M2S1 Flashcards
Treat the many different elements that come under the broad category of distribution and logistics as one single integrated system.
Total Logistics Concept (TLC)
recognition that the interrelationships between different elements, for example delivery transport and storage, need to be considered within the context of the broader supply chain.
Total Logistics Concept (TLC)
An understanding of the concept is especially important when planning for any aspect of distribution and logistics.
Total Logistics Concept (TLC)
4 Different Levels
Within logistics components
Between logistics components
Between company functions
Between the company and external organization
This refers to the trade-offs that occur within single functions (eg warehousing).
Within logistics components
These are the trade-offs that occur between the different elements in logistics.
A company might increase the strength and thus the cost of packaging but find greater savings through improvements in the warehousing and storage of the product (ie block stacking rather than a requirement for racking)
Between logistics components
There are a number of areas of interface between company functions where trade-offs can be made
Between company functions
There may be opportunities for a trade-off between two companies that are directly associated with each other.
Between the company and external organization
These types of trade-offs are thus at the heart of the total logistics concept.
Trade-off Analysis
planning of distribution and logistics, it is important to take this overall view of a logistics system and its costs. The equation is, of course, the need to provide the service level that is required by the customer.
Trade-off Analysis
This balance of total logistics cost and customer service level is essential to successful logistics.
Trade-off Analysis
