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Lecture 1.pptx

  1. Raashid Yusuph Muslim University of Morogoro Faculty of Business Administration DEPARTMENT OF PROCUREMENT AND LOGISTICS MANAGEMENT Email – Phone: +255 625959568 BAT 06209 – Elements of Logistics and Inventory Control 3/21/2023 Compiled and presented by: Mr. Raashid Yusuph
  2. COURSE CONTENTS 1. Introduction to Logistics. 2. Managing Logistics. 3. Logistics outsourcing. 4. Global logistics. 5. Introduction to inventory control. 3/21/2023 Compiled and presented by: Mr. Raashid Yusuph
  3. Mode of assessment Course work: Test 1 10% Test 2 10% Assignment 10% Panel 10% TOTAL 40% Final Examination 60% 3/21/2023 Compiled and presented by: Mr. Raashid Yusuph
  4. OVERVIEW OF BUSINESS LOGISTICS SUPPLIER Manufacture (Producer) CONSUMER Transportation Physical Distribution Reverse Logistics Reverse Logistics Inbound Logistics Outbound Logistics Store Warehouse Information Flow Physical Flow Cash Flow Upward Stream Downward Stream Logistic Management
  5.  Logistics Process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption (Inter.logistic council, 1991) Physical Flow Information Flow Fund Flow LOGISTIC
  6. Logistics concerns the efficient transfer of goods from the source of supply through the place of manufacture to the point of consumption in a cost-effective way whilst providing an acceptable service to the customer (Rushton, 2006) Logistics is the management of all activities which facilitate movement and the co-ordination of supply and demand in the creation of time and place utility (Hesket et al,1973) OVERVIEW OF BUSINESS LOGISTICS
  7.  Supply chain is the system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer.  Supply chain consists of the series of activities and organizations that materials move through on their journey from initial suppliers to final customers (Waters, 2003) OVERVIEW OF BUSINESS LOGISTICS
  8.  Supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers (Harrison, 1995). OVERVIEW OF BUSINESS LOGISTICS
  9.  Supply chain Management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. (Hugos M, 2003) OVERVIEW OF BUSINESS LOGISTICS
  11. TYPES OF LOGISTICS/SCOPE Inbound Logistic refers to the flow of goods from source of supply to the organization or production site. Inbound Logistic involves activities associated with receiving and storing of materials, disseminating inputs from suppliers, inspection, inventory management and transport management (Blanchard, 2007).
  12. Inbound Logistics INBOUND LOGISTICS Purchasing Importation Inbound Transportation Warehousing & Storage Material Handling Inspection & Receiving Inventory Control Vehicle Scheduling Returns to Suppliers
  13. TYPES OF LOGISTICS/SCOPE Outbound Logistic refers flow of finished goods from the organization to the end customer Outbound Logistic these are the activities associated with collecting, storing, and physically distributing the product to buyers (Blanchard, 2007).
  14. Outbound Logistics OUTBOUND LOGISTICS Finished goods warehousing Material Handling Delivery Vehicle operations Decision on location of depots Order Processing and Scheduling Distributing the finished products
  15. TYPES OF LOGISTICS/SCOPE Reverse Logistics is the process of moving returned goods from their consumer destination for the purpose of capturing value or proper disposal (Blanchard, 2007). Involves returns of re-usable containers and packages to the suppliers e.g. outer cartons, purchase returns.
  16. LOGISTIC ACTIVITIES  Procurement or purchasing  Source Identification and Selection  Supplier relationship management  Contract Management Inward transport  Mode of transport  Type of delivery operation  Load planning  Route schedule
  17. LOGISTIC ACTIVITIES Warehousing/storage  Location of warehouses  Number and size of distribution depots  Type of operation e.g. fixed or random location system Inventory management  What to stock  How much to stock  Where to stock  When to stock
  18. LOGISTIC ACTIVITIES Material Handling  Manual equipments  Mechanized equipments  Automated Equipments Packaging and Unitization  Unit load  protective packaging  handling systems – etc.
  19. LOGISTIC ACTIVITIES Physical distribution  Types of distribution strategies  Types of distribution channels Information and control  design of systems  control procedures  forecasting
  20. Why Manage Logistic/PDM  The Primary purpose is to achieve: 1. Customer service - through creation of time and place utility 2. Competitive advantage 3. Cost-effectiveness 4. Operational efficiency
  21. Why Manage Logistic/PDM  The operational purpose is to ensure: 1. Rapid response  Related with a firm’s capability to satisfy customer needs in a timely manner.  The results is removal of excessive inventories. 2. Minimum inventory  Maintaining inventory is expensive and requires scarce capital.  One goal of logistics is to maintain supply continuity with the minimum inventory investment possible.
  22. Why Manage Logistic/PDM 3. Consolidated movement  The most significant logistical costs are incurred in transportation. Transport cost is directly related to the type of product, size of shipment and distance
  23. Why Manage Logistic/PDM 4. Improvement in quality  Total Quality Management has become an important commitment in all departments of industry. 5. Life cycle support  Logistics enhance reverse of non used, hazardous items and recycle items to be returned back on time for proper handling.  Close loop.
  24.  Upstream –Supplier side  Downstream – Customer Side Tiers of Suppliers/customers -SCM
  25. TIERS
  26. Evolution of Logistical Integration,1960-2000 Demand Forecasting Purchasing Requirements Planning Production Planning Manufacturing Inventory Warehousing Materials Handling Packaging Inventory Distribution Planning Order Processing Transportation Customer Service Strategic Planning Materials Management Physical Distribution Logistics Supply Chain Management Information Technology Marketing Fragmentation 1960s Today & Future Evolving Integration 1980s Total Integration 2000s
  27. Evolution of Logistics
  28. Evolution of Logistics 1. Fragmentation 1960: This era was known as fragmentation because every thing that done was disintegrated (no coordination among functions) 2. Evolving Integration : At this stage of time new concepts of Logistical management were evolving. 3. Total Integration : In the present scenario because of technological advances logistics has evolved as part of management.
  29. Mode of Transportation RAIL Train ROAD Truck, Car, Bus, Bicycle WATER Vessel, Submarine, Dhow, Mitumbwi etc PIPELINE Gasoline, Waterline AIR Jet, Airplane, Helicopter, Rocket etc
  30. Land There are many types of transport that are used on the land.
  31. Transportation mode RAIL TRANSPORT Advantages  It is a convenient mode of transport for travelling long distance.  It is a relatively faster than road transport.  It is suitable for carrying heavy goods in large quantities over long distances.  Its operation is less effected by adverse weathers conditions like rain,flood,fog,etc.
  32. Transportation mode Limitation of railway transports  It is relative expensive for carrying goods and passengers over short distances.  It is not available in remote parts of the country.  It provides service according to fixed time schedule and is not flexible for loading or unloading of goods at any place.  It involves heavy losses of life as well as goods incase of accident.
  33. Transportation Mode ROAD TRANSPORT Advantages  It is relatively cheaper mode of transport as compared to other modes.  Perishable goods can be transported at a fasters speed by road carries over a short distance.  It is flexible at any destination it provide door-to –door service.  It helps people to travel and carry goods from one place to another ,in places which are not connected by means of transport like hill areas. Limitations of road transport  Due to limited carrying capacity road transport is not economical for long distance transportation of goods.  Transportation of heavy goods or goods in bulk by road involves high cost.
  34. Water We can see many different types of transport in the water.
  35. Mode of Transportation WATER TRANSPORT Advantages  It is relatively economical mode of transport for bulky and heavy goods .  It is safe mode of transport with respect to occurrence of accidents.  The cost of maintaining and constructing routes is very low most of them are naturally made.  It promote international trade. disadvantages  The depth and navigability of rivers and canal vary an thus ,affect operation of different transport vessels.  It is slow moving mode of transport and there fore not suitable for transport of perishable goods.  It is adversely affected by weather conditions.  Sea transport requires large investments on ships and their maintenance.
  36. Air We can see many different types of transport in the sky.
  37. Mode of Transportation Air transport Advantages;  It is a fastest mode of transport  It is very useful in transporting goods and passengers to the area which are not accessible by any means .  It is the most convenient mode of transport during calamities.  It provide vital support to the national security and defense.
  38. Transportation mode Disadvantages of air transport  It is relative more expensive mode of transport  It is not suitable for transporting heavy and bulky goods.  It is affected by adverse weather conditions.  It is not suitable for short distance travel.  In case of accidents, it result tin heavy losses of goods ,properties and life.
  39. Mode Selection The selection of transportation mode based on the following factors…  Safe  Environmentally Friendly.  Cost.  Security.  Reliability.  Capacity  E.t.c.
  40. THIS LECTURE BROUGHT TO YOU BY….. Your official site to get the jobs and job related matters in particular with different vacancies announced within our national boundaries. Please, visit us now!!! Compiled and Presented by Mr. Raashid Yusuph 40
  41. Thank you for your attention. Any questions? End