This chapter looked at the characteristics of data in the supply chain, how they can be used to plan and control flows and activities along the supply chain and we also reviewed the barriers to full visibility of these data. Various techniques such as VMI, MRP and ERP were reviewed. We then turned our attention to identifying appropriate KPIs to monitor performance in logistics systems and supply chains. As well as materials and data flows through the supply chain, the other significant flow is finance – we thus reviewed the different categories, and interpretations, of costs and how they are accrued in the supply chain. In particular, we explained the very important concept of total landed costs, which reveals the true and total cost of freight sourced overseas. The final part of the chapter introduced Incoterms and explained how they allow for clarity around who is responsible and accountable for the freight at the different stages of the supply chain. In addition, we also discussed the documentation that typically accompanies in‐transit freight and the efforts underway to facilitate more efficient movement of freight internationally through the elimination of bureaucracy and other barriers.
This now completes the second part of our book, which focused on logistics and supply chain operations, and, subsequent to the case studies that follow, we will move on to the third part of the book, which will deal with the whole area of supply chain design.
