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Chapter 2

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  • 1. Supply Chain Logistics Management Logistics
  • 2. Supply Chain Logistics Management
    • Importance of Logistics to Business
    • Logistics Value Proposition
    • The Work of Logistics
    • Logistics Operations
    • Logistics Operating Structures
    • Supply Chain Logistics Performance
  • 3. Supply Chain Logistics Management
    • Scope of Logistics
    • Logistics Operations
  • 4. Supply Chain Logistics Management
    • Scope of Logistics
    • Logistics Operations
  • 5. Supply Chain Logistics Management
    • Scope of Logistics
    • Logistics Operations
  • 6. Importance of Logistics to Business
    • Manufacturing -> Consumers
    • Logistics Expenditures
    • Logistics as a Sustainable Competitive Advantage (SCA)
    Supply Chain Logistics Management
  • 7. Importance of Logistics to Business
    • Manufacturing -> Consumers
    • Logistics Expenditures
    • Logistics as a Sustainable Competitive Advantage (SCA)
    Supply Chain Logistics Management
  • 8. Importance of Logistics to Business
    • Manufacturing -> Consumers
    • Logistics Expenditures
    • Logistics as a Sustainable Competitive Advantage (SCA)
    Supply Chain Logistics Management
  • 9. United States Logistics Costs Source: Robert V. Delaney, 11th Annual “State Of Logistics Report” © June 5, 2000
    • 1980
    • GDP $2.88 trillion
    • Logistics Cost $451 billion
      • 15.7% of GDP
    • Trans. Cost $214 billion
      • 47.5 % of Logistics Cost
    • 1999
    • GDP $9.26 trillion
    • Logistics Cost $921 billion
      • 9.9% of GDP
    • Trans. Cost $554 billion
      • 60.2 % of Logistics Cost
    $ billion Logistics Transportation 0 100 200 300 400 500 600 700 800 900 1980 1999 1000 Year
  • 10. Importance of Logistics to Business
    • Manufacturing -> Consumers
    • Logistics Expenditures
    • Logistics as a Sustainable Competitive Advantage (SCA)
    Supply Chain Logistics Management
  • 11. Logistics Value Proposition
    • Service
    • Cost Minimization
    Supply Chain Logistics Management
  • 12. Logistics Value Proposition
    • Service
    • Cost Minimization
    Supply Chain Logistics Management
  • 13. Logistics Value Proposition
    • Service
      • Logistics Service Quality Process Dimensions
      • Logistics Service Quality Outcome Dimensions
    • Cost Minimization
    Supply Chain Logistics Management
  • 14. Logistics Value Proposition
    • Service
      • Logistics Service Quality Process Dimensions
        • Procedures
        • Contact
        • Information
        • Discrepancy
      • Logistics Service Quality Outcome Dimensions
    • Cost Minimization
    Supply Chain Logistics Management
  • 15. Logistics Value Proposition
    • Service
      • Logistics Service Quality Process Dimensions
      • Logistics Service Quality Outcome Dimensions
        • Timeliness
        • Availability
        • Condition
        • Accuracy
    • Cost Minimization
    Supply Chain Logistics Management
  • 16. Logistics Value Proposition
    • Service Benefits
    • Cost Minimization
    Supply Chain Logistics Management
  • 17. The Work of Logistics
    • Order Processing
    • Inventory
    • Transportation
    • Warehousing, Materials Handling, Packaging
    • Facility Network Design
    Supply Chain Logistics Management
  • 18. Integrated Logistics Order Processing Inventory Transportation Facility Network Warehousing, Material Handling
  • 19. The Work of Logistics
    • Order Processing
      • order receipt, order assembly, order delivery, invoicing & collection
    • Inventory
    • Transportation
    • Warehousing, Materials Handling
    • Facility Network Design
    Supply Chain Logistics Management
  • 20. The Work of Logistics
    • Order Processing
    • Inventory
    • Transportation
    • Warehousing, Materials Handling
    • Facility Network Design
    Supply Chain Logistics Management
  • 21. The Work of Logistics
    • Order Processing
    • Inventory
    • Transportation
    • Warehousing, Materials Handling
    • Facility Network Design
    Supply Chain Logistics Management
  • 22. The Work of Logistics
    • Order Processing
    • Inventory
    • Transportation
    • Warehousing, Materials Handling
      • sorting, sequencing, product modification & assembly, and transportation consolidation
    • Facility Network Design
    Supply Chain Logistics Management
  • 23. The Work of Logistics
    • Order Processing
    • Inventory
    • Transportation
    • Warehousing, Materials Handling
    • Facility Network Design
    Supply Chain Logistics Management
  • 24. Logistics Operations Customers Enterprise Customer Service Manufacturing Support Procurement (Purchasing) Suppliers Information Flow Inventory Flow
  • 25. Logistics Operations
    • Inventory Flow
      • Customer Service
      • Manufacturing Support
      • Purchasing (procurement) Support
    • Information Flow
    Supply Chain Logistics Management
  • 26. Logistics Operations
    • Inventory Flow
    • Information Flow
    Supply Chain Logistics Management
  • 27. Logistics Operating Structures
    • Echelon
    • Direct
    • Combined
    Supply Chain Logistics Management
  • 28. Logistics Operating Structures
    • Echelon
    • Direct
    • Combined
    Supply Chain Logistics Management
  • 29. Echeloned Structured Logistics Supplier Storage or Consolidation Warehouse Manufacturer Wholesaler’s Warehouse or Distribution Center Retailer Customer
  • 30. Logistics Operating Structures
    • Echelon
    • Direct
    • Combined
    Supply Chain Logistics Management
  • 31. Logistics Operating Structures
    • Echelon
    • Direct
    • Combined
    Supply Chain Logistics Management
  • 32. Combined Echelon and Direct Structured Logistics Supplier Storage or Consolidation Warehouse Manufacturer Wholesaler Warehouse or Distribution Center Retailer Customer Direct Delivery
  • 33. Supply Chain Logistics Performance
    • Performance Cycle Structure
    Supply Chain Logistics Management
  • 34. Sources of Performance-Cycle Variation Order Transmission Time Range - Days 1/2 3 1 Customer Delivery Time Range - Days 1/2 3 1 Order Transportation Time Range - Days 2 10 4 Order Selection Time Range - Days 1 20 2 Order Processing Time Range - Days 1 4 2 Total Performance Cycle Time Range - Days 5 40 10

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