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