Tuesday, February 1, 2011

introduction to logistics

sometimes when we said about log(logistics)...people always wandering and said logistics is all about transportation, being at the port and whatsoever. its true but, log isn't not only talk about that...
its more than we know.....logistic up to many branches....
involving in logistics needed the practioner or logistician to know every thing, most of, or anything regard to the business...its may include, operation, management, account, logistics basis(of coz) and many more....
here to reveal the labyrinth, i will show u some introduction to logistics and its branch....

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 he right time, and in the desired condition and quantity in relation to customers order

Main logistics activities and decisions:
Ÿ  cooperate with marketing to set customer service levels,
Ÿ  facility location decision transportation activities (eg. transportation mode selection, vehicle scheduling, carrier routing  ),inventory management (inventory short -term forecasting, planning and control,
Ÿ  cooperate with production to calculate EOQ, sequence and time production),
Ÿ  information collection and flows and order processing,
Ÿ  warehousing and materials handling,
Ÿ  packaging and packing,

According to the Council of Supply Chain Management Professionals (former Council of Logistics Management): Supply Chain Management is the systemic, strategic coordination of the traditional business functions and the tactics across business functions within a particular company and across businesses within the supply chain for the purposes of improving the long- term performance of the individual companies and a supply chain as a whole” (CSCMP 2005).

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:
Ÿ  configuration of product and network, which covers the decisions concerning the main rules of cooperation,
Ÿ  formation of the production network, mainly the choice of production facility and warehousing locations as well as their capabilities,
Ÿ  product design with involvement the research and development abilities of suppliers,
Ÿ  process optimization in order to reduce cycle times and inventory level in the cost-effective way.

The traditional role and place of small firms within integrated supply chains was mostly limited).

Ÿ  delivering raw - materials, parts or modules for the final goods producers,
Ÿ  delivering customer goods to wholesalers or selling small quantities of this goods to the final customers,
Ÿ  providing transportation and forwarding services,
Ÿ  manufacturing goods and providing other services for market niches which are considered as not enough profitable for big companies (also as a subcontractor),
Ÿ  trading under well known brand name of large distribution networks (franchising).

Table: The directions of SME’s changes as a links in supplay chains and networks
Scope of changes in SME’s
Hierarchical supply chains
Polycentric supply network
Competences and skills
Narrow in particular technological or functional areas
Wide based on process orientation, ability to performance evaluation and outsourcing
Low or middle
Middle or high
Role of small retailers
Low and passive
Increasing and active
Key intermediary
Wholesaler or large retail network
Brokers or third party logistics providers
Dominant logistics
services model
Self- or combined- service model

Public logistics service providers
Small truck companies
Large number of independent firms
Subcontractors dependent on market leaders
Source: Author’s own discription

Figure: General Cost-Revenue Trade-offs at Varying Levels of Logistics Customer Service

Source: Ballu, 1999.


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