Logistics Management - Appunti 1-20 PDF

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Logistics Management 1st Lecture – 06.03.2017. Logistics and Supply Chain Management .............................................. 5 Definition of Logistics Management .................................................................................................... 5 Logistics scope Radar Chart ................................................................................................................ 5

2nd Lecture – 08.03.2017. Meaning of Logistics and SC Management ........................................... 6 Process Dimension ............................................................................................................................. 6 System Dimension ............................................................................................................................. 7 Performance Dimension ..................................................................................................................... 8

3rd Lecture – 10.03.2017. .............................................................................................................. 9 Product Dimension............................................................................................................................. 9 Logistics & Strategy ............................................................................................................................ 9 The ROA model .....................................................................................................................................................9 Supply Chain Strategies Model ............................................................................................................................12

4th Lecture – 13.03.2017. Lecture Luxottica ................................................................................ 13 5th Lecture – 15.03.2017. Lecture Barilla + Supply Chain Strategies Model..................................13 6th Lecture – 17.03.2017. Warehouses ........................................................................................ 13 General Overview ............................................................................................................................ 13 Roles and functions .......................................................................................................................... 14 Types ............................................................................................................................................... 14 Activities .......................................................................................................................................... 15 Areas ............................................................................................................................................... 16 Storage area .................................................................................................................................... 16 Design parameters ..............................................................................................................................................16 Descriptive parameters .......................................................................................................................................16 Cost indicators ....................................................................................................................................................16 Typologies of storage systems .............................................................................................................................16 Handling systems ................................................................................................................................................16 Storage systems ..................................................................................................................................................17

7th Lecture – 22.03.2017. PL #1 + Management Policies and Design ........................................... 17 Management Policies ....................................................................................................................... 17 Management of operative cycles ........................................................................................................................17 Allocation Policies ...............................................................................................................................................18

Storage System Design Principles...................................................................................................... 20 Storage System Design Method ........................................................................................................ 20

8th Lecture – 24.03.2017. PL#2 + Automated Warehouses .......................................................... 23 Technical Features ........................................................................................................................... 23 Management Policies ....................................................................................................................... 24 Management of operative cycles ........................................................................................................................24 Class Based Storage.............................................................................................................................................25

Application Fields ............................................................................................................................. 26

9th

Lecture – 27.03.2017. Design of Automated Warehouses + PL#3 ........................................... 26 2

Logistics Management Design Methodology ........................................................................................................................ 26

10th Lecture – 29.03.2017. Order Picking & Assembly ................................................................. 29 Part A – Picking Process .................................................................................................................... 29 Part B – Picking Systems ................................................................................................................... 32 Manual picking ....................................................................................................................................................32

11th Lecture – 31.03.2017. Virtual Visit: Artsana ........................................................................ 34 12th Lecture – 03.04.2017. .......................................................................................................... 34 Picking systems – Manual picking ..................................................................................................... 35 Pic Picking king syste systems ms – A Automa utoma utomated ted pic picking king .................................................................................................. 36

13th Lecture – 05.04.2017. .......................................................................................................... 36 Flexibility ......................................................................................................................................... 37 Part C – Principles of Picking Systems Design & Management ............................................................ 37 Forward Reserve Problem ................................................................................................................ 39

14th Lecture – 07.04.2017. Virtual Visit: Comifar + PL#4.............................................................. 40 15th Lecture – 10.04.2017. Management Policies + PL#5 ............................................................ 40 Management Policies for Picking Systems ......................................................................................... 40 Batching Policies .................................................................................................................................................40 Routing Policies ...................................................................................................................................................41 Storage Policy......................................................................................................................................................43

16th Lecture – 12.04.2017. PL#5 + Transportation ....................................................................... 43 Transportation – General Overview .................................................................................................. 43

17th Lecture – 19.04.2017. Transportation.................................................................................. 45 Road Transportation ........................................................................................................................ 45 Rail Transportation .......................................................................................................................... 46 Water Transportation ...................................................................................................................... 46 Air Transportation ............................................................................................................................ 47 Intermodal Transportation ............................................................................................................... 47 Focus on FTL Road Transportation .................................................................................................... 47 Cost structure .....................................................................................................................................................47

18th Lecture – 21.04.2017. Amazon Innovation........................................................................... 48 19th Lecture – 08.05.2017. Road Transportation – Management Policies.................................... 48 Full Truck Load Optimization ............................................................................................................ 48

20th Lecture – 10.05.2017. Distribution Network Design: Introduction ........................................ 48 Problem Setting ............................................................................................................................... 48 Design Principles .............................................................................................................................. 49 1. 2. 3.

Distribution Problem Profile.......................................................................................................................49 Distribution Network .................................................................................................................................50 Principles of Distribution Network Design ..................................................................................................51

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Logistics Management 21th Lecture – 12.05.2017. Distribution Network Design: Design Principles................................. 51 Examples of distribution networks of Bassetti, 3M and Unilever. ...................................................... 51 Bassetti ...............................................................................................................................................................51 3M (Europe) ........................................................................................................................................................52 Unilever ..............................................................................................................................................................52

Principle #1 ...................................................................................................................................... 52 Principle #2 ...................................................................................................................................... 53 Principle #3 ...................................................................................................................................... 54

22th

Lecture – 15.05.2017. Distribution Network Design: Design Principles................................. 55

Principle #3 ...................................................................................................................................... 55

23th Lecture – 17.05.2017. Distribution Network Design ............................................................. 56 Methodologies and Models .............................................................................................................. 56 Network selection matrixes .................................................................................................................................58 Qualitative Cost Models ......................................................................................................................................60

24th Lecture – 19.05.2017. Distribution Network Design + PL #7 ................................................. 61 Qualitative cost models .................................................................................................................... 61

25th

Lecture – 22.05.2017. Examples on Distribution Network Design ........................................ 64

26th Lecture – 24.05.2017. Distribution Network Design + PL#8 .................................................. 66 Location / Allocation problem .......................................................................................................... 66 Centre of Gravity .................................................................................................................................................67

27th Lecture – 26.05.2017. PL#8 + Distribution Network Design .................................................. 68 Allocation ........................................................................................................................................ 68

28th Lecture – 29.05.2017. eCommerce....................................................................................... 68 Multi-warehouse Location................................................................................................................ 68 Logistics & B2C eCommerce .............................................................................................................. 69

29th Lecture – 31.05.2017. eCommerce + Logistics Outsourcing .................................................. 70 eCommerce ..................................................................................................................................... 70 Logistics Outsourcing ....................................................................................................................... 70

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Logistics Management

1st Lecture – 06.03.2017. Logistics and Supply Chain Management Definition of Logistics Management “Logistics Management is that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements”. CSCMP (Council of Supply Chain Management Professionals)

Logistics scope Radar Chart The four dimensions are: Products, Process (which kind of activities), Performance (KPIs), System (which part of the company). 1st definition: 1967, NCPD. - Products: Finished products; - Performance: Efficiency (cost reduction); - Process: Distribution + warehousing; - System: Outbound logistics (distribution system). It’s a narrow scope of logistics. 2nd definition: 1976, NCPD. - Products: Raw Materials + Work in process + Finished products (physical goods); - Performance: Efficiency; - Process: Planning the execution (not only the execution). Planning means demand, production, inventory, materials requirements planning; - System: Internal Supply Chain of the company (Procurement + Production + Distribution). 3rd definition: 1985, CLM. - Products: Products + Information management; - Performance: Efficiency + Effectiveness (they speak about customers’ needs); - Process: Planning; - System: Internal Supply Chain. 4th definition: 1992, CLM. - Products: Products + Information + Services (logistics is important also in service industries); - Performance: Efficiency + Effectiveness; - Process: Planning; - System: Internal Supply Chain. 5th definition: 2009, CSCMP. - Products: Products + Information + Services (logistics is important also in service industries); - Performance: Efficiency + Effectiveness; - Process: Not only forward, but also reverse flow of goods; - System: Extended Supply Chain (it involves not only the company, but also suppliers and customers). Extensions of the dimensions: Process: Logistics is not only about execution, transportation, warehousing, … It is also about Designing and Planning the logistics system.

The three stacks of Logistics Management Logistics is about three levels: 1. Execution: you must know this dimension. 2. Planning: plan the physical system, distribute inventories, forecast demand. 3. Strategy: take decisions that have impact in the long term. Choose how many warehousing, insourcing vs outsourcing, … Performance: logistics is not only about cost reduction, but there’s also effectiveness and the impact of capitals (fixed + working). 5

Logistics Management System: logistics is a supply chain process, it’s not just the internal supply chain. Product: logistics is not only about physical products sectors, but is also important for services sectors.

2nd Lecture – 08.03.2017. Meaning of Logistics and SC Management

Process Dimension From Execution to Planning & Design/Strategy. We have used the three-layers model:

Example 1

Focus on Execution in this network: what are the main activities? 1. Transportation: means working on the arches. There can be primary and local transportations, which are concentrated in the last part of the supply chain. Moreover, there can be many transportation modes: Point to point, … 6

Logistics Management 2. Warehousing: it involves picking, storage, outflow/inflow, … These are the two main activities, but there can be also: 3. Order management; 4. Physical transformation. In a warehouse, you can have the following activities: assemble, repair, personalize. Postponement: postpone the completion of the goods near to the final market (geography, time, …). Focus on Planning in this Supply Chain. 1. Demand planning: it’s the most important activity. In demand planning you think that demand can be affected by your decisions and activities, such as promotion: it’s wider than demand forecasting. 2. Distribution and Inventory Planning: the amount and existence of inventories depends on how you design your Supply Chain. You have to decide how many inventories and where to place them, also for the safety stocks. 3. Manufacturing and Procurement Planning: where and when to produce, taken the production capacity as given. In the short/medium term we have a lot of constraints. Focus on Design activity: 1. Network Design: decide how many central and local warehouses to have. 2. Make vs Buy decisions: the logistics infrastructures and employees are expensive, so these decisions have a strong impact. 3. Level of Automation: decisions about ICT. 4. Target KPIs: service level, costs, …

System Dimension 1. From functional activities (transportation, warehousing, …) to a process. 2. From internal to external/extended Supply Chain management. Ex...