CLTD Module 1 - Logistics Overview &
Strategy
Early 90s definition of logistics - answer merger of inbound materials mgmt with
outbound physical distribution
logistics - answer the subset of SCM that controls the forward and reverse movement,
handling, and storage of goods between O/D points
Logistics Formula - answer=Physical Supply + Distribution
Systems concept - answer an attempt to create the most efficient complete system as
opposed to the most efficient individual parts
Total Cost Concept - answer the idea that all logistical decisions that provide equal
service level should favor the option that minimizes total cost and not just one area
Drop vs Stem Distance - answer Drop = final mile or distance in the delivery zone
Stem = long haul or distance to/from delivery zone
Line Haul - answerthe portion of a transportation journey that moves between two
terminals
Types of Production Methods (4) - answerMake-to-stock
Make-to-order
Assemble-to-order
Engineer-to-order
Suboptimization - answera solution to a problem that is best from a narrow point of view
but not from a higher level point of view
Four P's - answera set of marketing tools to direct the biz offering to the customer
(product, price, place (time), promotion)
echelon - answera level of supply chain nodes e.g. supplier, manufacturer, DC
each is expected to make a profit
Value Added - answerthe actual increase of utility from the viewpoint of the customer as
a part is transformed from raw material to finished inventory
Types of Logistics Utility - answerTime
, Place
Possession
Form
Quantity
Information
Service
Logistics Efficiency - answerhow much use/utility is gained from the org resources being
employed, including time, labor, money
Logistics Effectiveness - answerthe ability to meet stated goals and whether those goals
are the true direction the org should be taking
2 Primary Components of CSV for transportation - answerSpeed
Consistency
Drivers of Logistics - answerCost vs. CSV
Customer needs, expectations
Schedule compression
Globalization
Market trends & Labor shortages
Competition
Complexity & Risk
Technology
Triply bottom line
Regulations, compliance
Extreme weather
Showcasing - answerwhen customers use retail locations to look at goods but buy
online from the lowest cost providers
Triple Bottom Line - answerthe idea that 3 strategic goals need to be balanced
1. Economic/Profitability
2. Environmental
3. Social
SCM Formula - answer=Suppliers + Logistics + Customers
Channel Master - answerthe organization in a supply chain driving the overall strategy,
also has the most power/risk
US 2018 Logistics Costs - answer$1.64 Trillion USD
landed cost - answerProduct cost plus the costs of logistics, such as warehousing,
transportation, handling fees, duty, taxes, and tariffs
Strategy
Early 90s definition of logistics - answer merger of inbound materials mgmt with
outbound physical distribution
logistics - answer the subset of SCM that controls the forward and reverse movement,
handling, and storage of goods between O/D points
Logistics Formula - answer=Physical Supply + Distribution
Systems concept - answer an attempt to create the most efficient complete system as
opposed to the most efficient individual parts
Total Cost Concept - answer the idea that all logistical decisions that provide equal
service level should favor the option that minimizes total cost and not just one area
Drop vs Stem Distance - answer Drop = final mile or distance in the delivery zone
Stem = long haul or distance to/from delivery zone
Line Haul - answerthe portion of a transportation journey that moves between two
terminals
Types of Production Methods (4) - answerMake-to-stock
Make-to-order
Assemble-to-order
Engineer-to-order
Suboptimization - answera solution to a problem that is best from a narrow point of view
but not from a higher level point of view
Four P's - answera set of marketing tools to direct the biz offering to the customer
(product, price, place (time), promotion)
echelon - answera level of supply chain nodes e.g. supplier, manufacturer, DC
each is expected to make a profit
Value Added - answerthe actual increase of utility from the viewpoint of the customer as
a part is transformed from raw material to finished inventory
Types of Logistics Utility - answerTime
, Place
Possession
Form
Quantity
Information
Service
Logistics Efficiency - answerhow much use/utility is gained from the org resources being
employed, including time, labor, money
Logistics Effectiveness - answerthe ability to meet stated goals and whether those goals
are the true direction the org should be taking
2 Primary Components of CSV for transportation - answerSpeed
Consistency
Drivers of Logistics - answerCost vs. CSV
Customer needs, expectations
Schedule compression
Globalization
Market trends & Labor shortages
Competition
Complexity & Risk
Technology
Triply bottom line
Regulations, compliance
Extreme weather
Showcasing - answerwhen customers use retail locations to look at goods but buy
online from the lowest cost providers
Triple Bottom Line - answerthe idea that 3 strategic goals need to be balanced
1. Economic/Profitability
2. Environmental
3. Social
SCM Formula - answer=Suppliers + Logistics + Customers
Channel Master - answerthe organization in a supply chain driving the overall strategy,
also has the most power/risk
US 2018 Logistics Costs - answer$1.64 Trillion USD
landed cost - answerProduct cost plus the costs of logistics, such as warehousing,
transportation, handling fees, duty, taxes, and tariffs
