Presentation on theme: "International Logistics"— Presentation transcript:
1 International Logistics Managementdr Marian Krupa
2 AGENDA: Introduction to the International Logistics Management International Supply Chain Management (SCM)IT and International Logistics Management – ERP software overview (SAP on-line)International transportation systemsInternational logistics structures and networks managementStrategic and operational information management in Logistics - towards Global Business Inteligence.International Logistics Management – case studydr Marian Krupa
5 Logistics: originThe term logistics comes from the begining of 19th century, from French word „logistique”.The first time the term „logistique” is used in the military literature it is in 1830, what it meant major-géneral de logis.The first logistic group in military was developed during the so called the First Polish War (1807) in Ostróda by Napoleon Bonaparte.Logistics was a military term – the organisation of moving, lodging and supplying troops and equipment.
6 Logistics: definition What is logistics?The detailed coordination of a complex operation involving many 1) people, 2) facilities, or 3) supplies[Oxford Dictionary].The management of the flow of resources, between the point of origin and the point of destination in order to meet some requirements, for example of customers or corporations[Wikipedia].The coordination and optimazation of 1) phisical goods, 2)people and 3) information flow[M. Krupa].
7 Logistics: definition Logistics – 8R (right) Rule, gettingthe right productin the right quantityat the right quality,in the right place,at the right timefor the right customerat the right costin the right way (to cause as a little damage do the environement as possible.Mangan, Lalwani, Butcher, Global Logistics and Supply Chain Management, Wiley & Sons, 2008.
8 Logistics: road map Enterprise / SC Logistics fields Procurement LogisticsProduction LogisticsDistribution LogisticsMarketsuppliersEnterprise / SCMarketcustomerAfter sales LogisticsWAREHOUSEMaterials, parts, componentsPRODUCTIONWarehouse – in productionWAREHOUSEProducts and goods of saleReturnsDisposal LogisticsReverse LogisticsGoodsflowInformationflowLogistics fieldsSource.: P. Blaik, Logistyka, PWE, Warszawa 1996, s. 45.
9 Logistics: total cost model Optimazation dilema:Service costsOrder costsWarehouse costsPackaging costsTransportation costsInventory costsRisk costs[W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14].
10 Logistics: total cost model Optimazation dilema:When you decrease the costs in one area of business activity:You creat extra costs in another:TransportationInventoryTOALCSPackagingDamage costsSales ordersTransportationPurchasingInventoryServiceWarehouseInventoryProduction[W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14].
11 Logistics: total cost model Optimazation model: cost A and cost BCostsCost type BTotal costsCost type ACustomer satisfaction[W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14].
12 Logistics: total cost model Optimazation model: transportation vs. warewhouee costs and mean of transportationCostsTransportation costsTotal costsWarehouse costsSea Road AirMean of transportation[W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14].
14 ? Management: key questions What is (logistics) management? Who are (logistics) managers?What do (logistics) managers do?What is a (logistics) organization??
15 Management: key questions What is management?Coordinating work activities so that they are completed efficiently and effectively with and through other people.Wealth creating activity.The art of using human and material resources to produce and market (sales and distribution) goods and services.Robbins, Coulter, Management, Pearson/Prentice Hall, USA 2005, p. 7.Archer, An Introduction to Canadian Business, McGraaw-Hill Ryerson Ltd, Canada 1982, p. 450.
16 Management: key questions Efficiency and effectiveness in logistics?Efficiency is „doing things right” (economize, costs efficiency).Effectiveness is „doing the right think” (goal achivement).Efficiency – ability to achieve high levels of output with given resources.Effectiveness performed efforts support the stated goals of the business.R. Schulteis, M. Sumner, Management Information Systems, Irwin, USA 1989, p. 68.
17 Management: key questions What is (logistics) management?All about decisionsRisk takingObjectives (priorities)Problem solvingAsking right questionsSatisfying people / delivering satisifactionPlanning, organizing, directing & controlling?.Robbins, Coulter, Management, Pearson/Prentice Hall, USA 2005, p. 7.
18 Management: key questions Who are managers?Someone who works with people through people for people.A person who is effective and efficient.A proffesional man/woman who knows the methods and techniques of management.Everyone…
19 Management: key questions Who are managers?A professional working in the field of logistics management is called a logistician.
20 Management: key questions What do general managers do (1)?Make decisions – solve problemsTake risk – create valueLearn and teach othersDeliver customers / stakeholders satisfactionWork and communicate with peopleCreate visions and implement business strategiesPlan, organize, direct & control day-to-day activities
21 Management: key questions Who do logistics managers do (2)?Sourcing and purchasing inputsManaging inventoryMaintaining warehousesArranging transportation and deliveryOptimizing logistics infrastructure and resourcesPlanning and developing IT infrastructurePreparing strategies, searching for new visionsDeveloping business intelligence tools
22 Management: key questions What is a logistics organization?KnowledgeValue(Intangible)Electronic MarketCustomer/ BrandingNetworking(Global)People(Cultures)
24 Logistics Management: Logistics management - the governance of supply chain functions (see Supply Chain Management).Logistics management activities typically include:inbound and outbound transportation management,fleet management,Warehousing management,materials handling,order fulfillment,logistics network design,inventory management,supply/demand planning.
25 Exam Questions (1): Explain origin and define term logistics. Why logistics concept is of an interest to manufacturers?Define best practices in area of logistics performance (KLPI).What are the benefits of deregulation of transport markets?