Logistics in supply chain Flashcards
What is internal logistics?
The logistics of moving raw
materials, parts, components, and
products inside a facility or single
location.
What is logistics?
Logistics refers to the processes and networks used to move and store materials within supply chains
and move products to their final destination. Logistics is considered a subset or part of a supply chain.
What is external logistics?
The logistics of moving raw materials, parts,
components, and products through multiple
locations.
* suppliers
* factories
* distributions points / warehouses
* receiving/ shipping docks (inbound and
outbound logistics)
* customers
Steps in inbound and outbound logistics
Sourcing and Procurement
Supplier selection
Inbound transportation
Receiving and Quality check
Material handling and storage
Outbound
Reverse logistics
Warehousing and storage
Order processing
Product picking and packaging
Outbound transportation
Customer service and troubleshooting
In what order do things move through the supply chain
Product moves through
Supplier
Manufacturer
Distributor
Retailer
Consumer
And information moves backwards from consumer to supplier
Money also moves backward
What are the differences between supply chains and logistics?
Logistics is the practical function of supply chain whilst supply chain is a strategic view of logistics, procurement and planning
2. Logistics is an internal process within a company that is sometimes outsourced to a 3rd party such as freight fwders whilst supply chains work with multiple external partners such as manufacturers, suppliers and delivery partners.
3. Logistics focuses on cost and time-efficent delivery of goods whilst supply chain focuses on an innovative approach and cost-cutting at every step of the process (in a sustainable manner.)
4. Logistics Includes inbound and outbound transportation, warehousing, fulfillment, customs clearance whilst supply chain focuses on procurement, supply planning, inventory mgmt, innovation, constant improvement, strategising and planning.
Logistics focus on customer satisfaction whilst supply chain focuses on competitive advantage
BOTH logistics and supply chain management the process of bring products to the market
Types of supply chains
- Reverse supply chains
- Information supply chains
- Srvce supply chains
- Circular supply chain
What is an information supply chain?
The information generated by each process every step of the way in a supply chain supports the supply chain’s
logistics networks and operations. This information is not only a part of the supply chain, but also a supply chain
of information.
An Information supply chains raw materials is data, that is processed into information such as knowledge, the
components are like Shipping bills of lading or delivery notes, approvals or product documents with the final
being reports. Logistical activity is required to move that information and then store it. In contrast to the physical
movement of products, information is moved or transmitted through information systems and electronic data
interchange (EDI). Information can be found in reports that need to be distributed in hardcopy, digital, and
electronic formats. Storage then takes place in databases, servers, and data warehouses
Learn that diagram bestie
Presentation 2 slide 13
What is a service supply chain?
Services like Manicures and Pedicures, accounting and legal services each have their own
supply chain. Services unlike products are typically intangible and require supply chain
processes that acquire products, knowledge, and develop talent (raw materials) that will
be used in the provision of services to customers (finished product). Logistics for services
depends on producing and supplying products like nail clippers, nail files emery boards
for aesthetechians, computers for accountants, information systems to ensure
confidentiality of electronic documents for legal services with data security to avoid
cyber attacks and information leaks.
What is reverse supply chain?
Downstream logistics refers to the forward movement of raw materials through multiple
steps of production, storage , and transportation of final products.
Upstream logistics refers to the reverse direction movement of products from the
customer back through one or more steps of the forward logistics process.
Reverse Supply Chains, therefore, refer to the backward flow of products from
downstream to upstream in a supply chain.
Why does this occur ?
This process may occur if an item is returned to the manufacturer due to damage, for
example, reverse logistics is the movement of products back to their point of origin or
another destination, such as a repair center or return if the wrong product or product is
not what was expected.
What is circular supply chain?
Circular Supply Chains are a development from the traditional linear product supply
chain.
They start with raw materials, convert them to products, and then back to the raw
materials from whence they started, examples such as Paper and glass. ( aka Recycling)
These types of supply chains emphasize reusing waste materials and returned or old
products some of the key building blocks to this are Sustainability, social, and economic
responsibility are integral to circular supply chains.
Logistics in supply chains considers the total system cost in planning and managing the
transportation and storage of products. Starting from the extraction point of the raw
materials back to the re-entry of these same raw materials after their initial product life
has expired, back into the beginning of a new supply chain in the next life cycle they will
experience. Even though this may seem to be a more expensive process. The reuse of the
raw material is still cheaper than extraction and production of virgin raw materials.
Elements to consider when designing a supply chain
- Demand planning
- Purchasing
- Sales and Operations Planning
- Operations / execution
- Distribution
*When evaluating the key components of Supply chain information flow :
* back and forth (upstream and downstream)
* manual (paper) and digital data movement
* Real time and passive data uploads
* Ensuring protocols and security in place for accessing data and
information
*Information is generated from data collected throughout the supply chain.
*Data integrity, timeliness, and accuracy are vital to this information.
