LOGISTICAL INTERFACES

WITH PROCUREMENT
Logistics
-In a general business sense, logistics is the management of the flow of things
between the point of origin and the point of consumption to meet the
requirements of customers or corporations.
-It can be defined as having the right type of product or service at the right
place, at the right time, for a right price and in the right condition.”
- The resources managed in logistics may include
tangible goods such as materials, equipment, and
supplies, as well as food and other consumable items.
- In business, logistics is the management of the flow of
things between their point of origin and their final
destination in order to meet the needs of companies and
customers. It is a subset of supply chain management.
 Procurement
 is the process of finding and agreeing to terms, and
acquiring goods, services.
 as an organizational process is intended to ensure that
the buyer receives goods, services, or works at the best
possible price when aspects such as quality, quantity,
time, and location are compared.
 Just In Time

-is an inventory management method in which

goods are received from suppliers only as they are
needed.
-the goal of (JIT) is to time phase so that
purchased materials and products arrive just at the
time they are required for the transformation
process.
-Reduces inventory waste a just-in-time strategy
eliminates overproduction.
 Procurement of Logistics Services
 At its core, procurement logistics is the sourcing of materials
needed to manufacture products. In other words, this part of
the supply chain focuses on purchasing raw materials,
replacement parts, auxiliary supplies, operating supplies and
other items needed for the manufacturing process to work.

 Procurement logistics doesn’t just deal with the purchasing

of materials, however. It also handles storing, organizing and
shipping these materials to and from the warehouse. The
procurement logistics team is also responsible for product
sourcing and selection policies, terms and conditions,
communication and purchasing strategies to help keep the
cost of acquisition as low as possible.
 Performance Based Logistics
 Initiated by the Department of US defense for
dealing with the suppliers.
 Is used to buy what the military traditionally
referred to as logistics support.
 The government has found PBL to be an
effective means for obtaining higher quality
while simultaneously achieving lower cost.
 Thank you
BY:
JHAN CRIS S. MAGHINAY