Chapter 3 Role of logistics in supply chain

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Mind Map on Chapter 3 Role of logistics in supply chain, created by Scarlette Mena on 14/03/2019.
Scarlette  Mena
Mind Map by Scarlette Mena, updated more than 1 year ago
Scarlette  Mena
Created by Scarlette Mena about 5 years ago
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Resource summary

Chapter 3 Role of logistics in supply chain
  1. Chapter 11 Transportation: Managing the flow of suply chain
    1. TRANSPORTATION
      1. In few words: is the art of movement of people or goods between original & final destination
        1. Has a major economic impact on the financial performance of business
          1. With efficient , effective transportation can build global supply chains
            1. It must have: availability, capacity & cost that those affect the number, location to supply
              1. Them capabilities must align with the company's goals
                1. Efficiency promotes supply chain competitiveness
                  1. It will be affected by governmental like requirements that afeect cost structures &service capabilities
                    1. In USA government regulation of transportation has focused on copetition and pricing.
                      1. Environmental sustainability is also addressed by government regulations
                        1. The approach in customs in the United States is directed to health, safety and terrerismo while in Mexico the customs are concerned about raising money
                          1. Mode of transportation
                            1. Truck
                              1. Rail
                                1. Air
                                  1. Pipeline
                                    1. Plane
                                      1. Railroads
                                        1. Most economic structure
                                      2. Provide the most economical form of transportation
                                        1. Liquids & gases
                                        2. Expensive and emergency mode
                                      3. Economic structure
                                      4. Water
                                        1. Is a high variable cost business
                                          1. Ocean transportation of goods is not cheaper.
                                      5. Hire carriers
                                        1. Truckload (TL)
                                          1. 15,000 pounds or more
                                          2. Less than truckload (LTL)
                                            1. 150 pounds to 15,000 pounds
                                            2. Small packeging carriers
                                              1. 150 punds
                                            3. Intermodal trasportaations
                                              1. Refers to the use of two or more carriers of different modes
                                              2. Terms of sales
                                                1. Clarify the delivery & payment terms agreed upon a seller & a buyer
                                                  1. INCOTERMS
                                                    1. International transactions
                                                      1. FOB
                                                        1. EX WORKS
                                                          1. FCA
                                                            1. CIP
                                                              1. CIF
                                                                1. DAP
                                                                  1. DAT
                                                                    1. CPT
                                                                      1. DDP
                                                                        1. FAS
                                                                    2. Transit time
                                                                      1. adventage
                                                                        1. Air transportations is very fast
                                                                        2. disadventage
                                                                          1. Nonetheless water, pipeline and rail are extremely slow
                                                                        3. Modal capacities
                                                                          1. Must be matched to the total weight and dimensions of shipments
                                                                          2. Rate negociation
                                                                            1. These negociation focus on developing contracts with carriers for a tailored set a transportations services & rates that fairly compensated the carriers
                                                                            2. Shipment preparation
                                                                              1. Set in mention by request, replenishment signal or preschedule order.
                                                                                1. Maintain a trasportation routing guide
                                                                                  1. Are simple 1 or 2 page online documents that plainly state shipment requirements
                                                                              2. Freight documentation
                                                                                1. Bill of landing
                                                                                  1. Is the most important transportation document
                                                                                    1. It's create by the shipper of the goods to originate the shipment
                                                                                  2. Freight bill
                                                                                    1. Carrier's invoice
                                                                                    2. Claims form
                                                                                      1. Monetary loss
                                                                                  3. Clames of damage
                                                                                    1. Natural disaster
                                                                                      1. Miliraty attack
                                                                                        1. Act of public authority
                                                                                          1. Act of the shipper
                                                                                            1. Inherent act of goods
                                                                                            2. KPI's
                                                                                              1. Key performance indicators
                                                                                                1. Are objective measures of carrier of private fleet performance that are linked to supply chain sucess
                                                                                              2. contemporary supply chain profile
                                                                                                1. Supplier
                                                                                                  1. Manufacture
                                                                                                    1. Wholesaler
                                                                                                      1. retailer
                                                                                                        1. Customer
                                                                                                2. The challenge
                                                                                                  1. Is to manage the entire logistics system in such a way in order to full meets and exceeds custmer expectations
                                                                                                  2. Good logistics is business power: it means that logistics helps to build costumer loyalty
                                                                                                    1. Logistics management
                                                                                                      1. The art and science of management, engineering and technical activities concerned with requirements, desing and suplying and maintaining resources to support activies, plans & operations.
                                                                                                        1. Physical distribution
                                                                                                          1. This had a focus on the outbound side of the logistics systems (is like plan to market
                                                                                                          2. Business sector
                                                                                                            1. Inbound logistics
                                                                                                              1. materials management to support manufacturing
                                                                                                              2. Outbound logistics
                                                                                                                1. Plan distribution to support marketing
                                                                                                                2. Business logistics
                                                                                                                  1. Military logistic
                                                                                                                    1. Event logistic
                                                                                                                      1. service logistic
                                                                                                                        1. There are: The aqcquisitions, scheduling & management of facilities.
                                                                                                                  2. Value added roles of logistics
                                                                                                                    1. 1. Form utility
                                                                                                                      1. 2. Place utility
                                                                                                                        1. 3. Time utility
                                                                                                                          1. 4. Quantity utility
                                                                                                                            1. 5. Possesion utility
                                                                                                                3. Logistics activities
                                                                                                                  1. Transportation
                                                                                                                    1. Warehousing & storage
                                                                                                                      1. Packing
                                                                                                                        1. Inventory control
                                                                                                                          1. Procurement
                                                                                                                            1. customer service
                                                                                                                              1. Facility locations
                                                                                                                                1. Order fulfillment
                                                                                                                    2. Major cost categories
                                                                                                                      1. Warehousing and inventory cost
                                                                                                                        1. Transportation cost
                                                                                                                          1. Inventory cost is the is the expenses associated with holding goods in storage
                                                                                                                        2. The largest cost categories
                                                                                                                          1. Transportation
                                                                                                                            1. Inventory cost
                                                                                                                        3. Logistic in the economy
                                                                                                                          1. If more goods & service are produced, total logistic cost will increase
                                                                                                                          2. Interfaces with:
                                                                                                                            1. Operations
                                                                                                                              1. Cost reduction
                                                                                                                              2. Other areas
                                                                                                                                1. Like Finance area & accounting
                                                                                                                                2. Marketing
                                                                                                                                  1. 4'P
                                                                                                                                3. Order cycle
                                                                                                                                  1. Is the time that elapses from when a customer place an order until the order is received
                                                                                                                                  2. Dollar value
                                                                                                                                    1. Affects
                                                                                                                                      1. Warehousing
                                                                                                                                        1. Inventory
                                                                                                                                          1. Transportation
                                                                                                                                    2. Spatial relantioship
                                                                                                                                      1. The location of fixed points of the logistic sistem with respect to demand and suplly points (ass lots of examples on the class)
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