Unit 8: Logistic

logistics

• the business activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

• ensure that the right products reach the right place at the right time

• logistics include several activities:

-procurement: acquire necessary raw materials and components

-production: transform raw materials into finished goods

-warehousing: stroge goods before and after production

-transportation: move goods from one location to another

-distribution: deliver finished goods to customers

-customer service: handle customer inquiries and resolve issue

• effective logistics allow businesses to:

-reduce cost: optimize transportation route, minimize inventory levels, streamline

-improve efficiency: smooth logistics operations → ensure goods are delivered on time and in desired conditions → increased customer satisfaction, improve productivity

-enhance customer service: fast+reliable → customer satisfaction: build strong customer relationships

-gain a competitive advantage: companies with efficient logistics: respond quickly to market changes, adpat to new demands, offer competitive pricing → which their competitors do not offer or cannot replicate

• logistics: push strategy + pull strategy

• push strategy:

-focus on producing and distributing goods based on forecasted demand → pushing products through the supply chain regardless of actual customer demand

• pull strategy:

-rely on actual customer demand to drive production and distribution → pulling products through the supply chain as orders are placed → minimizing inventories+reducing waste

inbound logistic

• the area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers and producers

• deal with the flow of materials and resources into the organisation, from suppliers to production facility: sourcing, procurement, transportation, warehousing of raw materials

materials handling

• the movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations

outbound logistics

• the area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers

• focus on the flow of finished goods out of the organisation, from the production facility to customers: packaging, warehousing, order fulfillment and transportation

reverse logistics

• the area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling

some most popular jobs

• purchasing manager

• warehouse manager

• freight forwarder

• shipping operations manager

purchasing manager

• indentify the company’s purchasing needs

• fins and evaluates suppliers

• negotiate prices and contracts

• ensure materials are purchased at the right price, quality and time

warehouse manager

• organize the storage of goods

• monitor inventory levels

• supervise warehouse employees

• ensure orders are picked, packed, and dispatched correctly

shipping operations manager

• plan delivery routes and transportation schedules

• coordinate drivers, vehicles, and shipping activities

• monitor shipments and delivery progress

• control transportation costs and ensure timely delivery

freight forwarder

• arrange transportation by sea, air, road or trail

• book cargo space with carriers

• prepare and coordinate shipping documents

• handle customs clearance procedures or work with customs brokers

• track shipments and coordinate international delivery