Chapter 8: Logistics Resource Management

Question 0

LRM Key Functions

Answer 0

1. Warehouse management
2. Transportation management
3. Logistics performance measurement

Question 1

Logistics Resource Management (LRM) defined…

Answer 1

the process whereby manufacturers, distributors, and suppliers store and move their products through the supply chain to their customers.

Question 2

LRM Process Capability Framework Involves 3 Critical Processes

Answer 2

Planning/Collaboration
Transaction
Execution

Question 3

History of Internet-Enabled LRM

Answer 3

Mid 1990’s: two types, targeting cost reduction, often based on simple WWWW bulletin boards

1. Logistics auctions
2. Spot markets

By 2005, we have 6 types:

1. Warehouse exchanges
2. Transportation exchanges
3. Transportation Network Infrastructure
4. 3PL
5. Collaborative Logistics Networks
6. Network Services

Question 4

Logistics managers today have a wide variety of IT toolsets for examining logistics data…

Answer 4

• Analytic & modeling tools
• Visibility tools
• Track & trace tools
• Administration management tools

Question 5

Examples of IT Warehouse Automation

Answer 5

Barcode scanning 
High stackers 
Conveyers/robotics 
Flow racks 
AS/AR Systems 
Automated inventory control 
Automated carousels

Question 6

LSP Types

Answer 6

3PL

• Limited focus standardized services
• Leveraging cost cutting for SCM
• Opportunistic technology orientation for improving 3PL processes

4PL or “Lead Logistics Provider”

• Aggressive
• Menu of many modular services
• Want to manage end-to-end logistics
• Assemble and manage dynamic organizations
• Supply chain Configurator firms

Question 7

LSP Technology Challenges

Answer 7

• Complex legacy applications
• Aging IT infrastructure
• Multiple data repositories
• Complex point-to-point integrations

Question 8

LSP Partnership Challenges

Answer 8

• Partnership flexibility
• Defined cost of services
• Solving the human side of outsourcing
• Realistic expectations
• Technology misunderstandings
• Partnership commitment
• Retain core skills

Question 9

LRM Strategy: Part 1 - Internal

Answer 9

• Logistics analysis strategy and existing logistics capabilities.
• Examine LRM’s support for the customer strategy.
• Select a technology solution.
• Gain company buy-in of stakeholder groups.
• Start small: quick wins and phased implementations.
• Measure performance and audit against plans and expected benefits.

Question 10

LRM Strategy: Part 2 - Partner Selection

Answer 10

• Evaluate strength of LSP.
• Select a compatible, scalable LRM/LSP technology solution.
• Make sure LRM/LSP solution will control logistics information well.
• 3PL/4PL services and capabilities should be beneficial and substantial.
• Examine prior customer successes and failures using vendor.