Introduction 2 Logistics

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Introduction 2 Logistics

  1. 1. Business EnglishLogistics & Transportation Engineering Seminar : Introduction to Logistics By Youssef Serroukh 25/10/2011 ~ 01/11/2011 Y.Serroukh – Anglais Commercial 1
  2. 2. Contents• Part 1 What is Logistics• Part 2 Activities in Logistics System Y.Serroukh – Anglais Commercial 2
  3. 3. What is LogisticsThere are various definitions of differentedition. But in general, there are mainlytwo types of definition in practice. Y.Serroukh – Anglais Commercial 3
  4. 4. 1.1 Definitions Notes1.There are various definitions of different edition. Y.Serroukh – Anglais Commercial 4
  5. 5. 2.In Business Terms, logistics means the physical movement of goods from the supplier point to the receive point. Based on practical need, integrated organically the variety of the basic functional activities including transportation, storage, loading and unloading, handling, package, distribution and information management, etc.3.The Council of Logistics Management has adopted this definition of logistics:Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers’ requirement.4.However, when it comes to modern logistics, most professionals in the business consider it one of the most competitive and exciting jobs, invisible as it is. Y.Serroukh – Anglais Commercial 5
  6. 6. 5.This implies that management must first understand what hose requirements are before a logistics strategy can be developed and implemented to meet them.6.In practice, logistics refers to the systematic management of the various activities required from the point of production to the customer.7.Getting the right amount of goods to the right place at the right time is critical, especially in an age when budgets are tight and customers demands are unpredictable.8.Logistics management has evolved over the last three decades from the narrowly defined distribution management to the integrated management and to the global supply chains.9.In order to succeed in today’s global marketplace, companies must be ever cognizant of these trends and develop a logistics management strategy that capitalizes on the best-of-breed technology solution available today, so that they can meet the demands of their customers today and be well prepared for the future. Y.Serroukh – Anglais Commercial 6
  7. 7. 1.2 The Importance of LogisticsSince the beginning of human civilization, there has beenthe “move” of the goods, so we should say, “logistics isanything but a newborn baby.” However, when it comesto modern logistics, most professionals in the businessconsider it one of the most competitive and exciting jobs,invisible as it is. “Logistics is a unique global pipeline thatoperates 24 hours a day, seven days a week and 52 weeksa year, planning and coordinating the transport anddelivery of products and service to customers the worldover.” Y.Serroukh – Anglais Commercial 7
  8. 8. 1.3 Development of Logistics ManagementLogistics management has evolved over the last three decadesfrom the narrowly defined distribution management to theintegrated management and to the global supply chains. Themission of logistics management is to plan and coordinate allactivities to achieve desired levels of delivered service andquality at he lowest possible cost. In order to succeed intoday’s global marketplace, companies must be evercognizant of these trends and develop a logistics managementstrategy that capitalizes on the best-of-breed technologysolution available today, so that they can meet the demandsof their customers today and be well prepared for the future. Y.Serroukh – Anglais Commercial 8
  9. 9. Exercices1. Make a list of all different areas of Logistics you can think of by completing the diagram below Y.Serroukh – Anglais Commercial 9
  10. 10. Exercices2. Five people give their definition of Logistics. Complete the sentences using the words from the box: Provide Storage Support Distribution Delivery Maintenance• Logistics means that you manage the procurement movement of goods and ________of the inventory.• It means the ________of the goods the customer needs at the right time, in the right place, and of the right quality.• My definition of logistics is this: it’s to plan, organize, and manage operations that ________services and goods.• Logistics – that’s purchasing, maintenance, ________and replacement of material and staff.• Logistics is the planning and ________of operations such as warehousing, inventory, transport, procurement, supply and ________ . Y.Serroukh – Anglais Commercial 10
  11. 11. Exercices3. Complete the following table * VERB NOUN 1 To provide 2 Storage 3 To support 4 Delivery 5 To distribute 6 Maintenance 7 To transport 8 Purchasing Y.Serroukh – Anglais Commercial 11
  12. 12. Activities in Logistics SystemA logistics system can be made up of manydifferent functional activities, some of whichare described briefly below. Y.Serroukh – Anglais Commercial 12
  13. 13. 2.1 Customer ServiceIn a broad sense, customer service is the output of the entire logisticssystem. It involves making sure that the right person receive the rightproduct with the right quantity at the right place at the right time inthe right condition at the right cost. At present, many logisticscompany may have a customer service department that handlecomplaints, special orders, damage claims, returns, billing problems,etc. Y.Serroukh – Anglais Commercial 13
  14. 14. 2.2 Demand ForecastingDemand forecasting estimate the need for precise amount of productand service that customers will require in the future. The logisticssystem can ensure the right products or services are available to meetthose requirements. It involves in forecasting how much should beordered from its suppliers, and how much of finished products shouldbe transported in each market. Y.Serroukh – Anglais Commercial 14
  15. 15. 2.3 TransportationTransportation refers to the physical movement of goods from onepoint to another point. It includes specific activities such as selectingthe transport mode, choosing the particular route, selecting the rightcarrier, complying with various local transportation regulations.Transportation is usually the most costly logistics activity.It may account for 40%-60% of a company’s total logistics cost. Y.Serroukh – Anglais Commercial 15
  16. 16. 2.4 WarehousingWarehousing is an integral part of every logistics system. It plays animportant role in providing a desired level of customer service at thelowest possible total cost. It refers to places where goods can be storedfor a particular period of time. Generally, the greater the time lagsbetween production and consumption, the larger the level ofwarehousing required. Y.Serroukh – Anglais Commercial 16
  17. 17. 2.5 Inventory ManagementInventory management deals with balancing the cost of maintainingadditional products on hand against the risk of not having those itemswhen the customer wants them. This task has become more complexas firms have gradually lowered inventory levels. Y.Serroukh – Anglais Commercial 17
  18. 18. 2.6 PackagingIndustrial packaging focuses on protecting the product while it is beingtransported and stored. It conveys important information to inform thecustomer and provide protection during storage and transport. In a marketing sense, the package acts as a form of promotion oradvertising. Its size, weight, color, and printed information attractcustomers and convey knowledge about the product. Y.Serroukh – Anglais Commercial 18
  19. 19. 2.7 ProcurementProcurement is the purchase of materials and services from outsideto support the firm’s operations from production to marketing,sales and logistics. It includes the selection of supply source location,timing of purchases, price determination, quality control and manyother facets. Y.Serroukh – Anglais Commercial 19
  20. 20. 2.8 Material HandlingMaterial handling is a broad sense concerning all short-distancemovements of raw materials, work in process, or finished goodswithin a factory or warehouse. As materials handling tends to addcosts rather than value to logistics systems, managers tends tominimize the number of handling whenever possible. Y.Serroukh – Anglais Commercial 20
  21. 21. 2.9 Information ManagementInformation links all areas of the logistics system together.Information processing is becoming increasingly automated,complex, and rapid. It is critical to the efficient functioning of system. Y.Serroukh – Anglais Commercial 21
  22. 22. 2.10 Other Logistics ActivitiesOther activities such as waste disposal, return goods handling, etc. arealso important. Logistics managers have to consider the social costsassociated with waste disposal. The handling of returned goods, oftenreferred to as reverse distribution, is an important part of the logisticsprocess. Y.Serroukh – Anglais Commercial 22
  23. 23. Components of logisticsmanagement : Management actions Outputs of Inputs into logistics logistics Planning Implementation Control Natural resources Marketing (land, facilities, Logistics management orientation and equipments) Suppliers Raw In-process Finished Customers (competitive materials inventory goods advantage) Time and Human resources Logistics Activities place utility •Customer Service •Plant and warehouse Efficient Financial resources •Demand forecasting site selection movement to •Distribution •Procurement customer communications •Packaging Information resources •Inventory control •Return goods handling Proprietary •Material handling •Salvage and scrap asset •Order Processing disposal •Parts and service •Traffic and support transportation •Warehousing and storage
  24. 24. Exercices1. Replace the underlined verbs with the words from the box that have the same meaning.Provide Train Organise Ensure Inform about Check• We supply software for the car industry.• I often advise clients on the most suitable transport method.• In my job, I have to make sure that passengers arrive on schedule.• My job is to supervise incoming goods.• I also plan the transport of goods.• I instruct staff. Y.Serroukh – Anglais Commercial 24
  25. 25. Exercices2. Put the words in the Right order by using the correct form of the verb.• an excellent/provide/delivery service/my company.• you/ how much/ handle/ cargo/ per year?• to other countries/ not ship/ we/ chemical products.• responsible for/ be/ the warehouse manager/ also/ vehicles and machinery.• to foreign companies/ car parts/ this vendor/ supply?• usually / arrange / for companies/ a freight forwarder/ documentation. Y.Serroukh – Anglais Commercial 25
  26. 26. Exercices3. Complete the crossword puzzle with words from this unit.Across4 Another word for freight5 What you store in the warehouse6 Work closely together with somebodyDown1 Another word for organise2 To give information about the price3 Another word for supervise5 Send goods Y.Serroukh – Anglais Commercial 26
  27. 27. Thank you for your attention Y.Serroukh – Anglais Commercial 27

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