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Principles Of Logistics Management

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Logistics Management

Logistics Management

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