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Direct Shipment Cross Docking Motor Carrier LTL Railroad

The document discusses key aspects of supply chain execution including distribution network configuration, distribution strategy, trade-offs in logistical activities, information integration, inventory management, and cash flow management. Effective supply chain execution requires coordination across these areas to optimize total logistics costs while meeting customer needs. Trade-offs must be considered systematically to develop the most efficient supply chain strategy.

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82 views1 page

Direct Shipment Cross Docking Motor Carrier LTL Railroad

The document discusses key aspects of supply chain execution including distribution network configuration, distribution strategy, trade-offs in logistical activities, information integration, inventory management, and cash flow management. Effective supply chain execution requires coordination across these areas to optimize total logistics costs while meeting customer needs. Trade-offs must be considered systematically to develop the most efficient supply chain strategy.

Uploaded by

h_badgujar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Distribution Network Configuration: number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks

and customers. Distribution Strategy: questions of operating control (centralized, decentralized or shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL). Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy. Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc. Inventory Management: Quantity and location of inventory, including raw materials, work-in-process (WIP) and finished goods. Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain.

Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional.

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