Logistics
Overseeing the shipment of incoming and outgoing goods
Shipping method and timeCost of AlternativesGovernment
regulationsQuantities and timing Potential shipping
delays/disruptionsTraffic Management
French logistique art of calculating, logisticsGreek logistik
art of calculating, from feminine of logistikos of calculation,
from logizein to calculate, from logos reason.First Known Use:
circa 1861 (merriam-webster.com)
Original use: to describe the science of movement, supplying
& maintenance of military forces in the field
(firstfreight.com)
Around 2700 B.C.: Material handling technology in pyramid
construction. Blocks of stone weighing several tons were
transported and assembled at the construction site.
(dhl-discoverlogistics.com)
The movement of materials, services, cash and information in a
supply chain
1. From incoming vehicles to receiving2. From receiving to
storage3. From storage to the point of use4. From one work center
to the next/temporary storage5. From the last operation to final
storgae6. From storage to packaging/shipping7. From shipping to
outgoing vehicles
Logistics
movement within a facility
System of inventory management and distribution planning
Management uses DRP to plan and
coordinate:TransportationWarehousingWorkersEquipmentFinancial
flowsDistribution Requirements Planning (DRP)
Outsourcing of logistics management
Third Party Logistics (3-PL)
Backward flow of goods returned to the supply chain from their
final destination
Goal: to capture/ create value in returned goods or to properly
dispose of goods that cannot be resoldReverse Logistics
Two key elementsGatekeeping screening of returned goods to
prevent incorrect acceptance of goodsControl the rate of returns
w/o negatively impacting customer service
Avoidance finding ways to minimize the number of items that are
returnedProduct design and quality assurance
Reverse Logistics
The use of electronic technology to facilitate business
transactionsUsing Internet technologies to conduct any level of
business
Two essential featuresWeb site (front end)Order fulfillment
(back end)E-Business
CompaniesGlobal presenceAccess to their service any place, any
timeElectronically monitor customers choices and requestsAnalyze
product demandCollection of detailed data about clients
preferencesSupply chain response times are shortenedIntermediaries
are reduced/eliminateddisintermediationCreation of virtual
companies that distribute only through WebE-Business Advantages
Share forecastsDetermine status of orders in real timeAccess
inventory data of partners
Successful supply chain requirementsTrustEffective
communicationSupply chain visibilityEvent management
capabilityPerformance metricsEffective Supply Chain
Supply Chain Visibility A major trading partner can connect to
its supply chain to access data in real time
Event ManagementThe ability to detect and respond to unplanned
events
A technology that uses radio waves to identify objects such as
goods in supply chains
Radio Frequency Identification (RFID)
World War II(Japanese, Germans, Americans & British)radar to
warn of approaching planes while they were still miles away.
Identify Friend or Foe (IFF) system by Watson-WattThey put a
transmitter on each British plane. When it received signals from
radar stations on the ground, it began broadcasting a signal back
that identified the aircraft as friendly.Mario W. Cardullo claims
to have received the first U.S. patent for an active RFID tag with
rewritable memory on January 23, 1973. That same year, Charles
Walton, a California entrepreneur, received a patent for a passive
transporder used to unlock a door without a key. A card with an
embedded transporder communicated a signal to a reader near the
door. When the reader detected a valid identity number stored
within the RFID tag, the reader unlocked the door.First RFID
Patents(rfidjournal.com)
