After studying this chapter you will be able to understand: A revised strategy is generating great top management interest, setting customer service goals, transportation, inventory management, order processing and information flows, warehousing, materials handling, acquisition (purchasing), protective packaging, product scheduling, information maintenance. | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 4 1 Scope of the Supply Chain for Most Firms Physical distribution Physical supply (Materials management) Business logistics Sources of supply Plants/ operations Customers • Transportation • Inventory maintenance • Order processing • Acquisition • Protective packaging • Warehousing • Materials handling • Information maintenance • Transportation • Inventory maintenance • Order processing • Product scheduling • Protective packaging • Warehousing • Materials handling • Information maintenance Focus firm’s internal supply chain 1-14 Key Activities/Processes Primary Setting Customer service goals Transportation Inventory Management Order Processing and Information Flows Secondary, or supporting Warehousing Materials Handling Acquisition (Purchasing) Protective Packaging Product Scheduling Information Maintenance 1-3 Key Activities/Processes Primary Setting Customer service goals (work with marketing) Identify customer needs and wants for logistics customer service Determine customer response to service Set customer service level – directly related to costs Transportation (primary cost absorbing activity which adds place value) Mode and transport service selection Freight consolidation Carrier Routing Vehicle Scheduling Equipment Selection Claims Processing Rate Auditing 1-4 Key Activities/Processes Primary Inventory Management (adds time value to the products, bridges the gaps between supply and demand) Raw Materials and finished goods stocking policies Short term sales forecasting Product mix at stocking points Number, size and location of stocking points Just-in-time (low levels), push (forecasting based) and pull (order based) strategies Order Processing and Information Flows (Activity that triggers the whole process) Sales order – inventory interface procedures Order information transmittal methods Ordering Rules 1-5 Key Activities/Processes Secondary, or supporting Warehousing Space Determination Stock layout and dock design Warehouse configuration Stock placement Materials Handling Equipment selection Equipment replacement policies Order-picking procedures Stock storage and retrieval 1-6 Key Activities/Processes Secondary, or supporting Acquisition (Purchasing) Supply source selection Purchase timing Purchase quantities Protective Packaging Handling Storage Protection from Loss and Damage 1-7 | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 4 1 Scope of the Supply Chain for Most Firms Physical distribution Physical supply (Materials management) Business logistics Sources of supply Plants/ operations Customers • Transportation • Inventory maintenance • Order processing • Acquisition • Protective packaging • Warehousing • Materials handling • Information maintenance • Transportation • Inventory maintenance • Order processing • Product scheduling • Protective packaging • Warehousing • Materials handling • Information maintenance Focus firm’s internal supply chain 1-14 Key Activities/Processes Primary Setting Customer service goals Transportation Inventory Management Order Processing and Information Flows Secondary, or supporting Warehousing Materials Handling Acquisition (Purchasing) Protective Packaging Product Scheduling Information Maintenance 1-3 Key Activities/Processes Primary Setting Customer service goals (work with marketing) Identify customer needs and
