supply chain logisics

8/8/2019 Supply Chain Logisics

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MODULE 7


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` Origins date back to the military around WWII

Gulf War regarded as a logistics war;

` Emphasis on Quality and meeting customer

requirements

` order fulfillment

` Competitive advantage.

` Profitability.


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` Logistics is the process of anticipating customers

needs and wants, acquiring the capital, materials,

people, technologies and information necessary to

meet those needs and wants, optimizing thegoods- or service-producing network to fulfill

customer request and utilizing the network to fulfill

customer requests in a timely way.


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` Macro dimensions

` Micro dimensions


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` Logistics impacts and its relationship with

economy

` Cost associated with logistics

` GDP` Rate of growth in the economy.


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` CARRYING COSTS

Interest

Taxes, depreciation, insurance

Warehousing

` TRANSPORTATION COSTMotor carriers

Truck

Other carriers

Rail roads, water ,oil pipelines

Air

Forwarders

` LOGISTICS ADMINISTRATION


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` Four principal types of economic utility add value

to product or services.

FORM UTILITY

PLACE UTILITY TIME UTILITYTIME UTILITY

POSSESSION UTILITY


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` LOGISTICS INTERFACES WITH OPERATIONS/

MANUFACTURING

` LOGISTICS INTERFACE WITH MARKETING

` LOGISTICS INTERFACE WITH OTHER AREAS.


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` Length of production runs

` Seasonal demand

` Supply-side interface

` Protective packaging` Foreign and third party alternatives


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` Marketing mix

` PRICE

` Carrier pricing

` Matching schedules

` PRODUCT

` Consumer packaging

` PROMOTION

` Push versus pull

` Channel competition` PLACE

` Wholesalers versus retailers


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` Traffic and transportation` Warehousing and storage

` Industrial packaging

` Material handling

` Inventory control

` Order fulfillment` Demand forecasting

` Production planning

` Purchasing

` Customer service levels

` Plant and warehouse site location

` Return good handling

` Parts and service support

` Salvage and scrap disposal


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` Transportation - physical movement or flow of goods` Storage - inventory management and warehousing` Packaging - affected by product and transportation` Materials handling - movement in, from, and within a

warehouse` Order fulfillment - completing customer orders,

affects lead time`

Forecasting - predicting inventory necessary to fulfillcustomer demand` Production planning - product necessary to cover

market` Purchasing - procurement of supplies, affects

transportation


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` Materials Management versus Physical

Distribution Balanced System

Heavy Inbound Heavy Outbound

Reverse Systems

` Cost centers Trade offs


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` Nodes versus links

nodes - points where goods stop for

processing

links - transportation connecting nodes

` Logistics Channels - network of

intermediaries that contribute to efficient

flow of goods


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` System - is a set of interacting elements,

variables, parts or objects that are functionally

related to one another and that form a coherent

group.` Optimization always the best alternative (water

transportation example)


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` Levels of optimality Delivery timeframes

` Functional relationships

Interdepartmental cooperation` Constraints


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` Short-Run/Static Analysis Look at short run situation and select the system with the

lowest overall cost.

`

Long-Run/Dynamic Analysis Mathematically calculate the point of equality between

the two systems


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` COMPETITIVE RELATIONSHIPS

` PRODUCT RELATIONSHIPS

` SPATIAL RELATIONSHIPS


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` LENGTH OF ORDER CYCLE

` NATURE OF PRODUCT

` RELATIONSHIP TO LOST SALES

` RELATIONSHIP TO TRANSPORTATION


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` Dollar Value - product value increases, cost ofwarehousing, transportation and inventoryincreases

` Density- higher the density, more efficient use ofwarehouse and transportation space

` Damage -greater the risk of damage, higher thetransportation and warehousing cost

` Special Handling Requirements


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` Spatial Relationships

Distance Factor

supply chain logisics

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