1. What are the key challenges in Victoria's Secret supply chain?

There are critical processes that make up the Victoria’s Secret’s supply chain as: 1)Product Design
and Product Launch; 2) Merchandise Planning, Allocation and Forecasting; 3)Production &
Sourcing; 4) Logistics; and 5) Store Operations. A design idea, from the point it is conceptualized
to the point the product is delivered to the Victoria’s Secret Stores, termed by the company as
“Concept-To-Market”, traverses through each of these processes comprising the supply chain.

We note that Victoria’s Secret’s business strategy has evolved from a shop-and-copy system to
abranded concept, that of selling innovative, technologically advanced products at reasonably high
profit margins. At the same time, the company is somewhat risk averse and does not rely solely on
its fashionable bra launches for all of its sales. It distributes risk by having a mixed assortment of
fashion and basic goods, which in turn adds complexity, in that the brand has to operate two
supply chains; one for each of these types of products.

2. How they deal with such challenges?

They introduce the underlying operating model, operational objectives and important tailored
business activities that drive sustained competitive advantage within the Victoria’s Secret supply
chain and align with the overarching business strategy.

The operating model at Victoria’s Secret Stores is to achieve desired brand recognition through
innovative product development, glamorous bra launches and high shelf availability of its products.
Most of the Victoria’s Secret Stores’ new product introductions are offered in both fashion (items
with less predictable demand) as well as basic (stable demand) styles. This mix of fashion and
basic items helps Victoria’s Secret to distribute risk, to ensure profitability and to offer compelling
value to customers. The company identifies that there is not a single all-in-one supply chain
solution for both of these categories of products and therefore it maintains different supply chains
for each product category. The supply chain for Victoria’s Secret’s fashion items is driven by
“Speed-to-Market” to ensure responsiveness. This supply chain is governed by a sourcing strategy
that requires a set of suppliers with an excellent record of product innovation, value-adding
capabilities and no minimum volume requirements. For this category of products speed is
prioritized overlow labor cost.
What is Third Party Logistics?
Third-party logistics A third-party logistics provider (abbreviated as 3PL) is a company that provides
outsourcing or "third party" logistics services to companies for some or sometimes all of their supply chain
management functions. Third-party logistics providers usually specialize in integrated warehousing and
transportation services that can be upgraded and adjusted to customers' needs based on market
conditions and service delivery requirements and requirements for their products and materials.
3PL Logistics performs tasks such as quoting, ordering, routing, and auditing, but does not need to have
warehousing facilities, vehicles, aircraft, or other transportation assets. Type 3PL may have only tables,
computers, and industrial goods expertise. To be useful, this type of provider must show customers the
benefits in terms of finance and operations by utilizing extraordinary expertise and capabilities in the fields
of operations, negotiation, and customer service in a way that complements existing customers' physical
assets.

2. What is their key role in modern logistics?

 Pacing (accuracy), retailers must develop a global outlook. Currently product components are
supplied from various countries. Manufacturers and retailers must find the cheapest source of product
supply and the most efficient logistics costs

 Availability is the key to success. Retailers must ensure products are available both in stores and
online. Logistics plays an important role in ensuring the availability of products in the store and the
accuracy of product delivery to consumers

 Information, not only the physical movement of products, needs to be considered in retail logistics.
Product flow information is very important for forecasting sales planning, product ordering,
determining inventory levels, storing products in warehouses, managing transportation, and storing
 products on retail store shelves. The application of a reliable ICT logistics system is the key to
success in retail logistics management information systems

3. Why apparel industry is suitable to become their customer?

Because the speed of the company to commercialize business opportunities to market, the speed of the
company in meeting customer orders, and the speed of the company in adjusting fluctuating demand
changes. The time-based competition approach encourages companies to develop lead-time strategies in
business management.
 Session 7. Logistics Challenge in Industry 4.0

1. What is the Logistics Key Challenge in Industry 4.0?

The demand for high-customised products and services is continuously increasing. Thus, inbound and
outbound logistics must adapt to this changing environment. Due to its increasing complexity, it cannot be
handled with ordinary planning and controlled practices:
Industry 4.0 is the sum of all disruptive innovations derived and implemented in a value chain to address
the trends of digitalization, autonomation, transparency, modularization, transportation and distribution.
The following five processes with the impact of industry 4.0 are discussed below-

 Digitalization- The company’s internal processes, product components, communication channels

and all other key aspects of the supply chain are undergoing an accelerated digitalization process.
The digitalization process itself is the most important characteristic feature and enables all other
categorizing features that may include a rise in the 4PL providers. Disruption must be expected as
the shift in technology enables new players to enter the 4PL market.
 Transparency– While global supply chains are characterized by highly complex structures, the
available “Industry 4.0” technologies are increasing the transparency of the whole value creation
process. Through this increase in transparency, decision-making in the company will be more
collaborative and efficient. Not only the supply chain processes but also the behavior of corporate
partners and customers will be more transparent to the company.
 Autonomation- Industry 4.0 technologies and concepts are enabling machines and algorithms of
future companies to make decisions and perform learning-activities autonomously. This autonomous
decision-making and learning is based on man-made algorithms and enables whole factories and
manufacturing facilities to work with minimum human-machine interaction.
 Modularization– Industry 4.0 technologies are enabling the modularization of products and the
whole value creation process, e.g. manufacturing facilities. Modular production facilities can be
adjusted in their quantity autonomously, which is increasing the flexibility of the production processes.
 Transportation and Distribution- The distribution activities will be re-thought and new technologies
will be implemented as well since with transporting systems performing autonomous decisions based
on pre-implemented algorithms, the logistics processes are already within the autonomation process.
Algorithms may also enable products to make autonomous decisions during outbound-logistics
activities in the digitalized supply chain of the future.

2. How the cope with such challenge?

Governments need to address four key areas if they hope to harness the full potential of 4IR.
First, governments must cultivate as full an understanding of the future as possible, knowing what the
opportunities and risks ahead are, as well as what their applications would be to the world, to individual
countries, and to the specific workings of government. Governments also need to be smart when
scanning the horizon; the advent of the Fourth Industrial Revolution adds to the pressure on governments
to become future-savvy.
Second, they need to ensure their countries have the infrastructure in place to benefit from the enormous
advantages of technological change, and they need to address the risks of cybersecurity —whether
criminally or politically motivated. Government needs to be an enabler of change, even if it does not itself
seek to “pick winners” or manage the market.

3. How you prepare yourself to win the challenge as the individual?

There are numerous individual approaches that governments could take to deal with the challenges of the
Fourth Industrial Revolution. Here are four:

 Managing the Market. The European Union has begun to articulate a “Digital Single Market” strategy
based on the member states acting in concert, and setting a framework of rules within which it
expects technological change to take place. The aim is to try to ensure stability and fairness for all.
The risk is that either the EU will be unable to control the Exponential Organizations at the leading
edge of technology, or the EU is seen as resistant to change and becomes an increasingly
unattractive place for inward investment, leading to chronic economic decline.
 Taking Control. Large countries with no strong traditions of liberalism and democracy may try to take
ownership of new technologies and use them for their own ends, whether for economic and domestic
political ends, as in China, or for more aggressive ends. The risk is that freer countries are able to
make faster progress and quickly develop new business and social models, while the “taking control”
countries are playing catch-up.
 Open for Business. Governments, especially (but not only) smaller ones, may not be able to control
4IR, but may choose to surf the wave instead by doing all they can to attract inward investment, such
as by structuring attractive tax regimes, light-touch regulations, investment in infrastructure (such as
5G) and openness to trade with other parts of the world. Singapore would be a classic example of
such a country. Although it is part of the EU, Ireland has pursued a strikingly similar path. U.K. Prime
Minister Theresa May’s recent pronouncements indicate this is the path the U.K. seeks to travel.
 Hands-Off. Governments might decide that the logical solution to integrating new technology, which
will empower both large corporations and, potentially, local communities (via blockchain currencies
and local energy generation), is that governments should radically downsize by devolving more
functions to regional and local levels, retaining only a few key functions, including defense and
security, and foreign and trade relations. A government that willingly gave up power: now that would
be revolutionary. None are doing it yet.
Evolotion processes of logistics (wang, 2016)

 Logistics has undergone three of revolutionary changes in the past. The first innovation (Logistics
1.0) is caused by "mechanization of transport" from the late 19th century and early 20th century. The
second innovation (Logistics 2.0) is driven by "automation of handling system" from the 1960s. The
third innovation (Logistics 3.0) is represented by "the system of logistics management" from the
1980s. Now we are in the beginning of the fourth innovation of logistics, which is called Logistics 4.0.
The main driven force is IOT&S (Internet of Thing and Service).

Challenge and solution logistic 4.0

 Challenge : Nofrisel (2018) the main challenge in the Industrial Revolution 4.0, which must be
overcome by the national logistics business through automation, artificial intelligence (AI) technology,
and internet of things (IoT) is considered to have an influence on industrial performance which
automatically affects logistics performance and national supply chain.
 Solution : lip (2018) utilizing artificial intelligence (AI) technology and internet of things (IoT), so that
service automation can be adjusted according to customer needs, both for business to business
(B2B) and business to customer (B2C) consumers.
o the example of using digital technology in the logistics industry is what PT Semen Baturaja,
 The company is plotting truck-drivers (assignments) which include the number of sacks, total
load weight, truck data and driver data, as well as recording trips by trucks from the point of
departure to the destination using the Android application (driver). the driver and customer can
find out the estimated path of the trip to be passed, the determination of real-time departures and
arrivals stored in the database, as well as more planned trips according to the delivery schedule.
In the end, shipping goods can be more timely and unexpected costs can be better anticipated.

 How you prepare yourself to win the challenge as the individual,

o maybe, employees are required to understand digital literacy before era abundance

For example, the marketing team is equipped with marketing 3.0, the core of marketing 3.0 is
marketing that humanizes customers

1. What is the Logistics Key Challenge in Industry 4.0?

Internet of Things (IIoT) is one of the logistic key challenge in indutry 4.0. The emergence of the Industry
Internet of Things (IIoT) promoted new challenges in logistic domain, which might require technological
changes such as: high need for transparency (supply chain visibility); integrity control (right
products, at the right time, place, quantity condition and at the right cost) in the supply chains.
2. How the cope with such challenge?
The demand for high-individualized products and services is continually increasing. Thus, inbound and
outbound logistics have to adapt to this changing environment. Due to its increasing complexity, it cannot
be handled with ordinary planning and control practices. “Smart Logistic” is a logistics system, which
can enhance the flexibility, the adjustment to the market changes and will make the company be
closer to the customer needs. This will make possible to improve the level of customer service, the
optimization of the production and make lower the prices of storage and production. As the “Smart
Logistics” will change accordingly to the actual technology driven, it has a time dependency and thus it is
essential to define the state of the art of the technology. This new paradigm is the result of the increase
use of Internet that enables the communication between each other machines and humans in real
time and the use of what is known as advanced digitalization. An efficient and strong Logistics 4.0
must rely and use, in our point of view, the following technological applications: 1) Resource
Planning, 2) Warehouse Management Systems, 3) Transportation Management Systems, 4)
Intelligent Transportation Systems and 5) Information Security.
3. How you prepare yourself to win the challenge as the individual?
I prepare myself to face the era of industry 4.0 with knowledge of technology, integration and automation,
especially those related to e-commerce, because e-commerce is one of the businesses that is growing
rapidly in the industrial era 4.0. In addition, I will study various computer applications that will further
facilitate my work towards the digital revolution
 Session 5. Integrated Logistics System: Coca-Cola

1. What is the key challenges in Coca-Cola logistics system?

Coca cola applicated supply chain management concept well on their manufacturing. They used
automatic distribution logistic inside of their factory, and using system automatic to control all stock
process that could be monitored by the PC.

2. What is the great features in Coca-Cola logistics system?

In the Coca-Cola Company, information builds the connection between various stages in SC and allows
coordination between stages .The company use SAP ERP web base software to get real time information
from the field. They requires information to plan their production, marketing campaign, demand
forecasting ,inventory level and optimizing transportation etc. Information is the key to successful supply-
chain management because no product flows until information flows

3. How is the logistics strategy is implemented by Coca-Cola?

Coca cola supply chain divided as parts for good supply chain. Coca cola company gets in formations
from this information they will decide the manufacturing quantity .For a better supply chain information
follow and material follow want to be very efficient and affective
According to the information follow and orders they make plans about manufacturing . They keep stock in
warehouses for the demand and orders then company will distribute the stock for customer.Using
material and inventory control systems , cooperative supplier-buyer customer relations through the use of
JIT and TQM. Warehouse layout and designs to increase the efficiency of operations for incoming
materials . Provides on-site storage to eliminate off site to warehouse cost
 Session 4. The Digitization of Shipping Logistics
What is the key challenge in Formula 1 logistics?
What is the logistics strategy that has been implemented to cope with the key challenge?

Based on the case study in video, what happens to shipping logistics before and after the
digitization?
In my opinion, Digitization may not help break ships any faster, but technology's promise to improve
capacity utilization should help shipping lines realize measure capacity need based on full-booking data
rather than vessels needed to operate a set route of schedules. While improved utilization will only
exacerbate the shipping industry's available supply in the short-term, the long-term benefits will allow
greater line efficiency.

The shipping alliances model already attempts to correct this problem as slot-exchanges and vessel
sharing agreements help individual shippers transport goods despite the availability of a specific carrier's
ship (as long as they are in an agreement).

Now, A.P. Moller-Maersk is adopting digital technology to ensure freight forwarders, shippers and vessels
can track and communicate capacity needs. The Danish line recently launched an app allowing shippers
to view routes or route changes, receive push notifications and schedule confirmation. Similarly, the ports
of Los Angeles, Long Beach, and New York/ New Jersey will soon participate in a national supply chain
information-sharing portal to decrease inefficiencies.
These efficiency efforts, combined with shipping lines' continued scrapping, rising gas prices are all aimed
at returning container shipping rates to sustainable levels while improving individual competitiveness.
 Session 2. Introduction to Supply Chain Management

What is Supply Chain Management?

- Management flow goods and services , its including movement and storing raw material , working
process inventory and finished good to end user customer

Why it's so important to be considered?

- To ensure all critical part process has been identified as supported in decision company to be more
effective and efficient to deliver product to end customer.
What are the key elements of it?
- There are 4 flow entities :
1. Flow of primary product/physical material from supplier to the end
- example : Material,component,supplies,service,finished products
2. Flow of primary cash flow from customer to raw material supplier
- example : payments of product, supplies
3. Information flow
- example : Invoice, sales literatur,spesification,receipt,orders ,rules&regulation
4. Reverse flow product return
- example : return of repair,replacement,recycling and disposal
3. What are the key elements of it?
The key to the application of scm good in the company is:
1.Reactive
The key to the application of these activities is a company must move quickly on changes in demand
given by their customers or sensitive to conditions that are trending on the market, for example, price
features products, , product quality or the other thing.
2.Stable
Companies should be able to maintain main kunci-kunci, of products to keep gain the confidence of the
market, both in terms of price, the quality of, the number of, , features and the company must also be able
to keep the operational costs the company to be able to give an advantage to companies
3.Efficiency reactive
Companies should must be apllying mprovement activity well, so that the price of the product, product
quality , process and the system remains good, and the company could keep the good effisiensi.
 Session 1. Introduction to Logistics System
Logistics is defined as “the art and science of obtaining, producing, and distributing material and product
in the proper place and in proper quantities.” It is a rapidly evolving business discipline that involves
management of order processing, warehousing, transportation, materials handling, and packaging—all of
which should be integrated throughout a network of facilities.
Logistic in Supply Chain Management : The supply chain is about “moving” - or “transforming” - raw
materials and ideas into products or services and getting them to customers. Logistics is about moving
materials or goods from one place to another. Logistics is, in that sense, the servant of design,
production, and marketing. But it is a servant that can bring added value by quickly and effectively doing
its job. The following areas of logistics management contribute to an integrated approach to logistics
within supply chain management.
Logistics Value Proposition : The logistics value proposition stems from a unique commitment of your firm
to an individual customer or select group of customers. The value stems from your ability to know exactly
how to balance logistics costs against the appropriate level of customer service for each of your key
customers.
Logistics Goals and Strategies: At the highest level, logistics management shares the goal of supply
chain: “to meet customer requirements.” There are a number of logistics goals that most experts agree
upon:

 Respond rapidly to changes-in the market or customer orders.

 Minimize variances in logistics service.
 Minimize inventory to reduce costs.
 Consolidate product movement by grouping shipments.
 Maintain high quality and engage in continuous improvement.
 Support the entire product life cycle and the reverse logistics supply chain.

An effective logistics management strategy depends upon the following tactics:

 Coordinating functions (transportation management, warehousing, packaging, etc.) to create

maximum value for the customer.
 Integrating the supply chain.
 Substituting information for inventory.
 Reducing supply chain partners to an effective minimum number.
 Pooling risks.

Thank you
Source : http://www.aims.education/study-online/what-is-logistics-management/