Professional Documents
Culture Documents
Organisation
Learning Objectives
Understand the relationship between
Figure 2-1
Contemporary Supply Chain Pipeline
What is Logistics?:
Value-Added Role of Logistics
Most commonly referred to in terms of
economic utilities:
Scope of logistics
This speed & reliability in distribution of products & services
Operations/Manufacturing
Logistics Interfaces with Marketing
Logistics Interfaces with Other Areas
On the Line:
Toyota Distribution
Moves more than 8 million parts and accessories
every month.
Computer modeling re-designed the 30 year old
distribution network.
Software looked first at Lexus Division and then
at the entire network.
Resulted in two DCs, one in California, another in
Kentucky, feeding nine smaller DCs located
around the country.
The new network both improved customer
service and lowered costs.
Rail
Motor
$ 3.00
$ 4.20
Inventory
5.00
3.75
Packaging
4.50
3.20
Warehousing
1.50
.75
Cost of Lost
Sales
2.00
1.00
Transportation
Total Cost
$ 15.00
$ 13.00