A Competitive Advantage for the 21st Century Logistic Management Essay Logistics Topic Paper: You need to submit a final paper relating to a topic in logi

A Competitive Advantage for the 21st Century Logistic Management Essay Logistics Topic Paper:

You need to submit a final paper relating to a topic in logistics. Topics include but are not limited to transportation, 3PL’s, technology, inventory, customer service, warehousing, logistics strategy or international logistics.

Prior approval of topic is required. You will need to submit a Proposal first to be approved before start writing the paper

A recommended approach is as follows:

Select an area of logistics that is of interest to you. Within this area of logistics, you can do research to find what has been written about the subject, a current industry trend/hot topic, how it has changed historically, what is its future, how do companies utilize it differently, etc.

Look for professional organizations that center on this area of logistics, see what they have. Many companies use logistics as a competitive advantage, or misunderstand logistics and how it is strategic, or may require substantial improvement in logistics, or are top players in that area. You can then transfer the knowledge to a business situation using either personal observation and experience or well-documented industry examples. You can meet with a company if you choose and research their logistics operation/strategy, and bring that into the paper.

The purpose of approval is to assist the student in refining his topic so that it is interesting, valuable learning for him, and can be done in the time period.

Instructions:

1. Be creative but ensure that the paper is robust and substantial to warrant the points allocated to this assignment.

2. Paper to be professionally written, Paper to include sub-sections such as Introduction or Executive Summary.

o Appropriate sub-topics such as Background, Trends, Future Direction, Issues, or whatever.

o Recommendations or Critique if applicable

o Conclusions

3. Add diagrams where it would be interesting, do analysis if appropriate, do proper citations, provide references.

4. Note that written business reports should generally be in the third person (not first person).

5. Ensure to have structure to the report (such as executive summary, introduction, background, trends, issues, conclusion, etc.).

6. This is about full 9-pages, not including bibliography or title pages, charts or tables.

7. References should be a minimum of 8

8. Using APA style format for citations.

9. Wikipedia and other web-based encyclopedic sources may be used, but should only compile no more than 25% of the research resources. (But not preferred)

10 .Any verbiage taken directly from a citation should be put in quotations and cited properly.

Plagiarism is not acceptable in any form and a score of zero will be given on the paper, as the paper will be checked by Turnitin Website for plagiarism. So, please make sure to deliver an original and high quality paper.

VIP: This is an extensive paper and you should choose a topic early and begin your comprehensive research early in the term. You might want to read ahead in the book to inform yourself on some of the areas we won’t be studying till later, as these might provide insight into topics you are really interested in.

Paper Rubric 120

Criteria

Pts

This criterion is linked to a Learning Outcome On time

10.0 pts

This criterion is linked to a Learning Outcome Style and professionalism in writing

20.0 pts

This criterion is linked to a Learning Outcome Topic Definition

10.0 pts

This criterion is linked to a Learning Outcome Evidence Presented

15.0 pts

This criterion is linked to a Learning Outcome Logistics Content

20.0 pts

This criterion is linked to a Learning Outcome Critique and Analysis

15.0 pts

This criterion is linked to a Learning Outcome Conclusions and Exec Summary

20.0 pts

This criterion is linked to a Learning Outcome Interest

10.0 pts

Total 120

I have attached the book for your reference.

Also, the course syllabus is below, to have an idea about what chapters we have studied for this course.

Chapter# Chapter# Chapter#
Chapter 1 – Introduction to Logistics Chapter 2 – Logistics in the Organization Chapter 3 – Customer Service
Chapter 4 – Inventory Management Chapter 5 – Global Transportation Systems Chapter 6 – Transportation Management Issues
Chapter 7 – Warehousing Chapter 8 – Materials Handling and Packaging Chapter 9 – Managing Logistics Information
Chapter 10 – Inbound Logistics and Purchasing Chapter 11 – The Global Logistics Environment Chapter 12 – Logistics Strategies
Chapter 13 – Developing High-Quality Logistics Systems Chapter 14 – Improving Logistics Performance Chapter 15 – Organizing for Logistics Effectiveness

Due Date:

This work must be done in one week from now, BUT you need to submit a proposal for this topic paper within 24 from now to get an approval for the topic before start writing the paper. 2
Global Logistics Management
For my wife, Susan, whose love, support, and hard work allowed me to
complete the second edition (and the first as well).
Kent N. Gourdin
3
GLOBAL LOGISTICS
MANAGEMENT
A Competitive Advantage for the
21st Century
Second Edition
4
5
CONTENTS
Preface xiii
Acknowledgments xv
1 Introduction to Logistics 1
Logistics: The Historical Perspective 1
Logistics: The Modern Perspective 2
Components of a logistics system 4
The role of logistics in the organization 7
Logistics as a Source of Competitive Advantage 8
Why Is Management Interest in Logistics Growing? 10
Trends in global trade 10
Customers are demanding greater value 10
Transportation privatization and liberalization 11
Transportation security 12
Environmental concerns 12
Changing view of inventory 13
Continuing advances in information technology 14
Electronic commerce 15
Logistics in the Global Organization 15
Conceptual Model and Statement of Purpose 17
6
Chapter Summary 18
Study Questions 19
2 Logistics in the Organization 21
Introduction 21
The Marketing/Logistics Partnership 22
Marketing and Logistics Channels 22
Alternative channel structures 22
Why do channels develop? 23
Channel flows 23
Designing effective channels 25
Environmental Issues 25
Marketing Issues 26
Channel management issues 31
Formal and informal channel relationships 32
Domestic versus global channels 33
Future trends in channel structures 35
Managing the Logistics System 36
Tradeoff Analysis 37
Enhancing Corporate Profitability with Logistics 39
Chapter Summary 41
Study Questions 42
7
3 Customer Service 44
Introduction 44
What Is Customer Service? 45
Elements of Customer Service 45
Customer Service in a Global Setting 49
How Much Service Should Be Offered? 50
Barriers to Quality Customer Service 52
Controllable factors 52
Uncontrollable factors 53
Improving Customer Service Performance 54
The Consequences of Poor Customer Service 55
Improving Customer Service in Comparison to its Costs 59
Customer Service and the Internal Customer 59
Chapter Summary 60
Study Questions 60
4 Inventory Management 62
Introduction 62
Inventory and Customer Service 63
Purposes of Inventory 64
Types of Inventory 64
Objectives of Inventory Management 65
8
Inventory costs 65
Managing inventory costs 66
Classic Inventory Models 66
Economic order quantity (EOO) model 66
Modifications to the basic EOO model 67
Model limitations 68
Fixed order point/fixed order quantity model 68
Fixed order interval model 68
Safety stock requirements 70
Inventory Management: Signs of Trouble 71
Improving Inventory Management 74
Materials Requirements Planning (MRP) 77
Distribution Resource Planning (DRP) 77
Just-In-Time (JIT) Inventory Management 77
Basic tenets of JIT 78
Advantages of JIT 79
Disadvantages of JIT 79
JIT II/vendor managed inventory (VMI) 80
The reality of JIT 81
Integrated Inventory Management: DRP, MRP, and JIT 82
Inventory Management in a Global Market 83
9
Chapter Summary 85
Study Questions 86
5 Global Transportation Systems 87
Introduction 87
The Five Modes of Transportation 88
Rail 89
Road transport 91
Pipelines 93
Air 93
Water carriage 94
Deregulation and Privatization of Transportation 97
Deregulation 97
Privatization 98
Future directions 99
Government’s Role in Transportation 100
Direct control and regulation of transport firms 100
Provision of transport infrastructure 101
Promulgating and enforcing environmental, safety, and security laws
101
Transportation Security 102
Intermodal Transportation 103
10
Rail 104
Ocean transport 104
Air 105
Motor transport 105
Infrastructure issues 106
Concluding comments 106
Chapter Summary 106
Study Questions 107
6 Transportation Management Issues 109
Introduction 109
Developing Win/Win Shipper/Carrier Relationships 109
Transport Pricing 111
Market structure models 111
Relevant market area 112
Shipper demand 113
Carrier costs 113
Pricing in Practice 115
Price negotiation: the carrier’s perspective 115
Price negotiation: the shipper’s perspective 116
Private Transportation 116
Other Issues Affecting Transportation Cost and Service 117
11
Infrastructure availability and condition 117
Environmental and quality of life issues 121
Customs and cargo security 125
Carrier safety 125
Conclusions 126
Chapter Summary 126
Study Questions 127
7 Warehousing 129
Introduction 129
The Strategic Role of Warehousing in Logistics 131
Functions of Warehousing 132
Warehouse Roles 134
Warehouse Location Issues 135
Centralized versus decentralized warehouses 135
Selecting specific sites 137
Warehousing Alternatives 139
Private warehousing 139
Contract warehousing 139
Public warehouses 139
Warehousing Strategies 140
Warehousing Concerns in Overseas Markets 141
12
Chapter Summary 143
Study Questions 143
8 Materials Handling and Packaging 145
Introduction 145
Basic Warehouse Design 145
Manual Versus Automated Materials Handling Systems 146
Manual warehouses 146
Automated warehouses 147
Manual versus automated: making the choice 147
Trends in Materials Handling 150
Reliability 150
Total integration 151
Flexibility and modularity 151
Upgrade ability 151
Automated identification 152
Ease of use 155
Maintainability 155
Conclusions 155
Product Packaging 156
Types of packaging 156
Organizational influences on packaging 156
13
The role of packaging 157
Logistics packaging materials 157
Environmental issues 158
Packaging for global markets 159
Bar coding 160
Developments in packaging 161
Tradeoffs with other components of the logistics system 161
Chapter Summary 163
Study Questions 163
9 Managing Logistics Information 166
Introduction 166
The Order Processing System 167
Logistics Information Systems 168
Environmental scanning 169
LIS and information management 169
Forecasting Methods 170
Qualitative forecasts 170
Time-series methods 170
Causal methods 171
Forecasting logistics needs 172
Selecting the right forecasting technique 172
14
Using Information to Link a Global Logistics System Together 172
Electronic data interchange (EDI) 172
Impediments to global implementation of EDI procedures 178
Developments in Logistics Information Systems 178
The Internet and electronic commerce 179
Open-systems computer networks 180
Wireless communication 180
Multidimensional bar codes 180
Radio frequency identification (RFID) technology 180
Other advances in communications 182
Chapter Summary 182
Study Questions 183
10 Inbound Logistics and Purchasing 185
Introduction 185
The Growing Importance of Inbound Logistics 186
Inbound Logistics Activities 187
Customer service 187
Transportation 187
Inventory management 187
Warehousing and storage 188
Maintenance 188
15
Information management 188
Salvage and waste disposal 189
Production 189
Summary 189
Purchasing 190
Goals of purchasing 191
Purchasing tasks 191
Improving purchasing productivity 194
Organize for enhanced productivity 197
Management Techniques for Improving Materials Management 200
Chapter Summary 200
Study Questions 200
11 The Global Logistics Environment 203
Introduction 203
The Global Supply Chain 204
Changing Market Opportunities 205
Emerging nations 205
Multilateral trade organizations 205
Global sourcing 208
Cultural Issues in Logistics 208
Alternative Global Distribution Strategies 209
16
International Documentation 211
Customs Regulations 212
Foreign Trade Zones 214
Logistics Intermediaries and Facilitators 215
Third-Party Logistics Providers 217
Controlling the Global Logistics System 219
Chapter Summary 220
Study Questions 221
12 Logistics Strategies 224
Introduction 224
Corporate Strategic Planning 225
Formulating Logistics Strategy 226
Integrating the Logistics Channel 230
Implementing Logistics Strategies 232
Centralization of logistics activities versus decentralization 233
Third-party service providers 234
Logistics strategy and improved corporate performance 237
Future Issues That Will Affect Logistics 237
Implications for Logistics Managers 241
Chapter Summary 242
Study Questions 242
17
13 Developing High-Quality Logistics Systems 245
Introduction 245
Basic Quality Concepts: The Internal Perspective 246
Leadership 247
Cooperation 247
Learning 248
Process management 248
Employee outcomes 248
Organizational performances 248
Basic Quality Concepts: The External View 249
The Service Quality Model 250
Total Quality Management (TOM) in Logistics 253
Developing a Formal Quality Process 254
Quality Process Success Factors for Logistics Management 256
ISO 9001:2000 The International Quality Standard 259
The Cost of Quality 260
Chapter Summary 260
Study Questions 261
14 Improving Logistics Performance 263
Introduction 263
Improving Organizational Performance 264
18
Continuous and breakthrough improvements 265
Basic Tools for Improving Logistics Performance 266
Process analysis tools 266
Statistical analysis tools 268
Benchmarking 268
Activity-based costing 2 70
Effecting Meaningful Change 2 74
Logistics service quality 2 74
Productivity 275
Process effectiveness 276
Impediments to Improved Logistics Performance 276
Failure to adopt the customer’s viewpoint 276
Lack of requisite cost data 277
Lack of broad-based management skills 278
Failure to think of logistics as a system 278
Need for cultural change within the organization 2 79
Creating a World-Class Logistics System 2 79
Chapter Summary 281
Study Questions 282
15 Organizing for Logistics Effectiveness 284
Introduction 284
19
Overview of Logistics Organizations 285
Building an Effective Logistics Organization 288
Centralization 288
Scope of responsibility/ span of control 289
Formalization 289
Integration 289
The Role of Logistics in the Firm 289
Inter-organizational effectiveness 290
Variables Influencing Organizational Structure 291
Organization size 292
Corporate structure 292
Corporate strategy 292
The importance of logistics 293
Corporate information technology 293
Environmental uncertainty 293
Environmental heterogeneity 294
Summary 297
Reconciling Intra- and Inter-Organizational Issues 298
Moving Towards the “Best” Organizational Structure 299
Chapter Summary 299
Study Questions 300
20
Index 303
21
PREFACE
There have been dramatic changes in the world since the first edition of
the book was published. Security has come to the forefront as a logistics
concern where, prior to September 11, 2001, it was a peripheral interest at
best. The growing use of radio frequency identification technologies has
made it possible to know in real time where a shipment is in the supply
chain. Similarly, the quantum advances in information technology have
increased the manager’s ability to manage both the firm’s logistics systems
and the supply chain in general. However, some things have not changed.
The ability of the firm to consistently deliver its products, when and where
its customers demand them, at a reasonable price has become just as
important as the quality of the products themselves. Second, the
globalization of trade continues, with the result that companies face rising
levels of competition, both within their home markets and around the
world. China and India are finally emerging as powerhouses in the world
arena, both as producers and consumers of goods. Finally, logistics is
assuming a great corporate role as companies strive to serve and satisfy
customers in increasingly diverse markets wherever they may be.
Global Logistics Management is intended to accomplish three objectives:
(1) to educate students and managers on the nature of individual logistics
activities in general and how these tasks function in a global setting; (2) to
show how these activities can be woven together both internally to form an
integrated logistics system and externally with business partners to form a
single unified supply chain; and (3) to provide present and future business
leaders with the knowledge and skills necessary to turn their corporate
logistics activities into a source of sustainable competitive advantage in the
global business arena.
To accomplish these objectives, Global Logistics Management is
organized into three parts. Part I provides an overview of logistics and how
it fits into the organization as a whole. Part II deals with managing specific
logistics activities such as customer service, inventory management,
transportation, warehousing, materials handling and packaging,
information systems, and inbound logistics. Finally, Part III brings that
functional discussion together into a cohesive examination of how to
22
manage the total logistics process. Topics covered in this section include
the global business environment, strategy formulation, quality,
performance improvement, and organizational issues impacting logistics.
To keep students with little or no knowledge of logistics focused on the
topic, the book is written in a straightforward and uncomplicated way. For
those who, after reading this text, become believers in the power of
logistics, there are several books available that will provide a more indepth look at the mathematical and analytical tools available to assist the
more experienced logistician in dealing with specific problems. As often
as possible, the concepts presented are illustrated with practical examples
drawn from the real world of logistics. To that end, examples from the
passenger transport industry are included where they reinforce a particular
point because, after all, firms in that industry are very much involved in
logistics as well. They simply move people rather than boxes.
Furthermore, in an effort to retain a global view, no one country or region
has been singled out for special attention. But regardless of what is being
moved or where it is going, today is an exciting time to be in logistics.
Hopefully, readers of Global Logistics Management will learn enough to
appreciate all that integrated logistics management can offer as a source of
competitive advantage.
A series of PowerPoint slides to accompany this text for teaching
purposes is available at www.blackwellpublishing.com/gourdin.
23
ACKNOWLEDGMENTS
The editor and publisher gratefully acknowledge the permission granted to
reproduce the copyright material in this book.
Figure 1.4 Porter, Michael E., “The value chain,” p. 41 from The
Competitive Advantage of Nations. New York: The Free Press, 1990.
Figure 1.5 Kotler, Philip, “Determinants of customer added value,” p. 38
from Marketing Management, 8th edn. Englewood Cliffs, NJ: PrenticeHall, 1994. 12th Edition, © 2006, p. 141. Adapted by permission of
Pearson Education, Inc, Upper Saddle River, NJ.
Logistics Profile 1.1 Hickey, Kathleen, “McDonald’s Tall Order,” pp. 810 from Traffic World January 5, 2004. © Copyright 2005
Commonwealth Business Media. All rights reserved. Published with
copyright permission from Commonwealth Business Media.
http://www.joc.com/copyrights.
Figure 2.2 Jain Subash, C., “Alternative channel structures,” p. 564 from
International Marketing Management. Belmont, CA: Wadsworth, Inc.,
1993.
Logistics Profile 2.1 Seideman, Tony, “Despite Globalization Traumas,
Flower Industry Blooms,” from World Trade June 1, 2004.
Figure 3.5 Ploos van Amstel, M. J., “Pipeline lead-times from Taiwan to
central warehouse in the Netherlands” in “Managing the Pipeline
Effectively,” p. 9 from journal of Business Logistics 11(1), 1990.
Reprinted by permission of the Council of Supply Management
Professionals (formerly CLM).
Figure 3.6 Ploos van Amstel, M. J., adapted from “Improved lead-times
from Taiwan to central warehouse in the Netherlands” in “Managing the
Pipeline Effectively,” p. 9 from journal of Business Logistics 11(1), 1990.
Reprinted by permission of the Council of Supply Management
Professionals (formerly CLM).
24
Logistics Profile 3.1 Hansen Harps, Leslie, “Office Depot Targets
Europe for Growth,” from Inbound Logistics August, 2002. Reprinted
with permission from Inbound Logistics magazine, August 2002.
www.inboundlogistics.com/subscribe. Copyright Inbound Logistics
2002.
Logistics Profile 3.2 Hoffman, William, “Dell Gets Domestic,” p. 16
from Traffic World November 29, 2004. © Copyright 2005
Commonwealth Business Media. All rights reserved. Published with
copyright permission from Commonwealth Business Media.
http://www.joc.com/copyrights.
Figure 4.5 Lambert, Douglas M., Stock, James R., “A statistical
presentation of safetystock,” p. 418 from Strategic Logistics Management.
Homewood, IL: Richard D. Irwin, 1993. Reprinted by permission of
Douglas M. Lambert, PhD.
Logistics Profile 4.1 Cottrill, Ken, “Saving by Postponing,” p. 15 from
Traffic World February 23, 2004. © Copyright 2005 Commonwealth
Business Media. All rights reserved. Published with copyright permission
from Commonwealth Business Media. http://www.joc.com/copyrights.
Logistics Profile 4.2 Hickey, Kathleen, “A Logistics Nightmare,” p. 15
from Traffic World September 13, 2003. © Copyright 2005
Commonwealth Business Media. All rights reserved. Published with
copyright permission from Commonwealth Business Media.
http://www.joc.com/copyrights.
Logistics Profile 4.3 “Carrefour Technology Revs Up Distribution
System,” p. 14 from MMR 26/07/2005, 21(11), 2004.
Logistics Profile 5.1 Agence France-Presse, “Estonia: End of the Line
for Europe’s Passenger Rail Network,” August 22, 2004.
Logistics Profile 5.3 Leach, Peter T, “End of the Line?” p. 22 from
journal of Commerce May 17, 2004. 0 Copyright 2005 Commonwealth
Business Media. All rights reserved. Published with copyright permission
from Commonwealth Business Media. http://www.joc.com/copyrights.
Figure 6.1 Canna, Elizabeth, “Important transportation factors for Volvo”
25
in “Taking JIT to new limits,” p. 54 from American Shipper February,
1995. © 1995 Howard Publications Inc., (www.AmericanShipper.com).
Published with the permission of the publisher.
Logistics Profile 6.1 Baasch, Henrik, “Which intermodal technique for
Europe?” p. 34(2) from American Shipper February, 1999. 0 1999
Howard Publications Inc., (www.AmericanShipper.com). Published with
the permission of the publisher.
Logistics Profile 6.2 Merle, Renae, “Rapid rail network grows at snail’s
pace: Trans-European network of high-speed trains faces many obstacles,
technology being one of them: Too many standards,” from The America’s
Intelligence Wire January 2, 2004.
Figure 7.2 Byrne, Patrick M., “Basic warehousing functions,” p. 318 from
Improving Quality and Productivity in the Logistics Process. Oak Brook,
IL: Council of Logistics Management, 1991. Reprinted by permission of
the Council of Supply Management Professionals (formerly CLM).
Logistics Profile 7.1 Smith, Jeremy N., “The New Warehouse,” from
World Trade October 1, 2004.
Logistics Profile 7.2 Chung, Hanna, “EU expansion to bring more
Eastern European warehouses,” p. 22(1) from Logistics Management
(Highlands Ranch, CO. September) Reed Business Information, 2004.
Figure 8.1 Coyle, John J., Bardi, Edward J., and Langley, C. John Jr,
“Principles of warehouse layout design,” p. 257 from The Management of
Business Logistics 6th edn. St. Paul, MN: West Publishing Company,
1996. From Management of Business Logistics 6th edition by
Coyle/Bardi/Langley. © 1996. Reprinted with permission of SouthWestern, a division of Thomson Learning: www.thomsonrights.com. Fax
800 730-2215.
Logistics Profile 8.1 “Logistics: Automated Warehousing and Rapid
Distribution is the Solution,” p. S22(3) from Quick Frozen Foods
International October, 2004. Reprinted by permission of the author John
M. Saulnier and Quick Frozen Foods International magazine, October
2004.
26
Logistics Profile 8.2 Zuckerman, Amy, “RFID Leaves the Warehouse
for `Real World’ Supply Chain Laboratories,” from World Trade April 1,
2001.
Figure 9.2 Emmelhainz, Margaret A., “How EDI works,” p. 5 from EDI: A
Total Management Guide, 2nd edn. New York: Van Nostrand Reinhold,
1993.
Logistics Profile 9.1 “UPS Suite of New Technologies Promises Better
Customer Service, Operating Efficiency; Latest Network Software
Unveiled at UPS Technology Summit,” from Business Wire September
23, 2003.
Logistics Profile 9….
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