NAME: MUKAMI SHARON

ADMISSION:18M01APSO42
UNIT: TRANSPORT MANAGEMENT AND LOGISTICS
UNIT CODE: PSM 316
LECTURER: MR. S.K NDONYE
ASSIGNMENT 1.
Logistics is the art and science of obtaining, producing and distributing materials and products in
the proper place and in proper quantities. Logistics of physical items involves integration of
information flow like: material handling, production, packaging, inventory, transportation,
warehousing and security
Transportation is a mode used to execute the planning when getting freight from one location to
another. Transport services include: full truck load, less than truck load, heavy hauling, flatbed
trucking, intermodal transport services, freight management, cartage and trade show shipments.
Components of transportation include:
1. Shipper -manufacturer/ exporter
2. Freight broker -arrange transport company for shipper
-arrange truck and give updates to the
shipper until the load gets delivered
3. Transport company- provide full service with updates
to the shipper and receiver
4. Receiver
5. Consumer
Logistics management is the part of supply chain management that plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and point of consumption to meet customer
requirements.
Difference between supply chain and logistics:
Supply chain: transforming a raw material into products and getting it to customers
Logistics: movement of materials in the supply chain
Seven R’s in logistics: right product, right quantity, right condition, right place, right time, right
customer and right price
Goals of logistics:
1. Meet customer requirements
2. Respond rapidly to changes in the market or customers’ orders
3. Minimizes variances in the logistics service
4. Minimize inventory to reduce cost
5. Consolidate product movement by grouping shipment
6. Maintain high quality and engage in continuous improvement
7. Support the product life cycle
Strategies of logistics:
1. Coordinating functions (transportation management)
2. Integrating the supply chain
3. Substituting information for inventory
4. Reducing supply chain partners to an effective minimum number
5. Pulling risks
Substituting information for inventory: this is one of the tactics used to design effective logistics
strategy. It includes the following steps:
1. Locate the right countries
2. Develop an effective export-import strategy
3. Select warehouse location- establish most effective one
4. Select transportation modes and carriers
5. Select the right number of partners
6. Develop state of the art information system
Physical inventory can be replaced by better information in the following ways:
1. Improve communication- talk regularly with suppliers
2. Collaborate with suppliers- share observations about trends
3. Track inventory precisely- use GPS or barcode
4. Keep inventory in transit- reduces inventory costs
5. Use postponement centers- avoid filing warehouse with the wrong mix of goods
6. Mix shipments to match need
7. Don’t wait in line at customs- clearing freight while goods are still in water or air
Pooling risks- when manufacturers and retailers experience high variability in demand to their
products, they can pool together common inventory components associated with a broad family y
of products to buffer the overall burden of having to deploy inventory for each discrete product.
Pooling risks reduces storage costs and stock out risk