Prof. Anatoly Sachenko -Kontakt - PowerPoint PPT Presentation

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Prof. Anatoly Sachenko -Kontakt

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Title: O'Brien MIS, 6th Ed. Author: Lanny Wilke Last modified by: Anatoly Sachenko Created Date: 10/30/2002 8:24:47 PM Document presentation format – PowerPoint PPT presentation

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Title: Prof. Anatoly Sachenko -Kontakt


1
Prof. Anatoly Sachenko -Kontakt
  • Zaklad Informatyki i Ekonometrii
  • Budynek A, pokój 414
  • Instytut Ekonomii i Informatyki
  • Wydzial Organizacji i Zarzadzania
  • http//dydaktyka.polsl.pl/roz6/asachenko/default.a
    spx
  • sachenkoa_at_yahoo.com or
  • a_sachenko_at_ieee.org

2
Informatics in Logistics Management
Lecturer Prof. Anatoly Sachenko
3
Lecture Overview
  • Definition and Origins
  • System Approach
  • Logistics Management
  • Logistics Perspective

4
Definition of Logistics
  • Logistics - Planning implementing and
    controlling the physical flow of material and
    finished goods from point of origin to point of
    use to meet customers need at a profit Philip
    Kotler
  • Logistics is the management of the flow of goods
    between the point of origin and the point of
    destination in order to meet the requirements of
    customers or corporations.
  • Logistics involves the integration of
    information, transportation, inventory,
    warehousing, material handling, and packaging,
    and often security
  • Logistics is one of the main functions within a
    company

5
Origin of Logistics
  • The term logistics comes from the Greek logos
    (?????), meaning "speech, reason, ratio,
    rationality, language, phrase", and
  • more specifically from the Greek word logistiki
    (????st???), meaning accounting and financial
    organization
  • The word logistics has its origin in the French
    verb loger to lodge or to quarter
  • Its original use was to describe the science of
    movement, supplying maintenance of military
    forces in the field
  • Later on it was used to describe the management
    of materials flow through an organization

6
Main Logistics Targets and Fields
  • Its main targets are divided into performance
    related and cost related
  • They are high due date reliability, short
    delivery times, low inventory level and high
    capacity utilization
  • But when decisions need to be made, there is
    always a trade off between these targets
  • Its making a logistician challenging and
    interesting
  • Main Logistics fields
  • Procurement Logistics
  • Production Logistics
  • Distribution Logistics
  • After sales Logistics
  • Disposal Logistics

7
Logistics Viewpoints
  • Inbound logistics is one of the primary processes
    and
  • it concentrates on purchasing and arranging
    inbound movement of materials, parts and/or
    finished inventory from suppliers to
  • manufacturing or assembly plants, warehouses or
    retail stores
  • Outbound logistics is the process related to the
    storage and movement of the final product and the
    related information flows from
  • the end of the production line to the end user

8
Scope of Logistic
  • It is a critical importance for organization how
    it delivers tangible or intangible products
    services to the customer
  • Effective physical movement of the tangible
    product will speak of intangible services
    associated with the product and the delivered
    organization
  • In Case of intangible product, the delivery of
    tangibles at the right place right time will
    speak about its quality
  • On the macro level infrastructure its
    contributing to a large extent in the physical
    movement of produced goods

9
Scope of Logistic
  • This speed reliability in distribution of
    products services contribute to a great extent
    in the growth of a countrys domestic
    international trade
  • Logistic cost as a percentage of GDP across the
    world is shown in the following table
  • Country Logistic cost as a percentage of GDP
  • Korea 16
  • China 15
  • Japan 14
  • India 13
  • France 12
  • UK 11
  • USA 10

10
Logistics A system approach
  • Logistics recognizes that all the activities of
    material movement across the business process are
    interdependent and needs close coordination and
    these are to be maintained as a system
  • Logistics System is an adaptive system including
    following functional Areas
  • Order Processing
  • Information Flow
  • Warehousing
  • Inventory control
  • Packaging
  • Transportation

11
Order Processing
  • Order checking for any deviation in agreed on
    negotiated term
  • Technical details price delivery period
    payment terms taxes etc.
  • Checking the availability of material in stock
    (material requisition)
  • Production material scheduling for shortage.
  • Acknowledging the order, indicating deviation if
    any
  • It is routine operation but require great deal of
    planning training of people involved and
    investment to bring about efficiency accuracy

12
Information Flow
  • It is basically info based activity of inventory
    movement across the supply chain
  • Hence role of info system plays a vital role in
    delivering superior customer service
  • This function is required to facilitate the
    following info needs
  • Order registration
  • Order checking editing
  • Order processing
  • Coordination - means to integrate the total
    supply chain of the company with info needs as to
    time, quantity, value

13
Warehousing
  • A storage place wherein finished goods are stored
    till they are sold.
  • Effectiveness of an organizations marketing
    strategy depends on making the right decision
    regarding warehouse
  • Warehouse are treated as switching facilities
    rather than storage place
  • Major decision of warehouse are as follows
  • Location ,Size Number of warehousing
    facilities
  • Warehouse layout
  • Design of building
  • Ownership of the warehouse

14
Modern Warehouse
15
Packaging
  • It is also a critical element in physical
    distribution of the product,
  • which influences the efficiency of the logistic
    system this is done with the view of following
  • For handling and damage prevention
  • For communications
  • For inter modal transportation
  • Storage space economy
  • Thus to reduce packaging cost

16
Transportation
  • For goods movement of a transportation is the
    most fundamental and important component of
    logistic
  • E.g. for low unit value products the
    transportation cost component is 20 of the
    product cost
  • In logistic cost its share varies up to 65-70
  • There are the few decision involved in
    transportation
  • Mode of transportation ( Cost time factor)
  • Own fleet or Outsourcing
  • Route Planning
  • Vehicle scheduling

17
Logistics Management
  • Logistics Management is that 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 customers requirements
  • From a traditional point of a view a goal of any
    firm is to produce competitive products and
    increase its volume
  • In this case management can boil down to a
    General Manager minor staff-see next slide

18
Logistics Management Traditional Structure
Persons Decision Making Process (Chief Manager)
Supplier
Production
Customer
Material flow
Information flow
19
Logistics Management Traditional Structure
  • Both terms Flaw and Inventory are the main
    categories of Logistics
  • In Logistics Management are diffeation Flows- see
    previous and next slides
  • Material Flow red the Material and Informis the
    description of the transportation of raw
    materials, pre-fabricates, parts, components,
    integrated objects and finally products as a flow
    of entities
  • Logistics operations with Information Flow
    include acquisition, storing, processing and
    transfer of info
  • In next slide is shown a contemporary
    structure of Logistics Management

20
Logistics Management Contemporary Structure
21
Logistics' perspective Three Forces?
  • Three Forces which have change the perspective of
    logistics
  • Globalization
  • Focus on Supply Chain Management
  • Outsourcing of Non Core Competency Functional Area

22
Globalization
  • The entire world has become a global village for
    marketers because of the liberalization of
    economics of most countries, and
  • the emergence of World Trade Organization which
    is forcing business organizations to supply
    products beyond the national boundaries wherever
    there is a market opportunity
  • However in such conditions the role of LOGISTICS
    will be
  • to provide time and place time and place utility
    of the product to the customer

23
Focus on Supply Chain Management
  • Business the world over are striving for
    competitiveness
  • In their struggle for survival their focus has
    shifted to the supply chain i.e.
  • Integrating the process of Procurement ,
    processing distributing to deliver value for
    money to the customer
  • Two key roles logistics planning support are
  • Value delivery process
  • Success of Supply Chain Management

24
Outsourcing of Non Core Competency Functional Area
  • Outsourcing is a acceptable trend in business
  • Corporation have realized that doing everything
    by themselves does not result in effective
    efficient use of scare resources available to
    them
  • It is better to outsource functional area to
    experts who can do job at the lowest cost and
    that to efficiently Effectively
  • LOGISTICS is one such area where most of business
    org. do not have enough expertise thus needs to
    be outsourced
  • Thus Logistics have shaped into different service
    industry offering complete customized
    logistics solutions
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