Chapter 3 Role of logistics in supply chain

Chapter 11 Transportation: Managing the flow of suply chain
1. TRANSPORTATION
  1. In few words: is the art of movement of people or goods between original & final destination
  2. Has a major economic impact on the financial performance of business
  3. With efficient , effective transportation can build global supply chains
  4. It must have: availability, capacity & cost that those affect the number, location to supply
  5. Them capabilities must align with the company's goals
  6. Efficiency promotes supply chain competitiveness
  7. It will be affected by governmental like requirements that afeect cost structures &service capabilities
  8. In USA government regulation of transportation has focused on copetition and pricing.
  9. Environmental sustainability is also addressed by government regulations
  10. The approach in customs in the United States is directed to health, safety and terrerismo while in Mexico the customs are concerned about raising money
  11. Mode of transportation
    1. Truck
      1. Rail
        Air
        Pipeline
        Plane
        Railroads
        Most economic structure
        Provide the most economical form of transportation
        Liquids & gases
        Expensive and emergency mode
      2. Economic structure
    2. Water
      1. Is a high variable cost business
        Ocean transportation of goods is not cheaper.
  12. Hire carriers
    1. Truckload (TL)
      1. 15,000 pounds or more
    2. Less than truckload (LTL)
      1. 150 pounds to 15,000 pounds
    3. Small packeging carriers
      1. 150 punds
  13. Intermodal trasportaations
    1. Refers to the use of two or more carriers of different modes
  14. Terms of sales
    1. Clarify the delivery & payment terms agreed upon a seller & a buyer
      1. INCOTERMS
        International transactions
        FOB
        EX WORKS
        FCA
        CIP
        CIF
        DAP
        DAT
        CPT
        DDP
        FAS
  15. Transit time
    1. adventage
      1. Air transportations is very fast
    2. disadventage
      1. Nonetheless water, pipeline and rail are extremely slow
  16. Modal capacities
    1. Must be matched to the total weight and dimensions of shipments
  17. Rate negociation
    1. These negociation focus on developing contracts with carriers for a tailored set a transportations services & rates that fairly compensated the carriers
  18. Shipment preparation
    1. Set in mention by request, replenishment signal or preschedule order.
      1. Maintain a trasportation routing guide
        Are simple 1 or 2 page online documents that plainly state shipment requirements
  19. Freight documentation
    1. Bill of landing
      1. Is the most important transportation document
        It's create by the shipper of the goods to originate the shipment
    2. Freight bill
      1. Carrier's invoice
    3. Claims form
      1. Monetary loss
2. Clames of damage
  1. Natural disaster
  2. Miliraty attack
  3. Act of public authority
  4. Act of the shipper
  5. Inherent act of goods
3. KPI's
  1. Key performance indicators
  2. Are objective measures of carrier of private fleet performance that are linked to supply chain sucess
contemporary supply chain profile
1. Supplier
  1. Manufacture
    1. Wholesaler
      1. retailer
        Customer
The challenge
1. Is to manage the entire logistics system in such a way in order to full meets and exceeds custmer expectations
Good logistics is business power: it means that logistics helps to build costumer loyalty
Logistics management
1. The art and science of management, engineering and technical activities concerned with requirements, desing and suplying and maintaining resources to support activies, plans & operations.
2. Physical distribution
  1. This had a focus on the outbound side of the logistics systems (is like plan to market
3. Business sector
  1. Inbound logistics
    1. materials management to support manufacturing
  2. Outbound logistics
    1. Plan distribution to support marketing
  3. Business logistics
    1. Military logistic
      1. Event logistic
        service logistic
        There are: The aqcquisitions, scheduling & management of facilities.
  4. Value added roles of logistics
    1. 1. Form utility
      1. 2. Place utility
        3. Time utility
        4. Quantity utility
        5. Possesion utility
Logistics activities
1. Transportation
  1. Warehousing & storage
    1. Packing
      1. Inventory control
        Procurement
        customer service
        Facility locations
        Order fulfillment
2. Major cost categories
  1. Warehousing and inventory cost
    1. Transportation cost
    2. Inventory cost is the is the expenses associated with holding goods in storage
3. The largest cost categories
  1. Transportation
    1. Inventory cost
Logistic in the economy
1. If more goods & service are produced, total logistic cost will increase
Interfaces with:
1. Operations
  1. Cost reduction
2. Other areas
  1. Like Finance area & accounting
3. Marketing
  1. 4'P
Order cycle
1. Is the time that elapses from when a customer place an order until the order is received
Dollar value
1. Affects
  1. Warehousing
    1. Inventory
      1. Transportation
Spatial relantioship
1. The location of fixed points of the logistic sistem with respect to demand and suplly points (ass lots of examples on the class)

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Chapter 3 Role of logistics in supply chain

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