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• Module overview
• 1. Introduction to logistics
  • 1.1. The logistics concept
    • 1.1.1 A question of definition
    • 1.1.2 Technological context
  • 1.2. Evolution of modern business logistics
    • 1.2.1 Materials management or supply-side logistics
    • 1.2.2 Physical distribution or demand-side logistics
    • 1.2.3 The total logistics concept
  • 1.3 Logistics, the critical interfaces

• 2. Supply side logistics: Procurement and materials management

  • 2.1 Materials management
    • 2.1.1 Purchasing and procurement
    • 2.1.2 Production control
    • 2.1.3 Warehousing and storage
    • 2.1.4 Data and information systems
  • 2.2 Quality in logistics
    • 2.2.1 Total quality management
    • 2.2.2 Benchmarking
  • 2.3 Kanban
  • 2.4 Measurement and evaluation
  • 2.5 MRP 1 and 2

• 3. Demand side logistics: Forecasting and order processing

  • 3.1 Customer order processing
  • 3.2 Environmental scanning
    • 3.2.1 The environments
    • 3.2.2 Approaches to scanning
  • 3.3 Logistics needs forecasting
  • 3.4 Lead time components
  • 3.5 Enhancing forewarning of demand

• 4. Inventory management and control

  • 4.1 Basic concepts and rationale for inventory holding
  • 4.2 Inventory costs
    • 4.2.1 Managing inventory costs
    • 4.2.2 Push and pull control methods
  • 4.3 Types of inventory
  • 4.4 Inventory management
    • 4.4.1 Inventory management systems
    • 4.4.2 Computers and inventory management
  • 4.5 Inventory management and business success

• 5. Storage facilities, materials handling equipment and packaging

  • 5.1 The management of warehouses and distribution centres
    • 5.1.1 Storage alternatives
    • 5.1.2 Warehouse design
    • 5.1.3 Productivity associated with warehousing
    • 5.1.4 Warehouse information systems
  • 5.2 Materials handling
    • 5.2.1 Objectives of material handling
    • 5.2.2 Materials handling systems and equipment
    • 5.2.3 Materials handling productivity ratios
  • 5.3 Packaging
    • 5.3.1 The role of packaging
    • 5.3.2 Packaging materials
    • 5.3.3 Packaging design considerations

• 6. Physical distribution transportation system

  • 6.1 The role of transportation in logistics
  • 6.2 Economic and service characteristics of the modes of transport
    • 6.2.1 Rail
    • 6.2.2 Road
    • 6.2.3 Air
    • 6.2.4 Water
    • 6.2.5 Pipeline
  • 6.3 Intermodal transport services
  • 6.4 Transportation cost structures
  • 6.5 Transportation rate profiles
  • 6.6 Modal and carrier selection
  • 6.7 Management of the transport function

• 7. Change and transformation

  • 7.1 Nature of change
    • 7.1.1 The manager's role and change
    • 7.1.2 Transformation and change continuums
    • 7.1.3 Responding late in the change continuum
    • 7.1.4 Rapid change continuum cycles
    • 7.1.5 Increasing organisational responsiveness and agility
  • 7.2 Scale and pace of change
    • 7.2.1 Leading rapid change
  • 7.3 Stages of change
    • 7.3.1 The stages of change and approaches to management
    • 7.3.2 Change and the organisation's development stage
  • 7.4 Communicating change
    • 7.4.1 Guidelines for communicating change
    • 7.4.2 Communicating change to stakeholders

• 8. Building agility and responsiveness

  • 8.1 Organisational agility and the art of rapid change
  • 8.2 Agility and transformational leadership
    • 8.2.1 Transactional Leadership
    • 8.2.2 Transformational Leadership
  • 8.3 Agility and organisational responsiveness
    • 8.3.1 Principles for Constructive Change
    • 8.3.2 Agility and environmental attunement
  • 8.4 Organisational learning and enhanced agility
    • 8.4.1 Learning and organisational life cycles
    • 8.4.2 Double loop learning and the learning organisation
    • 8.4.3 The learning cycle
    • 8.4.4 Leading learning from being adaptive to generative

• 9. Foster innovation and creativity

  • 9.1 Innovation and agility
  • 9.2 Levels of innovation and their impact
    • 9.2.1 Innovation
    • 9.2.2 Improvement
    • 9.2.3 Re-engineering
    • 9.2.4 Reinventing
    • 9.2.5 Re-engineering
  • 9.3 Re-engineering and business process re-engineering
    • 9.3.1 Reengineering and quality improvement
    • 9.3.2 Identifying when to re-engineer processes
    • 9.3.3 To innovate slowly or reengineer?
  • 9.4 The need for speed
  • 9.5 Organise work to facilitate innovative practices and organisational agility
    • 9.5.1 Innovative and agile organisation
  • 9.6 Enhancing diversity and creativity of thinking in teams and work practices
    • 9.6.1 Convergent and divergent thinking
    • 9.6.2 Left- and right- brain activities
    • 9.6.3 How to generate new ideas?
  • 9.7 Creativity and solutions search in teams
    • 9.7.1 Brainstorming
    • 9.7.2 Synectics
    • 9.7.3 Forcing Techniques
    • 9.7.4 Nominal Technique
  • 9.8 Review the use of innovation in work and team practices.
    • 9.8.1 Assess the ability of the team to achieve goals
    • 9.8.2 Review the success of team leadership

6.6 Modal and carrier selection

There are a number of service characteristics that need to be considered prior to selecting a particular mode of transportation and more specifically the type of carrier to be used for a particular shipment of goods. The important service characteristics are usually related to the cost, speed and dependability. Others that affect the selection process are capability, availability and adequacy of equipment, availability of service, frequency of service, security, claims handling, shipment tracing and problem-solving assistance to name just a few.

When a transportation service is not used to provide a competitive advantage, the best service choice is found by trading off the cost of using a particular transport service with the indirect cost of inventory associated with the performance of the selected mode. That is, speed and dependability affect both the shipper's and the buyer's inventory levels (both order quantity stock and safety stock) as well as the amount of inventory that is in transit between the shipper's and buyer's locations (Ballou 2004, p220).

When evaluating alternative choices of transportation, it is necessary to consider the lowest total cost, which includes not only the cost of transportation, but also the cost of the inventory that is required as a result of the choice of transport mode. When slower and less reliable services are selected, for example, it is necessary for shippers and buyers to carry higher levels of inventory, both order quantity stock and safety stock. Moreover, the selected service should be consistent with customer service goals while meeting customer service objectives.

In your text

Please read pages 222 and 223 of your text. These pages explain the competitive consideration and the appraisal of transport selection methods.

You will be expected to calculate the basic types of vehicle routing problems and worked examples of these are illustrated on pages 191-198. Please study these examples carefully.

Reading 6.3

Wisner, JD & Tan, KC (Fall 2000), 'Supply chain management and its impact on purchasing', The Journal of Supply Chain Management, pp. 33-42.

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