Logistics functions
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This document discusses key concepts in logistics and supply chain management. It covers inventory management, transportation, warehousing, material handling, packaging, and information management. The main points are: inventory management aims to balance stock levels and costs to meet demand, transportation involves moving goods via owned, contracted or public methods, and warehousing provides storage and benefits to logistics systems. Material handling, packaging and information management are also important logistics functions that impact costs and operations.
Logistics functions
- 2. 1st Step, customer feels the need for certain products Place order Once Order Received Checking the availability of said quantity If not available start producing Checking whether customer’s credit is satisfactory Acknowledging order received Many Internal Activities undertaken Processcanbeshortenedthrough theuseofcomputer
- 3. Inventory Management involve = required level of stock to meet customer requirements + ensuring minimum inventory carrying cost Success of an org. depends on management of inventory level Inventory = transportation cost + warehousing cost + material handling cost etc. Increase level of inventory will increase to all costs Thus, one of the objective is to reduce inventory cost Without proper inventory management the firm will not able to meet demand of customers
- 4. It is a place where goods are stored until they are sold. Traditionally only known as storage facilitator but plays important role. A firm may have private, public or contract warehouse It should be located near market Warehouse provides number of economic and service benefits to logistical system
- 5. Transportation refers to physical movement of goods Transportation is accomplished in three ways One’s own fleet – private carriage Contract with specialists on long term basis – contract carriage Contract on individual shipments basis – common carriage Determinants of effective transport system Cost Speed Consistency
- 6. Receipt of Material Storage of Material Moving to production unit Moving of finished goods to the warehouse Then final to the customer MaterialHandlingmeans Right amount of material Right material In a right condition At the right place Right time Basically it involves moment, protection, storage and control of materials
- 7. It is an important logistical management function It has significant impact on cost and productivity of logistic system Packaging influences both the efficiency and the effectiveness of logistical operation Types Consumer Packaging Focuses more on customers convenience, market appeal and product protection Industrial (Logistic) Packaging Focuses on handling, protection and communication Storage space
- 8. Plays invisible but crucial role Need for information Demand forecasting and order processing are two area of logistic depends on information management Information is needed for better tactics and strategies All functions like transportation, warehousing, material handling etc. depends on relevant information
- 9. Series of activities designed to enhance customer satisfaction