Logistics

- part of SCM that plans, implements, and controls the efficient, effective forward and reverse flow
or storage of goods, services and related information between the point of origin and the point of
consumption in order to meet customer requirements.

Metrics
- Reliability, Cycle Time, Cost, and Accuracy
Procure
- Source, Convert, Deliver, Return
Supply
- Anticipate, Strategize, Manage, Support
Market
- Product, Place, Price, Promotion
Logistics
- Inbound
- Internal
- Outbound
- Reverse

Logistics Management
1. Transportation
2. Warehouse
3. Information
4. Order
5. Returns
6. Inventory

Optimization
1. Local
2. Corporate
3. Total

Systems
- The interaction among component subsystems is as important as the subsystems themselves.

Reverse Logistics
1. Easy return policies
2. Warranty
3. Recalls
4. Overstocks
5. Salvage
6. Regulations

Returns Management
1. Avoidance
2. Return Centers
3. Outsourcing
4. Gatekeeping
5. Zero Returns Policy

Third Party Providers

 - Brokers, Forwarders, Customs Agents, Import/Export Specialists

Regionalization
- Short Supply Lines, Tailored Products, Local Economic Development

Responsiveness to Customers
- Nimble, Responsible, Flexible, Resilient

21st Century Logistics

- Logistics is better in general (more informed/reliable)

20th Century Supply Chain

- Push Oriented, paper driven, buffered, inventory centric

21st Century Supply Chain

1. Value Centric
2. Mass customization
3. Pull oriented
4. IT Driven
5. Error free

Service Metrics
1. Availability
2. Operational Performance
3. Service Reliability

Traditional Cost Model

- Lowest Cost per function, ignores impact of cost decisions across functions

Total Cost Model

- Lowest delivered cost, considers cost interactions

Seven Objectives in Modern Supply Chains

1. Responsiveness
2. Variance Reduction
3. Inventory Reduction
4. Shipment Consolidation
5. Quality
6. Life Cycle Support
7. Resilience

Echelon
- is a linear flow from origin to destination through buffers

Direct
- is designed to ship products directly to customers destination from one or a limited number of
centrally located inventory.

Combined
- Is a combination of Echelon and Direct, depending on the product, market, or customer.
Logistics Concerns
- Product, Accommodation, Information

Distribution channels
- the structure that links a group of individuals

Distribution trends
- Social trends
- Economical trends
- Competitive trends
- Supply chain issues

Information costs
- Concerned with all aspects of the order process, including writing, receiving, acknowledging and
processing orders.

Storage costs
- Inventory forms part of the manufacturers' current assets.

Transport costs
- Depend on mode of transport, type of product and size.