Agribusiness logistics agec 632
This presentation is the property of its rightful owner.
Sponsored Links
1 / 14

AGRIBUSINESS LOGISTICS AGEC 632 PowerPoint PPT Presentation


  • 85 Views
  • Uploaded on
  • Presentation posted in: General

AGRIBUSINESS LOGISTICS AGEC 632. INTRODUCTION TO AGRIBUSINESS LOGISTICS AUGUST 29, 2002. BUSINESS LOGISTICS DEFINED.

Download Presentation

AGRIBUSINESS LOGISTICS AGEC 632

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Agribusiness logistics agec 632

AGRIBUSINESS LOGISTICSAGEC 632

INTRODUCTION TO AGRIBUSINESS LOGISTICS

AUGUST 29, 2002


Business logistics defined

BUSINESS LOGISTICS DEFINED

  • Business logistics is the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.

  • Note: customer requirements

    = customer service =customer satisfaction


Business logistics is

BUSINESS LOGISTICS IS

planning, implementing and controlling

flow and storage of

efficient, cost effective

raw materials,

in-process inventory

finished goods and

related information

Where?

Why?

from point of origin to point of consumption

to conform to customer requirements


Why the rise of logistics

WHY THE RISE OF LOGISTICS?

  • Centralized production separated from either input supply or consumer demand

    • Economies of scale and scope

    • Labor specialization, core competency

    • Rise of capital and information as inputs

    • Fixed Cost higher portion of total cost

  • Reduced cost of logistics functions

    • Transport

    • Warehousing

    • Communications

    • Information technology

    • Modern management techniques and optimization


Progression of business logistics

PROGRESSION OF BUSINESS LOGISTICS

  • Physical distribution 1920s

  • Functional management 1960s

    • Added materials management

  • Internal integration 1980s

    • Linking inflow of materials and outflow of goods and services—internal flow

  • External integration 1990s

    • Supply chain management

  • E-Commerce at “bricks and mortar firms”


Marketing and logistics

MARKETING

Allocate resources to the marketing mix to maximize long-run profitability

Four Ps of marketing

Product

Price

Promotion

Place

LOGISTICS

Minimize total cost given customer service objective

Concern is the infrastructure and policies to realize the marketing objective

Provide

value to the customer

strategic value to firm

MARKETING AND LOGISTICS


Three concepts of logistics

THREE CONCEPTS OF LOGISTICS

  • Total system concept


Supply chain

SUPPLY CHAIN

  • All activities necessary to provide a product or service to the customer

    • Supply chain goes beyond the firm to encompass all value-adding activities involved.

    • One can think of a supply chain as a value chain with all the activities involved--no longer confined to the activities of a firm


Agribusiness logistics agec 632

Raw Materials

Up Stream

Information Flow

Supply Chain

Down Stream

Consumer


Three concepts of logistics1

THREE CONCEPTS OF LOGISTICS

  • Total system concept

  • Total cost concept


Total cost approach total optimization

TOTAL COST APPROACH:total optimization

  • Transportation cost

  • Warehousing cost

  • Order processing cost

  • Lot quantity cost

  • Inventory carrying cost

Minimizing total cost!


Three concepts of logistics2

THREE CONCEPTS OF LOGISTICS

  • Total system concept

  • Total cost concept

  • Cost trade-offs


Cost trade off example

COST TRADE-OFF EXAMPLE


Logistics in food and agribusiness

LOGISTICS IN FOOD AND AGRIBUSINESS

  • Grain merchandising

  • IP grain handling

  • Supply chain management in poultry, livestock and meat

  • IT in food and agriculture

  • New business arrangements

    • Consolidation

    • Strategic alliances

    • New generation cooperatives

  • Food safety and Quality


  • Login