MBA 4.2: LOGISTICS MANAGEMENT
Module 1
Introduction to Logistics and its interface with production and Marketing; Measures of Logistics; Physical distribution and logistics.
Introduction to Logistics
• When total supply chain system is integrated over a firm, it is known as logistics
• It is an integrated effort aimed at helping customer value at a lower cost.
• Without logistical support, marketing and manufacturing departments cannot accomplish product in timely or fresh manner.
• The value of logistics is evaluated when the inventory is correctly positioned to facilitate sale. It is very costly to create a logistical value.
• A firm gains competitive advantage by providing customer with superior service through quality logistics.
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Components
In order to achieve logistics operational objectives, while achieving its mission, a large no. of individual activities are required to perform, which constitutes functions of logistics management system. Different components constitute differently in the achievement of logistics mission and objectives which can be grouped in 3 broad categories.
a. Generic components
b. Primary components
c. Supportive components
Generic Components
Primary Components
Supportive Components
Components of a typical logistical system
Purchasing, packaging, inventory control, material handling, order processing, customer service, demand forecasting, distribution communications, parts & service support, plant or warehouse selection (location analysis), return goods handling, salvage & scrap disposal, traffic and transportation, and warehousing and storage.
Logistics Management
Definition
Logistical management includes the design and administration of system to control the flow of material, WIP and finished inventory to support business unit strategy.
Overall goal of logistics is to achieve a targeted level of customer service at the lowest possible total cost.
LOGISTICAL TOTAL COST – includes the cost of physical distribution system and cost of logistical supply chain
PHYSICAL DISTRIBUTION SYSTEM cost
4. Logistics is a critical part of a supply chain that is an integration of the logistics systems in all the organizations
Logistics is planning and executing of the movement and support of forces. When examining logistics I have to draw from my most
2. (p. 463) Logistics is the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution.
Outi (2000) studied logistics costs of industrial enterprises in a supply chain. The following aspects of logistics
There are many challenges being faced by the logistics industry today as the companies strive for sustainability. This is because the providers of logistics services have, over a period of several years, found them being integrated into the production processes of their customers, while at the same time, governments and businesses have continued to carefully weigh the issue of logistics in their investment and business decisions. Some of the previous trends and the forces of the operations of logistics that drive the transformation of a Freight forwarding company will be examined. It will focus on theories, conceptual models and frameworks that explain logistic operations. The gaps in the logistics operations and the dangers of not addressing
Cooper, M. C., D. M. Lambert, and J. D. Pagh. 1997. “Supply Chain Management: More than a New Name for Logistics.” The International Journal of Logistics Management 8 (1): 1–14.
Many companies have always viewed logistics as only a transport cost solution. Though transportation cost represent a huge expenditure for production companies, inventory management has the ability to significantly improve a company’s performance and reduce costs greatly.
The globalisation of markets has increased customer demand and product differentiation. Higher quality products and shorter delivery times are essential for maintaining customer satisfaction in highly competitive markets like the consumer electronics industry. Consequently, supply chain management is an important process in all businesses, and if managed effectively, can give companies a competitive edge. However, it often
The cost of logistics has a significant impact on product value. In general, the manufacturing cost of product has less than 10% of the total cost. However, the cost of storage, handling, transportation, sales, packaging and other activities, which is a main part of the whole supply chain. In addition, logistics
The logistics concerns the purchase, the inventory management, the handling, the storage, the launch, the sequencing, the methods of administration of sales and lots of other...
As a brief description of the subject in the study, the life cycle of logistics can also be maximized through establishing effective management organizing efforts to maintain a certain company’s operational structure that will avoid or prevent errors and mismanagement that can take place within the corporation. In this case, the 360 degree logistics can be found when there will be a capital expenditure that will be carried out to fund materials and human resources that will be helping to manufacture product. As soon as the product will be made and distributed to the market, there will be an exchange of commodity
It may sound complicated, but logistics is basically the management of stuff, and information regarding the stuff, from one place to another until it reaches the consumer. The logistical management of physical items may include integration of information (such as inventory databases and shipping schedules), material handling, production,
The concept of logistics has evolved over time in response to factors such as changes in the business environment. Grunnet (1996, p.32) notes that the focus was inventories in the 1950s, distribution in the 1960s, production in the 1970s, purchasing/production/sales in the 1980s, and business process in the 1990s. Logistics can be defined as that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customer’s requirements.
Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point of- consumption in order to meet customers ' requirements (Enarsson, 2015). Simply put, logistic means moving product from one point to another in the most effective way. The purpose of this assignment is to discuss the logistics activities, concept and technology because I know logistics is very important that is why I want to write more about it and explain each of the terms.
What is logistics? It is management process of the movement of resources it can be either raw material or finish goods between source of consumption and the end user i.e. customer, organization to meet requirements. There are various definitions in the literature or in the business world; the most suitable definition is the overall relationship between supply, material management and the distribution (Rushton A. ). This logistics concerned with physical as well as information flows, not only that it use in the storage form the raw material to final distribution of the finish good. In the logistics process physical items frequently involves the combination of material handling and the material flow, production, information