1. Global Supply Chain Logistics
Chapter 1
Global Supply Chain Logistics

2. Learning Objectives
Understand the elements of the supply chain life cycle
Describe roles & responsibilities in supply chain logistics
Identify the four modes of transportation
How does product handling affect a company’s viability and profitability
Define the basic principles of cost effectiveness throughout the supply chain

3. Why Logistics? Growing opportunities Globalization
Changes in retail environment
Loss of manufacturing jobs
Just-in-Time inventory
Expansion in technology
Rising cost of distribution

4. Typical Careers in Logistics
Senior VP of Logistics or Distribution
VP of Distribution
Director of Distribution
Warehouse Manager
Operations Manager
Supervisor
Lead or Foreman
Front-line Worker

5. Global Supply Chain Life Cycle

6. Suppliers
Supply is the process of sourcing and building inventory based on customer needs. The logistics of supply include:
Contracting with suppliers of material
Working with multiple sources
Processing purchase orders
Verifying timely arrival/delivery

7. Warehouse vs. Distribution Center
May include equipment, raw materials, excess or obsolete inventory, etc.
Long term storage (more than 1 year)
Less automation
Distribution Center
Mostly finished goods
Quick turnaround (less than 1 year)
More automated equipment
*Note: For our purposes, we will use the terms warehouse and distribution center interchangeably.

8. Major Functions
Receiving
Stocking
Order Processing
Shipping
Returns

9. Transportation
Transporters connect the other pieces of the supply chain to each other. The four main modes of transportation are:
Truck (70% of volume)
Air (10% is shipped by air)
Rail (Primarily for inbound)
Water (Inbound or Exports)

10. Trends in Distribution
Rise in global economic competitiveness
Widespread use of computer technology
Growth in international trade due to internet use
Increased transportation costs dues to fuel, carrier mergers, limited port facilities
Customer expectation for services

11. Company Profitability
Execute more, smaller transactions
Store more items for the customer
Provide more customization
Offer a wider range of services
Process more returns
Receive and ship more international orders

12. Productivity Enhancement
Common Measures
Units per man hour
Line items per man hour
Cases per man hour
Cost per case
Orders per man hour

13. Review
Name 3 trends that have impacted the growth of the supply chain.
Name the four types of transportation mode.
State the four major components of any distribution system.
What are the four elements of the global supply chain?
What are the basic differences between a warehouse and a distribution center?