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BUSML 3380
| Term | Definition |
|---|---|
| Logistics | part of supply chain management 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 to meet cust. needs |
| Reasons for Increased Interest | Increasing Competitive Pressures – Shift in Channel Power – Globalization – Development of IT Systems & the Increasing Importance of Information – Increased Product Proliferation – Increased Number of Delivery Points |
| Cost Categories | -Inventory Carrying Cost -Transportation -Warehousing -Shipper Related Costs -Logistics Administration |
| Total Cost Concept | View the sum of logistics operations as a system and seek to minimize the total cost of the system rather than the individual functions. |
| Supply Chain Management | the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders. |
| CRM and SRM Relationship | Customer Service Management Demand Management Order Fulfillment Manufacturing Flow Management Product Development and Commercialization Returns Management |
| Reasons to Partner | To gain the advantages of vertical integration while still maintaining organizational independence ● To take advantage of “best in class” expertise ● To achieve service improvements ● To gain operational efficiencies ● To respond to competition |
| Drivers | Compelling reasons to partner. Set expectations of outcomes |
| Facilitators | Supportive environmental factors that enhance partnership growth |
| Outcomes | The extent to which performance meets expectations |
| Components | Joint activities and processes that build and sustain the partnership |
| Uses of Procurement Model | Evaluate a potential new partnership ● Analyze a portfolio of relationships ● Diagnose relationships ● Increase specific performance aspects of relationships ● Structured approach to relationship management |
| Lessons Learned from Procurement Model | -You must be willing to look at things differently. -Most companies have a lot more in common than they think. -Visibility is key to building trust. -Mistakes happen, learn from them. -A well structured plan that is closely monitored is key |
| Importance of Logistics Customer Service | -Existing Customers are Often Considered “Cheaper” to Sell to -Existing Customers are More Loyal -Existing Customers Often Buy More -Existing Customers are a Good Source for Referrals -Lifetime value of customer |
| Pre-Transactional Elements of Customer Service | -Establish a written customer service policy -Communicate/give the policy statement to customers -Formally establish the policy |
| Transactional Elements of Customer Service | -Stockout Level (measure of product availability) -Order Information -Elements of the order cycle (generation, entry, fulfillment, shipment) -Expedited Shipments and Transshipments -System accuracy -Order Convenience -Substitution |
| Post-Transactional Elements of Customer Service | -Installation, Warranty, Alterations, & Repairs -Product Tracing -Customer Claims, Complaints, and Returns -Temporary Product Replacement |
| Impediments to an Effective Customer Service Strategy | -Failing to segment markets in terms of service offered -Misuse of customer service by salespeople -Failing to measure the cost- effectiveness of service levels -Inability to determine competitive service levels -Inadequate customer service research |
| Perfect Order | ● No-fault performance from the time of order receipt through customer delivery ● Defined differently by different customers/customer segments |
| Reasons to Hold Inventory | -Maintaining Customer Service Requirements -Leverage Economies of Scale for Production -Take Advantage of Purchase and Transportation Discounts -Act as a Buffer for Demand Variability and Lead Time Variability -Hedge Against Risk |
| EOQ | Optimum quantity to order to minimize costs |
| Drivers of Inventory Growth | Customer pressure for service ● SKU proliferation ● Scrambled merchandising ● Growth and variability of demand ● Length and variability of lead time ●Lack of information ●Number of warehousing locations ●Diffused inventory management responsibility |
| Symptoms of Poor Inventory Management | High inventory levels, frequent stockouts Time needed to find items High variance in turnover rate for different stocking location Frequent sales to reduce inventory level Purchasing based on quantity discount Production planning based on batch size |
| General Factors Influencing Facility Locations | -Natural Resources -Market for Goods -Labor Availability -Taxes and Incentives -Transportation Considerations -Proximity to Industry Clusters |
| OSU Resiliency Framework | -Vulnerabilities -Capabilities |
| Role of Warehouses | -Critical to provide quick lead times to customers by positioning items close to final markets -Presents consolidation opportunities to reduce costs of transportation -Storage for Inventory -Product Mixing |
| Manufacturing Support - Type of Warehousing | Advantages are (1) reducing the number of deliveries to the plant, which helps maintain operational efficiency and (2) the exact mix of components can be sent with each delivery based on inventory requirements |
| Mixing Warehouse - Type of Warehousing | Value is from a customer service standpoint; such warehouses better enable an organization to provide an assortment of products in an aggregate fashion |
| Consolidating Warehouse - Type of Warehousing | In this setup, the warehouse receives product from many different locations and then combines these incoming shipments to send to one or a few outbound locations. |
| Breakbulk - Type of Warehousing | Exact opposite of the consolidation warehouse; warehouse receives few large deliveries and then breaks these deliveries down to deliver to many customers. |
| Cross-Docking Type of Warehousing | Different from a warehouse or distribution center in that there is no long- term storage; ideally, full truckload shipments arrive and the are immediately moved “across the dock” onto outgoing trailers/containers |
| Public Warehouse | facility operated by a third party that typically involves shorter contracts, less customization, and the facility simultaneously serves multiple customers |
| Private Warehouse | the focal organization operates its own warehouse |
| Objectives of Materials Handling | Reduce the number of times goods are handled Minimize movement into, within and out of warehouse Increase the warehouse facility’s usable capacity Minimize aisle space contributes to a cost minimization program by increasing productivity |
| Benefits of WMS | -Service improvements -Improved order picking ● Improved visibility of warehouse activity ● Improved tracking of internal and external inventories ● Improved planning and optimization of asset utilization |
| Building Blocks Concept | – Smallest unit is consumer package – Each unit is stocked within the next larger one to protect the product |
| General Functions of Packaging | To promote • To protect • To identify (label) the relevant product |
| Identifying Packaging Inefficiencies | • Building-blocks concept is useful for analyzing packaging inefficiencies. • Packaging inefficiencies can have a number of undesirable logistics consequences |
| Modes of Transportation | – Rail – Highway – Water – Pipeline – Air |
| Core Carrier Concept | A shipper’s effort to concentrate more freight volume in the hands of fewer carriers. Routing guide then directs traffic clerk of carriers to contact (in order) for common destination points (or particular customers)  |
| Coordinating Flows | Facilitates planning process within firm and across the supply chain |
| Operating Flows | Facilitates the day-to-day order fulfillment process |
| Value of timely and accurate information | ● Information is the foundation of good customer service ● Information is the key to managing inventories in the supply chain (seen or unseen) ● Information increases flexibility to strategically manage scarce resources |
| Internet Influence on Logistics | Many logistical functions and activities occur • More, smaller orders • Order management and information management systems must handle large volumes of orders • Smaller orders dictate open-case picking |
| Requirements for Humanitarian Logistics | ● Delivery of a wide variety of supplies ● Multiple modes/models utilized ● Rapid delivery from sometimes undefined origin locations ● Storing, staging and moving products in an uncertain environment ● Coordination across a variety of agencies |
| Humanitarian Logistics Challenges | ● Dependence on voluntary contributions ● Many stakeholders involved ● High levels of uncertainty ● Unsolicited donations ● Degraded or nonexistent infrastructure ● Lack of logistics assets/companies |
| International Logistics Specialists | International Freight Forwarders specialize in handling either vessel shipments or air shipments. – Advising on acceptance of letters of credit – Booking space on carriers – Preparing an export declaration |
| Key international logistics considerations | -Infrastructure • Safety stocks must be larger • Inventory valuation is difficult due to exchange rates. • Reverse Logistics policies must be understood. • Insufficient warehousing practices lead to higher inventory carrying costs. |
| Logistics Performance Index (LPI) | Measures a country’s performance across six logistical dimensions |
Created by:
ckennard22