Role of Logistics in Organisations
& Economies
KIT710 eLogistics
Lecture 1.2
Dr Luke Mirowski
Computing & Information Systems
University of Tasmania
Overview
Manufacturing
Value of Logistics
Customer Service
Forecasting &
Inventory
Materials &
Transportation
Logistics Role in Economy &
SCM
Enterprise Logistics
Quality/Standards
Channels
Warehousing
Global
Logistics
Procurement
[ALC Logistics Video]
www.alc.com.au
Logistics
‘Logistics [management] is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between point of origin and the point of consumption in order to meet customers’ requirements’ Council of Supply Chain Management Professionals, 2014
4
Logistics Challenges & Opportunities
Some of the key questions faced in operating a logistics supply chain:
Similarly in the USA, a number of areas are addressing this at a regional level rather than as initiatives of specific industry sectors – to avoid an overly
12 production centric
(Turner 2015) focus Can anyone tell me • What processes are involved for a
[manufacturing] business making goods and delivering them to customer?
• Where and when do these processes occur during the [business] lifecycle?
• Why does the [business] need these processes to occur? What other businesses are involved?
Function of Business
Businesses have three basic functions
1.
Financing
-Responsible for financial resources, budgeting, providing funds for operations
2.
Marketing
-Responsible for assessing customers wants and needs, selling and promoting the organisation’s products and services
3.
Operations
-Responsible for producing goods or providing the services offered by the organisation Operations management is concerned with converting materials and labour into goods and services as efficiently as possible to maximise the profit of an organisation 14
Logistics Challenges & Opportunities
Some of the key questions faced in operating a logistics supply chain:
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Emergence of Logistics Field
• Almost every organisation has to move materials or products
– Manufacturers have factories that collect raw materials from suppliers and deliver finished goods to customers
– Retail shops have deliveries from wholesalers, etc…
• Over the last 50 years there has been an emerging trend for globalisation leading to the integration between countries and across regions for manufacturing, production and distribution
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Emergence of Logistics Field cont.
• Less costly transportation and development in electronic communications have made easier the exchange of goods, labour and services
• Information Communication Technologies (ICT) have transformed conventional logistics through rapid information interchange and the ability to separate the path of information flow and finance flow from the path of the physical flow of goods/services • Increased challenges and complexities of organising product flows within or between countries requires planning and control 17
Brief Timeline of International Logistics
• Origins date back to the military
• The 1980s was a period of a move towards longer-term planning and cost cutting measures such as: centralised distribution, reduced stock holdings, and increased use of computers
– There was a growth in third party
