INTR SUPPLY CHAIN: Chapter 9

made by Gemini Thinking

Logistics

The process of planning, implementing, and controlling the efficient flow and storage of goods from origin to consumption.

Inbound Logistics

The movement of goods and materials from suppliers to buyers.

Outbound Logistics

The movement of finished goods from a company to its customers.

Primary Warehouse Functions

Includes receiving, storage, picking (selecting), packing, and shipping.

Picking (Selecting)

The process of withdrawing components from stock to assemble or ship finished goods.

Public Warehouse

A business providing short-term storage (month-to-month) for a fee; comparable to a "hotel".

Contract Warehouse

A variation of warehousing where services are handled on a long-term contract basis (typically 3 years).

Private Warehouse

A storage facility owned by the company that owns the goods; comparable to "buying a house".

Consolidation Warehouse

Receives products from different suppliers and combines them into larger shipments (FTL) for distribution.

Break-Bulk Warehouse

Divides large shipments from a single manufacturer into smaller quantities for local delivery to multiple customers.

Cross-Docking

Unloading materials from incoming vehicles and loading them directly onto outbound vehicles with little to no storage.

Hub-and-Spoke Network

A hybrid network with a centralized hub holding safety stock that feeds geographically dispersed smaller warehouses.

Third Party Logistics (3PL)

An outsourced provider managing all or part of an organization's logistics requirements for a fee.

Fourth Party Logistics (4PL)

An interface that manages multiple logistics service providers (3PLs) for a client company.

Market Positioned Strategy

Placing warehouses close to customers to maximize distribution services and minimize costs.

Product Positioned Strategy

Placing warehouses close to supply sources to consolidate goods before shipping to customers.

Less-Than-Truckload (LTL)

Transportation of small freight that does not require the entire space of a truck; involves many shippers.

Rail Transportation

A slow, high-capacity mode used primarily for heavy, bulky materials over long distances.

Pipeline Transportation

The most reliable mode with the lowest per-unit cost, limited to liquid and gaseous materials.

Air Transportation

The fastest and most expensive mode, ideally for high-value goods with a high cost-to-weight ratio.

Intermodal Transportation

The use of multiple modes of transportation for a single shipment, such as TOFC or COFC.

F.O.B. Origin

The buyer pays freight costs and owns the goods as soon as the carrier accepts them from the seller.

F.O.B. Destination

The seller pays freight costs and owns the goods until they reach the buyer's place of business.

Reverse Logistics

Moving products from the customer back to origin to recapture value or ensure proper disposal.

The Five R's

Refers to Returns, Recalls, Repairs, Repackaging, and Recycling in reverse logistics.