Logistics
1. GENERIC COMPONENT-
CUSTOMER SERVICE: It brings about an interface of logistics with marketing that determines: -Customer service requirements for products and/or competitive advantage; -Corporate vision towards service goals;
-Service expectations of customers & their response;
-Development of customer service standard;
-Logistics cost-service trade-off;
-Infrastructural requirements; and
-Development of evaluation and appraisal mechanism.
2. PRIMARY COMPONENTS
NETWORK DESIGN-
-Number, size and location of facility network required to perform logistics operations; -Relationships among locational facilities;
-Their cost and customer service capabilities; and
-Infrastructure of each facility centre.
TRANSPORTATION-
-Requirement, availability and regularity of the transport service; -Modes of transport and co-ordination between them;
-Transport cost, freight and tariff
-Fleet management;
-Transit insurance and claim processing;
-Time, speed and intact delivery; and
-Point-to-point information pertaining to movement status
INVENTORY MANAGEMENT-
-Stocking policies for raw materials, work-in-process and finished goods; -Zero-inventory, just-in-time, push-or-pull inventory strategies; -Inventory cost;
-Product mix at stocking points;
-Number, location and size of stocking points; and
-Approach towards safety stock, reorder point and lot size
ORDER PROCESSING
-Order receiving and processing
-Speedy order processing and transmission;
-Order-inventory interface procedures;
-Order and back-order systems
-Warehouse picking and packing
-Despatch scheduling
-Point-to-point information pertaining to order status
-Accurate, legal and required documentation; and
-Order processing cost
3. SUPPORTIVE COMPONENTS
-Warehouse location and configuration
-Infrastructural facilities
-Operational mechanism
-Space determination
-Goods placement
-Up-to-date recording of goods stock position
-Protecting and preserving the physical attributes of goods
-Proper loading and unloading system
-Marshalling goods for despatches; and
-Warehousing cost
MATERIALS HANDLING
-Safe, smooth and speedy placing and positioning of goods to facilitate their movement and storage -Material handling equipment selection and replacement policies; -Storage and retrieval frequency of goods;
-Material handling equipment and operating costs;
-Usual life and resale or scrap value of equipment.
PROTECTIVE PACKAGING
-Protection from loss and storage;
-Design of package required for handling and storage;
-Market value of the package;
-Reuse of packages;
-Scrap value of the package; and
-Packaging cost.
PROCUREMENT
-Make –or-buy decision;
-Vendor selection and management;
-Quality specification;
-Supply schedule;
-Vendor service capability;
-Vendor-company relationship;
-Vendor training and development;
-Procurement cost....
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