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

Topics: Logistics, Supply chain management, Inventory Pages: 3 (984 words) Published: May 2, 2013
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 such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities. Efficient transportation reduces costs, while inefficient transportation increases costs. Because the movement of freight has changes in economic systems at the global, regional and local scales, Hewlett Packard (HP) must find a way to make movement of good in their supply chain more efficient and less expensive. HP must adopt the “cube out” method in their transport trucks and when packing international containers. When their products are loaded into an international container, they may “weight out” - reach the allowed over the road weight when mounted on a chassis or they may “cube out - reached its volumetric capacity before its permitted weight limit especially when they are shipping their products. HP can Cube out all their shipping containers because the HP products are in the same shape and size boxes. They can also concentrate on design but the HP printer are all shaped the same way so design should not be a problem for HP. Final packing can also be adopted; it will save on transportation cost...
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