Logistics Metrics to Assess Success S.No

Logistics:Metrics to Assess Success

S.No

Logistic Technique

Definition

Company that Uses the Technique

1

Distribution center&nbsp

&nbspThe technique involves use of group of facilities to do the consolidation, packing, decomposition and warehousing amongst other functions related to freight handling. The main objective of distribution centers is to offer services on value addition and perform light manufacturing processes like labelling and assembly to freights that are stored in short periods of time (Hall &amp Braithwaite, 2001).

Walmart Supermarket: over 160 distribution centers covering &nbsp120,000 sq. feet

2

Public warehouse&nbsp

&nbspThis entails using warehouse services from a third party client to store products, manage inventory and shipping functionality. The public warehouses are used on either temporary basis or permanent basis, especially when a company does not have a warehouse at close proximity to their customers and may need services like humidity control, cold storage or refrigeration (Caramia &amp Dell`Olmo, 2008).

&nbspAudiovox Automobile Company that uses public warehouse of Fritz Companies in Seattle.

3

Third-party logistics&nbsp

Entails outsourcing elements such as fulfilment and distribution services from third party businesses. The 3PL providers specialize in transportation services, warehousing and integrated operations to customize the needs of their clients based on market conditions like delivery based on demand (Hesse &amp Rodrigue, 2004).

&nbspProctor and Gamble that uses 3PL services from Metroport third party logistics provider.

4

Common carrier&nbsp

This involves use of transportation companies that offer services to the general public. This is mainly done on regular route over designated highways or irregular routes between different points on unscheduled basis. Common carriers provide shipping, freight and trucking services (Sankaran, 2000).

&nbspGeneral Motors that relies on common carrier services offered by Penske Logistics (LLP)

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5

Dedicated private fleet&nbsp

This involves use of fleet services such as trailers, tractors and drivers amongst other resources to offer shipping operations or transportation network for a facility without any direct management of the same.

&nbspAldi supermarket in Hungary uses dedicated private fleet services from Black Horse Carriers

6

Backhauls&nbsp

Backhauls logistic process uses return trip commercial trucks to transport freight back over section of or entire same route taken to get to current location. This means that it can be full, partial or empty (Deadheading) (Hesse &amp Rodrigue, 2004).

&nbspWalmart and Unilever (Walmart trucks pick goods from Unilever’s Distribution Centers to its own centers and Walmart trucks deliver goods from its own distribution centers to its stores.

7

Deadheading&nbsp

&nbspInvolve the return of the empty transportation container (s) to its (their) point of origin. In this case, the truck without a cargo does not generate any revenue (Eberlein, Wilson, Barnhart, &amp Bernstein, 1998).

&nbspAny companies that offer logistic, especially after delivery. Example is Federal Express Logistics (FedEx)

8

Freight equalization&nbsp

It is the process through which a buyer is charged for the freight that he/she should have paid if the goods were taken from nearest source of supply rather than actual cost incurred by the seller (Caramia &amp Dell`Olmo, 2008). &nbsp

&nbspTasmanian Freight Equalisation Scheme offers financial assistance for all the costs incurred for non-bulk goods moved across the sea between mainland Australia and Tasmania

References

Caramia, M., &amp Dell`Olmo, P. (2008). Multi-objective management in freight logistics: Increasing capacity, service level and safety with optimization algorithms. Springer Science &amp Business Media.

Eberlein, X. J., Wilson, N. H., Barnhart, C., &amp Bernstein, D. (1998). The real-time deadheading problem in transit operations control. Transportation Research Part B: Methodological, 32(2), 77-100.

Hall, D., &amp Braithwaite, A. (2001). The Development Of Thinking In Supply Chain And Logistics Management. In A. Brewer, K. Button, &amp D. Hensher, Handbook Of Logistics And Supply-Chain Management (pp. 81-98). Amsterdam: Pergamon.

Hesse, M., &amp Rodrigue, J. P. (2004). The transport geography of logistics and freight distribution. Journal of transport geography, 12(3), 171-184.

Sankaran, J. (2000). Freight logistics in the New Zealand context. International Journal of Physical Distribution &amp Logistics Management, 30(2), 145-164.