Summary
Summary of Logistics Processes in Introduction to Logistics and Supply Chain Management (CH-241-A)
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Introduces Procurement, Production and Distribution logistics.
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Logistic Processes• Targets in procurement can be contradictory
• Procurement
Orientation Connection between suppliers and
company
Objects Raw materials and semi-finished products
Functions Obtain most suitable goods and services at
most reasonable prices
• Production Logistics
Orientation Connection between procurement and
distribution logistics
Objects Semi-finished goods in the process of value
adding
Functions Produce goods needed in distribution
logistics
• Examples of Production Logistics: Production planning and control, layout planning
• Production Logistics Performance:
1. Short throughout time
2. High due date reliability Logistics Performance
3. Low inventory level
4. High-Capacity Utilization Logistics Costs
• Distribution Logistics
Orientation Reaching customer
Objects Finished goods
Functions Ensuring correct management of goods
from end of production line to customer
, • Core functions of distribution logistics: Transportation and Warehousing
• Distribution Logistics – Warehousing
Orientation Market-oriented logistic system,
connection between production logistics of
company and procurement logistics of
customer
Objects Objects in distribution logistics are
packages
Functions Use of available capacities by generating
flow of goods to make products available
for the customer
• Intermodal Transportation: The movement of goods in one and same loading unit or
vehicle, which uses several modes of transport without handling of goods themselves in
changing modes
• Disposal Logistics
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