Logistics Management

David B. Grant

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney
Auckland • Singapore • Hong Kong • Tokyo • Seoul • Taipei • New Delhi
Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
 Contents

Preface xi
About the author xiii
Acknowledgements xiv

1 Introduction to logistics and supply chain management 1

Key objectives 1
Definitions of logistics and supply chain management 2
The evolution of logistics 4
The importance of logistics to the economy 6
Logistics activities 8
An integrated and systems approach in the firm 9
Trends in logistics 9
Summary 13
Discussion questions 13
Suggested reading 14
Notes 14

2 Logistics customer service 16

Key objectives 16
The concept of customer service 17
Elements of logistics customer service 18
The relationship between logistics and marketing 21
Logistics activities as services 22
Logistics satisfaction and service quality 23
Logistics relationships 24
Approaches to logistics customer service strategy 27
Summary 32
Discussion questions 32
Suggested reading • 33
Notes 34

3 Purchasing and procurement 35

Key objectives 35
The nature of purchasing and the development of procurement 35
The purchasing process 39
Purchasing costs and total cost of ownership (TCO) 41
Supplier appraisal, development and relationships 43
Global and ethical sourcing 47
Vendor-managed inventory and supplier-managed inventory 49
E-procurement 50

vii
Contents

Summary 52
Discussion questions 52
Suggested reading 53
Notes / 53

4 Transportation 55
Key objectives 55
The nature of the freight transport sector 55
Modes of freight transport 60
Carrier and mode choices 67
Third-party transportation 68
Outsourcing and third-party logistics service providers 71
Summary 74
Discussion questions 75
Suggested reading 75
Notes 76

5 Warehousing 78
Key objectives 78
The nature of warehousing 79
Inside the warehouse 83
Technology and warehouse management systems 89
Warehouse location 91
Summary 93
Discussion questions ^ 94
Suggested reading 94
Notes 95

6 Inventory management 96
Key objectives ' 96
The nature of inventory 97
The inventory cycle and replenishment 100
The cost of inventory 101
Inventory management 103
Informal inventory management methods 105
Statistical methods 106
Forecasting 110
Summary 113
Discussion questions 113
Suggested reading 114
Notes 114

7 Operations and materials management 116

Key objectives 116
The background of Harley-Davidson 117
What is a manufacturing facility or factory? 118
Operations and materials handling planning approaches 121
Just-in-time (JIT) and total quality management (TQM) 125

VIM
 Contents

Lean, agile and'leagile' . 129

The outlook for Harley 132
Summary 133
Discussion questions 133
Suggested reading 133
Notes 134

8 Logistics information technology 135

Key objectives 135
Logistics information technology systems 136
Electronic data interchange 141
Quick response (QR) codes 143
Cloud computing 144
IT and retail replenishment 145
Summary 148
Discussion questions 149
Suggested reading 149
Notes 150

9 Logistics financial performance 151

Key objectives 151
Logistics and supply chain management versus firm performance 152
Logistics, supply chain management and economics 154
Models of logistics performance 157
Logistics and supply chain financial performance 160
%
Summary 170
Discussion questions 171
Suggested reading 171
Notes 172

10 Human resources and logistics 174

Key objectives 174
Organisation of the supply chain 174
Organisation of the firm 176
Human resources in logistics 181
Logistics skills 184
A shift in roles to knowledge work 186
Human resources and technology 187
Retail replenishment: an example 189
Gender issues in logistics 191
Summary 192
Discussion questions 192
Suggested reading 193
Notes 193

11 Global logistics 195

Key objectives 195
The nature of international and global trade 195
The why and how of going global 198

ix
Contents

Features of international and global logistics activities 200

Logistics characteristics in international markets 206
Summary 215
Discussion questions 216
Suggested reading 216
Notes 217

12 Reverse and sustainable logistics 219

Key objectives 219
Reverse logistics and product recovery management 220
The science behind a sustainable environment 227
Green or sustainable logistics and supply chains 232
Transportation and storage in a wider environmental context 233
Suggestions for greening logistics and the supply chain 235
Summary 237
Discussion questions 238
Suggested reading 238
Notes 239

13 Logistics strategy 241

Key objectives 241
What is business strategy? 242
The language of strategy 242
Strategic planning 243
Logistics and corporate strategy 248
Logistics and supply chain risk and resilience 256
Summary 259
Discussion questions 259
Suggested reading 259
Notes 260

Glossary 262
Index 275

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