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Topic 6 – Logistics and Supply Chain Management

Topic 6 – Logistics and Supply Chain Management. A – The Role and Function of Logistics B – Value Chains C – Distribution Systems. A – The Role and Function of Logistics. Logistics Goals and Operations. Value-Added Functions and Differentiation of Supply Chains. Value-Added Functions.

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Topic 6 – Logistics and Supply Chain Management

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  1. Topic 6 – Logistics and Supply Chain Management A – The Role and Function of Logistics B – Value Chains C – Distribution Systems

  2. A – The Role and Function of Logistics

  3. Logistics Goals and Operations

  4. Value-Added Functions and Differentiation of Supply Chains Value-Added Functions Supply Chain Differentiation Production Costs Logistics Costs Location Transit Time Time Reliability Control Risk

  5. Taxonomy of Logistics Decisions

  6. Logistical Improvements, Manufacturing Sector, 1960s to 2010s

  7. Worldwide Logistics Costs, 2002

  8. From Push to Pull Logistics Push Pull Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Freight flow Manufacturer Manufacturer 3PL Returns / Recycling Distributor Distributor Customer Point-of-sale data Customer

  9. Layers to Logistics Services Actors Services Cargo owners Manufacturing, Retailing Transportation Carriers Logistics serviceproviders Service integration Logistics Supply chainmanagement Lead logistics providers& consultants Supply chain integration

  10. Logistic Performance Index, 2010

  11. B – Value Chains

  12. The Commodity Chain (or Value Chain) Stages 1- Commodities 2- Intermediate Goods 3- Final Goods Market Raw materials Manufacturing and assembly Distribution Attributable to climatic (agricultural products, forestry products) or geological (ores and fossil fuels) conditions. Transformation that confers added value. Metals, textiles, construction materials and parts used to make other goods. Goods shipped to large consumption markets. Flow and inventory management. Flows LTL shipping Bulk shipping Unit shipping Market Transport Chain Average volumes High frequency Low volumes High frequency High volumes Low frequency

  13. Commodity Chains and Added Value High Fabrication R&D Sales / Service Marketing Branding Added value Design Distribution Manufacturing Concept Logistics Low Commodity chain

  14. Product Life Cycle Monopoly Competition Sales Competitors Innovating firm Idea Promotion First competitors Mass production Obsolescence Research and development Growth Decline Maturity Stage 1 Stage 2 Stage 3 Stage 4

  15. APL Logistics Freight Distribution Center, Shenzhen, PRC, December 2005

  16. Container Waiting to be Loaded, APL DC - Shenzhen

  17. Extended Distribution Center System of JVC Belgium

  18. Palletization of “Floor Loaded” Shipments, Belgium

  19. C – Distribution Systems

  20. Types of Supply Chain Facilities Fabrication Heavy manufacturing Lightmanufacturing Cold Chain Air cargo Multitenant Rack-supportedwarehouse Regional warehouse Bulkwarehouse Cross-docking Distribution Storage

  21. Optimal Location and Throughput by Number of Freight Distribution Centers

  22. Cross-Docking Distribution Center Distribution Center Before Cross-Docking Suppliers Suppliers LTL Receiving Customers Sorting After Cross-Docking Shipping FTL Cross-Docking DC FTL Customers

  23. Retail Logistics and E-commerce E-commerce Retail Logistics Conventional Retail Logistics Suppliers Suppliers Regional Distribution Center E-Retailer RDC RDC RDC Store Deliveries Order Retailer (In store inventory) Online purchases Parcel Delivery Company Home Deliveries Travel to store Customers Customers

  24. Order-Delivery Sequence of an Apple iPad Order placed online Order Fulfillment (Cycle time of 12 days 18hrs 08min) Order processed Shipment notification 3hrs 34min 12 days 15hrs 34min Note: Path is approximate Consolidation (Shenzhen/HK) Transfer (Anchorage) Deconsolidation (NY Metro) 2hrs 45min 4hrs 23min 7hrs 34min 17hrs 04min 1hr 57min 1hr 22min 6hrs 03min 4hrs 00min 1hr 11min 2hrs 48min At Anchorage hub Left Anchorage hub Shipment notification Left Newark hub Delivered Leaving local DC At Hong Kong hub At Newark hub At local DC Cleared customs Shipment picked up Delivery (Lead time of 48hrs 11min)

  25. Logistic Activities and their Green Dimensions Forward Channel Producers Distributors Suppliers Consumers Recyclers Collectors Reverse Channel Forward and Reverse Distribution

  26. Packaging with Less Footprint

  27. Operational Conditions of Cold Chain Logistics

  28. Temperature Standards for the Cold Chain

  29. Shelf Life of Selected Perishable Food Products

  30. Lettuce Shelf Life by Storage Temperature

  31. Seaborne Reefer Trade, 2008

  32. Reefer Stacking Area, Maher Terminal, Newark

  33. Grocery Chain Cold Storage Facility, Regina

  34. Subtropolis Distribution Center, Kansas City

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