How Can Design for Logistic Concepts Be Used to Control Logistic Cost and Make the Supply Chain More Efficient?

2 Reduced waste: With improved systems there would be reduction in waste and fewer defects in the products. This will help in adding to the profits. Logistical improvements will help in better organisation of physical space required and viable transportation and reduction in the waiting times for the materials required, thus giving lesser room for wasting time.

The network design process is used to formulate decisions concerning various aspects of logistics networks (Croxton & Zinn, 2005). Efficient logistics networks are essential for transporting people and goods in the 21st century. In this regard, Katsioloudis (2009) advises that, "Transportation networks facilitate the movements of goods and people to markets and are essential for the prosperity of a society and the competitiveness of an economy" (p. 7). Designing a logistics network in general is a major component of successful material handling. For instance, according to Cheong, Bhatnagar and Graves (2007), "Designing a logistics network that maximizes the utilization of the transport and warehouse capacity in

A supply chain is a net work of firms. Thus, each firm in the chain should build its own supply chains to support the competitive priorities of its services or products. Two distinct designs used to competitive advantage are efficient supply chains and responsive supply chains. Efficient supply chains work best in environments where demand is highly predictable. The focus of the supply chain is on efficient flows of services and materials keeping inventories to a minimum. The firm’s competitive priorities are low-cost operations, consistent quality, and on-time delivery. Responsive supply chains designed to react quickly in order to hedge against uncertainties in demand. Work best when firms offer a great variety of services or products and demand predictability is low. Typical competitive priorities are development speed, fast delivery times, customization, variety, volume flexibility, and top quality. Tables below show the environments and design features that best suit each design.

17. The marked increase in product offerings, which allows for more customer choice, creates logistical challenges in terms of identification, storage and tracking. Another interface involves the amount of particular SKUs to hold. Marketers often prefer to carry higher quantities of particular items because this reduces the likelihood of stockouts. Product design is often the purview of marketers and can also have important implications for logistical effectiveness and efficiency.

In a typical supply chain, raw materials are procured and items are produced at one

Our Supply Chain Consultant will work with client organizations to improve their supply chain and logistics performance, reducing their cost structure and\or improving their capabilities. These improvements are realized through initiatives involving strategic planning, process re-engineering, and/or information technology implementation. Our Consultant will execute a wide range of projects which include: logistics network design, facility (plant or warehouse) rationalization, plant and warehouse design, operational assessment, technology/software selection and solution implementation. Typical project tasks will include data gathering, data analysis, process mapping, defining requirements, current situation or baseline establishment, alternative scenario creation and analysis.

In addition, I would design a strategic transportation plan that coordinates inbound and outbound shipments to reduce transportation costs and improve service levels. The warehouse will be designed

Because the product was leaving the warehouse and getting to stores quicker, I was able to reduce the storage space which was an initial problem so the increase of costs because of it decreased. The stores showed a moderate increase in profit.

Proximity to raw materials gives benefits on distribution channel which is already organized by formers. This also gives an added advantage in reducing transportation costs

The manufacturing cost can be lower as the rearrangement of the production line to meet urgent order can be minimize or even eliminated.

(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.

These forecasts were critical to the success of the company's refocused financial strategy. To accomplish this, there was high priority and core interest to align the master production schedule through the improvement of the demand planning process. This included the Redesign Project which among other things focused on the implementation of a decision support system (DSS) to create a more accurate MPS that can be published more frequently.

From a logistics perspective is designed in such a way that the organizational design reveals the relevancy, responsiveness and

SCM can be divided into three main groups: purchase, manufacture, and transport (Thomas et al., 1996). The focus is on transportation. There are different modes of transportation. These modes of transportation fall under three basic types and they are: land (road, rail and pipelines), water (shipping) and air. Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods for the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost and maximize service to the customers that constitutes the concept of business logistics. The system, once it’s put in place, must be effectively managed (Fair & Williams, 1981). What are the advantages and disadvantages of these modes of transportation in logistics?

Because transportation and inventory cost can be generously significant, logistic approaches are necessary for the success of a company. Dell Inc. manages its own warehousing which takes place in its numerous facilities across the world.