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Logistics AND Supply Chain Managemen T

The document discusses logistics and supply chain management. It defines logistics as the movement of products and services to a designated location at an agreed time, cost and condition. Key aspects of logistics discussed include material sourcing, transportation, order fulfillment, warehousing, demand forecasting, inventory management and supply chain management. The document also outlines strategies for effective logistics such as coordinating functions, integrating the supply chain, substituting inventory info, reducing partners and pooling risks.

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Lara Camille Celestial
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33 views24 pages

Logistics AND Supply Chain Managemen T

The document discusses logistics and supply chain management. It defines logistics as the movement of products and services to a designated location at an agreed time, cost and condition. Key aspects of logistics discussed include material sourcing, transportation, order fulfillment, warehousing, demand forecasting, inventory management and supply chain management. The document also outlines strategies for effective logistics such as coordinating functions, integrating the supply chain, substituting inventory info, reducing partners and pooling risks.

Uploaded by

Lara Camille Celestial
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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LOGISTICS

AND
SUPPLY CHAIN
MANAGEMEN
T
LOGISTICS

• THE WORD LOGISTICS COMES FROM THE LATE 19 TH CENTURY FROM THE
FRENCH WORD “LOGISTIQUE”
• FIRST APPEARED IN THE BOOK “ART OF WAR” BY BARON HENRI.
• THE TERM LOGISTICS HAS ITS ORIGIN IN THE MILITARY.
• IN THE INDUSTRY FIELD, THEY BORROWED THE TERM LOGISTICS AND HAVE
APPLIED TO THE DISCIPLINE KNOWN AS “BUSINESS LOGISTICS”

• LOGISTICS IS A GREEK ORIGIN TO THE WORD “ΛΌΓΟΣ” (LOGOSH) – REASON


• “ΛΟΓΙΣΤΙΚΌΣ”(LOYISTIKOSH)- ACCOUNTANT OR RESPONSIBLE FOR COUNTING
LOGISTICS

• REFERS TO THE MOVEMENT OF PRODUCTS AND SERVICES TO A DESIGNATED


LOCATION AT AN AGREED TIME, COST AND CONDITION.
• ANCIENT ROMAN AND GREEK WARS ARE THE BASIS OF TODAY’S LOGISTICS SYSTEM.
• DURING THE MIDDLE AGES ELABORATE SUPPLY SYSTEMS, ROADS AND WAREHOUSES
 WERE USED. FORTS AND CASTLES BECAME STORAGE DEPOTS SUPPORTED BY THE
ECONOMY
• DURING INDUSTRIAL REVOLUTION, LOGISTICS ADVANCED GREATLY WITH THE
ADDITION OF RAILWAYS AND SHIPS.
• USED DURING WORLD WAR I AND WORD WAR II
• AFTER WORLD WAR, LOGISTICS MOVED FROM WARFARE TO BUSINESS
BUSINESS LOGISTICS

• REFERS TO THE ENTIRE SET OF


PROCESS INVOLVED IN
MOVING GOODS, WHETHER
FROM A SUPPLIER TO A
BUSINESS OR FROM A BUSINESS
TO A CUSTOMER.
• A LOGISTICS MANAGEMENT SYSTEM
UNDERPINS THAT EFFORT AND INCLUDES
INBOUND AND OUTBOUND TRANSPORTATION
MANAGEMENT, WAREHOUSE MANAGEMENT,
 FLEET MANAGEMENT, ORDER PROCESSING, 
INVENTORY CONTROL, SUPPLY AND DEMAND
FORECASTING, AND MANAGING THIRD-PARTY
LOGISTICS (3PL) SERVICE PROVIDERS.
PILLARS OF EFFECTIVE LOGISTICS

• MATERIAL SOURCING- ABOUT FINDING THE


BALANCE BETWEEN THE QUALITY OF RAW
MATERIALS AND THE AFFORDABILITY

• TRANSPORTATION- AT THE CORE OF LOGISTICS IS


THE ACT OF PHYSICALLY TRANSPORTING GOODS
FROM POINT A TO POINT B
• ORDER FULFILLMENT-  FULFILLING A
SALES ORDER TO THE CUSTOMER'S
SPECIFICATIONS. THAT IS, DELIVERING GOODS AS
PROMISED AT THE TIME OF SALE. 
• WAREHOUSING- PROCESS OF STORING GOODS WHICH ARE TO BE
DISTRIBUTED LATER. A WAREHOUSE IS DEFINED AS ANY PLACE
WHICH IS USED IN THE ACCUMULATION OF GOODS.

• DEMAND FORECASTING- PROCESS IN WHICH HISTORICAL SALES


DATA IS USED TO DEVELOP AN ESTIMATE OF AN EXPECTED
FORECAST OF CUSTOMER DEMAND .TO BUSINESSES, DEMAND
FORECASTING PROVIDES AN ESTIMATE OF THE AMOUNT OF
GOODS AND SERVICES THAT ITS CUSTOMERS WILL PURCHASE IN
THE FORESEEABLE FUTURE

• INVENTORY MANAGEMENT- REFERS TO THE PROCESS OF


ORDERING, STORING, AND USING A COMPANY’S INVENTORY.
• SUPPLY CHAIN
MANAGEMENT-
MANAGEMENT OF THE
FLOW OF GOODS AND
SERVICES AND
INCLUDES ALL
PROCESSES THAT
TRANSFORM RAW
MATERIALS INTO FINAL
PRODUCTS.
LOGISTICS COMPONENTS

• INTAKE FROM SUPPLIERS AND MATERIAL HANDLING;


• LABELING, PACKAGING INTO SMALLER UNITS, ORGANIZATION
AND WAREHOUSING;
• INVENTORY MANAGEMENT FOR PRODUCTION OR DISTRIBUTION;
• DEMAND PLANNING
• ORDER FULFILLMENT
• TRANSPORT.
LOGISTICS MANAGEMENT
BASED ON ARTICLE DATED JAN.19,2018

• IS THE PROCESS OF STRATEGICALLY • FOCUSES ON THE


MANAGING THE PROCUREMENT,
MANAGEMENT OF DAILY
MOVEMENT AND STORAGE OF
MATERIALS, PARTS AND FINISHED OPERATIONS CONCERNING
INVENTORY (AND THE RELATED THE FINAL PRODUCT OF THE
INFORMATION FLOWS) THROUGH THE ORGANIZATION.
ORGANIZATION AND ITS MARKETING
CHANNELS IN SUCH AS WAY THAT • AIM IS TO ALLOCATE THE
CURRENT AND FUTURE PROFITABILITY RIGHT AMOUNT OF A
ARE MAXIMIZED THROUGH THE COST- RESOURCE AT THE RIGHT
EFFECTIVE FULFILLMENT OF ORDERS.
TIME.
PLANS

IMPLEMENTS

CONTROLS
DIFFERENCE BETWEEN SUPPLY CHAIN AND LOGISTICS

• SUPPLY CHAIN- • LOGISTICS-


TRANSFORMING A MOVEMENT OF
RAW MATERIAL INTO MATERIALS IN WHOLE
PRODUCTS AND SUPPLY CHAIN.
GETTING IT TO
CUSTOMERS.
7 R’S OF LOGISTICS
• RIGHT PRODUCT

• RIGHT QUANTITY

• RIGHT CONDITION

• RIGHT PLACE

• RIGHT TIME

• RIGHT CUSTOMER

• RIGHT PRICES
LOGISTICS FUNCTIONS
3 AND 4 PL
PLLOGISTICS
LOGISTICS

TRANSPORT

REVERSE
LOGISTICS

WAREHOUSE
LOGISTICS VALUE PROPOSITION

SERVICE COST

ACHIEVE CUSTOMER SATISFACTION AT THE LOWEST TOTAL


COST
LOGISTICS GOALS AND STRATEGIES

• INCREASED EFFICIENCY
• RAPID RESPONSE
• FEWER UNEXPECTED EVENTS
• MINIMUM INVENTORY
• REDUCED TRANSPORTATION AND LOGISTICS
COST
• QUALITY IMPROVEMENT
STRATEGIES

• COORDINATING FUNCTIONS
• INTEGRATING SUPPLY
CHAIN
• SUBSTITUTING INVENTORY
INFO
• REDUCING NUMBER OF
PARTNERS
• POOLING RISK
COORDINATING FUNCTIONS
• ORDERLY ARRANGEMENT OF INDIVIDUAL AND
GROUP EFFORTS TO PROVIDE UNITY OF ACTION IN
THE PURSUIT OF A COMMON GOAL.

LOCATE IN THE RIGHT COUNTRIES


DEVELOP AN EFFECTIVE EXPORT-IMPORT STRATEGY
SELECT WAREHOUSE LOCATIONS
SELECT MODE OF TRANSPORTATION AND CARRIERS
SELECT THE NUMBER OF PARTNERS
DEVELOP STATE OF THE ART
INTEGRATING SUPPLY CHAIN
• A PROCESS WHERE ALL THE PARTIES INVOLVED
WITH THE FULFILLMENT OF A PRODUCT ARE
INTEGRATED INTO A SINGLE SYSTEM

THE FOUR ELEMENTS ARE: INTEGRATION,


OPERATIONS, PURCHASING AND DISTRIBUTION
SUBSTITUTING INVENTORY
INFO
• IMPROVE COMMUNICATIONS
• COLLABORATE WITH SUPPLIERS
• TRACK INVENTORY PRECISELY
• KEEP INVENTORY IN TRANSIT
• USE POSTPONEMENT CENTERS
• MIX SHIPMENTS TO MATCH NEEDS
• DON’T WAIT IN LINE AT CUSTOMS
REDUCING NUMBER OF PARTNERS
“MORE PARTNERS IN THE CHAIN MORE
DIFFICULT AND EXPENSIVE THE CHAIN IS TO
MANAGE
POOLING RISKS
PRACTICE OF SHARING ALL RISKS AMONG A
GROUP OF INSURANCE COMPANIES
“TOGETHER ALLOWS THE HIGHER COSTS OF
THE LESS HEALTHY TO BE OFFSET BY THE
RELATIVELY LOWER COSTS OF THE HEALTHY”

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