Page 54 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 2: Introduction to Logistic

a collaborative, automated, real-time event driven system is increased confidence that on Notes
any given day a customer who walks in to any one of the retailer’s stores will leave
satisfied.
Question
Analyse the case and write down the case facts.
Source: http://www.capgemini.com/m/en/tl/tl_18th_Annual_Trends_in_Logistics_and_
Transportation__Synchronization.pdf

2.7 Summary

 Logistics is that part of the supply chain process that plans, implements and controls the
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 the customer’s
requirements.

 Logistics is the designing and managing of a system in order to control the flow of
material throughout a corporation.
 Supply Chain Management is the systematic, strategic coordination of the traditional
business functions and the tactics across these business functions within a particular
company and across businesses within the supply chain, for the purposes of improving
the long-term performance of the individual companies and the supply chain as a whole.
 Logistics cost form an important part of the overall cost structure in any organization.
 A well-designed logistical effort must have high customer response and capability while
controlling operational variance and minimizing inventory commitment. Inventory has
limited value until it is positioned at the right time and at the right location to support
ownership transfer or value added creation.
 The first three functional areas of logistics – order processing, inventory, and transportation
– can be engineered into a variety of different operational arrangements.

 Logistics is viewed as the competency that links an enterprise with its customers and
suppliers.
 The operational management of logistics is concerned with movement and storage of
materials and finished products. Logistical operations start with the initial shipment of a
material or component part from a supplier and are finalized when a manufactured or
processed product is delivered to a customer.
 The potential for logistical services to favourably impact customers is directly related to
operating system design.
 Synchronization is the ability to coordinate, organize and manage end-to-end supply
chain flows – products, services, information, and financials – in such a way that the
supply chain functions as a single entity.

2.8 Keywords

Inbound Logistics: It means the movement of materials received from suppliers.
Information Flow: It identifies specific locations within a logistical system that have requirements.
Information also integrates the three operating areas.

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