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Logistics Goals

and
Strategies

Logistics Goals

The mission of logistics is to plan and co-ordinate all the activities of inbound logistics,
design, procurement, production, outbound logistics, marketing, research and
development.

To achieve the desired levels of delivery services and quality at the lowest possible cost .
Order fulfilment - transaction between the supplier and customer is being satisfied
Delivery fulfilment - Order must also be delivered at the right location and at the right
time.

Quality fulfilment - Order must be provided intact (in good condition).


Fulfilment is the final goal, which includes cost of ordering, manufacturing and
distribution costs.

Goals of supply chain management


Logistics shares the goal of supply chain management, to meet customer
requirement.
1. Rapid response capability
2. Minimum variance
3. Minimum inventory expenses
4. Consolidated shipments

5.
6.

High quality
Support product life cycle

Logistics strategy
Logistics strategy is the set of guiding principles, driving forces that
helps to coordinate goals, plans and policies between partners
across a given supply chain.

Main strategy
The main strategy which logistics companies have to follow
1.
2.
3.
4.
5.

Coordinating functions
Integrating the supply chain
Substituting the inventory information
Reducing the number of partners
Pooling risks

Significance of logistics
Costs are high
- about 10.5% of GDP domestically
- about 12% of GDP internationally
- a range of 4% to 30% of sales for individual firms, avg, about 10%.
Customers demand high for the supply chain
- Desire for quick response
- Desire for mass customization
An integral part of company strategy
- Generate revenue
- Improve the profit

Strategy of production
Low cost
Increase the quality of production
Production and logistics function must be able to accommodate

demands for local responsiveness.


Production and logistics company must be able to respond quickly
to shifts in customer demands.
Maintaining high levels of customer service (96%)
Lowering costs (94%)
Improving efficiencies and productivity in logistics operations (93%)
Attaining the ability to target logistics initiatives that drive business
growth (79%)
Improving Asset Utilization (74%)

Substituting the inventory information


This is one of the tactics used in designing an effective logistic
strategy . steps to be followed,
Step-1: locate in the right countries.
Step-2: develop an effective export-import strategy.
Step-3: select warehouse location.
Step-4: select transportation modes and carriers.
Step-5: select the right numbers of partners.
Step-6: develop state of the art information systems.

To Improve the strategy,

Supply chain strategy

Ability to react to variable customer demands at the right cost and margin for your business

Control your supply chain costs.

Increased levels of customer efficiency.


The right mix of DC's, warehouses or satellite storage
points improves asset utilisation and effectiveness.
The right levels of inventory across your supply chain network.
Improved lead-time and response for your transport deliveries to customers.

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