Chapter 8: Logistics Flashcards
According to the council of supply chain management professionals (cscmp), “that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”
Logistics management
Performing activities in a manner that meet the needs of the present without compromising the ability of future generations to meet their needs
Sustainability
A shipment made directly, with no additional stops, changing of trucks, or loading of additional cargo
Direct truck shipment
A smaller shipment, often combined with other loads to reduce costs and improve truck efficiencies
Less than truckload (LTL) shipment
A transportation solution that seeks to exploit the strengths of multiple transportation modes through physical, information, and monetary flows that are as seamless as possible
Multimodal solution
A specialized rail car the size of a standard truck trailer that can be quickly switched from rail to ground transportation by changing the wheels
Roadrailer
Any operation that stores, repackages, stages, sorts, or centralizes goods or materials. Organizations use this to reduce transportation costs, improve operational flexibility, shorten customer lead times, and lower inventory costs
Warehousing
A form of warehousing that pulls together shipments from a number of sources (often plants) in the same geographic area and combines them into larger—and hence more economical— shipping loads
Consolidation warehousing
A form of warehousing in which large incoming shipments are received and then broken down into smaller outgoing shipments to demand points in a geographic area. This combines the economies of large incoming shipments with the flexibility of smaller local shipments
Cross-docking
A specialized form of cross-docking in which the incoming shipments are from a single source or manufacturer
Break-bulk warehousing
A form of warehousing in which strategically placed hubs are used as sorting or transfer facilities. The hubs are typically located at convenient, high traffic locations. The “spokes” refers to the routes serving the destinations associated with the hubs
Hub and spoke system
A type of truck trailer that is half the size of a regular truck trailer
Pup trailer
A form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment
Postponement warehousing
A form of warehousing in which a wide array of goods is held close to the source of demand in order to ensure short customer lead times
Assortment warehousing
A form of warehousing that attempts to position seasonal goods close to the marketplace. At the end of each season, the goods are either liquidated or moved back to a more centralized location
Spot stock warehousing
A system that includes the equipment and procedures needed to move goods within a facility, between a facility and a transportation mode, and between different transportation modes (ex/ ship to truck transfers)
Material handling system
From a logistics perspective, the way goods and materials are packed in order to facilitate physical, informational, and monetary flows through the supply chain
Packaging
A functional strategy which ensures that an organization’s logistics choices—transportation, warehousing, information systems, and even form of ownership—are consistent with its overall business strategy and support the performance dimensions that targeted customers most value
Logistics strategy
A transportation service provider that handles shipments on a case by case basis, without the need for long-term agreements or contracts
Common carrier (public carrier)
A transportation service provider that handles shipments for other firms based on long term agreements or contracts
Contract carrier
A service firm that handles all of the logistics requirements for other companies
Third-party logistics provider (3PL)
A term used to refer to the timely, error-free provision of a product or service in good condition
Perfect order
The cost of a product plus all costs driven by logistics activities, such as transportation, warehousing, handling, custom fees, and the like
Landed cost
An agent who serves as an intermediary between an organization shipping a product and the actual carrier, typically on international shipments
Freight forwarder
