Order Processing
Inventory
Warehousing Material Handling
Packaging
Transportation
1-11
Logistical Integration
Inventory Flow Enterprise
Customers
Market Distribution
Year 1999 Transportation
1980 GDP $2.88 trillion Logistics Cost $451 billion
15.7% of GDP Trans. Cost $214 billion
2007 GDP $13.84 trillion Logistics Cost $1398billion
Chemical manufacturer (e.g. Oil Company)
Paper Manufacturer
Chemical manufacturer (e.g. Oil Company)
Timber Industry
1-4
Anticipatory Business Model
FORECAST
Manufacturing Support
Procurement
Suppliers
Information Flow
1-12
Market Distribution Operating Concerns
Market Distribution:
Activities related to providing customer service. Requires performing order receipt and processing, deploying inventories, storage and handling, and outbound transportation within a supply chain. Includes the responsibility to coordinate with marketing planning in such areas as pricing, promotional support, customer service levels, delivery standards, handling return merchandise, and life-cycle support. The primary market distribution objective is to assist in revenue generation by providing strategically desired customer service levels at the lowest total cost.