Unit.12Integrated

LogisticsManagementIntegratedLogisticsManagementToday,moreandmorecompaniesareadoptingtheconceptofintegratedlogisticsmanagement.Thisconceptrecognizesthatprovidingbettercustomerserviceandtrimmingdistributioncostsrequiresteamwork,bothinsidethecompanyandamongallthemarketingchannelorganizations.Insidethecompany,thevariousfunctionaldepartmentsmustworkcloselytogethertomaximizethecompany’sownlogisticsperformance.Thecompanymustalsointegrateitslogisticssystemwiththoseofitssuppliersandcustomerstomaximizetheperformanceoftheentiredistributionsystem.3ConceptRecognizesthatProvidingBetterCustomerServiceandTrimmingDistributionCostsRequiresTeamwork,BothInsidetheCompanyandAmongAlltheMarketingChannelOrganizations.Cross-FunctionalTeamworkinsidetheCompanyBuildingChannelPartnershipsIntegratedLogisticsIntegratedLogisticsManagementCross-FunctionalTeamworkInsidetheCompanyInmostcompanies,responsibilityforvariouslogisticsactivitiesisassignedtomanydifferentfunctionalunits—marketing,sales,finance,manufacturing,purchasing.Toooften,eachfunctiontriestooptimizeitsownlogisticsperformancewithoutregardfortheactivitiesoftheotherfunctions.However,transportation,inventory,warehousing,andorderprocessingactivitiesinteract,ofteninaninverseway.Forexample,lowerinventorylevelsreduceinventorycarryingcosts.Fromstock-outs,backorders,specialproductionruns,andcostlyfast-freightshipments..Becausedistributionactivitiesinvolvestrongtrade–offs,decisionsbydifferentfunctionsmustbecoordinatedtoachievesuperioroveralllogisticsperformance.Thus,thegoalofintegratedlogisticsmanagementistoharmonizeallofthecompany’sdistributiondecisions.Closeworkingrelationshipsamongfunctionscanbeachievedinseveralways.Somecompanieshavecreatedpermanentlogisticscommitteesmadeupofmanagersresponsiblefordifferentphysicaldistributionactivities.Thesecommitteesmeetoftentosetpoliciesforimprovingoveralllogisticsperformance.Companiescanalsocreatemanagementpositionsthatlinkthelogisticsactivitiesoffunctionalareas.Forexample,Procter&Gamblehascreated“supplymanagers”whomanageallofthesupplychainactivitiesforeachofitsproductcategories.Manycompanieshaveavice-presidentoflogisticswithcross-functionalauthority.Infact,accordingtoonelogisticsexpert,three-fourthsofallmajorwholesalersandretailers,andathirdofmajormanufacturingcompanies,haveseniorlogisticsofficersatthevicepresidentorhigherlevel.Thelocationofthelogisticsfunctionswithinthecompanyisasecondaryconcern.BuildingChannelPartnershipsThemembersofadistributionchannelarelinkedcloselyindeliveringcustomersatisfactionandvalue.Onecompany’sdistributionsystemisanothercompany’ssupplysystem.Thesuccessofeachchannelmemberdependsontheperformanceoftheentiresupplychain.Forexample,Wal-Martcanchargethelowestpricesatretailonlyifitsentiresupplychain—consistingofthousandsofmerchandisesuppliers,transportcompanies,warehouses,andserviceproviders—operatesatmaximumefficiency.Companiesmustdomorethanimprovetheirownlogistics.Theymustalsoworkwithotherchannelmemberstoimprovewhole-channeldistribution.Forexample,itmakeslittlesenseforLevi-Strausstoshipfinishedjeanstoitsownwarehouse,thenfromthesewarehousestoJCPenney’sstores.Ifthetwocompaniescanworktogether,LeviStraussmightbeabletoshipmuchofitsmerchandisedirectlytoJCPenney’sstores,savingtime,inventory,andshippingcostsforboth.Today,smartcompaniesarecoordinatingtheirlogisticsstrategiesandbuildingstrongpartnershipswithsuppliersandcustomerstoimprovecustomerserviceandreducechannelcosts.Thesechannelpartnershipscantakemanyforms.Manycompanieshavecreatedcross-functional,cross-companyteams.Forexample,Procter&Gamblehasateamofalmost100peoplelivinginBentonville,Arkansas,homeofWal-Mart.TheP&GersworkwiththeircounterpartsatWal-Marttojointlyfindwaystosqueezecostsoutoftheirdistributionsystem.WorkingtogetherbenefitsnotonlyP&GandWal-Mart,butalsotheirfinalconsumers,HaggarApparelCompanyhasasimilarsystemcalled”multiplepointsofcontact,”inwhichaHaggarteamworkswithJCPenneypeopleatcorporate,divisional,andstorelevels.Asaresultofthispartnership,PenneynowreceivesHaggarmerchandisewithin18daysofplacinganorder-10daysfewerthanitsnextbestsupplier.AndHaggarshipsthemerchandise“floorready”—hangeredandpre-tagged—reducingthetimeittakesPenneytomovethestockfromreceivingdockstothesalesfloorfromfourdaystojustone.Othercompaniespartnerthroughsharedprojects.Forexample,manylargerretailersareworkingcloselywithsuppliersonin-storeprograms.HomeDepotallowskeysupplierstouseitsstoresasatestinggroundfornewmerchandisingprograms.ThesuppliersspendtimeatHomeDepotstoreswatchinghowtheirproductsellsandhowcustomersrelatetoit.TheythencreateprogramsspeciallytailoredtoHomeDepotanditscustomers.WesternPublishingGroup,publisherof”LittleGoldenBooks”forchildren,formedasimilarpartnershipwithToys‘R’Us.Westernandthegianttoyretailercoordinatedtheirmarketingstrategiestocreatemini-bookstoresections-calledBooks‘R’Us–withineachToys‘R’Usstore.Toys‘R’Usprovidesthelocations,space,andcustomers’Westernservesasdistributor,consolidator,andservicerfortheBooks‘R’Usprogram.Clearly,boththesupplierandcustomerbenefitfromsuchpartnerships.Informationsharingisattheheartofsupplier-customerrelationships.Increasingly,high-performanceretailersaresharingpoint-of-salescannerdatawiththeirsuppliersthroughelectronicdatainterchange.Wal-Martwasoneofthefirstcompaniestoprovidesupplierswithtimelysalesdata.WithitsRetailLinksystem,majorsuppliershave“earthstations”installedbywhichtheyaredirectlyconnectedtoWal-Mart’sinformationnetwork.Now,thesamesystemthattellsWal-Martwhatcustomersarebuyingletssuppliersknowwhattoproduceandwheretoshipthegoods.Thus,whenateenagerbuysasize10Nikerunningshoe,theinformationgoesdirectlytoNike’scomputers,triggeringreplacementorproduction.Wal-Martnolongerissuespurchaseorderstosomeofitsmostreliablesuppliers.ThesesuppliersautomaticallyreplenishWal-Mart’sinventorybasedontheretailer’sscannerdataandtheirknowledgeofWal-Mart’soperations.BaileyControls,amanufacturerofcontrolsystemsforbigfactories,fromsteelandpapermillstochemicalandpharmaceuticalplants,…treatssomeofitssuppliersalmostlikedepartmentsofitsownplants.Baileyhaspluggedtwoofitsmainelectronicssuppliersintoitself.FutureElectronicsishookedonthroughanelectronicdatainterchangesystem.Everyweek,BaileyelectronicallysendsFutureitslatestforecastsofwhatmaterialsitwillneedforthenextsixmonths,sothatfuturecanstockupintime.Baileyitselfstocksonlyenoughinventoryforafewdaysofoperation,asopposedtothethreeorfourmonthsworthitusedtocarry.Wheneverabinofpartsfallsbelowadesignatedlevel,aBaileyemployeepassesalaserscanneroverthebin’sbarcode,instantlyalertingFuturetosendthepartsatonce.ArrowElectronics...ispluggedinevenmoreclosely:IthasawarehouseinBailey’sfactory,stockedaccordingtoBailey’stwice-a-monthforecasts.Baileyprovidesthespace,Arrowthewarehousemanandthe$500,000ofinventory.IntegratedLogistics

Today,asaresultofsuchpartnerships,manycompanieshaveswitchedfromanticipatory-baseddistributionsystemstoresponse-baseddistributionsystems.Inanticipatorydistribution,thecompanyproducestheamountofgoodscalledforbyasalesforecast.Itbuildsandholdsstockatvarioussupplypointssuchastheplant,distributioncenters,andretailoutlets.Eachsupplypointreordersautomaticallywhenitsorderpointisreached.Whensalesareslowerthanexpected,thecompanytriestoreduceitsinventoriesbyofferingdiscounts,rebates,andpromotions.Forexample,theAmericanautoindustryproducescarsfarinadvanceofdemand,andthesecarsoftensitformonthsoninventoryuntilthecompaniesundertakeaggressivepromotion.Aresponse-baseddistributionsystem,incontrast,iscustomer-triggered.Theproducercontinuouslybuildsandreplacesstockasordersarrive.Itproduceswhatiscurrentlyselling.Forexample,Japanesecarmakerstakeordersforcars,thenproduceandshipthemwithinfourdays.Somelargeappliancemanufacturers,suchasWhirlpoolandGE,aremovingtothissystem.Benetton,theItalianfashionhouse,usesaquick-responsesystem,dyeingitssweatersinthecolorsthatarecurrentlysellinginsteadoftryingtoguesslonginadvancewhichcolorspeoplewillwant.Producingfororderratherthanforforecastsubstantiallycutsdowninventorycostsandrisks.20ReviewofTermsandConceptsLogistics:

Theprocessofplanning,implementingandcontrollingeffectiveflowandstorageofmaterials,in-processinventory,finishedgoodsandrelatedinformationfrompointoforigintopointofconsumptionforthepurposeofconformingtocustomerrequirements.物流（學）Integratedlogisticsmanagement:

Integratedlogisticsmanagementisalogisticsconceptthatemphasizestheteamwork,bothinsidethecompanyandalongallthemarketingchannelorganizations,inordertomaximizetheperformanceoftheentiredistributionsystem.一體化物流管理.21Supplychainmanagement:Supplychainmanagementistheintegrationofallthefacilities,functions,andprocessesassociatedwiththeproductionofgoodsandservicesallthewayfromsupplierstocustomersorend-users.供應鏈管理Distributionchannel(marketingchannel)Asetofinterdependentorganizationsinvolvedintheprocessofmakingaproductorserviceavailableforuseorconsumptionbytheconsumerorbusinessuser.分銷渠道directmarketingchannelAmarketingchannelthathasnointermediarylevels.直銷渠道

marketinglogistics(physicaldistribution)

Thetasksinvolvedinplanning,implementing,andcontrollingthephysicalflowofmaterials,finalgoods,andrelatedinformationfrompointsoforigintopointsofconsumptiontomeetcustomerrequirementsataprofit.營銷物流（實體分銷）DiscussionandReviewQuestions:

1.Pleasedefinetheintegratedlogisticsbriefly?2.Arethetransportation,inventory,warehousing,andorderprocessinginaninverseway?Giveanexample.3.Whatisthegoalofintegratedlogistics?4.Whatarethefunctionsofthelogisticscommittees?5.Whatisthesuccessofeachchannelmemberdependson?6.Howmanyformscantakethesechannelpartnerships?7.Dothecompaniesmanagetheirsupplychainsthroughinformation?8.Ho