LOGISTICS SYSTEM OF A SEPARATE PRODUCING COMPANY (IN GENERAL)

LOGISTICS, 2022/2023
 ABOUT IDENTIFICATION OF PROCESSES IN LOGISTICS
• there is no single universal template for identifying processes in
logistics activity
• identification of processes in business is often dependent on the way
the business is organized and how it is reflected by solutions in
organizational structure of the company
• proposal of holistic approach to identification of processes: APQC
(American Productivity & Quality Center) PROCESS CLASSIFICATION
FRAMEWORK

Modern Business Management 2019/2020

 APQC PROPOSAL
(categories of processes
in enterprise activity)

Source: apqc.org,2019

Modern Business Management 2019/2020

EXCERCISE 1:
1. Identify objectives of following processes in the area of logistics
2. According to objectives of processes assign each process to correct subsystem of
logistics

LOGISTICS, 2022/2023
 PROCESSES IN LOGISTICS ACTIVITY
• development of sourcing strategy – it concerns developing a procurement plan, selecting suppliers, developing purchased
inventory strategies, determining ways to achieve efficiency and value in cooperation with suppliers
• management of demand for products – including, in particular, development of demand forecast together with suppliers, but
also with customers, (if the enterprise takes part in supply chain cooperation), assignment production obligations to resources
available, monitoring results of operation and comparing with the demand forecast and correcting the forecast
• preparation of demand plan for materials – it concerns mainly cooperation with contracted manufacturers, determination of
critical materials, taking into account suppliers capacity
• development of quality standards and procedures – setting quality objectives, developing quality control procedures,
informing suppliers about quality requirements
• designing supply network (taking into account vendors of materials and services)
• development of strategies for production and materials – defining production goals, setting policies for operations and
materials, for outsourcing manufacturing tasks, determining production capacity, the production process, organization of the
place or places (various locations of stages) of production and the necessary infrastructure
• preparation of production schedule – creating detailed schedule for the production line, creating, submitting and
implementing production orders, determining the size of the series
• preparation of demand plan for materials – concerns the control of production and changes in demand for materials
• management of capacity utilization – influencing requirements for delivery to recipients
• product manufacturing – concerning management of inventory (materials, semi-finished products, parts and modules for
product) and assessment of production results, includes also tasks related to return of defective items, organization and
implementation of returns from customers, as well as participation in the organization and implementation of returns to
suppliers (in the area of product manufacturing/serviceLOGISTICS,
delivery) 2022/2023
 PROCESSES IN LOGISTICS ACTIVITY
• warehouse service – especially regarding the receipt, control and storage of inbound deliveries and
location monitoring, as well as compliance of inventories with production needs
• planning the flow of materials purchased – taking into account not only plans, but also the
implementation and monitoring of the results of supply deliveries
• selection of suppliers and preparation of contracts – in particular selection of suppliers, certification
and validation of suppliers, negotiating contracts and contract management
• ordering materials and services – including preparation and review of orders, approving orders, sending
orders and answering queries, registering received goods and assessing and explaining reservations
• supplier evaluation and development of cooperation - taking into consideration monitoring and
management of supplier information, preparation / analysis of the results of supply activities
• managing logistics of returns – includes activities such as authorization and handling of
returns, logistics handling of returns, handling of unnecessary/defective products, as well as
management and handling of warranty claims (in the area of processes related to logistics and
storage management)
• customer complaint management – including the issue of receiving and flow of products as a
result of customer complaints (in the area of customer service)
• measurement of the level of customer satisfaction related to dealing with complaints –
including receipt and flow of returned goods (in the area of assesment of customer service)
LOGISTICS, 2022/2023
 PROCESSES IN LOGISTICS ACTIVITY
• planning distribution requirements – concerns the assignment of commitments to available resources,
maintenance and updating of data, description of requirements for deliveries to destination points, description of
consolidation requirements, joint management of product completion, management of requirements for
partners, shipment plan
• review of distribution planning policy – concerns the review of distribution network, establishing relationships
with customers
• assessment of distribution planning – includes defining relevant performance indicators in this area, determining
the frequency of reviews, calculating performance indicators, determining performance trends, benchmarking
analyzes, gap performance analyzes, preparing reports and developing a performance improvement plan
• warehouse service – including, in particular, selecting, packing and shipping products, monitoring the results of
logistics service performed by vendors (storage and shipping) and managing finished goods inventory
• handling of outgoing transport – particularly planning, carriage and delivery of outgoing products, monitoring the
carrier's operation, managing the transport fleet as well as processing and checking carrier's invoices and
documents
• prioritizing customer service - in particular analyzing the needs of existing and new customers based on feedback
from the market
• defininition of customer service policy and related procedures
• defininition of scope of service for individual customers
LOGISTICS, 2022/2023
 PROCESSES IN LOGISTICS ACTIVITY
• confirmation of specific requirements of client for service delivery – related
mostly to preparation of orders for service delivery
• description and planning the resources required to provide the service –
including, first of all, activities related to preparation of plan and schedule of
resources, also preparation of schedule for the implementation of ordered
service
• providing service for specific customer – concerning primarily organization of the
daily schedule for provision of service and transfer of resources required

LOGISTICS, 2022/2023
Subsystem Process Objective/Objectives of process Explanation (short)
of logistics

LOGISTICS, 2022/2023