written report ch5 cornelio.docx - Cornelio Winnie L BSBA...

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Cornelio, Winnie L. BSBA – LSCM Written Re CUSTOMER-ORIENTED LOGISTICS MANAGEMENT INTRODUCTION LOGISTICSLOGISTICS MANAGEMENT It is a supply chain management component that is used to meetcustomer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination. CONTENT Objectives of the Logistics COST REDUCTION: It is usually achieved by tactics such as altering the number and location of warehouses, altering the mode of transport, route optimization for the transport function, and optimizing the quantum of inventory. •CAPITAL REDUCTION: It is a strategy devoted towards minimizing the level of investment in the logistical system. Also, substantial capital reduction can be achieved by leasing and renting facilities without affecting the service output to the customers. •SERVICE IMPROVEMENT: It involves giving better service across the dimension of service without substantially increasing the cost of Facilities Decision DIRECT SHIPMENT: In direct shipment strategies, goods once manufactured are directly shipped to the point of sale without being stocked anywhere. • WAREHOUSING: In warehousing strategies, however, goods once manufactured are stored in warehouses waiting from orders from the retail outlets or others point of sale. • CROSS-DOCKING: In cross docking, while warehouses do exist, the storage time is reduced to a minimum. In this strategy, items are distributed continuously from suppliers through warehouses to suppliers with the items lying in the warehouses for just a few hours.
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  • Spring '17
  • Julius Bambico

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