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Operations & Logistics Management Lesson 10: Logistics Management
INTRODUCTION • Logistics is a component of supply chain management (SCM). • part of SCM that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements. •
IMPORTANT • According to the Council of Supply Chain Management Professionals, logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/ demand planning, and management of thirdparty logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service.
LOGISTICS • Logistics is important for a firm to grow. The various steps involved in a logistics strategy development and planning process include: Visioning Strategic analysis Planning Managing change •
LOGISTICS • There are several factors that affect logistics. These issues need to be anticipated, prepared for and taken advantage of for a company to be successful in the business place. • These factors can be grouped into external and internal factors.
LOGISTICS External: • Globalisation • Technology • Workforce • Challenging nature of workforce • Environmental concerns
LOGISTICS Internal • Customers service & quality • Third party networks • Supply chain management (SCM) • Changes in management and organization style.
QUESTIONS • Define the term “logistics”. • Explain how external factors can affect your organisation’s logistics. • Name the management activities that constitute ‘logistics’.