Logistics Planning Overview

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PART TWO Planning for logistics

Logistics planning six overview

Introduction

The need for a positive approach to planning was discussed in Chapter two, together with the concept of a logistics planning hierarchy. In this chapter a generalized approach to corporate strategic planning is outlined, and this is linked to a specific logistics design strategy. The main elements of this design strategy are described. Finally, some of the fundamental influences on logistics network planning and design are detailed, in particular, product characteristics, the product life cycle, packaging and unit loads.

Pressures for change

Corporate strategic planning overview

Planning for logistics

Logistics design strategy

Planning for logistics

Key logistics design factors

Volume-to-weight ratio

Planning for logistics

Value-to-weight ratio

Substitutability

High-risk products

The product life cycle

Packaging

Unit loads

Logistics processes

The importance of logistics processes

Planning for logistics

Functional process problems

Cross-functional process problems

Logistics process types and categories

Planning for logistics

Process categorization

An approach to process design and redesign

Tools and techniques

Planning for logistics

Supply chain segmentation

Product segmentation

Demand and supply segmentation

Planning for logistics

Marketing segmentation

Combined segmentation frameworks

Two-tier supply chains

Implementation

Planning for logistics

Logistics costs and trade-off analysis

The role of distribution centers and warehouses

Planning for logistics

Cost relationships.

Storage and warehousing costs.

Planning for logistics.

Road transport costs.

Inventory-holding costs

Information system costs

Total logistics costs

Planning for logistics

Trade-off analysis

Logistics network ten planning

A planned approach or methodology

Initial analysis and option definition

Two. Internal factors

Planning for logistics

Five. Customer service analysis

Six and Seven. Determine logistics objectives and options

Logistics modeling: logistics options analysis

Planning for logistics

Nine. Sourcing models

Ten. Distribution centre location modelling

Planning for logistics

Eleven. Determine base case

Twelve. Analyse, cost and compare options

Evaluate results, develop implementation plan

Planning for logistics

Fourteen. Implementation

Logistics management and organization

Logistics relationships with other corporate functions

Logistics organizational structures

Organizational integration

Planning for logistics

The role of the logistics or distribution manager

More detailed points for each of these three elements include:

Planning for logistics

Three Improving the effectiveness of the logistics operation:

Traditionally, the three main operational areas of responsibility are related to:

Payment systems

Omnichannel fulfilment

Issues

Planning for logistics. In addition, direct-to-consumer orders normally need to be individually packed ready for home delivery.

Food retailing

Planning for logistics

Non-food retailing

Planning for logistics

Implementation

Manufacturing logistics

Typology of operations

Planning for logistics

Manufacturing process types

Service process types

Production facilities and layouts

Operations management performance objectives

Push and pull systems

Dependent and independent demand

Just-in-time

Elimination of wasted time

Movement through the manufacturing process

Kanban

Right first time

Finished product stocks

Material requirements planning

Planning for logistics

The following is a simple explanation of the basic structure of an MRP system.

The bill of requirements

Planning for logistics

Opening stock

Opening capacity

Manufacturing resource planning (MRPII) and further developments

Planning for logistics

Flexible fulfilment (postponement)

The effects on distribution activities

Additive manufacturing

Impact on supply chains

Shorter lead times

Reduced supply risk

Sustainability gains

Extended product lifecycle

Faster innovation

Overview

This chapter emphasizes the necessity of integrating logistics planning within corporate strategic frameworks. It explores various pressures affecting logistics systems and provides a structured approach to developing a logistics strategy that aligns with overall business objectives.

Key Points

1A holistic approach to logistics planning is essential to avoid sub-optimization of logistics activities
2External pressures include technological advances, regulatory changes, and evolving customer service demands
3PESTEL analysis is a crucial method for evaluating external influences on logistics strategies
4The competitive strategy adopted by a company significantly impacts its logistics structure
5Effective logistics design strategies are critical for aligning with corporate goals and enhancing operational efficiency.

Details

Category: Business and Finance

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