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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