(Mberiah Only)LOG302: LOGISTICS PLANNING

MODULE 3 - Background

Logistics Planning

Use the following process to find and review the articles below in ProQuest:

Required Materials

Ironside, Fraser (2007 Sep/Oct) Yesterday's Supply Chain Networks are Costing Businesses Today, Supply Chain Europe, London: Vol.16, Iss. 5, pg 30, 3 pgs.

http://search.proquest.com.ezproxy.trident.edu:2048/docview/232434985?pq-origsite=summon

Abstract:

One of the major changes in recent years is the cost of fuel. The price of standard crude oil on NYMEX was under $25/barrel in September 2003. What companies need to realize is that increased fuel costs can be offset to a certain extent by reevaluating the supply chain configuration. Another major trend that has fundamentally changed the supply chain is the increased global sourcing of goods. Furthermore, despite the longer distances goods need to travel to reach the end customer now businesses also need to optimize their supply chain in terms of carbon emissions. In addition to helping companies adapt to changing global trends and rising costs, network design technologies can also prove indispensable in allowing companies to incorporate local or regional trends into their supply chain strategy.

Napolitano, Maida (2009, Jun) Redrawing Your DC Network, Logistics Management (2002), Highland Ranch: Vol. 48, Iss.6, pg. 36.

http://search.proquest.com.ezproxy.trident.edu:2048/docview/197221254?pq-origsite=summon

Abstract:

Last consumer spending shut down, the economy headed south, and logistics managers realized they needed to reconfigure the network - for a third time - to conserve cash, minimize capital outlay, and significantly cut down on logistics operating expenses. In fact, much of the current distribution environment is in a state of flux. Troy West, assistant vice president for TranSystems, points out that trade lanes have been shifting; there's a greater need for more flexible intermodal facilities, and increased pressure to make the network greener. Current trends are discussed, including: 1. downsized networks, 2. increased use of 3PLs and outsourcing partners, 3. more focus on product profitability before network analysis, 4. more use of rail, more need for intermodal facilities, 5. a shift from centralized to regional warehousing, 6. increased use of East Coast and Gulf ports, and 7. greening of networks. Perhaps the biggest lesson learned from maintaining the optimal DC network is that it will always be subject to change. The savvy managers are the ones that stay on top of it; continuously adjusting it and preparing it for the world of tomorrow.

Hannon, David (2007 Aug 16) Electrolux Designs a Logistics Network to Support Global Sourcing, Purchasing, Boston: Vol. 136, Iss. 11, pg. 29

http://search.proquest.com.ezproxy.trident.edu:2048/docview/214446755?pq-origsite=summon

Abstract:

Knowing that increased global sourcing would likely increase the company's overall logistics costs, Electrolux initiated a deep-dive project to review the company's logistics network in Asia. At the end of the project two issues became extremely clear: the company's container fill rate was much lower than was expected and many of the suppliers were shipping to Electrolux in similar lanes, but using various logistics providers at various rates. In the new plan, all suppliers in a certain region send to a consolidation point. Then containers are put into dedicated factory loads and shipped to the destination. The consolidation points improved container fill rates and let Electrolux select the logistics providers it wanted in various regions. By focusing primarily on providers with global scope, Electrolux has to manage fewer, but broader, logistics providers.

Trebilcock, Bob, (2006, Oct.) Burlington Coat Factory Builds a Distribution Network, Modern Materials Handling, (Warehouse Management Edition), Boston Oct 2006, Vol 61, Iss 10, pg. 26

http://search.proquest.com.ezproxy.trident.edu:2048/docview/224490072?pq-origsite=summon

Abstract:

At Burlington Coat Factory, the discount retailer with $3 billion in sales, it takes more than one type of distribution center (DC) to service 365 stores in 42 states. Burlington has evolved from operating a single DC at the company's headquarters in Burlington, N.J., to a distribution network with four facilities. Moving from a company with distribution centers to a distribution network was an evolution for Burlington Coat Factory. It was also a necessity. At one point, efficient handling and distribution was going to be key to the retailer's continued growth. Burlington's new approach began with a new look at the basics of inbound and outbound logistics, along with understanding how existing systems could interface with materials handling equipment to efficiently move product. That look led to the introduction of EDI, ASNs and print-and-apply technology. With those in place, suppliers could pack by store and ensure the unimpeded flow of merchandise through the distribution facilities and out to the stores.

Trebilcock, Bob, (2008, Feb.) IKEA Thinks Global Acts Local, Modern Materials Handling, (Warehouse Management Edition), Boston: Vol. 63, Iss 2; pg. 22

http://search.proquest.com.ezproxy.trident.edu:2048/docview/201567213?pq-origsite=summon

Abstract:

At its new 750,000 square foot distribution center in Port Wentworth, Ga., located near the port of Savannah, IKEA Wholesale employs a global warehouse design and best practices to serve a growing regional market. Turnaround on orders to the stores has been reduced from 72 hours to 24 hours while taking nearly 700 miles out of the distance from the DC to the stores and from the port to the DC. The world's largest home furnishing company, IKEA is known for contemporary designs, affordable prices and loyal customers. The Port Wentworth facility allowed IKEA to create a new distribution strategy. The Perryville facility now handles low-volume products for the entire eastern half of the United States. Meanwhile, regional DCs, like Port Wentworth, can handle the fastest-moving products sold by the stores serviced by those DCs.