Вы находитесь на странице: 1из 5

Functions of logistics:

1. Transportation management: Transportation enables the means of transfer of inventory given the location & network framework developed earlier. This involves the selecting the modes of transportation like Air, Water, Rail, Road & the decisions relating to o tso rcing this activities to other agencies. !election of the modes of transportation depends on the following factors:

!peed & reliability loss& damage "nventories #reight rate $arket competitiveness %ompany policy & c stomer infl ence &'ternal market infl ences.

The aspects of transportation management is an essential factor #acility (ocation Transportation cost consistency. ). Inventory management: "nventory management concerns with the decision regarding the amo nt of type & material stored at vario s facility location. These decisions will be affected by the decision made nder the f nction of facility location & transportation e.g.: the location of wareho se & retail o tlets.& modes of transport whether fast or slow will affect the * antity type of material to be stored at facilities location. +. Warehousing management: Wareho sing provide the ade* ate space for the inventory at the right location, npack aging, sorting, & consolidation of material & modification of material elements if re* ired .the role of wareho se provide the economic & service benefit to the logistical system. &conomic benefits: , movement consolidation, break b lk, cross-dock, processing .postpone movement & stock piling. !ervice benefits are spot stocking, assortments, mi'ing & prod ction s pports.

/. Material Handling system: $aterial handling activities are re* ired while nloading, moving & loading material at facilities. These incl de the variety of mechanical e* ipment like %onveyors, #orklift, Tr ck, and %rane. 0ne of the considerations of effective material handling is the minimi1ation of prod ct damage d ring handling. 2. Packaging: "t helps in achieving the ob3ective of maintaining the material in the right condition thro gh the logistics process. 4ackaging decision is impacted by re* irement of other activities like protection & facilitation d ring transportation, material handing & storage as so ltimately c stomer re* irements.

How Logistics

!ustomer "ervice affects the marketing

% stomer !ervice is a core f nction of marketing management b t the deliverables of % stomer !ervice are e'ec ted in (ogistics. Where the marketing team have sec red an order from a c stomer, that order m st be picked in wareho ses and loaded on o tbo nd tr cks for delivery to the intended c stomer5 th s if delivery is delayed and or wrong picking was made, then c stomers feedback will be not good. "n fact, logistics cooks the fish and marketing only go and harvest the fish.

Importance of Inventory !ontrol

#$ Protects from fluctuations in demand
$any a times, the demand forecast of a prod ct is not acc rate. There is always a small difference between the demand forecast and act al demand. 6owever, sometimes, there is a big difference between the demand forecast and act al-demand. !o, there are always chances of fl ct ations in the demand of a material. These fl ct ations can be ad3 sted if there are s fficient items in the stock of inventory. Therefore, proper inventory control protects the company from fl ct ations in demand.

%$ &etter services to customers

"f the company maintains a proper inventory of raw-materials, then it can complete its prod ction in time. !o, it can deliver the finished goods to the c stomers in time. !imilarly, if the company has a proper inventory of finished goods, then it can satisfy the additional demand of the c stomers. !o, inventory control helps the company to deliver goods at the right time as demanded by the c stomers. After making timely delivery, the company can concentrate on giving other services to the c stomers.

'$ !ontinuity of production operations

4roper inventory control helps to maintain contin ity of prod ction operations. This is beca se it maintains a smooth flow of raw materials. !o, there are no shortages of raw-materials re* ired for prod ction process.

($ )educes the risk of loss

4roper inventory control helps to red ce the risk of loss d e to obsolescence 7o tdated8 or deterioration of items. This is beca se it checks all the items reg larly. # rthermore, it sells all the slow-moving items, in time, at the market prices. "t only maintains the right stock at all times. !o, the chances of any item getting o tdated are red ced.

*$ Minimi+es the administrative workload

4roper inventory control helps to minimi1e the administrative work load of p rchasing, inspection, wareho sing, etc. This will red ce the manpower re* irement and will minimi1e the labo r cost too.

,$ Protects fluctuation in output

"nventory control tries to red ce the gap between planned prod ction and act al prod ction. There are cases where the prod ction sched le cannot be followed beca se of: 1. ! dden breakdown of machines,

). +. /.

4roblems in s pply of materials, ! dden labo r strikes, (oss d e to fail re of power s pply, etc.

"n s ch cases, the difference between planned prod ction and act al prod ction can be bridged by inventories held in stock.

-$ .ffective use of working capital

4roper inventory control helps to make effective se of working capital. "nventory control helps in

maintaining the right amo nt of stocks of materials, components, etc. 0ver stocking is avoided. Therefore, the working capital will not be blocked in e'cess inventory.

/$ !heck on loss of materials

"nventory control helps to maintain a check on the loss of materials d e to carelessness or pilferage 7stealing8. "f there is no proper inventory control, then there are more chances of carelessness and pilferage by the employees, especially in the store-keeping department.

0$ Facilitates cost accounting activities

"nventory control facilitates cost acco nting activities. This is beca se, inventory control provides a means of allocating materials cost of prod cts, departments or other operating acco nts.

#1$ 2voids duplication in ordering

"nventory control avoids d plication in ordering of stock. This is done by maintaining a separate p rchase department. This department will do all the p rchasing for the f ll organi1ation. 9o other department is allowed to do p rchasing. !o there will not be any d plication in ordering of stock.

3istinguish 4etween Logistics and "upply !hain management

3istinguish 4etween Logistics and "upply !hain management "upply !hain Management 1. SCM encompasses all those activities 1. It is concerned with getting goods & associated with movement of goods services where they are required & when from raw they are desired material stage to the end ser 2.Supply chain management requires coordination and implementation through 2. Logistics is used within a single various organizations in the supply organization. chain. . Logistics is a part o! Supply Chain . Supply chain management is an management e"tension o! Logistics management. #. $!!ective SCM e"cels in reducing operating costs% improves asset #. Logistics adds value when inventory productivity and reduces order cycle is correctly positioned to !acilitate sales time &. 'he concept o! Logistics management &. 'he concept o! Supply chain is relatively old management is relatively new (. Logistics management is a narrower (. Supply chain management is a concept )roader concept Logistics