Page 55 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes Logistics: Logistics is the process of planning, implementing and controlling the efficient, effective
flow and storage of goods, services and related information from the point of origin to the point
of consumption for the purpose of conforming to the customer requirement.
Material Management: It means the movement of material and components inside a firm.
Materials Handling: Material Handling refers to activities, equipment, and procedures related
to the moving, storing, protecting and controlling of materials in a system.
Order Management: It includes understand various specifications and design order requirements
with each suppliers, which will help in identifying ways of reducing cost and also help in
reducing price structure.
Physical Distribution: It refers to movement of goods outward from the end of the assembly
line to the customer.
Physical Distribution: Physical distribution is the set of activities concerned with efficient
movement of finished goods from the end of the production operation to the consumer.

Procurement: It is concerned with purchasing and arranging inbound movement of materials,
parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses,
or retail stores.
Supply Chain Synchronization: It is the ability to coordinate, organize and manage end-to-end
supply chain flows – including products, services, information and financials – in such a way
that the supply chain functions as a single entity.
Supply-chain Management: Supply chain management (SCM) is the management of a network
of interconnected businesses involved in the provision of product and service packages required
by the end customers in a supply chain.
Synchronization: It 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.

Transportation: It is the operational area of logistics that geographically moves and positions
inventory.
Transshipment: It mainly involves controlling the express shipping costs, typically when a
company have an entire shipment sent on an express service level basis for which higher cost is
incurred.

Warehousing: A warehouse is a commercial building for storage of goods. Warehouses are used
by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.

2.9 Review Questions

1. Illustrate a common trade-off that occurs between the work areas of logistics.
2. Discuss and elaborate on the following statement: “The selection of a superior location
network can create substantial competitive advantage.”

3. Describe the logistics value proposition. Be specific regarding specific customer
accommodation and cost.
4. Describe the fundamental similarities and differences between procurement, manufacturing
support, and market distribution performance cycles as they relate to logistical control.
5. Discuss uncertainty as it relates to the overall logistical performance cycle.

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