Supply Chain Logistics Management Chapter 14 Material Handling

Material Handling Systems • • Mechanized Semi-automated Automated Information directed Supply Chain Logistics Management,

Mechanized Systems • Moderate fixed cost, variable cost and flexibility • Examples – –

Semi-Automated Systems • High fixed, low variable, low flexibility • Examples – – AGVS

Automated Systems • High fixed, lower variable, low flexibility • Examples – Order selection

Information Directed Systems • Moderate fixed and variable cost, high flexibility and utilization •

Packaging Factors Influencing Material Handling • Product characteristics – Cube utilization • Unitization –

Role of Packaging • Consumer packaging (Marketing emphasis) • Industrial packaging (Supply chain emphasis)

INTEGRATED LOGISTICS SERVICES • Mission-Provide services to meet all or significant part of a

Defining Contract Logistics Types and Categories of 3 PL’s • Asset-based • Data-based •

Defining Contract Logistics Drivers of Logistics Outsourcing Debt reduction Strategic focus of. . .

Defining Contract Logistics Advantages Disadvantages • Less asset investment • Switching costs • Lower

Implementation Steps to Outsourcing • Strategic decision to outsource • Determine the first impact

CONCLUSION • Warehouse strategy is evolving to more focused and flexible • Technology and

Slides: 14

Download presentation

Supply Chain Logistics Management Chapter 14: Material Handling and Packaging Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Material Handling Systems • • Mechanized Semi-automated Automated Information directed Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Mechanized Systems • Moderate fixed cost, variable cost and flexibility • Examples – – – – Forklift Walkie-Rider pallet trucks Towlines Tow tractors Conveyors Carousels Pick-to-light Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Semi-Automated Systems • High fixed, low variable, low flexibility • Examples – – AGVS Sortation systems Robotics Live racks Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Automated Systems • High fixed, lower variable, low flexibility • Examples – Order selection systems – ASRS Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Information Directed Systems • Moderate fixed and variable cost, high flexibility and utilization • Examples – PC directed forklifts – RF controls Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Packaging Factors Influencing Material Handling • Product characteristics – Cube utilization • Unitization – Rigid containers (Containers) – Non-rigid containers (Pallets, slipsheets, shrinkwrap) – Flexible containers (Knock down) – Unit load building Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Role of Packaging • Consumer packaging (Marketing emphasis) • Industrial packaging (Supply chain emphasis) – – – Unitization Handling Security Stowability Information Protection Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

INTEGRATED LOGISTICS SERVICES • Mission-Provide services to meet all or significant part of a shipper’s total logistical requirements • Titles-Third party logistics, contract logistics, logistics utilities, and integrated logistics service providers Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Defining Contract Logistics Types and Categories of 3 PL’s • Asset-based • Data-based • Exclusive Service Provider Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Defining Contract Logistics Drivers of Logistics Outsourcing Debt reduction Strategic focus of. . . Investment Rationing Financial resources Human resources Information technology Competition Faster (agility) Better (quality) Cheaper (low cost provider) Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Defining Contract Logistics Advantages Disadvantages • Less asset investment • Switching costs • Lower operating costs • Unseen “hidden” costs • Focus on core competence • Less customer contact • Gain management skills • Dependency • Provide higher service level • Loss of control • Increased flexibility • Entry mode to new markets Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Implementation Steps to Outsourcing • Strategic decision to outsource • Determine the first impact area clearly • Define the objectives of outsourcing activity • Supplier selection process • Contractual issues • Work the project • Review the operating plan and budget • Implementation plan • Frequent feedback - CIP • Partnering Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

CONCLUSION • Warehouse strategy is evolving to more focused and flexible • Technology and expertise are key warehouse alternative determinants • Operating and industry synergies are more important factors Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.