Overview of logistics functions and uses within supply chain

1. LOGISTICS
FOUNDATIONS
Prepared and Presented By: Aric Smoker

2. Understanding Order Fulfillment
■ There are many steps in order to fill orders to customers, this includes having
inventory, receiving payment, receiving payment and delivering the product.

3. ManagingThe Order
■ While managing the order you must think of it as a series of rights, such as the right
product, delivered to the right place, at the right time.

4. Why Logistics is Important
■ Logistics determine whether you and your business will be successful in the aspect of
getting the goods to your business and then to the customer.

5. Defining Logistics
■ Logistics is the part of supply chain management that plans, implements and controls
the forward and reverse flows and storage of goods and services on its way to the end
consumer.

6. Understanding Outbound Logistics
■ Outbound logistics is the part of logistics that is responsible for physically delivering
the finished good to the consumer or to a place where they can purchase it.

7. Understanding Inbound Logistics
■ Inbound logistics includes the acts of delivering parts, components, and subassemblies
to factories for final assembly.

8. The Growing Importance of Reverse
Logistics
■ Reverse logistics is becoming more important because of the changing marketplace,
changing consumer wants and needs, and changing government regulations.

9. Make or Buy?
■ Deciding whether to make or buy something is one of the most important business
decisions you could make, and can determine the definition and image of a company.

10. SelectingAmongTransportation Choices
■ When selecting a transportation method, you must consider the pros and cons of all
choices, and which one will work best for your particular situation.

11. StoringYour Products
■ Many businesses choose to store and distribute their products from warehouses,
either their own or leased from a third party.

12. DistributingYour Products
■ Distribution centers allow companies to buy in bulk and then split that order up into
smaller batches to be distributed to different facilities.

13. Managing Information Flows
■ Information systems and information sharing is needed for day to day and long term
logistic decisions within a company.

14. Controlling Inventory
■ All inventory is not the same, it is important to know how to manage all different types
of inventory in order to increase efficiency and keep up with demand.

15. Integrating Logistics IntoThe Supply
Chain
■ Logistics and the supply chain go hand in hand because of the way that logistics help
to fulfill orders within the supply chain.

16. ExplainingThe Bullwhip Effect
■ The consumer buys in bulk irregularly, this leads to all members of the supply chain to
increase inventory, causing an overstock of said product.

17. Impacting Company Performance
■ Logistics effect company performance since if there is not efficient way of shipping
and gathering goods, then a company cannot expect to perform consistently.

18. Obstacles to Coordination
■ Using incentives can often backfire if the certain aspects of the company are not
working towards the same goal.

19. Managing Returns
■ More online buying has added to the need for easy ways of returning products, and
has made companies more accepting of returned goods.

20. Shifting to Regional Supply Chains
■ Regional supply chains allows companies to make products more locally and closer to
the consumer, and cuts down on transportation costs.

21. Managing Customer Requirements
■ Customer needs and wants are constantly changing, the company who reacts the best
to these changes will ultimately enjoy the most success.

22. DifferentiatingYour Company
■ Good logistics can provide a competitive advantage for your company and allows you
to get a step up on the competition.