PLANNING FRAMEWORK FOR LOGISTICS Flashcards
is concerned with ensuring that business methods are aligned
and organized so that they operate across the traditional company functions and become
supply-chain-oriented.
LOGISTICS PROCESS DESIGN
refers to the more traditional elements of logistics strategy.
LOGISTICS NETWORK DESIGN
should include all of those
information-related factors that are vital to support the processes and the physical structure of
the operation.
LOGISTICS INFORMATION SYSTEM DESIGN
It is the experience of many companies that
an inadequate organizational structure can lead to substantial problems.
LOGISTICS ORGANIZATIONAL STRUCTURE.
When customers readily substitute a
product with a different brand or type of goods, then it is important that the
distribution system is designed to avoid stockouts or to react to replenish
stocks in a timely fashion.
SUBSTITUTABILITY
The characteristics of some products present a degree of risk associated with their
distribution. The need to minimize this risk means that a special distribution
system design must be used.
High-risk Products
The product is, in fact, perceived to be an amalgam of its physical nature, its price, its
package and the way in which it is supplied. For the logistics planner, the physical
characteristics of the product and package are seen to be of great significance.
PRODUCT CHARACTERISTICS
here, there is usually a requirement for an operation that can provide a
high response to demand with a logistics structure that gives stock availability and quick
replenishment, and can react to sudden demand increases.
INTRODUCTORY STAGE
here, sales are more predictable. The requirements for distribution are now for
a better-balanced, more cost-effective system
GROWTH STAGE
this is where the introduction of competitive products and substitutes is
likely to increase price and service competition.
MATURITY STAGE
here, the product is becoming obsolete. The logistics system needs to support
the existing business but at minimum risk and cost.
DECLINE STAGE
broadly determined for product promotion and
product protection, the latter being the function that is particularly pertinent to
logistics.
PACKAGING
was developed from the realization of
the high costs involved in the storage and movement of products – particularly in
the inefficient manual handling of many small packages.
Unit Loads
