Logistics management.

-
Logistics Management Definition Logistical management includes the design and administration of system to control the flow of material, WIP and finished inventory to support business unit strategy. Overall goal of logistics is to achieve a targeted level of customer service at the lowest possible total cost. LOGISTICAL TOTAL COST – includes the cost of physical distribution system and cost of logistical supply chain PHYSICAL DISTRIBUTION SYSTEM cost includes • Manufacturing • Wholesale • Inventory • Transportation • Administration LOGISTICAL SUPPLY CHAIN cost includes • Cost of inventory • Production cost • Service cost Logistical Integration Hierarchy Basic  Functions  Performance Cycle  competencies  strategic positioning (universal process) Basic work – consists of specific job essential to logistical performance. E.g., order pricing/ truck driving. It involves many people. Functional Areas – served as the organizational focus to perform and administer logistics work. E.g. Traffic dept  transportation. These are the area of logistics essential for operational excellence. The resources are to be integrated over function. It is a cross functional coordination. Performance cycle • Operational cycle for logistics execution • Provides operational structure for logistics integration • Linking basic work and function to complete order to delivery operation • Logistical temporal integration Logistical Competency It is a relative measurement of firm’s capability to provide competitively superior customer service at lower possible cost. It is achieved through • Alternative logistical capabilities • Emphasizing flexibility • Time based performance • Operational control • Postponement capabilities • Commitment o perfect service performance Strategic positioning It is the expectation concerning logistical competency directly depend upon firm’s strategic positioning. It focuses on; • Creating customer value for gaining or retaining loyal customers • To excel in one or more of core competencies (more resources and management attention is given) Importance of logistics • It creates value in terms of time and place to customer and supplies of a firm. • Significant costs. • Logistics customer service expectations are increasing through lesser error rates and high inventory turn over for finished goods. • Supply and distribution line are lengthening with greater complexity. • Logistics is more important to strategy • It adds customer value • Customers increasingly want quick, customized response. Activity mix of Logistics It refers to the activities that make up business logistics. It varies upon organizational structure, management opinion about supply chain, and importance of operational activities. Primary activities 1. Transportation a. Mode of transport service selection b. Freight consolidation c. Carrier routing d. Vehicle scheduling e. Equipment selection f. Claim processing g. Rate auditing 2. Inventory management a. RM and FM stocking policies b. Sales forecasting c. Product mix at stocking point d. Number, Size and location of stocking point e. JIT, push & pull strategies 3. Information flow and order processing a. Sales order inventory and interface procedures b. Order information transmitted methods c. Ordering rules Secondary activities 1. Warehousing a. Space determination b. Stock layout and spatial design c. Warehouse configuration d. Stock placement 2. Material handling a. Equipment selection b. Equipment replacement policies c. Order pricing procedures d. Stock storage and retrieval 3. Purchasing a. Supply source selection b. Timing c. Quantity 4. Packaging a. Package handling b. Storage c. Protection from loss and damage 5. Information maintenance a. Information collection b. Storage c. Manipulation d. Data/control procedures These support activities co-operate operations and production department to; • Specify aggregate quantities • Sequence and time of production output • Schedules supplies for production and operations

Comments

Post a Comment

Popular posts from this blog

The Apple's Brand Personality

-
Image
  Apple has a branding strategy that focuses on the emotions. The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; and power-to-the-people through technology. The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and about being a really humanistic company with a heartfelt connection with its customers. Apple Brand Equity and Apple's Customer Franchise The Apple brand is not just intimate with its customers, it's loved, and there is a real sense of community among users of its main product lines. The brand equity and customer franchise which Apple embodies is extremely strong.  The preference for Apple products amongst the "Mac community ", for instance, not only kept the company alive for much of the 90's (when from a rational economic perspective it looked like a dead duck) bu...
Read more

FACTORS RESTRICTING INTERNATIONALIZATION OF BUSINESS

-
Image
FACTORS RESTRICTING INTERNATIONALIZATION OF BUSINESS 1.Sovereign political entities Every country has a sovereign political entity. There are more restrictions imposed on them for importing and exporting the goods and services in order to safeguard their national interest. The traders in international marketing have to observe such restrictions. These restrictions include the following.  Imposition of Tariffs and Customs Duties These are levied both on import and export of goods and services in order to make them costly in the importing country and not to ban their entry in to the country completely.  Restrictions on quantities Quantity restrictions are imposed in order to restrict trade in some specific commodities. The main purpose of this restriction is the protection of home country from the competition of the foreign commodities.  Exchange control The government may not ban the entry of goods in the country, but the importer is not allowed to get the necessary foreign excha...
Read more

Disadvantages of Demat

-
Trading in securities may become uncontrolled in case of dematerialized securities. It is incumbent upon the capital market regulator to keep a close watch on the trading in dematerialized securities and see to it that trading does not act as a detriment to investors. For dematerialized securities, the role of key market players such as stock-brokers needs to be supervised as they have the capability of manipulating the market. Multiple regulatory frameworks have to be conformed to, including the Depositories Act, Regulations and the various Bye-Laws of various depositories. Agreements are entered at various levels in the process of dematerialization. These may cause worries to the investor desirous of simplicity. There is no provision to close a demat account, which is having illiquid shares. The investor cannot close the account and he and his successors have to go on paying the charges to the participant, like annual folio charges etc.. After liquidating the holdings, many I...
Read more