Supply Leaders Academy

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

15.03.17 04:37 AM By Randall Mauldin
youngpros6DEFINITION: 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 Article Source: EzineArticles.com@@AMAZON_GEN_WIDGET@@.