Logistics 'Logistics is that part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet the customers' requirements'.

Logistics Comprises of Materials management Physical distribution management. Materials management Input Phase i.e. the movement of items from suppliers into the organisation. Physical Distribution management Output Phase i.e. the movement of items from the organisation to its customers

Logistics Materials Management Methods Materials Requirement Planning (MRP) Only for dependant demand Need Production Schedule and the Bill of Materials. Key objectives: Ensure that materials available in time. Minimise stock holding. Enable the planning of purchasing, manufacturing and dispatch. Manufacturing Resource Planning (MRPII) Takes into account manpower, machines and money. Enterprise Resource Planning (ERP) and ERPII Management of all functions within an organisation e.g. finance, logistics, manufacturing, supplier management, human resources. Includes the sharing of information from the entire supply chain.

Logistics

Logistics Physical Distribution Methods Distribution Requirements Planning DRP is useful to any organisation that distributes its products to more than one customer. Customers may be internal or external to the organisation. The key objectives of DRP are to: Ensure that finished goods are distributed to meet customer requirements. Minimise stock holding of finished goods. Reduce distribution and transport costs. Many organisations do not consider distribution to be one of their core business activities, this explains the recent trend by many to outsource distribution and transport functions. Logistics and the Supply Chain Logistics Resource Planning is the combination of MRP and DRP. Traditionally supply chains were fragmented as illustrated below. The implementation of LRP has encouraged the integration of the supply chain, also illustrated below.

Logistics

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