1-1

Logistics ManagementLSM 730

Dr. Khurrum S. Mughal

Lecture 29

11-2CR (2004) Prentice Hall, Inc.

Economics of Storage/Handling Alternatives

Private warehousing,automated handling

Publicwarehousing

Private warehousing,pallet-forklift truckhandling

Leased warehousing

a b c d

Cost

to c

ompa

ny, $

Annual system throughput, cwt.0

a Economical range for public warehousing.b Economical range for leased warehousing, manual handling.c Economical range for private warehousing, pallet-forklift truck handling.d Economical range for private warehousing, automated handling.

CR (2004) Prentice Hall, Inc.

Activity Fragmentation in the Supply Chain (Cont’d)

PresidentPresident

MarketingMarketing FinanceFinance OperationsOperations

•More inventory•Frequent &

short production runs

•Fast order processing

•Fast delivery•Field

warehousing

•Less inventory

•Cheap order processing

•Less warehousing

•Long production runs

•Lowest cost routing•Plant warehousing

Objectives

15-5

The Cold Chain and Logistics:

What does anything else matter if the vaccine isn’t good?

The Cold Chain

Which are most sensitive to heat?

Which do you never want to freeze?

(OPV, Measles, MR, MMR, BCG can be frozen, but not diluents)

Do Not

Freeze

WHO Recommended Storage Conditions for Vaccines

Cold Chain Equipment & Logistics

• Refrigerators/Freezers– Generators/ Voltage Stabilizers

• Cold Boxes• Vaccine Carriers (Foam Pad)• Ice Packs

Check condition every time you visit a facility!

Refrigerators/Freezers

Freezers (-15 to -25 degrees C)– Ice Pack Freezers (24 hours)

• Refrigerators (usually w/freezer)– Electric• Ice Lined Refrigerators

– Kerosene – LP Gas– Solar

Ice Lined Refrigerators (ILRs)

Can maintain temperature for 16 hours without power if operate w/power continuously for at least 8 hours a day!

Refrigerators/FreezersReminders

• At least 10 cm from wall• Off the floor• Kept clean, esp. dust in coils• Out of direct sunlight• Only vaccine to be stored. • Opened minimal times per day• Generator or kerosene = good ventilation• Voltage stabilizers to avoid damage to compressors caused by changes in

electricity.

Storage of Vaccines in Refrigerators

Loading top loading refrigerators

Good or Not Good?

Good or Not Good?

What do you do?

Is it working?

Cold Boxes

•Insulated for short–term use: 2-7 days

•Used in campaigns or when refrigerator out of order

•Consideration for use and storage capacity, outside temperture, available transport

Vaccine Carriers and Ice Packs

Good or Not Good?

Effect of melted ice packs in vaccine carriers on labels

Tools for monitoring temperature

Temperature monitoring chart for facilities

Shake Test (for freeze sensitive vaccines)

Vaccine Vial Monitor (VVM)

VVMs on Vaccines

Cold Chain in Campaign Setting

Cold Chain in Campaign Setting - Polio

• Ice Pack Freezing/Assuring Power Source • Sunlight is harmful for OPV vaccine• Heavy reliance on VVM • Usually use 4 ice packs but in some countries, fewer ice packs OK• Ice is acceptable if no other choice

– Try to protect vials from wet• Can keep vials out of vaccine carrier as needed until VVM turns—

especially when using vaccine carriers for more than 1 day and need to preserve the temperature.

Check VVM each time before putting drops in child’s mouth!

Cold Chain in Campaign Setting - Measles

• Sunlight is harmful for measles containing vaccine• Diluent should be cooled before mixing with vaccine• After reconstitution

– Keep the vial out of the light– Keep the vial as cool as possible without freezing it– Use foam pad to keep open vial whenever available

• Vaccine should not be pre-drawn• Reconstituted vaccine discarded by 6 hours after adding diluent

Agility, A New Logistics Leader

Meeting the Challenges of Global Trade

Efficient Supply Chain Services and Introduction of Agility Logistics

32

Supply Chain Solutions

3333

Introducing Agility

3434

Our name may be new to you, but we have a long history.

3535

The Scale of Our Business

Founded in 1979550+ offices100+ countries$6.2 billion revenue (USD)Over 32,000 employeesTop ten logistics providerPublicly traded6000+ owned vehicles and transport assets10 million square meters of warehousing space800,000 pallet positions

36

•The strategy, processes, people, technologies and resources responsible for ensuring the flow of materials and services necessary to deliver an organization’s value to its end-user customers.

•SCM solution has emerged as a key differentiator for gaining competitive advantage. The on going search for cost control and value creation has impelled organization to turn to SCM to achieve bottom line results.

Supply Chain Management (SCM)

37

Sour

cing

& O

rder

Man

agem

ent

V

endo

r Co-

ordi

natio

n

Pac

kagi

ng

Plan

ning

, Boo

king

& P

re-a

lert

s

Inve

ntor

y

W

MS

D

istr

ibuti

on

Tr

ansp

orta

tion

S

tore

Ope

ratio

ns

Cons

umer

Integrated Information Systems

Efficient Supply Chain enabling to be proactive then reactive through seamless flow of

information in the chain

Visibility

Cons

umer

C

usto

m B

roke

rage

$

38

Non-integrated information sharing

You & your offices

Your suppliers several airlines Handling agents Warehouses

Agility partners

Your customers

?

An everyday situation … “Where is the Shipment/Order?”

39

Integrated Information Sharing

You & your offices

Suppliers

Airlines Handling agents

Agility Warehouses

Agility partners

End customers

EDI

Customer offices

40

Receiving

•Schedule Carrier•Unload Vehicle•Inspect Damages•Compare to ITS

Put-away

•Identify Product•Identify Location•Move Product•Update WMS

Storage

•Equipment – MHE•Stock Location

Order Picking

•SO – Pick List•Proceed to staging area

Shipping

•Schedule Delivery•Load vehicle•Check commodity•WMS Update

41

Warehouse Management System (WMS)

•Why use a dedicated WMS? Reduced investment

Systems support Software development

More detailed inventory visibility Not only is it in the facility, but is it available Improve Customer service

Shorter Cycle Time of Orders Better utilization of resources Increase Productivity

Inventory reduction Lower inventory cost Better utilization of Space

Increases accuracy of Orders