2. INTRODUCTION
Efficient logistics is a key factor in ensuring the success of an organization from
ensuring that the organization has all that it requires to produce results to ensuring
that customers are satisfied.
The following presentation has been prepared to give the reader an overview of
logistics management from the very meaning of logistics to the phases in logistics
management.
3. What is Logistics?
This is the management of the flow of goods, resources and information between
the point of origin and the destination (point of consumption).
Logistics is the process of planning and implementing the efficient transportation
and storage of goods from one point to another.
It ensures that all materials and personnel are available on time and in the right
place to ensure that a business objective is accomplished.
Logistics thus implies having the right type of product or service at the right place, at
the right time, for a right price and in the right condition.
Logistics can be looked at as a subset of supply chain management which ties into
project management by ensuring timely completion of a project
4. The aim of Logistics Management is to ensure supply
to the customer the:
🠶 Right product
🠶 Right cost
🠶 Right quantity
🠶 Right quality
🠶 Right place
🠶 Right time
5. Components (activities) of Logistics
1. Transportation
2. Supply.
3. Inventory planning and management.
4. Warehousing.
5. Packaging.
6. Order processing
6. Objectives of Logistics Management
1. T
o choose the most effective transportation routes
2. T
o identify the best delivery method
3. T
o seek continuous quality improvement
4. T
o minimize the cost of transportation
5. T
o facilitate quick response to customer requirements
6. T
o improve customer service
7. T
o minimize damage to goods
7. Major Functions of Logistics
The major functions in logistics are:
Transportation.
Warehousing.
Material handling
Inventory Management
Transportation management focuses on planning, optimizing and executing the use
of vehicles to move goods from one place to another.
Warehouse management includes functions like inventory planning and
management and order fulfillment.
8. 1. Transportation Management
Transportation management involves the movement of people, materials and
equipment from one place to another.
It involves:
Route planning
Route optimization
Communication
Cost optimization
Freight payment
Operations execution
Transportation order planning
Resource optimization
Organization of quotes Consolidating requests
Improving accountability Improving delivery capabilities
9. 2. Warehouse Management
Warehouse management involves the control and administration of warehouse
operations where equipment, vehicles and goods are kept.
Warehouse management:
Improves flexibility and responsiveness.
Eases activities like orders and shipments
Secures the expensive equipment
Labor management
Ensures that equipment are kept in check
10. 3. Inventory Management
This is the process of ordering, storing and using the inventory of the organization
with regard to the type and amount of material in a storage facility.
4. Material Handling
This deals with the loading, offloading and the movement of materials at the point of
origin, in transit and at the point of consumption.
11. Phases of Logistics Management
Inbound Logistics
This is the movement of materials from the point of origin to the point of
production.
Outbound logistics
This is the movement of finished goods from the point of production to the point of
consumption.
Reverse Logistics
This is the movement of damaged goods from customers back to the point of
production
12. The Logistician
This is an expert in logistics. The logistician coordinated the organization’s supply
chain.
Roles of a logistician.
1. Find the cheapest and fastest way to transport goods
2. Make suggestions to customers regarding improvements
3. Keep informed on the latest advancements in logistics technology
4.Strive to determine what customers needs are and ensure that they must meet
them
5. Assess logistics functions and work to improve them
