Professional Documents
Culture Documents
1-1
Logistics Defined
Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from the point of origin to point of consumption for the purpose of conforming to customer requirements. Council of Logistics Management
Transportation
Warehousing
Transportation
Customers
Information flows
Factory
Transportation
1-5
1-5
1-6
The contemporary view: Distribution is a new frontier for demand generationa competitive weapon.
Both views are now important!
1-7
1-8
Transportation
Warehousing Order entry
3.34%
2.02 0.43
$26.52
18.06 4.58
Administration
Inventory carrying Total
0.41
1.72 7.65%
2.79
22.25 $67.71
Logistics cost are about 10% of sales w/o purchasing costs
1-9
Foreign sourcing
Profit G&A
Marketing Logistics
Profit G&A
Marketing Logistics Tariffs Overhead Materials
Increase
Increase
Gastos indirectos
Overhead Materials
Labor
Reduction
Labor
1-10
Physical distribution
Customers
Transportation Inventory maintenance Order processing Acquisition Protective packaging Warehousing Materials handling Information maintenance
Transportation Inventory maintenance Order processing Product scheduling Protective packaging Warehousing Materials handling Information maintenance
1-14
Key Activities/Processes
Primary - Setting customer service goals - Transportation - Inventory management - Location Secondary, or supporting - Warehousing - Materials handling - Acquisition (purchasing) - Protective packaging - Product scheduling - Order processing
1-12
Acquire
Convert
Product and information flow
Distribute
1-13
Study Framework
CONTROLLING
1-14
PLANNING
Customer service goals The product Logistics service Ord. proc. & info. sys.
ORGANIZING
Inventory Strategy Forecasting Inventory decisions Purchasing and supply scheduling decisions Storage fundamentals Storage decisions
Productionlogistics interface
Marketinglogistics interface
1-22
1-19
1-20