Logistic and supply chain basics

Logistics 101: Back to Basics

Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: However, the most concise definition is as below, "International Logistics focuses on how to manage and control overseas activities effectively as a single business unit.

So, working as a "chain" is the real world practice. Integrated Logistics Support ILS is a discipline used in military industries to ensure an easily supportable system with a robust customer service logistic concept at the lowest cost and in line with often high reliability, availability, maintainability, and other requirements, as defined for the project.

This bullwhip effect carries a high price tag.

Basic Logistics and Supply Chain Management

Total cost of ownership TCO. Nodes of a distribution network[ edit ] The nodes of a distribution network include: When information is shared from retailer down to supplier, everyone doesn't have to keep stock that much.

The lack thereof can lead to a clunky, slow, and ill-equipped force with too much or too little supply. Some classes of supply have a linear demand relationship: Even though there are 3 types of flow, the most important one is information flow aka information sharing.

The Two-Level Hierarchy If you wish to keep things as simple as possible, you should find that two levels, or tiers, of logistics KPIs are sufficient. Picking efficiency varies greatly depending on the situation. Logistics automation Automated storage and retrieval system used by the U.

Logistics is an emerging business area in many countries. Total cost of sales. What is Supply Chain Relationship. Purchasing must become supply management. So academia keeps preaching about the importance of relationship building but is not for everyone. The association supports logisticians worldwide by providing a community of practice, where members can network, exchange ideas, and improve their professional skills.

Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the racks layout inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, same reasoning for sorting when designing the conveyor system or installing automatic dispensers.

The initial classification should take into account profitability and long-term growth. Direct store deliveryi. This is especially critical when considering IT investments.

End-user lowest delivered price. Defining the boundaries and intensity of specific relationships within these multiple relationships complicates supply chain design and management. Relationships are managed for mutual gain across channel partners. Some relationships merit intense effort while others are best served by efficient and standardized processes and systems.

It's like a "seesaw", the best way you can do is to try to balance both sides. "Supply Chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer" - Martin Christopher.

Introduction to Logistics & Supply Chain Management. tsfutbol.com1x - Supply Chain and Logistics Fundamentals Lesson: Introduction to Supply Chains 2 “Supply Chain Management deals with the management of materials, information, and financial flows in a network consisting of suppliers.

Jul 21,  · Logistics in supply chain management is defined as “the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities" Category.

Sincethe Council of Supply Chain Management Professionals (CSCMP) has been providing networking, career development, and educational opportunities to the logistics and supply chain management community.

Logistics Fulfillment Management (Deliver)— the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customers' requirements.

SCM Basics

This includes customer service ordering, shipment planning. Supply chain management is as much a philosophical approach as it is a body of tools and techniques, and typically requires a great deal of interaction and trust between companies to work.

For right now, however, let’s talk about three [ ].

Logistic and supply chain basics
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What is Logistics and Supply Chain Management?