1. Define logistics designed for a world market or products are
2. Define activity mix in logistics business produced where the cost of raw materials, 3. Determine the importance of business logistics components and labor are lower or products are 4. Identify materials management produced locally but sold internationally. 5. Describe physical distribution 6. Describe reverse logistics iii. Strategic role : As business logistics are capable of 7. Identify activity mix lowering a significant portion of the costs incurred 8. Identify corporate and logistics planning by organization, its role is now more prevalence in the strategic planning of the organization. 1. Define logistics : the process of planning, implementing, and controlling the efficient, effective iv. Customer value : Value will be created when product flow and storage of goods services and related requested reach the buyers at the time and place information from point of origin to point of specified. Four types of value which are form, time consumption to meet customer requirements and possession however logistics will create two out (Council of Logistics Management, 1998) of four values which are time and place values in product mainly through transportation.
v. Customer wants : Has needs and wants. Needs refer
2. Define activity mix in logistics business to basic needs. Wants are shaped by culture and Business logistics is known as physical distribution, materials changing environment. management, transportation management and supply chain management. 4. Identify materials management
Activity involves in business logistics : Primary materials management activities : (TIP)
i. Transportation TIO i. Transportation
ii. Inventory management PWM ii. Inventory management iii. Order Processing PCP iii. Purchasing iv. Purchasing Supporting activities : (WIMAP) v. Warehousing vi. Materials handling i. Acquisition vii. Packaging ii. Protective packaging viii. Customer service standards iii. Warehousing ix. Product scheduling iv. Materials handling v. Information maintenance These activities are being managed by organizations logistician. To achieve successful coordination of the business 5. Describe physical distribution logistic activities, it requires an effective and efficient management. Therefore , the need to manage these activities *Also called marketing logistics requires planning, organizing, and controlling the logistics *Involves planning, implementing and controlling the physical activities. flow of goods, services and related information from the point of origin to point of consumption in order to meet 3. Determine the importance of business logistics customer requirements at a profit *Primarily concerned with finished and semi finished goods i. Cost : Logistic costs are most significant cost in most that a company produces and usually on offer to sale. firms. This is true if logistic not well planned. The *Logistician can arrange the distribution strategically savings from minimizing costs would benefit through /direct shipments from plant inventories/ or /direct customers and company’s shareholders. shipment from vendors or /the production line or shipment through the warehousing systems. ii. Length of Supply and Distribution lines : Firms are developing global strategies, whereby products are CHP 1 NOTE 6. Describe reverse logistics Types of planning Management Level *Stands for all operations related to the reuse of products in an Organization and materials. *The process of moving goods from their typical final destination for the purpose of capturing value or proper Strategic Top Management Level disposal. *Remanufacturing and refurbishing activities also may be Middle Management Level includes the management and the sale of surplus as well as Tactical returned equipment and machines from the hardware leasing Supervisory Level business. *Resource goes at least one step back in the supply chain. Operation Operative Level *Product sent to customers might be returned by the customer if a wrong product is delivered, damaged, broken, unwanted, access for simply that customer changes his or her mind. Types of planning at different management levels *An example; a manufacturer produces product A which moves through the supply chain network reaching the Each type of planning has different time frame, For example: distributor or customer. Any process or management after i. Mission is long term the sale of product A involves Reverse Logistics. If product A ii. Strategy is longer than one year happened to be defective, repairing, recycling or disposing iii. Tactical usually less than a year the product. Product A will travel in reverse through the iv. Operational is short range with decisions made supply chain network in order to retain any use from the frequently defective product. The type of information also differs. The information strategy 7. Identify activity mix is often incomplete and imprecise. Data may be average. An *Activities divided into key activities and support activities accurate data is required for the operational level. For Key activities Support activities example, it is planted that all inventories do not exceed a Customer Service Standards Warehousing certain amount but at an operational level, inventories are Transportation Material Handling managed individually. Inventory management Purchasing Information flows and Order Protective packaging It has been suggested that a logistics strategy has three Processing objectives : Cooperative with production/ Operations to i. Cost reduction Information maintenance ii. Capital reduction iii. Service improvement through its major planning *Key and support activities are separated because certain areas in customer service goals, facility location activities will generally take place in every logistics channel, strategy, inventory decisions and transport strategy whereas others will take place depending on the of logistics. circumstances within a particular firm.
8. Identify corporate and logistics planning
*The broad and general statement that addresses the customers, suppliers, competitors and company makes up the corporate strategy. *It serves as the plan of where the firm is going and how to get there. *This is called corporate strategy. *Later converted into strategy, tactical and operational statement at different level in the organization.