Logistics Management

5800 Words24 Pages
MBA 4.2: LOGISTICS MANAGEMENT Module 1 Introduction to Logistics and its interface with production and Marketing; Measures of Logistics; Physical distribution and logistics. Introduction to Logistics • When total supply chain system is integrated over a firm, it is known as logistics • It is an integrated effort aimed at helping customer value at a lower cost. • Without logistical support, marketing and manufacturing departments cannot accomplish product in timely or fresh manner. • The value of logistics is evaluated when the inventory is correctly positioned to facilitate sale. It is very costly to create a logistical value. • A firm gains competitive advantage by providing customer with superior service through quality logistics. •…show more content…
Components In order to achieve logistics operational objectives, while achieving its mission, a large no. of individual activities are required to perform, which constitutes functions of logistics management system. Different components constitute differently in the achievement of logistics mission and objectives which can be grouped in 3 broad categories. a. Generic components b. Primary components c. Supportive components Generic Components Primary Components Supportive Components Components of a typical logistical system Purchasing, packaging, inventory control, material handling, order processing, customer service, demand forecasting, distribution communications, parts & service support, plant or warehouse selection (location analysis), return goods handling, salvage & scrap disposal, traffic and transportation, and warehousing and storage. Logistics Management Definition Logistical management includes the design and administration of system to control the flow of material, WIP and finished inventory to support business unit strategy. Overall goal of logistics is to achieve a targeted level of customer service at the lowest possible total cost. LOGISTICAL TOTAL COST – includes the cost of physical distribution system and cost of logistical supply chain PHYSICAL DISTRIBUTION SYSTEM cost
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