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1、Contemporary LogisticsTwelfth EditionChapter 4Organizational and Managerial Issues in LogisticsContemporary LogisticsTwelfth Learning Objectives (1 of 2)4.1 To explain organizational structure for logistics4.2 To compare traditional and contemporary organizational design for logistics4.3 To identify

2、 productivity issues and improvement efforts in logistics 4.4 To discuss quality issues in logistics Learning Objectives (1 of 2)4.Learning Objectives (2 of 2)4.5 To describe ways to manage theft and pilferage4.6 To review the concept of logistics social responsibility4.7 To articulate issues associ

3、ated with reverse logistics4.8 To report on programs designed to lessen the impact of terrorism on logistics systemsLearning Objectives (2 of 2)4.Organizing Logistics Within the Firm (1 of 8)Two key organizational logistics topicsOrganizational structure Organizational designOrganizing Logistics Wit

4、hin thOrganizing Logistics Within the Firm (2 of 8)Organizational structure for logisticsTwo basic structures include:Fragmented logistics structureLogistics activities are managed in multiple departments throughout an organizationUnified logistics structureMultiple logistics activities are combined

5、 into and managed as a single departmentOrganizing Logistics Within thOrganizing Logistics Within the Firm (3 of 8)Organizational structure for logisticsTwo basic structures for logistics departments include:Centralized logistics organizationCompany maintains a single logistics department that admin

6、isters the related activities for the entire company from the home officeDecentralized logistics organizationLogistics-related decisions are made separately at the divisional or product group level and often in different geographic regionsOrganizing Logistics Within thOrganizing Logistics Within the

7、 Firm (4 of 8)Organizational structure for logisticsJob title or corporate rank Leading-edge organizations tend to head the logistics department by senior-level personnelGenerally excluded from holding a “C-level” positionOrganizing Logistics Within thOrganizing Logistics Within the Firm (5 of 8)Org

8、anizational design for logisticsThree primary types of organizational design include:Hierarchical (functional)Top-down flowMatrixCross-functional responsibilitiesNetworkProcess philosophy focused on combining tasks into value-creating products and activitiesOrganizing Logistics Within thOrganizing L

9、ogistics Within the Firm (6 of 8)Organizational design for logisticsNetwork organizational design is manifested in terms of:RelevancyRefers to satisfying current and emerging customer needsFacilitated by developing mutually beneficial relationships with key customersAt a minimum, these relationships

10、 should provide an understanding of customer needs and wantsOrganizing Logistics Within thOrganizing Logistics Within the Firm (7 of 8)Organizational design for logisticsNetwork organizational design is manifested in terms of:ResponsivenessReflects the degree to which an organization can accommodate

11、 unique or unplanned customer requestsAchieved when the appropriate decision makers are provided with both relevant information and the authority to address unique or unplanned requestsOrganizing Logistics Within thOrganizing Logistics Within the Firm (8 of 8)Organizational design for logisticsNetwo

12、rk organizational design is manifested in terms of:FlexibilityIs an organizations ability to address unexpected operational situationsPredicated on avoiding early commitment to an irreversible course of actionOrganizing Logistics Within thManagerial Issues in Logistics (1 of 28)ProductivityQualityRi

13、skSustainabilityComplexityManagerial Issues in LogisticsManagerial Issues in Logistics (2 of 28)ProductivityCan be defined as the amount of output divided by the amount of inputProvides insight into the efficiency with which corporate resources are being utilizedManagerial Issues in LogisticsManager

14、ial Issues in Logistics (3 of 28)ProductivityThree ways to improve productivity include:Reduce the amount of input while holding output constantIncrease the amount of output while holding input constantIncrease output while decreasing inputManagerial Issues in LogisticsManagerial Issues in Logistics

15、 (4 of 28)ProductivityLabor productivityWarehousing and transportation are heavily dependent on human laborHuman labor is an input (i.e., workers receive wages or salaries)Productivity improvement efforts in logistics are often directed toward increasing the amount of output while holding input cons

16、tant (workers resistant to suggestions regarding reduced wages or salaries)Managerial Issues in LogisticsManagerial Issues in Logistics (5 of 28)ProductivityAsset productivityConcerns include:Space utilizationExcess capacity (unused available space)Can be unproductive as it may result in the purchas

17、e of additional equipment or facilities, which adds costs (input)May not yield additional output resulting in a productivity declineManagerial Issues in LogisticsManagerial Issues in Logistics (6 of 28)ProductivityAsset productivityConcerns include:Improving the output from existing assetsIncreases

18、productivity as inputs remain constant, but output is increasedManagerial Issues in LogisticsManagerial Issues in Logistics (7 of 28)QualityLogistics service qualityRelates to a firms ability to deliver products, material, and services without defects or errors to both internal and external customer

19、s11E.A. Morash, C. Droge, and S. Vickery, “Strategic Logistics Capabilities for Competitive Advantage and Firm Success,” Journal of Business Logistics 17, no. 1 (1996): 122.Managerial Issues in LogisticsManagerial Issues in Logistics (8 of 28)QualityQuality in logistics involves trade-offsIf inferio

20、r logistic service quality, customers may perceive lower value If superior logistic service quality than expected or required, organization may be adding unnecessary costOrganizations must try to match the quality levels of the logistic services they provide with the expectations of their customers

21、and the landscape in which they operateManagerial Issues in LogisticsManagerial Issues in Logistics (9 of 28)QualityVendors are expected to have quality programsVendors can demonstrate commitment to quality to potential buyers through achieving and maintaining quality program certificationISO (Inter

22、national Standards Organization) 9000 certification is an example of a quality program certificationManagerial Issues in LogisticsManagerial Issues in Logistics (10 of 28)QualityISO 9000Is a set of generic standards used to document, implement, and demonstrate quality management and assurance system

23、sIs applicable to both manufacturing and service firmsStandards are intended to help companies build quality into every core process in each departmentManagerial Issues in LogisticsManagerial Issues in Logistics (11 of 28)QualityISO 9000Firms demonstrating commitment to quality through training, rev

24、iews, and continuous improvement achieve initial ISO 9000 certificationOnce certification is obtained, audits are conducted annually and organizations can be recertified every three yearsCertification is credited withan increase in customer serviceimproved order accuracyenabling enhanced costs analy

25、sisManagerial Issues in LogisticsManagerial Issues in Logistics (12 of 28)QualitySix Sigma Is a quality-focused methodology that emphasizes the virtual elimination of business errorsArea covered under a normal curve is by six standard deviations is 99.99966 percentApproach suggests that there will b

26、e 3.4 defects, deficiencies, or errors per one million opportunitiesCan be applied to various logistics activities such as order packingManagerial Issues in LogisticsManagerial Issues in Logistics (13 of 28)QualitySix Sigma BenefitsReduced costsReduced errors and wasteReduced cycle timeDrawbacksOver

27、coming business cultural barriersInvesting required resources (both human and money)Gaining top management commitmentManagerial Issues in LogisticsManagerial Issues in Logistics (14 of 28)QualityLean Six Sigma Is a quality-focused methodology that integrates Six Sigma with the Lean approachIntegrate

28、s the goals and methods of these two approaches in pursuit of qualityUnique because it recognizes that organizations cannot focus only on quality or speedEmphasizes an organizational focus on improving quality as it relates to responsivenessManagerial Issues in LogisticsManagerial Issues in Logistic

29、s (15 of 28)QualityMalcolm Baldrige National Quality AwardRecognizes organizations for their achievements in quality and performanceEstablished in the late 1980sRestricted to firms headquartered in the United StatesEligibility initially limited to:Manufactures, services, and small businessesEligibil

30、ity expanded to include:Health care and educational institutionsManagerial Issues in LogisticsManagerial Issues in Logistics (16 of 28)RiskCan be viewed as susceptibility to disruptions that could lead to a loss for a firmCan take a variety of forms as it relates to logistics management activitiesRe

31、gularly occurring (or operational) risks (e.g., variability in demand or potential for a damaged shipment)Catastrophic risks (e.g., earthquakes or terrorist attacks)Managerial Issues in LogisticsManagerial Issues in Logistics (17 of 28)RiskLogistics uncertainty pyramid modelEstablished to identify s

32、ources of uncertainty that can affect the risk exposure for logistics activitiesIdentifies several types of uncertainty including shipper, customer, carrier, control systems, and externalManagerial Issues in LogisticsManagerial Issues in Logistics (18 of 28)RiskTerrorism is an example of catastrophi

33、c riskTerrorism can be defined as “an illegal use of or threat of force or violence made by a group or individual against a person, a company, or someones property with a goal of menacing the target, often grounded in politics or ideology.”22Terrorism, The American Heritage Dictionary of the English

34、 Language, 4th ed. (n.d.). Retrieved from D website: /browse/terrorism.Managerial Issues in LogisticsManagerial Issues in Logistics (19 of 28)RiskCreation of the Department of Homeland Security (DHS)Federal agencyGoalsTo prevent terrorist attacks in the U.S. To reduce the vulnerability of the U.S. t

35、o terrorismManagerial Issues in LogisticsManagerial Issues in Logistics (20 of 28)RiskThe 22 separate government entities incorporated into DHS include:Transportation Security Administration (TSA)Transportation Worker Identification Credential (TWIC)Customs and Border Protection (CBP)Container Secur

36、ity Initiative (CSI)Customs Trade Partnership Against Terrorism (C-TPAT)Importer Security Filing (ISF) rule, also known as “10+2”Managerial Issues in LogisticsTable 4.1: Timeline for Presenting Electronic Advance Manifest InformationInbound to the United StatesModeTimelineAir and courierFour hours p

37、rior to arrival in the United States, or “wheels up” from certainnearby airportsRailTwo hours prior to arrival at a U.S. port of entryOcean vessel24 hours prior to lading at foreign portTruckFree and Secure Trade (FAST): 30 minutes prior to arrival in the United States;non-FAST: one hour prior to ar

38、rival in the United StatesOutbound from the United StatesModeTimelineAir and courierTwo hours prior to scheduled departure from the United StatesRailTwo hours prior to the arrival of the train at the borderOcean vessel24 hours prior to departure from U.S. port where cargo is ladenTruckOne hour prior

39、 to the arrival of the truck at the borderSource: Erlinda Byrd, “Rules for Improving Cargo Security,” Customs and Border Protection Today, March 2004.Table 4.1: Timeline for PresenManagerial Issues in Logistics (21 of 28)RiskTheft is another logistics risk issue that confronts many managersTheft (st

40、ealing) can be defined as the taking and removing of personal property with the intent to deprive the rightful owner of it.33/dictionaryManagerial Issues in LogisticsManagerial Issues in Logistics (22 of 28)RiskThoughts regarding theftInsurance companies may reimburse for loss, but time and costs te

41、nd not to be coveredTheft results in the planned flow of goods being interrupted, which can lead to stockoutsTheft can factor into facility location decisionsManagerial Issues in LogisticsManagerial Issues in Logistics (23 of 28)RiskThoughts regarding pilferage (employee theft)Transportation and war

42、ehousing operations are particularly vulnerable to pilferageManaging pilferage begins with the hiring processZero-tolerance pilferage policyKeep goods moving through the systemRecent increase in pirate attacksManagerial Issues in LogisticsFigure 4.1: Shipping Container Locking Handle with a Uniquely

43、 Numbered Customs SealSource: Philip Cridland/Alamy Stock PhotoFigure 4.1: Shipping ContainerManagerial Issues in Logistics (24 of 28)SustainabilityLogistics social responsibilityCorporate social responsibility issues that relate directly to logisticsManagerial Issues in LogisticsManagerial Issues i

44、n Logistics (25 of 28)SustainabilityLogistics social responsibilityPotential dimensions include:EnvironmentEthicsDiversitySafety PhilanthropyHuman rightsOthersManagerial Issues in LogisticsManagerial Issues in Logistics (26 of 28)SustainabilityReverse logisticsIs the process of managing return goods

45、Exceeds $100 billion in U.S. aloneCan be four to five times more expensive than forward logisticsProcess can take 12 times as many steps as forward logisticsManagerial Issues in LogisticsManagerial Issues in Logistics (27 of 28)SustainabilityReverse logisticsReverse logistics process focuses on:Why product

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