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37 Logistics and the environment

Rushton, Alan Kogan Page ePub

37

Logistics and the environment

Introduction

It is not the purpose of this chapter to lay out in detail current and planned logistics-related environmental legislation from around the world. The sheer variety and volume of regulation precludes such an approach. Therefore, the EU framework, including a few specific examples from the UK, will be used as an exemplar.

It is inevitable that people managing logistics, either in an active operational role or in a strategic planning role, will at some stage have to consider the environmental effects of their actions. What is meant by the environment?

Broadly speaking it may be divided into the internal environment, ie inside the organization, and the external environment, which encompasses everything that is outside the organization. The internal environment will be concerned with health and safety issues such as noise levels, the handling of dangerous substances and occurrences, as well as risk assessments and safe systems of work. Naturally, some issues will be of concern to both the internal and the external environment, such as noise pollution and emissions of substances into the atmosphere or watercourses. This chapter concentrates on issues relating to the external environment.

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14 Inventory and the supply chain

Rushton, Alan Kogan Page 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.

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22 Warehouse management and information

Rushton, Alan Kogan Page ePub

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Warehouse management and information

Introduction

The management of a large warehouse is a very challenging position that requires a range of skill sets. Warehouse management is now a high-level position in many companies, recognizing the high costs and investment involved in the facility, as well as the key role that warehouses play in the provision of high customer service levels. This chapter examines some of the key elements involved in warehouse management and then proceeds to explore the supporting information systems that are necessary for the successful operation of a large warehouse, whether it is automated or conventional in nature.

Operational management

The management of a large distribution centre is a complex task. There may be thousands of orders received in a day, across a range of thousands of SKUs, and all requiring consolidation by individual order, packing and dispatch in possibly hundreds of vehicles. The planning of such an operation needs to be undertaken at a number of levels. For example, in the long and medium term, capacity planning must be undertaken to ensure that growth can be accommodated and that seasonal peaks can be met at the required service levels. In the short term, detailed workload planning is required to ensure that the appropriate levels of equipment and staff are available, and that these are correctly balanced between the different warehouse zones.

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31 Benchmarking

Rushton, Alan Kogan Page ePub

31

Benchmarking

Introduction

Benchmarking is the process of continuously measuring and comparing ones business performance against comparable processes in leading organizations to obtain information that will help the organization identify and implement improvements.

(Benson, 1998)

The continuous process of measuring our products, services and business practices against the toughest competitors and those companies recognized as industry leaders.

(Xerox definition of benchmarking)

Benchmarking can be crucial for a company because it enables useful and relevant performance measures to be developed based on good practice that has been achieved by best-in-class external companies. Although the process is quite straightforward to explain, it can be extraordinarily difficult to conduct successfully in practice.

In this chapter the reasons for benchmarking are summarized. A general framework for conducting a benchmarking project is described and then a specific approach to distribution benchmarking is outlined. This includes a detailed discussion of some of the key practical issues that may arise when conducting such a project.

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29 Road freight transport: planning and resourcing

Rushton, Alan Kogan Page ePub

29

Road freight transport: planning and resourcing

Introduction

In this chapter the emphasis is on the means of planning and resourcing for road freight transport. Some of the key planning aspects for road freight transport are discussed in the first section. Various fleet management information systems are outlined. These are aimed specifically at assisting the transport manager to monitor, control and administer fleet operations.

Road-freight transport operations can be broken down into two main types primary transport and secondary transport. It is noted that because of service imperatives and the multi-drop nature of most secondary transport operations, they are usually planned and run using routeing and scheduling tools and techniques.

It is also shown that road-freight transport resources need to be assessed in two different areas planning and operational. Planning is where the basic resource requirements for transport are determined by the identification of the appropriate number and type of vehicles and drivers that are needed for the fleet to undertake an operation in the medium or long term. Operational is where the aim is to maximize the utilization and effectiveness of existing resources on a daily basis. However, both of these objectives can be achieved using the same method, which is by routeing and scheduling either manually or using a computer package. This, then, provides the main content for this chapter.

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