Student of the Management of Transportation processes faculty

Student of the Management of Transportation processes faculty Реreshchuk Valeryia Functioning of logistics system

Logistics • Logistics can be defined as the science of organizing the Distribution Function.

Logistics Distribution affects: -procurement -manufacturing -marketing -sales -finance Supply characterized: -quality -quantify -rate Replacement characterized: -time -speed -cash costs

Distribution Mission • The distribution mission can be defined as a set of goals to be achieved by the system within a specific product/market context will get shaped by: – – – The product Production method Nature of the product The channel Outlets Customer service levels

Distribution Strategy Corporate objectives Marketing strategies Customer service strategies

Customer service strategies Inventory strategies Warehousing strategies Customer Communication strategy Transport strategies

Role of Logistics Manager • • • Improve profits Increase market share Improve cash flows Introduce new products Better customer service Materials Management, transportation, warehousing, distribution, inbound logistics.

Scope for Reducing Costs A. B. C. D. E. F. G. Process Optimization of Transportation Locating Distribution Centers Effective Distribution Improving the turn around of Inventory Reducing the overall Inventory Increasing Customer service levels

Meaning of logistics systems • • • Inbound Logistics Operations Out bound Logistics Marketing and Sales Service

Design influences Creating demand Satisfying customer expectations Has an impact on the functioning of the logistics system

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