Principles Of Logistics Management

Logistics Management

1. Principles of Logistics Management Diploma in Logistics Management

2. Principles of Logistics Management Chapter 1 The Role of Logistics in the Economy and Organization

3. Why study Business Logistics? Wide career prospect （前景） Manufacturing & trading firms Service firms e.g. 3PL （第三方物流） , freight forwards Learning institutions （制度） Government agencies Other service institutions （机构） e.g. restaurants, hospitals, etc

4. Logistics Management The process of planning, implementing （执行） and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption （消耗） for the purpose of conforming to customer requirements. Council （委员会） of Logistics Management a leading organization for logistics professionals

5. Logistics Management many names including: Business logistics Channel management Distribution Industrial logistics Logistical management Materials management Physical distribution Quick-response systems Supply chain management Supply management

6. Components of Logistics Management 构成因素

7. Systems Approach/Integration Logistics is, in itself, a system It is a Network of activities with the purpose of managing the orderly flow of materials and personnel within the logistics channel.

8. The system approach All functions or activities need to be understood in terms of how they affect, and are affected by, other activities. The sum, or outcome of a series of activities, is greater than its individual parts. Eg . High inventory level good or bad? - Bad: warehouse cost, obsolete, cash flow, insurance, currency fluctuation （货币波动） - Good: support demand

9. Logistics role in the Economy Logistics is an important component of GDP Adds value by creating TIME and Place Utility(value)

10. Logistics role in the Organization Supports Marketing “Marketing management philosophy （哲学） holds that achieving organizational goals depends on determing the needs and wants of target markets and delivering the desired （渴望的） satisfactions more effectively （有效的，实际上的） and efficiently than competitors.”

11. Marketing/Logistics Management Concept Customer Satisfaction 1.Suppliers 2.Intermediate customers 3.Final customers Company Profit 1.Maximize long-term profitability 2.Lowest total costs given an acceptable level of customer service Integrated Effort 1.Product 2.Price 3.Promotion 4.Place(distribution)

12. 4 P’s of the Marketing Mix Products - the set of utilities or characteristics a customer receives as a result of a purchase (quality, features, customer service, warranty) Price - the amount of money a customer pay for a product or service (discount, rebates, customers) Promotion - a product or service encompasses both personal selling and advertising Place - component of the marketing mix support the levels of customer service provided by the organization

13. Cost Trade-offs Required in Marketing and Logistics

14. Role of logistics in the Organization Logistics Types of Utility Form utility Manufacture – Production or Operations process The value of making materials available in a completed state — Possession （所有 / 持有） utility Value added to a product allow the customer take ownership

15. Role of Logistics in the Organization Logistics Types of Utility Time utility value created by making product or service availability when it is needed Place utility value created or added to product or service availability where it is needed

16. Role of Logistics in the Organization One way of viewing the Major Costs of Doing Business Profit $0.04 Logistics Costs $0.21 = Time& Place utility Marketing Costs $0.27 = Possession utility Manufacturing Costs $0.48 = Form utility

17. Role of Logistics in the Organization Profit Leverage provided by Logistics Cost Reduction If net profit on the sales dollar is 2% then A Savings of is Equivalent to a Sales increase $0.02 $1.00 $2.00 $100.00 $200.00 $10,000.00 $2,000.00 $100,000.00 $20,000.00 $1,000,000.00

18. Logistics role in the Organization Logistics is a Proprietary （私有） Asset （资产） It is similar to a tangible （明确的） asset on a firm’s books It cannot be readily （欣然地） duplicated （复制出） by the firm’s competitors （竞争者） If a company can provide its customers with products quickly and at low cost, it can gain market share advantages over competitors

19. Logistics allows efficient movement to the customers 7 Rights of Logistics Move the Right Materials/Products In the Right Quantity In the Right Condition At the Right Time To the Right Place At the Right Cost To the Right Customers, Associates, Suppliers and Stockholders.

20. The Logistics Evolution Fragmentation 1960 Evolving Integration 1980 Total Integration2000

21. Factors Impacting the Development of Logistics Advances in Computer Technology Quantitative （数量上的） techniques Development of the systems approach Total cost analysis concept Recognition （酬劳 / 认出） of logistics role Erosion （腐蚀 ） of firm’s profits Profit leverage Economic condition （状况，地位）

22. Key Logistics Activities Customer Service Demand forecasting planning Inventory management Logistics Communications Material handling Order processing Packaging Parts & Service Support Plant & warehouse site selection Procurement （获得） Return goods handling Reverse logistics Traffic & transportation Warehousing & storage

23. Key Logistics Activities Customer Service -Customer oriented （导向的） philosophy （哲学、人生观） -Optimum （最适宜的，最有利的） cost-service mix -Output of logistics system -Customer satisfaction