Logistics - Lecture - BUS 370 Logistics Donavon Favre Poole...

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BUS 370: Logistics Donavon Favre Poole College of Management North Carolina State University
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Chapter Objectives Be able to: Describe why logistics is important and discuss the major decision areas that make up logistics. List the strengths and weaknesses of the various modes of transportation and discuss the role of multimodal solutions. Identify the major types of warehousing solutions and their benefits. Calculate transportation costs for various shipment methods. 2
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Logistics Planning, implementing, and controlling the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer’s requirements. 3
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Logistics Business Activities Transportation Warehousing Material handling Packaging Inventory management Logistics information systems 4
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Why the Increasing Interest? Cost and flexibility Delivery performance impact Globalization of markets Technological breakthroughs Environmental concerns – Sustainability (Performing activities in a manner that meet the needs of the present without compromising the ability of future generations to meet their needs.) 5
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Environmental Concerns Even while certain aspects of logistics have been deregulated, other areas are being controlled more stringently Fuel efficiency Pollution Recovery, recycling, and reuse of packaging, containers, and products 6
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Major Transportation Modes Highway (truck) Water Rail Air Pipeline 7
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Modal Shares of U.S. Freight for 2007 (% change, 1997 – 2007) 8
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Highway Mode 9 Dominates the logistics infrastructure due to: Geographic extension of supply chains Greater emphasis on delivery speed and flexibility
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