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the handbook of logistics and distribution management understanding the supply chain pdfA concise, applied and strategi Different approaches to cost and performance monitoring What to measure against. A logistics operational planning and control system Good practice Influencing factors Detailed metrics and KPIs The presentation of metrics Summary 39 Benchmarking Introduction Why should an organization engage in benchmarking.No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or the authors. First published in Great Britain and the United States in 1989 by Kogan Page Limited Second edition 2000 Third edition 2006 Fourth edition 2010 Fifth edition 2014 Sixth edition 2017 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. ISBN 978 0 7494 7677 9 E-ISBN 978 0 7494 7678 6 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. The liner used to secure the grain inside the container can be clearly seen?500 28.13 A loaded splitter trailer?501 28.14 Two locomotives, USA?507 28.15 Double-decked rail cars loaded with new cars being towed by a converted road vehicle?508 28.16 Trees being unloaded from rail wagons at a paper mill in Finland?510 29.1 An articulated vehicle comprising a tractor and box semi-trailer. Note the skirts on the bottom of the truck to improve fuel consumption?515 29.2 A four-wheeled rigid vehicle fitted with a refrigerated body?515 29.3 A double-bottomed articulated vehicle in Jebel Ali port, UAE?517 29.4 A 6?http://weldingplaza.com/files/bowflex-xtreme-parts-manual.xml
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2 rigid vehicle towing a triaxle semi-trailer by means of a tandem axled bogie fitted with a fifth wheel coupling. Both vehicle and trailer are fitted with refrigerated bodies. Note the fact that the vehicle is tipping one container to the side and the other container to the rear of the vehicle?531 29.15 A triaxle Feldbinder bottom discharge tanker. The load is being lifted and manoeuvred into position by a four-way gantry lift system with a total lifting capacity of 360 tonnes. The milling machine had to be accurately located on to 30 bolts?606 33.3 Project logistics: a gas turbine skid weighing 137 tonnes being unloaded from a ship. The ship’s cranes are not able to accommodate such a heavy load. The two mobile cranes both have a lifting capacity of 500 tonnes. The load is being transferred to a Goldhofer trailer with 12 hydraulic axle lines coupled to a MAN prime mover for the road journey. He studied for an MSc in Transport Studies at Cranfield University and then joined the National Materials Handling Centre, initially to carry out research into urban delivery problems and goods consolidation. He was a Senior Consultant with the Centre for many years, undertaking a variety of consultancy projects, specializing in transport and logistics systems and strategies. After helping to create the Distribution Studies Unit (DSU) at Cranfield, he became the Director of Studies for the M.Sc. in Distribution Technology and Management, and Head of the DSU. With the creation of the Cranfield Centre for Logistics and Transportation (later the Cranfield Centre for Logistics and Supply Chain Management, CLSCM) he became the Director of Graduate Programmes for the new Centre where he set up and, for many years, ran the Executive M.Sc. in Logistics and Supply Chain Management. He became the Director of eLearning for CLSCM and chaired the eLearning Committee for the Cranfield School of Management.http://immigrationcanadanetwork.com/images/bowflex-xtreme-se-home-gym-assembly-manual.xml As well as his research and consultancy experience in transport, distribution, logistics and the supply chain, he has lectured in Europe, the Far East, the Middle East, North America, South America and Africa. He has published widely and co-wrote the original and subsequent editions of The Handbook of Logistics and Distribution Management, which was first published in 1989. He is also co-author of International Logistics and Supply Chain Outsourcing. He has continued to undertake consultancy, both nationally and internationally, and is the Director of Dialog Consultants Ltd, a consultancy specializing in distribution, logistics and supply chain management. Alan is a Fellow of the Chartered Institute of Logistics and Transport. He has 44 years’ experience in the field of logistics and supply chain management, the last 20 years at senior management or board level, working, travelling and living in many different countries. He has worked in many different industries, countries and functions within those industries. On the third-party logistics side he has worked in Express Parcels in the UK, as Managing Director of a Freight Forwarder in Oman, as General Manager of a desert trucking company in Oman, and as Regional Manager for the Middle East responsible for land transport based in Jordan and Dubai. In addition, he has held the post of Group Logistics Director in the paper merchant business in the UK, National Distribution Manager in the food industry and Vice PresidentSupply Chain, responsible for worldwide procurement and logistics movements for a land drilling contractor in the oil and gas industry with operations in Algeria, Qatar, Kingdom of Saudi Arabia, India, and Oman. Although at heart a practitioner, it has not stopped him developing a parallel career in training and academia. He has worked for the Chartered Institute of Logistics and Transport (UK) (CILT) on many projects.https://www.becompta.be/emploi/3m-accuglide-3-manual In 2002 CILT chose him to represent them in China at the inception of a prestigious training contract with the Chinese Government. This was followed by four further two-week trips delivering training in Beijing, Shanghai, Shenzhen and Dalian. He has also delivered training in Taiwan for CILT. More recently (2011) CILT sent him to Somaliland to train United Nations International Children’s Emergency Fund (UNICEF) staff, in 2012 he was sent to Bangkok to train Plan International staff and in 2013 he was sent to Qatar four times for Maersk Oil. He has taught Master’s courses in procurement, supply chain management and operations management. His qualifications include an MSc in Logistics and Distribution Management from Cranfield University, Chartered Fellow of the CILT(UK) and a Professional Diploma in Management from the Open University. He also holds a NEBOSH National General Certificate in Occupational Health and Safety.He became an office manager prior to taking an MSc degree in Distribution Technology and Management at Cranfield University. During his period in consultancy, he has conducted over 100 supply chain projects across a wide range of industries and public sector organizations. He has undertaken projects in many European countries, as well as in North America, the Far East, Central Asia, West Africa and the Middle East. These projects have included supply chain strategy, procurement, international logistics, distribution centre design, inventory control, transport operations and supporting computer systems. He became a Lecturer, Senior Lecturer and then Visiting Fellow, at the Centre for Logistics and Supply Chain Management at Cranfield School of Management, where he completed his PhD on the subject of the role, design and operation of distribution centres in agile supply chains. He has continued his consultancy work during this period. He is a Fellow of both the CILT(UK) and the Higher Education Academy.https://jdlgroup.ca/images/boston-gear-manual.pdf He has published regularly in books, trade journals and academic journals.We also felt that there was a significant gap in the literature for a book that offered a broad strategic framework as well as a clear and straightforward description of the basic functions and elements related to distribution, logistics and supply chain management. In the second edition of the book, published in 2000, we provided a significant revision and expansion of the original text. All of these editions have included new material and have been updated and revised, while the content in many chapters has been expanded. In this new sixth edition we have also re-structured the book slightly by introducing a new section that focuses entirely on logistics outsourcing. We have also re-written several chapters in order to provide a better contextual balance. As a result, several additional chapters have been developed in some of the sections. There is a completely new chapter on international freight forwarding. We discuss key aspects of supply chain philosophy and practice, but have retained the focus on distribution and logistics that was a feature of the first and subsequent editions. We have included a substantial and detailed index, which we know makes the book very attractive to students and practitioners who wish to identify specific subjects for reference. The objectives of the original book remain unchanged: to provide a text with both simplicity of style and relevance of context. As with the previous editions of the book, it has not been possible to cover all of the associated functions in the depth that we might have liked. Shortage of space has necessitated this compromise. Thus, such elements as manufacturing and procurement are featured, but only at a fairly broad level although they are in-depth when there is a relevant interface with distribution and logistics.http://chicagohalo.com/wp-content/plugins/formcraft/file-upload/server/content/files/162742b917793e---brookhaven-zetapals-manual.pdf In addition, it should be noted that we have attempted to reflect the general principles of logistics and distribution that can be applied in any country throughout the world. Clearly, for some aspects, there are differences that can only be generalized with difficulty. Where this is the case we have tended to use the European model or approach as our foundation, but we have included some international material. Within the scope of a book of this size, it is impractical to cover all issues from a world perspective.The logistics industry continues to change radically and to grow in importance. The quality of logistics managers and staff has also developed with the growth in responsibility and scope that a job in logistics entails. We hope, once again, that this book will help in logistics managers’ quest to improve service and reduce cost whilst reducing the environmental impact, as well as keeping them aware of the many different facets of logistics and the supply chain. It should be of interest and use to practising managers and supervisors, to candidates undertaking examinations for the various professional institutes, and to undergraduate and graduate students who are reading for degrees in logistics, distribution, transport and supply chain management or where these subjects are an integral part of their course. It should also provide strong support for those participating in web-based training in logistics. This edition of the book is now divided into seven distinct parts, each covering a key subject area in logistics. These are: 1 Concepts of logistics and distribution; 2 Planning for logistics; 3 Procurement, inventory and demand forecasting; 4 Warehousing and storage; 5 Freight transport; 6 Outsourcing logistics; and 7 Operational management. In Part 1 the key concepts of logistics and distribution are considered. The first chapter of the book provides an introduction to the subject area and some definitions are given.BAHETH24AQARI.COM/ckfinder/userfiles/files/99-mazda-millenia-owners-manual.pdf The main elements and functions are reviewed, together with a brief look at the historical development of distribution and logistics up to the present day. Some statistics are introduced that indicate the importance of logistics to both companies and economies. Chapter 2 concentrates on the integrated nature of logistics and the supply chain. The traditional, but still very relevant, total logistics concept is explained, and typical trade-offs are considered. A planning hierarchy for distribution and logistics is outlined. Finally, in this chapter, some of the main developments towards integration are discussed. PrefaceIntroduction to logistics and distribution Customer service is a major aspect within logistics, and this is considered in Chapter 3. The components of customer service are described, and two models of service quality are introduced. An approach to developing a customer service policy is outlined. The key elements of customer service measurement are reviewed. A method of channel selection is considered. Also, the all-important question is introduced of whether to contract out logistics. The final chapter of this first part of the book, Chapter 5, reviews some of the main issues and challenges for logistics, from external influences to consumer-related developments. Part 2 covers the ways and means of planning for logistics. Chapter 6 begins with an overview of the strategic planning process and then considers a specific logistics design framework. The key logistics processes are described, and then an approach to process design or redesign is proposed. Some of the main tools and techniques are explained. Chapter 8 describes the important area of supply chain segmentation. This is used to ensure that the many different service and cost needs of the marketplace are addressed in a coordinated framework. In Chapter 9 the cost and the service related aspects that are so important to any successful operation are considered.https://www.costaverde.it/wp-content/plugins/formcraft/file-upload/server/content/files/162742ba0bff03---brookhaven-dls-manual.pdf The major part of the chapter is concerned with identifying and representing the various costs of the key logistics elements and illustrating how they can be used for the overall assessment of logistics costs. The concept of logistics trade-off analysis is described. In Chapter 10 a particular approach to logistics network planning is described and developed. This is broken down into a series of key steps, taking the reader from the initial analysis and option definition through the logistics modelling and option analysis to the final analysis of results and implementation. Chapter 11 is concerned with the way in which logistics and distribution are organized within the company. The relationship with other corporate functions is considered. The need to develop more process-oriented organizational structures, rather than maintaining the traditional functional perspective, is proposed. The specific role of the logistics and distribution manager is described. Some payment schemes and mechanisms that are common to the industry are outlined. Chapter 12 looks at omnichannel fulfilment. This chapter considers the issues related to the distribution of goods that have been sold through a number of different sales channels. The final chapter in this part of the book, Chapter 13, is concerned with manufacturing and materials management. Manufacturing is rarely a function that is found directly within the auspices of logistics. It is, however, a major factor within the broader context of the supply chain and is a principal interface with logistics. Thus, some of the key elements in manufacturing and materials management are introduced in this chapter.Chapter 14 covers some of the main principles concerned with the procurement and supply of raw materials and other goods. This is an area within the supply chain that has a significant interface with logistics, so a number of key elements are described. Chapter 15 explores the basic concepts behind the inventory-holding decision.http://www.onekaddy.com/wp-content/plugins/formcraft/file-upload/server/content/files/162742bba76bd0---brookfield-zoo-orangutan-husbandry-manual.pdf The reasons for holding stock are considered, and the different types of stock are outlined. The implications of stockholding on other logistics functions are described, and the use of different inventory replenishment systems is explained. Reorder quantity decisions are discussed, and the economic order quantity (EOQ) method is outlined. Chapter 16 describes some of the recent developments in inventory planning, particularly the way that inventory is viewed across the supply chain as a whole. The important relationship of inventory and time is explored. Chapter 17 is concerned with inventory planning and the use of demand forecasting to help determine the amount of inventory that should be held in the logistics network to meet customer service needs. The main demand forecasting methods are outlined. There is a description of some of the key inventory planning techniques that are used for both manufacturing and retailing. In Part 4 consideration is given to those factors that are concerned with warehousing and storage. Chapter 18 introduces the main warehousing principles and also provides an outline of the main warehouse operations. Palletized storage and handling systems are considered in Chapter 19. Included here are the principles of storage as well as descriptions of the various types of storage systems and storage equipment that are available. Chapter 20 concentrates on the many different nonpalletized handling systems and equipment types that are used. In Chapter 21 order picking, replenishment and packing are reviewed in some detail. In particular, the main principles of order picking are explained, and the various order picking methods are outlined. In Chapter 22 another key warehouse function is considered: receiving and dispatch. The major factors are outlined within the context of overall warehouse operations. An approach to warehouse and distribution centre (DC) design and layout is described in Chapter 23.BAHETH24CARS.COM/ckfinder/userfiles/files/99-mazda-millenia-factory-manual.pdf The methods described here are an essential guide to ensuring that a warehouse or distribution centre is designed to be effective in the light of the logistics operation as a whole. The specialist design aspects required for temperature controlled and dangerous goods warehouses are also described. Chapter 24 explores the operational management of warehouses, the associated performance measures, and the latest information technology available to support these activities. Part 5 concentrates on those areas of logistics and supply chain management specifically related to freight transport. In Chapter 25 international logistics and the choice of transport mode are considered. Initially, the relative importance of the different modes is reviewed. A simple approach for modal choice is then proposed, PrefaceIntroduction to logistics and distribution including operational factors, transport mode characteristics, consignment factors and cost and service requirements. Finally, there is a brief review of some key aspects of international trade. Chapters 26, 27 and 28 provide an overview and description of the major modes of international transport: maritime, air and rail. For each of these, the basic infrastructure of the industry is reviewed, together with a variety of other aspects such as equipment, safety, pricing, security and documentation. In Chapter 28 the use of intermodal transport is also discussed. The remaining chapters in this part of the book are concerned with aspects of road freight transport. Vehicle selection factors are described in Chapter 29. Included here are the main types of vehicle and vehicle body, different types of operation, load types and characteristics along with some of the wider implications of vehicle selection. In Chapter 30 vehicle and fleet costing is considered. The main vehicle costs are indicated: standing, running and overhead costs. Other elements such as whole life costing, zero-based budgets and direct product profitability are described. Chapter 31 concentrates on the planning and resourcing of road freight transport operations. This includes recognition of the different types of road freight transport, key planning and operational requirements, optimization of resources and the main issues concerning vehicle utilization. A major approach to road freight transport planning is the routeing and scheduling of vehicles and this is described in Chapter 32. The main objectives of routeing and scheduling are indicated, and different types of problem are described. The basic characteristics of road transport delivery are discussed, and they are related to broad data requirements. Examples of both manual and computer routeing and scheduling methods are outlined. The final chapter of Part 5 of the book, Chapter 33, considers the key aspects of international freight forwarding. The role of the freight forwarder as an integrator of logistics services is explained. Different types of cargo insurance policies are described and the basic documentation is introduced. Additional specialist services offered by freight forwarders are outlined. Part 6 of the book concentrates on the outsourcing of logistics operations. In Chapter 34 the most common activities that are offered by third-party logistics service providers are outlined. The key categories or types of available services are described. These cover the different approaches that may be considered for warehousing or DC outsourcing and the different attributes of the types of transport service that are available through outsourcing. In Chapter 35 the key decision criteria concerning whether or not to outsource all or part of a logistics operation are discussed. The difference between a dedicated and a multi-user operation is explained. The main content of the chapter concerns the drivers and drawbacks of outsourcing logistics operations. Finally, critical factors of choosing between different service providers are considered.In addition, the main content of a typical contract is outlined. In Chapter 37 the importance of managing an outsourced contract is explained and the key factors required in managing a successful relationship are examined. A formal approach to outsourcing management is outlined. There are several techniques that can be used and these are discussed. The final part of the book, Part 7, considers a number of aspects related to the operational management of logistics and supply chain management. This begins with Chapter 38, where cost and performance monitoring of logistics and distribution operations is discussed. A description of a formal approach to logistics monitoring and control is outlined. Several different means of measurement are introduced, and a number of areas of best practice are considered. Chapter 39 describes the use of benchmarking as a major technique for identifying best practice in logistics. As well as an overview of benchmarking procedures, a detailed approach to benchmarking distribution activities is outlined. There have been, and continue to be, many major advances in information, communication and technology. This chapter serves to provide an overview of some of those elements that are particularly important to logistics and the main components of supply chain management. Many aspects that are relevant to logistics planning and operations are discussed. Another important consideration is the impact of logistics operations on the environment as well as the environmental regulations that impose on logistics operations. These elements are reviewed in Chapter 42 along with environmental management systems, packaging, carbon footprinting, environmental performance measures for transport and distribution activities, reverse logistics and alternative fuels. The final chapter, Chapter 43, looks at humanitarian logistics. The chapter provides an overview of humanitarian logistics and highlights some of the main differences between this field and commercial logistics. Once again, we hope that this new edition of The Handbook of Logistics and Distribution Management will continue to serve as a useful aid to understanding this wide-ranging and increasingly important business area. The main reason that this recognition has only been relatively recent is the nature of logistics itself. It is a function made up of many sub-functions and many subsystems, each of which has been, and may still be, treated as a distinct management operation. Both the academic and the business world now accept that there is a need to adopt a more holistic view of these different operations in order to take into account how they interrelate and interact with one another and to ensure that the overall operation is optimized. The appreciation of the scope and importance of logistics and the supply chain has led to a more scientific approach being adopted towards the subject. This approach has been aimed at the overall concept of the logistics function as a whole but, importantly, includes the interrelationship of the individual subsystems as well. Much of this approach has addressed the need for, and means of, planning logistics and the supply chain, but has necessarily considered some of the major operational issues. This first chapter of the book provides an introduction to some of the very basic aspects of distribution, logistics and the supply chain. Initially there is a review of the scope and definition of distribution, logistics and the supply chain. Next is a discussion of the key elements that are fundamental to the logistic function. A description of the historical growth of distribution and logistics is followed by an assessment of its importance throughout the world. Finally, a typical distribution and logistics structure is described and discussed. 4 Concepts of Logistics and Distribution Scope and definition Parallel to the growth in the importance of distribution, logistics and the supply chain has been the growth in the number of associated names and different definitions that are used. Amongst the many different names can be found: ?? physical distribution; ?? logistics; ?? business logistics; ?? materials management; ?? procurement and supply; ?? product flow; ?? marketing logistics; ?? supply chain management; ?? demand chain management; and there are several more. Every industry has its own characteristics, and for each company in that industry there can be major variations in strategy, size, range of product, market coverage, etc. Logistics is, therefore, a diverse and dynamic function that has to be flexible and has to change according to the various constraints and demands imposed upon it and with respect to the environment in which it works. Thus, these many different terms are used, often interchangeably, in literature and in the business world. One quite widely respected definition also helps to describe one of the key relationships. This includes the supply of raw materials and components as well as the delivery of products to the final customer. It should also be noted that logistics and the supply chain are concerned not only with physical flows and storage from raw material through to the final distribution Introduction to Logistics and Distribution 5 of the finished product, but also with information flows and storage. Indeed, major emphasis is now placed on the importance of information as well as physical flows and storage. There are a multitude of definitions to be found in textbooks and on the internet. Several early definitions referred to the ability of logistics to help create time and place utility for products in the market place. A selection of more recent definitions is: Logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. (Wikipedia, 2016) 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. (Council of Supply Chain Management Professionals, 2016b) 6 Concepts of Logistics and Distribution Logistics is defined as the time-related positioning of resources. An appropriate modern definition that applies to most industries might be that logistics concerns the efficient transfer of goods from the source of supply through the place of manufacture to the point of consumption in a cost-effective way while providing an acceptable service to the customer. This focus on cost-effectiveness and customer service will be a point of emphasis throughout this book. A more critical consideration of the difference between logistics and the supply chain is given at the end of Chapter 2. It is developed using some of the ideas that are discussed in that chapter. For most organizations it is possible to draw up a familiar list of key areas representing the major components of distribution and logistics. These will include transport, warehousing, inventory, packaging and information. Some typical examples are given in Figure 1.2. Figure 1.2?