principles of logistics and supply chain management

principles of logistics and supply chain management

Murphy and Wood (2011, pp.20) suggest that “logistics can play an important role in
a nation’s economic growth”. The authors have illustrated four types of economic
usefulness or utility that adds value to a product or service. These include:
1. Possession utility
2. Form utility
3. Place utility
4. Time utility, and
Logistics activities play a critical role in adding value, particularly time and place
utility. Hence, warehousing is an essential part of any logistics system. It is a major
logistics activity, but, more recently, the provision and use of distribution centres has
become more common. In relation to warehouses and distribution centres Grant et al
(2006, p229) state, “The term distribution center (DC) is sometimes used, but the
terms are not identical. Warehouse is the more generic term.”
Many organisations have adopted Distribution Centres (DCs) as a means of ensuring
they achieve their service proposition at least total cost. Organisations such as
Kellogg’s, BMW, Kimberley-Clark and Arnott’s are examples that have been
discussed in trade journals (for e.g. see MHD Supply Chain Solutions – via library
http://search.informit.com.au/browseJournalTitle;res=IELBUS;issn=1445-0801).
Your Task
Research academic journals, textbooks, trade journals and other credible references
to analyse the operations conducted by various DCs and respond to the following
issues (giving examples):
1. Describe what you understand by the term ‘logistics value proposition’.
2. Define the terms ‘warehouse’ and ‘distribution centre’ and describe the role of
each in adding value to an organisation’s products and services, particularly
in terms of utility.
3. Discuss the differences between warehousing and distribution centre
operations.
4. Describe the role and function of three of the DC described in MHD Supply
Chain Solutions. Analyse the role of the DC in ensuring overall quality of the
products provided to its numerous customers.
BUSS 2054 Assignment 2 Page 2
5. Describe various operations conducted at a DC and explain how these
activities add value, particularly
a. cross docking,
b. consolidation and break-bulk,
c. sorting, and
d. reverse logistics.
6. Comment on the use of Information and Communication Technology (ICT)
tools in adding value to the logistics operations of a DC. Briefly describe the latest
tools used by prominent and dynamic DCs.
Write a report (2500 words) on your analysis of DC operations. Include in your report
the three main observations you made as a result of reviewing the various case
studies (see also http://www.linfox.com/Services-and-Solutions/Case-Studies.aspx ).
Include at the front of your report a separate Executive Summary (maximum 200
words). The Executive Summary is NOT included in your total word count.
Due Date: See the Course information booklet
Research – The following sources may be useful, but conduct your own
research for the analysis and report. Access these references at the eReader
link on the course website.
Journal Articles:
• Bowersox, DJ, Mentzer, JT & Speh, TW 2008 Logistics leverage, Journal of
Business Logistics, Vol.25, No.2, pp.85-99
• Gentry, CR 2005 Logistics, Location, Leverage, Chain Store Age, Vol.81,
Iss.5, pp124-128
• Gue, KR 2007 Warehouses Without Inventory, International Commerce
Review, Vol.7, No.2, pp.125-132
• Lambert, DM 2000 Measuring and Selling the Value of Logistics, The
International Journal of Logistics Management, Vol.11, Iss.1, pp.1-18
• Levy, L 2013 The logistics of liquid bulk, Food Logistics, no. 146, pp. 38.
• Rutner, SM 2000 Logistics Value: Definition, Process & Measurement, The
International Journal of Logistics Management, Vol.11, Iss.2, pp.73-82
• Stackhouse, S 2004 The Logistics Game, Area Development Sites & facility
Planning, Vol.39, Iss.4, pp.32-41
• Willersdorf, RG 1991 Adding Value through Logistics Management,
International Journal of Physical Distribution & Logistics Management, Vol.21,
Iss.4, pp.6-8
• Woolven, J 2001 Logistics Analysis, Grocer, Vol.224, No.7487, pp45-46
BUSS

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