i The HANDBOOK Handbook of THE OF Logistics & & Distribution Management MAnAgEMEnt 4th 5thEDItION EDITION EDItED by Croucher, Alan Rushton, Phil AlAN RushtON, CROuChER, PeterPhIl Baker PEtER bAkER ii Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publishers or any of the authors First published in Great Britain and the United States in 1989 by Kogan Page Limited Second edition 2000 Third edition 2006 Fourth edition 2010 Fifth edition 2014 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 2nd Floor, 45 Gee Street London EC1V 3RS United Kingdom www.koganpage.com 1518 Walnut Street, Suite 1100 Philadelphia PA 19102 USA 4737/23 Ansari Road Daryaganj New Delhi 110002 India © Alan Rushton, Phil Croucher, Peter Baker, 2006, 2010, 2014 © Alan Rushton, John Oxley and Phil Croucher, 2000 © Alan Rushton and John Oxley, 1989 The right of Alan Rushton, Phil Croucher, Peter Baker to be identified as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 ISBN E-ISBN 978 7494 6627 978 7494 6628 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Rushton, Alan The handbook of logistics and distribution management : understanding the supply chain / Alan Rushton, Phil Croucher, Peter Baker pages cm Revised edition of The handbook of logistics & distribution management, 4th ed., published in 2010 ISBN 978-0-7494-6627-5 – ISBN 978-0-7494-6628-2 (ebook) 1. Physical distribution of goods–Management– Handbooks, manuals, etc. 2. Business logistics. I. Croucher, Phil, 1954- II. Baker, Peter, 1950- III. Title HF5415.7.R87 2014 658.7–dc23 2013033897 Typeset by Graphicraft Limited, Hong Kong Printed and bound in India by Replika Press Pvt Ltd iii Con t e n t s List of figures List of tables Preface Abbreviations viii xv xvi xxi Part 1 Concepts of logistics and distribution 01 Introduction to logistics and distribution Introduction 3; Scope and definition 4; Historical perspective 7; Importance of logistics and distribution 9; Logistics and supply chain structure 14; Summary 15 02 Integrated logistics and the supply chain Introduction 16; The total logistics concept 16; Planning for logistics 19; The financial impact of logistics 22; Globalization and integration 24; Integrated systems 25; Competitive advantage through logistics 27; Logistics and supply chain management 28; Summary 30 16 03 Customer service and logistics Introduction 32; The importance of customer service 32; The components of customer service 34; Two conceptual models of service quality 37; Developing a customer service policy 39; Levels of customer service 46; Measuring customer service 47; The customer service explosion 50; Summary 51 32 04 Channels of distribution Introduction 52; Physical distribution channel types and structures 53; Channel selection 57; Outsourcing channels 61; Summary 65 52 05 Key issues and challenges for logistics and the supply chain Introduction 66; The external environment 68; Manufacturing and supply 71; Logistics and distribution 74; Retailing 81; The consumer 83; Summary 86 66 iv Contents Part 2 Planning for logistics 87 Planning framework for logistics Introduction 89; Pressures for change 89; Strategic planning overview 91; Logistics design strategy 94; Product characteristics 96; The product life cycle 99; Packaging 100; Unit loads 101; Summary 101 89 Logistics processes Introduction 103; The importance of logistics processes 103; Logistics process types and categories 105; Approach 108; Tools and techniques 110; Summary 116 103 Supply chain segmentation Introduction 117; Product segmentation 117; Demand and supply segmentation 119; Marketing segmentation 121; Combined segmentation frameworks 122; Implementation 123; Summary 124 117 Logistics network planning Introduction 125; The role of distribution centres and warehouses 126; Cost relationships 128; A planned approach or methodology 136; Initial analysis and option definition 138; Logistics modelling: logistics option analysis 143; Evaluate results: matching logistics strategy to business strategy 147; Practical considerations for site search 148; Summary 150 125 10 Logistics management and organization Introduction 151; Relationships with other corporate functions 151; Logistics organizational structures 153; Organizational integration 155; The role of the logistics or distribution manager 158; Payment schemes 160; The selection of temporary staff and assets 164; Summary 167 151 11 Multichannel fulfilment Introduction 168; Issues 169; Food retailing 170; Non-food retailing 172; Summary 175 168 12 Manufacturing logistics 176 Introduction 176; Typology of operations 177; Just-in-time 180; Manufacturing resource planning (MRPII) 183; Material requirements planning (MRP) 183; The MRP system 184; Flexible fulfilment (postponement) 187; The effects of distribution activities 188; Future developments 189; Summary 190 13 Part 3 Procurement and inventory decisions 191 Basic inventory planning and management Introduction 193; The need to hold stocks 194; Types of stockholding/ inventory 195; Stockholding policy implications for other logistics functions 197; Inventory costs 199; Reasons for rising inventory costs 200; Inventory replenishment systems 201; The reorder point and safety stock 203; The bullwhip effect 205; The economic order quantity 206; Demand forecasting 210; Summary 216 193 Contents v 14 Inventory and the supply chain Introduction 217; Problems with traditional approaches to inventory planning 217; Different inventory requirements and the ‘decoupling point’ 218; The lead-time gap 220; Inventory and time 221; Analysing time and inventory 223; Inventory planning for manufacturing 224; Inventory planning for retailing 227; Summary 233 217 15 Procurement and supply Introduction 234; The procurement cycle 235; The scope of procurement 236; Setting the procurement objectives 236; Managing the suppliers 243; Expediting 246; Procurement performance measures 247; Collaborative planning, forecasting and replenishment 247; Factory gate pricing 248; E-procurement 248; Corruption 250; Summary 251 234 Part 4 Warehousing and storage 253 16 Principles of warehousing Introduction 255; The role of warehouses 256; Strategic issues affecting warehousing 258; Warehouse operations 259; Costs 263; Packaging and unit loads 263; Summary 265 255 17 Storage and handling systems (palletized) Introduction 266; Pallet movement 266; Pallet stacking 268; Palletized storage 272; Palletized storage – comparison of systems 286; Summary 288 266 18 Storage and handling systems (non-palletized) Introduction 290; Small item storage systems 291; Truck attachments 295; Long loads 296; Cranes 299; Conveyors 299; Automated guided vehicles 300; Hanging garment systems 301; Summary 302 290 19 Order picking and packing Introduction 303; Order picking concepts 303; Order picking equipment 305; Sortation 313; Picking area layout 315; Slotting 316; Pick routes 316; Information in order picking 317; E-fulfilment 320; Picking productivity 320; Replenishment 321; Packing 322; Summary 324 303 20 Receiving and dispatch Introduction 325; Receiving processes 325; Dispatch processes 326; Cross-docking 327; Returned goods 329; Receiving and dispatch equipment 329; Layouts 332; Summary 335 325 21 Warehouse design Introduction 336; Design procedure 336; Summary 352 336 22 Warehouse management and information Introduction 353; Operational management 353; Performance monitoring 355; Information technology 358; Data capture and transmission 360; Radio data communication 362; Truck management 363; Summary 363 353 vi Contents Part 5 Freight transport 365 23 International logistics: modal choice Introduction 367; Relative importance of the main modes of freight transport 368; Method of selection 370; Operational factors 371; Transport mode characteristics 375; Consignment factors 379; Cost and service requirements 380; Aspects of international trade 381; Summary 387 367 24 Maritime transport Introduction 389; Structure of the industry 389; Common shipping terms 391; Surcharges 393; Documentation 395; Vessel classification 396; Common ship types and their cargoes 398; Ports and cargo handling 401; Other factors 402; Summary 404 389 25 Air transport Introduction 405; Structure of the industry 405; Air cargo handling 407; Types of air freighter 409; Documentation 410; Air hubs and spokes 411; Air freight pricing 411; Air cargo security 414; Summary 416 405 26 Rail and intermodal transport Introduction 417; Intermodal equipment 418; Intermodal vehicles 426; Intermodal infrastructure 428; Mode shift grant schemes 429; Rail transport 429; Summary 432 417 27 Road freight transport: vehicle selection Introduction 433; Main vehicle types 434; Types of operation 435; Load types and characteristics 443; Main types of vehicle body 446; The wider implications of vehicle selection 452; Vehicle acquisition 453; Summary 455 433 28 Road freight transport: vehicle costing Introduction 456; Reasons for road freight transport vehicle costing 456; Key aspects of road transport costing 458; Vehicle standing costs 460; Vehicle running costs 464; Overhead costs 466; Costing the total transport operation 467; Whole life costing 468; Vehicle cost comparisons 471; Zero-based budgets 472; Summary 473 456 29 Road freight transport: planning and resourcing Introduction 474; Need for planning 475; Fleet management 476; Main types of road freight transport 478; Transport resources: requirements and optimization 480; Vehicle routeing and scheduling issues 482; Manual methods of vehicle routeing and scheduling 488; Computer routeing and scheduling 495; Other road-freight transport information systems applications 500; Summary 501 474 Contents vii Part 6 Operational management 503 30 Cost and performance monitoring Introduction 505; Why monitor? 506; Different approaches to cost and performance monitoring 508; What to measure against? 513; A logistics operational planning and control system 516; Good practice 517; Influencing factors 521; Detailed metrics and KPIs 522; The presentation of metrics 525; Summary 527 505 31 Benchmarking Introduction 529; Why should an organization engage in benchmarking? 530; How to conduct a benchmarking exercise 530; Formal benchmarking systems 536; Benchmarking distribution operations 538; Summary 547 529 32 Information and communication technology in the supply chain Introduction 548; Basic communication 548; Supply chain planning 551; Warehousing 553; Inventory 553; Transport 554; Other applications 556; Trading using the internet – e-commerce 557; Summary 559 548 33 Outsourcing: services and decision criteria Introduction 560; Outsourcing operations 560; Different service types 571; Value added services 577; Drivers and drawbacks of outsourcing 580; What are the critical factors of choice? 586; Summary 588 560 34 Outsourcing: the selection process Introduction 589; Approach 589; Detailed steps 591; Summary 610 589 35 Outsourcing management Introduction 611; The need for management 612; Managing the relationship 612; Implementation planning 616; Monitoring an outsourced logistics operation 618; Summary 622 611 36 Security and safety in distribution Introduction 624; International security measures 625; Strategic security measures 626; Tactical security measures 627; Safety in the distribution centre and warehouse 634; Summary 637 624 37 Logistics and the environment Introduction 638; The European Union and environmental legislation 639; Logistics and environmental best practice 644; Alternative fuels 654; Summary 658 638 38 Humanitarian logistics 659 Introduction 659; Key differences 660; Performance measurement 663; Key terms 665; Pre-positioning of resources 666; Assessment and planning 667; The cluster approach 668; Distribution 669; Summary 670; Further reading 671 References 672 Index 675 viii List o f f i g u r e s 1.1 A flow representation of logistics for an FMCG manufacturer This shows the key components, the major flows and some of the different logistics terminology 1.2 The key components of distribution and logistics, showing some of the associated detailed elements 1.3 Logistics costs as a percentage of GDP for selected countries 1.4 A typical physical flow of material from suppliers through to customers, showing stationary functions and movement functions, linked to a diagram that reflects the ‘value added’ nature of logistics 2.1 Some potential trade-offs in logistics, showing how different company functions might be affected 2.2 Logistics planning hierarchy 2.3 The major functions of the different planning time horizons 2.4 Some of the main logistics elements for the different planning time horizons 2.5 The planning and control cycle 2.6 The many ways in which logistics can provide an impact on an organization’s return on investment 2.7 The logistics implications of different competitive positions 2.8 Supply chain integration 3.1 Core product versus product ‘surround’, illustrating the importance of the logistics-related elements 3.2 The seven ‘rights’ of customer service, showing the main service classifications 3.3 The constituent parts of total order fulfilment cycle time 3.4 A conceptual model of service quality: the basic elements 3.5 A conceptual model of service quality: the service gaps 3.6 An overall approach for establishing a customer service strategy 3.7 Different types of customer service study 3.8 The advantages and disadvantages of different survey approaches 3.9 Rating table for selected customer service factors 3.10 Company competitiveness at current service levels – Target Chart 3.11 Competitive benchmarking showing opportunities for improving service when comparisons are made with customer requirements and the performance of key competitors 10 14 18 19 20 21 22 23 28 29 33 34 36 38 39 41 41 42 43 44 45 List of Figures ix 3.12 A practical example of gap analysis 3.13 The relationship between the level of service and the cost of providing that service 3.14 Radar gram showing the perfect order targets and achievements 4.1 Alternative distribution channels for consumer products to retail outlets 4.2 Typical channel of distribution, showing the different physical and trading routes to the consumer 4.3 ‘Long’ and ‘short’ distribution channels 4.4 An approach to designing a channel structure 4.5 Global percentage 3PL revenues for the major regions (2010) 4.6 Percentage split of logistics outsourcing spend by the major European countries for 2011 4.7 Logistics spend by country showing split between in-house and outsourced logistics for 2011 4.8 The main logistics services that are outsourced by users by region 5.1 The biggest challenges driving the supply chain agenda 5.2 The success of environmental initiatives 5.3 Fourth-party logistics, showing the main areas of service that could be provided 5.4 The different characteristics that distinguish freight exchanges from each other 6.1 Pressures influencing logistics systems 6.2 Corporate strategic planning overview 6.3 PESTEL analysis: external influences 6.4 A framework for logistics network design 6.5 Effect of product volume to weight ratio on logistics costs 6.6 Effect of product value to weight ratio on logistics costs 6.7 Standard product life cycle curve showing growth, maturity and decline 7.1 The process triangle – used to help differentiate the type and importance of the various processes within a company, and to identify which processes need to be redeveloped 7.2 Approach to process design or redesign 7.3 A typical Pareto curve showing that 20 per cent of products represent 80 per cent of sales value 7.4 An example of a criticality matrix 7.5 Relationship mapping: used to identify key departments and their interrelationships 7.6 A matrix process chart 7.7 Value/time analysis 7.8 A time-based map illustrating the order to dispatch process broken down into value and non-value added time 7.9 Finding the cause of non-value added time using an Ishikawa diagram 46 47 49 53 57 59 61 62 62 63 64 67 69 75 78 90 91 92 94 97 98 99 107 109 111 112 113 114 115 115 116 676 Index Alcoa approach to 532 as continuous activity 535–36 exercise (Shukko) 530–36 analysis 535 choice of benchmarking partners 533–34 choosing a mixed-discipline team 534 continuing process 535–36 getting acquainted with partner 534 senior management commitment 532 set objectives 532 formal systems for 536, 537 industry 533 and Malcolm Baldridge National Quality Award benchmarking framework 536 non-competitive 533 and quality function deployment (QFD) 536 reasons for 530, 531 Xerox approach to 530–31 benchmarking distribution operations (and) 538–41, 543–46 data and analysis 543 format and approach 539–41, 543, 540, 542 interpreting results 543–45 other logistics audit types 545–46, 546 Berry, J 241 Bicheno, J 180 boom conveyors 262, 329 BRE Environmental Assessment Method (BREEAM) 351 bullwhip/Forrester effect 205–06, 206, 216 business to business (B2B) 56, 557, 559 business to consumer (B2C) 55, 557, 559 category management (CM) 231–32 central distribution centres (CDCs) 54 Channel Tunnel/Le Shuttle 375, 427, 428, 432 chapter summaries 15, 30–31, 51, 86, 101–02, 116, 150, 167, 190, 216, 233, 251, 265, 288–89, 302, 322–23, 335, 352, 363, 387–88, 404, 416, 432, 455, 473, 501–02, 527, 547, 559, 588, 610, 622–23, 637, 658, 670–71 Chartered Institute of Logistics and Transport, UK (CILT) 535–36 Logmark Supply Chain Benchmarking Group 535–36 Childerhouse, P 122 China 10, 68, 70, 72, 240, 403, 404 logistics market in 582 and passenger/freight rail lines 417 and shipping surcharges 394 use of DME synthetic fuel in 657–58 Christopher, M 660 collaborative planning, forecasting and replenishment (CPFR) 232–33, 232, 256 co-managed inventory (CMI) 230, 238 communication see also ICT in the supply chain and information technology (IT) costs 652 issues 617 online systems 580 radio data 362 satellite 548–49 container(s) 329, 398, 400, 426 see also trailers dispatch 261 European rail 427 intermediate bulk (IBCs) 264–65 and intermodal systems 378–79 ISO (unitized loads) 264, 266, 271, 301, 329, 361, 376, 398–402, 417–19 shipping 101, 174, 269, 296 swap-body 420 and transport pioneering companies 418 unit load devices (ULDs) 418 continuous replenishment programme (CRP) 120, 122, 218, 228, 230 cost and performance monitoring 505–28, 506 see also performance monitoring aims and objectives of 506–08 detailed metrics and KPIs for 522–25, 523 different approaches to 508–13, 509, 510, 511 balanced scorecard 508, 509 integrated supply chain 510–11, 511 operational 512–13 SCOR model 509–10, 510 and good practice 517–21, 518 influencing factors in 521 and logistics operational planning and control system 516–17, 516 measurement systems for 513–16 benchmarking 516 budget 513–14 engineered standards 514–15 external standards 515–16 historical data 513 and the presentation of metrics 525–26, 525 cost relationships 128–36 see also logistics network planning information system costs 132, 133 Index 677 inventory holding costs 131–32, 132 road transport costs 130–31, 130, 131 storage and warehousing costs 128–29, 129 total logistics costs 133–34, 134 trade-off analysis 134–36, 135 cross-docking 327–28, 342 see also dispatch and receiving customer service 32–51 components of 34–36, 36 multifunctional dimensions 35–36 post-transaction elements 35 pre-transaction elements 35 transaction elements 35 and conceptual models of service quality: basic, and extended service 37–39, 38, 39 and demand chain management (DCM) 85 developing a policy for 39–46, 41, 42, 43, 44, 45, 46 importance of 32–34, 33, 34 levels of 46–47, 47 measuring 47–50 and the ‘perfect order’ 48–49, 49 resurgence of 50 data capture and transmission 360–62 bar codes 360, 361–62 error rates 361–62 optical character recognition (OCR) 361 radio frequency identification (RFID) 361 voice recognition/pick-by-light systems 319, 361 Davidson, A L 663 decision tree 344, 344 de Rothschild, Baron L 659 define, measure, analyse, improve and control (DMAIC) 182 definitions (of ) 4–7, 5, agile 73 benchmarking (Xerox) 529 capacity acronyms: TEU and FEU 419 carbon footprinting 646 efficient consumer response (ECR) 229 electronic data interchange (EDI) 549 e-procurement 248 e-procurement (Green Paper 2010) 249 intermodal transport (ECTM) 417 lean 73 logistics 4, 5–6, 34, 662 system 176 demand chain management (DCM) 85 demand forecasting 210–15, 212, 213 and advanced projective forecasting methods 214 approach to 215 common projective methods for 211–13, 212, 213 different methods of 210–11 demand and supply 136, 193, 203 management 233 segmentation 119–21, 119 dependent/independent demand 26, 180, 218–19, 233 depot/distribution centre (DC) 125–30, 133–36, 139, 141, 143, 146, 146, 173, 198, 227, 228, 515, 580 location package 552 operations 169, 512, 538, 541, 563 role of 126–28 types of 127 development cycle 605–06 digital mapping and complex algorithms 496, 496 dispatch see also receiving and cross-docking 327–28, 328 layout 332–34, 335 processes 326–27 and receiving equipment 329–32, 330, 332 loading bays 331–32, 332 distribution channels (and) 52–65 channel alternatives different structures 56, 57 direct deliveries 55–56 manufacturer-to-retail 53–55, 53 channel selection (and) 57–60 company resources 60 competitive, market and product characteristics 58–60, 59 designing channel structure 60, 61 objectives 57–58 outsourcing channels 61–65 see also outsourcing third party (3PL) or own account 61–63, 62, 63, 64 outsourcing opportunities 64–65 physical 52, 60 see also physical distribution physical types of/structures for 53–56, 53, 57 trading/transaction 52 distribution requirements planning (DRP) systems 26, 188, 225, 233 distribution structure: direct, echelon and mixed systems 198–99 678 Index e-commerce 557–59 B2B and B2C 557, 558 e-fulfilment 558 see also subject entry e-procurement 558–59 see also subject entry e-tailing 558 economic order quantity (EOQ) 193, 194, 206–10, 207, 208, 209, 216, 218, 219 efficient consumer response (ECR) 229–31, 256 e-fulfilment 83, 171, 171, 258, 320, 579–80 electronic data interchange (EDI) 89, 95, 138, 218, 230, 237, 244, 246, 549–51 electronic point of sale (EPOS) 58, 73, 82, 89, 95, 138, 228, 230, 246, 539, 549, 556 employees (and) 149, 150, 165, 242 see also benchmarking and payment mechanisms/ schemes corruption 250 duty of care/legislation 355 profit-sharing schemes 162 risk-awareness 627 security 632 temporary 164–66 TUPE legislation 606 enterprise resource planning (ERP) 89, 95, 225, 551 ‘Environment: A challenge for business’ (UK DTI, 1991) 645 environmental best practice and logistics 644–53 environmental management systems 644–45 environmental issues 638–58 see also environmental legislation (EU); legislation (EU) and legislation (UK) alternative fuels 654–58 see also subject entry carbon footprinting 646 DTI (UK) checklist of 645 environmental best practice and logistics see subject entry packaging 646–47 performance measures for road transport 647–49, 648 possible areas of improvement for distribution centre and road transport 649–51, 650 reverse logistics 651–54 environmental legislation (EU) (on) 639–44 see also legislation (EU) air, noise and water pollution 641 freight transport logistics action plan 643–44 ‘Living Well, within the limits of our planet’ 639 natural and technological hazards 641 nature conservation 641 packaging/packaging waste (Directive 94/62/EC) 642 waste management 640 WEEE Directive 641 EPOS systems 58, 73, 82, 89, 95, 138, 228, 230, 246, 539, 549, 556 e-procurement 235, 236, 248–50, 558–59 definitions of 248, 249 EC Green Paper on 249–51 European Commission (EC) 638–39 approval of Government Aid schemes in UK 429 Freight Transport Logistics Action Plan 639, 643–44 Green Paper on e-procurement (2010) 249–50 Thematic Strategy on Waste Prevention and Recycling (2005) 638 European Conference of Transport Ministers: definition of intermodal transport 417 European Union (EU) 68, 249, 382 see also legislation (EU) 7th Environmental Action Plan 639–40 and Air Cargo Carrier Third Country (ACC3) compliance 416 Council vote (2008) on liner conferences/ anti-competitive actions 390 and environmental legislation 639–44 see also environmental legislation (EU) Fédération Européenne de la Manutention (FEM) 279, 355 financial impact of logistics 22–24 and return on investment (ROI) 23, 23 see also subject entry Forrester/bullwhip effect 205–06, 206, 225 fourth-party logistics (4PL) 65, 75–77, 76, 560, 562 advantages of 76–77 ‘Freight Transport Logistics Action Plan’ (EC, 2007) 639 gap analysis 45, 46 Gattorna, J L 653 Glaskowsky, N global warming 654–55 globalization 24–25, 66–67, 93, 120, 155, 382, 389 good practice 517–21, 518 Goomas, D T 362 Greasley, A 176 Index 679 ‘Green Paper on expanding the use of e-Procurement in the EU’ (EC, 2010) 249–50 Gubbins, E J 432 Health and Safety Executive (UK) 637 health and safety issues/policies 160, 166, 259, 322, 337, 355, 434, 602, 635–38 and equipment 306, 331, 636 legislation for 637, 642 for personnel 632, 636 in the working environment 635 Hesket, J L home shopping (and) 56, 83–85, 171, 227, 258, 557 home delivery (e-fulfilment) 83–85 multichannel fulfilment 85 see also subject entry house air waybills (HAWB) 406, 410 humanitarian logistics (and) 659–71 assessment and planning 667, 668 the cluster approach 668–69, 669 distribution and site selection 669–70 further reading 671 and the humanitarian aid ‘customer’ 662–63 key differences applying to 660–63, 661 key terms 665–66 beneficiary 665 distribution 665 donors 665 extended delivery point (EDP) 666 internally displaced person (IDP) 665 kits 665 rapid onset disasters 666 slow onset disasters 666 surge capacity 666 performance measurement 663–64, 664 pre-positioning of resources 666–67 ICT in the supply chain (and) 548–59 see also transport bar codes 550 e-commerce 557–59 see also subject entry electronic data interchange (EDI) 549–50 see also subject entry electronic point of sale (EPOS) 556 see also subject entry forecasting and inventory management systems 553 general applications packages 556 international trade management systems 555 manufacturing planning and control systems 556 mobile data 549 order processing 551 other applications 556 radio frequency identification (RFID) 550 see also subject entry satellite communication 548–49 supply chain event management systems 555 supply chain planning 551–53 see also subject entry telematics 555 vehicle fleet management 554–55 warehouse management systems 553 Incoterms/Incoterms 2010 372, 384–86 independent demand 180, 218–19 India 10, 68, 70, 72, 240, 389, 417, 659 industry cost audit (Dialog Consultants Ltd, UK) 11 information and communication technology see ICT in the supply chain information technology (IT) 66, 82, 89, 315, 321, 337, 340, 351, 358–60, 358, 359 see also warehouse management system (WMS) advances in 8, 25, 30, 70, 106–07, 229, 505, 580 costs of 263 integrated logistics and the supply chain (and) 16–31 see also supply chain(s) competitive advantage through logistics 27–28, 28 financial impact of logistics 22–24, 23 globalization and integration 24–25 integrated systems 25–27 see also subject entry logistics and supply chain management 28–30, 29 planning for logistics 19–22, 19, 20, 21, 22 the total logistics concept (TLC) 16–18 and four levels of trade-offs 17–18, 18 integrated systems 25–27 see also individual subject entries direct product profitability (DPP) 25–26 distribution requirements planning (DRP) 26 just-in-time (JIT) 26–27 see also subject entry manufacturing resource planning (MRPII) 26 material requirements planning (MRP) 26 intermodal equipment 418–25 and definition of capacity acronyms: TEU and FEU 419 680 Index gantry/portal crane (or straddle carrier) 423–24, 424 grappler lift 424 ISO containers 418–19, 419 reach stacker 424–25, 425 RoadRailer trailers 420, 421 see also trailers ship to shore gantry crane (SSGC) 423, 423 the swap-body 420 unaccompanied trailers 420–21, 423, 422 see also trailers intermodal infrastructure 428–29 the Channel Tunnel 428 see also Channel Tunnel/Le Shuttle international terminals and freight villages 428–29 intermodal vehicles 426–28 for rail 426–27 river barges 426 for roads 427–28 seagoing: cellular container ship and RORO ferry 426 Internal Logistics and Supply Chain Outsourcing 77 International Air Transport Association (IATA)/ cargo agent 405, 406–08, 410, 414 and ULD Technical Manual 408 International Humanitarian City (IHC, Dubai) 666 international logistics: modal choice (and) 367–88 aspects of international trade 381–87 see also international trade consignment factors: speed of delivery and service reliability 379–80 cost and service requirements 380–81, 381 operational factors 371–74 customer characteristics 372–73 elements affecting route and modal choice 374 external 371–72 physical nature of product 373 relative importance of freight transport modes 368–60, 369 suitable transport, selection method for 370–71, 370 transport mode characteristics 375–79 air freight 377–78 container and intermodal systems 378–79 conventional sea freight 375 international road freight 375–76 rail freight 376–77 ® international trade (and) 381–87 barriers 382 documentation 386 financial issues 383–84 freight forwarders 387 opportunities for transport and distribution companies 383 policy areas 383 provisions and changes 382 terms of trade/Incoterms 2010 384–86 trade agreements and economic unions 382–83 International Transport Forum discussion paper (2012) 11 inventory planning (and) 217–33 analysing time and inventory using supply chain mapping 223–24, 224 different inventory requirements and the ‘decoupling point’ 218–20 high inventory levels and time 221–22, 221 the lead-time gap 220–21, 220 for manufacturing 224–26, 226, 227 problems with traditional approaches to 217–18 for retailing see inventory planning for retailing inventory planning and management (and) 193–216, 564–65 see also stockholding bullwhip/Forrester effect 205–06, 206, 225 demand forecasting 210–15, 212, 213 see also subject entry economic order quantity (EOQ) 206–10, 207, 208, 209 see also subject entry inventory costs: capital, reorder, risk, service, set-up, shortage and storage 199–200 inventory replenishment systems 201–02, 202, 203 see also stockholding the need to hold stocks 194–95 reasons for rising inventory costs 200–201 reorder point and safety stock 203–05, 204 stockholding and/or inventory types 195, 196 stockholding policy implications for other logistics functions 197–99 inventory planning for retailing 227–33, 229, 232 category management (CM) 231–32 collaborative planning, forecasting and replenishment (CPFR) 232–33, 232 continuous replenishment programme (CRP) 228 efficient consumer response (ECR) 229–31 Index 681 quick response (QR) 228–29, 229 vendor-managed inventory (VMI) 228 inventory and the supply chain see inventory planning ISO see also containers 9000 182 9004-2009 536 14000 standards 644 Ivie, R M Japan/Japanese 182, 244–45, 657 benchmarking ‘Shukko’ 530 ‘keiretsu’ system 244 quality function deployment (QFD) 536 Jones, D T 72 just-in-time (JIT) (and) 26–27, 180–82, 188, 225, 238, 245, 256 see also Toyota elimination of wasted time 181 finished product stocks 182 kanban 181–82, 225 movement through the manufacturing process 181 right first time 182 kaizen (continuous improvement) 182 Kaplan, R S 508 key issues and challenges (and) 66–86, 67 availability of management and labour 70 the consumer 83–85 see also home shopping cost vs customer service 67 the external environment 68–71, 69 flowcharts 67 fuel price rises 70 logistics and distribution 74–81 see also subject entry manufacturing and supply 71–74 retailing 81–83 see also subject entry road congestion 709 vulnerability of supply chains 70 key performance indicators (KPIs) 233, 508, 522–26, 523, 525, 526, 621 Kopczak, L R 659 Kuehne and Nagel (freight management) 662 LaLonde, B J 158 Langley, J C 612 Leadership in Energy and Environmental Design (LEED) 351 lean thinking 72–73 five principles of 72 legislation (EU) Business Transfers Directive 606 on environmental issues 638 see also environmental legislation (EU) Waste Framework Directive (2008) 640–42 legislation (UK) Control of Substances Hazardous to Health (COSHH) Regulations 649 Dangerous Goods Regulations (ADR) 445 Environmental Permitting (England and Wales) Regulations (2010) 643 Environmental Protection (Duty of Care) Regulations (1991) 643 Essential Requirements Regulations 642 health and safety 637 Pressure Systems Regulations 445 Producer Responsibility Obligations (Packaging Waste) Regulations (1997) 642 Transfer of Undertakings (Protection of Employment) Regulations (TUPE, 2006) 585, 606 Waste Electrical and Electronic Equipment (WEEE) Directive 329 Waste (England and Wales) (Amendment) Regulations (2012) 643 legislation (US) Advanced Manifest Regulations (AMR) 624, 626 Ocean Shipping Reform Act (OSRA, 1998) 390 less than container load (LCL) 391, 403–04 Litton, H 659 logistics and distribution 3–15, 74–81 and fourth-party logistics (4PL) 75–77, 76 advantages of 76–77 historical perspective for 7–9 importance of 9–13, 10, 12, 13 in the economy 9–11, 10 key components 11 in industry 11, 13 logistics or freight exchanges 77–81, 78 see also online freight purchasing logistics and supply chain structure 14–15, 14 scope and definition 4–7, 5, see also definitions (of) logistics and the environment 638–58 see environmental issues logistics management and organization (and) 151–67 hiring temporary staff 164–65 hiring temporary vehicles 166 682 Index logistics organizational structures 153–54, 154 managerial role and responsibilities 158–60 organizational integration 155–58, 155, 156, 157, 158 payment schemes 160–62, 164, 161, 163 relationships with other corporate functions 151–53 logistics modelling: logistics option analysis 143–47 distribution centre location modelling approaches 145–47 heuristics 145 logistics 146–47, 146 mathematical programming 145 simulation 145–46 modelling complete logistics structures 143–44 sourcing models 144–45 logistics network planning 125–50 cost relationships see subject entry evaluating results 147–48, 148 initial analysis and option definition (and) 138–43 customer service analysis 143 data collection for costs and product flow 140–41, 143, 142 establishment of current position 138–39, 139 external and internal factors 138 logistics objects and options 143 logistics modelling: logistics option analysis see subject entry planned approach to/methodology for 136–38, 137 role of distribution centres and warehouses 126–28 site search, practical considerations for 148–50 Logistics Operational Guide (LOG) 671 logistics processes (and) 103–16 aftermarket/service parts logistics 106 approach to process design 108–10, 109 functional and cross-functional process problems 104–05 information management 106–07 new product development 106 new product introduction 106 order fulfilment 105–06 process categorization 107–08, 107 process redesign, tools and techniques for see subject entry product returns 106 types and categories of 105–08, 107 logistics strategy matched to business strategy 147–48, 148 Ludwig, T D 362 McGinnis, M A 158 The Machine that Changed the World 72 manufacturing logistics (and) 176–90, 177 effects of distribution activities 188 flexible fulfilment (postponement) 187–88 just-in-time 180–82, 188 see also subject entry manufacturing resource planning (MRPII) 183, 224 material requirements planning (MRP) see subject entry the MRP system see material requirements planning (MRP) new technologies and additive manufacturing 189 operations management (OM) 176–77 typology of operations 177–80 dependent and independent demand 180 and the four Vs 177 manufacturing process types 178 operations management performance objectives 179 production facilities and layouts 178–79 push and pull systems 179–80 service process types 178 Managing Transport Operations 432 manufacturing resource planning (MRPII) 179–80, 183 maritime transport (and) 389–404 cargo surveyors and superintendents 402 common ship types and their cargoes 398, 400–401 break-bulk freighter 400 cellular container vessel 398, 400 dry bulk carrier 401 LNG vessel/Q-Max ships 401 oil tanker 401 RORO vessel 400 specialized heavy lift vessel 401 common shipping terms 391–93 see also maritime transport: shipping terms documentation 395–96 see also maritime transport: documentation freight forwarders 390 inland waterways 404 Index 683 land bridges 403 liner conferences 389–90 see also European Union (EU) and United States (US) Panama Canal expansion 403 ports and cargo handling: terminal handling facilities 401–02 RORO ferries 375, 400, 420, 426 sea-air options 403–04 security, piracy, politics and war 402–03, 627 shipping lines 390 shipping terms see maritime transport: shipping terms ships’ agents 390 speed, weather, port congestion 404 Suez and Panama canals: size restrictions 403 surcharges 393–95 see also maritime transport: surcharges vessel classification 396–98 Aframax 397 Capesize 398 deadweight tonnage (DWT) 397 handysize and handymax 397 Panamax 398, 399 Suezmax 397 very large/ultra large crude carriers (VLCC/ULCC) 398 maritime transport: documentation 395–96 bills of lading 395 certificate of origin 395 commercial invoices 396 letters of credit (LCs) 395, 396 packing lists 396 maritime transport: shipping terms 391–93 break bulk cargo 392 free in and/or free out 392 full container load (FCL) 391 full liner terms 391 hook to hook 391 less than container load (LCL) 391 liner in/liner out 391 lost slots 393 port rotation 393 stackable cargo 392 stowage plan 393 TEU and FEU 393 weight or measure (W/M) 392 maritime transport: surcharges 393–95 bunker adjustment factor (BAF) 394 currency adjustment factor (CAF) 394 peak season surcharge (PSS) 394 repositioning charge 394 war risk surcharge 395 material requirements planning (MRP) 179–80, 183–84, 186–87, 188, 224–25, 556 bill of requirements/bill of materials (BOM) 184, 186, 185 master production schedule (MPS) 184 and MRPII 183, 224, 556 opening capacity 186–87 opening stock 186 merchandising 83, 228, 567 metrics detailed metrics and KPIs 522–25, 523 presentation of 525–26, 525 Mizuno, S 536 mode shift grant schemes Mode Shift Revenue Support Scheme (MSRS) 429 Waterborne Freight Grant Scheme (WFGS) 429 modelling see logistics modelling multichannel fulfilment 85, 168–75 and food retailing distribution options 170–72, 171 issues 169–70 and non-food retailing options 172–74 see also segmentation national distribution centres (NDCs) 54, 127, 172–74, 227, 478, 478 network strategy 173, 552–53 non-palletized storage (and) 290–302, 291 adjustable pallet racking (APR) 295 automated guided vehicles 300 conveyors: belt, chain, overhead, roller and slat 299–300 cranes: gantry, jib and overhead travelling 299 hanging garment systems 301, 301 long loads storage methods 296–97, 298 small item storage systems 291–95 carousels and lift modules 293–94, 294 flow racks (carton live storage) 292, 293 miniload 294–95, 295 mobile shelving 292 shelving, bins and drawer units 291–92 truck attachments 295–96 North America 10, 61, 72, 436, 440, 568 North American Free Trade Association (NAFTA) 382 Norton, D P 508 684 Index online freight purchasing (and) 77–81, 78 aftermarket/service parts logistics 80 horizontal collaboration 79 radio frequency identification (RFID) tagging 79–80 reverse auction bidding process 78 order picking (and) 303–24 adjustable pallet racking (APR) 311 area layout for 315–16 concepts see order picking concepts e-fulfilment 320 equipment see order picking equipment information see order picking information packing 322–23 pick routes for 316–17 picking productivity 320–21 replenishment 321–22 and slotting 316 sortation see order sortation systems order picking concepts 303–05 batch picking 304 pick-by-line or pick-to-zero 304 pick-to-order 303–04 wave picking 305 zone picking 304–05, 320 order picking equipment 305–13 automated systems 311–13, 312 goods to picker 309–11, 310 picker to goods 306–07, 309, 307, 308 order picking information 317–19 bar codes 318 paper pick lists 317 pick by label 317 pick by light 319 put to light 319 radio data terminals 318, 318 radio frequency identification (RFID) 319 vision technology 319 voice technology 319 order sortation systems 313–15 bomb-bay 314 cross-belt 315 sliding shoe 314, 314 tilt-tray 314–15 OTIF (on time in full) 48–49, 51 outsourcing 24, 55, 68, 69, 75, 77, 78, 453–54 channels: third party (3PL) or own account 61–63, 62, 63, 64 opportunities 64–65 outsourcing management (and) 611–23 client and 3PL relationships 612 failure of 3PL relationships 612, 613 implementation planning 616–18, 617 from client perspective 616 from contractor perspective 617–18 managing the relationship (through) 612–15 communication 615 continuous improvement 615 engagement between 3PL and client 614 partnership and collaboration 612–14 monitoring an outsourced logistics operation (with) 618–22 cost and performance metrics 621, 622 longer-term contract management 621 service level agreement (SLA) 619 overall approach to 619–21, 620 outsourcing operations 560–70 breadth of 560–62, 561 choosing 569, 569 and cost perspective 569–70 different types of 567–70 and service perspective 570 standard types of 562–67, 563 see also transport and warehouses/warehousing packaging and unitization 566–67 product inspection and reverse logistics 567 merchandising and telesales/call centres 567 outsourcing selection process 589–610 approach to 589–90, 590 the contract (and) 606–09 administration/other 608–09 cost-related/tariff structure 607 initial 607 service level agreement 608 contractor management 610 see also outsourcing management contractor or partner selection 604–06, 604 data requirements 596–97 identify potential service providers 593 identify type of service required 593 implementation plan 609–10 invitation to tender (ITT) 592, 595, 597 prepare request for information process and shortlist 593–95 pricing and charging structures 597–600, 598 request for proposal (RFP) 595–97, 600–602, 604 preferred response to 600–601 request for quotation (RFQ) 595–96 Index 685 review scope for outsourcing 591–93, 591 tender evaluation and comparison 601–04 qualitative assessment 602–04, 603 quantitative assessment 601 and TUPE 606 see also legislation (UK) outsourcing: services and decision criteria for 560–88 see also outsourcing operations critical factors of choice 586–88 choosing between different providers 587 choosing to outsource 586, 586, 587 different service types 571–77, 574, 575 see also transport and warehouses drivers and drawbacks 580–86 financial factors 582–83 organizational factors 581–82 physical factors 585–86 service factors 583–85 value added services 577–670 packaging and unitization 566–67 pallet(s) (and) 264, 265, 417 movement equipment 266–68, 267 stacking equipment 268–72, 269 counterbalanced fork-lift trucks 270–271, 270 reach trucks 271 stacker trucks 269 trucks 330 palletized storage 272–86 adjustable pallet racking (APR) 277, 279, 278, 282, 284 automated storage and retrieval systems (AS/RSs) see subject entry block stacking 272–73 comparison of systems of 286–87, 287, 288 double-deep racking 279 drive-in and drive-through racking 273, 275, 274 narrow-aisle racking 279, 281, 280 pallet live storage 282, 283 powered mobile racking 281–82 push-back racking 276–77, 276 satellite/shuttle racking 275–76 Pareto 80/20 rule 33, 110, 111, 198, 341 analysis 110, 111, 198, 215, 514 classification 121, 341, 342 groups 295 principle 316 volume classification 122 payment mechanisms/schemes 160–62, 164, 161, 163 performance monitoring 355–58 see also cost and performance monitoring measures included in 355–57 of operational parameters 357–58 physical distribution 7, 8, 14, 52, 60, 101, 127, 153, 159, 168, 433, 512, 539, 558, 579, 662 planning framework for logistics (and) 89–102 example of the brewing industry 92–93 logistics design strategy 94–96, 94 information system design 95 network design 95 organizational structure 95 process design 95 packaging 100–101 pressures for change 89–90, 90 product characteristics 96–99 high-risk products 98–99 suitability 98 value to weight ratio 97, 98 volume to weight ratio 96–97, 97 product life cycle 99–100, 99 strategic planning overview 91–94, 91, 92 unit loads 101 postponement/flexible fulfilment 187–88 principles of warehousing see warehouses/ warehousing procurement and supply (and) 234–51 collaborative planning, forecasting and replenishment (CPFR) 247–48 corruption 250 e-procurement see subject entry expediting 246 factory gate pricing 248 the procurement cycle 235–36 procurement performance measures 247 scope of procurement 236 setting the procurement objectives see procurement objectives the suppliers 243–46 appraisal and performance of 246 choosing 243–44 number of 244 partnership/adversarial approaches to managing 244–46 procurement objectives 236–43 determination of price 230–31 development of product specifications 239 ensuring quality of supplies 238 686 Index ensuring supply of raw materials 237 hierarchy of importance 241–42, 242 making vs buying 243 and origin of supplies 240 responsibility for vendor-managed inventory (VMI) 237 supply methods/JIT systems 240–41 transport methods 241 process design/redesign 108–10, 109 process redesign, tools and techniques for 110–13, 116 criticality analysis 111, 112 customer service studies 112 market/customer segmentation 111 Pareto analysis 110, 111 process charts 112 relationship mapping 112, 113 time-based process mapping 113, 114, 115, 116 value/time analysis 112 ‘pure-play’ internet retailers 169, 171–72 push and/or pull systems 179–80, 219–20 load 296 quality function deployment (QFD) 536 see also benchmarking quick response (QR) 228–29, 229 quotation, request for (RFQ) 235, 239, 595–96 radio frequency identification (RFID)/tags 301, 348, 361, 362, 363, 550, 581, 615, 643 rail and intermodal transport see intermodal equipment; intermodal infrastructure; intermodel vehicles; mode shift grant schemes and rail transport rail freight 368–69, 428–29 disadvantages of 376–77 rail transport 429–32 intermodal vehicles for 426–27 loading gauge 431 locomotives 430 railway gauge 430–31 rolling stock 430 strengths and weaknesses of 431–32 receiving (and) 325–35 see also dispatch cross-docking 327–28, 328 dispatch equipment 329–32, 330, 332 layout 332–35, 335 processes 325–26 returned goods 329 regional distribution centres (RDCs) 54, 127, 170–71, 174, 227, 478–79, 478, 521 Recruitment and Employment Confederation (REC) 165 request for information (RFI) 78, 594, 595 request for quotation (RFQ) 235, 239, 249, 595 research (on) on-shelf availability (Institute of Grocery Distribution, 2005) 82–83 retailing (and) 81–83 inventory reduction 82 on-shelf availability/the last 50 metres 82 return on investment (ROI) 23–24, 23, 522, 607, 647 reverse logistics 562, 567, 651–54 risk assessment 71, 355, 590, 597, 604, 605, 606, 635, 638, 642 road freight, international 375–76 road freight transport: computer routeing/scheduling 230, 475–76, 480, 482, 494, 495–96 road freight transport: manual methods of vehicle routeing/scheduling daily (manual) scheduling system 488–90, 489 manual scheduling for strategic planning purposes 490–92, 494–95, 490, 492, 493, 494 road freight transport: planning and resourcing (and) 474–502 fleet management 476–78 key planning aspects 457–76 manual methods see road freight transport: manual methods of vehicle routeing/ scheduling other systems applications 500–501 primary transport element 478, 478 secondary transport element 478, 478–80 transport resources: requirements and optimization 480–82 vehicle routeing/scheduling see road freight transport: vehicle routeing/scheduling road freight transport: vehicle costing (and) 456–73 key aspects of 458–60 the 5Ms 458 cost categorizations 459–60 overhead costs 466–67 reasons for 456–58 the total transport operation 467–68 vehicle cost comparisons 471, 471 vehicle running (variable) costs 464–66, 466 Index 687 vehicle standing costs 460–64, 461, 462, 464 whole life costing 468–70, 470 zero-based budgets 472 road freight transport: vehicle routeing/scheduling 482–88 data requirements for 485–88 different algorithms 484–85, 484 different types of routeing/scheduling problem 482–84 road freight transport: vehicle selection (and) 433–55 checklist of requirements 441–43 intermodal 427–28 legality and legislation 434 load types and characteristics 443–46, 444, 446 types of operation 435–43, 437, 438, 439, 440 vehicle acquisition 453–54 vehicle body types 446–51, 447, 448, 449, 450, 451, 452 vehicle types 434–35, 435, 436 wider implications 452–53 road trains 436 RoadRailers 420, 421, 427, 430 railcars (US) 430 RORO ferries 375, 400, 420, 426 Ross, D 72 Rushton, A 77 ® SCOR (Supply Chain Operations Reference) model 506, 509–10, 510, 527 sea freight 123, 368, 371, 373, 375 see also maritime transport security and safety (and) 445, 624–37 in distribution centre and warehouse 634–37 see also health and safety issues international measures for 625–26 see also United States (US) piracy at sea 627 see also maritime transport strategic security measures: supply chain vulnerability 626–27 tactical security measures for 627–34 the distribution centre 631–33 personnel 633–34 vehicles 627–31 segmentation, choice of 173–74 see also supply chain segmentation shipping see maritime transport shopping from home see home shopping Shukko see benchmarking site search, considerations for 148–50 checks for local development plans 149 financial considerations 149 local regulations/planning requirements 149–50 site details 149 size and configuration of site 149 suitable access 149 Six Sigma 110, 182, 355 Slack, N 179 stockholding (and) inventory types 195, 196 policy implications for other logistics functions 197–99 reorder point and safety stock 203–05, 204 the ‘square root law’ 197 stock levels 201–02, 202, 203 stock-keeping units (SKUs) 119, 120, 122, 172, 174, 208, 214, 215, 231, 291–92, 305, 309–10, 313, 315–16, 319, 321–22, 328, 341, 342, 353, 356, 357, 360 see also economic order quantity (EOQ) Storage Equipment Manufacturers Association (SEMA) 279, 355 storage and handling systems see non-palletized storage; palletized storage and pallets studies (of/on) 3PL market (Capgemini Consulting, 2012) 63–64 3PL relationships and renewal of contracts (Eyefortransport 2012) 612 3PL relationships with service providers (Langley and Capgemini, 2005) 612 effects of poor customer service 40 global logistics market (Datamonitor 2008) 13 International Federation of Red Cross/Red Crescent Societies (Davidson 2006) 663 outsourcing operations (Capgemini, 2012) 562 pick accuracy 362 supply chain vulnerability (Cranfield Centre for Logistics and Supply Chain Management, 2003) 626–27 third-party logistics (Langley, 2006) 63 total logistics expenditure (Armstrong and Associates, 2007) 10, 10 total logistics expenditure as percentage of sales revenues (Capgemini Consulting, 2012) 10 688 Index sub-optimization 17, 90, 95, 193, 197 supply chain planning (SCP) 225, 551–53 and enterprise-wide information systems 551–52 management/advanced planning and scheduling (APS) systems 552 network strategy 552–53 supply chain segmentation (and) 117–24 combined segmentation frameworks 122–23 demand and supply segmentation 119–21, 119 implementation 123 marketing segmentation 121–22 product segmentation 117–19, 118 supply chain structure and logistics 14–15, 14 see also integrated logistics and the supply chain and key issues and challenges supply chain(s) see also inventory and the supply chain and key issues and challenges decoupling point 220 event management systems 555 green supply 562 humanitarian 661–62, 661 and integrated supply chain metrics 510–11, 511 management and logistics 24, 28–30, 29 mapping 223–24, 224 planning (SCP) 225 see also supply chain planning (SCP) vulnerability 70, 626–27 surveys (of/on) 3PL service users re non-renewal of contracts (Eyefortransport 2012) 587–88, 588 benefits of CPFR in US companies (Sliwa, 2002) 247–48 drivers for outsourcing (Eyefortransport, 2005) 586 global companies with head of supply chain on the board (Eyefortransport 2012) 75 relative importance of logistics in industry Establish/Herbert Davis (2011) 13 success of environmental initiatives in logistics companies (Eyefortransport 2011) 69 US logistics costs (Establish/Herbert Davis, 2011) 11, 50 Sussams, J E 197 Sweden and DME fuel 657 rail freight in 368 systems thinking 176 Tatham, P 660 telesales 160, 567 ‘A third industrial revolution’ (The Economist, 2012) 189 third-party logistics see 3PL Thomas, A S 659 time compression 225–26 virtuous circle of 226, 227 total quality management (TQM) 182 Towill, D 122 Toyota 181, 244–45 see also just-in-time and JIT deliveries 245 trade-off analysis 17–18, 18 trailers Road Railer 420, 421 unaccompanied 420–21, 423, 422 Transport, Department for (UK) 415, 429, 645 report on domestic GHG emissions from transport 648 transport 554–55, 565–66 computerized routeing for see road freight transport: computer routeing/scheduling international trade management systems of 555 for outsourcing services 573–77, 574, 575 supply chain event management systems of 555 and telematics 555 and vehicle fleet management 554–55 truck(s) fork-lift 264–65, 268–73, 269, 270, 276–77, 281–82, 295, 330, 345, 409, 553, 635–36 management of 363 pallet 330 reach 263, 271, 277–79, 297, 298, 303, 306, 309, 311, 358 stacker 269 ® uncertainty 180, 203, 219, 246, 322 calculating 204 unit load devices (ULDs) 406, 407, 407, 418, 543 United Arab Emirates 436 United Kingdom (UK) 436 see also legislation (UK) Channel Tunnel route in 375, 427, 428, 432 Department for Transport website: www.dft.gov.uk 429 RORO ferry services in 375, 400 United Nations (UN) agencies 659 central register of disaster management capacities 667 Index 689 and the cluster approach 668–69, 669 Convention of Transboundary Impacts of Industrial Accidents 641 Doha Amendment (2012) 644 EDIFACT: Electronic Data Interchange for Administration, Commerce & Transport 549 Humanitarian Response Depots (UNHRD) 666 Centre of Excellence for Training in Logistics 666 Logistics Cluster Logistics Operations Guide (LOG) 667 World Food Programme (WFP) 662 United States (US) see also legislation (US) Bureau of Customs and Border Protection: www.cbp.gov 625 cargo security measures 625 Container Security Initiative (CSI) 624, 625–26 Council of Supply Chain Management Professionals: Annual State of Logistics Report (2012) 10–11 Customs–Trade Partnership against Terrorism (C–TPAT) 416, 624, 625 Free and Secure Trade (FAST) 624, 625, 626 and liner conferences exempt from anticompetition laws 390 rail freight in 368 reduction in logistics costs as percentage of GDP (2007–2009) 11 Secure Freight Initiative (SFI) 626 shipping surcharges 394 transport costs 11 Van Den Burg, G 417 vehicle acquisition methods: purchase; leasing; rental agreements 453–54 vehicles see intermodal vehicles; road freight transport and truck(s) heavy goods (HGV) 333, 435 large goods (LGV) 435, 636 vendor-managed inventory (VMI) 74, 82, 228, 230, 236, 237–38, 246 Walker, S 77 warehouse design procedure, steps for 336–52 calculate capital and operating costs 350 calculate equipment quantities 349–50 calculate staffing levels 350 define business requirements and design constraints 337–38 define and obtain data 338–40 define operational principles 342–43, 343 draw up high-level procedures and information system requirements 347 evaluate design against business requirements and design constraints 351 evaluate design flexibility 348, 349 evaluate equipment types 343–45, 344 finalize preferred design 351–52 formulate a planning base 340–41, 34, 342 prepare internal and external layouts 345–47 warehouse management (and) 353–63 data capture and transmission 360–62 see also subject entry information technology and WMS 358–60, 358, 359 legal requirements/local regulations 355 operational 353, 355, 354 performance monitoring 355–58 see also subject entry radio data communication 362 risk assessment 355 truck management 363 warehouse management system(s) (WMS) 304–05, 317, 323, 358–60, 359, 553 warehouses/warehousing (and) 255–65, 563–64, 571–72 break bulk 564 classification of 255–56 costs 263 cross-dock(ing) 262, 262, 564, 572 excess storage 564 holding inventory 256–58 international distribution operations 572 operations 259–62, 260, 261, 262, 571–72 and packaging/unit loads 263–65 roles of 257–58 storage 563 strategic issues affecting 258–59 trans-shipment 564 Warsaw Convention (1929) 405, 414 Wikipedia: definition of logistics Womack, P J 72 World Food Programme (WFP) 662, 666 Zairi, M 532 690 THIS PAGE IS INTENTIONALLY LEFT BLANK