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Topic 6 – Logistics and Supply Chain Management

Explore the diverse types of distribution facilities and their vital roles in logistics and supply chain management for optimal operations and customer satisfaction.

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Topic 6 – Logistics and Supply Chain Management

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  1. Topic 6 – Logistics and Supply Chain Management A – Logistics and Value Chains B – Distribution Facilities C – Distribution Systems

  2. B – Distribution Facilities Read section 2

  3. Warehouses versus Distribution Centers • What are the differences between a warehouse and a distribution center? • Both are physically similar with docking areas and storage racks. • Time; inventory is stored in a DC for shorter periods of times than a warehouse (days or weeks). • A warehouse tends to be supply-driven while a DC is focusing on the demand.

  4. Warehouses versus Distribution Centers • Warehouse (Storage) • Holding goods in inventory for an extended period of time and releasing them on demand. • Ownership of the cargo usually by the firm owning the warehouse. • Usually a buffer related function (inventory holding). • Distribution center (Distribution) • Consolidating, deconsolidating, sorting a cargo load or changing the load unit. • Cargo usually owned by others. • Usually a throughput related function.

  5. Types of Freight Facilities Read this content Storage Distribution Fabrication Heavy manufacturing Manufacturing facilities Light manufacturing Intermodal Terminal Terminals facilities Bulk or transload terminal Bulk warehouse Importance Storage facilities Warehouse High Average Multitenant facility Low Distribution center Distribution facilities Cross-docking facility Cold storage facility Urban logistics depot Parcel facilities E-fulfillment center Sortation center

  6. Container Terminal, Port of Gothenburg, Sweden

  7. Coal Bulk Facility, Mobile, Alabama

  8. Bulk Warehouse (Corn)

  9. Aluminum Parts Warehouse

  10. Walmart Distribution Center

  11. Cold Storage Facility

  12. Grocery Chain Cold Storage Facility, Regina Read this content

  13. Large Scale Grocery Cold Chain Distribution Center Read this content Suppliers Inbound Ambient (20 °C) ‘Banana’ (10 °C) Storage / Sorting Chilled (2 °C) Freeze (-10 °C) Outbound Customers

  14. Subtropolis Distribution Center, Kansas City Read this content

  15. Amazon E-Fulfillment Center

  16. Amazon Sortation Center

  17. Extended Distribution Center System of JVC Belgium Read this content

  18. Palletization of “Floor Loaded” Shipments, Belgium

  19. The Role of Distribution Centers and Warehouses Distribution Center Only Distribution Center and Warehouse Deliveries Deliveries Producers’ warehouse Distribution center Deliveries Distribution center Deliveries Deliveries Production unit Delivery vehicle Retail store Consignment Read this content

  20. Asynchronism and Distribution Centers Production and Consumption Supply Chains Consumption DC Production Shipment Size Market Areas DC DC Read this content

  21. Main Warehousing Operations Deliveries Pick Ups Put away Order-picking 55% 15% Receiving Storage Picking Shipping 10% Sortation Packing

  22. Criteria for Distribution Centers

  23. Cross-Docking Distribution Center Read this content Distribution Center Before Cross-Docking Suppliers Suppliers LTL Receiving Customers Sorting After Cross-Docking Shipping FTL Cross-Docking DC FTL Customers

  24. Market Area of Distribution Centers Located in the United States, 2012

  25. Hours of Operation of Distribution Centers

  26. Optimal Location and Throughput by Number of Freight Distribution Centers Read this content

  27. Short Assignment: Distribution Facilities Explain what are the main types of distribution facilities and the role they each play

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