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

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Principles Of Logistics Management