Basics of Logistics PDF

Basics of Logistics Dr. Maha Morssi Logistics Concept  The scope and influence of logistics has evolved in the late 1940s. In the 1950s, and 60s, military was the only organization which used logistics in the second world war. The scope of logistics has been extended beyond...

Basics of Logistics Dr. Maha Morssi Logistics Concept  The scope and influence of logistics has evolved in the late 1940s. In the 1950s, and 60s, military was the only organization which used logistics in the second world war. The scope of logistics has been extended beyond the army, as it has been recognized as one of the important tools for developing competitiveness.  Competitive advantage means that the company has the ability to differentiate itself, in the customer’s eyes, and also is operating at a lower cost and greater profit.  Logistics facilitates in getting products and services as and when they are needed and desired to the customer. It also helps in economic transactions, serving as a major enabler of growth of trade and commerce in an economy. Logistics: What It Is Council of Logistics Management definition: “Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers”. Logistics management: Is a component that holds the supply chain together The Increased Importance of Logistics  A Reduction in Economic Regulation  Changes in Consumer Behavior  Technological Advances  The Growing Power of Retailers  Globalization of Trade Logistics has the following objectives: Reduction of inventory.  Reduction of Costs  Economic of Scale.  Reliability and consistency in delivery performance.  Minimum damage to products.  Quicker and faster response. The 7 ''Rights'' Of Logistics  1. Right product  2. Right customer  3. Right quantity  4. Right condition  5. Right place  6. Right time  7. Right cost What are logistics activities?  Logistics activities include all activities from the procurement of raw materials, all the way through to delivering the right products to customers. Customer service Facility location decisions Inventory management Order management Procurement Transportation management Demand forecasting International logistics Materials handling Packaging Reverse logistics Warehousing management Supply Chain and Logistics Difference between Supply Chain and Logistics Supply Chains refers to networks of companies that work together and coordinate their actions to deliver a product to market. Logistics refers to the activities that focus on the movement and storage of items in the supply chain. Logistics delivers value to the customer through three main phases: a. Inbound logistics/ Upstream Logistics: These are the operations, which precede manufacturing. These include the movement of raw materials, and components for processing from suppliers.  b. Process logistics: These are the operations, which are directly related to processing. These include activities like storage and movement of raw materials, components within the manufacturing premises.  c. Outbound logistics/ Downdstream Logistics: These are the operations, which follow the production process. These include activities like warehousing, transportation, and inventory management of finished goods. Logistics Careers Logisticians need to be both a generalist and a specialist: As a generalist, the logistician must understand the relationship between logistics and other corporate functions, both within and outside the firm. As a specialist, the logistician must understand the relationships between various logistics activities and must have some technical knowledge for various activities.  Logistics Careers Examples of Logistics-related jobs include:  Logistics analyst  Logistics Consultant  Logistics specialist or/and Manager  Supply Chain coordinator or/and Manager Customer service manager Procurement manager Transportation manager Warehouse operations manager Production Planning Manager Logistics Professionalism APICS – The Association for Operations Management (www.apics.org) American Society of Transportation and Logistics (AST&L) (www.astl.org) Council of Supply Chain Management Professionals (www.cscmp.org) Delta Nu Alpha (DNA) (www.deltanualpha.org) International Society of Logistics (SOLE) (www.sole.org) Supply Chain & Logistics Association Canada (SCL) (www.sclcanada.org) The Chartered Institute of Logistics and Transport in the UK – CILT (UK) ( www.ciltuk.org.uk)  Warehousing Education and Research Council (WERC) (www.werc.org) Thank You