Quản trị kinh doanh - Logistics management

LOGISTICS MANAGEMENTGohoho Emmanuel SenaPorts and Shipping DepartmentCourse OutlineObjectiveTopicTotal Hours1History and Introduction to Logistics22Supply Chain Management43Logistics and Customer Value44Inventory Management45Information Systems46Materials Management2Reference Books1. Donald J. B., David J. C., Copper M. B., 2010,Supply Chain Logistics Management, 3rd Edition, the McGraw-Hill Companies, Inc.2. Asish B., 2010, Textbook of Supply Chain Management, 2nd Reised & Enlarged Edition, Word-Press Publication3. Douglas M. L., David B. G., James R. S., Lisa M. E., 2006, Fundamentals of Logistics Management, European edition, McGraw-Hill Education 4. Alan H., Remko, V. H., 2008, Logistics Management and Strategy, 3rd Edition, Pearson EducationCourse Format Course will be delivered through Interactive Lectures, PowerPoint presentations, Video Clips Students are free to ask questions and contribute at any time of their choice. The 1st -10 minutes shall be used to address students problems and and also there will be unannounced test from time to time. Enjoy everyone. ThanksLearning outcomesAt the end of this lecture, students should be able toUnderstand the history of logistics managementDefine logistics managementAppreciate the Aims and objectivesDistinguish between logistics phasesWell . . . . Is This Logistics ?Actually . . . . . This Is LogisticsHistory of LogisticsLogistics “can be” defined as providing the right type of products and/or services at the right price, place, time and in the right condition. In ancient Greek and Roman empires, military officers titled as 'Logistikas' were assigned the duties of providing services related to supply and distribution of resources.History of Logistics – cont’dMilitary logistics involved:Providing the right supplies needed for forces at the right place, time and in the right quantities.Ensuring army could move from base to other positions efficientlyInflicting damage on supplies of enemy forcesProtecting one’s own supplies from enemy forces This lead to the development of a system which can be related to the current day system of logistics management.History of Logistics“An army marches on its stomach” Napoleon Bonaparte “You will not find it difficult to prove that battles, campaigns and even wars have been won or lost primarily because of logistics” Gen. Dwight D. Eisenhower Supply of materials in war could actually determine whether a war was won or lost. Introduction to LogisticsConsider this bottle water... How did this bottle water get into your hand? This should lead you to the definition of logistics managementHow did the bottled water get into your hand?You may have taken it out of your refrigerator, or from a vending machine, or from a corner store (as in this story), or any of several other places, i.e., the bottle of water was stored. Storage in logistics is often associated with a warehouse or a distribution centre. Here we have a distribution centre we happen to call a corner store (or kiosk).You and the corner storeWhy did the bottled water move from the kiosk to you?First you had a demand for bottled water. The management and fulfilment of demand is one of the fundamental principles of Logistics.Second, you had something of value to exchange with the store in return for the bottled water, i.e., money.Value in LogisticsTherefore, the bottled water was of more value to you than the price you had to pay. To the corner store the price you were willing to pay was of more value than keeping the bottled water in the cooler or fridge. How did you know to go to the corner store for the bottled water? This was because you had information, another fundamental theme of logistics.Therefore, Logistics FlowsRoles and responsibilities of parties These are the human side of systems. The corner store is the distributor of the bottled water and it is responsible for having the products its customers want at a price they are willing to pay. Roles & responsibilities – Cont’dYour role is that of the buyer and your responsibility is to provide value in exchange for the bottled water, and to go to the store to pick up the product.Corner store Processes The first is a process that distributes information to you let you know it (kiosk) sells bottled water. The second is the process for managing the exchange of value. Buyer processesThe first is one that interprets and decides upon the offer made by the corner store. The second is the process whereby you get from where you are to the corner store. The third is the process for paying for the bottled water.The buyer returns the empty bottle to the storeTherefore, Flows, Roles & Responsibilities, processes, management of returns Return of empty bottle to the storeReverse logisticsDefinitions“Logistics is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, semi-finished items and manufactured products as well as related information between the point of origin and the point of consumption in order to meet customers' requirements.” (Council of Supply Chain Management Professionals)Definitions Cont’d“Logistics is the management of the physical and information flows of production and all activities related to these flows. The physical flow of products includes the movement of the finished goods to the consumer. The informational flows for products cover reports and documentation relating to goods movement.” (Rose, 1986)Definitions Cont’d“The science of planning, organizing and managing activities that provide goods or services”. (MDC, LogLink / LogisticsWorld, 1997)Logistics ManagementLogistics Management is the application of management principles to logistics operations for efficient and cost effective movement of goods and personnel. Definition of Supply Chain ManagementSupply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.”Source: Council of Supply Chain Management ProfessionalsGohoho Emmanuel Sena28 The generic goal of logistics activities is to satisfy the needs of the Ultimate consumer. Simply stated, logistics managers ensures that the right product, in the right quantity, in the right condition, is delivered to the right customer at the right place, at the right time, at the right cost.Goal of Logistics Gohoho Emmanuel Sena29Some Specific Objectives Of LogisticsThe other key Purpose and objectives are to:Eliminate waste in the processes of the organisationAchieve value-added role of logistics in the areas of Form (What) utility; product in the right shape, etcTime (When) utility; product received on schedulePlace (Where) utility; product received at agreed locationPossession (Why) Utility; right to custody or productAchieve efficient integration of organisational activitiesHelp build strong brand image through packaging, customer service, etcGain competitive advantage through enhanced value addedQuestionWhy is Logistics regarded as a “Science”? It is a body of reliable knowledge that can be logically and rationally explained.Trends & Challenges Increasing globalization - internationalization of procurement, production and salesEvolution from a manufacturing-based society to a service society. Shortened product life cycles Growing environmental concerns. Functional areas of logistics service providersEvery production and retail company depends on logistics for production and distribution. Today, these tasks are usually assumed by specialized companies, or logistics service providers (e.g. 3PLs)These extend from transport, handling and storage of products through standardized courier, express and parcel services to customer-specific logistics solutions (contract logistics)Distinction between logistics phasesProcurement logisticsProduction logisticsDistribution logisticsSpare-parts logisticsReverse logistics35Akpe na mi!