1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 29
Jan 17, 2016
1-1
Logistics ManagementLSM 730
Dr. Khurrum S. Mughal
Lecture 29
11-2CR (2004) Prentice Hall, Inc.
Economics of Storage/Handling Alternatives
Private warehousing,automated handling
Publicwarehousing
Private warehousing,pallet-forklift truckhandling
Leased warehousing
a b c d
Cost
to c
ompa
ny, $
Annual system throughput, cwt.0
a Economical range for public warehousing.b Economical range for leased warehousing, manual handling.c Economical range for private warehousing, pallet-forklift truck handling.d Economical range for private warehousing, automated handling.
CR (2004) Prentice Hall, Inc.
Activity Fragmentation in the Supply Chain (Cont’d)
PresidentPresident
MarketingMarketing FinanceFinance OperationsOperations
•More inventory•Frequent &
short production runs
•Fast order processing
•Fast delivery•Field
warehousing
•Less inventory
•Cheap order processing
•Less warehousing
•Long production runs
•Lowest cost routing•Plant warehousing
Objectives
15-5
The Cold Chain and Logistics:
What does anything else matter if the vaccine isn’t good?
The Cold Chain
Which are most sensitive to heat?
Which do you never want to freeze?
(OPV, Measles, MR, MMR, BCG can be frozen, but not diluents)
Do Not
Freeze
WHO Recommended Storage Conditions for Vaccines
Cold Chain Equipment & Logistics
• Refrigerators/Freezers– Generators/ Voltage Stabilizers
• Cold Boxes• Vaccine Carriers (Foam Pad)• Ice Packs
Check condition every time you visit a facility!
Refrigerators/Freezers
Freezers (-15 to -25 degrees C)– Ice Pack Freezers (24 hours)
• Refrigerators (usually w/freezer)– Electric• Ice Lined Refrigerators
– Kerosene – LP Gas– Solar
Ice Lined Refrigerators (ILRs)
Can maintain temperature for 16 hours without power if operate w/power continuously for at least 8 hours a day!
Refrigerators/FreezersReminders
• At least 10 cm from wall• Off the floor• Kept clean, esp. dust in coils• Out of direct sunlight• Only vaccine to be stored. • Opened minimal times per day• Generator or kerosene = good ventilation• Voltage stabilizers to avoid damage to compressors caused by changes in
electricity.
Storage of Vaccines in Refrigerators
Loading top loading refrigerators
Good or Not Good?
Good or Not Good?
What do you do?
Is it working?
Cold Boxes
•Insulated for short–term use: 2-7 days
•Used in campaigns or when refrigerator out of order
•Consideration for use and storage capacity, outside temperture, available transport
Vaccine Carriers and Ice Packs
Good or Not Good?
Effect of melted ice packs in vaccine carriers on labels
Tools for monitoring temperature
Temperature monitoring chart for facilities
Shake Test (for freeze sensitive vaccines)
Vaccine Vial Monitor (VVM)
VVMs on Vaccines
Cold Chain in Campaign Setting
Cold Chain in Campaign Setting - Polio
• Ice Pack Freezing/Assuring Power Source • Sunlight is harmful for OPV vaccine• Heavy reliance on VVM • Usually use 4 ice packs but in some countries, fewer ice packs OK• Ice is acceptable if no other choice
– Try to protect vials from wet• Can keep vials out of vaccine carrier as needed until VVM turns—
especially when using vaccine carriers for more than 1 day and need to preserve the temperature.
Check VVM each time before putting drops in child’s mouth!
Cold Chain in Campaign Setting - Measles
• Sunlight is harmful for measles containing vaccine• Diluent should be cooled before mixing with vaccine• After reconstitution
– Keep the vial out of the light– Keep the vial as cool as possible without freezing it– Use foam pad to keep open vial whenever available
• Vaccine should not be pre-drawn• Reconstituted vaccine discarded by 6 hours after adding diluent
Agility, A New Logistics Leader
Meeting the Challenges of Global Trade
Efficient Supply Chain Services and Introduction of Agility Logistics
32
Supply Chain Solutions
3333
Introducing Agility
3434
Our name may be new to you, but we have a long history.
3535
The Scale of Our Business
Founded in 1979550+ offices100+ countries$6.2 billion revenue (USD)Over 32,000 employeesTop ten logistics providerPublicly traded6000+ owned vehicles and transport assets10 million square meters of warehousing space800,000 pallet positions
36
•The strategy, processes, people, technologies and resources responsible for ensuring the flow of materials and services necessary to deliver an organization’s value to its end-user customers.
•SCM solution has emerged as a key differentiator for gaining competitive advantage. The on going search for cost control and value creation has impelled organization to turn to SCM to achieve bottom line results.
Supply Chain Management (SCM)
37
Sour
cing
& O
rder
Man
agem
ent
V
endo
r Co-
ordi
natio
n
Pac
kagi
ng
Plan
ning
, Boo
king
& P
re-a
lert
s
Inve
ntor
y
W
MS
D
istr
ibuti
on
Tr
ansp
orta
tion
S
tore
Ope
ratio
ns
Cons
umer
Integrated Information Systems
Efficient Supply Chain enabling to be proactive then reactive through seamless flow of
information in the chain
Visibility
Cons
umer
C
usto
m B
roke
rage
$
38
Non-integrated information sharing
You & your offices
Your suppliers several airlines Handling agents Warehouses
Agility partners
Your customers
?
An everyday situation … “Where is the Shipment/Order?”
39
Integrated Information Sharing
You & your offices
Suppliers
Airlines Handling agents
Agility Warehouses
Agility partners
End customers
EDI
Customer offices
40
Receiving
•Schedule Carrier•Unload Vehicle•Inspect Damages•Compare to ITS
Put-away
•Identify Product•Identify Location•Move Product•Update WMS
Storage
•Equipment – MHE•Stock Location
Order Picking
•SO – Pick List•Proceed to staging area
Shipping
•Schedule Delivery•Load vehicle•Check commodity•WMS Update
41
Warehouse Management System (WMS)
•Why use a dedicated WMS? Reduced investment
Systems support Software development
More detailed inventory visibility Not only is it in the facility, but is it available Improve Customer service
Shorter Cycle Time of Orders Better utilization of resources Increase Productivity
Inventory reduction Lower inventory cost Better utilization of Space
Increases accuracy of Orders