CHAPTER 1:

INTRODUCTION TO
LOGISTICS MANAGEMENT
MGNT 7 LOGISTICS MANAGEMENT
BSBA THIRD YEAR
SOPHIA LYN DUQUE
 LOGISTICS
• Logistics is the art and science of
management, engineering and technical
activities concerned with requirements,
design and supplying, maintaining
resources to support objectives, plans
and operation.
 Logistics management
• is the part of the supply chain process
that plans, implements, and controls the
efficient, effective flow and storage of
goods, services, and related information
from the point of origin to the point of
consumption to meet customer
requirements.
 Logistic Resources
• Logistic resources, such as tanks,
pipelines, and ships, have the main
objective of making products,
equipment, and raw material flow easier
throughout processes to maximize
profits.
 Logistics resources
SOFT RESOURCES CAPABILITIES
1. Logistics information5. customer service
2. Logistics knowledge capability
HARD RESOURCES 6. resource
3. logistics integration
infrastructure capability.
4. location
 Role of Logistics
• It is important to recognize the importance of a
dynamic balance between the minute details and the
main elements involved in a product.
• The Role of Logistics is to maintain that balance.
• Once the firm realizes the importance of logistics it is
necessary that the firm make full and efficient use of
logistics.
• The first step is to create a buyer value for the
customer and a strategic value for the firm.
• The customer is the most important asset for a company.
• He drives the entire supply chain including manufacturing,
marketing and logistics.
• Hence it is important for a firm to have a clear
understanding of what the customer demands and to keep
up to the customers expectations.
• Once a company has a clear understanding of its
customer’s requirements it must device a strategy on how
to use logistics to achieve it.
• This means that the company has to have a clear
understanding or assessment of company’s strategic
direction.
 Logistics in Visioning
This includes the systematic development of an organizational
consensus regarding the key inputs to the logistics planning process
as well as identification of the potential alternative logistics
approaches. This is an important step for the following reasons:

1. Helps to define a strategic direction to the company and also to

get a clear understanding the role of logistics in it.
2. Get a clear idea of the requirements of the various segments of
customers.
3. Have a look at the various factors that would affect the strategy
of the company.
4. Define alternative strategies and also the scope of the planning
effort.
 Logistics in Strategic
analysis
This involves taking a look at the various
components involved in the process and
selecting the best logistics process among the
alternatives. These components, which are to
be reviewed, are revealed during he first step.
This may include revamping the entire process
to assessing how a single component can be
used more effectively.
 Logistics in Planning
This involves the assembling of a plan
that outlines the mission and goals for the
logistics function and the programs and
activities to achieve these goals. Logistics
planning is an iterative process. The
plans have to be redefined every year to
improve the quality of performance.
 Logistics in Managing
change
This involves effective management to
implement enhanced ways of conducting
business. The management should
keeping changing the plans in
accordance with the change in the
market and also coach the organization
to effectively embrace this change.
 Current Logistics Related
Issue
• 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 today’s
market.
 1. EXTERNAL
1. Globalization
2. Technology
3. Workforce 2000
4. Challenging nature of the work force
5. Environmental concerns
 2. INTERNAL
1. Customer service and quality
2. Third party networks
3. Supply chain management
4. Changes in management and
organization style
 Listed are some of the
steps that could be
followed to mitigate the
above mentioned issues:
 1. PERFORMANCE
1. Better service for customers
2. Improved productivity
3. Assess just in time and quick
response needs
 2. System structure
1. Better relationship with vendors,
customers and third parties to more
effectively manage the supply chain
2. Better relationship within and across
the organization
 Technology integration
1. Better information systems that
connect functions and organizations
2. Combine information and material
handling systems for increased
efficiency and effectiveness.
Objectives of Logistics
Management
Minimize Manufacturing Costs
• Logistics management can have a direct impact on manufacturing costs.
For instance, delay in the pickup or delivery of raw materials can delay
production. As a result, it shoots up the manufacturing costs.

• Efficient logistics management improves material handling and fastens

transportation.

• It also increases its safety, which in turn reduces the shipping costs of the
business. For example, a clear transportation plan with a provision for
alternative routes will increase the efficiency of delivery. Hence, a well-
planned logistics management process can maximize business profits.
 Efficient Flow of Operations
• Logistics management enables a smooth flow of manufacturing
processes. It ensures timely delivery and optimum utilization of
raw materials. To achieve this, businesses need to optimize
communications with other departments.

• Logistics management allows a clear flow of information from

one department to another. This is done with solid planning
and constant review of the plan. The smooth process flow
makes the entire operations efficient. An efficient logistics
strategy streamlines a complex network of internal and external
processes.
 Better Communication Flow
• Logistics management engages with many internal business
functions and external trading partners. Other departments rely
on logistics to get their raw materials or transport their finished
goods on time. Also, the logistics staff needs to coordinate with
suppliers, vendors, and customers to pick up and deliver goods.

• With multiple parties involved, it is challenging to establish a clear

communication network. Even one miscommunication can lead to
a loss of considerable time, money, and resources. Hence, a
seamless communication flow is a crucial objective of logistics
management.
 Provides Competitive Edge
• The primary goal of logistics management is to provide better customer service.
Logistics management aims to eliminate processing errors by establishing a
streamlined process flow. Process errors occur due to inefficiencies or
discrepancies in the procedure. A good logistics strategy will account for all the
loopholes in the process and device measures to address them. Thus, it
minimizes process errors. For instance, if items are placed haphazardly in the
warehouse, finding an item at the time of delivery would be a nightmare.
However, if the shelves in warehouses are categorized according to different
items, retrieving items would become easy.

• Also, it focuses on pacing up the delivery process. Quality processes and quick
service would ensure customers are happy. These measures increase sales,
which automatically gives businesses a competitive edge over competitors.
Better Inventory Management
• Inventory management is an essential component of logistics
management. Inventory management has a direct impact on
various business functions. These include financial
management, production management, and customer service
management.

• An efficient logistics solution also makes the inventory

management of the company effective. Because inventory is an
integral part of the bigger picture of logistics management. One
of the critical functions of logistics is to keep the correct levels of
stock.
 Logistics Management
Solution
• As you now know, logistics management is a very vast and complicated
process. Hence, businesses often use simulation and automation software
applications to ease the difficulty of operations. These applications improve
the efficiency and decrease the time consumption of the processes.

• Logistics management automation complements other business operations

systems. Automation reduces human errors and increases staff efficiency.
For example, a Logistics Mobility solution will include barcode scanning
technology, which will help count your stock correctly in real-time. You can
access updated information and track the status of inventory to make
informed decisions. Adopting technology is the only way you can simplify
and optimize your logistics operations.
 benefits of logistics mobility
solution
1. Reduced human interference
2. Uninterrupted information flow
3. Automatic and real-time inventory updates
4. Improved accuracy
5. Reduced delivery delays
6. Easy stock adjustments
7. Remote management of multiple warehouses
 Thanks for listening!
• https://uh.edu/~lcr3600/simulation/logisti
cs.html
• https://www.to-increase.com/business-pr
oductivity/blog/what-is-logistics-manage
ment
• https://www.sciencedirect.com/topics/
engineering/logistics-management
 MGNT 7 Summer
Examination
1. How does Logistics Management help
the queuing (long lines) in the
enrollment processes of CMI?
2. (From a selected company) List down
challenges faced by the company in
material management and suggest
ways how to improve its processes.