LOGISTICAL NETWORK ANALYSIS TOPIC LOGISTICAL NETWORK ANALYSIS

INTRODUCTION: WHAT IS LOGISTICS? WHAT IS LOGISTICAL NETWORK?

WHAT IS LOGISTICAL NETWORK ANALYSIS? IT HELPS TO ANSWER A FEW QUESTIONS… WHY LOGISTICAL NETWORK ANALYSIS?

OBJECTIVES OF LOGISTICAL NETWORK ANALYSIS: EFFECTIVE PROCESS KEY DETERMINANTS IDENTIFY FACTORS TRANSPORTA TION MODELING APPROCHES

WHAT IS LOGISTICAL NETWORK DESIGN? IT RELATES TO: ESTABLISHMENT OF VARIOUS FACTORS ENCAPSULATES VARIOUS ACTIVITIES IT COVERS THREE ELEMENTS

THE STRATEGIC IMPORTANCE OF LOGISTICAL NETWORK ANALYSIS: 1) Critical variables in network design 2) Shifting Locations of Customer and/or Supply Markets 3)Change in Corporate Ownership 4)Cost Pressures 5)Competitive Capabilities 6)Corporate Organizational Change

Key Step Logistical Network

STEPS: STEP 1: DEFINE THE LOGISTIC NETWORK DESIGN PROCESS formation of a logistics network reengineering team to be responsible it is important to establish the parameters and objectives of the logistics network design.

STEP2: PERFORM LOGISTICS AUDIT STEP2: PERFORM LOGISTICS AUDIT *It provides the reengineering team with a comprehensive perspective on the firm`s logistics process. *it helps to gather essential types of information that will be useful throughout future steps in the redesign process. STEP3: EXAMINE LOGISTIC NETWORK ALTERNATIVES *applying suitable models to the current logistics system as well as to the alternatives systems and approaches under consideration. *It provides considerable insight into the functioning and cost / service effectiveness of the various possible networks.

Step 4: CONDUCT A FACILITY LOCATION ANALYSIS carefully analyze the attributes of specific regions and cities that are candidates for sites of logistics facilities Step 5:MAKE DECISION REGARDING NETWORK AND FACILITY LOCATION: The network and specific sites for logistics facilities recommended should be evaluated for consistency with the design criteria that were identified. This step should confirm the types of change that are needed to the firm`s logistics network and should do in the context of overall supply chain management.   Step 6:DEVELOP AN IMPLEMENTATION PLAN: Once the overall direction has been established, the development of an effective implementation plan or blueprint for change is critical. This plan should serve as a usefull road map for moving from current logistics network to the desired one.

TRANSPORTATION NETWORK OPTION *1)DIRECT SHIPMENT *2)MILK RUN

CONT… 3) LASH 4) RORO

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