Logistics Environment
The strategy consists of a plan that details financial and human resources commitment across physical distribution, manufacturing support and purchasing operations
The purpose of the strategic logistic plan is to provide policies and deploy facilities, equipment and operating systems to achieve performance goals at the lowest-total cost expenditure.
The plan provides guidelines concerning
1) How many , what type, and where distribution warehouses will be located;
2) What inventory assortment will be stocked at each facility;
3) The philosophy and practice of purchasing ;
4) How transportation will be performed and integrated into other areas;
5) Which methods of material handling will be utilized; The basic method of order processing and so forth. the most feature of the plan is that it specifies system design structure through which varied aspects of logistical operations are co-ordinate
The strategy consists of a plan that details financial and human resources commitment across physical distribution, manufacturing support and purchasing operations the purpose of the strategic logistic plan is to provide policies and deploy facilities, equipment and operating systems to achieve performance goals at the lowest-total cost expenditure. The plan provides guidelines concerning
1) How many , what type, and where distribution warehouses will be located;
2) What inventory assortment will be stocked at each facility;
3) The philosophy and practice of purchasing ;
4) How transportation will be performed and integrated into other areas;
5) Which methods of material handling will be utilized; The basic method of order processing and so forth. the most feature of the plan is that it specifies system design structure through which varied aspects of logistical operations are co-ordinate
Logistic Plan:
(1) Industry – Competitive:
This assessment involves a systematic review of opportunities and potential limitations within a firm’s specific industry based on such factors as market size and growth rate, profitability potential, critical success factors, offshore competition and labor issues
(2) Geomarket Differential:
The logistics facility structure of an enterprise is directly related to the customers and supplier location. Population density of the geographical area, traffic, patterns and projected demographic shifts all affect logistics facility location decisions.Demographic information such as age, income and education are fundamental to identify and pinpoint specific market potential. Mapping and understanding industry demographics are essential to effective logistical planning
Among the technology areas that influence logistical systems, the most prominent are information, transportation, material handling and packaging.
Many of these technological impacts viz. computerization like ERP, WAN (Wide Area Network), satellites, scanning, bar coding, RFD (Radio Frequency Distribution) and relational databases have revolutionized logistical practice.
The flow of timely and accurate information is critical to an enterprise.
Integrated databases capable of tracking the movement of materials.
Work in process and finished goods inventory are being used to approve real-time managerial control and decisions support.
Soft-sided trucks intermodal and double stock containers and new routing options are examples of changing transportation technologies.
Robots, computer vision, mechanical storage and an increased usage of automated guided vehicle system (AGVS) are technological tools affecting material handling
Innovative developments in packaging include strong materials, nesting returnable containers, improved pallets and a host of key identification technologies.
Material-Energy As key resources become scarce and there prices rise or their usage is limited owing to environmental impact, a transition to alternatives may be required. Trucking fleets are currently experimenting with alternative fuel conversions.
Economic-Social Projections aggregate demand for transportation is directly related to the level of gross domestic product (GDP). Similarly, when bank interest rates increase, pressure to reduce inventory throughout the marketing channel increases.
The purpose of the strategic logistic plan is to provide policies and deploy facilities, equipment and operating systems to achieve performance goals at the lowest-total cost expenditure.
The plan provides guidelines concerning
1) How many , what type, and where distribution warehouses will be located;
2) What inventory assortment will be stocked at each facility;
3) The philosophy and practice of purchasing ;
4) How transportation will be performed and integrated into other areas;
5) Which methods of material handling will be utilized; The basic method of order processing and so forth. the most feature of the plan is that it specifies system design structure through which varied aspects of logistical operations are co-ordinate
The strategy consists of a plan that details financial and human resources commitment across physical distribution, manufacturing support and purchasing operations the purpose of the strategic logistic plan is to provide policies and deploy facilities, equipment and operating systems to achieve performance goals at the lowest-total cost expenditure. The plan provides guidelines concerning
1) How many , what type, and where distribution warehouses will be located;
2) What inventory assortment will be stocked at each facility;
3) The philosophy and practice of purchasing ;
4) How transportation will be performed and integrated into other areas;
5) Which methods of material handling will be utilized; The basic method of order processing and so forth. the most feature of the plan is that it specifies system design structure through which varied aspects of logistical operations are co-ordinate
Logistic Plan:
(1) Industry – Competitive:
This assessment involves a systematic review of opportunities and potential limitations within a firm’s specific industry based on such factors as market size and growth rate, profitability potential, critical success factors, offshore competition and labor issues
(2) Geomarket Differential:
The logistics facility structure of an enterprise is directly related to the customers and supplier location. Population density of the geographical area, traffic, patterns and projected demographic shifts all affect logistics facility location decisions.Demographic information such as age, income and education are fundamental to identify and pinpoint specific market potential. Mapping and understanding industry demographics are essential to effective logistical planning
Among the technology areas that influence logistical systems, the most prominent are information, transportation, material handling and packaging.
Many of these technological impacts viz. computerization like ERP, WAN (Wide Area Network), satellites, scanning, bar coding, RFD (Radio Frequency Distribution) and relational databases have revolutionized logistical practice.
The flow of timely and accurate information is critical to an enterprise.
Integrated databases capable of tracking the movement of materials.
Work in process and finished goods inventory are being used to approve real-time managerial control and decisions support.
Soft-sided trucks intermodal and double stock containers and new routing options are examples of changing transportation technologies.
Robots, computer vision, mechanical storage and an increased usage of automated guided vehicle system (AGVS) are technological tools affecting material handling
Innovative developments in packaging include strong materials, nesting returnable containers, improved pallets and a host of key identification technologies.
Material-Energy As key resources become scarce and there prices rise or their usage is limited owing to environmental impact, a transition to alternatives may be required. Trucking fleets are currently experimenting with alternative fuel conversions.
Economic-Social Projections aggregate demand for transportation is directly related to the level of gross domestic product (GDP). Similarly, when bank interest rates increase, pressure to reduce inventory throughout the marketing channel increases.
