Planning, implementing, and controlling efficient and effective flow and storage of goods and services from point of origin to point of consumption to conform to customer requirements.
Managerial responsibility to design and administer a system to control the flow of material, work in process, and finished inventory to support business entity.
ACTIVITIES INVOLVED IN LOGISTICS:
* Customer Service
* DISTRIBUTION Communication
* Inventory Control
* Material Handling
* Order Processing
* Traffic & Transportation
* Warehousing & Storage
* Demand Forecasting
* Return Goods Handling
OBJECTIVES ACHIEVED THROUGH LOGISTICS MANAGEMENT:
* Rapid Response
This is concerned with a firm’s ability to satisfy customer service requirements in a timely manner.
* MINIMUM VARIANCE
Variance is an unexpected event that disrupts performance of the system.
* MINIMUM INVENTORY
To reduce and manage inventory to the lowest possible level while simultaneously achieving desired operation aim.
LOGISTICS VS SUPPLY CHAIN MANAGEMENT
* Logistics is typically considered as the sub-set of Supply Chain Management
* Supply Chain Management has ( 5 ) key functions:
Logistics is involved at various stages of supply chain; from supplier to plants, from plants to distribution centers, from distribution centers to stores, from stores to customers.
KEY LOGISTICS DECISIONS
1. How many plants and/or warehouses.
2. Where should the plants and/or warehouses be located
3. What merchandise volume each plant and/or warehouse have
4. Which plant should service which warehouse, and which warehouse should service which customers
FACTORS TO BE CONSIDERED FOR LOGISTICAL EXCELLENCE
* AVAILABILITY: This means having inventory to consistently meet needs of
Customer material or product requirement.
* OPERATIONAL PERFORMANCE:
Means time spent from order receipt to delivery. Measured in terms of how well the company can accommodate customers unusual requests.
Quality attributes of Logistics.
* Physical Supply
Management of flow of rawe materials, spare parts, machinery and tools from suppliers
* Physical Distribution
Management of finished goods from the factory to the customers
* Logistical Controls
Efficient co-ordination of physical supply and distribution sub-systems
PARTIES INVOLVED IN LOGISTICS
* Warehouse providers
* Freight forwarders
* Terminal Operators
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