Distribution and Logistics Management

In this lesson you'll start with a whirlwind tour through the various elements of a logistics system, examining how each element contributes to its overall success. Then you'll look more closely at two of the major elements: warehousing choices and physical distribution. The lesson will talk about planning, setting up, and operating a warehouse. You'll explore the scope and function of physical distribution and finally study carrier transportation modes and methods.

This lesson will broaden your horizons regarding material handling, packaging, order entry, and customer service (order fulfillment). You'll learn about the different material handling options and discover several dimensions of packaging. You'll also see how the order fulfillment cycle can benefit your organization and determine how to calculate the order fill and line item fill methods.

Receiving starts the ball rolling for logistics activities. After all, you can't do much until you receive raw materials, equipment, and supplies. This lesson will discuss receiving, production stores, and ways to address inbound delivery problems. You'll learn the specific steps of the receiving function, and see that there are two types of production stores arrangements—the closed and open system. You'll also discover different ways to store materials and find out the difference between expediting and tracing. Finally, you'll obtain a few strategies to bring lost shipments in on time.

As a logistics practitioner, you're responsible for controlling inventories. To help you do this effectively, this lesson will cover two key techniques: the ABC classification and the economic order quantity (EOQ) formula. ABC helps you classify inventories based on their characteristics. The EOQ formula balances the cost of obtaining with the cost of keeping inventory. You'll also find out how to set and manage an inventory budget so you come in at or under budget.

Logistics systems move products, material, and equipment in and out of organizations, so it's important to maintain documentation that reflects the pattern of movement and also designates ownership. Doing so will allow you to effectively manage customer returns, and you'll learn how to do that in this lesson. The lesson will also talk about the customer return process and basic transportation documents, including the bill of lading and the freight bill.

Once upon a time, people had to take, fill, ship, and bill orders without the use of computer technology, but today, it's hard to remember a time when computers weren't used in logistics. This lesson will begin with an overview of how computers and technology are used and will also address specific forms of information technology, including electronic data interchange (EDI), electronic commerce (e-commerce), bar coding, and enterprise resource planning (ERP).

The regulatory reform that took place in the logistics field during the late 1970s brought about great change. Revisions in laws and regulations opened the doors for new opportunities. In this lesson, you'll explore the events connected with these changes. You'll also examine how shipping rates are set and used, and finish up by looking at public warehouses and evaluating the pros and cons of outsourcing warehousing activities.

In this lesson, you'll focus on the managerial pieces of logistics. You'll start with planning, because just about everything you do should begin with a plan. Then you'll move on to the counterpart of planning: control. You'll consider the purpose of organization and then learn about motivation and leadership. You'll also learn how to effectively delegate so that your requests are completed on time and with the desired performance.

Selecting the right location for distribution facilities is one of the most critical decisions logistics professionals make. It involves huge expenditures of money that you make in a context filled with volatile events. In this lesson, you'll learn about the benefits of forecasting, long-range planning, capacity planning, and facility selection. The lesson will cover the factors you need to consider for a general and specific location and how to evaluate them. You'll also discover how distribution resource planning (DRP) can effectively synchronize demand and supply.

Logistics personnel have frequent opportunities to work on projects, ranging from improving ongoing operations to opening a new distribution center. This lesson will discuss the need for project management. It will differentiate projects from programs and tasks, explore the temporary and unique aspects of projects, and look at how critical scope definition is to a project's success. Finally, you'll examine the phases of the project life cycle and critique elements of project management that will help you position your project for success.

Joseph Juran, noted quality expert, said, "If you don't measure it, you don't manage it." The flip side is, if you do measure it, you manage it, and that means you can improve it. So in the final lesson, you'll examine performance measurements—a way to keep track of progress. You'll start off by looking at human nature and performance measurements. Then you'll consider what makes a performance measurement effective. The lesson will finish up by discussing traditional and progressive measurements of performance.