Class Intro 11
From AlexBrownRacing
Distribution Customer Service and Logistics
Factors Affecting Physical Distribution Service Levels (Logistics): Info on Product Availability; Order Processing Time; Backorder Procedures; Inventory Storage; Order Accuracy; Damage in Transit; Online Status Information; Advance Info on Delays; Delivery Time & Reliability; Compliance with Customers; Defect - Free Deliveries; Handling Adjustments / Returns
Use the total cost approach.
Coordinating Logistics Activities: Shifting and Sharing; Just in Time (JIT); Supply Chain
WSJ: Apple Navigates China Maze
WSJ: Reinforcing the Supply Chain
need for dual distribution
Use of EDI and Extranets to manage information throughout the supply chain.
Transportation
Modes: Rail; Water; Truck; Air; Pipeline (Horse ?)
Storage
Helps with time utility; keeps prices steady; allows for production economies of scale; enables channel flexibility
Total inventory costs are: cost of facility for storage; handling costs; cost of inventory damage; cost of risks; cost of oblescance; interest expense and opportunity cost
Private versus Public Storage facilities
WSJ: Amazon Adds That Robotic Touch
