This document discusses concepts in supply chain management. It begins with an introduction to logistics and transportation, including different modes of transportation like ground, air, and sea. It then covers topics like warehousing, intermodal transportation, and strategies for improving supply chain performance. Throughout, different contributors provide comments and suggestions. The document also includes an assignment on designing a logistics network for a cafe business and references various sources for further information.

1. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
AEMN328
Logistics and Transportation
Logistics and Transportation
(Supply Chain Management)
What is Logistics?
What is Logistics?
Mohammad Tawfik

2. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Supply-Chain Strategies
Supply-Chain Strategies

3. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Top 3 Strategies
●
Improve Distribution Network
●
Monitor Cash Flow
●
Establish Information Conduits (channels)
Darren Woollard

4. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
… or 5 Strategies
●
Improve your distribution network
●
Devise a distribution strategy
●
Monitor cash flows
●
Establish information conduits
●
Track your inventory
Track your inventory
Zoe Meeken

5. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
We may add ...
●
Monitor and improve your suppliers’ network
suppliers’ network!

6. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Layers of the Supply Chain
●
Logistics– physical movement of goods
●
Information– shared and private information
●
Financial– cash flow through the supply chain
●
Governance– nature of contracts binding the
supply chain
Udatta Palekar

7. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
What is Logistics?
What is Logistics?

8. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Definition
●
Logistics is defined as the movement and
storage of goods, services, and related
information.

9. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Transportation
Transportation

10. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Modes of Transportation
●
Ground
●
Air
●
Sea

11. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Ground Transportation
Ground Transportation

12. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Characteristics of Ground
Transportation
●
Accessibility
●
Speed
●
Reliability
●
Flexibility

13. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Types of Vehicles
●
City trucks

14. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Types of Vehicles
●
Line-Haul (40 foot and 53 foot trailers)

15. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Types of Vehicles
●
Special vehicles

16. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Types of Vehicles
●
And others ...

17. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Motor Freight Terminals
●
Pickup and delivery
●
Cross-dock terminals
●
Break-bulk terminals
●
Relay terminals

18. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

19. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

20. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

21. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

22. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

23. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

24. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Containers on a Train
Containers on a Train

25. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Advantages
●
On long distances rail transportation has a significant
advantage over truck in terms of fuel efficiency – which
translates into a large cost advantage.
●
On long distances (over 500 miles) rail is not much slower
than truck
●
Accessibility: by combining the advantages of rail and
truck, the freight can reach any spot a regular truck could
reach

26. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Air Transportation

27. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Why?
●
When importance of speed outweighs cost, then air is attractive for
freight!
– Emergency shipments
– Typical commodities include mail, communications products, racehorses,
etc.
●
Speed of service considerations
– Speed, travel time advantage can be off-set by flight frequency and timing
– Smaller communities have experienced reduced frequencies
– In-direct routing due to hub and spoke networks

28. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Types of Equipment
●
All cargo
– Extra-large planes
– Wide body
– Narrow body
●
Belly cargo
– Existing airliners
– Smaller loads – maybe a few containers

29. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
What is intermodal?
What is intermodal?

30. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
What is intermodal?
●
Most products have the ability to trade time versus cost. As
a basic rule - if the cargo comes in full containers then it is a
good candidate for intermodal. The key to intermodal is the
use of containers and its seamless transfer from one mode
to another. Think about it this way – if we can easily move
freight from one truck to another then we can simply
substitute another mode of transportation that is more
efficient on that part of the lane - the cargo in the container
stays untouched.

31. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Warehousing
Warehousing

32. Supply Chain Management
Mohammad Tawfik
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Why do we need Warehousing?
●
Consolidate our supplies
– Efficient
– Risk pooling
– Service level
●
Consolidate distribution
– Same avantages

33. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Functions of Warehouses
●
Movement facilitation
●
Storage
●
Information

34. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Best Practices for Setting Up a
Warehouse
●
Streamline the picking process – reduce order
pick time
●
Implement efficient dock management practices
●
Add automation wisely
●
Maximize vertical space

35. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

36. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org

37. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Assignment #2
Assignment #2

38. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
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Design a Logistics Network

39. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Zeco Cafe - 1
●
Zeco has grown his business. He now runs 10 cafes all-over the city.
●
Each cafe consumes 500 kg of supplies per day
●
In the city, there are three retailers of suppliers each can deliver any
amount of supplies daily at the price of 100 LE/kg
●
Shipping cost from the retailers are 40 LE/km for the shipment of
500 kg
●
He may buy as much supplies as he needs from any of the stores in
multiples of 500 kg

40. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Zeco Cafe - 2
●
There are two warehouses outside the city.
●
Zeco may chose to buy ALL the supplies from ONLY
ONE of them.
●
Warehouse A supplies are priced at 93 LE/kg with
transportation cost of 115 LE/km for 500 kg shipment
●
Warehouse B supplies are priced at 96 LE/kg with
transportation cost of 90 LE/km for 500 kg shipment

41. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
1
2
3
4
10
5
6
9
8
7
A
B
I
II
III
Download the data spreadsheet from this link

42. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Zeco Cafe - 3
1 Calculate the total cost of goods Zeco have to pay if he is going
to buy ALL 5 tons from one of the retailer or warehouses – What
is the min cost and from which retailer/warehouse?
2 If Zeco is going to use different retailers for supplies, which
retailer should supply which store and what will the total cost of
goods be?
3 If Zeco was allowed to buy shipments of 500 kg from
warehouses, which warehouse should supply which store, and
what will the total cost of goods be?

43. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
Zeco Cafe - 4
4 If the warehouses, each, has a net profit of 2%
on the goods price and 5% on the transportation
price. How much should each reduce/increase
their price of goods and/or transportation, while
keeping their costs constant, in order to compete
with the retailers, in the case of 5 ton supplies,
while maximizing their own profits?

44. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
References
References

45. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
References
●
Supply Chain Logistics, Rudolf Leuschner, Ph.D.
https://www.coursera.org/learn/supply-chain-logistics?specialization=supply-
chain-management
●
Supply Chain Operations, Rudolf Leuschner, Ph.D.
https://www.coursera.org/learn/operations?specialization=supply-chain-man
agement
●
Supply Chain Planning, Rudolf Leuschner, Ph.D.
https://www.coursera.org/learn/planning?specialization=supply-chain-manag
ement
●
Supply Chain Sourcing, Rudolf Leuschner, Ph.D.
https://www.coursera.org/learn/sourcing?specialization=supply-chain-manag
ement

46. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
References
●
Supply Chain Management Strategy, Rudolf Leuschner, Ph.D.
https://www.coursera.org/learn/supply-chain-management-strategy
●
Operations Management: Analysis and Improvement Methods, Udatta
Palekar, PhD
https://www.coursera.org/learn/operations-management?specializatio
n=value-chain-management
●
Operations Management: Strategy and Quality Management for the
Digital Age, Udatta Palekar, PhD
https://www.coursera.org/learn/process-improvement?specialization=
value-chain-management

47. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
References
●
“What does a Supply Chain Engineer do?”, StepStone,
https://www.stepstone.be/career-advice/article/supply-chain-engineer/
●
“Supply Chain Engineer job description template”, Hiring Resources,
https://recruitee.com/hiring-resources/job-description-templates/supply-chain-e
ngineer/
●
“What is supply chain management (SCM)?”, TechTarget®
https://searcherp.techtarget.com/definition/supply-chain-management-SCM
●
“Supply chain management”, WikiPedia,
https://en.wikipedia.org/wiki/Supply_chain_management
●
“The three flows of supply chain”, Nifemi Aluko,
https://kpakpakpa.com/spotlight/the-three-flows-of-supply-chain/

48. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
References
●
“Consumer Behaviour, Brand Management, Marketing and Psychology”,
Brandalyzer,
https://brandalyzer.blog/2016/03/23/the-five-major-flows-in-supply-chain/
●
“Top 3 Strategies To Improve The Supply Chain Performance In Your Business”,
Darren Woolard,
https://www.dmg-freight.com/top-3-strategies-to-improve-supply-chain-performance
-in-business/
●
“5 Ways to Increase Supply Chain Performance”, Zoe Meeken,
https://www.business.org/software/supplier/ways-to-increase-supply-chain-perform
ance/
●
“7 Tips for Effective Inventory Management in Global Supply Chain”, TradeGecko,
https://www.tradegecko.com/blog/7-tips-for-effective-inventory-management-in-a-gl
obal-supply-chain

49. Supply Chain Management
Mohammad Tawfik
#AcademyOfKnowledge
http://SCM.AcademyOfKnowledge.org
References
●
“Supply Chain Management: Inventory Management”, Donglei Du
●
“Business-Plan Forecasting”, Steven D. Peterson, Peter E. Jaret, Barbara
Findlay Schenck
●
“Excel Sales Forecasting For Dummies”, Conrad Carlberg
●
“Sales Forecasting: A Practical Guide”, Mark Blessington
●
“Sales and Operations Planning The How-To Handbook”, Thomas F.
Wallace and Robert A Stahl
●
“Introduction to Financial Forecasting in Investment Analysis”, John
Guerard