Logistics, Value Network Integration, & Supply Chain Management

Definition of Logistics

• The definition of logistics adopted by the Council of Logistics Management 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." Note that this definition includes inbound, outbound, internal, and external movements, and return of materials for environmental purposes.

Definition of Value Network Integration (VNI)

• Our definition of value network integration, evolves from the following statement by Bill Gates: "The old phrase supply chain implies links in a linear relationship, looking back from the retailer to distribution to transportation to manufacturing....Today's approach is that of a 'value network'....Everyone who touches the product must add value, and communications go both forward as well as back.  Companies in the value network aren't restricted to their places in line by heavy chains of process but can interact and do business with multiple vendors as they need to." (Business @ The Speed Of Thought)

Definition of Supply Chain Management (SCM)

• The definition of supply chain management adopted by the Ohio State University's Global SCM Forum is "the integration of business processes from end user through original suppliers, that provide products, services, and information that add value for customers."

ERP and SAP R/3 Implementations

• The most difficult aspects of SAP implementation have nothing to do with software.  Rather, they center around the human and organizational consequences of massive change.  This is also where the major impediments to speedy results are encountered. (Hammer)

• A key to having a successful value network is the integration of logistics activities and processes. SAP R/3 is what senior executives of US Fortune 1,000 firms are turning to as a necessary reengineering and integrative tool, (1) to help their organizations manage logistics activities and processes, and (2) to improve the value and effectiveness of service to customers without lowering quality.
• Key executives contemplating implementing SAP R/3, who need project recommendations and advise, should contact us.
• P.C. Nolan, Inc. can offer this unique service and help you "use information technology (ERP & SAP R/3) to manage."

Link to Council of Logistics Management
Member
The professional organization for individuals who have an interest in logistics management.