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Logistic Management
Introduction
Logistics management is the process of
planning, implementing, and controlling the
efficient, effective flow and storage of goods,
services, and related information from point
of origin to point of consumption for
the purpose of conforming to customer
requirements.
Logistics means the art of managing the flow of
raw material and finished goods from the
source to the user.
Logistics = Materials management +
Distribution
Supply Chain = Suppliers + Logistics +
Customers
Logistics involves in the integration of
information, transportation, inventory, ware
housing, Material Management and packaging.
Definition of Logistics
Logistics is. . . the positioning of resource
at the right time, in the right place, at the
right cost, at the right quality.
(Chartered Institute of Logistics and
Transport (UK), 2005)
Make
Make or buy decision
Buy some
Buy components
Purchases Type
Select vendor
•Straight rebuy
•Market analysis
•Modified rebuy
•Potential vendors
•New rebuy
•Prescreen potential sources
•Evaluate remaining sources
•Choose vendors
Post purchase
performance evaluation Product delivery
Supplier relationship
Good supplier relationship helps firms to achieve efficiency and
effectiveness in implementing the procurement process and
creating and sustaining a competitive advantage to the firm.
Quality: Technical specifications, design, product life, ease of repair
and maintenance, dependability.
Reliability: On time delivery, Performance history, warranty
Capability: Production capability, technical capability,
management, operating controls, labour relations
Financial Consideration: Price, financial stability
Desirable qualities: vendor attitude, training aids, packaging,
vendor location, repair service.
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