Upload
mort
View
72
Download
0
Embed Size (px)
DESCRIPTION
Physical Distribution Management and Strategy. Physical Distribution. The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption - PowerPoint PPT Presentation
Citation preview
Physical Distribution Management and
Strategy
Physical Distribution• The process of
– planning, implementing, and controlling– the efficient, effective flow and storage– of goods, services, and related information– from point of origin to point of consumption– for the purpose of conforming to customer's
requirements. • Physical distribution cost can represent 20%
or more of the selling price of a product.
Logistics Management• The efficient management of the flow of
materials inbound-through and outbound of an organization.
• Two primary product flows:– Physical supply (materials management):
Flows that provide raw materials, components, and supplies to the production process.
– Physical distribution management: Flows that deliver the completed product to customers and channel intermediaries.
Supplier
Manufacturer Customer
Materials manageme
nt
Physical distribution
management
Logistics Management
InboundLogistics
OutboundLogistics
Study Area Map
Supply chain management (a series of connected logistics flows)
Logistics management
Materials management Physical distribution
Incoming transportation Traffic managementReceiving ShippingPurchasing Customer serviceIncoming warehousing Finished goodsInventory control
Functions of Traffic Management
• Mode and carrier selection• Routing• Claims processing• Operation of private transportation
Many of the imported goods you purchase were shipped in 20-foot (TEU) or 40-foot (FEU) steel
containers
Large cranes load the containers onto ships.
(Image courtesy of the Port of Charleston))
Larger container ships can hold 4,000 to 6,000 containers.
(Image courtesy of Maersk Sealand)
After unloading from ships, containers can be loaded onto a flatbed rail car, or truck flatbed,
for additional intermodal shipping. (Image courtesy of CSX Corp.)
Alternatively, a container can be attached to a set of wheels for motor transport
(as an 18-wheeler trailer).
Major Advantages by Transportation Mode• Motor
– Speed of delivery
– Diversity of equipment
– Flexibility– Frequency of
movement– Transfer of
goods to other carriers
– Convenient to both shipper and receiver
• Rail– Mass movement of
goods– Low unit cost of
movement– Dependability– Long-haul moving– Wide coverage to
major markets and suppliers
– Many auxillary services (i.e., switching)
– Transfer of goods to other carriers
– Specialized equipment
• Water– Very low unit
cost of movement
– Movement of low-unit-value commodities
– Long-haul movement
– Mass movement of bulk commodities
(continued)
• Pipeline– Lowest unit cost
of movement– Mass movement
of liquid or gas products
– Long-haul moving
– Large capacity– Most
dependable mode
• Air– Frequent
service to major markets
– Large capability– Overnight
service– Most rapid
speed of any carrier
• Intermodal– Cost savings– Lower loss and
damage claims due to containerization
– Service extended to more shippers and receivers
– Reduced handling and storage costs
Major Advantages by Transportation Mode
Controllable Elements in a Logistics System
• Customer service• Logistics communications• Warehousing• Packaging• Production planning• Order processing• Transportation• Inventory control• Materials Handling• Plant and warehouse location