The document outlines the agenda for a logistics course. It includes revising homework, a lecture on logistics, an exercise on logistics myths, and a case study on Pacademy. Students will work in groups on a supply chain exercise and discuss logistics concepts like transportation, warehousing, inventory management, and customer service. The document provides context and definitions for key logistics topics.

1. WK9 AgendaRevised homeworkLogistic lecture and exercisePacademy Case Study1MIB, BBA 2010

2. Logistics MythsTrue or falseLogistics mean logic.Logistics is about transportation cost.3PL logistics company handle custom for its customers.MIB, BBA 20102

3. Logistics ExerciseIn three groups, choose your product.Write the process flow of supply chain starting from raw material to customers.What are the issues to consider?Where are the cost incur?Where can we add value?How can we improve efficiency?MIB, BBA 20103

4. LogisticsCouncil of Logistics Management definition:“Logistics is that part of the supply chain process 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.”MIB, BBA 20104

5. LogisticsMIB, BBA 20105

6. © 2008 Prentice Hall1-6Activities in the Logistical ChannelCustomer serviceFacility location decisionsInventory managementOrder managementProduction schedulingReturned productsTransportation managementDemand forecastingIndustrial packagingMaterials handlingParts and service supportProcurementSalvage and scrap disposalWarehousing management

7. © 2008 Prentice Hall1-7The Systems and Total Cost Approaches to LogisticsTotal Cost ApproachCost trade-offs: changes to one activity cause some costs to increase and others to decreaseTotal Logistics Concept: to find the lowest total cost that supports an organization’s customer service requirements

8. Logistical Relationships within the FirmFinanceLIFOFIFOProductionMarketingPlace DecisionsPrice DecisionsFOB origin/FOB destination pricing systemsLanded costsPhantom freightFreight absorptionMIB, BBA 20108

9. © 2008 Prentice Hall1-9Responsibilities of Logistics ManagersA specialistFreight ratesWarehouse layoutsInventory analysisProductionPurchasingTransportation lawA generalistUnderstands functional relationshipsRelates logistics to other firm operations, suppliers, customersControls large expendituresThe CEO of Wal-Mart began his Wal-Mart career in the logistics area!

10. © 2008 Prentice Hall2-10Different Supply Chain Configurations

11. © 2008 Prentice Hall2-11Supply Chain Management and IntegrationThird-Party Logistics (3PL)Logistics outsourcingContract logistics3PL provides transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding.Fourth-party logistics (4PL) primarily used in global companies: assembles and manages the resources, capabilities, and technology to deliver a comprehensive supply chain solution.Lead logistics provider (LLP)Supply chain software

12. General Types of Information Management SystemsMIB, BBA 201012

13. Electronic Commerce and LogisticsInternet impacts include:Logistics functionsTransportationOrder managementChannel designIntermediaries 4 categories of logistics exchangesEnhancing procurement servicesMatching shippers and carriersExecuting relevant transactionsTransacting with partnersWhat are the differences between Electronic and Traditional Fulfillment? Think about your online purchasing.MIB, BBA 201013

14. Order ManagementOrder management is the activities that take place in the period between the time a firm receives an order and the time a warehouse is notified to ship the goods to fill that orderOrder planning-connected to sales forecastingOrder transmittalOrder processingOrder picking and assemblyOrder deliveryOrder cycle defined by the buyer: time from when an order is placed to when the goods are received. Also called replenishment cycleGetting shorterMore precise delivery timesCustomer can track ordersQuality is important and is benchmarkedMIB, BBA 201014

15. Customer ServiceActivity to make customers happyValue-added activities provided by customer service include:Placing bar code labels on cartonsArranging a carton, pallet, or truck in the sequence the customer would like to unload itShrink-wrappingInserting documents into cartons Blending productsAdding price tagsAdding graphics for export goodsAssembling kitsEstablishing a customer service programAsk the customer what is important to themInvestigate the service offered by competitorsConsider the cost of alternative service programsAnalyze the information and write the objectivesUsing the Internet to improve customer serviceMIB, BBA 201015

16. Element of Logistics SystemProtective Packaging and Materials HandlingProduct characteristics :physical, chemical, environmental, etc.Packaging: box, wooden pallet, label, etc.Material Handling: automation, flexibility, safety, layout, cost, maintenance, unit load, ergonomic, requirement, JIT, energy, etc.MIB, BBA 201016

17. Element of Logistics System2.) Transportation(domestic): node, links, air, water, motor carriage, rail, pipeline, intermodal transportation, routing guidesSmall volume shipper: Fedex, UPS, DHL, NTC, TNT, Post office <150 poundLTL shipper(less than truckload, <150<10,000 pounds): Yellow Freight, Roadway, ABFTruckload and carload shipper: Schneider National Van Carriers, J.B. Hunt TransportMIB, BBA 201017

18. Element of Logistics System3.) Distribution Center, Warehouse, and Plant LocationNumber of facilities: service level, software, time to customersFacilities location: natural resource, labor, market, tax, subsidies, transportation, customers, trade patternLowest cost location: grid system, center of gravity approachMIB, BBA 201018

19. Element of Logistics System4) Inventory managementInventory Turnover= Cost of goods sold/average inventoryTurnover, carrying costs, and stock out costsReorder pointROP = Daily Demand x Replenish Cycle + Safety Stock under uncertaintyEconomic order quantity EOQ= √2AB/CJIT, Inventory Tracking, Vendor manage inventory, MIB, BBA 201019

20. Element of Logistics System5)WarehousingPublic, private, contract warehousingDesign warehousing: quantity, character of goods, purposelayoutSafety, security and stock controlMIB, BBA 201020

21. Element of Logistics System6) ProcurementMIB, BBA 201021

22. Element of Logistics System7) International logisticMIB, BBA 201022

23. Element of Logistics System8) Financial and accounting controlWorker productivity: scheduling, monitoringGoal to achieve lowest cost per volume of outputProduct recall: Batch ID, Six SigmaSecurity: building, computer, document, etc.Energy savingMIB, BBA 201023

24. Element of Logistics System9) System AnalysisCustomerprofitability analysisWarehousing productivity analysisTransportation cost analysisConsolidation analysisDirect product profitability analysisBenchmarkingIndustry standards analysisMIB, BBA 201024

25. Pacademy Case & HomeworkRevised homework due this FridayRead Pacademy case and apply our strategy formulation concepts. Draw the diagrams.What other information would be beneficial for your case analysis?What are your recommendations?MIB, BBA 201025