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InternationalLogisticsManagement dr Marian Krupa.

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1 InternationalLogisticsManagement dr Marian Krupa

2 AGENDA: 1.Introduction to the International Logistics Management 2.International Supply Chain Management (SCM) 3.IT and International Logistics Management – ERP software overview (SAP on-line) 4.International transportation systems 5.International logistics structures and networks management 6.Strategic and operational information management in Logistics - towards Global Business Inteligence. 7.International Logistics Management – case study dr Marian Krupa

3 1.Logistics Management concept logistics – management – logistics management

4 Logistics

5 origin Logistics: origin The 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 definition 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 definition Logistics: definition Logistics – 8R (right) Rule, getting the right product in the right quantity at the right quality, in the right place, at the right time for the right customer at the right cost in 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 road map Logistics: road map Market suppliers Market customer Source.: P. Blaik, Logistyka, PWE, Warszawa 1996, s. 45. WAREHOUSE Materials, parts, components WAREHOUSE Products and goods of sale PRODUCTION Warehouse – in production Enterprise / SC Returns Goods flow Information flow Procurement Logistics Distribution Logistics Production Logistics After sales Logistics Reverse Logistics Disposal Logistics Logistics fields

9 total cost model Logistics: total cost model Order costs Transportation costs Risk costs Packaging costs Inventory costs Warehouse costs Service costs [W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14]. Optimazation dilema:

10 total cost model Logistics: total cost model Transportation Packaging Sales orders Purchasing Service Inventory Damage costs Transportation Inventory Warehouse Production TOTALCOSTSTOTALCOSTS When you decrease the costs in one area of business activity: You creat extra costs in another: [W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14]. Optimazation dilema:

11 total cost model Logistics: total cost model Cost type A Cost type B Total costs Customer satisfaction Costs [W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14]. Optimazation model: cost A and cost B

12 total cost model Logistics: total cost model Warehouse costs Transportation costs Total costs Mean of transportation Costs [W. Szczepankiewicz, Logistyka marketingowa, AE w Krakowie, Kraków 1996, s. 14]. Sea Road Air Optimazation model: transportation vs. warewhouee costs and mean of transportation

13 Management

14 key questions Management: key questions What is management? What is (logistics) management? Who are managers? Who are (logistics) managers? What do managers do? What do (logistics) managers do? What is a organization? What is a (logistics) organization? ?

15 key questions Management: key questions Coordinating work activities so that they are completed efficiently and effectively with and through other people. Coordinating work activities so that they are completed efficiently and effectively with and through other people. Wealth creating activity. Wealth creating activity. The art of using human and material resources to produce and market goods and services. 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 What is management? What is management?

16 key questions Management: key questions Efficiency and effectiveness in logistics? Efficiency and effectiveness in logistics? R. Schulteis, M. Sumner, Management Information Systems, Irwin, USA 1989, p. 68. Efficiency is doing things right (economize, costs efficiency). Efficiency is doing things right (economize, costs efficiency). Effectiveness is doing the right think (goal achivement). Effectiveness is doing the right think (goal achivement). Efficiency – ability to achieve high levels of output with given resources. Efficiency – ability to achieve high levels of output with given resources. Effectiveness performed efforts support the stated goals of the business. Effectiveness performed efforts support the stated goals of the business.

17 key questions Management: key questions All about decisions All about decisions Risk taking Risk taking Objectives (priorities) Objectives (priorities) Problem solving Problem solving Asking right questions Asking right questions Satisfying people / delivering satisifaction Satisfying people / delivering satisifaction Planning, organizing, directing & controlling Planning, organizing, directing & controlling ?. ?. Robbins, Coulter, Management, Pearson/Prentice Hall, USA 2005, p. 7. What is (logistics) management? What is (logistics) management?

18 key questions Management: key questions Someone who works with people through people for people. Someone who works with people through people for people. A person who is effective and efficient. A person who is effective and efficient. A proffesional man/woman who knows the methods and techniques of management. A proffesional man/woman who knows the methods and techniques of management. Everyone… Everyone… Who are managers? Who are managers?

19 key questions Management: key questions A professional working in the field of logistics management is called a logistician. A professional working in the field of logistics management is called a logistician. Who are managers? Who are managers?

20 key questions Management: key questions Make decisions – solve problems Make decisions – solve problems Take risk – create value Take risk – create value Learn and teach others Learn and teach others Deliver customers / stakeholders satisfaction Deliver customers / stakeholders satisfaction Work and communicate with people Work and communicate with people Create visions and implement business strategies Create visions and implement business strategies Plan, organize, direct & control day-to-day activities Plan, organize, direct & control day-to-day activities What do general managers do (1)? What do general managers do (1)?

21 key questions Management: key questions Sourcing and purchasing inputs Sourcing and purchasing inputs Managing inventory Managing inventory Maintaining warehouses Maintaining warehouses Arranging transportation and delivery Arranging transportation and delivery Optimizing logistics infrastructure and resources Optimizing logistics infrastructure and resources Planning and developing IT infrastructure Planning and developing IT infrastructure Preparing strategies, searching for new visions Preparing strategies, searching for new visions Developing business intelligence tools Developing business intelligence tools Who do logistics managers do (2)? Who do logistics managers do (2)?

22 key questions Management: key questions What is a logistics organization? What is a logistics organization? KnowledgeValue(Intangible) Electronic Market Customer/ Branding Networking(Global)People(Cultures)

23 LogisticsManagement

24 Logistics Management: Logistics management - the governance of supply chain functions. Logistics management - the governance of supply chain functions (see Supply Chain Management). Logistics management activities typically include: 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. get.com/definition/logistics- management

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?

26 Questions ? dr Marian Krupa


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