Overview 1 Introduction : origins of logistics 2 Definitions 3 Competing through use of good logistics 4 Competitive advantage 5 The ‘logistics mix’ 6 International logistics:problems /solutions 7 Supply chain management/ M.R.P. 8 Technology / new developments 9 Remember to research distribution ‘ structure’ in the overseas market [ wholesalers and retailers and how they do business]
1Introduction Origins of logistics : 1 trenches W.W.1 , movement of munitions 2early mathematics became foundation for O.R. and also for [eventual] software. 3 Logistics management is the natural accompanyment to channels / modes of entry Logistics is the process of strategically managing the acquisition, movement and storage of materials, parts and finished inventory from suppliers through the organisation and its marketing channels in such a way that current and future profitability is maximised through cost effective fulfilment of orders
2Definitions 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’ Martin Christopher ‘The most profitable competitor in any industry sector tends to be the lowest cost producer or the supplier providing a product with the greatest differentiated perceived values’ Martin Christopher ‘ Logistics is the term commonly used to describe the complete product flow from raw materials source to final point of sale ‘ Gattorna
3aCompeting through use of good logistics Logistics has the potential to assist the organisation in the achievement of both cost/ productivity improvement as compared to competitors and also value advantage as well .
3bCompeting through use of good logistics[ continued] • Systems perspective: this perspective sees the ‘big picture’ .Only by looking at the complete logistical system can inefficiencies and their knock -on effect be identified. • ‘ Logistics recognises the interconnections between the component elements of the material flow system and encourages comprehensive systems thinking rather than functional ‘tunnel vision’. The mission of logistics is to plan and coordinate these activities in such a way that end markets are served in the most cost effective manner and the desired levels of service and quality are achieved.’
6 International logistics:problems/ solutions Special concerns about : 1 documentation / Gvt. regulations 2 inventory management overseas can be expensive 3 Country -specific customer service needs 4 Distance effects/ deterioration 5 Currency effects Response Make regular audits/ productivity Take’ total systems’ perspective Use demand forecasting / M.R.P. Form partnership with suppliers Constantly improve warehousing / transportation
7 Supply chain management: M.R.P.(1 and 2). Defn: supply chain management is the process whereby a series of value- adding activities connect a company’s supply side with its demand side. N. Slack These activities span a wide spectrum from the suppliers side to the end user.High standards in all aspects make the difference. ----------------------------------------------------------- Material requirements planning M.R.P1. :this is a process which enables a company to calculate how many materials of particular type are required and when they are required N. Slack N.B. MRP2 this integrates processes outside M.R.P1 This now includes control of cash, personnel ,equipment and inventory [ see overleaf]