Introduction to Business Logistics

1
Introduction to Business Logistics

• Dr. Pat Daugherty

2
Logistics defined

• The process of planning, implementing and
  controlling the efficient, effective flow and
  storage of goods, services and related
  information from the point of origin to the point
  of consumption for the purpose of conforming to
  customer requirements.
• -- Council of Supply
  Chain Management Professionals

3
Logistics includes

• Information
• Transportation
• Inventory
• Warehousing
• Material Handling
• Packaging

4

• Cost
• Vs.
• Service
• (trade-offs)

5

• We dont ask anything complicated. We tell a
  carrier we want on-time pickup and delivery, no
  loss or damage to the product, an accurate bill,
  and treat us nicely. Thats how we present it to
  them.
• What we look for in carriers is consistent
  service.
• Carriers must focus on and meet individual
  customer requirements, provide flexibility to
  respond to changing circumstances, and
  continually improve even top-notch service.

6
Logistical Integration
Inventory Flow
Customers
Physical distribution
Manufacturing support
Procurement
Suppliers
Information Flow
7
Logistical Performance Cycles

• Procurement Performance Cycles
• Manufacturing support Performance Cycles
• Physical Distribution Performance Cycles

8
Operating Objectives

• Rapid Response
• Minimum Variance
• Minimum Inventory
• Movement Consolidation
• Quality
• Life-Cycle Support

9
Barriers to Internal Integration

• Organizational Structure
• Measurement Systems
• Inventory Ownership
• Information Technology
• Knowledge Transfer Capability