logistics management: that part of the s.c. management that plans, implements, and controls
the efficient, effective forward and reverse flow and storage of goods / services / related
information between the p.o.o. and the point of consumption
8.1 Why Logistics is Critical
- large impact of logistics on costs, flexibility, and delivery performance of companies
- modern trends in logistics: globalization, advantages in information systems and sustainability
- sustainability: performing activities in a manner that meet the needs of the present without
compromising the ability of future generations to meet their needs
8.2 Logistic Decision Areas
- logistics includes not just physical flows (e.g. delivery of products to a customer) but also information
flows
- in the past 10 years, logistics information systems have seen explosive growth; in many s.c. they
represent the greatest opportunity for improvement in s.c. performance
Tr a n s p o r t a t i o n
- five widely recognized transportation modes:
a) highway: dominates U.S. logistics infrastructure 1; continuous to grow because it is one of the most
flexible modes of transportation
b) water: ideal for materials with a high weight-to-value ratio (and if delivery speed is not critical)
c) air: ideal for materials with a low weight-to-value ratio (and if delivery speed is critical)
d) rail: rail transportation has cost characteristics similar to those of water transportation, but it is
somewhat more flexible
e) pipeline
S e l e c t i n g a Tr a n s p o r t a t i o n M o d e
- firms must carefully select a mode based on their particular competitive / operational requirements
Multimodal Solutions
- few companies / s.c. use just one transportation mode
- many depend on multimodal solutions to get goods from one end of the s.c. to the other
1 caused mainly by the geographic extension of s.c. and greater emphasis on delivery speed / flexibility
- 90 - Jannis Mertens
the efficient, effective forward and reverse flow and storage of goods / services / related
information between the p.o.o. and the point of consumption
8.1 Why Logistics is Critical
- large impact of logistics on costs, flexibility, and delivery performance of companies
- modern trends in logistics: globalization, advantages in information systems and sustainability
- sustainability: performing activities in a manner that meet the needs of the present without
compromising the ability of future generations to meet their needs
8.2 Logistic Decision Areas
- logistics includes not just physical flows (e.g. delivery of products to a customer) but also information
flows
- in the past 10 years, logistics information systems have seen explosive growth; in many s.c. they
represent the greatest opportunity for improvement in s.c. performance
Tr a n s p o r t a t i o n
- five widely recognized transportation modes:
a) highway: dominates U.S. logistics infrastructure 1; continuous to grow because it is one of the most
flexible modes of transportation
b) water: ideal for materials with a high weight-to-value ratio (and if delivery speed is not critical)
c) air: ideal for materials with a low weight-to-value ratio (and if delivery speed is critical)
d) rail: rail transportation has cost characteristics similar to those of water transportation, but it is
somewhat more flexible
e) pipeline
S e l e c t i n g a Tr a n s p o r t a t i o n M o d e
- firms must carefully select a mode based on their particular competitive / operational requirements
Multimodal Solutions
- few companies / s.c. use just one transportation mode
- many depend on multimodal solutions to get goods from one end of the s.c. to the other
1 caused mainly by the geographic extension of s.c. and greater emphasis on delivery speed / flexibility
- 90 - Jannis Mertens
