Logistics: Supply Chain Management and Materials
Logistics comprises of relatively large number of managerial activities. Discuss five of these activities and why they are important of the logistics system.
Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements Logistics is responsible for the movement and storage of materials as they move through the supply chain. Depending on the circumstances, many other activities can be included in logistics. Sometimes an organization might include sales forecasting, production scheduling, customer service management, overseas liaison, third party operations, and so on. If you follow some materials moving through an organization, you can see that the following activities are normally included in logistics
Procurement / purchasing: The flow of materials through an organization is usually initiated when procurement sends a purchase order to a supplier. This means that procurement finds suitable suppliers, negotiates terms and conditions, organizes delivery, arranges insurance and payment, and does everything needed to get materials into the organization. In the past, this has been seen as a largely clerical job centered on order processing. Now it is recognized as an important link with upstream activities, and is being given more attention.
Warehousing: moves materials into storage, and takes care of them until they are needed. Many materials need special care, such as frozen food, drugs, alcohol in bond, chemicals that emit fumes, animals, and dangerous goods. As well as making sure that materials can be available quickly when needed, warehousing also makes sure that they have the right conditions, treatment and packaging to keep them in good condition
Materials handling moves materials through the operations within an organization.
Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements Logistics is responsible for the movement and storage of materials as they move through the supply chain. Depending on the circumstances, many other activities can be included in logistics. Sometimes an organization might include sales forecasting, production scheduling, customer service management, overseas liaison, third party operations, and so on. If you follow some materials moving through an organization, you can see that the following activities are normally included in logistics
Procurement / purchasing: The flow of materials through an organization is usually initiated when procurement sends a purchase order to a supplier. This means that procurement finds suitable suppliers, negotiates terms and conditions, organizes delivery, arranges insurance and payment, and does everything needed to get materials into the organization. In the past, this has been seen as a largely clerical job centered on order processing. Now it is recognized as an important link with upstream activities, and is being given more attention.
Warehousing: moves materials into storage, and takes care of them until they are needed. Many materials need special care, such as frozen food, drugs, alcohol in bond, chemicals that emit fumes, animals, and dangerous goods. As well as making sure that materials can be available quickly when needed, warehousing also makes sure that they have the right conditions, treatment and packaging to keep them in good condition
Materials handling moves materials through the operations within an organization.