Professional Documents
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and
Strategies
Logistics Goals
The mission of logistics is to plan and co-ordinate all the activities of inbound logistics,
design, procurement, production, outbound logistics, marketing, research and
development.
To achieve the desired levels of delivery services and quality at the lowest possible cost .
Order fulfilment - transaction between the supplier and customer is being satisfied
Delivery fulfilment - Order must also be delivered at the right location and at the right
time.
5.
6.
High quality
Support product life cycle
Logistics strategy
Logistics strategy is the set of guiding principles, driving forces that
helps to coordinate goals, plans and policies between partners
across a given supply chain.
Main strategy
The main strategy which logistics companies have to follow
1.
2.
3.
4.
5.
Coordinating functions
Integrating the supply chain
Substituting the inventory information
Reducing the number of partners
Pooling risks
Significance of logistics
Costs are high
- about 10.5% of GDP domestically
- about 12% of GDP internationally
- a range of 4% to 30% of sales for individual firms, avg, about 10%.
Customers demand high for the supply chain
- Desire for quick response
- Desire for mass customization
An integral part of company strategy
- Generate revenue
- Improve the profit
Strategy of production
Low cost
Increase the quality of production
Production and logistics function must be able to accommodate
Ability to react to variable customer demands at the right cost and margin for your business
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