LM6- Logistics POST - Learning Module 6 Logistics My...

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Learning Module 6Logistics “My logisticians are a humorless lot … they know if my campaign fails, they are the first ones I will slay.”– Alexander the Great
Chapter ObjectivesBe 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, discuss the role of multimodal solutions, and identify the major types of warehousing solutions and their benefits. Discuss the purpose of a logistics strategy and give examples of how logistics can support the overall business strategy. Use the weighted center of gravity method to identify a potential location for a business. 8-2
IntroductionLogistics management – That part of supply chain management that plans, implements, and controls 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 customers’ requirements.© CSCMP – Council of Supply Chain Management Professionals8-3
IntroductionLogistics Management ActivitiesTransportationWarehousingMaterial handlingPackagingInventory managementLogistics information systems8-4
Why Logistics Is CriticalChallenges and opportunities in managing logisticsAdvances in information systemsGlobalization of marketsPush toward sustainabilitySustainability – Performing activities in a manner that meets the needs of the present without compromising the ability of future generations to meet their needs. Significant impact on delivery speed and reliability8-5
Logistics Decision AreasFive Transportation ModesHighwayWaterAirRailPipeline8-6
Logistics Decision AreasTable 8.1Modal Shares of U.S. Domestic Freight for 2007 (% Change, 1997-2007)8-7
Logistics Decision AreasHighwayDominates the U.S. logistics infrastructure due to:Geographic extension of supply chainsGreater emphasis on delivery speed and flexibilityContinues to grow because it is one of the most flexible modes of transportationVery few goods are moved without highway transportation at some point in transitHas become more cost effective over time due to:Better scheduling and use of vehicle capacityMore efficient and reliable vehiclesIncreased cost competition due to deregulationInvolves different types of shipmentsDirect truck – Shipment made with no stopsLess than truckload (LTL) – Smaller shipment combined with other loads 8-8
Logistics Decision AreasWaterIdeal for materials with high weight-to-value ratio, especially if delivery speed is not critical.

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