The Scope of Logistics

The Scope of Logistics - LogisticsManagement SCM 345:...

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Logistics Management 1 SCM 345: Introduction to Logistics Management The Scope of Logistics The Scope of Logistics by Dr. Mark Barratt
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Logistics Management 2 What is Logistics? Logistics is: Everywhere: 24-7-52! Complex: Synchronization across the world! Not highly visible! - We see the lack of it when our local supermarket is out of stock! Increased recognition through news media, corporate-owned trailer- promotions, and television - e.g. UPS – “what can Brown do for you?” + “We Logistics” We do not tolerate failure to perform! - We will switch loyalty to another supermarket quickly and quietly. - Increased sensitivity to service quality provided by logistics 98% on-time and in-full (OTIF) is not always acceptable - Both customers (e.g. Wal-Mart) and consumers (us, you and me!)
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Logistics Management 3 The Scope and Goal of Logistics The Scope of Logistics involves: - Management of order processing, inventory, transportation and combination of warehousing, materials handling, and packaging, all integrated throughout a network of facilities. The Goal of logistics is: - to support procurement, manufacturing and customer service operational requirements Internally : - To coordinate functional competency into an integrated operation focusing on serving customers (internal). Externally : - Operational synchronization is essential with customers (outside of the firm) as well as material and service suppliers to link internal and external operations as one integrated process. Source: Bowersox et al. 2007.
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Logistics Management 4 The Scope of Logistics ( Manufacturer ) Customer DC Customer Retail Store Manufacturer Production Supplier Inbound- Warehouse Distribution Center (DC) Finished Goods Collecting Raw Materials/ Components from Suppliers Receiving Quality/audit Inspection Put-a-way Storage Order Picking Shipping/Movement Internal Transportation Delivery Receiving Quality/audit Inspection Put-a-way Storage Shipping/Movement External Transportation Delivery Downstream Product Flow Other Logistics Activities include: Production planning Site location Forecasting and replenishment planning
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This note was uploaded on 03/06/2011 for the course SCM 345 taught by Professor Maltz during the Spring '08 term at ASU.

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The Scope of Logistics - LogisticsManagement SCM 345:...

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