Chapter 8 Logistics

Chapter 8 Logistics - Planning implementing and controlling...

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Unformatted text preview: Planning, implementing, and controlling the effective flow and storage of goods and materials from the point of origin to the point of consumption (CLM). • Transportation • Warehousing (and more generally, location) • Packaging • Material handling • Logistics information systems • Logistics service providers (And some would put inventory here as well!) • Deregulation • Globalization • Technological breakthroughs • Environmental concerns • Performance impact 1. Transportation providers • Elimination of artificial barriers • Unrestricted markets • Multi-modal solutions • Price, schedule, and terms flexibility 2. Buyers have greater freedom • Negotiate prices, terms, and conditions • Ownership issues Year Exports Imports 1992 $449 Billion $700 Billion 1998 $670 Billion $917 Billion Change +49% +31% What is driving this activity? Information Systems: 1. Global positioning systems 2. Bar-coding applications • RFID on the horizon as replacement 3. Real-time simulation and optimization 4. Precise coordination of multi-modal solutions Transportation Systems • Standardized containers for ease of transfer • “Roadrailers,” etc. • Multi-modal solutions Ship Truck Train Truck ? Even while certain aspects of logistics have been deregulated, other areas are being controlled more stringently, such as: • Fuel efficiency • Pollution • Recovery, recycling, and reuse of packaging, containers, and products Region Gross Domestic Product Logistics Expenditure Logistics % of GDP North America 8,495 915 10.8 Europe 7,981 941 11.8 Pacific 5,605 652 11.6 Other 7,080 916 12.9 Total 29,161 3,424 11.7 Comparative GDP and Logistics Expenditures (billions of $, 1998) Source: D. Bowersox and R. Calantone, “Executive Insights: Global Statistics,” Journal of International Marketing , Vol. 8, no. 4, 1998, pp 83-93. 2000 2004 Manufacturing Time 2 days 0.5 days Shipping Time 4 days 4 days Total Time to the Customer 6 days 4.5 days Total time to the customer at WolfByte Computer 75% decrease in manufacturing time, but only 25% decrease in time to customer. Where is the leverage now? 1. Transportation… • Modes • Formats • Pricing 2. Warehousing • Consolidation • Cross Docking and Break-Bulk • Hub and Spoke • Inventory 1. Highway (truck) 1. Water 1. Rail 1. Air 1. Pipeline Mode Value (%) Tons (%) Ton Miles (%) Highway (trucking, parcel, postal, courier) 80.3 58.5 28.4 Water 2.5 11.1 20.4 Rail 4.8 11.2 26.7 Air 2.7 0.2 Pipeline 4.2 13.7 17.6 Other/Unknown 5.5 5.5 6.7 •...
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This note was uploaded on 03/20/2011 for the course BUSMGT 361 taught by Professor Paulterry during the Winter '11 term at BYU.

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Chapter 8 Logistics - Planning implementing and controlling...

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