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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