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What is supply chain management?Instruction: Watch the following videos and read the following passage, then write down an expanded flow chart of supply chain with all common elements talked about in the passage below.https://www.youtube.com/watch?v=4-QU7WiVxh8https://www.youtube.com/watch?v=UBSOiHUctrYhttps://www.youtube.com/watch?v=s8dkMmq5aiI

Supply chain Supply chain (SC) is the set of multiple processes from raw material procurement to the end product distribution. It is basically the flow of information and material among multiple entities such as supplier, manufacturer, distributor, retailer and the ultimate customer. For example, A manufacturer procures milk from the farmers. After the procurement, it’s processed in the factory for homogenization, making milk products like ice cream, etc. Once the end product is ready, the factory dispatches it to the distributor, who connects it to the retailers where the customer finally receives all the milk products.

Supply Chain Management Supply chain management is the process of managing the movement of the raw materials and parts from the beginning of production through delivery to the consumer. In many organizations, operational supply chain decisions are made hundreds of times each day affecting how products are developed, manufactured, moved, and sold. The complexity of the

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Learning Outcomes:Understand the concepts of supply chains and logistics

[introduction to logistics] Unit 1

supply chain varies with the size of the business and the intricacy and quantity of items manufactured, but most supply chains have elements in common, such as the following:

Customers: Customers start the chain of events when they decide to purchase a product that has been offered for sale by a company. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility.

Planning: The planning department will create a production plan to produce the products to fulfill the customer’s orders. To manufacture the products, the company will then have to purchase the raw materials needed.

Purchasing: The purchasing department receives a list of raw materials and services required by the production department to complete the customers’ orders.

Inventory: The raw materials are received from the suppliers, checked for quality and accuracy, and moved into the warehouse.

Production: Based on a production plan, the raw materials are moved to the production area. These raw materials are used to manufacture the finished products ordered by the customer and then sent to the warehouse where they await shipping.

Transportation: When the finished product arrives in the warehouse, the shipping department determines the most efficient method to ship the products so they are delivered on or before the date specified by the customer.

Flows of Supply chain OperationsA. Information Flow 

Stages of Information flow:1. Order Generation:

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In general, supply chain starts with the customer. A customer places an order, either online or picks up an item from

the shelf of a retail outlet. The retailer notes the order and informs the distributor about the

order. The Distributor does the same by reaching out to the sales

department of the product.2. Order Processing:

The Sales department sees if they have the finished goods in stock and if not, they inform the planning department.

The Planning department sees if they have the raw material and the actions required in place or not. They make calculations and figure out the appropriate actions to complete the order.

The Planning department informs the Production planning department so that the information is finally in the factory.

The Production Planning department informs the Purchasing department. The purchasing department connects with the suppliers for ordering required raw material for manufacturing the product when required.

Once the process is complete, and the finished goods are available, the production informs the sales.

B. Material flow Material flow is the exact opposite of the information flow. It is a process of procuring raw materials, converting them into end products and making them available for the customers.Stages of Material flow 1.Procurement:

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Once the supplier receives the order information from the purchasing department, he sends out the required material to the stores.

2.Processing: The factory picks up the material from the stores for processing it

into a quality end product. The factory stores the end products into a far-warehouse.

3.Distribution:The Sales department picks up the product from the far warehouse.

The sales dispatch the products to the distributors. The distributor dispatches the product to the retailers Finally, the retailer delivers the end product to the customer.

Stages of Supply Chain OperationsInstruction: Study the stages of supply chain operations, then write down the stages of supply chain operations of one product (like COCA COLA, ZARA).

Supply chain operations consist 3 stages:Inbound Supply Chain Operations:In this stage, a manufacturer or the service provider obtains raw materials from the supplier. For example, a dairy procures milk from the farmers. There may be tiers of suppliers and not just one. In the case of made-to-

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order or turnkey supply chain, there may be no moderators like retailers and the distributors. The factory may directly supply it to the customers.In-house Supply Chain OperationsIn this component, the manufacturer already has the raw materials in-house. To illustrate, a dairy processes milk and converts it into ice-cream or butter during the in-house supply chain process. Outbound Supply Chain OperationsIn this stage, a manufacturer dispatches the end products to the distributors so that he can send them to the retail outlets, where the customers can buy them.To summarize, this is the last stage of the supply chain. To illustrate, the dairy processes the milk and dispatches it to the distributors or retailers or also the end customers in different scenarios.

What is logistics?Instruction: Read the following passage, then discuss with the class.

Why Logistics is So Important to Supply Chains

When used in a business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. In other words, logistics is about planning and coordinating the movement of products timely, safely and effectively. The resources managed in logistics can include physical items such as food, materials, animals, equipment, and liquids, as well as abstract items, such as time and information. The logistics of physical items usually involves the integration of information

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flow, material handling, production, packaging, inventory, transportation, and warehousing.

There is often confusion over the difference between logistics and supply chains. It is now generally accepted that logistics refers to activities within one company/organization related to the distribution of a product, whereas supply chain also encompasses manufacturing and procurement and therefore has a much broader focus, as it involves multiple enterprises, including suppliers, manufacturers, and retailers, working together to meet a customer’s need for a product or service.

One way to look at business logistics is “having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer.” An operations manager who focuses on logistics will be concerned with issues such as inventory management, purchasing, transportation, warehousing, and the planning and organization of these activities.

Logistics management is the part of supply chain management. The logistics management takes into consideration every facility that has an impact on cost. It plays an important role in making the product conform to customer requirements. Also it involves efficient integration of suppliers, manufacturers, warehouses and stores and encompasses the firms’ activities at many levels. A professional working in the field of logistics management is called a logistician.

Any successful business leader seems to acknowledge the crucial importance of effectively organized logistics. Logistics seems to play an essential part in supply chain management because a supply chain cannot ensure high value without effectively organized logistics, meaning that logistics is one of the most crucial factors in the quality of any supply chain. The reasons are as follows.

1. Logistics helps businesses create valueProviding value to customers does not only refer to quality or

quantity. It also refers to availability. As better logistics makes your products more available to an increasing group of people, wise business leaders consider it a very important tool in creating value for customers.

Logistics creates and increases the value businesses offer by improving merchandise, and ensuring the availability of products. In order to provide more value, businesses either work on improving their own logistic activities or rely on professionals.

2. Logistics helps in reducing costs and improves efficiency With global trade growing more popular, logistics has become the

heart of supply chains. Business leaders have realized they can reduce their costs by establishing partnerships with other businesses which offer transportation and warehousing.

When businesses start using such services to outsource transport and warehousing, they improve their overall business efficiency, sometimes dramatically. If they let these partners take charge of shipping their goods to end customers, this results in a better reputation and a stronger brand. By working with highly professional and reliable logistics

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companies, many businesses have improved their efficiency by providing faster delivery of product.

3. Logistics helps delivering your product at the right place timelyWith professionally organized logistics, businesses are able to

answer short-time requirements. By choosing an experienced team of professionals, business entrepreneurs can ensure quick and safe shipping, warehousing and delivery of their products to customers. They can incorporate these services in a way that adds value to their offers, and ensure their products get to the right place on time.

Definitions of LogisticsInstruction: Look at the word cloud created by wordart.com, then discuss about what the logistics is about

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Instruction: Watch video about logistics https://www.youtube.com/watch?v=lZPO5RclZEo, then discuss about what the logistics is about.

Instruction: Read the following definitions of logistics, then write down your own definition of logistics.

1. The American Council of Logistics Management has proposed a definition which is widespread in the USA: Logistics is the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.

2. Logistics is about 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, called the 7 Rs (John J. Coyle et al)

3. Logistics is the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, including services and related information, from the point of origin to the point of consumption. The goal of logistics is to successfully meet customer requirements. http://searchmanufacturingerp.techtarget.com/definition/logistics

4. Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items. The logistics of physical items usually involves the integration of information flow, materials

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handling, production, packaging, inventory, transportation, warehousing, and often security. https://en.wikipedia.org/wiki/Logistics

5. Logistics is used more broadly to refer to the process of coordinating and moving resources – people, materials, inventory, and equipment – from one location to storage at the desired destination. The term logistics originated in the military, refers to the movement of equipment and supplies to troops in the field. https://www.shopify.com/encyclopedia/logistics

6. Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. The goal of logistics is to meet customer requirements in a timely, cost-effective manner. https://searcherp.techtarget.com/definition/logistics

7. Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. The term "Logistics" was initially a military-based term used in reference to how military personnel obtained, stored, and moved equipment and supplies. The term is now used widely in the business sector, particularly by companies in the manufacturing sectors, to refer to how resources are handled and moved along the supply chain. https://www.investopedia.com/terms/l/logistics.asp

8. Logistics is the part of supply chain 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 (Council of Logistics Management, 1991).

9. Logistics is widely known as the process of coordinating and moving resources such as equipment, food, liquids, inventory, materials and people from one location to the storage of the desired destination. It was originally a military-based term that was used to describe how the military force obtained, stored and moved equipment and supplies. In the supply chain and business sense, logistics is the management of the flow of things between the point of origin and consumption to fulfil the requirements of consumers or corporations. https://www.dovetail.co.za/what-is-logistics-all-you-need-to-know-about-logistics-management/

10. Logistics is ………………..…………………………………………………………………………………………………………………………………………………………………………………………………………..…..……………………………………………………………………………………………………………………..…..

Writing a definitionInstruction: Answer the following questions

1. What is definition2. When to use definition3. Why we need definition4. How to define something

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Instruction: Study how to define something1. Definition of the word ‘definition’ (https://en.wiktionary.org/wiki/definition)

PronunciationIPA: /ˌdɛfɪˈnɪʃ(ə)n/, /ˌdɛfɪˈnɪʃən/

Noundefinition (plural definitions)

1. (semantics) A statement of the meaning of a word or word group or a sign or symbol (dictionary definitions).

2. A statement expressing the essential nature of something; formulation

3. The action or process of defining.4. The act of defining; determination of the limits.5. A product of defining.6. The action or power of describing, explaining, or making definite

and clear.Her comic genius is beyond definition.

2. How to define something(Retrieved from https://www.prismnet.com/~hcexres/textbook/def.html)

1. Remember that a word doesn’t have one “right” meaning2. Give only facts, not opinions3. Use simple and familiar terms4. Do not define by repeating the word 5. Use negation to explain what the term does not mean6. Clarify the concept with enough details, not too small or too large7. Classify the term by specifying what classes and parts of speech a

word belongs to according to a standard dictionary definition8. Place the concept in relation to other concepts in order to show how

the concept is different from other concepts that might be confused with it

9. Make the concept clearer by listing and describing its parts, or its subtypes, or its phases of development

10. Give examples of the term; an instance of the term as it is seen in everyday life to illustrate the meaning

11. Show synonyms, or terms that mean nearly the same thing as the term being defined

12. Describe how the thing being defined is used (show its usage) (e.g. A Spoon can be defined as an eating utensil that is used for eating liquids)

3. A formal definition consists of three parts:1. The term (word or phrase) to be defined2. The class of object or concept to which the term belongs.3. The differentiating characteristics that distinguish it from all others

of its class(Retrieved from https://owl.english.purdue.edu/owl/resource/622/01/)

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For example: Water (term) is a liquid (class) that is made (made) up of molecules

of hydrogen and oxygen in the ratio of 2 to 1 (differentiating characteristics).

Comic books (term) are sequential and narrative publications (class) consisting of illustrations, captions, dialogue balloons, and often focus on super-powered heroes (differentiating characteristics).con

Astronomy (term) is a branch of scientific study (class) primarily concerned with celestial objects inside and outside of the earth's atmosphere (differentiating characteristics).

4. Task:Write the definitions of the following words:

materials…………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………….………………………………………………………………………………………………………………………………………………………………………

goods…………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………….………………………………………………………………………………………………………………………………………………………………………

freight…………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………….………………………………………………………………………………………………………………………………………………………………………

warehouse…………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………….………………………………………………………………………………………………………………………………………………………………………

distributing centers…………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………….……………………………………………………………………………………………………………………………………………………………………

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Exercise

Identify the topic of each paragrapha. forms of logisticsb. evolution of logisticsc. definition of logisticsd. functions of logisticians

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1

2

3

4

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e. main activities and goal of logistics

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