M1S2 Flashcards
Concept of supply chain (Logistic pipeline approach)
- Supplier
- Transport Operators
- Manufacturer
- 3rd party distributor
- retailers
- customers
this refer to the idea of the development of a logistic pipeline approach for products to flow through the supply chain to the end user.
Concept of supply chain
is an entire system of producing and delivering a product or service, from the very beginning stage of sourcing the the raw materials to the final delivery of the product or service to end-users.
Supply chain
Elements of Logistics and distribution: (5)
- Storage, warehousing and material handling
- Transport
- inventory
- information and control
- packaging and unitization
Storage, Warehousing, and material handling (3)
- Location of warehouses
- number and size of distribution depots
- type of operation
Transport (4)
- mode of transport
- type of delivery operation
- load planning
- route schedule
Inventory (3)
- What to stock
- Where to stock
- How much to stock
Information and Control (3)
- Design of system
- Control Procedure
- forecasting
Packaging and unitization (3)
- Unit load
- Protective Packaging
- handling system
Importance of logistics and distribution (3)
- Importance in the economy
- Importance of key components
- importance in industry
is an important activity making intensive use of human and material resources that affect the economy.
Logistics
Importance of Logistics and Distribution:
Logistics is an important activity making extensive use of the human and material resources that affect a national economy. The study by Capgenmini consulting (2012) found that total logistics expenditure as a percentages of sales revenues was similar in three major trading regions of North America, Europe and Asia-Pacific.
Importance of the Economy
“______________” was the most Important element, followed by carrying cost, storage warehousing, customer service/order entry and administration.
Transport
Importance of Logistics and Distribution:
Transport was the most important element, followed by carrying cost, storage/warehousing, customer service/order entry and administration.
The transport cost element of distribution was the major constituent part, often due to high fuel costs
Importance of Key components
Importance of Logistics and Distribution:
- When looking at industry and company level it is essential to be aware that the above costs are average figures taken across a number of companies.
-Channels can be short (ie very direct) or long (ie have many intermediate stocking points). Supply chains may be operated by different players: manufacturers, retailers, specialist third party distribution companies, or indeed by a mixture of these.
-The relative importance of logistics is measured in relationship to the overall value of the particular products which has implications for comparing relative importance between different companies.
-Small companies tend to have proportionately higher
logistics costs than large companies (about 10 per
cent of the cost of sales compared to about 5 per
cent). This is principally because large companies
can benefit from economies of scale.
-Companies with high product values tend to have
proportionately lower logistics costs than those with
low product values. Principally because large
companies can benefit from economies of scales
Importance in industry
