How Can Design for Logistic Concepts Be Used to Control Logistic Cost and Make the Supply Chain More Efficient? Essay examples

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Pages: 4

1. How can Design for logistic concepts be used to control logistic cost and make the supply chain more efficient?
Design for logistics is a series of concepts in the field of supply chain management involving product and design approaches that help to control logistics costs and increase customer service levels. The concepts include the three key components, Economic packaging and transportation, Concurrent and parallel processing, and Standardization.
Economic packaging and transportation
EPT is the most obvious involved designing products so that they can be efficiently packed and stored. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects
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They could then send these generic parts for assembly in the assembly plants in Europe and Asia. They can also build an assembly plant in each of these countries and leave the customization and location of the printers to these plants. The availability would increase while not increasing the inventory level in Canada.
The advantages of this process can be quantified by making costs comparison and sales comparison before and after the differentiation process is implemented
When should suppliers be involved in the new product development process?
According to the text there is no single appropriate level to integrate suppliers into the new product development process. Instead there is the notion of ‘Spectrum of Supplier Integration” - the timing of supplier integration in the new product development process may vary, and so may the extent of integration. The spectrum of supplier integration identified a series of steps from the least to the most important responsibility of suppliers:
NONE: The supplier is NOT involved at the design stage; materials and sub-assemblies are supplied according to customer stipulations and demands.
WHITE BOX: This is an informal level of integration; the buyer consults informally with the supplier during the buyer’s design and specification process. The supplier is still NOT involved at this stage.
GREY BOX: This is the stage when suppliers are