Logistics L1 Flashcards
what is logistic?
a system
network of related activities
movement of materials in the supply chain (raw materials => product => customers)
4 ways to analyse logistics systems
materials management vs physical distribution
cost center
nodes vs links
channels
factors affecting price of logistics systems
competition in the market
the spatial relationship of nodes
product characteristics
Subdivisions of logistics
- Business logistics
- Military logistics
- Event logistics
- Service logistics
- Business logistics
Plans, implements and controls the flow and storage of goods, service and related information from point of use or consumption => meet customer requirements - Military logistics
Support for the operational capability of the military forces (deployed or in garrison) and their equipment => ensure readiness, reliability and efficiency - Event logistics
Activities, facilities and personnel required to organize, schedule & deploy the resources for an event to take place and to withdraw after the event - Service logistics
Scheduling and management of the facilities and materials => support and sustain a service operation or business
5 utilities that add value to Logistics
Form Time Place Quantity Possession
Form utility
Creating the good and service or putting it in the proper form for the customer to use
(from raw materials to finished goods)
Time utility
Place utility
The value added by having an item when it is needed
Means having the item or service available where it is needed
Possession utility
The value added to a product or service because the customer is able to take actual possession (by credit arrangements, loans)
Logistics activities
Customer service Demand forecasting Distribution communications Inventory control Material handling Order processing Parts and service support Procurement Warehousing and storage ...
Marketing / Logistics Management Concept
Integrated Marketing effort
4P
Customer satisfaction
•Suppliers
•Intermediate customers
•Final customers
Company Finances: profit
•Maximize long-term profitability
•Lowest total costs given an acceptable level of customer service
1.
Input info of Logistics
Natural resources
Human resources
Financial resources
Information resources
- Management actions (Planning, implementation, control)
Logistics management (suppliers. raw material, in-process inventory, finished goods, customers)
Logistics activities
- Output of Logistics
Competitive advantage
Efficient movement to customer
Time and place utility
Proprietary asset
customer service
supports customer satisfaction
output of the logistics system
The key trade off of customer service: cost of lost sales
Dissatisfied customer tells to average of nine other
potential (lost) customers
demand forecasting
mkt forcasts
manufacturing forecasts
marketing forecasts : customer demand based on promotions, pricing, competition and etc.
manufacturing forecasts : production requirements based on marketing sales demand forecasts and current inventory levels.
how much should be ordered from its suppliers and how much of finished product should be transported
or held in each market
Inventory management
trading off the level of inventory held to achieve high customer service levels with the cost of holding inventory, including capital tied up in inventory, variable storage costs and obsolescence
Materials handling
encompasses virtually all aspects of movements of raw materials, work in process, or finished goods within a plant or warehouse.
A primary objective of materials management
is to eliminate handling wherever possible min. travel distance, bottlenecks, inventory
levels and loss
Order-processing
entails the systems getting orders from customers, checking on the status of orders communicating orders to customers, filling the
orders, making orders available to the customer.
Advanced order-processing methods (EDI-electronic
data interchange, EFT-electronic funds transfer, barcoding)
PACKAGING
For protection and storage and transportation
Important to be designed for the warehouse
configuration and materials handling equipment
PARTS AND SERVICE SUPPORT
Logistics is responsible for providing after-sale service support.
This may include:
• delivery of repair parts to dealers,
• stocking adequate spares,
• responding quickly to demand for repairs…
PLANT AND WAREHOUSE SITE SELECTION
Determining the location of the company’s plants
and warehouses is a strategic decision, affects the costs of transporting raw materials inbound and finished goods outbound, but also
customer service levels and speed of response.
PROCUREMENT
the purchase of materials and service from outside organizations to support the firm’s operations from production to marketing, sales, and logistics.
Supplier selection, negotiation of price, supplier
quality assessment…
REVERSE LOGISTICS
Reverse flow of goods, services and related information because of recycling, reusing and disposal activities.
Returns may take place because of a problem with the
performance of the item or simply because of the customer changed his or her mind.
Return goods handling is complex and costly.
The cost of moving a product backward nearly as much as nine times as high as moving the same product forward
TRAFFIC AND TRANSPORTATION
provide for the movement of materials and goods from point of origin to point of consumption and (disposal as well)
Selection of mode, routing the shipment, assuring of
compliance with regulations in the region of the country where shipment is occurring, selection of the carrier…
Largest logistics cost
WAREHOUSING AND STORAGE
Warehousing supports time and place utility by
allowing an item to be produced and helps for later
consumption.
Warehouse: layout, design, ownership, automation…
Cost Trade-offs Required in Marketing and Logistics
biểu đồ
mkt : 4p
Logistics
future challenges in Logistics
Strategic planning participation Total quality management (TQM) Just-in-time (JIT) Quick response (QR) Efficient consumer response (ECR) Logistics as a competitive weapon Accounting for logistics cost Logistics as a boundary-spanning activity Global logistics Increasing skill requirements Logistics information systems Outsourcing, partnering and strategic alliances Green marketing
- Business logistics
Plans, implements and controls the flow and storage of goods, service and related information from point of use or consumption => meet customer requirements
- Military logistics
Support for the operational capability of the military forces and their equipment => ensure readiness, reliability and efficiency
- Event logistics
Activities, facilities and personnel required to organize, schedule & deploy the resources for an event to take place and to withdraw after the event
- Service logistics
Scheduling and management of the facilities and materials => support and sustain a service operation or business
