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Unit 1: Introduction to Logistics Management - Coggle Diagram
Unit 1: Introduction to Logistics Management
Logistics placement within the supply chain
Difference between logs and Spch management
Logistics management is focused on the delivery and distribution of products and services, where they are most needed and desired.
Spch Management has all the costs, time, transport, storage and packaging, that may be associated with the various stages of the process of conversion in order to apply a finisged product
Use of Logistics and spch management
both are the foundation of a worlds globes economies
Facilitate trade, movement, of peoples goods and services
connects natural resources with production and ensures the best delivery
Spatial and temporal seperation between location of natural resource for production.
Supply Management:
the process integration of different business activites in order to convert raw materials into the finished products and to convey the end users
Logistics management;
is the part of the spch mngmnt that plans, implements and controls the efficient and effective, forward and reverse flow and the storage of goods, service and related information between the point of orgin and point of consumption, in order to meet customer requirements
7 Key driving the forces
Empowered consumer
:
customer services is more important recently
Informed customers have a lower tolerance for poor quality in products and services
Placing importance on the customer service in the spch and logs creating a major field of study and focus
Powershift in the spch
:
large retailers are demanding and commanding
focus on distribution cost and their impact on everyday costs
Change in logs and spch strats resulted from shifts in the balance of economic power
Product proliferation
:
Greater variety of products because of
competition
Technology
Customer demands
Globalization
:
increase in international trade
Trade barriers are disappearing
Global network sourcing, manufacturing, marketing and distribution
Technology
:
effecient information technologies, makes information available in real-time facilitate seamless exchange of information
Warehouse Tech changed the computer devices to the forklifts
perform complex numerical analysis in real time, changing planning in the Spch
Advanced Transport
:
SA transport cost is high when compared to other countries due to
Unique challenges for a small country
Industrial heartland of the coast
Significant breakdown, and challenges between types of transport
Covid/ RusUKR
Sustainability
12 business Logistics activities
Site selection and Design facilities
,
Concerns decision on the type, layout, location, numbers and capacity of facilities pertaining the site selection
Procurement
,
plans, implements and controls the effecient and effective aquistion of all raw material, semi-finished goods, finished goods services and info to support the core operations and ancilliary activities of the org
Demand forcasting
,
the process of determining the amount of product and related information that customers will require in the future
Warehouse Management
comprises the activities relating management of space to hold or maintain inventory
Packaging
, Art and tech of enclosing protecting goods, for transportation handling and storage, sales delivery and promotion for use
Inventory Management
,
planning implement and controlling, inventory availability to satisfy demand created and manufacturing and marketing
Logistics communication
,
Successful logs requires the effective management of info and communication and systems
Order processing
,
Comprising those activities associated with fulfilling consumers
The mission of the order details to the sales section
Verfication of the customers credit worthiness
Transmission
Material Handling
,
Concerned with the off-road movement or flow of raw materials, semi-finished goods at the facilities premises
Transport
,
Transport system is indispensable in determining whether customers receive good as when required
Logistical decisions,
Strategic level;
planning aspect, has a long-lasting effect on the business and as the data is imprecise and often incomplete often based on aggregated data
Tactical level
; implementation, decisions are updated monthly and yearly, often based on disaggregated data
Operational level
; execution and control, refers to the day-to-day decisions, customarily based on very detailed data
pg 14, product, and supply chain. and value chain\
Macro economics
Perspective
:
The economic competitiveness of a
country
is largely determined by logistics infrastructure capability and efficiency and the effectiveness of business logs system.
Impacts:
Competitiveness = Price + Customer service
Interest rates, rate of inflation, productivity, energy costs, product and service availability
Standard of Living
Mitigation Factors
to high logistical cost in SA:
Inefficiencies(Macro + Micro)
Lack of adequate rail capacity and efficiency
Port congestion
Border post delay
Geographic Positioning
High transport costs
Security Problems
High cost of Financing
Skill shortage of Logistics Profession
Logistics Analysis
logistics is a series of process, a process for each step, the focus of logistics is the intergrated and coordinated management of reach the lowest total cost rather than the a lower cost in a specific process or point
Operations research
is a practice-oriented numeric discipline with a systematic and scientific approach to finding the optimal solution to problem,
a methodical and numeric process to find the best solution
Analytical toolkit
, 8 important instruments in this analytical toolkit:
Forecasting
Analysis with simulation
Rational decision making
Facility Location
Route planning
Inventory control
Scheduling(machines, production, vehicles, crews and projects)
Application of queuing theory
Competencies
that the org should possess,
Making rational decisions
Forecasting
Scheduling
Determining routes for vehicles
Controlling inventory levels
Techniques
,
to achieve competencies:
Linear programming
Integer programming
Feasibility analysis
Transportation Modeling
Deterministic and probabilistic inventory modeling
System analysis
- is the dynamic methodological goal driven, decision-making process that allows complex operations to be considered successfully executed.
Steps in the system analysis,
Problem identification
System modeling
Generating alternative solutions
Evaluation
System selection
Implementation
Monitor and Review