Chapter2LogisticsstrategyandplanningFocusedonplanningandthedecisionmakingthatleadstogoodlogisticsplansthatcontributetothefinancialgoalsofthefirm.ObjectivesofthefirmVisioningprocessDefinitiveplansCorporatestrategyFunctionalstrategyFourcomponentsofstrategyCustomersSuppliersCompetitorsCompanyCorporatestrategy•Thecorporatestrategydrivesthefunctionalstrategiessincetheyarecontainedwithintheformer,asshowninFigure2-1.Corporatestrategy•Box2.1example•Xeror:tobeNo.1infieldservice•StarKistFood:supply-sidestrategy,marketingandlogisticsrespondedwiththeirplantocontrolthepotentialexcessinventories.LogisticsstrategyThreeobjectives:1.costreductionwarehouselocation,transportmodes2.capitalreductionshippingdirectly,publicwarehouse3.serviceimprovementLogisticsstrategyBox2.2exampleOfficemachinecompany:Traditionally,technicianswereassignedfromaservicecentertothecustomerrepairsite.Improvewhenamachinebrokedown;areplacementmachinewouldbesenttothecustomerandthebrokenmachinesenttotheservicecenterforrepair.Seefigure2-2,flowoflogisticsplanning.LogisticsstrategyFlowofLogisticsPlanning各種物流管理策略•基本策略•環境因應策略•減少物流時間為基礎之策略•提高資產生產力之物流策略物流基本策略•最小總成本策略•最高顧客服務策略•最大利潤策略•最大競爭策略環境因應策略1•配銷策略–目標•成本•服務–環境變數•顧客變數–特性–服務水準–數量–訂貨型態•通路變數–結構–議價能力–績效–功能•產品變數–物徵•物流變數–運輸–存貨–設備–資訊環境因應策略2•供給策略–目標•連續性•協調性•成本–環境變數•物料-產品–價格–風險–市場:供給,需求變動•供應商–可靠度–容量–品質–運送–整合性•物流變數–運輸–存貨–訂貨處理–協調環境因應策略3•國際物流策略–國際分工–物流效率生策略•關稅優勢&物流效率比較利益–政府影響–財務因素•財務風險•貨幣匯率–公司環境減少物流時間之策略•及時化系統(Just-in-Time,JIT)與快速回應系統(Quick-ResponseSystem,QR)•條碼之應用•先進科技之應用–EDI,VAN…•直接送貨月台(Cross-Docking)提高資產生產力之物流策略•直接由工廠送貨•第三者物流服務(ThirdPartyLogistics)Logisticsplanning1.LevelofplanningStrategicplanning:usuallymorethanoneyear.Tacticalplanning:usuallylessthanoneyear.Operationalplanning:isshort-rangedecisionmaking.Seetable2-1,examplesofstrategic,tacticalandoperationaldecisionmaking.Table2-1,Examplesofstrategic,tacticalandoperationaldecisionmaking.Logisticsplanning2.MajorplanningareasFourmajorproblemareas:a.customerservicelevelsb.facilitylocationc.inventorydecisionsd.transportationdecisionsSeeFigure2-3,thetriangleoflogisticsdecisionmaking.3.ConceptualizingthelogisticsplanningproblemLinks:thelinksofthenetworkrepresentthemovementofgoodsbetweenvariousinventorystoragepoints.Nodes:thestoragepoints–retailstores,warehouse,factoriesorvendors.Logisticssystem:includeproductflowandinformationflow.Ordercycletimeinventorylevelscustomerservice.affectaffect4whentoplana.logisticssystemnotexist.b.tomodifytheexistingsystem.(1)Demand(2)Customerservice:includesinventoryavailability,speedofdelivery,andorder-fillingspeedandaccuracy.(3)ProductcharacteristicsEx:productweight,volume(cube),valueandrisk.(4)logisticscostsa.totalcost.b.toimprovethelogisticssystem.(5)PricingpolicyExf.o.bfactorypricevs.deliveredprice.Guidelinesforstrategyformulation1.Totalcostconcept2.Differentiateddistribution3.Mixedstrategy4.Postponement5.Consolidation6.StandardizationTotalcostconceptTrade-offanalysis:istherecognitionthatcostpatternsofvariousactivitiesofthefirmfrequentlydisplaycharacteristicsthatputtheminconflictwithoneanother.Transportationservicecharacteristics:Transportationcostvs.Inventorycost.Thebesteconomicchoiceoccursatthepointwherethesumofbothcostsislowest.(dashedline)(a)settingthecustomerservicelevelimprovedcustomerservicelevelwillreducelostsalescost.improvedserviceusuallymeansthatmoremustbepaidfortransportation,orderprocessingandinventories.(b)Determiningthenumberofwarehousesinalogisticssystem.Whenthenumberofstockingpointsisincreased(1)transportationcostsdecline.(2)inventorycostsrise.(c)SettingsafetystocklevelsWhensafetystockisincreased:(1)customerservice(2)inventorycarryingcost(3)lostsalescost(4)transportationcostsremainrelativelyunaffected.(d)SettingthesequenceofproductionrunsformultipleproductsAstheproductionsequenceischanged.1.inventorycarryingcost(massproduction)2.productioncosts(setuptimeschangeovercost)Box2.4Application•MarineproductsmanufacturerconstructingawarehouseinSt.Louis•Considertransportationcostsminimize•Considerinventorycostsminimize•ConstructingwarehouseinChicago.•Final,thepartiallyconstructedwarehouseandmovetheinventorytoChicagoDifferentiateddistribution•Notallproductsshouldbeprovidedthesamelevelofcustomerservice.•Differentcustomerservicerequirement,differentproductcharacteristics,anddifferentsaleslevels.•Inventorylocation.•Transportationrate(vehicle–loadvolumes)•Salesvolume.Fast-movingitemsforwardlocationsinthedistributionchannel.Medium–volumeitemsinfewerregionallocations.Slow–movingitemscentralizedstockingpointssuchasplants.DifferentiateddistributionSeeBox2.5application.Asmallspecialtychemicalcompany.Allproductswereproducedatasinglelocation.Alllargecustomerorders(top10%ofthecompany’svolume),willtobeshippeddirecttocustomersfromtheplant.Othersmallshipmentsizes,weretobeshippedoutoftwostrategicallylocatedwarehouse.Saved20%distributioncosts.•Others:Regularcustomerorders:regulardistributionchannelmightbetofillordersfromwarehouses.Backorders:out-of-stock,abackupdistributionmightbetofillordersfromsecondarystocking