The document discusses supply chain logistics management. It covers topics like the importance of logistics to business, logistics value propositions in terms of service and cost minimization, the various functions of logistics including order processing, inventory management, transportation, warehousing and facility network design. It also discusses logistics operations and structures, and factors that influence supply chain logistics performance.

1. Supply Chain Logistics Management
Zubin Poonawalla
President
Supply Chain Central Advisory Services

2. Supply Chain Logistics Management
• Importance of Logistics to Business
• Logistics Value Proposition
• The Work of Logistics
• Logistics Operations
• Logistics Operating Structures
• Supply Chain Logistics Performance

3. Supply Chain Logistics Management
• Scope of Logistics
• Logistics Operations

4. Supply Chain Logistics Management
• Scope of Logistics
• Logistics Operations

5. Supply Chain Logistics Management
• Scope of Logistics
• Logistics Operations

6. Importance of Logistics to Business
• Manufacturing → Consumers
• Logistics Expenditures
• Logistics as a Sustainable Competitive
Advantage (SCA)
Supply Chain Logistics Management

7. Importance of Logistics to Business
• Manufacturing → Consumers
• Logistics Expenditures
• Logistics as a Sustainable Competitive
Advantage (SCA)
Supply Chain Logistics Management

8. Importance of Logistics to Business
• Manufacturing → Consumers
• Logistics Expenditures
• Logistics as a Sustainable Competitive
Advantage (SCA)
Supply Chain Logistics Management

9. Source: Robert V. Delaney, 11th Annual “State Of Logistics Report” © June 5, 2000
1980
 GDP $2.88 trillion
 Logistics Cost $451 billion
 15.7% of GDP
 Trans. Cost $214 billion
 47.5 % of Logistics Cost
1999
 GDP $9.26 trillion
 Logistics Cost $921 billion
 9.9% of GDP
 Trans. Cost $554 billion
 60.2 % of Logistics Cost
Logistics Transportation
$billion
0
100
200
300
400
500
600
700
800
900
1980 1999
100
0
Year
United States Logistics Costs

10. Importance of Logistics to Business
• Manufacturing → Consumers
• Logistics Expenditures
• Logistics as a Sustainable Competitive
Advantage (SCA)
Supply Chain Logistics Management

11. Logistics Value Proposition
• Service
• Cost Minimization
Supply Chain Logistics Management

12. Logistics Value Proposition
• Service
• Cost Minimization
Supply Chain Logistics Management

13. Logistics Value Proposition
• Service
– Logistics Service Quality Process Dimensions
– Logistics Service Quality Outcome Dimensions
• Cost Minimization
Supply Chain Logistics Management

14. Logistics Value Proposition
• Service
– Logistics Service Quality Process Dimensions
• Procedures
• Contact
• Information
• Discrepancy
– Logistics Service Quality Outcome Dimensions
• Cost Minimization
Supply Chain Logistics Management

15. Logistics Value Proposition
• Service
– Logistics Service Quality Process Dimensions
– Logistics Service Quality Outcome Dimensions
• Timeliness
• Availability
• Condition
• Accuracy
• Cost Minimization
Supply Chain Logistics Management

16. Logistics Value Proposition
• Service Benefits
• Cost Minimization
Supply Chain Logistics Management

17. The Work of Logistics
• Order Processing
• Inventory
• Transportation
• Warehousing, Materials Handling,
Packaging
• Facility Network Design
Supply Chain Logistics Management

18. Integrated Logistics
Order
Processing
Inventory
Transportation
Facility
Network
Warehousing,
Material Handling

19. The Work of Logistics
• Order Processing
– order receipt, order assembly, order delivery,
invoicing & collection
• Inventory
• Transportation
• Warehousing, Materials Handling
• Facility Network Design
Supply Chain Logistics Management

20. The Work of Logistics
• Order Processing
• Inventory
• Transportation
• Warehousing, Materials Handling
• Facility Network Design
Supply Chain Logistics Management

21. The Work of Logistics
• Order Processing
• Inventory
• Transportation
• Warehousing, Materials Handling
• Facility Network Design
Supply Chain Logistics Management

22. The Work of Logistics
• Order Processing
• Inventory
• Transportation
• Warehousing, Materials Handling
– sorting, sequencing, product modification &
assembly, and transportation consolidation
• Facility Network Design
Supply Chain Logistics Management

23. The Work of Logistics
• Order Processing
• Inventory
• Transportation
• Warehousing, Materials Handling
• Facility Network Design
Supply Chain Logistics Management

24. Logistics Operations
Customers
Enterprise
Customer
Service
Manufacturing
Support
Procurement
(Purchasing)
Suppliers
Information Flow
Inventory Flow

25. Logistics Operations
• Inventory Flow
– Customer Service
– Manufacturing Support
– Purchasing (procurement) Support
• Information Flow
Supply Chain Logistics Management

26. Logistics Operations
• Inventory Flow
• Information Flow
Supply Chain Logistics Management

27. Logistics Operating Structures
• Echelon
• Direct
• Combined
Supply Chain Logistics Management

28. Logistics Operating Structures
• Echelon
• Direct
• Combined
Supply Chain Logistics Management

29. Echeloned Structured Logistics
Supplier
Storage or
Consolidation
Warehouse
Manufacturer
Wholesaler’s
Warehouse
or
Distribution
Center
Retailer Customer

30. Logistics Operating Structures
• Echelon
• Direct
• Combined
Supply Chain Logistics Management

31. Logistics Operating Structures
• Echelon
• Direct
• Combined
Supply Chain Logistics Management

32. Combined Echelon and Direct Structured
Logistics
Supplier
Storage or
Consolidation
Warehouse
Manufacturer
Wholesaler
Warehouse
or
Distribution
Center
Retailer Customer
Direct Delivery

33. Supply Chain Logistics Performance
• Performance Cycle Structure
Supply Chain Logistics Management

34. Sources of Performance-Cycle Variation
Order
Transmission
Time Range - Days
1/2 31
Customer
Delivery
Time Range - Days
1/2 31
Order
Transportation
Time Range - Days
2 104
Order
Selection
Time Range - Days
1 202
Order
Processing
Time Range - Days
1 42
Total Performance Cycle
Time Range - Days
5 4010