Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations.
The logistics management process begins with raw material accumulation to the final stage of delivering goods to the destination.
Logistics management involves numerous elements, including:
Selecting appropriate vendors with the ability to provide transportation facilities
Choosing the most effective routes for transportation
Discovering the most competent delivery method
Using software and IT resources to proficiently handle related processes
2. MEANING
Logistics 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.
3. Functions: Planning, Procurement, Transportation, Supply and
Maintenance.
Processes: Requirements Determination, acquisition, distribution
and conservation.
Business: Science of planning, design and support of business
operations of procurement, purchasing, inventory, warehousing,
distribution, transportation, customer support, financial and
human resources.
4. Order Processing
Inventory
Transportation
Warehousing, Materials Handling, & Packaging
Integrated through a network of facilities
E.g. Warehouses and Distribution Centres
MAJOR FUNCTIONS OF WORK
5. SERVICE BENEFITS ARE CREATED BY
LOGISTICAL PERFORMANCE IN 3 AREAS
Availability: Involves having inventory to consistently
meet customer material or product requirements.
Operational Performance: Deals with the time
required to deliver a customer’s order.
Service Reliability: Involves the quality attributes of
logistics.
6. LOGISTICS ACTIVITIES
Transportation
Warehousing and storage
Industrial packaging
Materials handling
Inventory control
Order fulfillment
Demand forecasting
Production
Procurement
Customer service
Planning/scheduling
Facility location
Return goods handling
Parts and service support
Salvage and scrap disposal
7. Inbound Logistics
Sourcing and vendor selection for supply of raw materials and manufacturing parts
Inbound transportation and procurement planning
Raw materials warehousing including consolidation warehousing
Management of Inventory
Information system for effective support strategic alliances with the supplies and transporters
Internal Logistics
Capacity Planning Operational planning Production planning
Materials Requirement planning
Shop floor control
Management of in-process inventory
Supporting material handling facilities planning and their deployment etc.
COMPONENTS
8. Out Bound Logistics
Outbound logistics system is concerned with the flow of finished
products from factory warehouse to the customers through a
distribution network comprising:
The wholesalers
Distributors
Retailers
Regional warehouses
Transporters
The inventory at all levels
Sales order processing
Sales return processing
Accounts receivable realization
Counter flow of information from the customers to the factory
9. TYPES OF OPERATIONS THAT INTEGRATE THE LOGISTICS
Operations of Flow :
Transport associated to the supplying of raw materials and finished products.
Operations of Stock :
Considers Storage of Raw materials and Finished Products.
Process Operations :
Considers Production ( Product ) and Preparation ( Packaged, Packing ).