International Logistic
Chapter 1 to 4
Chapter 1
· Economy utility
o Form utility
o Possession utility
o Place utility
o Time utility
· Increase the Importance of logistic
o Technological advances
o Advances in retailing
o Globalization of trade
o Changes in consumer behavior
o Reduction in economic regulation
· Total cost approach
· Logistic relationship within the firm
o Finance
o Production
o Marketing
§ Place / Prices / Product / promotion
§ Channel
· Ownership channel
· Negotiation channel
· Financing channel
· Promotion channel
· Logistic channel
§ Channel member
· Manufacturers
· Wholesalers
· Retailers
Types of information management systems
- Office automation system
o Such as spreadsheet, presentation, create documents
- Communication system
o Such as Fax machines, Email, smartphone
- Transaction processing system
o Such as electronic data interchange (EDI)
o Such as Automatic identification technologies
§ Machine vision
§ Voice-data entry
§ Radio-frequency identification (RFID)
- Management information system and Executive information system
o A logistics information system (LIS) can be defined as “the people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to logistics decision-makers.”
- Decision support system (DSS)
o Help managers make decisions by providing information, models, or analysis tools
o Such as Vehicle routing issues, Inventory control decisions, automatic order picking systems, warehouse management systems
o Data mining, data on data warehouse
- Enterprise system
o Create and maintain consistent data processing methods and an integrated database across multiple businesses functions
o Such as enterprise resource planning （ERP）
- Internet influence on logistic
o Online retailing
o Cloud computing
o Electronic procurement
- Benefit of internet
o Transactional benefits
o Compliance benefit
o Information benefits
o Price benefits
o Easier drawback
o Faster and cheaper cost
Chapter 3
- Generic Strategy
- Cost leadership strategy
- Differentiation strategy
- Focus strategy
- Functional Strategy
- Marketing
- Finance
- Manufacturing
- Procurement
- Logistics
- Strategic Profit Model (SPM)
- Return on investment (ROI)
- Return on Net Worth (RONW)
- Return on Assets (ROA)
Chapter 4
Organizational structure
- Fragmented logistic structure
a. Logistic activities manage by multiple departments(decentralize)
- Unified logistics structure
a. Logistic activities combine and managed by only a single department (centralize)
- Organizational design
1. Hierarchical
a. Top-down pyramid
2. Matrix
a. Cross functional
3. Network
a. combining tasks into value-creating products and activities
- Managerial Issues in Logistics
- Relevancy
- Responsiveness
- Flexible
- Productivity
- Quality
- ISO (International Standards organization)
- Malcolm Baldrige National Quality Award
- Six Sigma
- About Six Sigma
- Define the problem and desired outcome measure the ability of the process
- Analyze the data and identify the root cause of variations (defects)
- Improve or modify the process so that fewer variations (defects) are produced
- Control the process. Prevent and correct variations before they result in defects
ii. A process must not produce more than 3.4 defects per million opportunities.
iii. Tools to support six Sigma
1. VSMs
2. Capability Analyses
3. Five Whys
4. PDCA
5. SPC
6. Risk
a. Such as Terrorism, natural disaster
b. Creation of DHS (Department of homeland security) to prevent terrorist attack in the. U.S
7. Sustainability
a. Reverse logistic
b. Potential dimensions include
i. Environment
ii. Ethic
iii. Diversity
iv. Safety
v. Philanthropy
vi. Human rights others
8. Complexity
a. Network complexity
b. Process complexity
c. Range complexity
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