Supply Chain Management

HOW TO OPTIMIZE LOGISTICS

Logistics is defined as the process of planning, implementing & controlling the efficient, cost-effective flow and storage of raw material, WIP, finished goods and related information from point of origin to consumption for the purpose of conforming to customer requirements. More simply put, it involves the three movements of into the facility, within the facility and out-to the customer. Many companies have exhausted opportunities in product redesign and material substitution, but Logistics affords an opportunity to recoup additional benefits. This course will take you into the key areas of Logistics Management including a look at the international arena which provides the largest challenges in Logistics. Next, the focus is on warehousing and distribution which provides the interface between the factory and the customer. We then focus on transportation (according to available data, it accounts for around 30-40% of logistics costs on average), including modes and pricing. Then depending on the movement being domestic we will FOB points and if international, we will focus on INCOTERMS.

Logistics is defined as the process of planning, implementing & controlling the efficient, cost-effective flow and storage of raw material, WIP, finished goods and related information from point of origin to consumption for the purpose of conforming to customer requirements.  More simply put, it involves the three movements of into the facility, within the facility and out-to the customer.

From the presenter’s personal experience in observing key companies in their quest to reduce cost and improve productivity, Logistics has become a relatively new focus. Many companies have exhausted opportunities in product redesign and material substitution, but logistics affords an opportunity to recoup additional benefits.

The largest cost element in supply chain logistics is Transportation. As costs rise, it becomes more important to understand the fundamentals of freight transportation markets and how corporate Logistics Management can be managed for greater efficiency. Freight traffic management, at first glance, appears to be concerned only with the simple movement of goods from point “A” to point “B.”  However, this “simple movement” has an enormous effect on marketing, purchasing, manufacturing, quality control, and, ultimately, your customers.

For example, consider that in many cases the same Transportation companies that take product out the door are bringing raw materials in the door. By coordinating these deliveries, contracts can be established where the best pricing can be provided based on leveraged volumes shipped.

The key driver here is the substitutability of transportation for other activities in the logistics chain,and this applies not just to the Transportation Logistics Chain (how goods are moved from place of production to place of distribution to customer) but to the Total Logistics Chain (how and where goods are produced, inputs sourced, markets sought etc.).

Additionally, Warehousing methods are changing dramatically!  New approaches and value-added warehousing concepts offer opportunities to cut costs substantially while improving overall operations.  In addition, many organizations are now focusing on the impact of the warehouse’s bottom-line and are trying make warehouse operations more closely aligned with their organization’s supply chain. Organizations that make the best use of the basic principles of planning and managing warehouse operations have a competitive advantage.  Organizations that lack warehouse strategic planning and operational excellence lose profits, cost advantages, and market leadership.  They also suffer from an inflated number of SKUs and/or a proliferation of slow and obsolete inventory.

This course will take you into the key areas of Logistics Management including a look at the international arena which provides the largest challenges in Logistics.  Next, the focus is on warehousing and distribution which provides the interface between the factory and the customer.  We then focus on transportation (according to available data, it accounts for around 30-40% of logistics costs on average), including models and pricing. Then depending on the movement being domestic we will FOB points and if international, we will focus on INCOTERMS.

To support all of the above, this course will be featured in SCE’s virtual classroom with all of the functionality featured in our DEMO and based on our teams working with major corporations in BIC-Best-In-Class practices.  It will be a blend of educational topics, pertinent case studies, and practical stories based on past practices.  You will learn vital skill sets but also have fun!

Upon completion of the How To Optimize Logistics course, the participant will:

  •  define Logistics as well as understand key factors such as site location, designing the building, automation, and metrics
  •  identify international markets, including ten key issues, determining uncertainty vs. risk
  •  contrast internal vs. external resources for suppliers as well as calculate TLC – Total Landed Cost, and consider third-party providers
  •  review international documentation, including the Bill of Lading, Certificate of Origin, Insurance Certificate, and the Export Packing List
  •  understand the role of Distribution Planning including the three objectives of customer service, efficiency and minimum (optimized) inventory
  • compare distribution supply channels including both consumer and business goods including forecasting by Aggregation vs. Allocation
  • revisit site selection in more detail including both qualitative and quantitative factors
  • contrast distribution planning systems including Push, Pull, DRP (including how DRP and MRP connect), DRP II, VMI/ISCM/VOI and CPFR
  • appreciate the magnitude (role) that transportation has on the economy
  • contrast the key transportation modes of truck (motor), rail, air, water and pipeline as well as revisit third-party providers and inter-modal
  • understand the difference between rate vs. price of transportation including Value of Services pricing
  • Review key domestic terms that determine the transfer of ownership
  • Review the latest INCOTERMS which denote which party (consignor-supplier or consignee-customer) is responsible for freight payment and risk

Depending on the learning style of the participant, this course is designed to be approximately 15 hours in the e-Learning – virtual classroom.  Additionally, at the end of the course – you will take an on-line quiz to make sure you have grasped the key points.

Upon completion of the How To Optimize Logistics course, the participant will receive a certificate of completion with 15 ceus of credit.

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