Logistics Summary

Page 1 of 4

Logistics Summary

By | April 2010
Page 1 of 4
Logistics - a practical approach

Part 1: The foundations of Logistics

Chapter 1: Introduding Logistics

- Logistics is more than just Transportation
- Involves aspects like procurement (Beschaffung), sourcing, planning, storing, control and distribution (Verteilung/Austeilung) - Shift towards placing production in Central Europe b/c production is cheaper

- Delivery: customer gets what he ordered, where he wants it and at the right time, not too early & not too late - Completeness: orders should arrive as one delivery
- Accuracy: should deliver what you promised
- Billing: only want to pay for what you ordered
- Customer service: enough stock to satisfy the customer + service - Flexibility: ability to produce anything on time and anything at any time

- Production in developing countries makes it possible to offer goods for the lowest price - Good logistics will result in gaining customers, gaining trade and success for the business itself

- Automotive industry is one of the first industries to make good use of all new developments in the field of business studies - Henry Ford discovered the power of a conveyor belt where everyone makes just a small part of the car and becomes a specialist in his own little world. ( Mistakes are easily recognized

( Work becomes routine and effective
( Saving time and time is money
- mass production became the norm
- later just-in-time management was taken up by the whole automotive industry which was started by the Japanese

Conflicting goals of logistics:
- efficient use of machinery
- low inventory
- many different varieties of products
- short delivery time e.g. within two hours

- Logistics should help each and everyone in the organization to achieve the overall goal of the company

- Value chain of Porter shows that we do not have “very important” and “less important” departments - “A...