Logistics Summary

Logistics a practical approach Part 1 The foundations of Logistics Chapter 1 Introduding Logistics Logistics is more than just Transportation Involves aspects like procurement (Beschaffung), sourcing, planning, storing, control and distribution (Verteilung/Austeilung) modify towards placing point of intersectionion in Central Europe b/c production is cheaper Delivery customer gets what he uniform, where he wants it and at the right beat, not as well early & not too late Completeness orders should arrive as one spoken communication Accuracy should deliver what you promised Billing only want to pay for what you ordered Customer service enough stock to satisfy the customer + service Flexibility ability to produce anything on time and anything at any time Production in developing countries makes it possible to offer goods for the lowest price Good logistics will result in gaining customers, gaining trade and success for the business itself automotive industry is one of the first industries to make good use of all told new developments in the field of business studies Henry Ford discovered the violence of a conveyor belt where everyone makes just a small part of the car and becomes a specialist in his own little world. Mistakes ar intimately recognized ( Work becomes routine and effective ( Saving time and time is money mass production became the norm later just-in-time management was taken up by the whole automotive industry which was started by the Japanese Conflicting cultivations of logistics efficient use of machinery low inventory many different varieties of products short delivery time e. g. in spite of appearance two hours Logistics should help each and everyone in the organization to achieve the overall goal of the company Value chain of Porter shows that we do not have very important and less important departments A chain is only as strong as its weakest combine Final goal is getting a maximum profit and the survival in t he long run pic Planning the activities instead of taking one aspect or link at a time and trying to obtain an optimal result for this part we now have to look at the whole chain and centralize on obtaining a maximum result at an integral level. This requires planning for the whole chain (traditional planning vs. modern approach integral planning ( p. 25) Symbols pic almost logistic value chains will consist of many different forms and will resemble interlocks these different aspects all make up the basic elements of logistics within the value chain all elements within a Supply Chain should be connected the main goal to ensure that the customer gets the right product cooperation is needed in order to ensure that all links have a common goal in mind to increase the efficiency and say-so of the chain results should be higher profit margins lower sales prices improved competition faster introduction of new products Supply Chain a network of connected and interdependent orga nizations mutually and cooperatively working together to control, manage and improve the flow of materials and information from suppliers to end users The more links there are between you and the final customer, the more difficult it will be to understand that market Logistics is a combination of the activities Material Handling Stock control frame handling and processing Customer service Demand prediction Sourcing, Vendoring and purchasing scattering internal and external Location of warehouses and production facilities Handling reversed flows of goods, rejects and publicity material Spare parts, repairs and customer service Production planningDefinition of logistics Logistics is the process of planning, implementing and controlling the efficient, effective flow and storage of raw materials, in-process inventory, finished goods, service and related information from point of origin to point of consumption for the purpose of conforming to customer requirements Logistic s management consists of 2 blocks Material Management (MM) and Physical Distribution (PD) (p. 36) Logistics and the most important relationships pic it is difficult to determine the be for logistics, as every company has a different concept for what to include and what not during the last decades, the equals for logistics have seen a huge increase compared to other damages to get a quick insight into the buildup of costs and the relationships with profits Return on enthronization (ROI) ROI = Profit / total assets ROI = (Profit/Turnover) * ( Turnover/total assets) ( Not possible to increase the ROI by increasing sales Turnover total sales amount of money cost all costs made in an organization Costs of logistics all costs related to logistics Other costs all costs except cost of logistics Profit what is left after all costs are paid Profit margin profit as a percentage of sales Depts. all outstanding debts, mainly with suppliers Liquid assets assets quickly transfer red into cash Fixed assets assets which only can be transferred into cash with huge costs like machinery etc. Total assets everything invested in an organization Turnover rate total assets as a percentage of sales