LESSON 5 (9)

Logistics

refers to the process of planning, implementing and

controlling the efficient flow and storage of goods,

services and related information from the point of origin to

point of consumption.

It involves all activities such as transportation,

inventory management, warehousing,

packaging and often involves coordination with

suppliers, manufacturers, distributors and retailers.
is the function responsible for all aspects of the

movement and storage of materials on their journey from

original suppliers through to final customers.

Service Benefits

Almost any level of logistical service can be achieved if a

firm is willing to commit the required resources.

For example, a dedicated inventory can be maintained in

close geographical proximity to a major customer. A fleet of

trucks can be held in a constant state of delivery readiness.

Responsiveness

satisfy customer requirements in a timely manner

Variance reduction

elimination of operational disruptions

Inventory reduction

control asset commitment and turn velocity

Shipment consolidation

effort to reduce transportation cost

Quality

continuous quality improvement

Life cycle support

requires a cradle-to-cradle logistics

Product Flow

– is the smooth flow of an

item from the supplier of raw materials/PM

to the inbound warehouse of the

manufacturing firm.