Logistics strategy & planning, Customer Service & Products
Post on 23-Jan-2015
446 Views
Preview:
DESCRIPTION
Transcript
Logistics Strategy & Planning
Why the Increasing Interest? Deregulation Globalization Technological breakthroughs Environmental concerns Performance impact
Logistics Decision AreasTransportation
◦ Modes◦ Formats◦ Pricing
Warehousing◦ Consolidation◦ Cross-Docking and Break-Bulk◦ Hub-and-Spoke◦ Inventory
Major Transportation ModesRoadWaterRailAirPipeline
ConsolidationAir Road Pipeline Rail Water
• Cost components• Fixed infrastructure
and equipment• Labor and fuel• Variable –
passenger/cargo• Key issues• Location/number of
hubs• Fleet assignment• Maintenance
schedules• Crew scheduling• Prices and
availability
• Use of more than one mode of transportation to move a shipment
• Grown considerably with increased use of containers
• May be the only option for global trade
• More convenient for shippers – one entity
• High fixed cost• Primarily for crude
petroleum, refined petroleum products, natural gas
• Best for large and stable flows
• Pricing structure encourages use for predicable component of demand
• Move commodities over large distances
• High fixed costs in equipment and facilities
• Scheduled to maximize utilization
• Transportation time can be long
• Limited to certain geographic areas
• Ocean, inland waterway system, coastal waters
• Very large loads at very low cost
• Slowest• Dominant in global
trade• Containers
Warehousing
Any operation that stores, repackages, stages, sorts, or centralizes goods or materials
Consolidation
Warehouse
Small shipments in ...
Large economical shipments out ...
Logistics Strategy Choices
Pricing Logistics Economic factors
◦Pricing versus distance◦Price exchange rate◦Storability, handling, and liability◦Market factors
Ratings◦Goods classification◦Class index
Customer Service
From a logistics perspective, customer service is the outcome of all logistics activities or supply chain processes.Customer service, when utilized effectively, is a prime variable that can have a significant impact on creating demand and retaining customer loyalty.Order entry and ends with delivery of product to customers.Equipment service maintenance other technical support.The speed and dependability with which items ordered can be made available.
Elements of Customer Service
Dimensions of Customer Service
oTimeoDependabilityoFlexibilityoCommunication
Logistics Products
1.Nature of the logistics product
2.Product characteristics
3.Product packaging
4.Product pricing
5.Incentive pricing arrangement
6.Risk
Nature of logistics Products
oCustomer ProductsoIndustrial ProductsoConvenience ProductsoShopping ProductsoSpecialty Products
Product Life Cycle
Product CharacteristicsoWeight
oVolume
oValue
oPerishability
oFlammability
oSubstitutability
Product PackagingoTo facilitate storage and handling.
oTo promote better utilization of transport equipment.
oTo provide product protection.
oTo promote the sale of the product.
oTo change the product density.
oTo facilitate the use of the product.
oTo provide reuse value for the customer.
Product PricingoGeographical Pricing
oIncentive Pricing
oTax Effects
oProduct Standard
oEconomies of Scale
oDiscounted Pricing
oInternational Level
Risk In ProductsoPerishability (fresh fruits and whole blood)
oFlammability tendency to explore (gas, oil)
oValue, ease be stolen (pens. watches. cigarettes)
oSpecial treatment, whether transportation, storage or packaging, adds to the cost of distribution.
top related