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Managing the Supply Chain

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First the attached articles:

After reading articles, answer the following:

1. Compared to the traditional focus on outbound transportation logistics, why are more organizations taking a closer look at the savings and benefits that can be generated from greater efficiency on inbound transportation logistics?

2. Why are more and more organizations viewing 4PLs as solutions for helping to optimize inbound logistics?

3. How did Penske Logistics help Ford optimize its inbound logistics?

Expectations

Focus on the work demonstrating an understanding of the role transportation plays in achieving supply chain efficiency. It is expected that the work will display sensitivity, critical thinking skills, and depth in understanding the importance of addressing both inbound and outbound logistics when attempting to optimize the transportation component of a supply chain. It is also hoped that the paper will encourage the student to apply creativity in assessing the transportation benefits that could be gained from implementing an advanced TMS (transportation management system) and outsourcing to 3PLs and 4PLs.

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1. Compared to the traditional focus on outbound transportation logistics, why are more organizations taking a closer look at the savings and benefits that can be generated from greater efficiency on inbound transportation logistics?

Greater efficiency on inbound transportation is looked at with greater potential by organizations because outbound logistics helps power synergies and helps deploy assets more efficiently. This leads to greater synergies than if the firm were operating with only outbound logistics. Further savings and benefits are increased when inbound materials handling for different plants are centralized and managed efficiently. It has been observed that costs savings are easier when more efficient designs are applied to inward logistics. For instance, an efficient use of dispatch centers can reduce the costs substantially. It is important to generate greater efficiency from inbound transportation through the method of cross-decking. This method enables reduction of inventory carrying costs as well as ensures that almost none of the carrying capacity of the trucks is unused. This increases efficiency and reduces costs. It is the combination of cost reduction of inbound transportation costs, just-in-time techniques and lower inventory costs that has made organizations focus more on inbound logistics transportation costs (Kutlu. S, 2007),

These organizations are focused on inbound logistics transportation pricing leverage between suppliers and manufacturing organization. In ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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