Logistics Topic 1: What is Logistics?

Contemporary Issues in managing Logistics and SCM (i.e. product customization, flexibility and risk, global, contemporary shopping behaviors and expectations)

"Century of the Customer" -customers preferences, spending, and perceptions -the way the consumers want it, is the way its suppose to be

Global

-customers, paper work, long time to ship -more global infusion = more of a logistics challenge -good for companies

Flexibility and Risk

-natural disasters, changes, bad infrastructure -expensive and challenging -need to be more flexible

Customer Service Demands

-want things shipped to their homes -want it quick (same day)

4 steps to implement Lean

1. Look through the Eyes of the Customer 2.Eliminate Process Waste 3. Eliminate Wasted Time and Space 4.Repeat

The 8 Wastes

1. defects 2. overproduction 3. waiting 4. not utilizing staff talent 5. transportation 6. inventory 7. motion 8. excess processing

Service Logisitcs

All the people, facilities and supplies in place to effectively deliver services to customers.

Relationship between cost of Lost sales & Inventory Cost

As Inventory Level Inc -cost of lost sales dec -Inventory cost Inc -Find balance of total cost

Definition of Logistics

Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.

Military Logistics

Moving groups of people and supplies, setting up camps, replenishing supplies and people, breaking camp down again and moving it out.

Humanitarian Logistics

Planning the effective flow and storage of goods as well as the exchange of information to alleviate the suffering of people.

Lean 5S Methodology

Sort, Simplify, Sweep, Standardize, Sustain

Origins of Logistics

Stems from Marketing Comes directly from the Place P from the 4 P's -Product, price, place, promotion responsible for getting product to market

Product Variety/Customization

Stock Keeping Unit (SKU): the numerical code given for each variety of a product -Ex: Coke cans have a different SKU than a 2-liter Why is there so much variety in your products? -Attract more customers with more options -Consumers have all different preferences -Market segmentation: trying to cater to many different segments of the market Is great for marketing but hard for logistics people SKU's can change based on packaging but the same product

Logistics vs SCM

Supply chain management What's within the supply chain: o Procurement: the people who buy the products needed -Upstream: What happens before the skirt production o Logistics is underneath supply chain management -Down Stream: the distribution of the products -The arrows between each section of the supply chain o Operations -The actual production of the skirt

Event Logistics

The resources (facilities, people, and infrastructures) used to organize, deliver and execute an event from initial schedule through teardown and clean up.

Economic Utilities

Utility: perceived value. 1. Possession Utility: creating desire 2. Form Utility: repackaging, refurbishing 3. Time Utility: when needed 4. Place Utility:exactly where needed 5. Quantity Utility: right amount break bulk and assort Marketing = Possession Utility Production = Form Utility Logistics = Time, Place, and Quantity Utility

Trade Offs associated with Product Susceptibility and loss/damage

as Susceptibility to loss and damage inc: -warehouse cost inc -transportation cost inc -packaging coast inc

Relationship between cost of lost sales and transportation cost

as transportation service level inc: -cost of lost sales dec -transportation costs inc -find balance of total cost

Trade-offs associated with Product Value

as value of item inc: -packaging cost inc -transportation cost inc -inventory cost inc

Trade off associated with product weight density

as weight density of item inc: -warehouse costs dec -inventory cost dec -transportation cos dec

Strategic Value of Logistics for Companies (how does Logistics contribute to firm performance)

companies that focus on SCM out perform their competitiors WHY? -Sustainability -Infrastructure Issues: relationship issues, operational processes (hard for competitors to compete

Process Mapping

creating an accurate depiction of a process complete with performance statistics

Types of Logistics =

event, passenger, military, service, and humanitarian

Kaizen Events

gatherings of people who are involved in the day to day management of the process

7 rights of logistics (7r's)

is about getting the right product to the right customer, at the right time, in the right condition, in the right quantity, at the right place, and for the right cost

Passenger Logistics

moving people