7/31/2019 SCLM Logistics_Ch 2
1/34
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
2/34
Supply Chain Logistics Management
Importance of Logistics to Business
Logistics Value Proposition
The Work of Logistics Logistics Operations
Logistics Operating Structures
Supply Chain Logistics Performance
7/31/2019 SCLM Logistics_Ch 2
3/34
Supply Chain Logistics Management
Scope of Logistics
Logistics Operations
7/31/2019 SCLM Logistics_Ch 2
4/34
Supply Chain Logistics Management
Scope of Logistics
Logistics Operations
7/31/2019 SCLM Logistics_Ch 2
5/34
7/31/2019 SCLM Logistics_Ch 2
6/34
Importance of Logistics to Business
Manufacturing Consumers
Logistics Expenditures
Logistics as a Sustainable CompetitiveAdvantage (SCA)
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
7/34
Importance of Logistics to Business
Manufacturing Consumers
Logistics Expenditures
Logistics as a Sustainable CompetitiveAdvantage (SCA)
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
8/34
Importance of Logistics to Business
Manufacturing Consumers
Logistics Expenditures
Logistics as a Sustainable CompetitiveAdvantage (SCA)
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
9/34
Source: Robert V. Delaney, 11th Annual State Of Logistics Report June 5, 2000
1980 GDP $2.88 trillion Logistics Cost $451 billion
15.7% of GDP Trans. Cost $214 billion
47.5 % of Logistics Cost
1999 GDP $9.26 trillion Logistics Cost $921 billion
9.9% of GDP Trans. Cost $554 billion
60.2 % of Logistics CostLogistics Transportation
$
billion
0
100
200
300
400
500
600
700
800
900
1980 1999
100
0
Year
United States Logistics Costs
7/31/2019 SCLM Logistics_Ch 2
10/34
Importance of Logistics to Business
Manufacturing Consumers
Logistics Expenditures
Logistics as a Sustainable CompetitiveAdvantage (SCA)
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
11/34
Logistics Value Proposition
Service
Cost Minimization
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
12/34
Logistics Value Proposition
Service
Cost Minimization
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
13/34
Logistics Value Proposition
Service
Logistics Service Quality Process Dimensions
Logistics Service Quality Outcome Dimensions
Cost Minimization
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
14/34
Logistics Value Proposition
Service
Logistics Service Quality Process Dimensions
Procedures
Contact
Information
Discrepancy
Logistics Service Quality Outcome Dimensions Cost Minimization
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
15/34
Logistics Value Proposition
Service
Logistics Service Quality Process Dimensions
Logistics Service Quality Outcome Dimensions Timeliness
Availability
Condition
Accuracy
Cost Minimization
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
16/34
Logistics Value Proposition
Service Benefits
Cost Minimization
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
17/34
The Work of Logistics
Order Processing
Inventory
Transportation Warehousing, Materials Handling,
Packaging
Facility Network Design
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
18/34
Integrated Logistics
Order
Processing
Inventory
Transportation
FacilityNetwork
Warehousing,Material Handling
7/31/2019 SCLM Logistics_Ch 2
19/34
The Work of Logistics
Order Processing
order receipt, order assembly, order delivery,
invoicing & collection
Inventory
Transportation
Warehousing, Materials Handling Facility Network Design
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
20/34
The Work of Logistics
Order Processing
Inventory
Transportation Warehousing, Materials Handling
Facility Network Design
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
21/34
The Work of Logistics
Order Processing
Inventory
Transportation Warehousing, Materials Handling
Facility Network Design
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
22/34
The Work of Logistics
Order Processing
Inventory
Transportation Warehousing, Materials Handling
sorting, sequencing, product modification &
assembly, and transportation consolidation Facility Network Design
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
23/34
The Work of Logistics
Order Processing
Inventory
Transportation Warehousing, Materials Handling
Facility Network Design
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
24/34
Logistics Operations
Customers
Enterprise
Customer
Service
Manufacturing
Support
Procurement
(Purchasing)Suppliers
Information Flow
Inventory Flow
7/31/2019 SCLM Logistics_Ch 2
25/34
Logistics Operations
Inventory Flow
Customer Service
Manufacturing Support
Purchasing (procurement) Support
Information Flow
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
26/34
Logistics Operations
Inventory Flow
Information Flow
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
27/34
Logistics Operating Structures
Echelon
Direct
Combined
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
28/34
Logistics Operating Structures
Echelon
Direct
Combined
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
29/34
Echeloned Structured Logistics
Supplier
Storage or
Consolidation
WarehouseManufacturer
Wholesalers
Warehouse
or
Distribution
Center
Retailer Customer
7/31/2019 SCLM Logistics_Ch 2
30/34
Logistics Operating Structures
Echelon
Direct
Combined
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
31/34
Logistics Operating Structures
Echelon
Direct
Combined
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
32/34
Combined Echelon and Direct Structured
Logistics
Supplier
Storage or
Consolidation
Warehouse
Manufacturer
Wholesaler
Warehouse
or
Distribution
Center
Retailer Customer
Direct Delivery
7/31/2019 SCLM Logistics_Ch 2
33/34
Supply Chain Logistics Performance
Performance Cycle Structure
Supply Chain Logistics Management
7/31/2019 SCLM Logistics_Ch 2
34/34
Sources of Performance-Cycle Variation
Order
Transmission
Time Range - Days
1/2 31
Customer
Delivery
Time Range - Days
1/2 31
Order
Transportation
Time Range - Days
2 104
Order
Selection
Time Range - Days
1 202
Order
Processing
Time Range - Days
1 42
Total Performance Cycle
Time Range - Days
5 4010