Logistics
Chapter 1: Introduction to Logistics Management
Where We’re Going
◼ Basic Concept of Logistics
◼ Differentiate between supply chain and
logistics
◼ Logistics Function
◼ Logistics value proposition
◼ Logistics Goals and Strategies
◼ Substituting Information for Inventory
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1.1: Basic Concept
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1.1: Basic Concept
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1.1: Basic Concept
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1.1: Basic Concept
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1.1: Basic Concept
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1.1: Basic Concept
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1.2: Difference b/w Supply
Chain and Logistics
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1.2: Difference b/w Supply
Chain and Logistics
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1.2: Difference b/w Supply
Chain and Logistics
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1.3: Logistics Functions
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1.3: Logistics Functions
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1.3: Logistics Functions
Selecting the most efficient combination of these modes can measurably
improve the value created for customers by cutting delivery costs,
improving the speed of delivery, and reducing damage to products. 14
1.3: Logistics Functions
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1.3: Logistics Functions
Warehousing is “the activities related to receiving, storing, and
shipping materials to and from production or distribution
locations. It is a very important factor, we need to consider to know
the logistics meaning.” 16
1.3: Logistics Functions
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1.3: Logistics Functions
Third-party logistics providers (3PLs) actually
perform or manage one or more logistics services.
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1.3: Logistics Functions
Fourth-party providers (4PLs) are logistics specialists and play the role of
general contractor by taking over the entire logistics function for an
organization and coordinating the combination of divisions or 19
subcontractors necessary to perform the specific tasks involved.
1.3: Logistics Functions
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1.3: Logistics Functions
How best to handle the return, reuse, recycling, or disposal of products
that make the reverse journey from the customer to the supplier.
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1.4: Logistics Value
Proposition
The logistics value proposition stems from a unique commitment of
your firm to an individual customer or select group of customers.
The value stems from your ability to know exactly how to balance logistics
costs against the appropriate level of customer service for each of your
key customers. 22
1.5: Logistics Goals and
Strategies
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1.5: Logistics Goals and
Strategies
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1.6: Integrating Supply chain
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1.6: Integrating Supply chain
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1.6: Integrating Supply chain
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1.6: Integrating Supply chain
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1.6: Integrating Supply chain
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1.6: Integrating Supply chain
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1.6: Integrating Supply chain
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1.6: Integrating Supply chain
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1.7: Reducing SC Partners to
an Effective Number
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1.7: Reducing SC Partners to
an Effective Number
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1.7: Reducing SC Partners to
an Effective Number
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1.8: Pooling Risks
In regard to inventory management, pooling risks is a method
of reducing stockouts by consolidating stock in centralized
warehouses.
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1.8: Pooling Risks
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1.8: Pooling Risks
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1.9: Flow of Goods and
Information
Customer information flows through the enterprise via orders, sales
activity, and forecasts. As products and materials are procured, a value-
added flow of goods begins.
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1.9: Flow of Goods and
Information
The enterprise must have internal process integration and collaboration
between functions as well as alignment and integration across the supply
chain.
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