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SCM 3 - Chapter 1 - Logistics 3-07-04-2020
SCM 3 - Chapter 1 - Logistics 3-07-04-2020
SCM 3 - Chapter 1 - Logistics 3-07-04-2020
Logistics?
• management of the flow of products from the point of origin to the
point of consumption.
• process consists of :
1. request from a customer for a particular product via an order form.
2. inventory management
3. completeness and accuracy check ups.
4. The availability of the requested product
5. customer’s credit status are verified.
6. products are retrieved from the stock, packed, and delivered along
with their shipping documents.
• NB-the customers have to be kept informed about the status of their orders.
Cont…
• 2. Inventory Management
• Product availability
Cont….
• 3. Freight transportation
• Forecasting
• Logistical costs
• Logistics-
• Involves handling, storage and transportation of goods and
services
Logistics vs Systems analysis
Logistics vs Systems analysis
• Logistics analysis
• Tools/instruments
1. Forecasting
2. Analysis
3. Rational d-m
4. Facility location
5. Route planning
6. Inventory control
7. Scheduling
8. Queuing theory
• Systems analysis
• Steps
1. Define business objectives
2. Understand current environment
3. All technically feasible alternatives
4. Optimise/assess
5. Most viable alternative
6. Organise and intro the selected activities
7. Develop and apply appropriate performance measures
Logistics Management
• Ensuring the efficient, effective flow and storage of goods,
services and related information, from the place of origin to
the place of consumption
• Activities
Facility sites
Durable equipment
Distribution parties
Carriers
• Organizing
• Arranging several elements/resources into a purposeful sequential
or spatial (or both) order or structure.
• Activities
• Resource allocation
• Product/service design
• Execution
• uses to determine whether organizational goals have been
met
• Activities
• Customer satisfaction
• Efficient deployment of resources
• Corrective action
Logistics-related activities
• Demand forecasting- amount of goods needed
• Site selection and design-location of partners
• Procurement-sourcing of goods
• Material handling-material flow
• Warehouse management- administration of space to store
inventory
• Inventory management- stock administration
• Order processing- customer orders
• Logistics communications-effective communication
• Transport- goods movement
• Reverse logistics- handling returns
• Customer service- customer satisfaction
Logistics within SA context
• global competitive advantage
• Transhipping
• …………………………….