1. INTRO TO LOGISTICS
Ms. Biba S. Kavass

2. Operations Management
Operations Management – Planning, scheduling and control of the activities that transform inputs into finished goods and services
Elements:
Planning
Scheduling
Technology
Logistics
Supply Chain Management
Quality Assurance

3. Operations Management – Transformation Process

4. What Does it Take to Make Thanksgiving Dinner?

5. Can You Identify the Parts of Operation Management?
While watching the video, identify the different parts of operation management:
Planning
Scheduling
Technology
Logistics
Supply Chain Management
Quality Assurance

6. READING: Operations Management in Manufacturing and Production
Directions: Read the assignment “Producing Quality Jetboards” and answer the following questions. Questions must be answered in complete sentences.
What was the most important task PowerSki set for itself?
What are the major responsibilities of an operation manager?
What are 3 of the goals set by marketing managers for the manufacturer?
What is a disadvantage to mass production?
Provide an example of mass customization.
What factors should be considered when choosing a location?
What 3 criteria did PowerSki use to choose a location?
What tool does a company use to decide on the quantity of products they will produce? Describe how the tool works?

7. DEFINITION Logistics is defined as:
“that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet consumers’ requirements.”

8. Supply Chain Manager vs. Logistics Manager
Who – from whom products will be bought
What – what products are involved in the supply chain
When – when products will be bought
Logistics Manager:
Decides how – takes over to get the products from the seller to the buyer

9. LOGISTICS AT ITS BEST

10. Economic Impact of Logistics
Logistics alone accounts for more than 9.5% of U.S. Gross Domestic Product!
Approximately 10 million logistic jobs in the US
Expected job growth rate of 8% through 2022
Average annual earnings per worker in 2017 for the Transportation and Logistics Sector averaged $69,669 which was 12% higher than average earnings per worker for all US industries
Over $1.3 trillion is spent on transportation, inventory, and related logistics activities.
Source: Council of Supply Management Professionals

12. Why Logistics is Important
Utility
Advances in Technology
Globalization of Markets
Push towards Sustainability

13. Economic Utility
Utility – value, or usefulness, that a purchaser receives in return for exchanging his money for a company's goods or services– creates demand

14. Types of Utility Types of Utility:
Form/Transformation Utility – value added to goods through a manufacturing or assembly process
Place Utility – moving goods from production point to where demand exists
Time Utility – value added by having good/service at a demand point at a specific time when it is needed
Quantity Utility – delivering proper quantities of an item to where it is demanded
Possession Utility – created by basic marketing activities related to promotion and sales of goods/services

15. Practice: Types of Utility
Directions: Working with a partner, come up with an example for each type of utility.
Utility
Example
Form
Place
Time
Quantity
Possession

16. Storyboard for Economic Utility

17. PROJECT: CREATE YOUR OWN STORYBOARD
Directions: Create your own storyboard using the 5 types of economic utility. You will need to save your storyboard on to your desktop so that we can print them out.

18. Factors - Increased Use of Logistics

19. WHAT IS INCLUDED IN LOGISTICS?

20. Types of Logistics
Business Logistics – That part of the supply chain that plans, implements, and controls the efficient, effective, flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customer requirements.
Military Logistics – Design and integration of all aspects of support for the operational capability of the military forces (deployed or in garrison) and their equipment to ensure readiness, reliability, and efficiency.
Event Logistics – Network of activities, facilities, and personnel required to organize, schedule, and deploy the resources for an event to take place and to efficiently withdraw after the event.
Service Logistics – Acquisition, scheduling, and management of facilities, assets, personnel, and materials to support and sustain a service operation or business.

21. Movement of Goods/Services
Point of Origin – when and where manufactured or processed
Point of Consumption – when and where received by end user

22. Case Study – Senco Electronics Company
Directions: Read the case study and then answer the following questions in complete sentences:
What are the types of transportation the company has to decide between?
If you were Skip Grenoble, which alternative would you advise Jim Beierlein to implement?
What factors were involved in your decision as to the type of transportation to use?

23. Simple Supply Chain

24. Simple Supply Chain
Supplier – company that supplies raw materials or other goods to be used in manufacturing process to produce finished good
Distribution Center – location from which finished goods are sorted and shipped to various retailers or other customers
Warehouses – locations in which goods are stored throughout the supply chain
Retailer – sells finished goods to end user
End User – customer and final consumer of finished goods
Manufacturer – company that processes,
manufactures or assembles finished product

25. The Supply Chain Game Pick a partner
Write both your names on a sheet of paper and title it “The Coffee King Game”
You will need to go through all the scenarios and write your paths and results down on your paper.
At the end of the game, please answer the following question:
What factors did you consider when you chose to use the pack mule? The truck?

26. LOGISTICS MANAGEMENT
Materials Management: involves the bringing of raw materials and supplies to where they are used to produce products and merchandise, usually a manufacturing company, and moving them through the company until they become finished products – inbound logistics
Physical Distribution Management: involves the movement of finished products and merchandise from the end of the production line to the consumer – outbound logistics

28. FLOWS IN LOGISTICS FLOW:
Transportation represents flow of inventory from points of origin in supply chain to destinations, or points of use and consumption.

29. TYPES OF FLOWS Forward Flow:
Inbound Logistics – procurement of materials and goods from supplier locations
Outbound Logistics – distribution of materials and goods to customer locations
Reverse Flow:
Product returns, recycling, reuse of materials, repair and waste disposal

30. Supply Chain Network
Midstream/Internal – transformation of raw materials into semi-or finished products - manufacturer
Upstream – material flow from suppliers to manufacturer - activities occur before main organization (to the left – inbound)
Downstream – distribution of products to customers - activities occur after main organization (to the right – outbound)

31. Let’s Practice
Directions: Label each part of this supply chain as either Upstream, Midstream, or Downstream.

32. Level of Suppliers
Tier I Suppliers – provides products or services directly to manufacturer
Tier II Suppliers – provides products or services directly to Tier I supplier

33. Example of Supplier Levels
Tier II Supplier
Alcoa Corporation
Tier I Supplier
Ball Corporation
Manufacturer
The Coca-Cola Company

34. Who is the 1st Tier Supplier?
In the SweetAction supply chain, the cows produce milk. The farmer collects the milk and sends it to Daisy, Inc. for the milk to be processed. Daisy, Inc. sends the processed milk to Breyer’s Ice Cream. Breyer’s turns the milk into vanilla ice cream and sends it to DOT Foods Distribution Center. DOT Foods distributes the vanilla ice cream to Kroger’s in Cordova, TN. Kroger’s sells the vanilla ice cream to Mr. Jones.
Who is the 1st Tier Supplier?
Daisy, Inc.

35. Supply Chain Network Example

36. Let’s Take It One Step Further
Label the following: Tier I Supplier, Tier II Supplier, Connects Upstream to Midstream, What level is underground gas storage, Name 2 customers

37. Distribution Centers
Distribution Centers – emphasize rapid movement of products through a facility -
offers value-added services like product mixing, order fulfillment, cross docking, packaging, etc.
Warehouse – emphasizes storage of products – usually doesn’t serve external customers
Fulfillment Centers – represent a special type of distribution center that is focused on e-commerce orders (ex. Amazon)
Hub - refers to a central warehouse that's used to cater various destinations that may be customers, stores or other smaller warehouses

38. Major Functions of Distribution Center

39. DHL HUB – CINCINNATI, OHIO

41. DOT FOODS REGIONAL DISTRIBUTION CENTERS
ACTIVITY:
On your US Interstate Maps, map out the locations of ALL 11 Dot Foods Regional Distribution Centers using your post-it flags
Indicate which location is the headquarters
If you were going to add a new Regional Distribution Center, where would you locate it? Flag your new Regional Distribution Center on the map and write down 3 reasons that you selected that location

42. Logistics and Marketing
Marketing places heavy emphasis on customer satisfaction
Logistics aids by:
Reducing costs of goods/services = lower prices
Broader variety of products closer to consumer

43. The Future is Now