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Steven Brown
Logistics defined
O OK……what do we mean by “logistics”?
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Logistics Activities
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Order Management
O Setting Logistics customer service goals
O Backorders
O Availability
O Order Lead Time
O Reliability
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Transportation Management
O The importance of intermodal
transportation
O Freight rates
O Carrier selection
O Routing and Scheduling
O Monitoring performance
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What is Order Fulfillment?
It is not just about filling orders!
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
Strategic Sub-Processes
Order Fulfillment Processes Interfaces Operational Sub-processes
Customer Relationship
Review Marketing Management Communicate and
Strategy, Supply Chain Generate Order
Structure & Customer
Service Goals Supplier Relationship
Management Enter Order
Customer Service
Define Requirements Management Process Order
for Order Fulfillment
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 109.
Order Fulfillment
O Order cycle time considers both:
O Inventory
O Processes
O Drop shipping
O 3PLs
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Planning the Logistics Network
O How many distribution centers are needed
and where?
O Do I “make” or “buy”?
O What are the right inventory policies to
balance customer service and cost?
O What are the right transportation services
to balance customer service and cost?
O What material handling equipment should
be used?
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Supply Chain Designer Software SITES
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Supply Chain Designer Software SOLUTION
All Product
Flows
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Developing a Logistics Strategy
O “A strong marketing strategy will win
customers the first time but a good logistics
strategy will keep those customers for the
long term.”
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Developing a Logistics Strategy
O Process-oriented strategy
O Information-oriented strategy
O A mix of the two
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How Order Fulfillment Affects EVA ®
Sales
Obtain repeat business
Increase sales volume
Gross Increase share of market and/or customer
Margin
– Retain and strengthen relationships with profitable
CGS
Profit from
customers
Operations
O Number of touches.
O On-time delivery.
O Order completeness.
O Perfect orders.
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Current and Future Concerns
O US infrastructure
O US port capacity
O Increased use of 3PLs
O Legal security of e-logistics contracts
O Physical security of goods en route
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