logistic management supply chain

1. M.Kasi Viswanathan
3rd BBA – C
18UD28
Logistic management

2. Logistics (according to CLM) is the process of planning,
implementing and controlling the efficient, cost-effective
flow and storage of raw materials, in- process inventory,
finished goods and related information from point of
origin to point of consumption for the purpose of
conforming to customer requirements
The mission of logistics is to get the right goods or services
to the right place, at the right time, and in the desired
condition and quantity in relation to customers order

3.  Logistics management is that party of supply chain
management that plans implements and controls
efficient and effective forward and reverse flow and
storage of goods service and related information
between the point of origin and the point of
consumption in order to meet customer requirements

5. • Corporate with marketing to set customer service levels
• Facility locations decisions
• Transportation activities
• Inventory management
• Information collection in flows and order processing
where housing and materials handling
• Packaging and packing

7.  Inventory carring costs (space costs,
capital costs, inventory risk and services
costs)
 Procurement costs (acquisition costs,
transportation costs, manufacturing and
handling costs)
 Out – of – stock costs (lost sales and back
order costs)

8.  In broader sense „SC is any combination of processes,
activities, relationships and pathways along which
products, services, information and financial
transactions move in and between enterprises”
 In narrow sense SC is restricted to materials and
information flows from suppliers, through
manufactures and distribution centers to retailers and
final customers.

9.  SCM encompasses the planning and management of
all activities involved in sourcing and procurement,
conversion, and all logistics management activities
(including coordination and collaboration with
channel partners).
 In essence SCM integrates supply chain and demand
management within and across companies

10.  SCM is the integration of key business
processes from end user through original
supplier that provides products, services and
information that add value for customers and
other stakeholders.
 GSCMF vs. SCOR model

12. Customer Relationship Management (key)
Demand Management
Order Fulfillement
Manufacturing Flow Management
Supplier Relationship Management (key)
Product Development
Commercialization
Returun Management

13. Based on the product – relationship matrix Cooper and Slagmulder
(1999, p.10) distinguished four key decisions and activities areas in
the integrated supply chains, such as:
- configuration of product and network, which covers the
decisions concerning the main rules of cooperation,
- formation of the production network, mainly the choice of
production facility and warehousing locations as well as their
capabilities,
- product design with involvement the research and development
abilities of suppliers,
- process optimization in order to reduce cycle times and inventory
level in the cost-effective way.

15. The traditional role and place of small firms within integrated
supply chains was mostly limited):
- delivering raw- materials, parts or modules for the final
goods producers,
- delivering customer goods to wholesalers or selling small
quantities of this goods to the final customers,
- providing transportation and forwarding services,
- manufacturing goods and providing other services for
market niches which are considered as not enough profitable
for big companies (also as a subcontractor),
- trading under well known brand name of large distribution
networks (franchising)

16.  Demand and ordering cost are constant
 Maximum inventory is equal to order quantity,
new order is delivered when the inventory is zero
 Lead time is fixed
 No discount is avaliable for bigger orders
 Replenishment is delivered at once
 Lack of inflation

17. A.Weber, Polander, Thunen classical theories
 Labour cost, land cost, transportation cost
 Aviability and cost of materials, energy,
water
 Socio- economic factors (taxes, political
stability, import and export restrictions,
enviromental regulations, quality of life,
etc.)

18.  Heuristic approach (e.g. factor rating
by weights reflecting the importance
of each factor)
 Simulation models
 Cost- benefit analisis
 Center of gravity technique

19. Technika „Centrum Grawitacji”
X
 c (x,y)
0 Y
S3(x3’; y3’)
S1(x1’; y1’)
Z2(x2 ; y2)
S2(x2’; y2’)
Z1(x1 ; y1)

21.  Transportation rate is a linear function of
transported volume (units, tons, etc.) and
the traveling distance,
 It doese’t consider real traveling distance
which is depended on the roads
availability