Appunti completi di Logistics Management

LOGISTICS MANAGEMENT

• 1. INTRODUCTION
  • Evolution of logistics
    • Importance of logistics: cost reduction, customer service
    • Principles of logistics management
• 2. WAREHOUSE
  • Functions
    • Receiving
    • Storing
    • Mixing
    • Moving goods faster
• 3. MATERIAL FLOW
  • Procurement
    • Internal process
  • Finished products
  • New customer services
• 4. ORDER PLANNING AND DESIGN
  • Networking
    • Cost efficiency
  • MPS (Master production schedule)
  • Arrangement of master production schedule
  • SOP systems
    • Constraints & objectives
• 5. TRANSPORTATION
  • Modes
    • Rail, air, road
  • Intermodal
    • Unit to load
• 6. NETWORK DESIGN
  • Types of distribution systems
    • Cost-driven
  • Strategic planning
  • Performance measurement
• 7. INVENTORY MANAGEMENT
  • Cost of inventory
    • Engineering, logistics
  • Inventory control
    • Efficiency, service level

Logistics Management

Introduction

• Military Context
• Business Context

Logistics is the science of planning and carrying out the movement and maintenance of forces (NATO)

Logistics Management is 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.

The Evolution of Logistics

Progression Curve

• External
• Internal
• Distribution & 4P

1940 1960 1980 2000

Physical Distribution / Material Handling

Logistical management of finished products from the end of production line to customer

Focus:

• Simple cost minimizing
• Reduction of distribution or single production costs

Integrated Logistics

• Not restricted to work on distribution to satisfy customer requirements to integrate complete goods flow

Logistics is a process including production, distribution, and returns flow

Focus:

• Reduction of the overall logistics costs

Supply Chain Management

Use of IT managing the different memories, infrastructures, resources, products and information of all the links between suppliers and end customers

Focus on the overall, complete management of logistics as an interfunctional flow

• Integration of the external SC

Supply Chain Based Competition

Logistics is part of a more comprehensive concept: SCM

Not only direct goods but also reverse flow (goods + info)

Focus:

• Services to the customer service

3. Order Cycle Time

• Order cycle received by the customer
• Ship date = date of goods delivered

Order cycle time is the time elapsed between the order receipt and the order delivery. It depends on both the time required to carry out the activities (order management, order fulfillment, and time availability of posts).

Each ship of ours has an # out of order we need to (Morino) to consider also the time of the experimentation -> depends on the FIFO role.

• Order process
• Warehousing
• Pics availability
• Pics classrooms
• Lead time
• Loan delivery

The Margin-Firm Relationship

We need to know the logistics costs to provide a determined service level and we have to assess if they are justified or not (in terms of impact on the relevance).

• Cost to serve approach
• Segmentation: The margin-service relationship strongly depends on the customer profile. Customer should be assigned, according to the different types of service level performed and to the costs to provide them. If customers are not equal, they don't ensure also the same CL%

There is not where the service rate is 100%.

3. Reducing the Working Assets

• By reducing inventories
• By reducing/payrolling the "cost to cost" cycle time

Can be defined as the average delay required to refine a dollar invested in raw material into a dollar collected from a customer.

• Inventory Capture
• Account Receivable - Account Payable

How much it takes orders a profit partner allows you to pay. (Performing faster than initiation means they know CMA).

1. 1 = DIH = If you reduce the time
2. 2 = + DOO = if you get paid before

Days of Sales Outstanding - how long they need to collect account receivable from orders received from customers.

DIH = Days of Inventory Holdings

DPO = Days of Payable Outstanding - days lag allowed by the suppliers between receiving materials and paid invoice.

C2C > 0 -> Need money to fund these activitiesC2C < 0 -> Company can get liquidity from its activity

Full pallet → Mixed pallet → Part of consignment

Minimum unit = Full pallet

Transport the goods from one pallet to a mixed one

Because the customers require different quantities of different goods

Type of Warehouse

1. Warehouse/Depots/Distribution Center
   • Storage + Flow management functions
   • It needs materials planning and materials management
   • It consolidates loads and cargo orders
   • It accompanies whole shipping activities (typical of a depot)
2. Transit Point/Sorting Platforms
   • Flow management functions (goods are sorted with the same purposes)
   • It does not need order picking
   • Flow control only
   • The possibility arises just for the collection, consolidation and the cross docking (no re-handling)
   • May eventually perform sorting activities
   • No: cross docking
     • picking
     • re-packing

Cross Docking Activity:

Vehicles collecting from the outside warehouse

Vehicles delivering goods to the end customers

Warehouse Operations

Main Flow Management Activities:

1. Receiving – the transferring of goods from the upstream part of the SC to the warehouse
2. Put-away & Storage
   • The moving of goods from the docking bay to the storage location
3. Order fulfillment
   • We retrieve the goods to satisfy the customer order
4. Shipping –
   • We load the goods on the trucks for the delivery to the customer

• Allocate – storage space to reserve
• Dock – specific time frame to move the freight into storage
• Unload the truck: – take goods into lower level picking

• Identify the product – The product is identified (matching bar code)
• Checklist – The check as to whether the product is in correct status and is undamaged
• Update records – The WMS and monitoring records are updated