Integrated Logistics Management - Group Work

Group Members:• Brayan Baldeon• Luis Ordoñez Zeas• Karla Pacheco Vera• Teresa Revelo

Navarro 0,5• Maria Jose Basurto 0,5• Maria Gabriela Garcia• Cristina Medina 0,5

Lecturer: Mr. Max Galarza

Date: 19-08-2015GRADE: 9

Integrated Logistics

Integrated logistics give full assistance to the company in terms of inventory control, transportation systems and any other matter related to the field of distribution.

Objective

Integrated logistics, aims to achieve greater efficiency in the supply chain placing the products in the desired location and at the right time. Thus, integrated with a comprehensive logistics service company get gain flexibility, reduce costs, minimize response time, better serve their customers and increase the profitability of their production process.

OBJETIVE OF SUPPLY CHAIN MANAGEMENT – ILM.

Raw material and other acquisition costs In-bound transportation costs Facility investment costsDirect and indirect manufacturing costs Direct and indirect distribution center costs

The traditional objective of supply chain management is to minimize total supply

chain cost to meet fixed and given demand.

ORDER PROCESSING Order processing starts with the receipt of an order from a

customer. The first step in most order-processing systems is to verify the accuracy of the order

The next step is to verify the customer’s credit or ability to pay. After determining from which inventory point to ship the goods, instructions are sent to that warehouse to fill the order. At the warehouse an “order picking list” is given to a warehouse worker, who assembles the specific order.

In the packing area, it is checked and packed for shipment, and the package is labeled. The traffic manager prepares the transportation documents and notifies a carrier to pick up the shipment.

An invoice for the goods is sent to the buyer, and various inventory and financial records are updated.

The shipper uses the term “order cycle” to indicate the span of time between receiving and shipping the order. The buyer uses the phrase to indicate the span of time between placing and receiving the order.

Managing InventoryIt has been

established that the role of inventory

management is to ensure that stock is

available to meet the needs of the

beneficiaries as and when required.

Inventory represents a large cost to the

humanitarian supply chain. This is made up of the cost of the inventory itself, plus the cost of transporting the goods, cost of managing the

goods (labor, fumigation, repackaging, etc) and keeping the goods in

warehouses. The inventory manager's job is to make inventory available at the

lowest possible cost

To achieve this, the inventory manager must constantly liaise with the programs to keep abreast

of changing needs and priorities. The warehouse

must always have sufficient stocks to cover

the lead-time for replacement stocks to

avoid stock-outs.

TRANSPORTATION

Transport is responsible for moving

finished products, raw materials and

inputs, between companies and customers

that are geographically dispersed, and adds

value to products transported when they

are delivered on time, undamaged and in

the required amounts.

Common forms of transportation include:• Ground transportation: Trucks, cars• Air transport: Planes• Wather transportation: Vessels• Pipeline• Rail transportation: Train

THE OBJECTIVE:

Getting the right product to the right place, in the right quantity, at the right time, in the best condition and at an acceptable cost in order to satisfy customers’ demands.

WAREHOUSINGWarehouse and distribution strategies often involve temporary, seasonal or long-term warehousing, or can require a partner to help manage supply chains. Employs a unique combination of warehousing and regional distribution solutions that deliver dependable resources and cost-effective solutions to fulfill your receiving, staging and delivery requirements. 

Warehousing SolutionsWe can quickly get you in and out of markets without long-term commitments and unnecessary capital commitments.Warehousing gives you the flexibility to adapt the amount of products being warehoused and helps you gain control over your costs and changing market conditions. It also increases your speed to market and reduces fixed costs.

INTEGRATED LOGISTICNETWORK

These network performance target areas are dedicated to the overall optimum of a logistic network and in addition, finally contibute to a very large extent to improvements in transcorporate as well as corporate logistics with respect to quality, costs, delivery and flexibility.

Target area supply chain collaboration: objective are to achieve strategic alignment as well as integrated and collaborative business processes.

Target area supply chain coordination: objective is to achieve a seamless information and material the entire supply chain.

Target area supply chain transformability: The better the entire network is prepared for future changes in customer demand and new market requirements.

OVERVIEW OF SUPPLY CHAIN MODELS

Analytical IT involves the implementation and application of type of mathematical models.Descriptive models that modeling practitioners develop to better understand functional relationships in the company and the outside world.

FORECASTING MODELS

Predict demand for the company’s finished products, the cost of raw materials, or other factors, based on historical data.

COST RELATIONSHIPS

Describe how direct and indirect costs vary as functions of cost driver

RESOURCE UTILIZATION

Describe how manufacturing activities consume scarce resources.

SIMULATION MODELS

Describe how all or parts of the company’s supply chain will operate over time as a function of parameters and policies.

OVERVIEW OF SUPPLY

CHAIN MODELS

EFFECTIVE LOGISTICS MANAGEMENT OPERATION:

1. Increase revenue.2. Improve operating cost structure.

3. Reduce overall transportation costs.4. Improve customer service.

The management- oriented integration of all logistics functions and processes becomes more important, because its

conditioning not only effective organizationand enterprise modernization, but its also opening new possibilities of solving problems and using potential effects in the operating and the

strategies.

 Netgraphy

http://log.logcluster.org/response/warehouse-management/

http://www.choicesmagazine.org/2005-4/supplychain/2005-4-14.htm

http://pymerang.com/logistica-y-supply-chain/logistica/distribucion/modelos-de-distribucion/309-logistica-de-distribucion

http://www.logility.com/solutions/transportation-and-logistics-optimization