CHAPTER 14 Organizing and Analyzing Logistics Systems Learning

CHAPTER 14 Organizing and Analyzing Logistics Systems

Learning Objectives F To examine the problems and opportunities involved in systems analysis F To relate the importance of industry standards to systems analysis F To discuss the steps involved in redesigning a logistics system F To examine a number of organizational alternatives © 2008 Prentice Hall 2

Learning Objectives F To describe a number of techniques for achieving logistics coordination and integration F To distinguish between centralized and decentralized logistics organizations F To distinguish between logistics within the firm and outsourcing logistics activities © 2008 Prentice Hall 3

Logistics Systems: Analysis, Design, and Integration F Key Terms F Key – Benchmarking – Channels audit – Competition audit – Customer audit direct product profitability (DPP) analysis Terms – Environmental sensitivity audit – Existing facilities audit – Integrated service providers © 2008 Prentice Hall 4

Logistics Systems: Analysis, Design, and Integration F Key Terms F Key – Linking-pin organization – Matrix management – Product audit – Simulation – System constraints Terms – Systems analysis – Third-party, or contract, logistics – Unified department organization – Vendor audit © 2008 Prentice Hall 5

What Is Systems Analysis? F Systems analysis refers to the orderly and planned observation of one or more segments in the logistics network or supply chain to determine how well each segment functions © 2008 Prentice Hall 6

General Questions Why do we perform each task? F What value is added by it? F Why are the tasks performed in the order they are? F Can we alter the sequence of the processing steps to increase efficiency? F Why are the tasks performed by a particular group or individual? F Could others perform this task? F Is there a better way for the system to operate? F © 2008 Prentice Hall 7

Problems in Systems Analysis F Multiple business functions are impacted F There are trade-offs among conflicting objectives F Logistics system impacts are difficult to precisely evaluate F There are business issues unique to each logistics system F Quantitative analysis is essential for intelligent decisions © 2008 Prentice Hall 8

Figure 14 -1: A Scoring Checklist Used to Determine Logistics Planning or Strategy Study © 2008 Prentice Hall 9

Partial Systems Analysis F Customer profitability analysis F Warehousing productivity analysis F Transportation cost analysis F Consolidation analysis F Direct product profitability analysis F Benchmarking F Industry standards analysis © 2008 Prentice Hall 10

Logistics System Design F Establishing objectives and constraints F Quality programs F World-class logistics programs F System constraints F Organization of the study team F Data collection © 2008 Prentice Hall 11

Logistics System Design (continued) F Product audit F Existing facilities audit F Vendor audit F Customer audit F Channels audit F Competition audit F Environmental sensitivity audit © 2008 Prentice Hall 12

Figure 14 -7: Flexibility Makes It Easier to Work Together © 2008 Prentice Hall 13

Logistics System Design (continued) F Analysis of the data F Simulation F Design implementation © 2008 Prentice Hall 14

Figure 14 -8: Schematic Drawing of Automated Sorting System © 2008 Prentice Hall 15

Systems Integration: Logistics within the Firm F Dispersion of logistics activities F Achieving coordination F The status quo F The linking-pin concept – Linking-pin organization FA unified department – Unified department organization F Centralized versus decentralized F Matrix management © 2008 Prentice Hall 16

Figure 14 -9: Becton Dickinson’s Worldwide Sources © 2008 Prentice Hall 17

Systems Integration: Logistics Activities Outside the Firm F Third-party, or contract, logistics F Integrated service providers F Monitoring third-party performance © 2008 Prentice Hall 18