Post on 18-Jan-2016
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The wonderful world ofLOGISTICS
STEFAN NYSTRÖM
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LOGISTICSAGENDA
The macrophilosophy History Logistics within the company Working as a logistician
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WHAT IS LOGISTICS ?
Approach and principles to plan, organize, coordinate, direct and control the flow of material from rawmaterial supplier to end consumer.
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THE LOGISTIC CHAIN
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Skriv namn hä rSkriv tite l h ä r
Skriv namn hä rSkriv tite l h ä r
Skriv namn hä rSkriv tite l h ä r
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PRIMARY GOAL ?
PROFITABILITY
RECIPE:
1. Flexible manufacturing 2. Quick distribution
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the DuPont Chart SALES + GROSS COST OF PROFIT SALES
- NET PROFITDEPRECIATION - OTHER / NET PROFITFINANCIAL EXPENSES MARGININCOME + SALES x RETURN ON
INVESTMENTCURRENT / INVESTMENTASSETS TURNOVER +INVENTORIES TOTAL + INVESTMENTS
FIXED AND OTHER ASSETS
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HISTORY
French general, Marquis de Longis, planning the supply of the front line, late 17th century.
World War 2, invasion in Normandie. ’Desert storm’, 10.000.000 tons of arms
ammunition and materials from USA and Europe.
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MARKETING MIX Philip Kotler
4PPRODUCTPRICE
PROMOTIONPLACE
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COST APPORTIONMENTProduction Distribution
1800 19002000
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LOGISTICS within the company
PUR CHASINGD EPT
PROD UCTIOND EPT
SAL ESD EPT
SU PPL IESD EPT
M AN AG IN GD IR EC TO R
The ´Pipe´syndrom
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INVENTORY
What levels?
When?
Where?
WHY?
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WHY INVENTORY ?
Lead time is longer than promised delivery time
Seasonal fluctuation in raw materials Seasonal fluctuation in demand Achieve transportation economy Forecast errors Achieve production economy Advantage of quantity purcase discounts
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ABC - classification
SALES
0%
20%
40%
60%
80%
100%
VALUE
20% 40% 60% 80% 100%
Assortment / Customer
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Purchasing
Economic Order Quantity or the ’Wilson formula’
Q = 2KDVW
Q = Optimum purchase quantityK = Cost per orderD = quantity needed per periodV = value of product per unitW = Storage cost / 100 ( Internal interest rate)
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Purchasing, scheme.
Purcasing quantity
Cost
Cost per order
Total cost
Storage cost
Economic order Quantity
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Purchasing, safety buffer
Leadtime
Safety buffer
Ordered quantity
Time
Stock
Ordering point
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Purchasing, philosophies Closer relationships seller - buyer Outsourcing Customer ordered production Just - in - time philosophy Computer aid through MRP-systems
(Materials Requirements Planning) VMI ( Vendor Managed Inventory) Selfbilling
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Production
JIT TQC Flexible manufacuring Kanban Shorter adjustment times Simplify things Lean
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Rationalization of capital
Rawmtrl. Production
Factorywarehouse
Transport
Terminal
Time
Capital tied up
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Customer service
What does our competitors offer ?
Vhat does our customer demand and what does he need ?
What does a higher service level give in higher sales ?
What will it cost us ?
Cost
Income
Profit
Service
currency
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The purpose of a logistic system
the right product in the right amount at the right place at the right time at the right cost
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The logistic chain,again!
Information system
Components Inventory
Supplier Customer
Purchasing Manufacturing Distribution
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