Logistics
Position resources at the right time, place, cost, and quality
All aspects of movement and storage of goods (from original suppliers to final customers)
Product
Combination of goods and services
→ Create value for customer together
Manifactured product
Physical product
Extended product
Warranties, after-sales service, repairs, finance service, logistics, instructions for use
If competing products are similar, the advantage is obtained through additional service
Can logistics be treated as a part of the product?
Yes
Supply chain
Network from suppliers to final customers
Logistics management
Plan, implement, and control the flow of goods, services, and related information
→ Part of supply chain management
→ Efficient and effective forward and reverse flow / storage
Requirements to integrate a company in supply chain (6)
Objectives of system
Employees involved in logistics activity
Information supporting logistics decisions
Equipment
Processes
Environment
Supply logisitcs
Activity of the supplier beyond enterprise
Goal: Provide the recipient with the right quantity and quality according to commercial / production demand
Factors influencing decisions in supply logistics (4)
Product policy
Policy of contracting
Communication policy
Purchasing policy
Logistics of production
Link between supply logistics and logistics of distribution in companies manufacturing or assembling products
Supply raw materials, manufactured materials, semi-finished products and purchased parts
Flow of goods between subsequent processing stages
Transfer of finished products to sales warehouses
Factors influencing decisions in logistics of production (4)
Type of production
Location of production process and distribution of machines
Location of warehouses
Assumptions concerning supply of materials
Distribution logistics
Related to recipient market
→ Flow of final products
Tasks: Supply customer with finished goods directly from production, from sales warehouses or from other regional shipping centres
Distribution logistics is closely related to marketing activity
Factors influencing decisions in distribution logistics (3)
Policy of product
Policy of delivery
Reverse logisitcs
Waste and recyclable materials from production and distribution processes (including shipment and storage)
Returns may result from product defects, surpluses (slow-moving goods), or delivery of improper goods to the recipient
Recipients can be companies specializing in the utilization / processing of waste and recyclable materials
Factors influencing decisions in reverse logistics
Returning goods are equally important as other phases of the flow of goods Implementation of sustainable development principles
→ Related to social, environmental and economic aspects of activity
Return of goods from recipients can be source of competitive advantage (due to the limited possibilities to improve operations in other logistics subsystems)
Combines responsibility for delivery of products with responsibility for collection of returned goods, reusable packaging from recipients
Ensure the shortest possible deadline for the return of goods and the execution of buyer’s orders for products offered
Outsourcing
Market of logistics service is well developed
Different scope of service offered by providers
→ Simple tasks like transportation, storage
→ Complex tasks like logistics service, including forwarding
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