14 KEY LOGISTICS ACTIVITIES
These can be considered as overall L process and required to facilitate the Flow of goods “POINT OF ORIGIN TO POINT OF CONSUMPTION”
1. Customer Service 2. Demand Fcstg 3. Distrbn Communications
4. Inventory Control 5. MH 6. Order Processing 7. Parts & Service Support 8. Plants & Warehouse selection 9. Procruement 10. Packaging 11. Return Goods Handling 12. Salvage & Scrap Disposal
13. Traffic & Transportation 14. Warehouse & Storage.
Primary activities –
WH / TRANSPORTATION / INV. CONTROL / ORD.PR.
Major costs – either contribute to TC or are essential for effective coordination.
1. Customer Service
Output of L system – time and place ...view middle of the document...
Linked to customer service levels – QRT – trade off between holding levels and servicing customer.
Costs – variable storage costs of obsolescence, time value to the product.
High costs associated with items such as high-tech merchandize, automobiles and seasonal items that become obsolete rapidly.
Purchasing / Procurement
Most Industries 40 – 60%
Activities such as supplier selection, negotiation – price/terms/quantities – supplier quality assessment.
Has grown in importance
Return Goods Handling -
Receiving greater attention today
May take place when problems arise with the performance of the product. – or a customer may simply change his mind.
Complex issue – involves moving small quantities of goods from customer rather than to the customer.
Costs sometimes nine times > than when reaching goods to Customer.
Involved in renewal and disposal of waste materials left over from the production, distribution or packaging processes. These could be temporary storage,...