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1 Contents List of figures List of tables Preface Abbreviations xv xxi xxiii xxix PART 1 CONCEPTS OF LOGISTICS AND DISTRIBUTION 1 Introduction to logistics and distribution 3 Introduction 3 Definitions 4 Elements of logistics and distribution 6 Historical perspective 7 Importance of logistics and distribution 10 Logistics and distribution structure 13 The industry and education 13 Summary 16 2 Integrated logistics and the supply chain 19 Introduction 19 The total logistics concept 19 Planning for distribution and logistics 21 Globalization and integration 27

2 Integrated systems 28 Logistics and supply chain management 30 Competitive advantage through logistics 32 Summary 34 3 Customer service and logistics 35 Introduction 35 The components of customer service 36 A customer service policy 37 An approach for developing a customer service policy 38 Levels of customer service 43 Measuring customer service 44 The customer service explosion 47 Summary 47 4 Channels of distribution 49 Introduction 49 Channel types and structure 50 Channel selection 55 Key drivers for third-party distribution 63 Key issues in third-party distribution and logistics 68 Summary 70 5 Key issues and challenges for logistics 73 Introduction 73 The external environment 74 Supply 75 Distribution 76 Retailing 77 The consumer 78 Summary 79 PART 2 PLANNING FOR LOGISTICS 6 Planning framework for logistics 83 Introduction 83 Pressures for change 83 Strategic planning overview 85 Logistics design strategy 88

3 Product characteristics 91 The product life cycle 95 Packaging 96 Unit loads 97 Summary 98 7 Logistics processes 99 Introduction 99 The importance of logistics processes 100 Key logistics processes 101 Approach 105 Tools and techniques 106 Summary Planning physical distribution 113 Introduction 113 The role of depots and warehouses 115 Cost relationships 116 A planned approach or methodology 125 Matching logistics strategy to business strategy 133 Depot site considerations 134 Summary Logistics management and organization 139 Introduction 139 Relationships with other corporate functions 140 Logistics organizational structures 141 Organizational integration 143 The role of the logistics or distribution manager 147 A world-class logistician the logistics director 149 Payment schemes 151 Summary Distribution: tactical and operational techniques 157 Introduction 157 The selection of temporary staff and assets 158 Vehicle utilization 160 Vehicle capacity 162 Fleet utilization 163

4 Vehicle monitoring 165 Zero-based budgets 165 Summary Manufacturing and materials management 167 Introduction 167 Manufacturing resource planning (MRPII) 171 Material requirements planning (MRP) 171 The MRP system 172 Flexible fulfilment (postponement) 176 The effects on distribution activities 177 Summary 177 PART 3 PROCUREMENT AND INVENTORY DECISIONS 12 Basic inventory planning and management 181 Introduction 181 The need to hold stocks 182 Types of stock-holding 183 The implications for other logistics functions 184 Inventory costs 186 Inventory replenishment systems 187 Reorder quantities 191 Demand forecasting 194 Summary Inventory and the supply chain 199 Introduction 199 Problems with traditional approaches to inventory planning 200 Different inventory requirements 201 The lead-time gap 202 Inventory and time 203 Analysing time and inventory 205 Inventory planning for manufacturing 207 Inventory planning for retailing 208 Summary Procurement 215 Introduction 215

5 Setting the procurement objectives 216 Managing the suppliers 222 Delivered price 225 Summary 225 PART 4 WAREHOUSING AND STORAGE 15 Principles of warehousing 229 Introduction 229 Strategic issues affecting warehousing 230 Costs 232 The role of warehouses 233 Types of warehouse or distribution centre 234 Warehouse operations 235 Objectives and principles of good warehouse design and management 238 Communication and information 241 Packaging and unit loads 241 Summary Storage systems and equipment 245 Introduction 245 Stock location 246 Palletized storage 248 Palletized storage comparison of systems 257 Small item storage systems 257 Other types of storage 263 Summary Handling systems 265 Introduction 265 Powered industrial trucks and attachments 266 Cranes 279 Conveyors for unit load handling 281 Summary Order picking and replenishment 287 Introduction 287 Principles of order picking 288 Order picking regimes 289

6 Methods of order picking 291 Information in order picking 296 Picking productivity 298 Replenishment factors 298 Summary Advanced systems 301 Introduction 301 AS/RS systems for unit loads 302 Order picking systems 305 Sortation systems 306 Automated guided vehicles (AGVs) 307 Robotic applications 309 Factors influencing the choice of technology 309 Summary Warehouse design 313 Introduction 313 Design procedure 314 Summary Warehouse management and information 325 Introduction 325 Performance monitoring 325 Information technology 328 Warehouse management computer package characteristics 328 Data capture and transmission 330 Radio data communication 331 Summary 332 PART 5 FREIGHT TRANSPORT 22 International logistics: modal choice 335 Introduction 335 Operational factors 337 Transport mode characteristics 339 Method of selection 343 Aspects of international trade 345 Summary 349

7 23 Intermodal transport 351 Introduction 351 Intermodal equipment 352 Intermodal vehicles 356 Intermodal infrastructure 360 Freight facilities grants 362 Track access grants 362 Summary Road freight transport: vehicle selection 365 Introduction 365 Main vehicle types 366 Types of operation 369 Load types and characteristics 375 Main types of vehicle body 378 The wider implications of vehicle selection 383 Vehicle acquisition 385 Summary Road freight transport: vehicle costing 387 Introduction 387 Reasons for road freight transport vehicle costing 388 The main types of costing system 389 Vehicle standing costs 391 Vehicle running costs 395 Overhead costs 397 Costing the total transport operation 399 Whole life costing 400 Vehicle cost comparisons 403 Summary Road freight transport: legislation 407 Introduction 407 Operator licensing 408 Driver licensing 409 Drivers hours regulations 410 Tachographs 411 Vehicle dimensions 413 Summary 416

8 27 Road freight transport: planning and resourcing 417 Introduction 417 Need for planning 418 Fleet management 419 Transport resource requirements 420 Vehicle routeing and scheduling problems 422 Data for manual and computer routeing and scheduling 425 Manual methods of vehicle routeing and scheduling 429 A detailed approach to manual scheduling 431 Computer routeing and scheduling 437 Other computer applications 438 Summary 441 PART 6 INFORMATION AND THE SUPPLY CHAIN 28 The monitoring and control of logistics and distribution operations 445 Introduction 445 Why monitor? 447 Monitoring and control: a general approach 448 What to measure against? 450 An operational planning and control system 453 Leaders and laggers 455 Good practice 456 Influencing factors 460 Detailed and key measures 461 Summary Benchmarking 465 Introduction 465 Why should an organization engage in benchmarking? 466 How to conduct a benchmarking exercise 466 Formal benchmarking systems 472 Benchmarking distribution operations 473 Summary IT in the supply chain 483 Introduction 483 Basic communication 484 Supply chain planning 485 Warehousing 487

9 Inventory 488 Transport 488 Other applications 490 Summary 491 PART 7 ASSOCIATED FACTORS 31 Outsourcing: the selection process 495 Introduction 495 Approach 495 Summary Security and safety in distribution 511 Introduction 511 Vehicle security 511 The depot 516 Personnel 518 Useful publications and sources of information 519 Safety in the distribution centre 520 Summary Logistics and the environment 523 Introduction 523 The European Union and environmental legislation 524 Logistics and environmental best practice 526 Summary New concepts in logistics 539 Introduction 539 Trading using the Internet 540 Home shopping 542 Efficient consumer response (ECR) 544 Lean thinking 545 The agile supply chain 546 Fourth-party logistics 547 Alternative fuels 550 Summary 553 References 555 Index 557

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