ch1 - Logistics Management Defined Logistics management is...

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Logistics Management Defined Logistics management is that part of the supply chain process that plans. implements, and controls the efficient. effective now and storage of goods. services, and related information from the point-of-origin to the point-of-consumption in order to meet customers' requirements.' Logistics b Relevant to All Types of Organization This definition includes the now of goods, service:" and information in both the manufacturing and service sectors. Manufacturing entities include all types of companies producing goods as divergent as automobiles computer cosmetics, artificial limbs, aircraft, and food items. The service sector includes entities such as government organizations, hospitals, banks, universities, retailers, and wholesalers.? Examples from these various manufacturing and service sectors will be used throughout the book to illustrate the relevance of logistics management to a variety of operations. ,. Inputs into the Logistics System Figure I-I illustrates some of the many activities included within logistics management. Inputs to the logistics process include natural, human, financial, information resources. Logistics practitioners plan, implement, and control these inputs in various forms, including raw materials (e.g., subassemblies, parts, packing materials, basic commodities); in-process inventory (i.e., product partially completed and not yet ready for sale); finished goods (i.e., completed 'products ready for sale to intermediate or final customers).
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Outputs of the Logistics System The outputs of the logistics system include competitive advantage for the organization resulting from a marketing orientation and operational efficiencies and effectiveness, time and place utility efficient movement to the customer. Another output occurs when the logistics service mix is such that logistics becomes a proprietary asset of the organization. These outputs are made possible by the effective and efficient performance of the 13 logistics activities shown at the bottom of Figure I-I.
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Systems Approach/Integration The systems approach is critical concept in logistics. Logistics is, in itself, a system; it is a network of related activities with the purpose of managing the orderly flow of material and personnel within the logistics channel. The Systems Approach Defined The systems approach is a simplistic yet powerful paradigm for understanding interrelationships. The Systems Approach simply states that all functions or activities need to be understood in terms of how they affect, and are affected by, other elements and activities with which they interact. The idea is that if one looks at actions in isolation, he or she will not understand the big picture or how such actions affect, or are affected by, other activities. In essence, the sum, or outcome of a series of activities, is greater than its individual parts. Systems Must Be Viewed as a Whole
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ch1 - Logistics Management Defined Logistics management is...

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