Logistics Cycle
LOGISTICS CYCLE
Therefore the emphasis is on designing the logistics management information system and inventory management activities, rather than central-level activities such as quantification and procurement. However, as the logistics cycle demonstrates, all these functions are interrelated and so when the logistics system is designed, these other activities must be considered, such as ensuring that the data required for quantification are collected and that quality monitoring is incorporated into the system.
In this context, the logistics system to be designed includes the following:
• A logistics management information system (LMIS) capable of collecting and reporting timely logistics data to inform quantification, procurement, storage, and distribution
• An inventory control system (ICS) that ensures proper management of stock levels
• Storage and warehousing that are capable of storing commodities so that integrity and quality are maintained
• A distribution system for efficient movement of commodities from manufacturers through to facilities
• Trained personnel in logistics at facilities at all levels of the system and with adequate supervision and support from higher levels
Key Supply Chain decisions Supply Chain decisions Description Examples of activities Production decisions Decisions relating to the planning design and management of the entire manufacturing process including the capacity and ability for the company to produce. production planning and control unit size handling systems
Inventory decisions Decisions relating to the design and management of storage processes, policies and procedures of inventories across the supply chain what to stock where to stock How much to stock
Transportation decisions decisions determine transportation
Therefore the emphasis is on designing the logistics management information system and inventory management activities, rather than central-level activities such as quantification and procurement. However, as the logistics cycle demonstrates, all these functions are interrelated and so when the logistics system is designed, these other activities must be considered, such as ensuring that the data required for quantification are collected and that quality monitoring is incorporated into the system.
In this context, the logistics system to be designed includes the following:
• A logistics management information system (LMIS) capable of collecting and reporting timely logistics data to inform quantification, procurement, storage, and distribution
• An inventory control system (ICS) that ensures proper management of stock levels
• Storage and warehousing that are capable of storing commodities so that integrity and quality are maintained
• A distribution system for efficient movement of commodities from manufacturers through to facilities
• Trained personnel in logistics at facilities at all levels of the system and with adequate supervision and support from higher levels
Key Supply Chain decisions Supply Chain decisions Description Examples of activities Production decisions Decisions relating to the planning design and management of the entire manufacturing process including the capacity and ability for the company to produce. production planning and control unit size handling systems
Inventory decisions Decisions relating to the design and management of storage processes, policies and procedures of inventories across the supply chain what to stock where to stock How much to stock
Transportation decisions decisions determine transportation