Principles Of Logistics Management


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Principles Of Logistics Management

  1. 1. Principles of Logistics Management<br />Diploma in Logistics Management<br />
  2. 2. Principles of Logistics Management<br />Chapter 1<br />The Role of Logistics in the <br /> Economy and Organization<br />
  3. 3. Why study Business Logistics?<br />Wide career prospect(前景)<br />Manufacturing & trading firms<br />Service firms e.g. 3PL(第三方物流), freight forwards<br />Learning institutions(制度)<br />Government agencies<br />Other service institutions(机构) e.g. restaurants, hospitals, etc<br />
  4. 4. Logistics Management<br />The process of planning, implementing(执行)and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption(消耗) for the purpose of conforming to customer requirements.<br />Council(委员会) of Logistics Management <br />a leading organization for logistics professionals<br />
  5. 5. Logistics Managementmany names including:<br />Business logistics<br />Channel management<br />Distribution<br />Industrial logistics<br />Logistical management<br />Materials management<br />Physical distribution<br />Quick-response systems<br />Supply chain management<br />Supply management<br />
  6. 6. Components of Logistics Management构成因素<br />
  7. 7. Systems Approach/Integration<br />Logistics is, in itself, a system<br />It is a Network of activities with the purpose of managing the orderly flow of materials and personnel within the logistics channel.<br />
  8. 8. The system approach<br />All functions or activities need to be understood in terms of how they affect, and are affected by, other activities.<br />The sum, or outcome of a series of activities, is greater than its individual parts.<br />Eg. High inventory level good or bad?<br />-Bad: warehouse cost, obsolete, cash flow, insurance, currency fluctuation(货币波动)<br />-Good: support demand<br />
  9. 9. Logistics role in the Economy<br />Logistics is an important component of GDP<br />Adds value by creating TIME and Place Utility(value)<br />
  10. 10. Logistics role in the Organization<br />Supports Marketing<br />“Marketing management philosophy(哲学) holds that achieving organizational goals depends on determing the needs and wants of target markets and delivering the desired (渴望的)satisfactions more effectively(有效的,实际上的) and efficiently than competitors.”<br />
  11. 11. Marketing/Logistics Management Concept<br />CustomerSatisfaction<br />1.Suppliers<br />2.Intermediate customers<br />3.Final customers<br />Integrated Effort<br />1.Product<br />2.Price<br />3.Promotion<br />4.Place(distribution)<br />Company Profit<br />1.Maximize long-term profitability<br />2.Lowest total costs given an acceptable level of customer service<br />
  12. 12. 4 P’s of the Marketing Mix<br />Products- the set of utilities or characteristics a customer receives as a result of a purchase<br /> (quality, features, customer service, warranty)<br />Price- the amount of money a customer pay for a product or service<br /> (discount, rebates, customers)<br />Promotion- a product or service encompasses both personal selling and advertising<br />Place- component of the marketing mix support the levels of customer service provided by the organization<br />
  13. 13. Cost Trade-offs Required in Marketing and Logistics<br />
  14. 14. Role of logistics in the Organization<br />Logistics Types of Utility<br />Form utility<br />Manufacture – Production or Operations process<br />The value of making materials available in a completed state<br />— Possession(所有/持有) utility<br />Value added to a product allow the customer take ownership<br />
  15. 15. Role of Logistics in the Organization<br />Logistics Types of Utility<br /> Time utility<br /> value created by making product or service availability when it is needed<br />Place utility<br /> value created or added to product or service availability where it is needed<br />
  16. 16. Role of Logistics in the Organization<br />One way of viewing the Major Costs of Doing Business<br />Profit $0.04<br />Logistics Costs $0.21 = Time& Place utility<br />Marketing Costs $0.27 = Possession utility<br />Manufacturing Costs $0.48 = Form utility<br />
  17. 17. Role of Logistics in the Organization<br />Profit Leverage provided by Logistics Cost Reduction<br />If net profit on the sales dollar is 2% then<br />A Savings of is Equivalent to a Sales increase<br />$0.02 $1.00<br />$2.00 $100.00<br />$200.00 $10,000.00<br />$2,000.00 $100,000.00<br />$20,000.00 $1,000,000.00<br />
  18. 18. Logistics role in the Organization<br />Logistics is a Proprietary(私有) Asset(资产)<br />It is similar to a tangible(明确的) asset on a firm’s books<br />It cannot be readily(欣然地) duplicated(复制出) by the firm’s competitors(竞争者)<br />If a company can provide its customers with products quickly and at low cost, it can gain market share advantages over competitors<br />
  19. 19. Logistics allows efficient movement to the customers<br />7 Rights of Logistics <br />Move the Right Materials/Products<br />In the Right Quantity<br />In the Right Condition<br />At the Right Time<br />To the Right Place<br />At the Right Cost<br />To the Right Customers, Associates, Suppliers and Stockholders.<br />
  20. 20. The Logistics Evolution<br />Fragmentation1960<br />Evolving Integration 1980<br />Total Integration2000<br />
  21. 21. Factors Impacting the Development of Logistics<br />Advances in Computer Technology<br />Quantitative(数量上的) techniques<br />Development of the systems approach<br />Total cost analysis concept<br />Recognition(酬劳/认出) of logistics role<br />Erosion(腐蚀) of firm’s profits<br />Profit leverage<br />Economic condition(状况,地位)<br />
  22. 22. Key Logistics Activities<br />Customer Service<br />Demand forecasting planning<br />Inventory management<br />Logistics Communications<br />Material handling<br />Order processing<br />Packaging<br /><ul><li>Parts & Service Support
  23. 23. Plant & warehouse site selection
  24. 24. Procurement(获得)
  25. 25. Return goods handling
  26. 26. Reverse logistics
  27. 27. Traffic & transportation
  28. 28. Warehousing & storage</li></li></ul><li>Key Logistics Activities<br />Customer Service<br />-Customer oriented(导向的) philosophy(哲学、人生观)<br />-Optimum(最适宜的,最有利的) cost-service mix<br />-Output of logistics system<br />-Customer satisfaction<br />