Week 2 Role of logistics in SC's Flashcards
management of the flow of things from the point of origin to the point of consumption
logistics
whats being moved in logistics
- products
- information
- payments
Logistics can be viewed as part of organizational management with four major subdivisions
- business logistics
- military logistics
- event logistics
- service logistics
Part of supply chain, that plans, implements, and controls the flow of storage of goods, services, and related information
Which subdivision of logistics is this?
Business logistics
Design and integration of all aspects of support for the operational capability of the military forces in their equipment
Which subdivision of logistics is this?
Military logistics
Network of activities, facilities, and personal required to organize, schedule and deploy the resources for an event to take place and withdrawal after the event
Which subdivision of logistics is this?
Event logistics
Acquisition, scheduling and management of facilities, assets, personal and materials to support a service operation and business
Which subdivision of logistics is this?
Service logistics
5 principles types of economic utility
- form
- possession
- quantity
- place
- time
- manufacturing or assembly
- as you transform your raw materials into a new higher value good
ex: dell computers
which principal type of economic utility is this ?
form
moving goods from production points to the area where the demand exists
which principal type of economic utility is this ?
place
having something at the deamnd point at the specific time it is needed to be there
which principal type of economic utility is this ?
time
delivering the proper quantity of items to the demand location
which principal type of economic utility is this ?
quantity
increased perceived value of a good or service that is generated by promoting the products
which principal type of economic utility is this ?
possession
which fo the 3 principal types of economic utility does logistics add value to
- place
- time
- quantity
What are four factors affecting cost and importance of logistics?
- Dollar value.
- Density.
- Susceptibility to damage.
- Special handling requirements.
- changing customer service requirements
- shifting locations of customers
- change in corporate ownership
- cost pressures
- competitive capabilities
- corporate organizational change
why theres the need for long range planning
- define the SC network design process
- Perform a SC audit
- Examine the SC network alternatives.
- Conduct facility location analysis
- Make decisions regarding network and facility location.
- Develop an implementation plan.
Steps in and SC network design
- Labor climate
- transportation services, and infrastructure
- proximity to markets and customers
- quality of life
- taxes, and industrial development incentives
- supplier network
- land cost, and utilities
- IT infrastructure
- company preferences
Major location determinants
moving products directly from a supplier or manufacturer to a customer with minimal or no storage time in between
cross docking
- short term horizon
- too little or too much detail
- thinking in two dimensions
- using published cost
- inaccurate or incomplete cost
- fluctuating model input
- lack of appropriate robust checks
Potential SC modeling pitfalls
transportation rates are not linear
Tapering rate principle
might be quoted an identical price for the transportation of a product to any point within a commercial zone
Zone/blanket rates
areas where tariffs are eliminated or delayed
Foreign trade zones
integrates all of a brands channels to create a consistent customer experience across all touchpoints
“anytime, anywhere, anyhow, and any device”
Omni channel
