Introduction to Logistics

Hello students, welcome to the lecture on

introduction

to

logistics

. After this conference we will be able to learn the following objectives. Describe the

logistics

concern step. Understand the objectives of logistics. Define logistics activities. Explain the single window system. Define transportation. Explain storage management. first let's know the meaning of logistics logistics is concerned with getting products and services to where they are needed and when they are designed it is difficult to achieve any marketing or manufacturing without logistical support the mission of logistics is to provide a means by which satisfaction is achieved of the client achieved the concept of logistics has been transferred to the business to move launch and supply of inputs and outputs meaning of logistics the operational responsibility of logistics is a geographical repositioning of raw materials work in process and finishing inventories were required at the lowest possible cost The concept of logistics involves the integration of information transportation inventory storage material handling handling and packaging for a definition of logistics the art of moving accommodation and supply of troops supplies and equipment is logistics the formal definition of the word logistics as perceived by the Council of Logistics management is a process of planning, implementing and controlling the efficient and effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to satisfy customer needs.

Logistics has been practiced for years since organized activity began. To me, logistics is all that everyone is involved in. in logistics, whether they know it or not, the room you are sitting in right now yes, look around you definition of logistics function the logistics function is concerned with getting products and services to where they are needed and when they are needed logistics is a strategic management process for the movement of procurement, movement and storage of materials, parts and finished inventory for the organization and its marketing channels in accordance with the Logistics Management Council. Logistics is a process of planning, implementing and controlling the efficient and effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to confirm customer requirements logistics information logistics information I as An Information Management section deals with the flow of information within an organizational unit or between any number of organizations that in turn form a value creation network.

Logistics management includes the design and administration of a system to control material flow, work in process, and finished inventory to support the business unit's strategy. Logistics is the design and management of a system to control the flow of material throughout an entire corporation. This is a very important process important part of an international company due to geographical barriers the concept of logistics is the following logistics equals inbound logistics plus materials management plus physical distribution logistics equals inbound logistics plus materials management plus physical distribution Logistics is the management of the flow of resources, not just goods, between the point of origin and the point of destination in order to meet the requirements of customers or the Corporation.

The important phases of logistics movement management are materials management materials management is a timely movement of raw materials, parts and supplies, physical distribution, physical distribution is the movement of finished products from the company to customers. Supply chain management is somewhat larger than logistics and links logistics more directly within the total communication network of users and with the company's engineering staff. It includes manufacturers and suppliers, but also transporters, warehouses, retailers and the customers themselves. objective of logistics logistics is the management of the flow of resources, not just goods between the point of origin and the point of destination in order to meet the requirements of customers or the corporation, let's talk about some objectives of operational objectives of logistics in terms of logistics system design.

Management Each company must simultaneously achieve at least six different personal objectives. These operational objectives are the primary determination of logistics performance. Quick response. Quick response refers to a company's ability to satisfy customer service requirements in a timely manner. the information has increased the ability to postpone logistics operation to the latest possible time and then achieve rapid delivery of the required inventory minimum variation any variation is expected even if this decreases system performance the variation may result from any logistics operation expectation the potential reduction of variation relates to internal and external operation operational areas of a logistics system is subject to possible variants operational areas of a logistics system are subject to possible variants the traditional solution to accommodate variants was to establish a safety stock inventory or use a high cost premium Minimum transportation inventory the objective is to reduce inventory deployment to the lowest level consistent with customer service objectives to achieve the lowest total logistics cost to achieve the minimum inventory objective the logistics system design should control commitment and turnover for the entire company, not just for each business location, inventories can provide a better return on investment when resulting in economies or scale in manufacturing or procurement the goal is to reduce and manage inventory at the lowest possible level while achieving the desired operational objectives movement consolidation The cost of transportation is directly related to the type of product, the size of the shipment and the distance, many logistics systems that have The premium service depends on shipments small at high speed.

Transportation As a general rule, the larger the total shipment and the longer the distance it is transported. The lower the transportation cost per unit this requires. Innovative programs to group small shipments for a consolidated movement. Such a program must be facilitated by working. agreement that transcends the general supply chain premium transportation usually has a high cost to reduce the cost of transportation it is desirable to achieve movement consolidation quality improvement Total Quality Management tqm has become an important commitment in all facets of industry logistics is a major part of tqm continuous development and maintenance Improving life cycle support the ultimate goal of logistics design is life cycle support few items are sold without some guarantee that the product will perform as advertised for A specific period life cycle support in modern terms means end-to-end logistics support.

The elements of logistics systems are transportation, warehousing, inventory management, tracking and utilization, and information and communication. The logistics system is made up of three main activities. Order processing. Inventory management and cargo transportation. Order processing. Order processing is strictly related to information flows in the logistics system and includes a series of operations. receive the order register the order complete the order and assemble all orders for transportation Etc Inventory management Inventory management is a key issue in the planning and operation of the logistics system inventories are stacks of products waiting to be manufactured, transported or sold The objective of inventory management is to determine stock levels to minimize total operating cost while meeting customer service requirements.

In practice, a good inventory management policy must take into account five issues. The relative importance of customers. The economic importance of different products. Transportation policies, the flexibility of the production process and competition policies. Transport Fred Transport plays a key role in today's economies, allowing production and consumption to take place in places that are several hundred or thousands of kilometers away from each other. The development of logistics has become a more critical issue for many organizations due to the globalization of In the industry, this has affected logistics in two main ways: first, the growth of world-class competitors from other nations has caused organizations look for new ways to differentiate the organization and product offerings;

Second, as organizations increasingly buy and sell abroad, the supply chain between organizations becomes no longer more expensive and the role of logistics in the economy more complex. Logistics plays a key role in the economy in two important ways because logistics is one of the main expenses of companies. Logistics spending represents around 15 to 20% of GDP. Logistical and competitive performance. It is a process of planning, implementing and controlling the efficient and effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customer requirements. Primary activities.

Inbound logistics activities associated with the receipt and dissemination of inputs to the market. Product operation activity associated with the transformation of the input into the final product. Outbound logistics activity associated with the picking, storage, and physical distribution of product to buyers. At this point, why not take a look at this video which gives you a calm overview of the logistics. You can maximize the benefits for your company by fully utilizing logistics management Educate your company staff or students in your business class about supply chains and logistics The job roles listed on your screen indicate the range of people who can benefit from the logistics learning that your screen shows Three flows influence the success of your business in your markets and against national and international competitors.

Improved flows enable greater business success and increase profitability. Examples of processes to improve flows in your business are order-to-delivery time, inventory availability, accounts receivable, and courier. using social media Logistics is the management of flows displayed on your screen, these flows consist of materials, products and services called items along with each item. Associated flows of money and information, in addition to internal flows, also occur between your immediate suppliers, your business, and your immediate customers. Effective logistics links and manages flows, so logistics is what we do in a business. Logistics is more than words written on the side of many trucks.

Trucking and transportation are just one part of logistics. The goal of logistics is to provide item availability if the correct item is delivered. not available to customers in the time frame required design, operations, and sales efforts are worthless. Logistics, therefore, requires participation in many functions. A supply chain describes the flows between source suppliers and end users. This is an extended supply chain displayed on your screen. The journey begins as materials. at the farm or mine called source suppliers materials move through converters and manufacturers to your business then your items move as finished products to customers finally they move to customers customers this could be you the consumer a supply chain are the links within and between organizations to provide added value for end users and the lowest total cost for suppliers your company is unlikely to have relationships across all links in an extended supply chain supply chains is the term used to describe all the flows of items, your money and your information, into and out of your business, the diagram shown on your screen is repeated many times, this creates a complex network of nodes and links.

Your business's supply network is highlighted on your screen. It reflects your immediate business relationships. It is contained within their main supply chains. Its supply network is. between tier one suppliers and tier 1 customers plus their contracted logistics service providers called LSPs your screen identifies three types of LSP success for your supply network is achieved through collaboration C at each critical node and collaboration link in your supply network requires cooperation and coordination Cooperation is people working together across functions and businesses, theCoordination is for people to access, share and act on reliable information that uses one version of the truth to achieve collaboration, requires that performance measures are aligned with this objective, remember that we behave as we are measured, the Scope of collaboration may be affected by commercial factors in your supply network, these relate to energy use and dependency and the experience of uncertainty and risk, uncertainty can be reduced in your supply network through coordination of information, as indicated on your screen, the implementation of global standards allows data to be collected and transmitted effectively by adhering to global standards in your supply network greater confidence in the base data is achieved the organization owned by members Global Standards 1 known as gs1 provides global standards has a member registration structure in your country in short to make your supply network more effective requires flow management this is logistics Logistics is based on your supply chains and your supply network to improve your supply network work towards collaboration within your company and your supply network the single window system is a trade facilitation idea as such the implementation of a single window system enables cross-border international trade Traders may file regulatory documents at a single location or entity.

Common definition of the term ACC. The single window is a service that allows parties involved in trade and transportation to launch standardized information and documents with a single point of entry to meet all requirements related to import, export and transit. regulatory requirements if the information is electronic, individual data elements should only be submitted once it is recognized that the concept is promoted by several global organizations dealing with trade facilitation, including the United Nations Economic Commission for Europe and suCenter for Trade Facilitation and Electronic Commerce a or c f a World Customs Organization wco s p limited of the United Kingdom and the Association of Southeast Asian Nations Since transportation is one of the most visible elements of logistics operations, the role of transportation in the national economy is very crucial every The commercial enterprise, regardless of what it produces or distributes, requires a movement of goods from one point to another and is therefore involved in transportation.

The purpose of the transportation function is to serve as a connecting link between spatially separated units within a company's own organization, such as between plants and warehouses and between units of companies and units of other companies and individuals, the dimension Spatial refers to the geographical relationship and reflects the combination of companies with respect to their markets of material sources and competitors plus a dispersed relationship of the latter with their sources and markets Utility of transportation the word utility means utility or ability to give satisfaction Utility of place exists when the goods are in a place where they can be consumed transportation is an essential part of the total production process that cannot be overlooked the transition in production and marketing in production The transportation function is carried out by the executives of the materials management department or the general administration department or the general department.

The characteristic model of transportation, the transportation mod used in domestic and international logistics and supply chain management, can be grouped into five models, they are about railings, highways, water pipelines and aerial storage. It has become an important part of the company's logistics systems that stores products at and between points of origin and destination and provides management with information on the status, disposition and condition of inventories. These logistics inventories can be classified into three groups: physical supply, components and raw material parts. physical distribution finished products Goods in process constitute a small portion of total inventories storage function storage plays a critical role in the logistics system providing the desired customer service levels in combination with other logistics activities, these can be classified into three basic functions material movement material movement management The handling function is represented by four main activities: receiving and storing, this activity includes unloading goods from transport equipment, as well as verifying their count and specifications with order records, inspect them for damage and update warehouse inventory records, finally the physical movements of products to storage areas.

The location for specialized services, such as consolidation areas and outbound shipping locations, is known as pass-through activities. Order filling or order preparation. This is a fundamental movement activity in warehousing and involves identifying and retrieving product storage areas according to customer orders. Order filling also includes the accumulation of regrouping and packaging products into the customer's desired assortments, and generating delivery notes or delivery lists can also take place at this point. In this process, the receipt of products from one source is occasionally consolidated with products from other sources with the same destination and immediately shipped to customers. Without moving to long-term storage, a pure cross-docking operation only organizes the transfer of materials from the inbound receiving dock to the outbound dock, eliminating non-value-adding activities such as stockpiling and order shipping, This activity involves physically moving and loading assembly orders into Transportation Clerks verify the content and sequence of orders and update inventory records.

It may also include sorting and packaging products for specific customers. They are securing and packing the items to prevent them from being damaged. Inventory storage. Transfer of information. Let's now discuss the types of private warehouse. These are the warehouses owned by the company for the exclusive use of storing the products of the manufacturer or marketed by them for subsequent sale in the market Advantages Better control over the storage and movement of the products Less chances of errors in the handling of the products Customized design and flexibility in operation Profitable and economical public warehouses: These other warehouses are contracted to other agencies to store the goods for a specific period of time on an agreement basis.

Example: Advantageous Central Warehousing Corporation (CWC) usually located near ports and market and this has fixed periodic operating cost, high flexibility and location. Changes are possible without permanent liability adjustment depending on the season. Contract warehouses. It is a specialized form of public warehouses managed by third-party logistics IC companies to provide total warehousing services by paying agricultural charges. Great flexibility advantageous in changing location without permanent liability adjustment. seasonal availability of expert labor and dedicated resources possible information monitoring physical distribution managers continually need up-to-date information on inventory transportation and storage, for example with respect to inventory information on the current position of stock at each location, future commitment and replenishment capabilities and are constantly required Now, at the end, let's summarize what we have learned in this lecture.

Logistics process plans implement controls on the storage flow of goods, services, and related information between the point of origin and the point of consumption to satisfy customer requirements. Logistics involves interaction with multiple departments. within a company, as well as now also between business partner organizations and the processing of customer orders begins with the receipt of an order from a customer, it can be obtained by a salesperson over the telephone or arrived by Ma. Logistics plays a role key in the economy in two Significantly, the first logistics is one of the main expenses for commercial order processing, which includes receiving the order, registering the order, fulfilling the order and assembling all those orders for transportation.