Core Logistics Operations and Activities Notes (copy)

Logistics Operations

Functions designed to ensure the seamless flow, storage, and management of goods, services, and information across the supply chain.

Core Objectives of Logistics Management

Providing time and place utility, minimizing operational costs, optimizing inventory, and maximizing customer satisfaction.

Customer Service in Logistics

Measures logistics system performance in providing time and place utility for products or services to enhance customer satisfaction.

Demand Forecasting

Predicts future operational and market needs to align inventory and resources accordingly.

Types of Demand Forecasting

Includes Marketing Forecasts, which predict customer demand based on market factors, and Manufacturing Forecasts, which determine production requirements.

Inventory Control

The process of managing stock to ensure accurate availability while minimizing costs.

Logistics Communications

Serves as the critical link connecting the internal logistics framework to external customers through accurate and timely information.

Materials Handling

Covers all aspects of moving raw materials, work-in-process, and finished goods within plants and warehouses.

Order Processing

Acts as the operational trigger for logistics activities aimed at meeting customer demand.

Parts and Service Support

Manages after-sales service operations to sustain product lifecycle performance.

Site Selection Factors

Factors influencing facility location decisions include proximity to markets, transportation access, resource availability, and cost advantages.

Procurement Process

The end-to-end process of acquiring and managing goods and services necessary for operations.

Logistics Packaging

A system designed to prepare goods for transit, covering containment, protection, unitization, apportionment, communication, and convenience.

Reverse Logistics

Covers the backward movement of goods from consumption back to producers for purposes like repairs or changing customer preferences.

Traffic and Transportation

Involves the physical movement of goods from points of origin to points of consumption and is the largest cost component in logistics.

Warehousing

Creates time utility by storing surplus goods until required for processing or consumption.

Core Functions of Warehousing

Includes storage, risk bearing, protection, consolidation, breaking the bulk, stockpiling, value-added services, price stabilization, processing, grading and branding.