The Scope of Logistics - Part 2

The Scope of Logistics - Part 2 - LogisticsManagement...

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Logistics Management 1 SCM 345: Introduction to Logistics  Management The Scope of Logistics: Part II The Scope of Logistics: Part II by Dr. Mark Barratt 
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Logistics Management 2 Approaches to Analyzing Logistics Systems:  Materials Management v. Physical Distribution Frequently the movement and storage of raw materials is far  different from the movement and storage of finished goods. There are four (4) different classifications of logistics systems - Balanced system - Heavy inbound - Heavy outbound - Reverse systems
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Logistics Management 3 Balanced  System Supplier Supplier Supplier Supplier Retailer Retailer Retailer Retailer Manufacturer Consumers Example: Consumer products industry - there are relatively many organizations at each stage (in-bound and outbound) of the supply chain. For example, if the Manufacturer is Nestle, then it is selling to all of the large supermarkets (i.e. Wal-Mart, Target, Safeway, Frys, Wegmans, etc). Equally, their will be multiple suppliers selling to Nestle for commodities such as coffee beans, and other suppliers (e.g. packaging, glass) etc.
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Logistics Management 4 Heavy Inbound  System Supplier Supplier Supplier Supplier Manufacturer Example: Aircraft, construction Industry - there are many organizations in the upstream parts of the supply chain, but then relatively few manufacturers and customers ( i.e. downstream ). Here the manufacturer could be Boeing, or Lockheed. DOD Airlines Consumers Supplier
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Logistics Management 5 Heavy Outbound  System Supplier Supplier Retailers Doctors Hospitals Others Manufacturer Consumers Example: Chemicals - there are relatively few organizations in the upstream parts of the supply chain, but then relatively many manufacturers and many more customers. An example of the manufacturer could be GSK or Pfizer's.
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Logistics Management 6 Reverse  System: the future for most, now for 
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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 - Part 2 - LogisticsManagement...

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