Integrated Logistics Management

Logistics• planning, implementing, and

controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Integrated Logistics• Process of anticipating customer needs and

wants• Acquiring the capital, materials, people,

technologies and information necessary to meet those needs and wants

• Optimizing the goods-or-service-producing a network to fulfill customer requests

• Utilizing the network to fulfill customer request in a timely way

Integrated Logistics Management

• Cross functional teamwork inside the company

• Building channel partnerships

• Third party logistics

Objectives of Integrated Logistics Management

• Rapid response• Minimum variance• Minimum inventory• Movement consolidation• Life cycle support

Variables affecting the Evaluation and Growth of Integrated Logistics:

• Growth of the consumer awareness and the marketing concept

• Introduction of the computer• Globalization of business and the development of

world trade blocks• Growth of JIT manufacturing, supply management,

transportation and electronic data interchange (EDI) in the 1980s and 1990s

• Physical Distribution• Materials Management• Logistics Engineering• Business Logistics• Logistics Management• Integrated Logistics Management• Distribution Management• Supply Chain Management

Activities related to Integrated Logistics

Operations involve in Integrated Logistics

• Inbound Logistics• Conversion/Operations• Outbound Logistics

Key factors in effective Logistics System:

• Shippers• Suppliers • Carriers (railroad, air, water, pipeline)• Warehouse providers• Freight Forwarders• Terminal Operators (ports)• Government (regulator of logistics)

Why Logistics?

• Effective logistics is becoming a key to winning and keeping customers

• Logistics is a major cost element for most companies

• The explosion in product variety has created a need for improved logistics management

• Information technology has created opportunities for major gains in distribution efficiency