Part of SC Mngt that
plan/ implement/ ctrl effective flow & storage of G/S/info btw pts of origin & consumption to meet Cx req.
Logistics Mngt
6 Activities in Logistics
- Transportation
- Warehousing
- Matl Handling
- Packaging
- Inventory Mngt
- Logistics Info Sys.
4 Challenges & Opportunities of Logistics
- Info system advance
- Globalization markets
- Sustainability
- Delivery Speed & Reliability
5 Modes of Transportation
- Highway (Truck)
73% of total logistics value - Rail
- Air
↓ weight-to-value ratio - Water
↑ weight-to-value ratio - Pipeline
or Multimodal
Direct Truck
vs
LTL
shipping
Direct Truck:
No extra stops/ change truck/ extra cargo
LTL (Less than Truckload):
Smaller shipment combined with other loads
零擔運輸（拼車）
Cost of item = $2,000
Holding cost (H) = $365/yr
Opt A cost $80/10 days
Opt B cost $100/2 days
Calculate and select
In-Transit Hld Cost
$365/365=$1/day
Opt A: $80+$1x10
=$90
Opt B: $100+$1x2
=$102
Choose Opt A
A transportation solution that seeks multiple trans modes thru physical/ info/ monetary flows
Multimodal Solution
多式聯運
Any operations of store/ repachage/ stage/ sort/ centralize Goods or Matls
Warehousing
4 Adv of Warehousing
- Trans $ ↓
Consolidation/ Cross-docking/ Hub-n-Spoke - Operation Flexibility ↑
Postponement Whsing - Cx Lead Time ↓
Assortment & Spot Stock Whs - Inventory $ ↓
Inv Pooling & central Safety Stock
3 Forms of Warehousing
to ↓ Trans $
- Consolidation
Shipments input
→ 1 Large output - Cross-Docking
Large input
→ smaller outputs - Hub-&-Spoke
Hub: convenient sorting/transfer place
Spoke: routes to destinations
A form of Cross-Docking that incoming shipments are from single source or mfr
Break-Bulk Whsing
A Warehousing Form that combines classic warehouse w/ light mfg & pkgg to put off final assembly/ pkgg
Postponement Warehousing
2 Approaches to shorten Cx lead time
- Assortment Whsing
Hold wide arrays of goods for longer period - Spot Stock Whsing
Position seasonal goods
e.g. lawn care/ fashion/ recreation
3 Info System of Logistics
- Decision Support tools
Simulation Model &
Optimization Model
e.g. cost & travel time est./ # of containers/ locations of whs - Planning Systems
Select Carrier or develop Delivery Schedule - Execution Systems
most detailed, monitor systems and identify problems
e.g. use of RFID
___ involves equipment & procedures to move goods
- within a facility
- btw facility / trans
- btw diff. trans
Material Handling System
Goods & Matls packed to facilitate physical/ info/ monetary flows thru SC
Packaging
Inventory levels of
Trans Modes used
Slower & $ vs
Faster & $$$
in Inv Mngt
Slower & $
Inventory level ↑
Faster & $$$
Inventory level ↓
3 choices of outsourcing logistics
- case-by-case shipments
- long-term contractor
- handle all logistics req.
- Common Carriers
- Contract Carriers
- 3rd-Party Log. Prov.
A measure of logistics
- Delivered by requested date
- Shipped complete
- Invoieced correctly
- Undamaged
Perfect Order (%)
indicates effectiveness
. (all orders - imperfect orders)
= ——————————-
. all orders
A measure of logistics
= Prod Cost
+ Trans + Whs + Hndlg + Custom + …
Landed Costs
indicates efficiency
An Intermediary Agent btw prod shipping org & actual carrier. (Typically international shipments)
Freight Forwarder
貨運代理
A complete SC for flow of returns/ repair/ re-mfr/ recycling
Reverse Logistics System
Why firms use
Reverse Logistics System?
- Cx Satisfaction
- Harvest Matl/Parts
- Sustainability req.
Challenges of
Reverse Logistics System
- Flexible ↑ & Cost Efficient ↓
compare to Forward-based - Forward ≠ Reverse
separate physical operations
