Welcome to the Notes Section
Chapter 1 Notes.
Business Logistics
- Reduction in Regulation - allowed flexibility in pricing and service
Changes In Consumer Behavior.
Growing Power of Retailers.
Just In Time Inventory
Globalization of Trade.
Cost - 7% of GDP In the US, 12% Worldwide goes to Logistics.
Impact on Corporations - 8% to 15% of the Cost of sales goes to logistics.
Elements of the Global Supply Chain
- Supply Chain
- Raw Material Providers
Production Facilities
Warehouses and Distribution Centers
Transportation
Supply Chain Logistics - The link between facilities in the supply chain.
Material Handling Logistics - Movement, storage, and control of materials.
Global Supply Chain - Moving goods and information across international boundaries
Supply Chain Lifecycle
- Customer is the driving force
Beginning to the end of a product's life
Focus on sustainability
Supply Chain Inventory
- Raw Materials - Materials ready for use in production
Work In Progress - Materials being made into products
Finished Goods - Finished products
In-Transit Goods - Products in transit
Roles and Responsibilities
- Customer Interactiob
- The customer must specify any special requirements
Material Handling
Due Dates
Negotiate Terms and Conditions
Acceptance of product/substitutions and backorders
Material Handlers
- Customer Centric Approach
Working With Multiple Sources
Process Purchase Orders
Verify the Timely Arrival of Products
Basic Warehouse Functions
- Recieving (Critical First Step)
- Identifying Goods
Inspecting - Correct Item and Quantity
Reports and SKU's
Putting Material in the Correct Location
Stocking
- Assigning Items to the Proper Location
Order Processing
- Picking and packaging items for customer service
Shipping
- Determine the Best Method
- Carrier Selection
Product Labeling
Palletization
Segregating Products
Packing Slips
Locking Materials is the Main Function
Transportation
- Link Pickup and Delivery Locations
Meet Delivery Times
Deliver in a Safe and Effective Way
Dispatch and Track
Safe Handling
Follow Rules and Regulations
Trends
- Increase in Global Competitiveness
Adaptation of computer-based technologies
Surge in international trade
Rising Costs of Transport
Higher Customer Expectations
Results of Trends
- Handle and store more items
Perform smaller transactions
Provide more customizations
Value added services
More Return
Increase in international shipping
Less time to process orders
A smaller margin of error
Labor Shortages
Performance Measures
- Customer Response
- Order cycle time and accuracy
Warehouse Metrics
- Units/hr, line times/hr, cases/hr, pallets/hr, cost/case
Quality takes Precedence
Transportation productivity - measure separately
Labor Productivity - How material handlers perform
Terms to know
- Cross Docking
Demand
Distribution Centers
Order Processing
Packaging
Receiving
Stock
Supply
Supply Chain
Warehouses
End Chapter 1 Notes