INTRODUCTION TO LOGISTICS UNIT – I

INTRODUCTION TO LOGISTICS UNIT – I-

INTRODUCTION TO LOGISTICS-

LOGISTICS: CONCEPT, DEFINITION, ORIGIN AND EVOLUTION

Classification of Logistical Activities

Significance (or Objectives) of Logistics Management-

(i) Cost Reduction and Profit Maximization

(ii) Efficient Flow of Manufacturing Operations

(iii) Competitive Edge

(iv) Effective Communication System

(v) Sound Inventory Management

FUNCTIONS OF LOGISTICS-

Order Processing, Inventory Management, Warehousing, Transportation, Material Handling and storage system, Logistical Packaging, Information.

INTEGRATED LOGISTICS MANAGEMENT-

Variables affecting the Evaluation and Growth of Integrated Logistic

Activities related to integrated logistics:

• Physical distribution
• Materials management
• Logistics engineering
• Business logistics
• Logistics management
• Integrated logistics management
• Distribution management
• Supply chain management.

Phase in Customer Service

Pre-transaction phase

Typically, the following are important elements of the pre-transaction phase:

Customer service policy

Organization building

Structuring the service

Customer education

System design

The following are the various service elements associated with the transaction phase:

Order fulfilment reliability

Delivery consistency

Order convenience

Order postponement

Product substitute

Post-Transaction phase:

Order status information

Customer complaints, claims, and returns

Product installation, commissioning and technical snags

Customer education and training

Customer service attributes (Distribution aspects):

Order processing time

Delivery consistency

Delivery frequency

Stock availability

VALUE ADDED SERVICE IN LOGISTICS – CONCEPT:

Value-added logistics (VAL)

Value added – role of logistics:

Form Utility

Place Utility

Time Utility

Possession Utility

Value added – functions