What is the definition of logistics?
Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements
What is the mission of logistics?
The mission of logistics is to get the right goods or services to the right place, at the right time, and in the desired condition, while making the greatest contribution to the firm
Give two definitions of supply chain.
Two Definitions:
- Starting with unprocessed raw materials and ending with the final customer using the finished goods, the supply chain links many companies together.
- The material and informational interchanges in the logistical process stretching from acquisition of raw materials to delivery of finished products to the end user. All vendors, service providers and customers are links in the supply chain
Why do we need SCM?
- Improve operations (can be better in procurement, distributionand logistics)
- Increasing levels of outsourcing (make or buy)
- Increasing transportation costs
- Competitive pressures (life cycles, quick response,more/new/customization SKUs/products)
- Increasing globalization (longer and more challenging)
- Increasing importance of e-commerce (new way of doingbusiness)
- Complexity of supply chains (many uncertainties to manage:poor forecasts, late deliveries, poor quality, equipmentbreakdowns and cancelled or changed orders)
- Manage inventories (cost of and cost of shortages)
Benefits of SCM?
*Lower inventories
*Higher productivity
*Greater agility
*Shorter lead times
*Higher profits
*Greater customer loyalty
What are some Typical Tactical/Operational Issues
- Inventory/customer service trade-offs
- Production/distribution coordination
- Inventory/forecasting management
- Transportation consolidation
- Routing and scheduling
What mode of transport is more preferred internationally/domestically?
International transportation: Ocean and Air
Domestic transportation: Rail and Truck
Regular ways/modes of transport: truck, rail, air, water, pipeline
4 R’s of sustainability?
Reuse
Remanufacture
Recondition
Recycle
What criteria can we use to assess
modes of transport?
flexibility, reliability, journey duration or security
