lnLegraLed LoglsLlcs AcLlvlLles

18 AnuL?
oals of LoglsLlcs sysLem
Provide a Targeted LeveI of Customer Service at
the Least Cost.
Maximize Profits, Not SaIes.
Higher Distribution Costs/
Higher Customer Service
LeveIs
Lower Distribution Costs/
Lower Customer Service
LeveIs
Transportation Modes Transportation Modes
Rail
Nation's Iargest carrier, cost-effective
for shipping buIk products, piggyback
Rail
Nation's Iargest carrier, cost-effective
for shipping buIk products, piggyback
Truck
FIexibIe in routing & time scheduIes, efficient
for short-hauIs of high vaIue goods
Truck
FIexibIe in routing & time scheduIes, efficient
for short-hauIs of high vaIue goods
Water
Low cost for shipping buIky, Iow-vaIue
goods, sIowest form
Water
Low cost for shipping buIky, Iow-vaIue
goods, sIowest form
Pipeline
Ship petroIeum, naturaI gas, and chemicaIs
from sources to markets
Pipeline
Ship petroIeum, naturaI gas, and chemicaIs
from sources to markets
Air
High cost, ideaI when speed is needed or to
ship high-vaIue, Iow-buIk items
Air
High cost, ideaI when speed is needed or to
ship high-vaIue, Iow-buIk items
lnLegraLed LoglsLlcs ManagemenL
Concept Recognizes that Providing Better Customer
Service and Trimming Distribution Costs Requires
Teamwork Teamwork, Both Inside the Company and Among AII
the Marketing ChanneI Organizations.
Cross-FunctionaI Teamwork inside
the Company
Cross-FunctionaI Teamwork inside
the Company
BuiIding ChanneI Partnerships BuiIding ChanneI Partnerships
Third-Party Logistics Third-Party Logistics
lnLegraLlon of rocesses
LoglsLlcs neLwork ueslgn
CosL and Servlce Level
lnformaLlon llow for LoglsLlcs
Lul C8 !l1 and C8
Managlng MaLerlal llow and 1ransporLaLlon
AnLlclpaLlng 8equlremenLs of MaLerlals
Sourclng and rocesslng MaLerlals
lnLroduclng new MaLerlals lnLo Lhe organlzaLlon
MonlLorlng Lhe sLaLus of MaLerlals as a currenL
asseL (lnvenLory)
ecLlves of MaLerlals ManagemenL
Low CosLs
Plgh Servlce Level
CuallLy Assurance
Low Level of 1ledup CaplLal
SupporL of oLher luncLlons