LOGISTICS AND

SUPPLY CHAIN MANAGEMENT

Lecturer: Ho Trung Thao (thao.hotrung@hoasen.edu.vn)
 Course Objectives

 Understand the definitions Logistics and Supply Chain

 Understand the concept and key points of Supply

Chain Management.
 Know how to manage Supply Chain and
Logistics in real companies.
 Apply to a group project.

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 Materials
 Required Textbooks and Materials:
[1] Donald Waters, Supply Chain Management -An Introduction to
Logistics, Palgrave MacMillan, 2009.
[2] Lecturer’s material.
 References:
 Operations and Supply Chain Management, 15th Edition by F. Robert Jacobs
and Richard Chase.
 Chopra, S. and P. Meindl, Supply Chain Management: Strategy, Planning and
Operations, Fifth Edition, New Jersey: Prentice Hall.
 David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi, Designing and
Managing the Supply Chain. McGraw-Hill/Irwin; 2nd edition.
 Stanford Global Supply Chain Forum, www.stanford.edu/group/scforum
 Supply Chain Management Research Center, www.cio.com/research/scm
 Supply Chain Resource, www.supplychaincanada.org/en/resources
 Journal, International Journal of Logistics Management,
http://www.emeraldinsight.com/products/journals/journals.htm?id=ijlm
 Newspapers (Sài gòn giải phóng, Tuổi trẻ Thanh niên, Kinh tế Sài gòn, Diễn
đàn doanh nghiệp, VN Express, Vietnam Net, Kinh tế Việt Nam…) 3
 Assessment Methods

Components Duration Assessment Forms Percentage Schedule

Attendance 10% During
semester
Group Written report and oral 20% Week 4 to
assignment presentation 12

Individual Quiz and/or case analysis 20% Week 1-15

assignment during entire course
Final Test 90 minutes In class multiple choice 50% To be
test and writing defined by
(open book) Registrar’s
office
Total 100%

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 Group project (Group assignment)
- Purpose:
 Students learn about the actual supply activities in the enterprise , to link
knowledge and operation in reality.
- Group structure:
 Each group of 5-8 students , depending on the number of students in the
class (students self-select group , vote the group leader and submit to the
faculty group member list in the first 2 weeks of school ).
- Content:
 Each group will choose one topic in the course.
 Each group approaches and study business according to the selected
theme (which may change the subject's request or the actual business
operation) , group discussions , may have further advice from faculty.
 Each group get a referral and business contacts by themself. Lecturers
will join field trips with the group if necessary.
- Format and deadline:
 Each group will submit a report of 8-12 pages A4 , in the 11th week;
groups will present to the class during the week 12-15. 5
 Academic Integrity
Students are required to:
 Work independently on individual assignments
 Collaborating on individual assignments is considered cheating.
 Avoid plagiarism
Plagiarism is an act of fraud that involves the use of ideas or words of another
person without proper attribution. Students will be accused of plagiarism if they:
 Copy in their work one or more sentences from another person without proper
citation.
 Rephrase, paraphrase, or translate another person’s ideas or words without
proper attribution.
 Reuse their own assignments, in whole or in part, and submit them for another
class.
 Work responsibly within a working group
 In cooperative group assignments, all students are required to stay on task and
contribute equally to the projects. Group reports should clearly state the
contribution of each group member.
o Any acts of academic dishonesty will result in a grade of zero for the task at hand
and/or immediate failure of the course, depending on the seriousness of the fraud.
o Please consult Hoa Sen University’s Policy on Plagiarism at
http://thuvien.hoasen.edu.vn/chinh-sach-phong-tranh-dao-van. 6
Week Text Assignment and Homework Problems
1 Fundamentals of Logistics and SCM Read Chapter 1 & 2
Homework problems: (5,6 page 58)
2 Integrated Supply chain Read Chapter 5
Homework problems: (5,7,8,10 page 160)
3 Locating Facilities Read Chapter 7
Homework problems: (1, 3, 4 page 225-226)
4 Locating Facilities (cont.) Read Chapter 7
Homework problems: (2, 6, 7 page 225-227)
5 Capacity Planning Read Chapter 8
Homework problems: (2, 5, 6 page 261-262)
6 Capacity Planning (cont.) Read Chapter 9
Homework problems:(1,2,3,4 page 300 )

7 Controlling the Flow of Materials Read Chapter 9

Homework problems:(7,8,9 page 300 )
8 Controlling the Flow of Materials (cont.) Read Chapter 14 (1,2 page 470)

9 Procurement Read Chapter 14 (3, 4 page 470)

10 Inventory Management Read Chapter 10
Homework problems: (case study page 331 )
11 Inventory Management (cont.)
12 Group report presentation Read Chapter 11
Homework problems (3, 4, 9 page 368)
13 Group report presentation Read Chapter 12
Homework problems: (case study page 399)
14 Warehouse & Material Handling Read Chapter 12
Homework problems: (2,3,4,5 page 401)
15 Measuring and Improving Performance
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Final Review
 Chapter 1 & 2
Fundamentals of Logistics

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Learning Objectives

 DEFINE ‘logistics’ and associated terms

 UNDERSTAND the role and structure of supply chains
 LIST different activities of logistics and understand the
relationships between them
 DISCUSS the aims of logistics
 SHOW how logistics contributes to customer satisfaction
 RECOGNISE the importance of logistics to every
organization.

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1. Basics Definition
 All organizations move materials.
Manufacturers:
raw materials finished goods.

raw material: nguyên vật liệu

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finished product: thành phẩm
 1. Basics Definition

 Definition of Logistics: Logistics is the function that is responsible

for the movement of materials (and information). It is responsible
for the transport and storage of materials between suppliers and
customers.

 According to the Council of Supply Chain Management Professionals

(CSCMP), a professional organization for Logistics and SCM
professionals, logistics is defined as: “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”

function: hoạt động đặc biệt; material: vật chất

transport: vận chuyển; storage: dự trữ
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supplier: nhà cung cấp; consumer: người tiêu dùng
Basic Definition (contd.)
 The aim of all organizations is to supply some
products to their customers
 These products may be goods or service

Mainly Goods and Service Mainly

goods service

Car producers Tailor Restaurants Healty Education

sector

spectrum: dãy liên tục

goods: hàng hóa; service: dịch vụ
Basic Definition (contd.)
 Products: Goods (tangible) and Services (intangible)
 Operations: create and deliver the products. These
operations (process) converts inputs into outputs.

INPUT OPERATIONS OUTPUT

People Manufacture Goods

Buildings Serve Service
Raw materials Supply Profit
Equipment Transport Waste
Information Sell Wages
Investment Train Etc.
Etc.. Etc.

operation: (quá trình) vận hành; tanngible: hữu hình, có thể sờ mó được, rõ ràng
input: đầu vào; output: đầu ra
 Basics Definition (contd.)
 The products created by an organization is like demand-supply cycle

Customer

Supply of Demand for

product product

Operations

Other outputs Other inputs

Logistics is the function responsible for the flow of material around this cycle

flow of material: dòng vật chất

organization: tổ chức, công ty
 The Role of Logistics
 Logistics is responsible for the flow of material:
 from suppliers into organizations,
 through operations within organizations,
 and to customers

Operations within
organizations
External External
supplier customers
Internal Internal
supplier customer

Inbound Materials management Outbound

logistics logistics

Logistics

Inbound logistics (logistics đầu vào): activities between external suppliers and the organization
Outbound logistics (logistics đầu ra): activities between external customers and the organization
Operations within the organization: activities between internal suppliers and internal customers
Supply Chain Flows
(Five Typical Supply Chain Stages/Entities)

Value-Added Services

Supplier Manufacturer Distributor Retailer Customer

Material/Product Flow

Funds/Demand Flow

Information Flow

Returns/Recylcing
2. The Supply Chain

A SUPPLY CHAIN consists of the series of activities

and organizations that materials move through on their
journey from initial suppliers to final customers.

series of activities: một chuỗi các hoạt động

initial supplier: nhà cung cấp đấu tiên
final customer: người tiêu thụ/dùng cuối cùng
 Supply Chain of Sheets of Paper?

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 Customer
Carrier
Supplier
Carrier Distribution
center
Customer

Carrier Customer

Manufacturing
Supplier
site
Customer

Customer
Distribution
center
Supplier
Customer

Fig. 1.5. Supply Chain

manufacturing site: nơi sản xuất
distribution center (DC): trung tâm phân phối
carrier: nhà vận tải
 Structure of the supply chain
 SUPPLY CHAIN = a series of activities and organizations that move materials
from initial suppliers to final customers

 Upstream supply chain activities: involve initial supplier, third tier supplier,
second tier supplier, first tier supplier

 Downstream supply chain activities: involve first tier customer, second tier
customer, third tier customer, final customer

Upstream activities Downstream activities

3rd. tier 2nd. tier 1st. tier 1st. tier 2nd. tier 3rd. tier final
Initial supplier supplier supplier supplier customer customer customer customer

ORGANISATION

upstream: thượng lưu, đầu nguồn; downstream: hạ lưu cuối nguồn

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tier: lớp, tầng, cấp
 1st. tier 2nd. tier 3rd. tier
3rd. tier 2nd. tier 1st. tier
customer customer customer
supplier supplier supplier

Materials Component Sub-assembly Wholesalers Retailers End users

suppliers makers providers

Manufacturer

Supply chain around a manufacturer 25

Supply Chain
2nd-tier supplier
(e.g., steel,
1st-tier supplier
aluminum) (e.g., engine)

2nd-tier supplier
(e.g., plastic,
1st-tier supplier
Rubber) (e.g., tire)

2nd-tier supplier
(e.g., bolts,
1st-tier supplier
nuts) (e.g., car seat)
Consumer
Carmaker: assembly  car Dealer

2nd-tier supplier
(e.g., electronic
1st-tier supplier
parts) (e.g., windows)

2nd-tier supplier
1st-tier supplier
(e.g., auto glass)
(e.g., electronics)

Multi-tier suppliers Manufacturer Distributor

Value Chain/Supply Chain System

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 Benefit from Supply Chain

 Do you want to avoid supply chain?

EG: The market of vegetables

the sugar and sugar cane, beet

Well , You can get answer from figure!

 a. Without a wholesaler b. With a wholesaler

????
Factories Factories

wholesaler

Customers Customers

wholesaler: nhà bán sĩ

 a. Without a wholesaler b. With a wholesaler

Factories Factories

4 routes
inwards
32 routes
wholesaler

8 routes
outwards

Customers Customers

wholesaler: nhà bán sĩ

3. Activities of Logistics

 Procurement/purchasing (quản trị mua hàng).

 Inward transport or traffic management
(vận chuyển hàng nhập)

 Receiving (nhận hàng)

 Warehousing or stores (trữ hàng, tồn kho, lưu kho)

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3. Activities of Logistics (cont’d.)

 Stock control (kiểm soát tồn kho),

Order picking (gom hàng cho đơn hàng) and
Materials handling (vận chuyển nội bộ).
 Outward transport (vận chuyển hàng xuất)
 Physical distribution management (phân phối)
 Recycling (tái chế), returns (trả hàng) and waste
disposal (loại bỏ chất thải)
 Location (vị trí) & Communication (liên lạc)
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Summary of logistics activities
Procurement Physical distribution
Inward transport Outward transport
Returns

Receiving Picking
Consolidating
Warehousing
Stock control
Materials handling

Suppliers Operations Customers

Communications
Location
4. Aims of logistics

 When you buy an item, what kind of contents will be

take into your consider?
4. Aims of logistics
 Logistics is responsible for the flow of materials through a
supply chain. This function is also called supply chain
management.

 LOGISTICS is the time-related positioning of resources, or

the strategic management of the total supply-chain
 The SUPPLY-CHAIN is a sequence of events intended to
satisfy a customer.

 The overall AIM OF LOGISTICS is to achieve high

customer satisfaction. It must provide a high quality
service with low – or acceptable – costs.

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Development of logistics

pressures to the use of logistics

 Changes of Customers.
 Changes of Competition
 Other changes in retail markets
 International trade continues to grow.
 Organizations become to outsource peripheral
activities and concentrate on their core operations.
Current trends

 Improving communication
 Electronic data interchange (EDI)
 Electronic point-of-sales data (EPOS)
 e-purchasing of e-procurement
…
 Support of EDI:
 Item coding (often bar-coding)
 Electronic Fund Transfer (EFT) 41
Current trends
 Improving customer service
 Lower lead-times (giảm thời gian chờ hàng)
 synchronized material movement
 mass customization (chuyên biệt hóa/tùy biến theo khách
hàng với khối lượng lớn)
 Other significant tendencies
 Globalization
 Reduced number of suppliers
 Concentration of ownership (tập trung quyền sở hữu)
 Outsourcing (thuê ngoài).
 Make or Buy.
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 Current trends

 Other significant tendencies

 Cross-docking
 Direct delivery
 Stock reduction methods
 Increasing environmental concerns
 More collaboration along the supply chain

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 Current themes
 LEAN Logistics
 faster deliveries, reduce stock levels, reduce handling, lower
costs, reduce waste etc.
 AGILE Logistics
 flexible and responsive, customized service, respond quickly to
a changing demand.
 INTEGRATION Logistics
 co-operate with other organizations

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 Summary
❑ Every organization creates products to satisfy customer demand. The
operations that create these products need an effective and efficient flow
of materials. In this sense, ‘materials’ are all the goods and services
needed to create products.
❑ Logistics is the function that is responsible for the flow of materials
into, through and out of an organization.
❑ Materials move through a series of related activities and organizations
between initial suppliers and final customers. These form a supply chain.
Each product has its own supply chain.
❑ There are many possible structures for supply chains, but the simplest
view has materials converging on an organization through tiers of
suppliers, and products diverging through tiers of customers.
❑ Logistics consists of a series of related activities. These range from
procurement at the beginning of operations, through to physical
distribution at the end.

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Summary (cont.)
❑ An overall aim for logistics is to achieve high customer
satisfaction or perceived product value. This must be achieved
with acceptable costs.
❑ Every organization depends on the movement of materials, and
the way this is done affects costs, profits, relations with suppliers
and customers, customer service, and virtually every other
measure of performance.
❑ There are a lot of pressures for improving logistics. Current
trends are: Improving communication, Improving customer service,
some other significant tendencies.
❑ Current themes:
LEAN logistics, AGILE logistics, INTEGRATION logistics.

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