BA 108: DISTRIBUTION

& LOGISTICS
MANAGEMENT

Tim Humangit
November 28, 2013
Agenda for Today’s Session:

-  Checking of Module 1 Quiz
-  Q&A + Module Quiz Mechanics
-  Case 1: Australian Country Choice Food
Group

-  Key Logistics Processes
-  Tools and Techniques
-  Supply Chain Segmentation Frameworks
-  Components of Logistics Planning
Module Quiz Incentive:

-  Group that has the collective highest point
total during a module quiz shall receive +2
points per member added to an
individual’s pt. total
-  In case of a tie, groups shall receive only +
1 point per member added to an
individual’s pt. total
-  At the end of the semester, group that has
the highest average for module quizzes
shall receive a prize
Q&A Mechanics:

-  Each non-presenting group is required to ask
a question to the presenting group
-  Person assigned to ask shall be called in
random
-  During the course of the semester and case
presentations, each member of the group will
be called at least once
-  Only one person per group is to be called per
case (unless otherwise specified)

Q&A Mechanics:

-  Questions provided by student shall serve as
bonus points to module quizzes; however,
questions will be graded according to the ff.
criteria:
-  Question is relevant to topic/case focused on;
insightful and challenging to presenting group and
class: + 2.5 points
-  Question is relevant to topic/case focused on: + 1
point
-  Question is slightly relevant to topic focused on: 0
point
-  Question is irrelevant to case/topic: - 1 point
The Importance of Logistics Processes

-  While functional excellence is essential, total operational
cost effectiveness and fulfillment of customer
requirements come first
-  Eternal presence of functional (and cross-functional) errors:

Process
Re-Design
Logistics Processes

Order Product
Fulfillment NPI
Development

Product Returns Service Parts

The Process Triangle


Process Design


Tools & Techniques

Pareto
Charts

Relationship
Mapping
Tools & Techniques

Matrix
Process

Time-based
Mapping of
Value/Non-
Value Adding
Processes
Tools & Techniques

Fishbone Diagram
Why the need to segment supply chains?


Segmentation Spectrum

Size

Temperature

Bulk

Hazard

Contamination

Pilferable Goods
Throughput vs. Value Segmentation


Demand vs. Supply Segmentation


Combined Segmentation Framework


Duration- Life Cycle

Window- Delivery Lead Time

Volume- Pareto Classification

Variety- SKU Assortment

Variability- Demand
Logistics Network Planning
B. Distribution Cost
A. Distribution
Factors
Centers

Logistics
Network
Planning
D. Logistics Planning
Methodology
-  Initial Analysis
-  Option/Scenario Setting
C. Trade-offs Analysis -  Logistics Modelling
-  Site Considerations
The Role Of Distribution Centers LNP

Reduced Anticipate
Production Costs Seasonal Ticks

Improved Reduced Transportation Order Assembly

Customer Service Costs
Types of Distribution Centers LNP

1.  FG DCs/Warehouse
2.  Territorial Distribution
Centers (NDC, RDC,
LDC)
3.  Trans-Shipment Sites
4.  Seasonal Stock-
holding Sites
5.  Overflow Sites
Cost Relationships LNP
- Storage Costs

Cost Relationships LNP
- Secondary Transport Costs

Cost Relationships LNP
- Total Logistics Cost

Logistics Flow Diagram LNP

Logistics and Distribution LNP
Strategy Planning (LDSP) Framework

Steps To Follow When Planning For LNP
DC Location Study

Logistics Strategy = Business Strategy LNP

Capital Costs Operational Costs

Customer Service