38 Slices
Medium 9780749459352

06 Planning framework for logistics

Rushton, Alan Kogan Page 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:

See All Chapters
Medium 9780749459352

11 Multichannel fulfilment

Rushton, Alan Kogan Page 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.

See All Chapters
Medium 9780749459352

02 Integrated logistics and the supply chain

Rushton, Alan Kogan Page 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.

See All Chapters
Medium 9780749459352

19 Order picking and packing

Rushton, Alan Kogan Page ePub

19

Order picking and packing

Introduction

Order picking represents a key objective of most warehouses: to extract from inventory the particular goods required by customers and bring them together to form a single shipment accurately, on time and in good condition. This activity is critical in that it directly impacts on customer service, as well as being very costly. Order picking typically accounts for about 50 per cent of the direct labour costs of a warehouse.

Customers may require goods in pallet, case or unit quantities. In the case of pallet quantities, goods can be extracted from the reserve storage areas and brought directly to the marshalling area by the types of equipment described earlier (eg by a reach truck or a combination of stacker crane and conveyor). This chapter is therefore chiefly concerned with case and unit picking operations. For example, cases may be picked from pallets held in ground-floor locations for specific customer orders or individual units may be picked from plastic tote bins held on shelving. These would then typically be checked, collated with other goods, packed (if necessary) and moved to the marshalling area to form vehicle loads ready for dispatch.

See All Chapters
Medium 9780749459352

33 Outsourcing: services and decision criteria

Rushton, Alan Kogan Page ePub

33

Outsourcing: services and decision criteria

Introduction

In the final section of Chapter 4 it was noted that probably the most important channel decision for those operating in distribution and logistics is whether to use an own-account (in-house) operation or whether to outsource to a third-party logistics (3PL) service. The breakdown of the use of outsourcing in different countries was outlined using data from a few recent studies. This chapter, and the next two chapters, are all concerned with outsourcing, beginning here with a review of the different outsourcing services that are available. Chapter 34 describes the detailed steps of an approach for the selection of a service provider; Chapter 35 considers the important question of contractor management. Continuing developments in logistics outsourcing were covered in Chapter 5, where the concept of fourth-party logistics (4PL) was described.

This chapter begins with a description of the various outsourcing operations and services that are offered by third-party logistics service providers. The question of whether to adopt a dedicated or a multi-user approach is reviewed. The drivers and drawbacks of outsourcing are also discussed. Finally, the critical factors of choosing between different service providers are considered.

See All Chapters

See All Slices