StLouis2008Bowersox

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Published on January 9, 2009

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Logistics: Past, Present, and Future : Logistics: Past, Present, and Future Dr. Donald J. Bowersox Distinguished University Professor and Dean Emeritus Michigan State University Consortium for Supply Chain Studies St. Louis University October 23, 2008 © Bowersox 2008 THE BIRTH OF A DISCIPLINE : THE BIRTH OF A DISCIPLINE LOGISTICS: Past, Present, and Future © Bowersox 2008 Slide 3:  Historical Milestones In Conceptualization: Shifts in Logistical Thinking Transportation Efficiency 3000BC Total Cost Awareness 1950AD Customer Service 1955 Comprehensive Outsourcing 1965 Operational Integration and Quality (Six Sigma) 1975 Financial Positioning and Operational Excellence 1985 Globalization 1990 Customer Relationship and Enterprise Extension 1995 Supply Chain Integrative Management 2000 Responsive Supply Chain Management 2005 Supply Chain Sustainability 2008 Logistics as a Discipline : Logistics as a Discipline Integrated Body of Knowledge Constructs That Explain Interrelationships Framework For Prediction Empirical Documentation © Bowersox 2008 Logistics Defined : Logistics Defined Time and Place Positioning Least Total Landed Cost Asset Minimization Supply Chain Connectivity and Visibility Top Line Revenue Growth Sustainability The process of moving and positioning inventory to meet customer requirements at the lowest possible total landed cost. © Bowersox 2008 Logistics Structure : Logistics Structure © Bowersox 2008 Logistics Management Defined : Logistics Management Defined The managerial responsibility to design and administer a system to control the flow and positioning of material, work-in-process, and finished inventory to support business strategy © Bowersox 2008 Logistics Cost and Value : Logistics Cost and Value Gained Senior Management’s Attention by Creating Awareness that The Logistics of Business is Big Business © Bowersox 2008 Slide 9: Logistics of Business is Big Business Total Logistics Expenditure of United States Firms In 2008 Will Exceed 10% of GNP. The Global Logistics Expenditure In 2008 Will Exceed $8+ Trillion (US). © Bowersox 2008 Slide 10: 1980 Year 2007 $ Billion Logistics of Business is Big Business 1980 • GDP $2.80 trillion · Logistics Cost $451 billion • 16.1% of GDP · Transportation Cost $214 billion • 47.5% of Logistics Cost 2007 • GDP $13.84 trillion · Logistics Cost $1.397 trillion • 10.1% of GDP · Transportation Cost $856 billion • 61.3% of Logistics Cost Source: The Council of Supply Chain Management Professionals’ “19th Annual State of Logistics Report® June 18, 2008 © Bowersox 2008 Logistics Value Proposition : Logistics Value Proposition Configure in a customer relevant way while simultaneously increasing quality, productivity and operational excellence. © Bowersox 2008 Logistics Value Proposition : Service Excellence – Effectiveness Logistics Value Proposition © Bowersox 2008 Logistics Value Proposition : Cost Minimization and Avoidance – Efficiency Service Excellence – Effectiveness Logistics Value Proposition © Bowersox 2008 Logistics Value Proposition : Customer Value Creation – Relevancy Cost Minimization and Avoidance – Efficiency Service Excellence – Effectiveness Logistics Value Proposition © Bowersox 2008 Logistics Value Proposition : Continuous Improvement – Sustainability Customer Value Creation – Relevancy Cost Minimization and Avoidance – Efficiency Service Excellence – Effectiveness Logistics Value Proposition © Bowersox 2008 EERS Value Performance Model : EERS Value Performance Model © Bowersox 2008 Spanning Enterprise Boundaries : Supply Chain Management When a firm’s management implements a strategic initiative to align suppliers and distributors into collaborative relationships to gain competitive advantage. Spanning Enterprise Boundaries © Bowersox 2008 Slide 18: THE INTEGRATED SUPPLY CHAIN FRAMEWORK SUPPLY NETWORK Information, Product, Service, Financial and Knowledge Flows M A T E R I A L S Capacity, Information, Core Competencies, Capital and Human Resource Constraints Relationship Management Procurement E N D C O N S UM E R S INTEGRATED ENTERPRISE MARKET DISTRIBUTION NETWORK Customer Relationship Mgt Manufacturing Logistics © Bowersox 2008 Integrated Supply Chain Performance : Integrated Supply Chain Performance Cycle Time Compression – 10X OTD Visibility Point-In-Time Performance One Informed Voice (SPOC) Immaculate Recovery Synchronized Operating Environment © Bowersox 2008 THE BIRTH OF A DISCIPLINE : THE BIRTH OF A DISCIPLINE LOGISTICS: Past, Present, and Future © Bowersox 2008 Observations From The Field : Observations From The Field Continuous Cost Pressure Concept of Functional vs. Total Supply Chain Cost Greater Connectivity & Access to Information Myth and Potential of Collaboration Paradigm Shift – Start Pulling Your Chain © Bowersox 2008 21st Century Leadership : 21st Century Leadership Flat and Global Organizations Require Decentralized Decision Making The Leadership Model Of The 20th Century Has Changed © Bowersox 2008 21st Century Leadership : 21st Century Leadership The Majority of Supply Chain Decisions are Made Outside of the Vision of Supervision Flat and Global Organizations Require Decentralized Decision Making © Bowersox 2008 21st Century Leadership : 21st Century Leadership Accountability without Direct Responsibility Flat and Global Organizations Require Decentralized Decision Making The Majority of Supply Chain Decisions are Made Outside of the Vision of Supervision © Bowersox 2008 21st Century Leadership : 21st Century Leadership The 21st Century Leadership Model Will Increasingly Become A Balance and Mixture Of: Leadership Managership Followership Flat and Global Organizations Require Decentralized Decision Making The Majority of Supply Chain Decisions are Made Outside of the Vision of Supervision Accountability without Responsibility © Bowersox 2008 21st Century Leadership : 21st Century Leadership The Blend Changes over a Successful Career Flat and Global Organizations Require Decentralized Decision Making The Majority of Supply Chain Decisions are Made Outside of the Vision of Supervision Accountability without Responsibility The 21st Century Leadership Model Will Increasingly Become A Balance And Mixture Of: Leadership Managership Followership © Bowersox 2008 Time Allocation Across A Successful Career : Time Allocation Across A Successful Career © Bowersox 2008 THE BIRTH OF A DISCIPLINE : THE BIRTH OF A DISCIPLINE LOGISTICS: Past, Present, and Future © Bowersox 2008 21st Century Supply Chain Management : 21st Century Supply Chain Management From Global Electrification to Infofication of the Universe The Power of Low Cost “Grids” © Bowersox 2008 21st Century Supply Chain Management : 21st Century Supply Chain Management The Challenge of Transformation - Reinventing The Industrial Age Enterprise From Global Electrification to Universe Infofication © Bowersox 2008 21st Century Supply Chain Management : 21st Century Supply Chain Management Living and Working in a Many-To-Many Web-based Network Environment The Challenge of Transformation--Reinventing The Industrial Age Enterprise From Global Electrification to Universe Infofication © Bowersox 2008 21st Century Supply Chain Management : 21st Century Supply Chain Management Nano-genome Supply Chain Technology- Did He say “Beam me up Scotty! There is no intelligent life here”? Living and Working in a Many-To-Many Web-based Network Environment The Challenge of Transformation--Reinventing The Industrial Age Enterprise From Global Electrification to Universe Infofication © Bowersox 2008 Conclusion : Conclusion © Bowersox 2008

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