Intro to Supply Chain Final (Chapters 9-11)

Carriers help us deliver OTIF

Carriers help us deliver OTIF (On Time in Full)

Cheaper to hire people to buy to do _________ is cheaper bc we save on transportation costs.

Cheaper to hire people to buy to do VMI is cheaper bc we save on transportation costs

Compare to Requested Arrival Date (RAD) to Actual Delivery Time

Compare to RAD to Actual Delivery Time (should be equal or less than RAD)

Consumer Packaged Goods Logistics Cost relationships are: - -

Consumer Packaged Goods Logistics Cost relationships are: - 65% Transportation - 15% Warehouse / Distribution Center Labor

Company "Cultcha" or "Where Does Log Report"?

Cost Driven = lowest Total Lease Land Costs (TLLC) = Direct Plant Shipment (DPS) = 4 Distribution Centers (DC's) in US Service Driven = Short Lead Time (LT) orders = Market Center Distribution Centers Obsolescence Driven (Hi Tech) = Made to Order (MTO) & Direct Plant Shipment (DPS)

TMS BID: Part II--Send to Carriers by Mode

Covers all Modes: 1.) Truck (TL) & Intermodal (IM) = Same Bid Separate bids for: 2) LTL (Less Than Truckload) 3) Small Package 4) Ocean (1%) Carriers get to see the lane price bid by other carriers

What is the Department of Transportation's (DOT) Limitation?

DOT Weight Limitation is 80,000 lbs Gross = 80K lbs

Fill Rate improved by F&F (Frequency and Flexibility - __________ week Lead Time)

Fill Rate improved by F&F (Frequency and Flexibility - One week Lead Time)

Goal in Transportation is for carrier to MOVE _______,

Goal in Transportation is for carrier to MOVE FULL.

Hi Lo Retailers DIVERT.

Hi Lo Retailers DIVERT.

WMS -- X Dock Facilities

I/B Receipts are unloaded & "Destination" Bar Code applied to each item/case indicating Store Destination Each case received goes onto the Conveyer w/cameras that read the Store Destination Bar Code The Conveyer "kicks off" each case to the proper O/B door for the Trailer going to the Destination Store—Watch the end of the Walmart Video again (oh no!)

Optimal Pallets (finally)

Identify the "design parameters" for the Optimal Pallet Assume 2 types of Products Heavy vs Light Heavy Product = weigh out trailer at 45,000 lbs Light Product = cube out trailer at 108" loadable ht (trailer ht actually 110" thus have 2" clearance)

If we cannot get To control lead time, we use __________ (Vendor Managed Inventory), which we can use Intermodal (IM) for (however need to go 500 miles for IM)

If we cannot get To control lead time, we use VMI (Vendor Managed Inventory), which we can use Intermodal (IM) for (however need to go 500 miles for IM)

In it comes to _________, On Time is mostly driven by Transportation.

In it comes to Service, On Time is mostly driven by Transportation.

In our integrated system: we need to allocate to the order to the least cost ____________. we need to allocate the shipment to the least cost ___________ (determined by how the rank in TMS).

In our integrated system: we allocate to the order to the least cost warehouse. we need to allocate the shipment to the least cost carrier (determined by how the rank in TMS).

________________ Systems key to managing to Transportation effectively.

Integrated Systems key to managing to Transportation effectively.

Intermodal (IM) = ½ cost, min _______ miles

Intermodal (IM) = ½ cost, min 500 miles

Intermodal (IM)

Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (e.g., rail, ship, and truck), without any handling of the freight itself when changing modes.

Warehouse Economics Density and Distance!

Just like Transportation—"move full", "min wait time", "min distance" are the keys to lowering costs Thus Mfgrs palletize everything and use Fork Trucks to move at least 2 pallets at a time All DC's designed as a Rectangle (max # doors) The debate is Unload and Load on Same side or On Opposite Sides of Warehouse

Heavy Products - MAXIMIZE WEIGHT

KNOW STANDARD Pallet Size - 48' LONG and 40' WIDE 37 Min Ht and 68' Max Ht and 25000 max lbs/pallet KNOW STANDARD Truck Trailer - 53' Long and 102' WIDE 45,000 LBS LOADABLE WEIGHT 108 Loadable Height 45,000 / 2500 = 18 pallets at 2500

EXECUTE YMS

Keeps track of Spot Yard Trailers: Full Trailers = I/B's and Preloads Empty Trailers by Carrier by Location Manage "Trailer Pool" by carrier

Less Than Truckload (LTL)

LTL = too long, terminal to terminal, and damage and OS&D (Over, Short, and Damaged)

LTL carriers prefer ________ weight shipments.

LTL carriers prefer lower weight shipments. The lighter the weight, the higher the cost 1300 miles x $1 per mile = $1300 TL COST LTL = $10 per Cwt X Cwts x 10/ 10

Less Than Truck Load (LTL) carriers charge by __________ (100 pounds)

Less Than Truck Load (LTL) carriers charge by C weight (100 pounds)

Light Products - MAXIMIZE CUBE

Light Products - MAXIMIZE CUBE - STACK HIGH (always stack two high) MAKE PALLETS IN 54 INCHES 108" Loadable Height / 2 high = single height of 54" 53' LONG x 12" = 636 inches TRUCK IS 636 INCHES LONG Since we are doing turned pallets: Divide Long by Wide 636 / 40 = 15.9 pallets -> round down to 15 pallets one of side 15 x 2 = 30 on the floor 30 up above 30 + 30 = 60 total TRUCK IS FULL: 30,000 lbs and 60 pallets at 54' inches 2 pallets in each position

Planning is done by what Department?

Logistics Department

Distribution is done by what Department?

Logistics Department (Transportation)

Make sure drivers are always moving _______.

Make sure drivers are always moving FULL

Manage & Move Inventory while Balancing Cost and Customer Service

Manage & Move Inventory while Balancing Cost and Customer _________.

Convert WOS (Weeks of Supply) to Pallet Storage Requirements: If 6 WOS = 60K Pallet Loads of Products then:

Most Distribution Centerss use 6 ft hi storage racks at 5 high Pallet = 48" x 40" = 13.3 Sq Ft * 2 = 26.6 sq Ft Use 25 Sq Ft per Pallet Position in Whse (Aisles etc) Need to Store 60,000 Pallets (60K Pallets) Racks are 5 hi & each rack on floor requires 25 Ft Sq 60,000 pallets/5 hi = 12,000 pallets on floor 12K on Floor * 25 Sq Ft per Pallet Position = 300K Sq Ft

How Does One Make Sure Truck is "Full"?

Most Ton Miles in USA are by Truck Use Truckload as the Model (same principles apply to Intermodal** and Ocean Containers) Can Floor Load or load products atop pallets **What's Intermodal (IM???)

Need Lead Time More than ever b/c of driver ______________>

Need Lead Time More than ever b/c of driver shortage

Next Best Carrier has Tender Depth of _______

Next Best Carrier has Tender Depth of 2

What is the equation for On Time In Full (OTIF)?

% of Shipments OT X % Shipments in Full** Thus: OT Shipments = 94% "Full" Shipments = 90% On Time in Full (OTIF) = 85% *Shipments at 100% Cases Fill

What is the equation for On Time Case Fill?

% of Shipments OT x % Case Fill Rate Thus: OT Shipments = 94% Case Fill Rate = 99% On Time Case Fill (OTCF) = 93%

Spot Yard Impact on Integrated Systems

Now that we have a Spot Yard, we need a Yard Management System (YMS) to manage & we want it to interact with our other Integrated Log Systems thus: 1. Vendor Managed Inventory (VMI) 2. Operations Planning (OP) 3. Total Lease Land Costs (TLLC) 4. Transportation Management Systems (TMS) 5. Warehouse Management Systems (WMS) 6. Yard Management Systems (YMS) 7. Carrier Pick Up VMI>>OP>>TLLC>>TMS>>WMS>>YMS>>Carrier P/up Notice that we're bolting on new systems to help us manage and meet new challenges eg Hours of Service (HOS) restrictions & Driver Shortage leads to Spot Yard and then to Yard Management Systems (YMS)

What is the equation for On Time in Full (OTIF)?

OTIF = On Time, in Full (Walmart requires 85% OTIF) OTIF doesn't use cases but orders % of Full Orders x % On Time = OTIF 99% Case Fill Rate, but if that 1% of cases unavailable fall on 10% of the orders = 90% Full Orders Fill Rate = Cases Shipped / Cases Ordered 90% Full Orders x 94% On Time = 85% OTIF

CONTROL > Labor Saving Techniques

Palletize Everything with Stand up Fork Truck Handling Move Full = Operator B = Put Away from Dock>> Picks Customer Order>>Brings to dock >>Puts Away, etc Require Hi Vol items are ordered only in Full Pallets Reverse Pick (Customer Orders 40 cases & 50 in Pick Slot) Store Hi Volume (A items) in Front and Dogs in Back Conveyer Systems (Case Pick Operations = Retailers) w/Bar Code Readers = X Dock Facilities

Why are Density and Distance Important?

Pay carrier per mile (about $1.00 per mile for TL) If the move is 1000 miles than the cost is $1000 If 1 truck (100% full) then total cost is $1000 If 2 trucks (100% full) then total cost is $2000 If 2 trucks are HALF full then total cost is $2000!

Plan -> Bidding use ________

Plan -> Bidding use Transportation Management System (TMS)

Manage means what 3 things? What does PEC stand for?

Plan, Execute, Control

Plan, Execute, and Control in ________ (Transportation Management System, integrated systems)

Plan, Execute, and Control in TMS (Transportation Management System, integrated systems)

Supply Chain are broken into four groups

Plan, Purchase, Produce, Distribute

TMS Bid Finalized = Executional System

Rates in TMS Execucute System to "Tender" via Operations Planning Process: 1. Vendor Managed Inventory (VMI) 2. Operations Planning (OP) 3. Total Lease Land Costs (TLLC) 4. Transportation Management Systems (TMS) 5. Warehouse Management Systems (WMS) 6. Yard Management Systems (YMS) 7. Carrier Pick Up VMI>>OP>>TLLC>>PSI>>TMS>>WMS>>YMS>>Carrier P/up) 1st Allocate order to Lowest Cost (L/C) Carrier = Accepted = Tender Depth of 1 2nd If rejected then Next Lowest Cost (L/C) Carrier = Tender Depth of 2 etc We love a Tender Depth of 1 but typically about 1.5

What is RAD?

Requested Arrival Date

Reverse Logistics occurs mostly during ____________.

Reverse Logistics occurs mostly during RECALLS. VERY EXPENSIVE AND TIME CONSUMING, NOT SURE YOU GOT EVERYTHING.

same side vs. opposite side

Same Side = Manufacturer Distribution Centers Warehouse used for Put Away and Retrieval of Inventory = Storage of All Items - Store "A" items near front to min Distance Traveled in Distribution Center Opposite Sides = Retail Distribution Centers X Dock Facilities + Retailers who order from Manufactures via Store Scans + Walmart,Target, Home Depot, Costco, BJ's X Dock = Receive I/B on one Side and transfer product to O/B doors on Opposite Side

See what Truck Load carriers are bidding on Rate per mile

See what Truck Load (TL) carriers are bidding on Rate per mile

Carrier Strategy

Segment Carriers between—Strategic vs Tactical *Strategic Carriers:* - Lock in Volumes and Rates greater than 1 year - Invest in Light Wt Equipment for "Local" Shipments - Can do both Truck & Intermodal vs *Tactical* = Price driven not interested in partnership BOTH Strategic & Tactical—Must meet On Time (OT) greater than 94%

Service = _________ is a function of carrier delivery

Service = On time is a function of carrier delivery

Density

Short Version = Fill the trailer!!!

Distance

Short Version = Ship the product the fewest miles & keep moving.

TWC (tweeny weeny companies) need to use ___________.

TWC (tweeny weeny companies) need to use LTL

What is the standard Loadable Weight of a Trailer?

Tare weight of Cab, Trailer and Fat Truck Driver ~ 35K lbs Thus "loadable weight" = 80K - 35K = 45K = 45,000 lbs Loadable Weight = Weight in Trailer = Product & Pallets = 45K

What is Tender Depth?

Tender Depth an easy measurement and tells us if we're meeting our Goals (never set Plan Costs at 1 = variation in Supply Chain!)

Tender Depth for 1 = _________ Cost Carrier (ideal carrier)

Tender Depth for 1 = Lowest Cost Carrier (ideal carrier)

The more warehouses we have the _________ opportunity we have to use VMI because we need 500 miles between each warehouses If we have few warehouses = we focus on ___________. If we have many warehouses = we focus on ___________.

The more warehouses we have the *LESS* opportunity we have to use VMI because we need 500 miles between each warehouses If we have few warehouses = we focus on *COST*. If we have many warehouses = we focus on *SERVICE*.

3PL

Third Party Logistic Companies

TTLC

Total Lease Land and Costs (TTLC)

WMS -- Storage Warehouses Storage Location

Track Inventory by Warehouse Slot location (Sku and Quantity) Direct Operator B where to Put Away Inventory Direct Operator B to Slot to Retrieve Inventory RF Based (Pallet Bar Codes) & "Pick to Voice" Prioritize ATP Inbounds (but not at 3 PL's)

Financial Reporting

Track Plan vs Actual Costs by Lane (Point to Point) Voluminous data so sum by plant, by top 10 lanes Look at Lbs or cube per shipment (Optimal Pallet) Look at Miles per shipment (Network Analysis)

Chapter 9

Transportation

What is the number one Logistics Cost?

Transportation

Total Lease Land and Costs (TLLC) Elements

Transportation & Warehouse Labor (+DMC)

Transportation Costs = $/Cwt

Transportation Costs usually tracked on a $/C-weight basis C = Roman Numeral for 100 (Super Bowl C in 2066—I don't think I'll be watching but I hope you all get to) A Lane Cost of $900 at 45,000 lbs per trailer = $2.00/Cwt Some Companies use $/Cubic Feet (for Light Weight products-ugh)

Transportation Managed System (TMS) BID PACKAGE Part I-- Vols by Lane (Plant /Distribution Center to Customer)

Transportation Managed System (TMS) Bid: Part I - Annual "Reverse Auction" to carrier base-existing carriers (and new?—not so much via Consol'n) - Volume by lane in Annual # of Truckloads eg: York, Pa Plant/DC to: + Customer 1 in Elizabeth NJ 07202 = 250 TL's + Customer 2 in Dayton NJ 08810 = 100 TL's + Customer 3 in etc etc etc - Carriers see annual volume by lane - Uses bid data with existing business to set up a "backhaul" to Move Full - Backhaul = round trip (vs Headhaul = 1 way) - New Jersey is a Headhaul market

Transportation is a function of ____, ____, & ______.

Transportation: Function of D&D (Density, Distance, and Lead Time)

Truck Load (TL) carriers charge by ___________.

Truck Load (TL) carriers charge by MILE.

What's the Break Even for an Less Than Truckload (LTL) Shipment when LTL rate is $10/Cwt?

Truck Load cost is $1300 miles * $10/Cwt Breakeven from LTL to TL can be written as: X Cwts * $10/Cwt = $1300 Or X Cwts * $10 = $1300 So we can divide both sides of the equation by the common value of $10 to Solve for X ie X Cwts *$10/ $10 = $1,300 / $10 The Numerator and Denominator common values ("$10") cancel out (left side) thus: X Cwts = $1,300 / $10 X Cwts = 130 Thus B/Even = 130 Cwts or 13,000 lbs

Two transport principles to Move Inventory at Lowest Cost = Density and _______________.

Two transport principles to Move Inventory at Lowest Cost = Density and Distance

CHAPTER 10

WAREHOUSING

Integrated Systems: vmi>>OP>>TLLC>>PSI>>TMS>>WMS>>YMS

WMS for L & L (Labor and Location Mgt) YMS is a version of WMS to manage Spot Yard

Want to partner which retailers based on how they SELL

Want to partner which retailers based on how they ___________. We prefer EDLP (Every Day Low Price) retailers over Hi Lo Retailers (Stack High, Price Low).

Warehouse Management System Labor Planning

Warehouses have workload Peaks and Valleys during week WMS = Calcs Labor Hrs Needed by Order by Day Valleys = "Pull Orders Ahead" to smooth out Labor Orders Pulled Ahead = Preloads for Spot Yard

We prefer VMI (Vendor Managed Inventory) - we can ship by Intermodal (IM) to cut our transportation costs by ½

We prefer VMI (Vendor Managed Inventory) - we can ship by Intermodal (IM) to cut our transportation costs by _______.

We tender orders to the lowest cost carrier (Tender Depth of _____) Order gets allocated to TD carrier of 1, they have 2 hours to accept, after that it goes to TD carrier of ______.

We tender orders to the lowest cost carrier (Tender Depth of 1) Order gets allocated to TD carrier of 1, they have 2 hours to accept, after that it goes to TD carrier of 2

How do we fill up the truck?

We want to fill up the truck with PRODUCT Using the entire space of the truck -> Using entire CUBE of the truck

What is the Density Limitation?

Weight per Truck

II Vendor Managed Inventory

a.) "We" write Customer Orders or Purchase Orders (PO's) to Maximize Plant Demand Planning Systems (DPS) b.) Example--2 Product Lines: A (LLD) & B (Cat Litter) c.) A is Made in Pa & B is Made in Ohio d.) We write Vendor Managed Inventory (VMI) order for Full Truck of A & another order for full truck of B e.) Customer would write order for ½ truck of A & ½ Truck of B f.) VMI = avoids us having to ship A to B or B to A g.) Make Sense???

Understand Weighted Average Net Pricing

*EDLP - Every Day Lo Price:* - Manufacturer Sells: 80% at $10 / case 20% @ $8/ case ($2 deal) .8 x 10 = 8 .2 x 8 = 1.6 8 + 1.6 = 9.6 Weighted Average Net Price = $9.60 Mass, Club, Dollar Replenish via Scan Data *Hi, Lo* - Stack Hi, Price Lo Manufacturer sells: 60% at $12 / case 40% at $6 case ($6 deal) 12 x .60 = 7.2 6 x .40 = 2.4 7.2 + 2.4 = 9.6 Weighted Average Net Price = $9.60 Grocery, Drug Loss Leaders and Diverting

*Distance = Minimum "Product" Miles Driven via:* *I Network Design*

*I Network Design* a.) Distribution Center attached to each High Volume Plant (Church & Dwight= 4) thus: Plant >>Customer Demand Planning System (DPS) vs Plant>>Market Center Distribution Center >>>Customer b.) Make High Volume items at "all plants" for Demand Planning System c.) Also accomplishes 1 Long Shipment vs 2 short (i.e. 1 @ 1000 mi vs 2 @ 500)

What are the three systems/tools to manage transportation?

*Plan, Execute, & Control* *PEC* *Plan = Transportation Management System (TMS) Bid Package* Density Improvements (done) Network Design (done) Carrier Strategy Optimal Pallet Design *Execute* = *Transportation Management System (TMS)* Load Tendering Vendor Managed Inventory (VMI) (done) Yard Managed Inventory (YMS) *Control* = *Transportation Managed System* *(TMS)* On Time Reporting & Financial Reporting

How do we use the systems /tools of Plan, Execute, Control (PEC) to manage transportation?

- *Plan* = *Transportation Management System (TMS) Bid Package*, Density Improvements, Network Design, Carrier Strategy, Optimal Pallet Design - *Execute* = *Transportation Management System (TMS) Load Tendering* ; Vendor Managed Inventory (VMI) - *Control* = *Transportation Management System (TMS) On Time* Reporting & Financial Reporting *Transportation Management System (TMS) at the Heart of Transportation Management*

Distance = Keep Moving (via Network Design for Spot Yard)

- Can cover more miles when moving vs sitting (duh) - Carriers charge shipper if driver sits > 2 hours to Load/Unload (such as at a customer's Distribution Center) - Build Trailer Spot Yard as part of Network Design 1. Preload Trailer 2. Place in site's Spot Yard 3. Carrier's driver brings an empty trailer to drop in yard & hooks (the full trailer in yard) = Yard Management System (YMS) to Manage Spot Yard - Hours of Service (HOS) rules more restrictive for drivers - Used to be drive time only, now it's 8 hrs total

Late Carriers Lose Volume

- Carriers consistently late in a lane lose volume - What good is it to save $100 for low cost carrier but pay $500 Compliance Fines for late delivery to RAD (Requested Arrival Date) - This is what Kraft did not understand in the 90's when they had Transportation managed by Purchasing

CONTROL Measurement Reports

- Cases per Hour - Space Utilization (85% = Full) - % Full Pallets Ordered - Trailer Time In Yard (48 Hr Free Time on Average) - Damage % (based on Customer OS&D claims) - Pick Accuracy % (based on Customer OS&D claims) - Cycle Count Accuracy - "Floor Cuts" (next Slide)

Most Customer Packaged Goods (CPGS) uses 3PL (Third Party Logistics Companies)

- Flexible Space = 3 PL's adept at adding space - Service Driven via Market Centered Distribution Centers's ie Many Plants>>>3PL Market DC's>>>Customer - Facilitate Short Order Lead Time and Hi CPU - DIY Requires Investment in Facilities and SYSTEMS - Don't view Warehousing as a core competency - Can leave for another location without building write off - Can bid volume across multiple providers

What 5 typical density improvement tools?

- Light Weight Carrier Equipment (+8% Loadable Wt) - Plastic Pallets (50 lbs) vs Wood (70 lbs) - Floor Load trailer (no pallets vs Warehouse Labor (Slide 4) - Concentrated (LLD) Formulas - Use Value Analysis to "Substeetute" lighter weight materials where there's high cost and low value

What are three aspects of Strategic Carriers?

- Light Weight Equipment (old news) - Dedicated Equipment = handle all shipments within a 200 mile radius and combine with a Backhaul for a "continuous move" - C&D does this with all loads going into NJ and combine with Backhaul from Lakewood NJ Plant

Manufacturers put products on pallets to reduce time moving products. Why?

- Manufactures pay higher than retailers - Need to move products faster to save costs on manual labor

Prior to Transportation Managed System (TMS) Bid (bygone era) what would happen?

- More than 10,000 (perhaps a slight exaggeration) carrier salesmen/day with individual negotiations - Time consuming and inefficient - Local Plant Traffic Manager picked "lunchtime" carrier b/c—no system to track volume by carrier - Thus thank goodness for Integrated Systems!

OT (On Time)

- On Time reporting maintained in Transportation Managed System (TMS) via Electronic Data Interchange (EDI) 214's - Carrier sends EDI 214 Shipment status up to time of Customer Delivery - Late Shipments (Vs RAD = Req Arrival Date) Flagged - EDI 214's automatically logged into TMS - Sterling Commerce (Div of IBM) is one TMS Provider - Sterling is a hosted system = minimal investment - Some Manufacturers using Real Time GPS Data - C&D = 94% On Time vs Requested Arrival Date (RAD)

"Manage" Warehousing

- Plan = Warehouse Network & Size of each Facility - Execute = WMS, YMS - Control = Measurements + Plan vs Actual Costs + Labor Saving Techniques + Performance Measurements + Location Management (Warehouse Managed Systems / Yard Managed Systems) (WMS/YMS)

Tender Depth

- Shouldn't we always have a Tender Depth of 1? - Order Lead Time is the Limiting Factor - Intermodal needs more time (it's half the cost of TL) - Customer Service needs to "push back" on short order lead time from Customers or do VMI

What are four Logistics Costs?

- Transportation - Warehousing - Inventory Carry - Log Overheads

What are five typical Consumer Packaged Goods Logistics Costs?

- Transportation: 65% - Warehouse / Distribution Center Labor: 15% - Inventory Carrying Cost (including Fixed Warehouse Cost): 3% - Logistics Overheads: 15% - Compliance Fines: 2% Transportation is 4 times more than any other Logistics Costs and thus we must manage it *well*!

Location Mgt & Labor Mgt (L&L) for the 4 Whse Steps:

1. I/B Unload/Stage on Dock (Operator A) 2. I/B Put Away (Operator B) 3. O/B Retrieve/Pick/Stage on Dock (Operator B) 4. O/B Load (Operator A) Note: "A" stays at Dock Area and "B" roams We want Operator's A & B to "Move Full" = preferably 2 pallets at a time (or more, depending on equipment) When Operator B is picking an order by retrieving a full pallet or placing individual cases on a pallet-- Operator B brings that pallet to the dock and puts away an Inbound that's sitting on the dock awaiting to be put away

What are the 5 steps of Logistic Integrated Systems?

1. Operations Planning (OP) > Total Lease Land and Costs (TLLC) = Receive Order to Allocate to Least Cost Distribution Center (DC) 2. Total Lease Land and Costs (TLLC) > Production, Sales, Inventory (PSI) = Check Inventory Availability 3. Production, Sales, Inventory (PSI) >> Transportation Management System (TMS) = Tender Order to Least Cost Carrier First 4. Warehouse Management System = Pick / Stage order for Carrier Pick Up 5. Transportation Management System (TMS) = Confirm time and date of delivery 1. Operations Planning (OP) 2. Total Lease Land and Costs (TLLC) 3. Production, Sales, Inventory (PSI) 4. Transportation Management System (TMS) 5. Warehouse Management System (WMS) 6. Carrier Pick Up 7. Transportation Management System (TMS)

Integrated Systems to Manage and Move Inventory while Balancing Cost & Customer Service—All elements involve Warehousing:

65% Log Costs = Transportation 15% Log Costs = Warehouse/DC Labor 3% Inv Carrying = Fixed Whse $ ( H, L, P) + Taxes & Insurance