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Transportation & Distribution Planning: Instructor: Sayda Uzma Tahira Uzma - Tahira@ucp - Edu.pk

This document discusses key topics in transportation and distribution planning including: 1. The total logistics concept which involves managing the entire logistics chain as a single entity. 2. Planning for distribution and logistics should follow a hierarchy from strategic to tactical to operational planning and consider major functions and logistics elements for each time horizon. 3. There are cost trade-offs to consider within and between distribution components, company functions, and external organizations. 4. The financial impact of logistics and benefits of integrated logistics management are also covered.

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Arsalan Zahid
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210 views18 pages

Transportation & Distribution Planning: Instructor: Sayda Uzma Tahira Uzma - Tahira@ucp - Edu.pk

This document discusses key topics in transportation and distribution planning including: 1. The total logistics concept which involves managing the entire logistics chain as a single entity. 2. Planning for distribution and logistics should follow a hierarchy from strategic to tactical to operational planning and consider major functions and logistics elements for each time horizon. 3. There are cost trade-offs to consider within and between distribution components, company functions, and external organizations. 4. The financial impact of logistics and benefits of integrated logistics management are also covered.

Uploaded by

Arsalan Zahid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Transportation & Distribution Planning

Lecture 3

Instructor: Sayda Uzma Tahira

uzma.tahira@ucp.edu.pk

UCP Business School, University of Central Punjab Lahore


Learning Objectives

1. The Total Logistics Concept


2. Planning for Distribution and Logistics
3. Financial Impact of Logistics
4. Globalization and Integration
5. Integrated Systems
6. Competitive Advantage through Logistics
7. Development of Supply Chain
Management
Video: Intro to Logistics Integration
The total logistics concept
 System-wide management of entire logistics
chain as a single entity instead of separate
management of individual logistical functions.
 Integrated Logistics a process of planning,
coordinating and arranging the potential
operational activities so as to optimize the
productivity to ensure success.
 With businesses today looking for better
connectivity and collaboration in real-time, the
concept of integrated and smarter logistics have
shaped up in the recent times.
Video Integrated Logistics Management
Cost Trade-Offs in Logistics
 Within distribution components
 Between distribution components
 Between company functions
 Between the company and external
organizations
Cost Trade-Offs in Logistics
 Within distribution components: those
trade-offs that occur within single functions.
 e.g. use random storage locations compared
to fixed storage locations in a depot.
 The first of these provides better storage
utilization but is more difficult for picking;
the second is easier for picking but does not
provide such good storage utilization.
Cost Trade-Offs in Logistics (Cont.)
 Between distribution components:
those trade-offs between the different elements
in distribution.
 To reverse the previous packaging example, a
company might increase the strength and thus
the cost of packaging but find greater savings
through improvements in the warehousing and
storage of the product
 (i.e. block stacking rather than a requirement
for racking).
Cost Trade-Offs in Logistics (Cont.)
 Between company functions:
 An example is the trade-off between
optimizing production run lengths and the
associated warehousing costs of storing the
finished product.
 Long production runs produce lower unit costs
(and thus more cost-effective production) but
mean that more product must be stored for a
longer period (which is less cost-effective for
warehousing).
Cost Trade-Offs in Logistics (Cont.)
 Between the company and external
organizations:
 where a trade-off may be beneficial for two
companies that are associated with each other.
 For example, a change from a manufacturer’s
products being delivered direct to a retailer’s
stores to deliver via the retailer’s distribution
depot network might lead to mutual savings for
the two companies.
Planning for distribution and logistics

Planning should be undertaken


according to a certain hierarchy that
reflects different planning time
horizons. These are generally
classified as
strategic,

tactical and

operational.
Logistics Planning Hierarchy
The major functions of the different planning time
horizons
Main logistics elements for the different
planning time horizons
The planning and control cycle
The financial impact of logistics
Video: Benefits of Integrated Logistics
Management

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