supply chain logistics
logistics is the business function responsible for transporting and delivering products to the right place and at the right time throughout the supply chain
logistics connects with customers which are downstream
logistics connects with suppliers which are upstream
logistics requires large investments of infrastructure such as IT, vehicles, material handling equipment, this is why many choose to outsource to a 3PL
logistics functions include: organizing and managing the distribution network, determining locations of warehouses, centers, and manufacturing plants, coordinating modes of transportation, design and manage of operations through the network for storage and quick movement
business logistics - focuses on the movement and storage of goods throughout the supply chain
military logistics- focused on supporting military need
event logistics- involves organizing and deploying resources in preparation for an event
operations impact- logistics interface closely with ops through planning and the amount of inventory that must be received at various points throughout the supply chain and the timing of those recipients
marketing impact- logistics work to understand customer requirements, as well as storage and delivery needs, product available when needed
packaging impact- significant impact on moving/handling the product, protects items from being damaged
finance impact- logistics is responsible for large capital expenses (transportation, warehousing, inventory) performance can be assessed directly with return on assets and return on investment, no calculations expected
logistics provide SC, with three utilities= place, quantity, and time
reverse logistics- process of moving products UPSTREAM from a customer back towards manufacturers, its non-value added and challenging
logistics tasks- transportation, storage, material handling, packaging, inventory control, order fulfillment, facility location
modes of transportation- truck, water, air, rail, pipeline, multimode
truck- low fixed cost, medium variable cost
water- medium fixed cost, low variable cost
air- high fixed cost, high variable cost
rail- high fixed cost, low variable cost
pipeline- high fixed cost, low variable cost
class 1- revenue greater than 900 million, regulated by surface transportation board, 7 freight companies currently identified, focused on freight rail, account for 68% of rail mileage, 88% of employees, 94% of revenue
class 11 (regional)- revenue greater than 40 mil and less than 900 mill
class 111(local)- revenue is less than 40 mil
TOFC= trailer on railroad flatcar or piggyback
COFC- container on railroad flatcar
international shipping containers- standard length of 20 ft and 40 ft 2 TEU or 1 TEU, 20*88*
domestic shipping containers- generally larger than international shipping containers, length of 48 ft and 53 ft, 53 times 8.6 times 9.6
LTL- less than truckload, freight doesn’t require use of an entire trailer
TL- truckload, sometimes referred to as FTL full truckload, freight shipments that need the entire space or weight limit of a trucks container
CIF- cost, insurance, freight
broker- organization that helps math carriers to fright, adding value for better rates and more time to utilize their capacity and equipment
backhauling- the process of a transportation vehicle returning from the original destination point to point of the origin
deadhead- the return of an empty transportation container to its point of origin
ton mile- a way to measure the transportation of freight, heavily used in rail and ship
over-the-road- motor carrier operation that reflects transporting between cities or states long distance
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