Logistics Management

Logistics

What is Logistic?

            Logistics management is the part of supply chain management that plans, implements, and controls the efficient, 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 customer's requirements. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician.-wikipedia-

What is the differences between Logistic and Supply Chain?

A Supply chain is the network of facilities (warehouses, factories, terminals, ports, stores, homes), vehicles (trucks, trains, planes, ships), logistics information systems, and connecting suppliers’ suppliers with its customers’ customers.

While Logistics is:

“what happens in the supply chain”

“putting the right material in the right place at the right time“

it provides much of the Supply Chain’s value-added.

In the cycle of logistics supplier give material to the costumer by transportation, and then store it in warehouse to distribute to the customer, and order management. After that costumer give informationlike demand management, production planning & inventory control, and  sourcing & procurement to the supplier.

Forward logistics process or we can say it pull process logistics is to give the product to the consument, like cola company make raw material like soda, sugar, and bottle, after they finish make it they send goods/product to the supplier to store in warehouse, after that they send it to the retail store to buy by the consumer.

After that reverse logistics process or we can say it push process logistics that the consumer give the bottle back to retail store so the retail store can return it to the company to make another soda, so forward logistics and reverse logistics is the process that connected to each other.

Logistics Activities

1.      Customer Response

Involves:

•          Developing / Maintaining a Customer Service Policy*

•          Order Entry

•          Order Processing

•          Invoicing / Collections

•          Monitoring Customer Satisfaction

        (* the contract between the logistics organization and the customer, defining service targets, such as fill rates, response times, min. order quantities, terms and conditions for returns, etc.).

2.      Inventory Planning & Management  (IP&M)

      Goal:

·         determining / maintaining the lowest inventory levels possible that will meet Customer Service Policy requirements.

                                Involves:

·         Forecasting

·         Order Quantity Engineering

·         Replenishment planning

·         Inventory deployment

3.      Supply

                                Goal:

·         Minimize total acquisition cost (TAC) while meeting availability, response time and quality requirements

                                Involves:

·         Developing / Maintaining a Supplier Service Policy

·         Sourcing (of supplies)

·         Supplier integration

·         Purchase Order processing

·         Buying and Payment 

4.      Transportation

                                Links sources of supply with customers.

                     Goal:               

·  Link all pick-up and deliver-to points within the response time requirements and transportation limitations at the lowest possible cost.

                Involves:

·         Network design & optimization

·         Shipment Management

·         Fleet and Container Management

·         Carrier Management

·         Freight Management

5.      Warehousing /DC Operations

                                Goal:

·         To minimize the cost of labor, space and equipment in the warehouse while meeting cycle time and shipping accuracy and storage capacity requirements.

                                Involves:

·         Receiving

·         Putaway

·         Storage

·         Order Picking

·         Shipping

Each of these requires:

- Measures and Goals

- Process Design

- Information System Requirements

- Organizational Development 

Supply chain logistics is the flow of material, information and money between corporations (interworkstation, interfacility, intercorporate, and intrachain). Supply chain is optimized when material, information and money flow simultaneously, in real time,  and paperless.