Unit 1- Part I.
Introduction
INTERNATIONAL TRADE
WAREHOUSING LOGISTICS
Contents:
What is logistics?
What is Supply Chain Management?
Logistic activities.
Logistics Information System.
Reverse Logistic.
Logistics is:
the management of the flow of goods and
information between the point of origin
and the point of consumption.
Main logistic activities:
Transportation ,
Factory Customer,
Warehousing,
client
etc.
Logistics management must balance two
basic targets:
• Quality of Service.
• Low Cost.
The Scope of Logistics in
Business
Logistics aim to the following
contributions:
• Achieve maximum customer service level.
• Ensure high product quality.
• Achieve minimum (possible) cost.
• Logistics management tries to have the
“right product”, in the “right quantity”, at
the “right place”, at the “right time”, with
the “right cost”.
What is Logistics?
Materials
management
Supply Distribution Logistics
(Warehousing
)
Logistics is the . . .
“process of planning, implementing, and
controlling the efficient, effective flow and storage
of goods, services, and related information from
point of origin to point of consumption for the
purpose of conforming to customer requirements.“
Supply and distribution channel
The ‘physical supply channel’ refers to the time and space gap
between a firm’s material sources and its processing points.
The ‘physical distribution channel’ refers to the time and
space gap between a firm’s processing points and its customers.
What is Supply Chain
Management?
The ‘supply chain’ encompasses all
activities associated with the flow and
transformation of goods from the raw
materials stage to the end user (along with
the associated
Sources
information
Plants/
flow).
of Custome
operation rs
Supply s
The Supply chain includes all the
participants
Key components of logistics
• Customer service (typically defined by
marketing).
• Transportation.
• Inventory management.
• Information flows and order processing.
Logistic activities
• Warehousing (Space determination, layout, configuration,
stock placement).
• Materials handling ( equipment selection & replacement
policies, order-picking procedures, stock storage & retrieval).
• Purchasing (supply source selection, purchase timing,
purchase quantities).
• Protective packaging (designed for handling, storage,
protection from loss/damage).
• Cooperate with production/operations (specify aggregate
quantities, sequence & time production output, schedule
supplies).
• Information maintenance (info collection, storage &
manipulation, data analysis, control procedures).
Logistic decisions could be Long,
medium or short term decisions.
Logistics Information System
Design
• This strategy should include all of those information-
related factors that are vital to support the
processes and the physical structure of the operation.
• There are many enterprise-wide information systems
(enterprise resource planning – ERP), which may
support logistics process and network design.
• An information systems might include:
▫ Electronic point of sale (EPOS)
▫ Electronic data interchange (EDI) between companies
▫ Barcodes / radio frequency identification (RFID)
▫ Warehouse management systems (WMS)
▫ Forecasting & Inventory management systems
▫ Vehicle routing / scheduling softwares/ Fleet
management systems
Reverse Logistics
Is the process of moving goods from their
typical final destination for the purpose of
capturing value, or proper disposal.
Vocabulary
• Logistics • Manufacturers
• Reverse Logistics • Wholesalers & Retailers
• Item • Customers
• Goods • Raw materials
• Supply chain • Warehousing
• Suppliers - Vendors
Activities
1. These are Logistic objectives : (True or
false)
• Achieve maximum customer service level.
• Achieve minimum cost.
• Achieve minimum (possible) cost.
• Logistics management tries to have the
“right product”, in the “right quantity”, at
the “right place”, at the “right time”.
• Logistics management must balance 2 basic
targets: Quality of Service and Low Cost.
2. Are these strategic, tactical or
operational decisions?
3. Match the words and the logistic
activities:
• _____________(Space determination, stock layout,
configuration, stock placement).
• _____________( equipment selection & replacement policies,
order-picking procedures, stock storage & retrieval).
• ____________(supply source selection, purchase timing,
purchase quantities).
• _________________(designed for handling, storage,
protection from loss/damage).
• ____________________(info collection, storage &
manipulation, data analysis, controlprocedures).
Materials handling , Information maintenance ,
Warehousing, Protective packaging and Purchasing .
4. What do you think?
o Work in logistics involves the integration of information,
transportation, inventory, warehousing, material handling,
packaging, human resources and sometimes security.
o Logistics is the science of managing and controlling the flow
of goods between the point of origin and the point of
production.
o Logistics and supply chain management can provide a
multitude of ways to increase efficiency and productivity
and hence contribute significantly to reduced unit costs.
o The scope of logistics spans the organisation, from the
management of raw materials through to the delivery of the
final product.
Additional vocabulary
• Retrieval: /rɪˈtriːvəl/ Recuperación.
• Replenishment: /rɪˈplenɪʃmən/
Reabastecimiento, reposición.
• Wholesaler: /ˈhəʊlˌseɪləʳ/Mayorista.
• Fleet:/fliːt/ Flota.
• Scope: /skəʊp/ Ámbito.
• Disposal: / dɪˈspəʊzəl/ Eliminación de
residuos.
• Encompass: / ɪnˈkʌmpəs/ Incluye.
• Trade-off: /ˈtreɪdɒf/ 1. Intercambio,
compensación. 2. (fig) Solución intermedia.
