Medium 9780749459352

The Handbook of Logistics and Distribution Management

Views: 2043
Ratings: (0)

The Handbook of Logistics and Distribution Management is the definitive introduction to all the main elements of modern logistics and distribution. An invaluable guide for distribution, logistics and supply-chain professionals as well as students it covers key topics such as planning for logistics, procurement and inventory decisions, warehousing, freight and operational management.The fifth edition has been completely revised and updated throughout with new material on humanitarian logistics, multichannel fulfilment and reverse logistics.

List price: $84.95

Your Price: $67.96

You Save: 20%

Remix
Remove
 

38 Slices

Format Buy Remix

01 Introduction to logistics and distribution

ePub

01

Introduction to logistics and distribution

Introduction

The key components of logistics transport, inventory, warehousing have been fundamental elements of industrial and economic life for countless years, but it is only in the last 20 years or so that logistics has been recognized as a major function in its own right. The main reason that this recognition has only been relatively recent is the nature of logistics itself. It is a function made up of many sub-functions and many subsystems, each of which has been, and may still be, treated as a distinct management operation. Both the academic and the business world now accept that there is a need to adopt a more holistic view of these different operations in order to take into account how they interrelate and interact with one another.

The appreciation of the scope and importance of logistics and the supply chain has led to a more scientific approach being adopted towards the subject. This approach has been aimed at the overall concept of the logistics function as a whole but, importantly, includes the interrelationship of the individual subsystems as well. Much of this approach has addressed the need for, and means of, planning logistics and the supply chain, but has necessarily considered some of the major operational issues.

 

02 Integrated logistics and the supply chain

ePub

02

Integrated logistics and the supply chain

Introduction

In Chapter 1, different definitions of logistics were introduced, and the main components of logistics were outlined. It was shown that the various logistics and supply chain functions are part of a flow process operating across many business areas. In this chapter, the emphasis is on the integration of the various logistics components into a complete working structure that enables the overall system to run at the optimum. Thus, the concept of total logistics is described, and the importance of recognizing the opportunities for appropriate trade-offs is discussed. Some key aspects of planning for logistics are reviewed, and the financial impact that logistics has in a business is described. Finally, a number of key developments in logistics thinking are put forward, including the impact of the globalization of many companies, integrated planning systems, the use of logistics to help create competitive advantage and the development of supply chain management.

 

03 Customer service and logistics

ePub

03

Customer service and logistics

Introduction

The vast majority of companies consider customer service to be an important aspect of their business. When pressed, however, there are many companies that find it difficult to describe exactly what they mean by customer service or provide a precise definition of customer service measures. Traditionally, service provisions have been based on very broad assumptions of what customers want, rather than taking into account the real requirements of customers or at least customers perceptions of what they require.

For any company or organization it is vital, therefore, to have a clear definition of customer service and to have specific and recognized customer service measures. It is also important to understand that customer service and customer service requirements can and will differ not just between industries and companies but additionally between the market segments that a business might serve.

Another relevant factor is the recognition of the complexity of customer service provision. Customer service is inextricably linked to the process of distribution and logistics. Within this process, there are many influences that may be relevant to customer service. These range from the ease of ordering to stock availability to delivery reliability. Finally, there is the need to balance the level of service provided with the cost of that provision. The downfall of many a service offering is often the unrealistic and unrecognized high cost of providing a service that may, in the event, be greater than is required by the customer.

 

04 Channels of distribution

ePub

04

Channels of distribution

Introduction

This chapter considers the alternative ways in which products can reach their market. Different types of distribution channel are discussed, and an approach to channel selection is described. Finally, the key decision of whether to run an own-account distribution operation or whether to outsource to a third party is introduced.

Physical distribution channel is the term used to describe the method and means by which a product or a group of products are physically transferred, or distributed, from their point of production to the point at which they are made available to the final customer. For consumer products the end point is, generally, a retail outlet but, increasingly, it may also be the customers house, because some channels bypass the shop and go direct to the consumer. For industrial products the end point is likely to be a factory.

In addition to the physical distribution channel, another type of channel exists. This is known as the trading or transaction channel. The trading channel is also concerned with the product, and with the fact that it is being transferred from the point of production to the point of consumption. The trading channel, however, is concerned with the non-physical aspects of this transfer. These aspects concern the sequence of negotiation, the buying and selling of the product, and the ownership of the goods as they are transferred through the various distribution systems.

 

05 Key issues and challenges for logistics and the supply chain

ePub

05

Key issues and challenges for logistics and the supply chain

Introduction

In this chapter, many issues are raised and discussed with the aim of highlighting the most important challenges that need to be addressed by logistics and supply chain professionals. In recent years there have been very significant developments in the structure, organization and operation of logistics, notably in the interpretation of logistics within the broader supply chain. Major changes have included the increase in customer service expectations (Chapter 3), the concept of compressing time within the supply chain (Chapter 14), the globalization of industry in terms of both global brands and global markets (Chapter 2) and the integration of organizational structures (Chapter 10). These and other key developments are discussed in greater detail elsewhere in this book, but others are reviewed below. Issues may be external to logistics, such as deregulation, or may indeed derive from changes within logistics, such as improved handling or information technology.

 

06 Planning framework for logistics

ePub

06

Planning framework for logistics

Introduction

The need for a positive approach to planning was discussed in Chapter 2, together with the concept of a logistics planning hierarchy. In this chapter a more detailed planning framework for logistics is described, and some key strategic considerations are introduced. A generalized approach to corporate strategic planning is outlined, and this is linked to a specific logistics design strategy. The main elements of this design strategy are described. Finally, some of the fundamental influences on logistics network planning and design are detailed, in particular, product characteristics, the product life cycle, packaging and unit loads.

Pressures for change

Historically, many organizations have adopted a piecemeal and incomplete approach to their strategic planning. This is particularly true in the context of logistics, where individual functions within the logistics or supply chain have often been sub-optimized to the detriment of the logistics chain as a whole. One of the reasons for this incomplete approach is the pressure for change exerted on companies from a wide variety of sources. Figure 6.1 provides an illustration of some of these pressures. They include:

 

07 Logistics processes

ePub

07

Logistics processes

Introduction

As discussed in Chapter 6, one of the key elements of planning for logistics is the design of appropriate logistics processes. These processes are the methods that are used to ensure that the business operates effectively so that all major objectives are achieved. The aim is for a streamlined operation that works across the various functional boundaries that exist within any company. Thus, processes need to be supply-chain-oriented. One of the main problems with many logistics processes is that they are very often the responsibility of one particular function but are spread across the boundaries of several different ones. Thus, it can be difficult for a company to operate efficiently as a single entity. The consequences of this are usually inefficiencies, which show up as additional costs within the logistics system or lower levels of customer service. In many companies, both of these effects occur.

This chapter will consider the importance of logistics processes and the need to move away from functional and towards cross-functional process development. The main reasons for adopting more streamlined processes are discussed. Some of the key logistics processes are described, and the process triangle is introduced as a means of categorizing the different processes. A broad approach to process design is outlined, and the main steps in this approach are discussed. Finally, some key tools and techniques are described. These can be used for logistics process redesign.

 

08 Supply chain segmentation

ePub

08

Supply chain segmentation

Introduction

As noted in Chapter 2, a one-size-fits-all approach to logistics is not appropriate in most instances. Some form of supply chain segmentation is therefore necessary for a company to satisfy the various service and cost needs of its customers. In addition to the channel options discussed in Chapter 4, this raises the question of exactly how a companys own supply chain should be segmented. For example, one type of supply chain may be appropriate for large bulky items and another for small parcels. Similarly, a supply chain may be necessary for highly demanding customers separate to that generally available to the market. There are many different ways in which supply chains may be segmented and this chapter explores some of the more common segmentation bases that are available.

Product segmentation

It may be necessary to have different supply chains because of the very nature of the products. For example, when delivering to petrol stations the fuel may be delivered in large road tankers whereas the food and other items for the petrol forecourt shop would need to be delivered in clean, enclosed vans or trucks. Some key product characteristics were described in Chapter 6. Such product characteristics are often an important basis for supply chain segmentation. Examples include:

 

09 Logistics network planning

ePub

09

Logistics network planning

Introduction

In this chapter a particular approach to logistics network planning is developed and described. The main content follows on from, and links very closely with, the planning framework that was proposed in Chapter 6. As well as considering the key flows and cost relationships, various aspects associated with depot/distribution centre (DC) and facilities location are reviewed. There are both theoretical concepts and practical considerations to be taken into account. Some of the major points for discussion are:

The question of the number, size and location of facilities in a companys distribution system is a complex one. There are many different elements that go to make up the distribution mix, and it is necessary to take into account all of these when considering the question of network structure or facilities location. Prior to the DC location decision, a lot of work must be undertaken. This is necessary to help to understand the key requirements of the company and to collect and collate sufficient data that represent a numerical picture of the distribution structure so that appropriate analysis can be carried out to test potential options for improvement.

 

10 Logistics management and organization

ePub

10

Logistics management and organization

Introduction

This chapter considers how logistics and distribution are organized within a business. The importance of the integration of the logistics function into the business as a whole has been emphasized at various times throughout this book. There is a need for the organizational structure to reflect a similar form of integration. Thus, logistics organizational issues and human resource or people aspects are addressed in this chapter.

There are several factors covered, the first being a brief summary of those aspects that concern the relationship of logistics and distribution with other corporate functions, introduced earlier in Chapter 2. Allied to this, a number of different organizational structures are discussed. These include traditional structures as well as those that provide more emphasis on logistics and those that allow for a process-oriented, cross-functional integrated approach to the organization.

The role of the logistics and distribution manager is considered both with respect to his or her position within the company and also with respect to key functional responsibilities. A more grass-roots view of logistics is taken, with a discussion on the payment schemes used within the distribution and logistics environment. Finally, some key points are made concerning the selection of temporary staff and assets.

 

11 Multichannel fulfilment

ePub

11

Multichannel fulfilment

Introduction

Multichannel fulfilment is a term used to describe the distribution of goods that have been sold through a number of different sales channels. The term is used particularly in retailing in relation to the delivery of goods sold through retail stores (ie shops), catalogue orders and internet orders. It is the rapid expansion of the latter that has made this a major issue for many companies. In recent parlance, many bricks-and-mortar retailers (ie selling solely through shops) have become bricks-and-clicks retailers (ie selling through shops and the internet). Internet orders now comprise e-commerce (eg ordering via personal computers) and m-commerce (eg ordering via mobile telephones).

It should be noted that consumers may interact with retailers through a variety of channels at different stages of a transaction. For example:

A consumer may use a variety of these channels in relation to a single purchase. For example, he or she may see something in a magazine, find out more details while visiting a store, purchase on the website, collect from the store and arrange to return it by post. This potential mix of channels presents a number of challenges with regard to marketing, sales and physical distribution. It is important in this context, often known as omnichannel retailing that a consistent brand experience is provided to consumers across these channels at each stage of the transaction.

 

12 Manufacturing logistics

ePub

12

Manufacturing logistics

Introduction

This chapter aims to provide the reader with an overview of the processes involved in the production of goods and services. These processes are known under various names, including manufacturing logistics and operations management (OM). The latter has been described as follows: Operations Management is about the management of the processes that produce or deliver goods and services. Not every organisation will have a functional department called operations but they will all undertake operations activities because every organisation produces goods and/or services (Greasley, 2009).

This should not be confused with operational management, which could of course be applied to almost any form of management. The thinking behind OM is based on systems thinking with a system defined as: A collection of interrelated components that work together towards a collective goal. A system receives inputs and converts them into outputs via a transformation process. This is most obvious in a manufacturing context where raw materials and labour play the part of inputs that are transformed by the production process into outputs in the form of finished products.

 

13 Basic inventory planning and management

ePub

13

Basic inventory planning and management

Introduction

Decisions regarding the amount of inventory that a company should hold and its location within a companys logistics network are crucial in order to meet customer service requirements and expectations. But there is, potentially, a large cost associated with holding inventory. It is vital to get the balance of cost and service right. This chapter sets out to explore the basic concepts behind the inventory-holding decision.

In the first part of the chapter, the main reasons for holding stocks are considered. The many different types of inventory are then described. These include raw material stocks through the supply chain to finished goods stocks. The implications of inventory-holding policy on other logistics functions are highlighted, with particular emphasis on the need to provide the balance between cost and service that was indicated above. The need to avoid the sub-optimization of logistics resources is also discussed.

The two main inventory replenishment systems are described. These are the periodic review and the fixed point reorder systems. The stock level reorder point is important, and must take account of the stock required to cover the lead time before the new stock is received as well as the safety stock required to cover for variations in demand and supply. The impact that end-user demand changes have on requirements further up the supply chain is outlined. The means of identifying reorder quantities using the EOQ method is described, and it will be noted that it is important to take other factors into account when determining order quantities in this way.

 

14 Inventory and the supply chain

ePub

14

Inventory and the supply chain

Introduction

In the previous chapter, the basic inventory planning and management techniques were described. This chapter provides a description of some of the more recent developments in inventory planning, particularly with respect to the way that inventory is viewed across the supply chain as a whole. In addition, the important relationship of inventory and time is discussed.

The chapter starts with a consideration of some of the problems associated with the traditional approaches to inventory planning. Inventory requirements are reviewed in relation to the different types of demand that can be found, and the importance of the decoupling point is emphasized. The need for a company to hold inventory is explored with respect to the lead-time gap the difference between the length of time it takes to complete an order and the amount of time a customer is prepared to wait for that order to be satisfied.

Different approaches to inventory reduction are considered, and some of the main methods of measuring inventory and its relationship with time are reviewed. Finally, various new approaches to inventory planning for both manufacturing and retailing are described.

 

15 Procurement and supply

ePub

15

Procurement and supply

Introduction

Procurement and supply is one of the key links in the supply chain and as such can have a significant influence on the overall success of the organization. Ensuring that there are sufficient supplies of raw materials at the right price, of the required quality, in the right place and at the right time is obviously crucial to any manufacturing plant. So important is this process that over the years many organizations have developed large departments to deal with the sheer weight of supplier transactions. Recently, however, many companies have been reducing the number of suppliers they deal with in order to reduce the cost of these transactions.

In addition to supplier reduction programmes, many companies have tried to move away from the traditional adversarial relationship with suppliers and towards a more partnership-based approach. This style of relationship recognizes that both parties need to make a profit to survive but that there may be areas where, through cooperation, real cost may be removed from the supply chain and competitive advantage gained by working together.

 

16 Principles of warehousing

ePub

16

Principles of warehousing

Introduction

Warehouses are crucial components of most modern supply chains. They are likely to be involved in various stages of the sourcing, production and distribution of goods, from the handling of raw materials and work-in-progress through to finished products. As the dispatch point serving the next customer in the chain, they are critical to the provision of high customer service levels.

Warehouses are an integral part of the supply chains in which they operate, and therefore recent trends, such as increasing market volatility, product range proliferation and shortening customer lead times, all have an impact on the roles that warehouses are required to perform. Warehouses need to be designed and operated in line with the specific requirements of the supply chain as a whole. They are therefore justified where they are part of the least-cost supply chain that can be designed to meet the service levels that need to be provided to the customers. Owing to the nature of the facilities, staff and equipment required, warehouses are often one of the most costly elements of the supply chain and therefore their successful management is critical in terms of both cost and service.

 

17 Storage and handling systems (palletized)

ePub

17

Storage and handling systems (palletized)

Introduction

The wooden pallet is the most common unit load used in warehouses. It is a convenient-sized load for moving goods around the warehouse and for the storage of goods. The goods often arrive already on pallets, but even where this is not the case, as occurs frequently with loose-loaded ISO containers, then the goods may be palletized at the goods receiving area ready for put-away to storage. The use of wooden pallets enables standard storage and handling equipment to be used, irrespective of the nature of the goods on the pallet. The exact nature of the equipment will be determined by such factors as the throughput levels, inventory holdings and the requirements of the wider supply chain. The various types of storage and handling equipment available for palletized goods are explored in this chapter.

Pallet movement

There is a wide range of equipment available for moving pallets around a warehouse, from simple manual aids to sophisticated computer-controlled equipment. Some of the most common types are as follows:

 

18 Storage and handling systems (non-palletized)

ePub

18

Storage and handling systems (non-palletized)

Introduction

Although pallets are very widely used in warehouse operations, there are many types of product that are not suitable for palletization, because they may be too small, too large or too long, or because they require lifting from the top. These products may include, for example:

In fact, one survey has indicated that about half of the goods in warehouses are stored in units other than pallets (see Figure 18.1). The most common of these is as cases of product (eg cardboard boxes with product inside). These may just be placed directly on shelving, rather than on pallets. Another common form is in tote bins (eg plastic, fibreboard or metal boxes), normally used for holding a number of individual items or small cartons of product. This chapter examines the various storage and handling systems that may be applied to all goods not stored on pallets.

Source: Baker and Perotti (2008)

Figure 18.1 Warehouse unit loads

Small item storage systems

 

Load more


Details

Print Book
E-Books
Slices

Format name
ePub
Encrypted
No
Sku
B000000019212
Isbn
9780749459352
File size
13.3 MB
Printing
Allowed
Copying
Allowed
Read aloud
Allowed
Format name
ePub
Encrypted
No
Printing
Allowed
Copying
Allowed
Read aloud
Allowed
Sku
In metadata
Isbn
In metadata
File size
In metadata