturers, distribution centers, distributors, and retailers so that products are produced and
distributed at the right quantities, to the right locations, and at the right time to minimize system-
wide costs while achieving the consumer’s desired value proposition.
Character of 21st century supply chain: information based or digital supply chain, connectivity among
collaborating business organizations.
Logistics management: process and activities that create value focused on the design and
administration of a system to control the timing and geographical positioning of raw material, work-
in-progress, and finished inventory at the lowest total cost.
Integrated logistics: link and synchronize the overall supply chain as a continuous process and is
essential to achieve the desired outcomes of the firm’s value proposition.
Integrative management and supply chain processes
Redirect traditional emphasis on functionality to focus on process achievement. The focus of
integrated management is lowest total process cost, not achievement of the lowest cost for each
function included in the process.
