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        The logisticssystem
Saturatedmarket
The logistics system
Healthy market
Ideas
ProductLifecycle
Proliferationof the range
    Price war
Quickleadtime…… fast suppliers
Tobe competitive:Necessaryflexibility
The lessons from Japan: The 4 strenght for a company
Technolgy: to create needs
 The involvementofhumanresources
Quality
Logistics
The different stages of logistics
Before production: Material management
Supply Management
Rawmaterialsinventory Management
                   Production Planning
After production: Distribution management
Finishedgoodsinventory management
Warehouse Management
Transport Management
Logistic Manager
Must ensure …
   The 7 right conditionsRight productIn the right quantityIn the right conditionIn the right placeAt the right timeThe right customerAt the right cost
The 7 right conditions
Why logistics?
A well-organized flow of materials …
… increases the turnover
… because it reduces delivery time
… and improves service levels
But at the same time reduces costs
Inventory cost: before
Inventorycosts: after
Warehouse costs: before
Warehouse costs: after
Transport cost: before
Transport costs: after
Integration of functions
Because there’s an increasing need for logistics? The outsourcing
The Outsourcing ….
       allows respect for delivery times
butincreases the flow ofgoods and information tomanage
Because there’s an increasing need for logistics? To save resources
           Logistics helps to save
Thanks to BPR …
Inventory and transport are razionalized
Because there’s an increasing need for logistics? Customer service
    Are reduced delivery times
    Orders are completed
What does make logistics
Analyze the logistics system
 Designing the logistics system
Build the logistics system
 Manage the logistics system
This involves dealing with:Demand management
  Collect and Control orders
        Sales forecast
This involves dealing with: Inventory management
Location
Coverage level
This involves dealing with: Production planning
Forecasting horizon
 Programming system
This involves dealing with: Supplying
 Choise of supplier
How and When to order?
This involves dealing with: Distribution
Distribution network
 Supply logics
  Warehouse Lay-out
Transport
This involves dealing with: Customer service
What level of service to offer?
This involves dealing with: Organization
Which organizational structure?
Which information system?
   Which automation systems?
THE ANALYSIS OF THE LOGISTICS SYSTEMIt’s necessarytomeasure:- The levelofstocks- The levelof service
Stocks affect the profit
  Service affects the turnover
Where is the leak? Where to intervene?
THE ANALYSIS OF THE LOGISTICS SYSTEMThe operating cycle is estimated to:
Establish the rationality .…
… and coordination
To eliminate the irrazionality …
… and inefficiencies
The analisys of the logistics system:THE  INFRASTRUCTURES
THE INFRASTRUCTURESTo verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :1)	CHECK THE DISTRIBUTION NETWORK;
THE INFRASTRUCTURESTo verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :2) CHECK THE FUNCTIONAL REQUIREMENT:	- minimum, medium and maximum annual pallets stock      	  per warehouse;	- supply frequency;	- structure and number of orders to evade;	- type of product to manage.
THE INFRASTRUCTURESTo verify that the logistics infrastructures of the company are adequate to accommodate the operating cycle must do three things :3) CHECK THE TECHNICAL SPECIFICATIONS:	- number of loading and unloading doors;	- lay-out;	- storage and handling system.
The analisys of the logistics system:How should be the organizational structure?
Modern
Efficient
The analisys of the logistics system:When the organizational structure is the right one?
There’s a process responsible
The organization chart in defined
The job descriptions and the procedures are formalized and applied
  Working to target
Inventory management
Calculating turnover rateIR = Dt / St
Calculating duration indexID = 1 / IR
S average=(s n  + s n  + .. s n ) /T12n12nCalculating weighted average stock
Customer service: What is it?
     Large assortment
Minimum order
    Delivery frequency
    Efficiency information system
   After sales support
   Suitable packing
  Adequate transportation
Fast and reliable delivery Ho do you get?
Speed
   Product availability
 Flexible production system
Customer service: Ho do you measure?
     Speed
Punctuality
Satisfied demand
Average delay
          Readiness
Design of a new logistc systemWe start measuring…
The service level indicators …
… analyzed from customer perspective
Choice of strategy
Innovation strategy:  Flexible logistics
Cost strategy:  Economic logistics
Service strategy:   Rapid logistics
   The main components of the logistics system are 4:Distribution network
Transport
Stocks
Supply   Flexible Logistics:Lean distribution network
Rapid logistics: Branched distribution network
Economic logistic:Centralized distribution network
Flexible logistics: Rapid transport
Rapid logistic: Urgent transport
Economic Logistics:Economics transport
              The product life cycleThe 4 stages:IntroductionGrowthMaturityDeclineWhatis the right logisticsforeach?
    Introduction: low sales  Availability
   Growth: increase sales   Punctuality and quality
Maturity: constant sales   Customization
Decline: reduced sales         Low service
Choiceof service level  … tobe competitive
       Ensure integration
Formalize the design of the logistics systemProcesses and methods
Promotechange
Forecast
Are made to:
Are made to: allocate resources better
What are the main business forecast?
Human resources requirements
Raw materials
 Energy
Technological system
 Financial resources
Finished products selling
Forecasting horizon very short (less 1 month)
 short ( from 1 to 6 months)
 medium (less two years)
 long (more than two years)Forecast details item
 product family
 filial
 etc. etc.Supply logistics service in house contract: example
Under contract services bundling
 picking and handling
 external storage    Loading and unloading

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The logistics system