Professional Documents
Culture Documents
Elements of Logistics
Information Management
Inventory Control Transportation Warehousing Packaging
Importance of 3cs
Company
Customer Competition
Inbound Logistics
Activities associated with receiving, storing and
distributing inputs to the product such as material handling, warehousing, inventory control, vehicle scheduling and returns to suppliers. It takes care of the procurement cycle.The task involves:
Sourcing Order Placement Transportation Receiving
Outbound Logistics
Activities associate with collecting, storing and
processing, warehousing, material handling, delivery vehicle operations, scheduling, shipping etc.
other. These facilities are called nodes and these nodes are connected by links, called LPCs. These links are the product transportation and information flow. LPCs are sensitive to input and highly responsive to customer needs.
Contd.
Procurement cycle
Manufacturing support cycle
upstream and downstream, in different processes and activities that produce and deliver the value in the form of products and services in the hands of the ultimate consumer
Participants in SCM
Suppliers
Manufacturers Distributors Customers
Importance of SCM
Reduced inventory
Better flow of information Customer satisfaction Competitive edge Builds trust Avoids wastage Quick response
goods & services where they are required and when they are desired
It is a narrower concept It is conducted within
activities associated with movement of goods from raw materials stage to end user It is a broader concept It functions outside the organization It originated from Business logistics
The objective is to
The objective is to
dealers and retailers will cause confusion and fluctuation in order placement
Also different in time period of forecasting in demand
Impact
It increases: Manufacturing cost Inventory cost Replenishment lead time Transportation cost Labour costs More Stock-outs Negative effect on performance Loss of customer service & Loss of sales
Solution
Know your customer
Proper forecast Better information Perfect logistics Invest in best talent Analyse Key Data Modern technique
Extended enterprise
It is loosely coupled, self organizing network of firm
that combine their economic output to provide product and service offerings to the market.
All parties connect through a contract and work as
single corporation.