2. Contents
we make
shipping big
stuff looks easy
Definition and function of
Logistics in an Organizationʼ
Business Process
Elements of Logistics
Management
Logistics Activities:
Transportation; Warehouse;
Distribution; Inventory
National Logistics Systemʼs Blue
Map
3. What is Logistics?
Logistics: The science of planning, organizing and
Logistics (business definition): defined as a business
planning framework for the management of material,
service, information, and capital flows. It includes the
increasingly complex information, communication,
and control systems required in today's business
environment.
Logistics: a term commonly used to refer to the
managing activities that provide goods or services.
extension of physical distribution management.
4. What is Logistics? cont....
Logistics is a term widely used to describe the
transport, storage, and handling of products as they
move from raw material sources, through to the
production system to their final point of sale or
consumption.
Logistics = supply + materials management +
distribution
A good material handling system will enhance
the speed to market in logistics
8. International Logistics
• The design and management of a system
that controls the forward and reverse flow
of materials, services, and information into,
through, and out of the international
corporation.
• The main purpose of the international
logistics system is to satisfy customers and
reduce the operation cost.
9. Logistics and Supply Chain
• Supply-chain management is the integration of business
processes from end users through original suppliers, that
provide products, services, and information that adds value for
customers.
• Supply-chain management connects a company's supply side
(suppliers) with its demand side (customers).
• It opens up supplier relationships for companies outside of
the buyerʼs domestic market.
• Logistics is an integral part of supply chain management,
where it manages the resources supplied by an organization to
its customers and intermediaries
14. Total Logistics Concept
The total logistics concept (TLC)
aims to treat the many different
elements that come under the
broad category of distribution and
logistics as one single integrated
system.
It is a recognition that the
interrelationships between
different elements need to be
considered within the context of
broader supply chain.
15. Key Performance
Objectives of Logistics
Speed -ʻSpeed of responseʼ- means the time between an
external or internal customer requesting a product or
service, and them getting it.
Cost -The cost structure of different organizations can
vary greatly. Second, and most importantly, the other
four performance objectives all contribute, internally, to
reducing cost. This has been one of the major
revelations within Logistics management over the last
twenty years
17. Logistics Strategy
Strategy is the direction and scope of an organization over the
longterm, which achieves advantage for the organization through
its configuration of resources within a challenging environment, to
meet the needs of markets and to fulfill stakeholder expectations.
What Is a Logistics Strategy?
When a company creates a logistics strategy it is defining the service
levels at which its logistics organization is at its most cost-effective.
Because supply chains are constantly changing and evolving, a
company may develop a number of logistics strategies for specific
product lines, specific countries or specific customers
18. Logistics Strategy
Strategy is the direction and scope of an organization over the
longterm, which achieves advantage for the organization through
its configuration of resources within a challenging environment, to
meet the needs of markets and to fulfill stakeholder expectations.
What Is a Logistics Strategy?
When a company creates a logistics strategy it is defining the service
levels at which its logistics organization is at its most cost-effective.
Because supply chains are constantly changing and evolving, a
company may develop a number of logistics strategies for specific
product lines, specific countries or specific customers
19. Logistics Strategy
Why Implement a Logistics Strategy?
The supply chain constantly changes and that will affect any
logistics organization. To adapt to the flexibility of the supply
chain, companies should develop and implement a formal
logistics strategy. This will allow a company to identify the impact
of imminent changes and make organizational or functional
changes to ensure service levels are not reduced.
Key areas to examine are markets, customers, operations,
performance and growth.
21. Logistical Value Proposition
• The term basic logistics service describes the level
of service a firm provides to all customers.
• Availability involves having inventory to consistently
meet customer materials or product requirements.
• Operational performance involve delivery speed,
consistency, flexibility, reliability and quality.
22. Logistical Value
Proposition
Cost Optimization:
• The concept of the total cost has been not applied to
logistical operations.
• Development of TLC, opened the door to examine how
functional costs interrelate and impact each other.
23. Logistical Value
Proposition
Logistics Value Generation:
• The key to achieving logistical leadership is to master
the art of matching operating competency and commitment
to key customer expectations and requirements.
• This customer commitment in an exacting cost framework
is the logistics value proposition.
• It is a unique commitment of a firm to an individual or
selected customer group
24. Logistical Value
Proposition
Logistics Value Generation:
• The key to achieving logistical leadership is to master
the art of matching operating competency and commitment
to key customer expectations and requirements.
• This customer commitment in an exacting cost framework
is the logistics value proposition.
• It is a unique commitment of a firm to an individual or
selected customer group