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1. LOGISTICAL
PERFORMANCE CYCLE
By Manisha Ajara

2. INTRODUCTION
 The performance cycle represents elements of work necessary to complete
various logistics related activities.
 In the performance cycle , the supplier, the firm and its customers are linked
together by communication and transportation.
 Location that performance cycle links together are called nodes.
 Basically, there are three logistical performance cycles.
• Procurement Performance Cycle
• Manufacturing Support Performance Cycle
• Physical Distribution Performance

3. PROCUREMENT
PERFORMANCE CYCLE
 Procurement performance cycle involves all the activities associated
with procurement of raw materials from vendor.
 Operations performed under procurement is called inbound logistics.
 The basic aim of the procurement performance cycle is to perform
inbound logistics at lower cost

4. Sourcing
Issue
Storage
Receiving
Order Placement
Expediting
Transportation
Vendor
(for Processing)

5. MANUFACTURING SUPPORT
PERFORMANCE CYCLE
 Manufacturing support performance cycle provides production logistics.
 This cycle can be viewed as being positioned between the physical
distribution and procurement performance cycle.
 It is concerned with managing work-in-progress inventory as it flows
between stages of manufacturing.
 The major actives are
• Making timely availability of materials, components, etc
• Managing work-in-progress inventory
• Transferring finished goods from manufacturing plant to factory warehouse.

6. Inventories
from stores
Work in
progress
Finished goods
Factory
warehouse
MANUFACTURING SUPPORT
PERFORMANCE CYCLE

7. PHYSICAL DISTRIBUTION PERFORMANCE
CYCLE/OUTBOUND LOGISTICS
 Once the product is manufactured it has to made available at
customers place.
 The operations performed under physical distribution performance
cycle is also called as outbound logistics
 The objective of physical distribution performance cycle is to make
goods available where they are needed and when they are needed

8. PHYSICAL DISTRIBUTION PERFORMANCE
CYCLE/OUTBOUND LOGISTICS
Customer
Order
Customer
Delivery
Order
Transmission
Order
Processing
Order
Transportation
Order
Selection