Logistics

LOGISTICS

Logistics management is the supply chain management processes related to the planning, execution and control of the flow and storage of goods and services, as well as related information, from the point of origin to the point of consumption, to meet customer needs (CSCMP, 2008)

Concept

Evolution

1940s-1950s

Workplace Logistics

1960s

Facility Logistics

1970s

Corporate Logistics

1980s

Supply Chain Logistics

Next-Generation Logistics

1990s

Global Logistics

*Flow of material at a single workstation

*Improve work of an individual on a machine or an assembly line. (Frazelle, 2002)

*Flow of material between workstations of a facility.

*Its origin was from mass production and assembly lines. (Frazelle, 2002)

*Flow of material and information between the facilities and processes of a corporation. *Customer Service Policy. *Reduction of logistics costs. (Frazelle,2002)

*Flow of material, information,

and money between corporations. (Frazelle,2002)

*Flow of material, information, and

money between countries. (Frazelle,2002)

*Integrated supply chain management. *Reverse logistics development. *Green Logistics. (Pinzón,2005)

Logistics activities were grouped into

Physical Distribution:

Material handling, warehousing and transportation

Business Logistics:

Procurement, marketing

and customer service

Importance

Logistics generates value for a company's customers, suppliers and shareholders. As for clients, logistics seeks to satisfy their needs in terms of time and place. In addition, it integrates suppliers in the chain, improving relations with them and this leads to a reduction in total costs business that benefits companies owners. (Ballou, 2004)

Componets of Logistics System

Customer Response

Inventory Planning and Management

Supply Management

Transportation and Distribution Management

Warehouse Operations

Includes customer service and order processing. Customer demand is the input for all logistics activities. Meeting the needs of customers makes all logistics activities possible. (Frazelle,2002)

*Customer service policy design

*Customer satisfaction monitoring

*Order entry

*Order processing

*Invoicing and collections

Main activities

Its purpose is to determine and maintain inventory levels at the lowest possible cost and that it meets the requirements stipulated in the customer service policy. (Frazelle,2002)

Its objective is to minimize the total cost of inventory acquisition while maintaining the availability, response time and quality established in in customer service policy and inventory planning. (Frazelle, 2002)

Its objective is to connect the picking and delivery points meeting the response times of the customer service policy and limiting transportation to the lowest possible cost. Transportation scheme is developed after determining the collection points in the supply plan and the delivery points in the customer service policy. (Frazelle,2002)

Its objective is to ensure the continuous, timely and adequate supply of products to guarantee services on a constant basis while maintaining efficiency in the operations of a company. (Frazelle,2002)

Main activities

Main activities

Main activities

Main activities

*Forecasting

*Order quantity engineering

*Service level optimization

*Replenishment planning

*Inventory deployment

*Supplier service policy design *Sourcing *Supplier integration *Purchase order processing *Buying and payment

*Network design and optimization

*Shipment management

*Fleet and container management

*Carrier management

*Freight management

*Receiving

*Putaway

*Storage

*Order picking

*Shipping

Bibliography:

Ballou, R. (2005). Logística. Administración de la Cadena de Suministros. México, Pearson Education.

Pinzón, B. (2005). Logística. Presentación. Recuperado de http://hdl.handle.net/10596/5682

Frazelle, E. (2002). SUPPLY CHAIN STRATEGY, The Logistics of Supply Chain Management. McGraw-Hill.