Transcript e-Logistics Services From Warehouse to Logistics Service Center 黃光彩 博士 64157
e-Logistics Services
From Warehouse to Logistics Service Center
64157
電子商務模式設計與應用 國立中山大學企管所
2002 Spring, Week 4-2
TASKCo Corporation
太世科
886-2-8772-2583
黃光彩 博士 太世科公司 2002/04/20 1
CONFIDENTIAL
Complexity of a Typical Global Supply Chain Freight Ocean Forwarder Customs Agent liner Supplier Roadways Plant Roadways Port Airways Road + Rail Home Consumer Customer (Retailer)
Supercharging Supply Chains Ernst & Young LLP
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Customer’s Warehouse Roadways RDC CONFIDENTIAL
The Evolution of Enterprise Applications % Penetration ERP Supply Chain Execution 100% Time
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CONFIDENTIAL
What is Logistics?
Logistics is defined as the process of movement of materials and products into, through and out of a firm.
The Logistics Flow Chart SUPPLIERS SALES FUNCTION (SUPPLIER) TRANSPORTATION PURCHASING FUNCTION (DISTRIBUTOR) PURCHASING FUNCTION (CUSTOMER) TRANSPORTATION SALES FUNCTION (DISTRIBUTOR) WAREHOUSING CONFIDENTIAL
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The Logistics Channel
Suppliers
Sales (Supplier)
Transportation
Purchasing (Distributor)
Warehousing
Sales (Distributor)
Transportation
Purchasing (Customer)
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CONFIDENTIAL
Cross Functional Nature of Logistics
Front end - Distributor Purchasing and Supplier Marketing Interface
Middle - Warehousing and Transportation
Back end - Customer Contact (Marketing) FRONT END MIDDLE
Functions of Logistics
BACK END CONFIDENTIAL
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Key Logistics Activities
Customer Service Levels - Set by Marketing based on Operations Capabilities
Transportation
Routing and Vehicle Scheduling
Inventory
R.M. and F.G. stocking policies Break Bulk Consolidation
CONFIDENTIAL
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Support Activities
Warehousing
How many?
What configuration?
Where to hold inventory?
Materials Handling - ASRS, RF, Bar Coding, Etc.
Purchasing - Supplier selection, Purchase timing, Quantity, and Quality
Scheduling - Interface marketing and production
Information Maintenance
Data Collection Data Integrity 8
CONFIDENTIAL
Objectives of Logistics Strategy
Process Reduction - Cycle time, Lead time, Automation
Capital Reduction - Inventory investment, number of warehouses
Service Improvement - the antithesis of the foregoing CONFIDENTIAL
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Industry Specific Logistics Services Traditional WMS Providers Segment Market by Customer Size Traditional: CPG New Logistics Center Segments Market by Customers’ Vertical Market L Apparel Grocery Opportunity: Healthcare Food Service Electronics Automotive 3PL M S Industry Industry CONFIDENTIAL
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Logistics Goal: Close Gaps in the Supply Chain Retailer Requirements
Speed to compliance
Lower inventory
Cross-docking
Value-added services
Higher number of SKUs
Direct-to-consumer
Configure-to-order Imperfect Information Supplier Requirements
Customer / retailer satisfaction
Operational productivity
Transportation efficiency
Improved in-stock positions
Lower inventory
Flexible business practices CONFIDENTIAL
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Traditional Distribution Systems Used Multi-Tiered Warehousing Bulk Finished Goods Manufacturer’s Distribution Center Manufacturer Retail Outlet Bulk Shipments Store Distributions Local Retail Distribution Center
Hold inventory
Value added services CONFIDENTIAL
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Traditional Distribution Center Process
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Inbound receipt of goods
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Storage of goods 2
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Bulk outbound shipments 1 3 CONFIDENTIAL
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Quick Response Initiatives Streamline Distribution Process Manufacturer Retail Outlet
Lower inventory Greater availability
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Manufacturer’s Distribution Center
Advanced shipping notice Bulk or discrete shipments Store specific pricing Aisle specific palletizing High velocity
Very high volume Mass personalization Integrated TMS requirements Local Retail Distribution Center
Cross-docking Flow-through CONFIDENTIAL
Value-added Logistics Center Process 3
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Inbound shipment tracking
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Yard management
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Inbound receipt of goods
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Storage of goods
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Order picking
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Value-added services
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Order packing
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Pack and hold
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Outbound customer compliant shipments 4 2 8 5 1 9 7 6 CONFIDENTIAL
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Continuously Changing Demands of Retailers K-MART Western Publishing # Orders Destination Frequency IT Requirement Old Practice 6 Warehouse Monthly Telephone/Paper New Practice 17,000 Individual Stores Weekly Electronic Advanced Ship Notice CONFIDENTIAL
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From Warehouse to Distribution Center “In order to enable greater customer responsiveness, the traditional role of the warehouse (WMS) is moving toward distribution center. This is a major force in driving the demand for e Logistics applications.” CONFIDENTIAL
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Global Operations & Logistics Framework Geographical Integration Sectorial Integration
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Functional Integration CONFIDENTIAL
Geographical Integration
Impact of Distribution and Transportation greater due to ‘Globalilty’ Borders becoming more porous in terms of trade Production on global scale --- no longer country-specific International Sourcing
Selling in Multiple Markets Data Processing and Communication technology help with the geographical integration. CONFIDENTIAL
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Functional Integration
Logistics - cross-functional in nature. Cuts across activities and creates interfaces to optimize overall performance.
Flow management in Global Logistics difficult
Internationalized Markets
Competitive products in the Market
Adaptation of new technology Government Regulations CONFIDENTIAL
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Sectorial Integration
Companies are handling logistics issues together beyond corporate boundaries.
Efficient Consumer Response (ECR) Manufacturer Collaborate
Final aim
Distributor
to reach customer
Consumer CONFIDENTIAL
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Freight Forwarders
Freight providers have the earliest instance of hub and spoke systems Tenders for freight services made worldwide Development of Intermodal freight provision Mergers between freight providers -- e.g. Airplane companies
Globalization brings up several issues in order to satisfy proximity service
Use of manufacturer’s sales network
Setting up Proximity Distribution Centers (PDC) Developing central hub for express services and dispatch orders Setting up inventory of class A products with storage operator, distributor or agent CONFIDENTIAL
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International Trading Operators
International Freight Forwarders
Nonvessel-operating Common Carriers (NVOCC)
Customs House Brokers
Export Management companies
Export Trading Companies
Shippers Associations
Export Packers CONFIDENTIAL
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Dynamic Forces of Global Logistics The firms adopt different orientations with varying intensities due to the dynamic behavior of the global business environment.
RESOURCES
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CONFIDENTIAL
Global Logistics’ Orientation
Resource Oriented Logistics
Emphasis towards optimal use of resources -- capital,
materials and people Focuses on the relationship between the functional and the geographical Optimize Functional Geographical Resources CONFIDENTIAL
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Global Logistics’ Orientation
Information Oriented Logistics
Emphasis towards optimal use of information.
Focuses on the relationship between the sectorial and the geographical dimensions Sectorial Geographical Optimal Performance CONFIDENTIAL
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Global Logistics’ Orientation
User Oriented Logistics
Emphasis on the final customer.
Using all the supply chain partners to bring their expertise in order to best service the customer
User oriented focus brings about flexibility in the logistics channel Customer CONFIDENTIAL
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Consumer Logistics:
“
movement and handling of goods and people that is performed by consumers to facilitate consumption.” Granzin (1990) CONFIDENTIAL
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The Downstream Supply Chain M W R C M = manufacturer W = wholesaler
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R = retailer CONFIDENTIAL C = consumer
Consumer (Logistics) Behavior Need Recognition Transportation Shopping/Search Exchange Transportation & Storage
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Production/Consumption CONFIDENTIAL
Consumer Behavior--Two Views
MARKETING Problem Recognition Search Evaluation of Options LOGISTICS Need Arises Transportation Shopping, Checkout Purchase Decision Purchase Act Transportation Storage Postpurchase Evaluation Consumption
CONFIDENTIAL
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Time & Money Where does the money go?
•commodity costs •convenience costs
(Kelley 1958) Where does the time go?
•travel time •shopping time •checkout time 32
(Downs 1961) CONFIDENTIAL
Crowell & Bowers (1977)
TC = price + transportation + time Add cost of time to the equation and consumers visit fewer stores.
CONFIDENTIAL
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“
Prisoner of Time,” Ms., Oct. 1988
“
during her or his lifetime, the average American squanders five months waiting for traffic lights to change, eight months opening unsolicited mail, a year looking for misplaced objects, two years in futile attempts to return phone calls, four years doing basic housework, and five years waiting in line--a total of 13 years gone up in smoke.” Pogrebin (1988) CONFIDENTIAL
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The Alberta Phone Survey Random-digit dialing 10 call backs CATI: computer-assisted telephone interviews 30-minute confidential interview Urban vs. Rural Topic: grocery shopping R = 67.1%
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CONFIDENTIAL
Shopping List?
YES ------- 66% NO -------- 34%
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CONFIDENTIAL
Transportation Mode CAR --------- 91% FOOT --------- 7%
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CONFIDENTIAL
Stockout Response Go to Store B Stockout of item x at Store A Buy item y Backorder (defer purchase)
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Response to Stock-out of Item x at Store A Item x at Store B ------- 47% Item y at Store A ------- 15% Defer purchase ---------- 32%
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Time and Availability Average Travel Time = 13.8 minutes Average Shopping Time = 41.2 minutes Average Checkout Time = 12.5 minutes Average Stock-out = 1.4 items
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Predictors of Consumer Satisfaction Stock Availability ------------- YES Check-out Time --------------- YES Shopping Time ----------------- NO Travel Time --------------------- NO
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How to: Please the Consumer reduce product prices save consumers time (Bender 1964) give TLC!
•Tender Loving Care •Total Logistics Costs 42
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TC = pQ + c(I - A) + a(2D) + wT p = purchase price Q = quantity purchased c = compromise cost I = ideal item; A = actual item a = cost of travel ($/mile) D = distance to store w = cost of time ($/hour) T = time (travel + shopping + checkout)
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CONFIDENTIAL
TC = pQ + c(I - A) + a(2D) + wT p = purchase price Q = quantity purchased FOB origin vs. destination Sales tax Q = f{family size; vehicle capacity; location (urban vs. rural); p}
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CONFIDENTIAL
TC = pQ + c(I - A) + a(2D) + wT c = compromise cost I = ideal item; A = actual item stock-outs?
consumer risk perceptions reverse logistics implications
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TC = pQ + c(I - A) + a(2D) + wT a = cost of travel ($/mile) D = distance to store consumer perceptions of travel costs retail (car, gas) vs. e-tail (computer, AOL) reverse logistics implications
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CONFIDENTIAL
TC = pQ + c(I - A) + a(2D) + wT w = cost of time ($/hour) T = time (travel + shopping + checkout) consumer perceptions of time retail vs. e-tail retailer impacts checkout, but not travel
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CONFIDENTIAL
“
Home online mantra is ‘logistics’”
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If the key to real-world retailing is location, location, location, then for e-commerce it’s logistics, logistics, logistics.” Carroll (2000) CONFIDENTIAL
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“
E-Commerce Success . . Order Fulfillment Chaos”
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Companies are figuring out how to sell goods over the Internet, but getting the goods to the customer is another story. As online orders from consumers and businesses soar past the 2 billion per year mark, Net sellers will be faced with logistics chaos.” Anonymous (1999) CONFIDENTIAL
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B2C e-commerce Markets National markets Local markets XXX Hour delivery markets Copacino (2000)
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CONFIDENTIAL
Caltagirone (2000)
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the online grocery business will explode”
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CONFIDENTIAL
Murphy (2000) Online Grocery Sales 1998 $ 350,000,000 2002 $3,500,000,000
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CONFIDENTIAL
e.g. e-grocers Peapod.com
IN BUSINESS Webvan.com
BANKRUPT Groceryworks.com BOUGHT BY SAFEWAY
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CONFIDENTIAL
Peapod.com
Top-quality products Competitive prices Convenience First-rate customer service
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Webvan.com
Selection Quality Value Convenience
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B2C Logistics Options Consumer pick-up (drive through) Home delivery Drop-off/pick-up (mini-storage) Office delivery
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CONFIDENTIAL