Supply Chain Logistics

Supply Chain Management and Procurement October 25, 2025
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Introduction

This course provides a focused, comprehensive study of **Supply Chain Logistics**, covering the planning, execution, and control of goods, services, and information flows to meet customer requirements. It is the backbone of operational execution, encompassing transportation, warehousing, inventory management, and information integration. Participants will learn how to strategically select transportation modes, optimize warehousing operations, and apply network design principles to minimize cost while maximizing speed and reliability. Mastering these logistics functions is key to ensuring that products are delivered to the right place, at the right time, and in the right condition.

Objectives

Upon completion of this course, participants will be able to:

  • Define logistics management and its strategic role within the broader supply chain.
  • Evaluate and select the most appropriate transportation mode(s) based on cost, speed, and capacity.
  • Understand and apply the principles of effective warehouse layout and design.
  • Calculate and optimize basic inventory parameters, such as economic order quantity (EOQ).
  • Apply Incoterms rules correctly to allocate risk and cost in international trade.
  • Understand the functions and selection criteria for **Third-Party Logistics (3PL)** providers.
  • Design and manage efficient reverse logistics and returns processes.
  • Utilize key logistics metrics (e.g., on-time delivery, transport utilization) for performance monitoring.

Target Audience

  • Logistics Managers and Coordinators
  • Warehouse and Distribution Center Supervisors
  • Transportation Planners and Fleet Managers
  • Inventory and Materials Management Specialists
  • International Trade and Customs Compliance Personnel
  • Consultants specializing in Supply Chain Optimization
  • Operations Managers seeking logistics expertise

Methodology

  • Case study analysis of a company's distribution network optimization project.
  • Quantitative group activity: calculating the optimal number and location of distribution centers (simplified).
  • Individual exercise on applying Incoterms to a simulated trade transaction.
  • Simulation of a warehouse picking strategy comparison (e.g., wave picking vs. zone picking).
  • Discussions on the decision to insource vs. outsource transportation (3PL selection).

Personal Impact

  • Expertise in managing and optimizing complex logistics operations.
  • Ability to minimize transportation costs through strategic mode selection.
  • Clear understanding of risk allocation in international shipping (Incoterms).
  • Improved problem-solving skills for inventory and delivery challenges.
  • Enhanced career prospects in logistics and distribution management.

Organizational Impact

  • Significant reduction in total logistics costs and transportation spending.
  • Increased on-time delivery performance and customer satisfaction.
  • Optimized warehouse space and labor utilization.
  • Reduced inventory holding costs through precise transit and safety stock planning.
  • Improved efficiency in managing product returns and the reverse flow.

Course Outline

Unit 1: The Role of Logistics in SCM

Logistics Fundamentals
  • The definition of logistics: inbound, outbound, and internal flows
  • The seven rights of logistics (right product, quantity, time, etc.)
  • The logistics cost trade-offs (e.g., transport vs. inventory vs. facility)
Customer Service and Order Fulfillment
  • Setting customer service standards (e.g., order lead time, fill rate)
  • The concept of perfect order fulfillment and its measurement

Unit 2: Transportation Management

Modes and Selection
  • Detailed analysis of transportation modes: air, road, rail, sea, pipeline
  • Criteria for mode and carrier selection (cost, transit time, reliability)
  • Principles of freight classification and rate determination
International Logistics and Incoterms
  • Understanding **Incoterms** (e.g., EXW, FOB, DDP) and risk transfer
  • Basics of customs clearance and documentation (e.g., Bill of Lading)

Unit 3: Warehousing and Distribution

Warehouse Operations
  • Strategic role of warehouses, distribution centers, and cross-docks
  • Principles of efficient warehouse layout, slotting, and materials handling
  • Optimizing the core processes: receiving, putaway, picking, packing, and shipping
Network Design
  • Centralized vs. decentralized distribution network strategies
  • The impact of facility location on total logistics cost

Unit 4: Inventory Logistics and IT

Inventory in the Network
  • The role of safety stock and transit stock in buffer planning
  • EOQ model calculation and its practical application
  • Integrating logistics and inventory information systems (WMS, TMS)
Logistics Technology
  • Overview of Transportation Management Systems (TMS) and route optimization
  • The functions and capabilities of Warehouse Management Systems (WMS)

Unit 5: Performance and Reverse Logistics

Logistics Performance Metrics
  • Key metrics: cost per shipment, delivery reliability, capacity utilization
  • Techniques for measuring and reducing logistics-related loss and damage
Reverse Logistics
  • Designing the process for handling returns, repairs, and recycling
  • Managing the costs and complexity of the reverse flow

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