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Supply Chain Management 02 - Logistics

What is Logistics?
Logistics Networks
Warehousing

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Supply Chain Management 02 - Logistics

  1. 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. 2. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Supply-Chain Strategies Supply-Chain Strategies
  3. 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. 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. 5. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org We may add ... ● Monitor and improve your suppliers’ network suppliers’ network!
  6. 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. 7. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org What is Logistics? What is Logistics?
  8. 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. 9. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Transportation Transportation
  10. 10. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Modes of Transportation ● Ground ● Air ● Sea
  11. 11. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Ground Transportation Ground Transportation
  12. 12. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Characteristics of Ground Transportation ● Accessibility ● Speed ● Reliability ● Flexibility
  13. 13. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Types of Vehicles ● City trucks
  14. 14. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Types of Vehicles ● Line-Haul (40 foot and 53 foot trailers)
  15. 15. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Types of Vehicles ● Special vehicles
  16. 16. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Types of Vehicles ● And others ...
  17. 17. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Motor Freight Terminals ● Pickup and delivery ● Cross-dock terminals ● Break-bulk terminals ● Relay terminals
  18. 18. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  19. 19. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  20. 20. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  21. 21. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  22. 22. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  23. 23. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  24. 24. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Containers on a Train Containers on a Train
  25. 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. 26. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Air Transportation
  27. 27. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org 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. 28. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Types of Equipment ● All cargo – Extra-large planes – Wide body – Narrow body ● Belly cargo – Existing airliners – Smaller loads – maybe a few containers
  29. 29. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org What is intermodal? What is intermodal?
  30. 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. 31. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Warehousing Warehousing
  32. 32. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Why do we need Warehousing? ● Consolidate our supplies – Efficient – Risk pooling – Service level ● Consolidate distribution – Same avantages
  33. 33. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Functions of Warehouses ● Movement facilitation ● Storage ● Information
  34. 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. 35. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  36. 36. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org
  37. 37. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Assignment #2 Assignment #2
  38. 38. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org Design a Logistics Network
  39. 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. 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. 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. 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. 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. 44. Supply Chain Management Mohammad Tawfik #AcademyOfKnowledge http://SCM.AcademyOfKnowledge.org References References
  45. 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. 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. 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. 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. 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

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