当代物流学课件PPT(英文版） 318页

'CHAPTER1LogisticsandtheSupplyChain ©2008PrenticeHall1-2LearningObjectivesTolearnthedefinitionoflogisticsTounderstandtheeconomicimportanceoflogisticsTolearnofrecenteventsandtheirinfluencesonlogisticspractices ©2008PrenticeHall1-3LearningObjectivesTogainanunderstandingoflogisticspracticeswithinafirmTolearndifferentpricingpoliciesToknowaboutlogisticscareers ©2008PrenticeHall1-4LogisticsandtheSupplyChainKeyTermsChannelintermediariesCosttrade-offsEconomicutilityFIFOFOBorigin/destinationpricingsystemsKeyTermsFormutilityFreightabsorptionLandedcostsLIFOMarketingchannel ©2008PrenticeHall1-5LogisticsandtheSupplyChainKeyTermsPhantomfreightPlaceutilityPossessionutilityReverselogisticsSupplychainKeyTermsStock-keepingunits(SKUs)StockoutsSystemsapproachTimeutilityTotalcostapproach ©2008PrenticeHall1-6EconomicImpactsofLogisticsMacroeconomicImpactsEconomicUtilityPossessionutilityFormutilityPlaceutilityTimeutility ©2008PrenticeHall1-7Table1-1:TheCostoftheBusinessLogisticsSysteminRelationtoGrossDomesticProduct(GDP)in$BillionYearInventoryCarryingCostsTransportationCostsAdministrativeCostsTotalU.S.LogisticsCostLogisticsAsaPercentageofGDP1960314437814.719653864410614.719705691615314.7197597116922213.519802202141745116.119852272742052112.419902833512565911.419953024413077310.42000377590391,00610.1Source:R.WilsonandR.Delaney,TwelfthAnnualStateofLogisticsReport,2001 ©2008PrenticeHall1-8Logistics:WhatItIsCouncilofLogisticsManagementdefinition:“Logisticsisthatpartofthesupplychainprocessthatplans,implements,andcontrolstheefficient,effectiveforwardandreverseflowandstorageofgoods,services,andrelatedinformationbetweenthepointoforiginandthepointofconsumptioninordertomeetcustomers’requirements.”Source:clm1.org ©2008PrenticeHall1-9Logistics:WhatItIs《中华人民共和国物流术语标准》中物流的定义：物流是物品从供应地向接受地的实体流动的过程。根据实际需要，将运输、储存、装卸、搬运、包装、流通加工、配送、信息处理等功能有机结合，来实现用户要求。 ©2008PrenticeHall1-10TheIncreasedImportanceofLogisticsAReductioninEconomicRegulationRecognitionbyProminentNon-LogisticiansTechnologicalAdvancesTheGrowingPowerofRetailersGlobalizationofTrade ©2008PrenticeHall1-11TheSystemsandTotalCostApproachestoLogisticsSystemsApproachInterdependenceofcompanyandlogisticsgoalsInterdependenceoffunctionalareasStock-keepingunits(SKUs)InterdependenceoflogisticsactivitiesorIntrafunctionallogistics ©2008PrenticeHall1-12Figure1-1:ControlOvertheFlowofInboundandOutboundMovements ©2008PrenticeHall1-13Figure1-2:TheUtilizationofLogisticsServiceasaMajorSellingPoint ©2008PrenticeHall1-14TheSystemsandTotalCostApproachestoLogisticsTotalCostApproachCosttrade-offs:changestooneactivitycausesomecoststoincreaseandotherstodecreaseTotalLogisticsConcept:tofindthelowesttotalcostthatsupportsanorganization’scustomerservicerequirements ©2008PrenticeHall1-15LogisticalRelationshipswithintheFirmFinanceLIFOFIFOProduction ©2008PrenticeHall1-16LogisticalRelationshipswithintheFirmMarketingPlaceDecisionsPriceDecisionsFOBorigin/FOBdestinationpricingsystemsLandedcostsPhantomfreightFreightabsorption ©2008PrenticeHall1-17Figure1-3:PhantomFreightandFreightAbsorption ©2008PrenticeHall1-18LogisticalRelationshipswithintheFirmMarketingProductDecisionsStockoutsPromotionDecisions ©2008PrenticeHall1-19MarketingChannels“setsofinterdependentorganizationsinvolvedintheprocessofmakingaproductorserviceavailableforuseorconsumption.”Source:LouisW.SternandAdelI.El-Ansary,MarketingChannels,4thedition,UpperSaddleRiver,NJ:PrenticeHall,1992,p.1OwnershipchannelManufacturersWholesalersRetailers ©2008PrenticeHall1-20MarketingChannelsNegotiationschannelBuyandsellagreementsarereachedFinancingchannelPaymentsforgoodsPromotionschannelPromotinganeworexistingproductLogisticschannelMovingandstoringproductthroughoutthechannel ©2008PrenticeHall1-21ChannelIntermediaries/FacilitatorsOwnershipchannelBanks,publicwarehousesNegotiationschannelBrokersFinancingchannelBanks,insurancecompaniesPromotionschannelAdvertisingagencies,publicrelationsagenciesLogisticschannelFreightforwarders ©2008PrenticeHall1-22ActivitiesintheLogisticalChannelCustomerserviceFacilitylocationdecisionsInventorymanagementOrdermanagementProductionschedulingReturnedproductsTransportationmanagementDemandforecastingIndustrialpackagingMaterialshandlingPartsandservicesupportProcurementSalvageandscrapdisposalWarehousingmanagement ©2008PrenticeHall1-23ActivitiesintheLogisticalChannelCustomerserviceFacilitylocationdecisionsInventorymanagementOrdermanagementProductionschedulingReturnedproductsTransportationmanagementDemandforecastingIndustrialpackagingMaterialshandlingPartsandservicesupportProcurementSalvageandscrapdisposalWarehousingmanagement ©2008PrenticeHall1-24ActivitiesintheLogisticalChannelCustomerserviceFacilitylocationdecisionsInventorymanagementOrdermanagementProductionschedulingReturnedproductsTransportationmanagementDemandforecastingIndustrialpackagingMaterialshandlingPartsandservicesupportProcurementSalvageandscrapdisposalWarehousingmanagement ©2008PrenticeHall1-25ResponsibilitiesofLogisticsManagersAspecialistFreightratesWarehouselayoutsInventoryanalysisProductionPurchasingTransportationlawAgeneralistUnderstandsfunctionalrelationshipsRelateslogisticstootherfirmoperations,suppliers,customersControlslargeexpenditures ©2008PrenticeHall1-26LogisticsCareersMostbusinessorganizationsarepotentialemployersLogisticsisthesecond-largestemploymentsectorintheUnitedStatesTheCEOofWal-MartbeganhisWal-Martcareerinthelogisticsarea! ©2008PrenticeHall1-27LogisticsProfessionalismCouncilofLogisticsManagementCanadianAssociationofLogisticsManagementAmericanProductionandInventoryControlSocietyAmericanSocietyofTransportationandLogisticsAssociationforTransportationLaw,Logistics,andPolicyDeltaNuAlphaInternationalSocietyofLogisticsTransportationResearchForumWarehousingandEducationResearchCouncilProfessionalOrganizationsDedicatedtoAdvancingtheProfessionalKnowledgeoftheirmembers: CHAPTER2TheSupplyChainManagementConcept LearningObjectivesTolearnaboutsupplychainsandtheirmanagementTounderstanddifferencesbetweentransactionalandrelationalexchangesTorealizetheimportanceofleveragingtechnologyToappreciatebarrierstosupplychainmanagement TheSupplyChainConceptKeyTermsBullwhipeffectContractlogisticsCoopetitionCustomerpowerFourth-partylogistics(4PL)KeyTermsJITIILeadlogisticsprovider(LLP)LogisticsoutsourcingPartnershipsRelationalexchanges TheSupplyChainConceptKeyTermsSCORmodelStrategicalliancesSupplychainSupplychaincouncilsSupplychainmanagementKeyTermsThird-partyarrangementsThird-partylogisticsTransactionalexchanges AboutSupplyChains…Asupplychain“encompassesallactivitiesassociatedwiththeflowandtransformationofgoodsfromtherawmaterialstage(extraction),throughtotheenduser,aswellastheassociatedinformationflows.”Source:RobertB.HandfieldandErnestL.Nichols,Jr.,IntroductiontoSupplyChainManagement Figure2-1:DifferentSupplyChainConfigurations SupplyChainManagementSupplychainmanagementis“thesystemic,strategiccoordinationofthetraditionalbusinessfunctionsandthetacticsacrossthesebusinessfunctionswithinaparticularcompanyandacrossbusinessesinthesupplychain,forthepurposesofimprovingthelong-termperformanceoftheindividualcompaniesandthesupplychainasawhole.”Source:JohnT.Mentzeretal.,“DefiningSupplyChainManagement,”JournalofBusinessLogistics SuccessfulSupplyChainshave…anenterprise-to-enterprisepointofviewasystemsapproachacrossallorganizationsinthesupplychainCompaniesrecognizeinterdependenciesGoalsandobjectivesarecompatible Figure2-2:TheSupplyChainOperationsReference(SCOR)Model JITIIDevelopedbyBoseCorporationSupplierintegrationprogramAmorerealisticcompetitiveperspective“In-plants” GlobalizationofSupplyChainsIncreasingglobalizationLowerpricedmaterialsandlaborGlobalperspectiveofcompaniesDevelopmentofglobalcompetitionExtremelydifficulttoexecuteduetodifferencesCultural,economic,andtechnologicalPolitical,spatial,andlogistical KeyAttributesofSupplyChainManagementCustomerpowerLong-termorientationRelationalexchangesTransactionalexchangesLeveragingtechnologyEnhancedcommunicationacrossorganizations KeyAttributesofSupplyChainManagementInventorycontrolBullwhipeffectJAZInteractivity,interfunctional,andinterorganizationalcoordinationSupplychaincouncilsCoopetition BarrierstoSupplyChainManagementRegulatoryandpoliticalconsiderationsLackoftopmanagementcommitmentReluctancetoshare,oruse,relevantdataIncompatibleinformationsystemsIncompatiblecorporatecultures SupplyChainManagementandIntegrationLong-term,mutuallybeneficialagreementsPartnershipsStrategicalliancesThird-partyarrangementsContractlogisticsMethodsusedtointegrateVerticalintegrationFormalcontractsInformalagreements SupplyChainManagementandIntegrationThird-PartyLogistics(3PL)LogisticsoutsourcingContractlogisticsFourth-partylogistics(4PL)primarilyusedinglobalcompaniesLeadlogisticsprovider(LLP)Supplychainsoftware CHAPTER3LogisticsandInformationTechnology LearningObjectivesToappreciatetheimportanceofeffectiveandefficientutilizationofinformationforlogisticsmanagementTolearnaboutgeneraltypesofinformationsystemsandtheirlogisticalapplications LearningObjectivesTounderstandtheimpactofelectroniccommerceonchanneldesignTounderstandkeydifferencesbetweenthelogisticsofe-fulfillmentandthelogisticsoftraditionalfulfillment LogisticsandInformationTechnologyKeyTermsApplicationserviceproviders(ASP)Artificialintelligence(AI)DataminingDecisionsupportsystem(DSS)KeyTermsE-fulfillmentElectronicdatainterchange(EDI)Enterpriseresourceplanning(ERP)systemLogisticsexchanges LogisticsandInformationTechnologyKeyTermsLogisticsinformationsystem(LIS)OfficeautomationsystemKeyTermsSimulationTransactionprocessingsystem(TPS) BenefitsofEffectiveandEfficientUseofInformationReplacementofinventorywithinformationReducedvariabilityinthesupplychainBettercoordinationofmanufacturing,marketing,anddistributionStreamlinedorderprocessingandreducedlead-times Figure:GeneralTypesofInformationManagementSystems GeneralTypesofInformationManagementSystemsOfficeautomationsystemProcesspersonalandorganizationalbusinessdataPerformcalculationsCreatedocuments GeneralTypesofInformationManagementSystemsCommunicationsystemHelpstakeholdersworktogetherbyinteractingandsharinginformationExamplesofuseVirtualmeetingsVideoconferencingusingcellphonesVoice-basedorderpicking GeneralTypesofInformationManagementSystemsTransactionProcessingSystem(TPS)CollectsandstoresinformationabouttransactionsEfficientprocessingoftransactionsReal-timeprocessingBatchprocessing GeneralTypesofInformationManagementSystemsTransactionProcessingSystem(TPS)(continued)ElectronicdatainterchangeBenefitsDrawbacksGlobalusage GeneralTypesofInformationManagementSystemsTransactionProcessingSystem(TPS)(continued)AutomaticidentificationtechnologiesTypes:OpticalcharacterrecognitionMachinevisionVoice-dataentryRadio-frequencyidentificationMagneticstripsBarcodescannersPoint-of-salesystems(POS)enhancedecisionmaking GeneralTypesofInformationManagementSystemsManagementInformationSystem(MIS)andExecutiveInformationSystem(EIS)ConvertdataintoinformationLogisticsinformationsystem:thepeople,equipment,andprocedurestogather,sort,analyze,evaluate,anddistributeneeded,timely,andaccurateinformationtologisticsdecisionmakers Figure3-2:StructureandFunctionofaLogisticsInformationSystem GeneralTypesofInformationManagementSystemsDecisionSupportSystems(DSS)provideinformation,models,oranalysistoolsSimulationArtificialIntelligence(AI)ApplicationspecificsoftwareDatamining GeneralTypesofInformationManagementSystemsEnterpriseresourceplanning(ERP)Allcompanyfunctionalareasuseacommondatabaseto:StandardizemanufacturingprocessesIntegratefinancialdataStandardizehumanresourcedataShortcomingsCostsofinstallationTime-consuminginstallationprocess ElectronicCommerceandLogisticsInternetimpactsinclude:LogisticsfunctionsTransportationOrdermanagementChanneldesign ElectronicCommerceandLogisticsInternetimpacts(continued)Intermediaries4categoriesoflogisticsexchangesEnhancingprocurementservicesMatchingshippersandcarriersExecutingrelevanttransactionsTransactingwithpartnersApplicationserviceprovidersprovideaccessovertheInternettoapplicationsandrelatedservicesthatwouldotherwisehavetobelocatedinenterprisecomputers ElectronicCommerceandLogisticsE-Fulfillmentisthecoordinatedinboundandoutboundlogisticsfunctionsthatfacilitatethemanagementanddeliveryofcustomerordersplacedonline ElectronicCommerceandLogisticsE-fulfillmentManylogisticalfunctionsandactivitiesoccurMore,smallerordersOrdermanagementandinformationmanagementsystemsmusthandlelargevolumesofordersSmallerordersdictateopen-casepickingTraditionalFulfillmentManylogisticalfunctionsandactivitiesoccurFewer,largerordersOrdermanagementsystemissetuptohandleordersfromresellers,notconsumersFull-casepickingWarehousesetuptohandlelargevolumeorders ElectronicCommerceandLogisticsE-fulfillmentProductsslottedtofacilitatepickingsmallerordersTotesandpushcartsusedPackagingissmallcartons,envelopes,bagssuitedtoholdingsmallquantitiesTraditionalFulfillmentWarehousesetuptohandlelargevolumeordersVarietyofmaterialshandlingequipmentusedPackaginggenerallycartonsthatholdlargevolumeorders ElectronicCommerceandLogisticsE-fulfillmentTransportationcompaniesusedwithextensivedeliverynetworks;experienceinparcelshipmentsOutboundshipmentsusuallypickedupbyvansReturnratesmuchhigherandfromultimateconsumersTraditionalFulfillmentTransportationmethodsandcompaniesvarybyrequestofbuyerOutboundshipmentsmaybepickedupbytractortrailersorrailcarsReturnrateslowerandfromresellers CHAPTER4DemandManagement,OrderManagement,andCustomerService LearningObjectivesTounderstandhowafirmprocessesincomingordersTounderstandtheimportanceofcustomerservicetoafirm’smarketingactivitiesTorelatetheroleoflogisticsinthecustomerservicearea LearningObjectivesToexaminewhycustomerservicestandardsshouldbespecificandmeasurableTodescribehowacustomerserviceprogramisestablishedandmaintained OrderManagementandCustomerServiceKeyTermsCustomerserviceEfficientConsumerResponse(ECR)LoadplanningOrdercycleKeyTermsOrderdeliveryOrderentryOrderhandlingOrdermanagement OrderManagementandCustomerServiceKeyTermsOrderpickingandassemblyOrderprocessingOrdertransmittalKeyTermsQuickResponse(QR)Replenishmentcycle OrderManagementOrdermanagementistheactivitiesthattakeplaceintheperiodbetweenthetimeafirmreceivesanorderandthetimeawarehouseisnotifiedtoshipthegoodstofillthatorderOrderplanning-connectedtosalesforecastingOrdertransmittalOrderprocessingOrderpickingandassemblyOrderdelivery OrderManagementOrdercycledefinedbytheseller:timefromwhenanorderisreceivedtowhenthegoodsarriveatthecustomer’sdockOrdercycledefinedbythebuyer:timefromwhenanorderisplacedtowhenthegoodsarereceived.AlsocalledreplenishmentcycleGettingshorterMoreprecisedeliverytimesCustomercantrackordersQualityisimportantandisbenchmarked OrderManagementOrderplanningNeedsanefficientorderhandlingsystemtopreventbunchingMethodstoreducebunchingUseoffieldsalespeopleUseofphonesalespeoplePricediscountstocustomersplacingregularorders OrderManagementOrdertransmittalistheseriesofeventsthatoccurbetweenthetimeacustomerplacesorsendsanorderandthetimethesellerreceivestheorderMethodsofordertransmittalPhoneFAXMailScanningbarcodes-electronicsubmissionPOSregistersInternet Figure4-1:Mail-InOrderFormUsedbyAWDirect OrderManagementOrderprocessingincludes:CheckingforcompletenessandaccuracyAcustomercreditcheckOrderentryintothecomputersystemMarketingdepartmentcreditssalespersonAccountingdepartmentrecordstransactionInventorydepartmentlocatesnearestwarehousetocustomerandadvisesthemtopicktheorderTransportationdepartmentarrangesforshipment Figure4-3:FlowchartofOrderHandling(OrderProcessing)System OrderManagementOrderprocessingIfthereisastockoutNotifythecustomerassoonaspossibleofstockoutNotifywhenshipmentwilloccurGivethecustomertheoptionofacceptingin-stock,similarproductsExportordersNeedaletterofcreditInternationalfreightforwarderspreparedocumentsandarrangeshipment OrderManagementOrderpickingandassemblyincludesNotifyingthewarehousetoassembleagivenorderProvidinganorderpickinglist,indicatingitemsandorderofpicktoawarehouseemployeeCheckingpickedordersforaccuracyStockoutinformationsenttoorderhandlingdepartmentsothatdocumentscanbeadjustedPackinglistenclosedwithorderincludingemployeeinitialsofpersonwhopackedorder OrderManagementOrderdeliveryisthetimefromwhenacarrierpicksuptheshipmentuntilitisdeliveredtothecustomer’sreceivingdockLoadplanningisthearrangementofgoodswithinthetrailerorcontainerCarriersestablishtheirownservicestandardsSomecustomerspickuptheirorders OrderManagementImportanceoftheordercycleShortcycletimeusedasamarketingandsalestoolMonitoringtheordercyclecanincreasefirmefficiencyEfficientConsumerResponse(ECR)/QuickResponse(QR)UsedingroceryindustryandbymassmerchandisersPOSdatausedtotriggerorderKeyedtomoreorderly,regularflowofproduct,smallerinventory CustomerServiceCustomerserviceisacollectionofactivitiesperformedinawaythatkeepscustomershappyandcreatesinthecustomer’smindtheperceptionofanorganizationthatiseasytodobusinesswithCustomerserviceismuchmoredifficultforcompetitorstoimitatethanpricecutsorothercompetitivestrategies CustomerServiceValue-addedactivitiesprovidedbycustomerserviceinclude:PlacingbarcodelabelsoncartonsArrangingacarton,pallet,ortruckinthesequencethecustomerwouldliketounloaditShrink-wrappingInsertingdocumentsintocartonsBlendingproductsAddingpricetagsAddinggraphicsforexportgoodsAssemblingkits CustomerServiceEstablishingObjectivesSpecificMeasurableAchievableConsistentwithbroaderfirmgoalsMustconsidercompetitor’sobjectivesProvideguidancetooperatingpersonnel CustomerServiceReturnedProductsNewflowofproductsaresetupNewinfrastructureisrequiredGoodsandmaterialsarereturnedforvariousreasonsGroceryindustryusesreclamationcentersforreturns RoleofLogisticsinEstablishingCustomerServiceLevelsAdvisortomarketingEstablishingacustomerserviceprogramAskthecustomerwhatisimportanttothemInvestigatetheserviceofferedbycompetitorsConsiderthecostofalternativeserviceprogramsAnalyzetheinformationandwritetheobjectivesUsingtheInternettoimprovecustomerservice MeasuringandControllingCustomerServicePerformancemodelAuditcreditmemos MeetingCustomerDemandsControltheprocessFirmsdemandinghigherlevelsofcustomerserviceWithreliableservice,thefirmcanmaintainlowerinventorylevelsResellersmonitorvendorqualitylookingforthosewithunacceptablequalitylevelsProcessisoftendehumanized;servicecanmakeitmorepersonal CHAPTER5ProtectivePackagingandMaterialsHandling LearningObjectivesToknowhowproductfeaturesaffectpackagingandmaterialshandlingToidentifythefunctionsperformedbyprotectivepackagingToanalyzetheutilizationofunitloadsinmaterialshandling LearningObjectivesToappreciatehowtheenvironmentalprotectionmovementhasaffectedpackagingandpackagechoiceTolearnmaterialshandlingprinciples ProtectivePackagingandMaterialsHandlingKeyTermsBuilding-blocksconceptBulkmaterialsCompliancelabelingKeyTermsErgonomicsMaterialshandlingPackagetesting ProtectivePackagingandMaterialsHandlingKeyTermsPalletsRecycledcontentSlipsheetKeyTermsUnitizationUnitloads ProductCharacteristicsPhysicalCharacteristicsDensityofbulkmaterialsAbilitytowithstandexposuretoelementsRespirationChemicalCharacteristicsIncompatibleproductsProductsrequiringchemicalsCharacteristicsmustbemadeknowntoconsumers Figure5-1:PortionofFabricCareLabelforLevi’sJeansSoldinJapan ProductCharacteristicsHazardousCargoExplosivesCompressedgasesFlammableliquidsOxidizersPoisonsRadioactivematerialsCorrosivematerials ProductCharacteristicsEnvironmentalProtectionReducepackingmaterialsusedUsepackagingmaterialsthataremoreenvironmentallyfriendlywithrecycledcontentUsereusablecontainersRetainorsupportservicesthatcollectusedpackagingandrecycleit ProductCharacteristicsPackagingScrapDisposalPalletshredderMetricSystemUsage Figure5-3:APalletShredderDesignedtoReducetheCubicVolumeofWoodenPalletsandCratingSoThatTheyCostLesstoTransport PackagingBuilding-blocksconceptSmallestunitisconsumerpackageEachunitisstockedwithinthenextlargeronetoprotecttheproductPromotionalfunctionsofboxes PackagingProtectivefunctionsofpackagingEnclosematerialsRestrainmaterialsfromundesiredmovementSeparatecontentstopreventundesiredcontactCushioncontentsfromoutsidevibrationsandshocksSupporttheweightofidenticalcontainersstackedabovePositionthecontentstoprovidemaximumprotectionProvideforuniformweightdistributionProvideexteriorsurfaceforlabelingBetamperproofBesafeforconsumersorothers Figure5-7:ChecklistforBoxUsers Figure5-9:Boxmaker’sCertificate(BMC) PackagingPackagetestingVibrationsDroppingHorizontalimpactsCompressionOverexposuretoextremetemperaturesormoistureRoughhandling Figure5-10:ResultsofCompressionTest PackagingApackagesystemrequires3typesofinformationtodesignSeverityofthedistributionenvironmentFragilityoftheproductPerformancecharacteristicsofvariouscushionmaterials PackagingLabelingRetroflectivelabelsBatchnumbersWeightSpecificcontentsInstructionsforuseInformationtoallowpassagethroughcustomsCompliancelabelingOne-ortwo-dimensionalbarcodesSmartlabelsorRFIDlabels Figure5-14:ExamplesofShippingLabels Figure5-16:AHandheldLaserScannerScanningLabelsonaPalletLoadofProductSittinginaWarehouseRack UnitLoadsinMaterialsHandlingBasicunitisapalletorskidLumberisexpensivesofirmswantpalletsreturnedProvidescushioningeffectintransportQualityofpalletsvarieswidelyChepUSArentspalletsinwoodorplasticShouldbelessthan50pounds—difficultwithplasticMetalalsousedinclosedloopsystems UnitLoadsinMaterialsHandlingAunitloadisoneormoreboxessecuredtoapalletorskidsothatboxescanbehandledbymechanicalmeansRainbowpalletloadUnitizationdescribesthistypeofhandlingSlipsheetcanbeusedinplaceofpalletSavesverticalroomRequiresmorecarewhenmoving UnitLoadsinMaterialsHandlingAdvantagesAdditionalprotectionPilferageisdiscouragedMorefragileitemscanbestackedinsidetheloadMechanicaldevicescanbesubstitutedforhandlaborDisadvantagesProvideslargequantitythatsometimesisoflimitedvaluetoresellersdealinginsmallerquantitiesMustusemechanicalorautomateddevicetomove Figure5-19:ABatteryPoweredLiftTruckUsedforStockPicking UnitLoadsinMaterialsHandlingAnintermodalcontainerholdstheunitloadInterchangeableamongrail,truck,andwatercarriersAircarriersusuallyuseirregularshapedcontainersmadetofitfuselage Figure5-21:VariousTypesofIntermodalSurfaceContainers UnitLoadsinMaterialsHandlingEquipmentloadingLoad-planningBracingInflatabledunnagebagsLoadissubjectedtofiveforcesVibrationCentrifugalRetardationRollPitch Figure5-25:TheBuilding-BlocksConceptofPackaging:ASummary MaterialsHandlingMaterialshandlingreferstohowthematerialsorproductsarehandledphysicallyHowtheproductsarehandleddependsonwhethertheyarepackagedorinbulkHandlingmaychangethecharacteristicsoftheproduct MaterialsHandlingPrinciplesOrientationRequirementsIntegratedsystemStandardizationJust-in-timeUnitloadMinimumtravelSpaceutilizationErgonomicsEnergyEcologyMechanization MaterialsHandlingPrinciplesAutomationFlexibilitySimplificationGravitySafetyComputerizationSystemsflowLayoutCostMaintenanceObsolescenceTeamsolution MaterialsHandlingintheSupplyChainProductscanmovethroughouttheentiresupplychainBarcodes,two-dimensioncodes,radio-frequencycodessystemsfacilitateintegrationthroughoutthesupplychain CHAPTER6Transportation LearningObjectivesTorelatethemodeoftransporttotheuser’sshippingvolumeTounderstandtheuseofroutingguidesTorealizetheroleoffreightforwardersandotherintermediariesTounderstandthedifferencebetweenLTLandTLmotorcarriers LearningObjectivesToappreciatetheuseofterminalsastransferpointsforbulkmaterialsToappreciatetrade-offswhenusingvehicleswithself-loading/unloadingequipmentTolearnaboutprojectcargoTolearnthebasicsoffreightratedetermination TheDomesticTransportationSystemKeyTermsBrokerBulkcargoConsigneeFreightclassificationKeyTermsFreightforwarderIntermodaltransportationLTLNodes TheDomesticTransportationSystemKeyTermsParcelsParcelcarriersPrivatetransportationProjectcargoKeyTermsRoutingguidesShippers’cooperativesTerminalTL(truckload)rateTon-mile TheDomesticTransportationSystemTransportationisthemovementofgoodsandpeoplebetweentwopointsNodesLinksAir,water,motorcarriage,rail,pipelineIntermodaltransportationRoutingguides Figure6-1:SwitchingMilkCansfromaFarmer’sBuggytoaTruckonaRuralRoadinNorthCarolina,1929 TheDomesticTransportationSystemSupplychainsuccessrequirestransportationTransportationcostsareaffectedbynodelocationInventoryrequirementsareinfluencedbymodePackagingrequirementsaredictatedbymodeMaterialshandlingequipmentanddesignofthedocksaredictatedbymodeMaximumconsolidationofloadsachievedwithorder-managementtechnologyreducescostsCustomerservicegoalsinfluencecarrierchoice Small-VolumeShippersParcelsarepackagesweighingupto150poundsParcelcarriersarefirmsthatspecializeinsmallpackages(≤150pounds)UPSFedExOthercarriersincludeUSPSPassengercarriers—airandbus LTLShippersLess-than-truckload(LTL)150to10,000poundsToobigtobehandledmanually,toosmalltofillatruckLTLtruckscarryshipmentsfrommanyshippersMostlargefirmsareLTLcarriersYellowFreightRoadwayExpressABFFreightSystem LTLShippersLess-than-truckload(LTL)(continued)ProcessLocalpick-upOriginterminalusedtoloadaboardlinehaulLinehaultoterminalneardestinationDestinationlocaldeliveryonsmallertrucksConsigneereceives LTLShippersAirCargoCanbegivendirectlytoairlineCanbegiventofreightforwarderMostcarriedonpassengerairlinesTypesofproductsHighinvaluePerishableRequireurgentdeliveryShippedinaircontainersmadetofitfuselage LTLShippersFreightforwardersbuyspaceatTL(truckload)rateandsellatsomewhatlessthanLTLratepick-upanddeliver;motorcarriersorrailroadsdoline-haulfunctionastransportationdepartmentsofsmallfirmsmayspecializeinspecificcargoes LTLShippersAirforwardersConsolidateshipmentsTendertoairlinesincontainersreadyforloadingForwardersprovideretailingfunctionAirlineprovideswholesalingfunctionShipper’scooperativesSimilartoairandfreightforwardersbutarenot-for-profitorganizationsMembership(shippers)receivesanymoniesearnedinexcessofcosts LTLShippers3PLsMayhaveequipment—trucks,trailers,terminalsMaydealininformationonlyMayoperateInternet-basedauctionsBrokersAfacilitatorwhobringstogetherabuyerandsellerMayconsolidateLTLshipmentsandthengivetotruckers,forwarders,orshippers’associations TruckloadandCarloadShippersShipmentsof20,000to30,000poundsFillonetruckCostlessperpoundthanLTLshipmentsTheshipperloadsandconsigneeunloadsthetrailerLoadgoesfromshippertoconsigneewithoutpassingthroughaterminalPaperwork,billing,andcontrolcostsarethesame TruckloadandCarloadShippersRateperhaulmaybenegotiableLargestTLcompaniesSchneiderNationalVanCarriersJ.B.HuntTransportManyfirmsaresmaller,withoutnationalpresenceSmallerfirmsmaybeowner-operators TruckloadandCarloadShippersPrivatetransportationiswhentheshipperprovidesandoperatesitsownequipmentDedicatedequipmentiscarrier-ownedbutassignedtoservespecificcustomersforindefiniteperiodsShippersandconsigneesusingrailroadserviceneedsidingsontheirproperty LargeBulkShippersBulkcargoTravelsinlooseratherthaninpackagedformHandledbypumps,scoops,conveyorbelts,ortheforceofgravityHasvarioushandlingcharacteristicsMovesbyTruckloadRailroadWatercarrierPipeline LargeBulkShippersBulkcargo(continued)DryBulk-HandlingSystemsCoalcarunloadingfacilityTaconiteloadingfacilityGrainelevatorVehicleandVesselEquipmentChoice Figure6-2:Cross-SectionofaCoalCar-DumpingBuildinginSt.Louis,Missouri Figure6-4:ExportGrainElevatoratthePortofSeattle UniqueCargoProjectcargoisaone-timeuniquemovementofsubstantialvolumeExamplesincludeoilrefineries,wood-pulpprocessingplantOversizedmovesHazardousmaterials ComparisonofModesCostsperton-mileSpeedOn-timedelivery TransportationRegulationandDeregulationExceptionstoeconomicderegulationRailservicetocaptiveshippersHouseholdgoodsmoversManypetroleumpipelinesManynaturalgaspipelinesSomeinlandwaterwaytrafficSomewatertransportbetweenmainlandU.S.andHawaii,PuertoRico,andAlaska TransportationRegulationandDeregulationOthertypesofregulationVehicleoperationsVehicledimensionsSafetyofoperatorsSafetyofgeneralpublic TransportationRatesRatestructuredealswiththreefactorsRelationshipsbetweendifferentproductsRelationshipsbetweenshipmentsofdifferentweightsRelationshipsbetweendifferentdistancesThreefactorsaredefinednumericallyandthentiedtoarateofcentsperhundredweight(cwt) TransportationRatesNegotiatedbetweencarrierandshipperQuotedaspercentagediscountsfrompublishedratesFourfactorsdeterminefreightclassificationDensityStowabilityEaseordifficultyofhandlingLiabilitytodamageandtheft TransportationRatesTofindLTLratesusuallyneed:OriginanddestinationzipcodesWeightofshipmentClassificationofshipmentSupplementalservicesneededDiscountawardedtoshipperbycarrierRatesmaybeoncarrierWebsites Figure6-7:PagefromNationalMotorFreightClassification CHAPTER7TransportationManagement LearningObjectivesToexaminethebackgroundofthetransportationmanagementfunctionTodiscussthefunctionsoftransportationmanagementToidentifytherolenegotiationsplayinthetransportationmanagementfunction LearningObjectivesToexaminethenewoptionsavailableforprivatecarriageTounderstandthepurposeoffreightconsolidation IndustrialTransportationManagementKeyTermsBillofladingDemurrageanddetentionDiversionExpeditingKeyTermsHazardousmaterialLossanddamagePrivatetransportation IndustrialTransportationManagementKeyTermsRateandservicenegotiationsRatedeterminationReconsignmentReparationsKeyTermsShipmentconsolidationTracingTransitprivileges RateDeterminationandNegotiationActivitiesRateDeterminationFreightClassificationRateandServiceNegotiationsRateRegulatoryBodies RateDeterminationOftenlocatedoncarrierWebsitesInformationneededforratedeterminationmayinclude:OriginanddestinationbycityorzipcodeWhethercarrierwillload/unloadDimensions(cube)ofloadNumberofunitsWeightNationalMotorFreightClassificationnumberDescriptionofmaterialtobemoved Figure7-1:PagefromaCatalogbyAWDirectShowingShippingCharges Figure7-2:PagefromaPortofHoustonTariffShowingSomeLoading,Unloading,andWharfageCharges FreightClassificationFreightclassificationvaluesrelatetohandlingcharacteristicsoffreightMayapplytoNationalMotorFreightClassificationCommitteeforchangeinclassificationGoodsinforeigntradelistcommoditiesbyharmonizednumberofHarmonizedTariffScheduleoftheUnitedStates(TSUSA) Figure7-3:MotorCarrierClassificationDocketProposalforChangingtheClassificationofSparkPlugs RateandServiceNegotiationsBothratesandservicelevelsmaybenegotiatedLong-termrelationshipsareencouragedNegotiationsaresubjecttoantitrustlaws RateRegulatoryBodiesU.S.DepartmentofCommerceForeignTradeZoneBoardDepartmentofTransportationcommitteesHouseofRepresentativessubcommittees PrivateTransportationPrivatetransportationisusedwhenfirmsownandoperatetheirowntrucks,railcars,barges,ships,and/orairplanesWal-MarthaslargestprivatetruckfleetinU.S.7,767tractorsand26,117trailersPrivatetruckingprovidesImprovedlevelofcustomerserviceAdvertisingonthetrucksMaybelessexpensive DocumentationBillofladingStraightbillofladingOrderbillofladingLong-formbillofladingPreprintedshort-formbillofladingFreightbill Figure7-6:ALong-FormBillofLading Figure7-7:APreprintedShort-FormBillofLading FreightPaymentandAuditServicesFreightbillsmustbepaidwithinaspecificnumberofdaysPaymentservicesareusedTodetectduplicatebillingsToensurethatproperratewascharged RoutingShippershavetherighttoselectthecarriersalongtheroutetoshipmentdestinationMoreoftenneedtobespecifiedforhazmatGenerallyarecomputergeneratedAlternativeroutesandcarriersarealsoimportant DiversionandReconsignmentDiversionoccurswhentheshippernotifiesthecarrier,priortoarrival,ofachangeindestinationReconsignmentoccurswhentheshippernotifiesthecarrier,afterarrival,ofachangeindestination TracingandExpeditingTracingistheattempttolocatelostorlateshipmentsDonebycomputeratnocostExpeditingisrapidlymovingashipmentthroughacarrier’ssystem.Bothofthesearelesslikelytobeusedtodaysinceshipmentscanbepinpointedenrouteandcarriersprovidebetteron-timeperformance LossandDamageShippersandcarrierstrytoresolvefirstWhatisthefullactualloss?ConcealedlossordamageWhotakespossessionofdamagedgoodsafterclaimsettled?Ifunresolved,movestocourtsystem TransitPrivilegesTransitprivilegesallowcargotobestoppedenroutebetweenoriginanddestinationtobeunloaded,stored,orprocessedandthenreloadedfordeliverytooriginaldestinationOftenusedinhouseholdgoodsmovingandstorageindustry ReparationsReparationsarepaymentsmadetoashipperbyacarrierthathaschargedillegallyhighratesinthepastAlsocollectedwhencarriersdonotliveuptotermsofcontractswithshippers DemurrageandDetentionDemurrageisapenaltypaymentmadetotherailroadforkeepingarailcarbeyondthetimewhenitshouldbereleasedbacktorailroadDetentionisthewordusedinthetruckingindustryCarriersdonotwantequipmentusedastemporarywarehousebyshipperorconsignee TransportationofHazardousMaterialsHazardousmaterialisasubstanceormaterialinaquantityandformwhichmayposeanunreasonablerisktohealthandsafetyorpropertywhentransportedincommerceMustbemovedsafelyLabeledwithplacardMusthave24-hourhotlineusedineventofspills Figure7-12:SpecializedContainerwithSumptoCaptureHazardousWasteLeaksfromBarrels ConsolidatingSmallShipmentsShipments>150and<500poundsTogetalowerrate,shipmentconsolidationmayoccur:aggregatingcustomerordersacrosstimeorplaceorboth Figure7-13:TheTransportationManagerConsolidatesShipmentsWheneverHeorSheCan CHAPTER8DistributionCenter,Warehouse,andPlantLocation LearningObjectivesToexaminethescreeningorfocusingconceptofplant/warehouselocationTodescribethemajorfactorsthatinfluencelocationdecisionsToexplainthegeneralprocessofdeterminingtheoptimumnumberoffacilities LearningObjectivesToexplainsystemstodeterminethelocationthatminimizestransportationcostsToexamineasite’sspecializedlocationcharacteristicsTolearnaboutfreetradezones DistributionCenter,Warehouse,andPlantLocationKeyTermsCenter-of-gravityapproachEmpowermentzoneFacilitylocationFacilityrelocationKeyTermsFreetradezoneGridsystemMaquiladorasNationalcompetitivestrategy DistributionCenter,Warehouse,andPlantLocationKeyTermsPurematerialsRight-to-worklawsSweatshopsKeyTermsTax-freebondsWeight-gainingproductsWeight-losingproducts FacilityLocationAccommodatesthemovementofinventoriestocustomersNearmarketsResourceavailabilityLaboravailabilityTransportationsystem Figure8-1:AdvertisementShowingaSite’sLocationasanAdvantageinReachingBritishandContinentalEuropeanMarkets DeterminingtheNumberofFacilitiesFacilitiesaregenerallyaddedwhenservicelevelsbecomeunacceptableSoftwarepackagesexisttohelpindeterminingthenumberandlocationoffacilitiesKeyissue—timeittakestogetfromfacilitytomajorityoftheU.S.(ortarget)populationMovingfrom2to5facilitiessaves½dayleadtimeMovingfrom5to10facilitiessaves¼dayleadtime GeneralFactorsInfluencingFacilityLocationNaturalResourcesPurematerialsWeight-losingproductsWeight-gainingproductsPopulationCharacteristics—MarketforGoodsPopulationCharacteristics—LaborMaquiladorasSweatshopsRight-to-worklaws GeneralFactorsInfluencingFacilityLocationTaxesandSubsidiesTax-freebondsEmpowermentzonesNationalcompetitivestrategyTransportationConsiderationsCustomerConsiderationsTradePatterns Figure8-4:TruckDistancesfromOklahoma GeneralFactorsInfluencingFacilityLocationQualityofLifeConsiderationsLocatinginOtherCountriesSpecializedLocationCharacteristicsFreetradezone FindingtheLowest-CostLocationGridsystemsCenter-of-gravityapproach Figure8-6:Center-of-GravityLocationforaWarehouseServingFiveRetailStores Table8-1:WeightedCenter-of-GravityExampleStoreNorthlocationEastlocationMo.volume(tons)NorthxvolumeEastxvolume1313(3x3)=9(1x3)=32335(3x5)=15(3x5)=153244(2x4)=8(4x4)=164122(1x2)=2(2x2)=45366(3x6)=18(6x6)=36Total205274Weightedaverage2.63.7 OtherFacilityIssuesLocatinginsideanotherfirm’sexistingchannelsFacilityrelocationFacilityclosing CHAPTER9InventoryManagement LearningObjectivesTodeterminethecostsofholdinginventoryToidentifythecostsassociatedwithastockoutTounderstandtheEOQconcept LearningObjectivesTodifferentiatethevariousinventoryflowpatternsToappreciatetheroleofscannersininventorycontrol InventoryManagementKeyTermsABCanalysisEconomicorderquantity(EOQ)FixedorderintervalsystemFixedorderquantitysystemKeyTermsHandlingcostsInsurancecostsInventorycarrying(holding)costsInventoryshrinkage InventoryManagementKeyTermsMarginalanalysisObsolescenceOpportunitycostReorderpoint(ROP)SafetystocksKeyTermsStockoutsStoragecostsTaxesVendor-managedinventory(VMI) InventoryManagementInventoriesarestocksofgoodsandmaterialsthataremaintainedtosatisfynormaldemandpatternsInventorymanagementDecisionsdriveotherlogisticsactivitiesDifferentfunctionalareashavedifferentinventoryobjectivesInventorycostsareimportanttoconsiderInventoryturnover InventoryManagementInventorymanagement(continued)InventorycostsareimportanttoconsiderInventoryturnover:costofgoodssolddividedbyaverageinventoryatcostcostofgoodssold=inventoryturnoveraverageinventory$200,000=inventoryissold4timesperyear$50,000Comparewithcompetitorsorbenchmarkedcompanies InventoryManagementLowinventoryturnover=highinventorycarryingcosts,little(orno)stockoutcostsHighinventoryturnover=lowinventorycarryingcosts,highstockoutcostsManagingthetradeoffisimportanttomaintainservicelevels InventoryClassificationsPsychicstock(stimulatesdemand)CycleorbasestockSafetyorbufferstockPipelineorin-transitstockSpeculativestock Inventory-RelatedCostsInventorycarrying(holding)costsObsolescenceInventoryshrinkageStoragecostsHandlingcostsInsurancecostsTaxesInterestchargesOpportunitycostStockouts Table9-1:DeterminationoftheAverageCostofaStockoutAlternativeLossProbabilityAverageCost1.Brand-loyalcustomer$00.00.10$00.002.Switchesandcomesback$37.00.65$24.053.Lostcustomer$1,200.25300.00Averagecostofastockout1.00$324.05Thesearehypotheticalfiguresforillustration. Inventory-RelatedCostsTrade-offsexistbetweencarryingandstockoutcostsMarginalanalysis Table9-2:DeterminationofSafetyStockLevelNumberofUnitsofSafetyStockTotalValueofSafetyStock($480perUnit)25%AnnualCarryingCostCarryingCostofIncrementalSafetyStockNumberofAdditionalOrdersFilledAdditionalStockoutCostsAvoided10$4,800$1,200$1,20020$6,481.00209,6002,4001,200165,184.803014,4003,6001,200123,888.604019,2004,8001,20082,592.405024,0006,0001,20061,944.306028,8007,2001,20041,296.207033,6008,4001,2003972.15 WhentoOrderFixedorderquantitysystemFixedorderintervalsystemReorderpoint(ROP)ROP=DDxRCundercertaintyROP=(DDxRC)+SSunderuncertaintyWhereDD=dailydemandRC=lengthofreplenishmentcycleSS=safetystock HowMuchtoReorderEconomicorderquantity(EOQ)indollarsEOQ=√2AB/CWhereEOQ=themosteconomicordersize,indollarsA=annualusage,indollarsB=administrativecostsperorderofplacingtheorderC=carryingcostsoftheinventory(%) HowMuchtoReorderEconomicorderquantity(EOQ)inunitsEOQ=√2DB/ICWhereEOQ=themosteconomicordersize,inunitsA=annualdemand,inunitsB=administrativecostsperorderofplacingtheorderC=carryingcostsoftheinventory(%)I=dollarvalueoftheinventory,perunit Figure9-2:DeterminingEOQbyUseofaGraph Table9-3:EOQCostCalculationsNumberofordersperyearOrdersize($)Orderingcost($)Carryingcost($)Totalcost(sumoforderingandcarryingcost)($)11,000251001252500505010033337533108425010025125520012520145 Figure9-3:InventoryFlowDiagram InventoryFlowsSafetystockcanpreventagainsttwoproblemareasIncreasedrateofdemandLonger-than-normalreplenishmentWhenfixedorderquantitysystemlikeEOQisused,timebetweenordersmayvaryWhenreorderpointisreached,fixedorderquantityisordered ContemporaryApproachestoManagingInventoryABCAnalysisJust-inTime(JIT)ApproachVendor-ManagedInventory(VMI)InventoryTracking InventoryManagement:SpecialConcernsDefiningstock-keepingunits(SKUs)DeadinventoryDealsSubstituteitemsComplementaryitemsInformalarrangementsoutsidethedistributionchannelRepair/replacementpartsReverselogistics CHAPTER10WarehousingManagement LearningObjectivesTounderstandtheroleofwarehousesanddistributioncentersinalogisticssystemToidentifythevarioustypesandfunctionsofwarehousesTodistinguishthevariousalternativesavailableinwarehousedesign LearningObjectivesToexaminethedifferenttypesofhandlingequipmentavailableToanalyzetheissueofemployeesafetyinwarehousing WarehousingManagementKeyTermsBondedstorageContractwarehousingCross-dockingDistributioncentersDunnageKeyTermsFieldwarehousingOccupationalSafetyandHealthAdministration(OSHA) WarehousingManagementKeyTermsPaperlesswarehousingPrivatewarehousingPublicwarehousingKeyTermsRegroupingfunctionThroughputWarehousing WarehousingManagementWarehousingemphasizesstorageofproductsDistributioncentersemphasizerapidmovementofproductsthroughthefacilityThroughputistheamountofproductenteringandleavingafacilityinagiventimeperiodRegroupingfunctionAccumulating(increasingquantity)Allocating(reducingquantity)Assorting(buildingupavarietyofproducts)Sorting(separatingproductsintogradesandqualities) Figure10-1:AddingaWarehousingFacility:Shorter-HaulTransportation PublicWarehousingPublicwarehousesservealllegitimateusersBondedstoragewarehousesFieldwarehousingLaborpracticesOccupationalSafetyandHealthAdministration(OSHA) PrivateWarehousingPrivatewarehousingisownedoroccupiedonalong-termleaseOfferscontroltoownerAssumesbothsufficientdemandvolumeandstabilitysothatwarehouseremainsfullHighfixedcosts ContractWarehousingContractwarehousing(3PLwarehousing)isalong-termarrangementprovidinguniquewarehousingservicestooneclientBothvendorandclientsharetherisksassociatedwiththewarehousingLesscostlythanprivatewarehousingandmorecostlythanpublicwarehousing DesignConsiderationsinWarehousingGeneralconsiderationsQuantityandcharacterofgoodsmustbeknown—productprofilingKnowthepurposetobeservedStorageDistributionCross-docking Figure10-5:IdealFacilityforPureSupplierConsolidation(FullPalletMovement) WarehousingTrade-offsFixedversusvariableslotlocationsformerchandiseBuildout(horizontal)versusbuildup(vertical)Order-pickingversusstock-replenishingfunctionsTwo-dockversussingle-docklayout WarehousingTrade-offsLabor-intensiveversusmechanizationversusautomationSpacedevotedtoaislesversusspacedevotedtostoragePicker-to-partversuspart-to-pickersystems WarehousingTrade-offsPaperlesswarehousingversustraditionalpaper-orientedwarehousingoperationsVirtualwarehouseversusrealwarehouseOtherspaceneedsRetailstorerooms WarehousingOperationsStorageandhandlingequipmentWarehousemanagementsystemsEmployeesafetyOSHAoverseesProperhandlingofwastematerialsDunnageProperhandlingofbreakage WarehousingOperationsWarehousingsecuritySanitationissuesStockcontrols CHAPTER11Procurement LearningObjectivesTounderstandtherelationshipbetweensupplymanagementandlogisticsTounderstandstepsinselectingasupplier LearningObjectivesTorecognizethepotentialofe-procurementTolearnaboutqualityprograms SupplyManagementKeyTermsE-procurementGlobalsourcingImportquotasKeyTermsISO9000MakeorbuyProcurementcard SupplyManagementKeyTermsPurchaseorderPurchasingethicsRequestforProposal(RFP)KeyTermsRequestforQuotation(RFQ)SixSigmaSupplierdevelopment SupplyManagementSupplymanagementis“theidentification,acquisition,access,positioning,andmanagementofresourcestheorganizationneedsorpotentiallyneedsintheattainmentofitsstrategicobjectives.”InstituteofSupplyManagementSimilarinmeaningtoprocurement,purchasing PurchaseforUseinManufactureMakeorbuyAvailabilityoftrainedlaborPhysicalcapacityPurchaseordersareacommitmenttobuyIndicatequantitiesandqualitiesdesiredIndicatedatesbywhichthematerialsmustbedelivered Figure11-1:UseofBarCodesThroughoutaManufacturingProcess Figure11-2:FlowofInformation,Products,Cash,Orders,etc.,withinaManufacturingFirm PurchaseforUseinManufacturingMRPSystemsmanageproductioninventoryJust-in-Time(JIT)andKanbanwereinitiallydevelopedtoimprovequalityJITIItiestogetherinformationsystemsandemployeesofsuppliersandfirmsSupplierProductIntegrationreferstotheacquisitionofcomponents,ratherthanindividualparts PurchasingforResaleObjectiveistobuymerchandisethatcanbemarkedupandresoldtoothersataprofitQualityofproductandtimingofarrivalareimportant ProcuringServicesRequestforProposal(RFP)RequestforQuotation(RFQ)ExamplesofprocuredservicesLegal,accounting,computerandsoftwareconsultantsBuildingmaintenancePrintingLandscapeworkJanitorialservices GlobalSourcingGlobalsourcingappliestobuyingcomponentsandinputsanywhereintheworldImportquotasareabsolutenumericlimitsontheitemsimportedfromspecificcountrieswithinaspecifictimeframe E-ProcurementE-procurementisthebusiness-to-businesspurchaseofsuppliesandservicesviatheInternetProcurementcards Figure11-3:AConfigurationofInternetMessagingtoProvideforSecureTransmission QualityProgramsImportanttomatchqualitylevelsofallbuyersandsellersinthesupplychainISO9000ISO14000SixSigma SupplierSelectionandManagementSuppliermanagementischargedwithkeepingexistingsuppliershappySelectingvendorsdependson:DeliveryFacilitiesandcapacity,geographiclocationPerformancehistoryPriceandqualityTechnicalcapabilityWarrantiesandclaimpolicies SupplierDevelopmentSupplierdevelopmentisanyeffortofabuyingfirmtoincreaseperformanceofthesupplierStrategicgoalstodevelopsuppliersIncreasesupplierfinancialstrengthImprovemanagementandtechnicalcapabilitiesImproveabilitytodevelopnewproducts SupplierDevelopmentPerformancegoalsforsuppliersinclude:BetterqualityproductsLowerpricesImproveddeliveryperformanceIncreasedoverallresponsivenessMaintenanceofqualitycontrolsinthesupplierorganization PurchasingEthicsBreachesofpurchasingethicsinclude:AcceptinglavishgiftsBribesKickbacksAreasofethicalconcern:HandlingconfidentialinformationPurchasingforone’sprivateuseInterferingwithalegitimatebiddingprocessConflictsofinterest CHAPTER12InternationalLogistics LearningObjectivesToidentifythereasonsforgovernmentalinterventionintheareaofinternationaltradeTodistinguishamongtheuniqueactivitiesofinternationaltradespecialists LearningObjectivesToexamineissuesinvolvedininternationalairtransportationTorelateactivitiesinvolvedininternationaloceantransportation InternationalLogisticsKeyTermsCustomshousebrokersExportmanagementcompanyExportpackersKeyTermsExporttradingcompanyImportquotasIncoterms2000 InternationalLogisticsKeyTermsInternationalAirTransportAssociation(IATA)InternationalfreightforwardersIrrevocableletterofcreditLandbridgeKeyTermsNontariffbarrierNonvessel-operatingcommoncarrier(NVOCC)ShippersassociationsShippingconferences InternationalLogisticsChangestopoliticallandscapeaffectlogisticsTheendofSovietruleinEasternEuropeEUeconomicintegrationNontariffbarriers-arulethathastheeffectofreducingimportsRestrictionsontrucktraffic,forcingfreightontorailandwaterNAFTAMultinationalfirms InternationalMarketingSizeorscaleoffirmsmaybedifferentFirmssellingproductsundertheirownbrandareconcernedaboutqualitymaintenanceConsumerpreferencesdifferInternationalcreditsystemisnotwelldevelopedIrrevocableletterofcredit Figure12-2:IrrevocableLetterofCredit InternationalMarketingChannelsDomestic(U.S.)channelsOwnershipNegotiationsFinancingPromotionsLogisticsInternationalchanneladditionsDocumentation TermsofSale—Incoterms2000EX-Works(EXW)FCA(FreeCarrier)FAS(FreeAlongsideShip)FOB(FreeonBoard)CFR(CostandFreight)CPT(CarriagePaidTo)CIF(Cost,Insurance,andFreight)CIP(CarriageandInsurancePaidTo)DES(DeliveredExShip)DEQ(DeliveredExQuay)DAF(DeliveredatFrontier)DDP(DeliveredDutyPaid)DDU(DeliveredDutyUnpaid) GovernmentInfluencesonForeignTradeGovernmentcontrolsontheflowofinternationaltradeCustomsordutiesImportquotasHealthinspectionsSafetystandardsCurrencyoutflowPoliticalormilitaryreasonsPortchoiceNon-tradereasons Government’sRoleinInternationalTransportInternationalcarriageisanexporttothenationoperatingthecarrier-affectsbalanceofpaymentsInternationalfleetsandairlinesmaybesubsidizedLargenationsmustprotecttheirflagcarriers’interests InternationalTradeandSupplyChainSpecialistsInternationalFreightForwardersAdvisingonacceptanceoflettersofcreditBookingspaceoncarriersPreparinganexportdeclarationPreparinganairwaybillorbillofladingObtainingconsulardocumentsArrangingforInsurancePreparingandsendingshippingnoticesanddocumentsServingasgeneralconsultantonexportmatters InternationalTradeandSupplyChainSpecialistsNonvessel-operatingcommoncarrier(NVOCC)CustomshousebrokersExportmanagementcompanyExporttradingcompanyShippersassociationsShippingconferencesExportpackers Figure12-4:AForwarder’sExportQuotationSheetShowingFactorstoIncludeWhenDeterminingaPriceQuote Figure12-9:APackageMarkedforExport LogisticsChannelsinInternationalDistributionLandwardmovetotheportorairportinexportingcountryInternationalairInternationaloceanshippingLandwardleginimportingcountry MovementtoPortorAirportToadjacentcountries,moveissimilartodomestic,withmorepaperworkToportsUsecontainerizationLandbridgeoperationsToairportsCharteredaircraftScheduledaircarriersIntegratedaircarriersInternationalAirTransportAssociation(IATA) Figure12-12:LargeContainersUsedbyInternationalAirlines OceanShippingTypesofOceanCargoPetroleumDry-bulkcargoes-grain,ores,sulfur,sugar,scrapiron,coal,lumber,logsinvesselloadsContainersShippingconferencesandalliancespoolresourcesandextendmarketcoverage OceanShippingTypesofVesselsContainershipsLighteraboardship(LASH)vesselsRollOn-RollOff(RO-RO)vesselsTankersParcelTankersTrampsSpecializedvessels Figure12-17:ARO-ROVesselinJacksonville,Florida SurfaceTransportinImportingCountriesFewforeignnationshaveaswidearangeofmodesasintheUnitedStatesTransportationnationalizationishigherinmostcountriesotherthantheUnitedStatesShipownersarebecominginvolvedinlandtransportShortseashippingalongcoastsRailgaugesvaryaroundtheworld InternationalTradeInventoriesMayvaryinsmallwaysfromcountrytocountry—productsmaybetailoredtofitLessisneeded(thaninU.S.)toserveanyonecountryReturnitemsareimpossibletoaccommodateImportandexportquotasaffectvalueofinventoriesCurrencyandlanguagedifferences CHAPTER13LogisticsSystemsControls SystemsControls LearningObjectivesTounderstandtheuseofaccountingtechniquesforlogisticssystemcontrolToexaminetheworkerproductivityissue LearningObjectivesTodiscussproblemsandsolutionsinvolvedinaproductrecallTolearnhowtoreducepilferage,organizedtheft,andvulnerabilitytoterroristactivity LogisticsSystemsControlsKeyTermsBatchnumberBuildingsecurityComputersecurityDocumentsecurityKeyTermsPilferageProductrecallShort-intervalscheduling LogisticsSystemsControlsKeyTermsSystemsecurityVehiclesecurityKeyTermsWarehouseworkrulesWorkerproductivity Figure13-1:DeviceinaKenworthTruckforReadingandMatchingFingerprints FinancialandAccountingControlsAccountantswouldliketoreduceinventoryfloatAccurateinventoryrecordsareessentialLogisticscostsshouldbeaccuratelyrecordedandusedasmeasuresofcontrol Figure13-2:AnIntegratedFinancialAccountingSystem WorkerProductivityWarehousinglaborGoaltoachievelowestcostpervolumeofoutputScheduleworkinadvanceWorkersshouldworktoagoalforthedayShort-intervalschedulingWorkerproductivityWarehouseworkrules Figure13-5a:SampleWarehouseWorkRules Figure13-5b:SampleWarehouseWorkRules(continued) WorkerProductivityTransportationlaborTruckdriversdon’thaveimmediatesupervisionTheyareincontactwithcustomersTheirtruckscanbeseenbythousandsofmotoristsMayfallbehindscheduleduetoexternalfactorsMayuseatachographtorecordtruckdrivers’drivingperformanceMayuseglobalpositioning,photos,orvideos Figure13-4:EmployeesHaveVaryingDegreesofSkills ProductRecallsProductrecalloccurswhenahazardordefectisdiscoveredinanitemthatisalreadyindistributionReversalintheoutwardflowofgoodsisneededOncerecallisinprocess,newgoodsmustbeshippedtotaketheplaceofdefectiveonesRecallchannelsmaybedifferentthandistributionchannels FederalAgenciesInvolvedwithRecallsFoodandDrugAdministrationConsumerProductSafetyCommissionNationalHighwayTrafficSafetyAdministrationTheFoodSafetyandInspectionServiceoftheU.S.DepartmentofAgriculture ProductRecallsPublicity,Liability,andFireDrillsBatchnumbers ControllingReturnedandSalvagedGoodsPilferageandTheftBuildingsecurityVehiclesecurityComputersecurityDocumentsecurityProductidentificationnumbersecuritySystemsecurity Figure13-9:HowtoPlanaThief-ResistantWarehouse Figure13-11:ScreenInsidetheCabAllowsDrivertoSeeAroundTruck AdditionalControlsEnergy-savingcontrolsHazardousmaterialshandlingMaintainingchannelandsupplychainintegrityProtectionagainstterrorism CHAPTER14OrganizingandAnalyzingLogisticsSystems LearningObjectivesToexaminetheproblemsandopportunitiesinvolvedinsystemsanalysisTorelatetheimportanceofindustrystandardstosystemsanalysisTodiscussthestepsinvolvedinredesigningalogisticssystemToexamineanumberoforganizationalalternatives LearningObjectivesTodescribeanumberoftechniquesforachievinglogisticscoordinationandintegrationTodistinguishbetweencentralizedanddecentralizedlogisticsorganizationsTodistinguishbetweenlogisticswithinthefirmandoutsourcinglogisticsactivities LogisticsSystems:Analysis,Design,andIntegrationKeyTermsBenchmarkingChannelsauditCompetitionauditCustomerauditdirectproductprofitability(DPP)analysisKeyTermsEnvironmentalsensitivityauditExistingfacilitiesauditIntegratedserviceproviders LogisticsSystems:Analysis,Design,andIntegrationKeyTermsLinking-pinorganizationMatrixmanagementProductauditSimulationSystemconstraintsKeyTermsSystemsanalysisThird-party,orcontract,logisticsUnifieddepartmentorganizationVendoraudit WhatIsSystemsAnalysis?Systemsanalysisreferstotheorderlyandplannedobservationofoneormoresegmentsinthelogisticsnetworkorsupplychaintodeterminehowwelleachsegmentfunctions GeneralQuestionsWhydoweperformeachtask?Whatvalueisaddedbyit?Whyarethetasksperformedintheordertheyare?Canwealterthesequenceoftheprocessingstepstoincreaseefficiency?Whyarethetasksperformedbyaparticulargrouporindividual?Couldothersperformthistask?Isthereabetterwayforthesystemtooperate? ProblemsinSystemsAnalysisMultiplebusinessfunctionsareimpactedTherearetrade-offsamongconflictingobjectivesLogisticssystemimpactsaredifficulttopreciselyevaluateTherearebusinessissuesuniquetoeachlogisticssystemQuantitativeanalysisisessentialforintelligentdecisions Figure14-1:AScoringChecklistUsedtoDetermineLogisticsPlanningorStrategyStudy PartialSystemsAnalysisCustomerprofitabilityanalysisWarehousingproductivityanalysisTransportationcostanalysisConsolidationanalysisDirectproductprofitabilityanalysisBenchmarkingIndustrystandardsanalysis LogisticsSystemDesignEstablishingobjectivesandconstraintsQualityprogramsWorld-classlogisticsprogramsSystemconstraintsOrganizationofthestudyteamDatacollection LogisticsSystemDesign(continued)ProductauditExistingfacilitiesauditVendorauditCustomerauditChannelsauditCompetitionauditEnvironmentalsensitivityaudit Figure14-7:FlexibilityMakesItEasiertoWorkTogether LogisticsSystemDesign(continued)AnalysisofthedataSimulationDesignimplementation Figure14-8:SchematicDrawingofAutomatedSortingSystem SystemsIntegration:LogisticswithintheFirmDispersionoflogisticsactivitiesAchievingcoordinationThestatusquoThelinking-pinconceptLinking-pinorganizationAunifieddepartmentUnifieddepartmentorganizationCentralizedversusdecentralizedMatrixmanagement Figure14-9:BectonDickinson’sWorldwideSources SystemsIntegration:LogisticsActivitiesOutsidetheFirmThird-party,orcontract,logisticsIntegratedserviceprovidersMonitoringthird-partyperformance'