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) - Shift towards placing production in Central Europe b/c production is cheaper
- Delivery: customer gets what he ordered, where he wants it and at the right time, not too early & not too late - Completeness: orders should arrive as one delivery - 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 new developments in the field of business studies - Henry Ford discovered the power of a conveyor belt where everyone makes just a small part of the car and becomes a specialist in his own little world. ( Mistakes are easily 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 goals of logistics: - efficient use of machinery - low inventory - many different varieties of products - short delivery time e.g. within 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 -
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) - Shift towards placing production in Central Europe b/c production is cheaper
- Delivery: customer gets what he ordered, where he wants it and at the right time, not too early & not too late - Completeness: orders should arrive as one delivery - 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 new developments in the field of business studies - Henry Ford discovered the power of a conveyor belt where everyone makes just a small part of the car and becomes a specialist in his own little world. ( Mistakes are easily 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 goals of logistics: - efficient use of machinery - low inventory - many different varieties of products - short delivery time e.g. within 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 -