Logistics Management
Content
CUSTOMER ORIENTED LOGISTICS MANAGEMENT
Click to edit Master subtitle style
3/14/12
Objectives of Logistics
• • •
Cost Reduction Strategy Capital Reduction Strategy Service Improvement
3/14/12
Logistics Planning
Inventory Management Inventory Management •Inventory Levels •Deployment of Inventories •Control Methods Inventory Management Transportation Decisions •Modes of Transport •Carrier Routing /Scheduling •Shipment Size
Customer Service Goals
3/14/12
Location Decsion •Number, Size and Location of facilities •Assignements of Stocking points •Assignmennt of Demand to Stocking Points
Facilities Decision
•
Three types of outbound logistics strategies Direct Shipment Warehousing Cross-Docking
• • •
3/14/12
Concerns in Cross Docking
•
Inventory Destination is known when stocks are received Customer is ready to receive inventory immediately The number of locations to ship inventories are not high It is possible to prelabel the inventories
3/14/12
•
•
•
•
Inventory arrives in a state
Why are Warehouses Needed?
3/14/12
Main Functions of Warehousing Operations
• • • •
Storage Bulk Breaking Consolidation Information
3/14/12
Main Activities of Warehousing Operations
• • •
Movement Storage Information transfer
3/14/12
Main Decisions of Warehousing
• •
Location Number of Warehouses
3/14/12
Number of Warehouses
• • • •
Cost of Lost Sales Inventory Costs Transportation Costs Warehousing Cost
3/14/12
3/14/12
Warehousing Location
• •
Macro Perspectives Micro Perspectives
–
Centre of Gravity Method Cost Volume Profit Analysis
–
3/14/12
Costs Associated With Inventory
• • •
Inventory Procurement Costs Inventory Carrying Costs Stockout Costs
3/14/12
Inventory Carrying Costs
• • • •
Capital Costs Inventory Service Costs Storage Space Costs Inventory Risk Costs
3/14/12
Out of Stock Costs
• •
Cost of Lost Sales Back Order Costs
3/14/12
Inventory Level Decisions
•
Push vs Pull Inventory Control
3/14/12
Order Quantity Decisions
TC = (D/Q) S + IC (Q/2) TC = Total Cost D = Annual Demand For the Item in Inv. Units S = Ordering Cost I3/14/12 = Inventory Carrying Cost Per Unit
RISK POOLING
• •
Risk Pooling Echelon Inventory
3/14/12
•
Distribution Resources Planning (DRP) System
3/14/12
Transportation Decision
• • •
Mode Selection Vehicle Routing and Scheduling Freight Consolidation
3/14/12
Factors affecting Transportation Costs
•
What are the different components of the logistics cost and how do each of them vary with the number of warehouses
3/14/12
Quiz
•
What are the different components of the logistics cost and how do each of them vary with the number of warehouses
3/14/12
The Channel Core Elements
•
Address the primary concerns of the channel members
–
Financial Returns for the Channel Member Quality of the Product The market price Delivery Reliability of the brand
–
–
–
Reputation 3/14/12
–
Capability Building Program
3/14/12
Incentive Program
•
Tactical
3/14/12
Indirect Influence Strategies Direct Ummediated Strategies Reward and Punishment
Channel Influence Strategies
Information Exchange Information Control Modelling Recommendation Warning Positive Normative Negative Normative Economic Reward Noneconomic Reward Economic Punishment Non-economic punishment Direct Request Personal Plea Promise
3/14/12
Direct Unweighted Strategy Direct Mediated Strategy
Channel Conflict
•
Channel Conflict
3/14/12
Exercising Influence Strategies
•
3/14/12
Click to edit Master subtitle style
3/14/12
Objectives of Logistics
• • •
Cost Reduction Strategy Capital Reduction Strategy Service Improvement
3/14/12
Logistics Planning
Inventory Management Inventory Management •Inventory Levels •Deployment of Inventories •Control Methods Inventory Management Transportation Decisions •Modes of Transport •Carrier Routing /Scheduling •Shipment Size
Customer Service Goals
3/14/12
Location Decsion •Number, Size and Location of facilities •Assignements of Stocking points •Assignmennt of Demand to Stocking Points
Facilities Decision
•
Three types of outbound logistics strategies Direct Shipment Warehousing Cross-Docking
• • •
3/14/12
Concerns in Cross Docking
•
Inventory Destination is known when stocks are received Customer is ready to receive inventory immediately The number of locations to ship inventories are not high It is possible to prelabel the inventories
3/14/12
•
•
•
•
Inventory arrives in a state
Why are Warehouses Needed?
3/14/12
Main Functions of Warehousing Operations
• • • •
Storage Bulk Breaking Consolidation Information
3/14/12
Main Activities of Warehousing Operations
• • •
Movement Storage Information transfer
3/14/12
Main Decisions of Warehousing
• •
Location Number of Warehouses
3/14/12
Number of Warehouses
• • • •
Cost of Lost Sales Inventory Costs Transportation Costs Warehousing Cost
3/14/12
3/14/12
Warehousing Location
• •
Macro Perspectives Micro Perspectives
–
Centre of Gravity Method Cost Volume Profit Analysis
–
3/14/12
Costs Associated With Inventory
• • •
Inventory Procurement Costs Inventory Carrying Costs Stockout Costs
3/14/12
Inventory Carrying Costs
• • • •
Capital Costs Inventory Service Costs Storage Space Costs Inventory Risk Costs
3/14/12
Out of Stock Costs
• •
Cost of Lost Sales Back Order Costs
3/14/12
Inventory Level Decisions
•
Push vs Pull Inventory Control
3/14/12
Order Quantity Decisions
TC = (D/Q) S + IC (Q/2) TC = Total Cost D = Annual Demand For the Item in Inv. Units S = Ordering Cost I3/14/12 = Inventory Carrying Cost Per Unit
RISK POOLING
• •
Risk Pooling Echelon Inventory
3/14/12
•
Distribution Resources Planning (DRP) System
3/14/12
Transportation Decision
• • •
Mode Selection Vehicle Routing and Scheduling Freight Consolidation
3/14/12
Factors affecting Transportation Costs
•
What are the different components of the logistics cost and how do each of them vary with the number of warehouses
3/14/12
Quiz
•
What are the different components of the logistics cost and how do each of them vary with the number of warehouses
3/14/12
The Channel Core Elements
•
Address the primary concerns of the channel members
–
Financial Returns for the Channel Member Quality of the Product The market price Delivery Reliability of the brand
–
–
–
Reputation 3/14/12
–
Capability Building Program
3/14/12
Incentive Program
•
Tactical
3/14/12
Indirect Influence Strategies Direct Ummediated Strategies Reward and Punishment
Channel Influence Strategies
Information Exchange Information Control Modelling Recommendation Warning Positive Normative Negative Normative Economic Reward Noneconomic Reward Economic Punishment Non-economic punishment Direct Request Personal Plea Promise
3/14/12
Direct Unweighted Strategy Direct Mediated Strategy
Channel Conflict
•
Channel Conflict
3/14/12
Exercising Influence Strategies
•
3/14/12
