BA 495

CH 14 What are the various driving forces leading to greater use of KPIs in the logistics environment?

At least eight driving forces behind the increases use of performance measurement in a logistics context can be identified. Increased reliance on contract manufacturers, strategic importance of LSPs to supply chain success, adoption of manufacturing management principles, impact on customer experience, increased competition, information technology improvements, empowerment practices, and employee motivation are various driving forces.

Ch 11 In the context of postponement, how might downstream distribution centres be viewed as value-adding? -

Facilities that do this include assembly and packaging processes to ensure that order fulfillment can occur as close to the end as possible, postponing stock handling until the order is confirmed. The postponement concept can be used to reduce inventory significantly. Value-added activities are those supply chain activities that enhance products to increase the customer's perceptions of those products' benefits. By improving the service, reducing costs, and/or by reducing its lead time customer value can be added to a product. Warehousing plays a significant role in manufacturing and postponement. Downstream distribution centers offer much more than storage and handling as mentioned above.

Briefly describe the three main areas of transport security technology and give an example of each security technology. -

The three main areas of transport security technology is access, biometric, and scanning. Access security is whether certain people can get into areas or they are cleared to be at a location. Biometric is the IDs that have someone's full information on it when it is scanned. The last one has to do with surveillance and x-rays and gamma rays. Cameras and motion detectors scan areas to stay secure. The x-rays and gamma rays are used on cargo and luggage to see what is in the inside.

What are lean and agile strategies?

What are the main factors impacting the use of either strategy? - Lean strategy has to do with just in time and has a pull strategy. Inventory is received right when it is needed which reduces waste and increases efficiency. An agile strategy is flexible and everything about making the product is the same until the very end when the product is customized to the customer's order. This is called postponement and Dell uses this along with mass customization. Company's can adjust to demand easily with an agile strategy.

Why is a robust supply chain not necessarily a resilient supply chain?

- A resilient supply chain is a supply chain that is able to go back to normal flow output after there is a disruption. A robust supply chain is when the supply chain can manage these disruption and regular fluctuations in demand under normal circumstances regardless of the major disruptions. Robust is defined as a hard, vigorous, and strong in constitution.

Ch 15 What are wicked problems?

- A wicked problem is a technical term to explain why societal problems are inherently different than the problems that scientists and some engineers tackle in their daily work. Scientists and engineers deal with discrete identifiable problems where the desired outcome is known providing clarity of the mission and an easily recognizable desired end state. Wicked problems are different because they involve multiple stake holders with different interests and value sets. There is no definitive common goal, no clarity of the mission, and no universal solution. With wicked problems any solution after implementation will generate waves of consequences over an extended virtually an unbounded period of time. To understand a wicked problem, you must understand the wider context.

Ch 10 Inventory holding cost is often viewed as a tradeoff with economical advantages. What do you consider the top two reasons (or tradeoffs) for holding inventory (table 10.1) and give an example of each.

- An alternative view of holding inventory is based around the central theme of trade-offs. Inventory holding costs are traded-off with other economical advantages. It is often more economical to produce in reasonable batch sizes to minimize the downtime resulting from production line changeovers, hence inventory is built up to cover for a number of days then stored until required. This principle can also be applied to transportation where full loads are more economical than delivering single items. This saving is traded-off with the additional cost of holding the extra inventory. The secondary reason for holding inventory has been challenged with JIT and modern information and communications technology has drastically reduced batch sizes and cost.

Ch 16 What are the different ways by which the environmental footprint of logistics and SCM can be reduced?

- Carbon footprint has come into use to describe the environmental disbenefits associated with economic activities such as movement of freight. Greening a supply chain is largely about forward planning and 80% of carbon savings are achievable at the supply chain design stage potentially.Various initiatives can reduce the environmental footprint such as hybrid fuel vehicles and even decisions at the supply chain level can help. Deciding where to locate warehouses and distribution centers and which transport modes to use have the greatest impact. Another supply chain redesign can be re-configuring distribution networks to replace all small deliveries to direct them to a centralized hub where customers can retrieve their goods. Freight should move in bulk for as far downstream as possible.

What is cross-docking and when should it be used?

- Cross-docking bypasses the storage areas in warehouse and distribution centers. Storage should be avoided unless the freight requires one of the four value-adding activities, otherwise storage is costly and non-value adding. At a single inventory holding level and goods are frequently cross docked rapidly through the supply chain down to this level and then cross-docked again after that level through to the final customer. Cross-docking reduces cost and improves customer service by accelerating the process of freight requiring reshipment. The associated costs and non-value adding functions are eliminated to enhance customer service. Cross-docking is typically employed for fast-moving freight with constant demand that spends less than 24 hours on site. This function enables of quick response logistics as it will maintain the flow of freight and reduce lead time.

CH 8 Distinguish between LSP, 3PL and 4PL. What advice would you give to a company that is looking to replace multiple 3PL relationships with a single 4PL solution?

- LSPs provide management of flow of goods and materials anywhere between origin to destination. This includes shipping, warehousing, inventor, packing, and security. LSPs that provide multiple logistics services, often in an integrated fashion, are referred to as 3PLs. 4PLs offer companies total outsourcing supply chain solutions. They will handle the entire companies logistics operating process. Some things to consider if wanting to switch to a 4PL solution is costs, speed, performance levels, security, and history of company.