Logistics Management

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Principles of Logistics
Management

Istanbul 2012
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Logistics Management
• Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources from the source of production to the marketplace.
• Logistics Management is the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.

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Logistics Management
So many different consepts under different names
may refer logistics management . Including,
•Business logistics
•Channel management
•Distribution
•Industrial logistics
•Logistical management
•Materials management
•Physical distribution
•Quick-response systems
•Supply chain management
•Supply management

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Logistical Integration
Inventory Flow

Customers

Physical
Distribution

Manufacturing
Support

Procurement

Suppliers

Information Flow

Logistics is, in itself, a system. It is a Network of activities with the purpose of managing the orderly flow of materials and personnel within the logistics channel. 12.12.2012

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Business Logistics

Inbound

WMS

Outbound

It is defined as having the right item in the right quantity at the right time at the right place for the right price.
Inbound Logistics: Flow of materials into and within the organization to internal customers.
Outbound Logistics : Flow of materials outside the organization to the customers.

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Business Logistics

Production Logistics: This ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time. Reverse Logistics: Collection of used goods from the final customer for adding value to the product.

Forward Logistics : Ensuring the supply of final goods to the desired customers.

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Role Of Logistics In The Organization
Logistics can be classified into various positions depending on how it is viewed as a function in a company. If logistics plays a critical role in a company’s success, it makes sense to position it in the functional organization beside the basic functions of finance, production or human resources.

If a company can provide its customers with products quickly and at low cost, it can gain market share advantages over competitors

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Integrated Logistics Management
Concept recognizes that providing better customer service and trimming distribution costs requires teamwork, both inside the company and among all the marketing channel organizations.

Cross-Functional Teamwork inside
the Company

Building Channel Partnerships

Third-Party Logistics

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Third-Party Logistics

•Outsourcing logistics can reduce costs and improve delivery reliability and speed. •Coordinate supplier inventory with delivery services.
•May provide, warehousing, assembly, testing, shipping, customs.

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Factors Impacting the Development of Logistics

•Advances in Computer Technology
•Quantitative techniques
•Development of the systems approach
•Total cost analysis concept
•Recognition of logistics role
•Erosion of firm’s profits
•Profit leverage
•Economic condition

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Critical Success Factors Today

•Cross functional management and planning skills
•Ability to define, measure and manage service requirements by market segment •Information systems
•Relationship management and win win orientation

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Thank you for your
participation…

www.psd.com.tr
info@psd.com.tr
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