Logistics Case Study#2

Topics: Supply chain management, Logistics, Management Pages: 2 (493 words) Published: November 25, 2010
1 . How can design for logistic concepts be used to control logistics costs and make the supply chain more efficient ?
Design for logistics concepts can be used to control logistics costs by applying the concepts to the supply chain process . The DFL focuses on three concepts , which are : packaging and transportation , parallel and concurrent processing , and standardization . In terms of controlling logistics costs , the DFL suggests that packaging and transportation can be improved to save on costs . If products parts are shipped in bulks , instead of transporting the already assembled products , the company will make a lot of savings . Hewlett-Packard can apply this to its operation by transporting the printer 's parts to minimize space and leave the assembly to the distribution centers .

The parallel and concurrent processing can be effective in shortening the manufacturing time of a product . This will also improved forecasting since many product components can be made at the same time . In terms of components that need to be purchased and the supply is uncertain , the company can buy that part in volume . This way , only that component needs to have a high level of inventory instead of the entire product . This is highly applicable to HP 's problem of maintaining a low inventory level while meeting customer needs . As for

standardization , HP has already a standardized manufacturing process but it needs to break it down by module or by part . HP can also implement a standardized procurement of materials .
2 . What is delayed differentiation and how can Hewlett-Packard use delayed differentiation to address the problems described in the case ? How can the advantages of delayed differentiation be quantified ? Delayed Product Differentiation is a manufacturing technique wherein processes and parts are standardized while leaving the decision to what end product would result during the actual assembly of the specific product . This...
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