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Strategic Logistics Management by James Stock & Douglas Lambert, 4th
Edition
Logistics
Process of planning, implementing and control of the efficient
and effective flow and storage of goods and related
information from point or origin to point of use.
Pooling risk
Coordinating functions
Communication
Coordinated decision making
Avoid negative impact of logistics decisions on to other
departments
Integrating the supply chain
Locate the right countries
Develop an effective Export-Import strategy (Borders to cross,
borders to avoid)
Select right warehouse location
Select right transportation modes and carrier
Select the right numbers of partners
Develop state of the art information system
Substituting information for inventory
Use postponement centers
Track inventory precisely
Don’t wait in line with customs
Mix shipment to match customer needs
Reducing supply chain partners to an
effective minimum number
Less Partners, less difficulty
Less inventory
Less cycle time
Less operating cost
Centralize or Decentralize
?
Factor affecting Global Logistics Strategies
Long distances
Rapid product introduction
Competition
Regulations
The longer the supply chain, the more cooperation and
coordination is required between production, marketing,
purchasing and the logistics management group.
Financial aspects of Global Logistics
Working Capital Considerations
◦ International operations require larger amounts of working capital than
domestic operations
Inventories
◦ Higher level of inventory often required to service international market
due to greater variability in transit times, port delays etc
Investment in Facilities and Logistics Networks
◦ When management considers direct investment in facilities and logistics
networks, the capital budgeting aspects of international financials
planning become more important
Global shipments require greater protection
Global shipments require greater protection of the product than
domestic shipment
Greater distances and multiple times handling increase
possibility of damage, delays and pilferage.
In general, amount of loss or damages is higher in international
shipment than domestics
Containers Shipments
Containers Shipments
Container shipping is the main way to transport goods around
the world – it enables global trade.
Everything from door handles, Strawberries, make-up and
computers, have seen the inside of a container. Without
container shipping connecting the world we would not have
the variety of goods we have today!
Container shipping is different from conventional
shipping because it uses ‘containers’ of various sizes
10 foot (3.45 m), 20 foot (6.09 m), 40 foot (12.18 m)
and 60 foot (20.07 m) – to load, transport, and unload
goods.
Picking
Shipping
Location Allocation
Batch Management
Labor Management
WMS Functions
Receiving
◦ Automatically matches and routes PO’s with ASN’s or
traditional receipts
◦ Notifies staff of incoming ASN’s and make updates
Inventory Control
◦ Track inventory levels, lead times, person and place of
movement
Storage location management
◦ Creates and determine location by type, size and velocity
Automated replenishment
◦ Automatically creates a shipment order when an internal or
external partner’s system signal the demand
Shipping
◦ Includes shipping routes, documentation routing and ASN’s
Web-based WMS
Some vendors offer web-based WMS as a subscription service
with less setup time and risk than a traditional application.
Web based EDI is used to receive information such as ASN’s
from vendors
Web based WMS allow better visibility and control because
users can push data or they can pull data by Internet
Transportation Management System
(TMS)
Computerized system to manage the operation of
transportation systems. It include deciding on modes of
transportation, planning imports and exports, planning and
controlling fleet service activities, and load planning and
optimization
TMS Functions
Transportation network design
Shipment planning
Routing
◦ Private fleet management
◦ Carrier selection
Load matching and optimization
Freight rating
Shipment tracking and settlement
Any TMS package must be able to provide the following
Visibility
Centralized control over shipment planning
Integration between transportation planning and order
fulfillment
Execution control
Automation
Automatic Identification and data capture
(AIDC)
RF wireless devices
Terminals
Voice picking
Pick to light
End of
Logistical Drama