Logistics Management, Traffic, Distribution, and Transportation by John Ourian

DEFINITION:

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.

LOGISTICS MANAGEMENT:

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

* Procurement

* Packaging

* 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:

Procure

Make

Move

Store

Service

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.

LOGISTIC MANAGEMENT

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.
*

SERVICE RELIABILITY:

Quality attributes of Logistics.

LOGISTICAL SUB-SYSTEMS

* 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

* Shippers

* Suppliers

* Carriers

* Warehouse providers

* Freight forwarders

* Terminal Operators

* Government

* Customers

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