Logistics Plan

Topics: Management, Logistics, Supply chain management Pages: 2 (353 words) Published: January 3, 2013
How to create and develop a logistics plan
Formulate a logistics plan (create for an existing Company or make your own Company) Five key steps to logistics planning process:
1) Business Goal and Strategies
Business goals and strategy comes from overall corporate strategy and the detailed operational strategies. Logistics receives its direction from these sources, like all other operational functions of the organization. 2) Specific Customer Service Requirements

Logistics planning needs the CS requirements converted into precise ³Service Deliverables´ so that these can be planned for. Service level influences the kind of network that will be required, which in turn influences costs and competitiveness. 3) Integrated Logistics Planning

ILP is a term used to describe the comprehensive planning that logistics has to undertake based upon the two input sources above, i.e. Business goals and specific customer service requirements. This is a total plan that has to be developed in order to meet the company’s objectives. Components of Integrated Logistics Plan

* Operations Strategy
* Warehousing Strategy
* Facility Locations
* Inventory Management Strategy
* Materials handling Strategy
* Transportation Strategy
* Fleet Management
* Information Systems
* Control Strategy
* Logistics
* Organization Strategy

4) Logistics Network Design
This is the implementation phase of the key start-up actions of the logistics plan. The logistics system needs to be designed to provide the ILMS which will execute the logistics plan. It is this ILMS which will work in a coordinated manner to execute the logistics plan developed in response to the business operations strategy and CS goals. Key Considerations in Network Design

* Demand
* Customer Service
* Product Characteristics
* Logistics Cost
* Pricing Policies

5) Logistics Key Performance Index (KPI)
Logistics planning model also requires the KPIs...
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