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Logistics and Supply Chain Management

Logistics and Supply Chain Management (SCM) Cost and Agility Assessment Tool and Case Study

Fictive Case Study

Step 2 — Logistics and Supply Chain Management Cost Activities Categories

 

 

 

 

 

 

 

 

 

 

 

 

2. Logistics and Supply Chain Management Cost Activities Categories
Sidekic Logistics and SCM infrastructure depreciation and other depreciation cost Transport equipment depreciation and other related cost Logistics and SCM technology investment depreciation Logistics and SCM overhead cost Logistics and
SCM wages cost
Training cost related to logistics and SCM occupation
(K$) Internal External Internal External Internal External Internal Internal External Internal
Inbound and outbound transportation Loading dock, security devices, railway ramp 20 NA NA Refrigerated carriers, trucks, other vehicles 150 Contracts with transportation firms 400 State-of-the-art logistics and SCM system for modern transportation 15 GPS tracking system 10 5% 58 Truck drivers 350 Contractors 150 Security training, driver licensing 10
Transportation management Office space, MRO 15 Contracts with transportation brokers 20 NA NA NA NA TMS software, computer equipment 10 Logistics & SCM tracking & tracing system 5 5% 10 Transportation managers, analysts 100 Transportation management consultant 40 Technical training, continuous learning activities 5
Warehousing and materials handling Distribution centre (labeling machines, converging belts) 400 Contracts to 3PL & SCM services providers 200 Forklifts, electronic equipments 65 Leases of forklifts 45 Material storage, material handling systems 20 NA 4 5% 87 Warehouse operatives, material handlers 900 NA NA Basic principle training and continuous learning activities 10
Inventory management Office space, MRO 20 Contracts to 3PL & SCM services providers 20 NA NA NA NA Warehouse optimization simulation tools, RFID system 10 Access to 3PL & SCM warehouse management 4 5% 7 Warehouse management analyst 60 Inventory control consultant 20 Courses on inventory management 3
Logistics and SCM network design Office space, MRO 20 NA NA NA NA NA NA Logistics & SCM network optimization systems 5 Access to inter-model modelization systems 5 5% 4 Network design teams 35 Logistics & SCM network analysis services 15 Training on logistics & SCM network design 3
Supply/demand planning Office space, MRO 15 NA NA NA NA NA NA CPFR application 5 Access to customers CPFR applications 5 5% 4 Supply and demand analyst 35 Market analyst(s) 15 Training on supply and demand planning 5
Management of 3PL and SCM services providers Office space, MRO 10 NA NA NA NA NA NA NA NA Access to 3PL & SCM system via internet 6 5% 2 Logistics & SCM analyst 29 NA NA Training on 3PL & SCM services providers 1
Custom brokerage/ freight forwarding Office space, MRO 5 Contracts for custom brokerage and freight forwarding firms 40 NA NA NA NA EDI system, trade management system 10 Web EDI and other related electronic firms 5 5% 4 Freight cost analyst 15 Shipping consultants, freight forwarders 5 Training on custom brokerage and freight forwarding 2
Sourcing and procurement processes (excluding purchase of goods cost) Office space, MRO 60 Contracts to 3PL & SCM services providers 15 NA NA NA NA CRM application, procurement systems 30 Access to electronic marketplace 15 5% 33 Procurement sourcing analysts, transactional clerks 300 Procurement consultant 200 Training on sourcing and procurement processes 6
Total 565 295 215 445 105 59 210 1815 445 45
Total internal logistics and SCM costs:  2,955
Total external logistics and SCM costs:  1,244

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