Supply Chain Logistics Management

Supply Chain Logistics Management

• Warehousing - more complex than
other areas of logistics operations
• Traditionally viewed as serving
primarily storage function

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership
Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership
Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
– Service Benefits
• Warehouse Operations
• Warehouse Ownership
Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
• Consolidation and Break-Bulk
• Sorting
• Seasonal Storage
• Reverse Logistics
– Service Benefits
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
• Consolidation and Break-Bulk
• Sorting
• Seasonal Storage
• Reverse Logistics
– Service Benefits
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

Plant
1
Store A
Consolidation
Plant 2 Store B
Warehouse
Store C

Plant
3

Supply Chain Logistics Management

 Store A
Break-Bulk
Plant Store B
Warehouse
Store C

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
• Consolidation and Break-Bulk
• Sorting (cross-docking; in-transit mixing;
sorting/sequencing)
• Seasonal Storage
• Reverse Logistics
– Service Benefits
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

 Sorting by Distribution Center Cross Docking

Plant
1
Store A
Distribution
Plant 2 Store B
Center
Store C

Plant
3

Supply Chain Logistics Management

 Sorting by In-Transit Mixing

Plant Store A
Produci Products 1,
ng 3, 4
Product
1
Plant
Produci Transit Mixing Store B
ng Point4
Product Products 1,
Product 2, 3
2
Plant
Produci Store C
ng Products 1,
Product 2, 4
3

Supply Chain Logistics Management

 Order Assembly by Sorting/Sequencing

Supplier/ Manufacturin
g Plant 1
Vendor of
Compone Components
nt A A,B,C

Supplier/ Manufacturin
Order Assembly
Vendor of g Plant 1
by
Compone Sorting/Sequencin Components
nt B C, B
g
Supplier/
Manufacturin
Vendor of
g Plant 1
Compone
nt C Components
C,B,A

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
• Consolidation and Break-Bulk
• Sorting
• Seasonal Storage
• Reverse Logistics
– Service Benefits
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
• Consolidation and Break-Bulk
• Sorting
• Seasonal Storage
• Reverse Logistics
– Service Benefits
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
– Service Benefits
• Warehouse Operations
• Warehouse Ownership
Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
– Economic Benefits
– Service Benefits
• Spot Stocking
• Full Line Stocking
• Value Added Services
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Management Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership
Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
– Product Handling
– Product Storage
• Warehouse Ownership
Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
– Product Handling
– Product Storage
• Warehouse Ownership
Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
– Product Handling
• Receiving
• In-Storage Handling
• Shipping
– Product Storage
• Warehouse Ownership Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
– Product Handling
– Product Storage
• Warehouse Ownership
Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
– Product Handling
– Product Storage
• Active
• Extended
• Warehouse Ownership Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership
Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
– Private Warehouses
– Public Warehouses
– Contract Warehouses
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
– Private Warehouses
– Public Warehouses
– Contract Warehouses
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
– Private Warehouses
• Control
• Operating Flexibility
• Cost
– Public Warehouses
– Contract Warehouses
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
– Private Warehouses
– Public Warehouses
– Contract Warehouses
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
– Private Warehouses
– Public Warehouses
– Contract Warehouses
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership
Arrangements
• Warehouse Decisions

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Decisions
– Site Selection
– Design
– Size & Expansion Capabilities
– Audit Activities
– Security
– Safety & Maintenance

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Decisions
– Site Selection
– Design
– Size & Expansion Capabilities
– Audit Activities
– Security
– Safety & Maintenance

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Decisions
– Site Selection
– Design
– Size & Expansion Capabilities
– Audit Activities
– Security
– Safety & Maintenance

Supply Chain Logistics Management

• Strategic Warehousing
• Warehouse Operations
• Warehouse Ownership Arrangements
• Warehouse Decisions
– Site Selection
– Design
– Size & Expansion Capabilities
– Audit Activities
– Security
– Safety & Maintenance

Supply Chain Logistics Management

 Warehouse Management Systems (WMS)

Headquarters
Supply Chain
EDI
Sales Info Vendors
Internet
Host / ERP

EDI
Forecasting Internet
Systems

Manufacturing Plant

Advanced
EDI Host / ERP Exchange
Planning Internet OMS Portal
System
EDI
Internet POS
Scanner Data
TMS
Manufacturing
Execution
System Retail Customers
With POS Scanners
RFDC or Barcode EDI EDI RFDC or Pager
Scanner or Pager Internet Internet
or RFDC or RFDC YMS

YMS Transportation
Transportation Warehouse to Customer
Warehouse EDI Warehouse
Manufacturing to Warehouse
(WMS ) Internet (WMS )
RFDC

RFDC RFDC

Scanners

Supply Chain Logistics Management

 Yard Management Systems (YMS)

Headquarters
Supply Chain
EDI
Sales Info Internet
Vendors
Host / ERP

EDI
Forecasting Internet
Systems

Manufacturing Plant
Advanced
EDI Host / ERP Exchange
Planning Internet OMS Portal
System
EDI
Internet POS
Scanner Data
TMS
Manufacturing
Execution
System Retail Customers
With POS Scanners
RFDC or Barcode EDI EDI RFDC or Pager
Scanner or Pager Internet Internet
or RFDC or RFDC

YMS Transportation
YMS
Transportation Warehouse EDI Warehouse Warehouse to Customer
Manufacturing to Warehouse (WMS ) Internet (WMS )
RFDC

RFDC RFDC

Scanners

Supply Chain Logistics Management