SCMGMT Exam 4

Value adding role of distribution in SCM

Efficient and effective flow of goods and info within DCs and thruout the supply chain

What values can distribution add in SCM

--Enhance customer service
--Balancing supply and demand
--Protecting against uncertainty
--Allowing quantity purchase discounts
--Supporting production requirements
--Fulfilling omni channel demand
--Promoting transportation economies

Define LDC

Local distribution center

Define RDC

Regional Distribution center

Define allocation

DC serves as a collection point for product coming from multiple orgins and provides transfer, storage , or processing services

Sortation

focuses on assembling like products together for storage in the DC

Assortment

Involves the assembly of customer orders for multiple SKUs held in the distribution facility. This mixing capability avoids the expenses related to placing numerous orders and having them shipped from a variety of locations.

What is the largest key distribution challenge and what is the solution

problem: Labor availability issues

Solution: automation and assistive tech

The smaller the DCs the _____ there are

more

define slotting

placement of product in a DC for the purpose of optimizing materials-handling and space efficiency

What happens in the Receiving DC process

Scheduling carriers
Unloading trucks
Inspecting freight
Verifying order

What happens in the picking DC process

--Validating SKU and quantity
--fill customer orders
-- prep and deliver to shipping docks

define blocking and bracing

- securing the freight

define crossdocking

transferring products from suppliers or manufacturers directly to customers, with little to no storage time in between

What are the 5 modes of transport (important)

Air, rail, maritime(water), pipeline, truck

motor carries are most widely used in ____ supply chains

domestic

top issue facing trucking (2023)

Economy

Railroads have ____ fixed cost and _____ variable cost

high,low

what are interline agreements

a legal agreement that allows freight to move between multiple railroads on its way to its destination

Air carries have _____ fixed cost and ____ variable cost

low, high

what are the 3 main reasons we use air transport

speed of delivery
--security
--transporting high cost goods

Water carriers have ____ fixed cost and _____ variable cost

low, high

what is the jones act?

any ship sailing between two US ports has to built in the US,owned by a US company, and manned by a US crew

What oceans does the Panama Canal connect?

Atlantic and Pacific

does the Suez canal have locks

No

Piplines have _____ fixed costs

high

define intermodal

using 2 or modes of transport to move product

allocation

focuses on matching available inventory to customer orders

the more DCs the _____ they are to customers

closer

the closer DCs are to customers the ____ is spent in transportation cost

less

Define the slotting criteria: popularity

locate popular items near the shipping area and the unpopular items away from the shipping area

Define the slotting criteria: size/ cube

locate small items near the shipping area and larger items away

What happens in the replenishment DC process

--Resupplying pick slots
--moving pallet quantity orders to shipping dock
--verifying moves

What happens in the shipping DC process

--Schedule carries
--Load vehicle
--Secure freight
--Complete paperwork
--Blocking and bracing

what is WMS

Warehouse Management System

What are the roles of transport?

--Physical movement of goods between origin and destination '
--Links supply chain partners that are geographically separate
-0Creates time and place utility
--Major economic impact on financial performance
• Efficient transportation increases supply chain
competitiveness
• Influences supply chain design, strategic development and total cost mgmt

motor carriers have _____ fixed cost and ____ variable cost

low, high

what are the 3 motor carrier types

truckload (TL), less than truck load(LTL), parcel

what is the railroads highest fixed cost

railroad maintenance

what are water carries mainly used for
(______ transportation)

international transport

What oceans does the suez canal connect

The Mediterranean Sea with the Red Sea

intermodal helps with cost ______

efficiencies

container _______ is important for use across multiple modes

standardization

Transactional level of partnership

minimal intergration
--- just buy and sell
-like a vending machine

Collaborative level of partnership

--some cooperation
--creating goals in favor of partner

Strategic level of partnership

highest level
-- customized relationship
-creating goals together
-long term

what are the 7 laws of collaborative relationships

1-Real and recognized benefits to all members
2-Dynamic creation measurement and evolution of collaborative partnerships
3-Co buyer and co seller relationships
4-Flexibility and security
5-Collaboration across all stages of business process integration
6-Open integration with other services
7-Collaboration around essential logistics flows

what services do 3PLs provide

-domestic transport
- freight forwarding
-international transport
-customs brokerage
-warehousing
-transport planning and mgmt
-freight bill audit and payment
-crossdocking
-reverse logistics
-SC consulting
-fleet mgmt
-product labing,packing,assembly
-order mgmt and fulfillment

what are the benefits of using 3PLs

reduces logistics costs
-3PL improves services
-innovate logistics effectively