International Foundation Logistics Week 1

7/31/2019 International Foundation Logistics Week 1

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International Foundation Logistics Week 1 1

WELCOME TO LOGISTICSMANAGEMENT

How to ensure that customers needs

are fulfilled


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Agenda

Getting to know each other

Purpose of this course

Structure of the course

What is logistics?

Place and function of logistics in anorganization


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Introducing

Oliver Ntenje

34 years old

IBMS HAN

Agricultural University

Wageningen


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Introducing

Reinder Pieters

University of

Groningen

Philips

SAC

Cologne


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Purpose of this course

To make you understand the role and

importance logistics and purchasing play inmodern day commerce and industry

To get rid of the idea that logistics is simply

nothing else but


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TRANSPORTATION!


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Structure of this course

6 weeks lecturers

Exam 40 till 50 MC questions

Scholar Sheets

Test exam (only in week 6)



Logistics and the supply chain

Take this simple example of a supply chainof the flow of goods

Take this simple example of a supply chainof the flow of goods

It seems to be easy!



But in fact it will need a lot oforganization!



Management

information

Logistic goal: optimizing Customer service

Logistic performance Indicators

Basic structure

Organisation

The concept of Logistics



What is meant by logistics?

Many different definitions are available the

old definition refers to its role andimportance in the military:

The branch of military science concerned

with troop movements and suppliesThe New Lexicon Websters Dictionary of the English language 1990 edition p 582



Battle of Arnhem 17 sept 1944 Supply

Normandy

Antwerp

Dwight. D.

Eisenhower

Crusade in

Europe 1948



We will use the definition of

APICS:

Logistics is the process of planning, implementingand controlling the efficient, effective flow andstorage of raw materials, in-process inventory,

finished goods, services, and related information

from point of origin to point of consumption(including inbound, outbound, and external

movements) for the purpose of conforming tocustomer requirements

American Process and

Inventory Control Society



It incorporates:

Control

Planning

Flows of goods and material

Flows of Information

In short: An Integral Approach (van zand totklant)

Optimal - efficient and effective



Lets start with some useful symbols

Production or

assembly process Storage or

warehouse

Physical flow

Information flow



Labour

Plastic

Machines

Coffee

cups

Coffeecups

Coffeecups



An example: the supply chain of

Heineken

barley malting brewing bottling central shop customer

warehouse

All parts of the chain should beAware of and focused on the

Final customer



Procurement Production Final Stock Sales

Purchase

Production-

proces

Sales/

Distribution

Stock Stock

Planning


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Integral planning of supply chain

PurchaseProduction-

proces

Sales/

Distribution

Stock Stock


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LOGI

STICS

TECHNICALDEPARTMENT

MARKETING

FINANCIAL

ADMINISTRATION

PRODUCT

DEVELOPMENT

INFORMATION

MANAGEMENT

STAFFMANAGEMENT


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SupplierMaterial Production

&

planning

Products Retailers

Etc.

Final

customerOrganisation

Logistic

Management

Material

Management

Physical

Distribution


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Materials Management (MM)

Production

planning and

control

Purchasing/

procurement

storagematerials

handling

Materials

Management


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Physical Distribution

Storage

finished products

Warehousing transportation

Physical

Distribution


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Challenge for logistics

Conflicted interests

Product

ionefficiency

Minim

izinginve

ntory

costs

Deliverywithin1hour

Widep

roductrange


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We all want to achieve a

competitive advantage

If we can make this work: being effective/

efficacious and efficient then well create

competitive advantages

Added value through logistics


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Logistics is the last frontier for a

company to make profit

Peter Drucker

(Marketing guru)

Quote:


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Competitive advantage throughlogistics (1)

Logistics design should provide astrategic fit:

1. Understand the customer Quantity

Response (customer-to-customer)

Variety

Service level Price

Innovation


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2. Understanding the demand pattern Lumpiness/Quantity

Certainty


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Order qualifiers versus order winners

both are specific to

individual product/market-combinations


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Order Qualifiers and Winners

Order qualifiers are

characteristics that are the

ante to enter the market

Order winners are

characteristics that win

the customers purchase


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Logistics performance


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Improving profitability:

Use ROI or DuPont model

Shows that a small decrease in costs willhave a huge impact in the return on

investment

Or could mean less ROI if you increasecosts!


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ROI with lower costs


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ROI using less stocks


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Summary

Logistics is all about the whole supply chain

and

To ensure that customers are satisfied

And that costs are low

International Foundation Logistics Week 1

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