4.4 - Manage logistics and warehousing
PCF ID: 10219 | Elements: 32 | Metrics Available: Y | Benchmarkable: 7
Definition
Administering and overseeing all activities related to logistics and warehousing. Outline and establish a strategy for the logistics function. Plan and administer the flow of inbound materials. Administer the operational activities of warehousing and outbound transportation. Manage reverse logistics including returns and exchanges.
Overview
This process group covers manage logistics and warehousing within the broader context of Deliver Physical Products.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 4.4.1 | Provide logistics governance | 10338 | 7 | Y |
| 4.4.2 | Plan and manage inbound material flow | 20936 | 8 | Y |
| 4.4.3 | Operate warehousing | 10340 | 8 | Y |
| 4.4.4 | Operate outbound transportation | 10341 | 4 | Y |
4.4.1 - Provide logistics governance
PCF ID: 10338
Definition: Outlining the strategy for managing logistics. Translate customer requirements logistic requirements. Create an efficient logistic network and outsourcing portions of logistics activities. Design a logistics strategy that optimizes transportation costs and schedule. Define key performance indicators.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 4.4.1.1 | Translate customer service requirements into logistics requirements | 10343 | 0 | N |
| 4.4.1.2 | Design logistics network | 10344 | 0 | N |
| 4.4.1.3 | Communicate outsourcing needs | 10345 | 0 | N |
| 4.4.1.4 | Develop and maintain delivery service policy | 10346 | 0 | N |
| 4.4.1.5 | Optimize transportation schedules and costs | 10347 | 0 | N |
| 4.4.1.6 | Define key performance measures | 10348 | 0 | N |
| 4.4.1.7 | Define reverse logistics strategy | 16905 | 0 | N |
4.4.1.1 - Translate customer service requirements into logistics requirements
Definition: Determining the requirements for managing the flow of things between the point of origin and the point of consumption by assessing the service requirements of the customers.
4.4.1.2 - Design logistics network
Definition: Developing a network for logistical activities. Create a network of entities through which materials and information flow, encompassing all related activities associated with the flow of transformation of products.
4.4.1.3 - Communicate outsourcing needs
Definition: Conveying outsourcing needs within the organization, with the objective of sourcing the assistance required. Define the portion of logistical activities that can be transferred to outside suppliers. Assess third-party agencies to carefully select the most appropriate agencies for outsourcing. Convey these needs to management or the appropriate authority.
4.4.1.4 - Develop and maintain delivery service policy
Definition: Establishing rules and regulations, as well as the terms and conditions regarding the delivery of service by the company. Develop a delivery plan that specifies what, how, when, and in which way to deliver services to the customer.
4.4.1.5 - Optimize transportation schedules and costs
Definition: Optimizing the schedule and costs of transportation services. Design a logistics strategy by strategically creating delivery routes and systems, which optimizes the overall transportation schedules and costs. Evaluate different transportation sources in order to select the most appropriate and cost-effective sources.
4.4.1.6 - Define key performance measures
Definition: Establishing measures for evaluating the performance of the logistics strategy of the organization. Establish key performance indicators, including the logistics performance index, delivery in full, and delivery on time.
4.4.1.7 - Define reverse logistics strategy
Definition: Establish a strategy that includes rules and regulations for the physical handling, information processing, and disposition of product and packaging returned by the buyer to the seller or an intermediary. Include return approval, transportation coordination, advance communication, product tracking, receipt, disposition of the return, and processing warranty claims in the strategy.
4.4.2 - Plan and manage inbound material flow
PCF ID: 20936
Definition: Creating and executing a strategy for all the internal activities related to the flow/transfer of inbound materials. This process includes planning inbound material receipts, managing inbound material flow, monitoring inbound delivery performance, managing the flow of returned products, controlling the quality of returned parts, and salvaging or repairing returned products.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 4.4.2.1 | Plan inbound material receipts | 10349 | 0 | N |
| 4.4.2.2 | Manage inbound material flow | 10350 | 0 | N |
| 4.4.2.3 | Monitor inbound delivery performance | 10351 | 0 | N |
| 4.4.2.4 | Manage flow of returned products | 10352 | 0 | N |
| 4.4.2.5 | Control quality of returned parts | 12708 | 0 | N |
| 4.4.2.6 | Salvage or repair returned products | 20109 | 2 | Y |
4.4.2.1 - Plan inbound material receipts
Definition: Managing the receipts of inbound materials. Create a plan accounting for the materials procured from the source of supply and the materials delivered to the distribution center or the warehouse.
4.4.2.2 - Manage inbound material flow
Definition: Managing all the internal activities related to the flow/transfer of materials. Manage materials being delivered to distribution center or warehouse. Gauge the time taken for delivery and if the delivery process is on time.
4.4.2.3 - Monitor inbound delivery performance
Definition: Overseeing the performance of an inbound delivery system. Check the present delivery system's efficiency, cost effectiveness, and adherence to a delivery schedule.
4.4.2.4 - Manage flow of returned products
Definition: Tracking and taking care of the products that have been internally returned either because of their deficiency or in cases of incorrect delivery.
4.4.2.5 - Control quality of returned parts
Definition: Implement a checks and balances system to verify that returned parts meet acceptable quality standards to determine appropriate disposition activity.
4.4.2.6 - Salvage or repair returned products (2 tasks)
Definition: Determining if a returned product can be salvaged or repaired. Salvage or repair is dependent upon the product, the condition of the product, or the availability of a like item.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 4.4.2.6.1 | Perform salvage activities | 10366 | Executing activities for reinstating the returned products. Present the customer... |
| 4.4.2.6.2 | Manage repair/refurbishment and return to customer... | 14195 | Administering the reinstatement of the returned product in order to return them ... |
4.4.3 - Operate warehousing
PCF ID: 10340
Definition: Tracking the inventory deployment. Accept and store products. Ship the products. Measure the accuracy of the inventory. Assess the performance of the outsourced logistics activities.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 4.4.3.1 | Track inventory deployment | 10353 | 0 | N |
| 4.4.3.2 | Receive, inspect, and store inbound deliveries | 10354 | 0 | N |
| 4.4.3.3 | Track product availability | 10355 | 0 | N |
| 4.4.3.4 | Pick, pack, and ship product for delivery | 10356 | 0 | N |
| 4.4.3.5 | Track inventory accuracy | 10357 | 0 | N |
| 4.4.3.6 | Track third-party logistics storage and shipping performance | 10358 | 0 | N |
| 4.4.3.7 | Manage physical finished goods inventory | 10359 | 0 | Y |
| 4.4.3.8 | Manage warehouse transfers | 20957 | 0 | N |
4.4.3.1 - Track inventory deployment
Definition: Tracking the logistical act of delivering or releasing an inventory item or entity to targeted end users. Track how much inventory has been deployed at all the distribution centers, individually.
4.4.3.2 - Receive, inspect, and store inbound deliveries
Definition: Coordinating the incoming inbound materials/products. Accept the delivery of these materials and the subsequent storage. Track them at the warehouse/distribution center.
4.4.3.3 - Track product availability
Definition: Keeping track of the availability of different materials/products at the warehouse and distribution centers.
4.4.3.4 - Pick, pack, and ship product for delivery
Definition: Packing and shipping the product to deliver to the customer. Take care of the internal and external packaging of the products in order to ensure safe transportation of the products from the warehouse to delivery locations. Notify the ERP system and/or Accounts Receivable Dept.
4.4.3.5 - Track inventory accuracy
Definition: Monitoring any discrepancies between electronic records that represent the inventory and the physical state of the inventory. Look for discrepancies such as phantom inventory, which includes products that an inventory accounting system considers to be available at the storage location but are not actually available.
4.4.3.6 - Track third-party logistics storage and shipping performance
Definition: Keeping a track on the storage and shipping performance of third-party agencies. Monitor logistics storage and shipping performance for third-party agencies. Use measures such as a logistics scoreboard, activity-based costing, economic value analysis, and balanced scorecards.
4.4.3.7 - Manage physical finished goods inventory
Definition: Administering the movement of the finished products that are processed by the organization through its warehouses. Track goods through the use of systems such as barcodes in order to monitor the volumes available, quantity of out-flowing goods, remaining shelf life of the product, etc.--ultimately, to best manage the warehouse capacity.
4.4.3.8 - Manage warehouse transfers
Definition: Shipping items from one warehouse to another in a multi-warehouse environment. A warehouse transfer is typically handled electronically in a system designed to replicate the physical processes involved with transferring items from one warehouse to another.
4.4.4 - Operate outbound transportation
PCF ID: 10341
Definition: Creating a plan that specifies the schedule and system for transportation and delivery of the outbound products, as well as tracking the performance of the carrier delivery system. Conduct vehicle management and processing of all carrier-related documents.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 4.4.4.1 | Plan, transport, and deliver outbound product | 10360 | 0 | N |
| 4.4.4.2 | Track carrier delivery performance | 10361 | 0 | N |
| 4.4.4.3 | Manage transportation fleet | 10362 | 0 | N |
| 4.4.4.4 | Process and audit carrier invoices and documents | 10363 | 0 | N |
4.4.4.1 - Plan, transport, and deliver outbound product
Definition: Organizing the transportation and delivery of outbound products. Plan and organize the transportation, shipping, and delivery of the end products. Create a plan that specifies dispatch and delivery of the product to its destination, as well the transportation.
4.4.4.2 - Track carrier delivery performance
Definition: Monitoring delivery performance when carrying products from the warehouse/distribution centers to the retailers or end consumers. Create a performance metrics based on the key performance indicators.
4.4.4.3 - Manage transportation fleet
Definition: Taking care of a range of functions related to the means of transport used for delivering the end products. Manage vehicle financing, vehicle maintenance, vehicle telematics (tracking and diagnostics), driver management, speed management, fuel management, and health and safety management.
4.4.4.4 - Process and audit carrier invoices and documents
Definition: Organizing and inspecting all account statements and any other documentation for the carriers used in delivery. Create, manage, and inspect all documents related to the financial, regulatory, and administrative accounts of all the carriers/freights. Generate receipts for all freight transactions.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 32 elements
| ID | Name | Definition |
|---|---|---|
| 4.4 | Manage logistics and warehousing | Administering and overseeing all activities related to logistics and warehousing. Outline and establ... |
| 4.4.1 | Provide logistics governance | Outlining the strategy for managing logistics. Translate customer requirements logistic requirements... |
| 4.4.1.1 | Translate customer service requirements ... | Determining the requirements for managing the flow of things between the point of origin and the poi... |
| 4.4.1.2 | Design logistics network | Developing a network for logistical activities. Create a network of entities through which materials... |
| 4.4.1.3 | Communicate outsourcing needs | Conveying outsourcing needs within the organization, with the objective of sourcing the assistance r... |
| 4.4.1.4 | Develop and maintain delivery service po... | Establishing rules and regulations, as well as the terms and conditions regarding the delivery of se... |
| 4.4.1.5 | Optimize transportation schedules and co... | Optimizing the schedule and costs of transportation services. Design a logistics strategy by strateg... |
| 4.4.1.6 | Define key performance measures | Establishing measures for evaluating the performance of the logistics strategy of the organization. ... |
| 4.4.1.7 | Define reverse logistics strategy | Establish a strategy that includes rules and regulations for the physical handling, information proc... |
| 4.4.2 | Plan and manage inbound material flow | Creating and executing a strategy for all the internal activities related to the flow/transfer of in... |
| 4.4.2.1 | Plan inbound material receipts | Managing the receipts of inbound materials. Create a plan accounting for the materials procured from... |
| 4.4.2.2 | Manage inbound material flow | Managing all the internal activities related to the flow/transfer of materials. Manage materials bei... |
| 4.4.2.3 | Monitor inbound delivery performance | Overseeing the performance of an inbound delivery system. Check the present delivery system's effici... |
| 4.4.2.4 | Manage flow of returned products | Tracking and taking care of the products that have been internally returned either because of their ... |
| 4.4.2.5 | Control quality of returned parts | Implement a checks and balances system to verify that returned parts meet acceptable quality standar... |
| 4.4.2.6 | Salvage or repair returned products | Determining if a returned product can be salvaged or repaired. Salvage or repair is dependent upon t... |
| 4.4.2.6.1 | Perform salvage activities | Executing activities for reinstating the returned products. Present the customer with additional inc... |
| 4.4.2.6.2 | Manage repair/refurbishment and return t... | Administering the reinstatement of the returned product in order to return them back to customers. R... |
| 4.4.3 | Operate warehousing | Tracking the inventory deployment. Accept and store products. Ship the products. Measure the accurac... |
| 4.4.3.1 | Track inventory deployment | Tracking the logistical act of delivering or releasing an inventory item or entity to targeted end u... |
| 4.4.3.2 | Receive, inspect, and store inbound deli... | Coordinating the incoming inbound materials/products. Accept the delivery of these materials and the... |
| 4.4.3.3 | Track product availability | Keeping track of the availability of different materials/products at the warehouse and distribution ... |
| 4.4.3.4 | Pick, pack, and ship product for deliver... | Packing and shipping the product to deliver to the customer. Take care of the internal and external ... |
| 4.4.3.5 | Track inventory accuracy | Monitoring any discrepancies between electronic records that represent the inventory and the physica... |
| 4.4.3.6 | Track third-party logistics storage and ... | Keeping a track on the storage and shipping performance of third-party agencies. Monitor logistics s... |
| 4.4.3.7 | Manage physical finished goods inventory | Administering the movement of the finished products that are processed by the organization through i... |
| 4.4.3.8 | Manage warehouse transfers | Shipping items from one warehouse to another in a multi-warehouse environment. A warehouse transfer ... |
| 4.4.4 | Operate outbound transportation | Creating a plan that specifies the schedule and system for transportation and delivery of the outbou... |
| 4.4.4.1 | Plan, transport, and deliver outbound pr... | Organizing the transportation and delivery of outbound products. Plan and organize the transportatio... |
| 4.4.4.2 | Track carrier delivery performance | Monitoring delivery performance when carrying products from the warehouse/distribution centers to th... |
| 4.4.4.3 | Manage transportation fleet | Taking care of a range of functions related to the means of transport used for delivering the end pr... |
| 4.4.4.4 | Process and audit carrier invoices and d... | Organizing and inspecting all account statements and any other documentation for the carriers used i... |
Back to: Category 4.0 - Deliver Physical Products | APQC PCF Overview | Full Glossary