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PART ONE – AN OVERVIEW OF SUPPLY CHAIN MANAGEMENTThis part introduces the broad concept of supply chain management. It defines some key terms and discusses ideas that are developed in the rest of the book.
CHAPTER 1 – LOGISTICS AND SUPPLY CHAINSRole of logisticsSupply chains Aims of logisticsActivities of logisticsImportance of logistics
LEARNING OBJECTIVESUnderstand the broad role of logisticsSee how logistics support the operations of an organisationDescribe the role and structure of supply chains Discuss the overall aims of logisticsUnderstand how logistics contribute to organisational performanceAppreciate the balance between customer service and costsList the activities within logistics and understand the relationships between themRecognise the importance of logistics to every organisation
Definition Logistics is the function responsible for all aspects of the movement and storage of materials on their journey from original suppliers through to final customers.It follows that every organisation is concerned with logistics (and not just manufacturers)On a national scale logistics is a huge industry
Place of logisticsEvery organisation supplies a product, which is the combination of goods and services that it passes to its customersOperations are the activities that make the product, converting inputs into desired outputsMaterials is a general term for everything that an organisation moves to support its operationsLogistics is responsible for moving and storing all the materialsThis includes inward logistics (moving inputs into the organisation), materials management (moving them through operations), and outward logistics (moving products to customers)
Materials move through a series of organisationsA supply chain consists of the series of activities and organisations that materials move through on their journey from initial suppliers to final customers.Every product has its own unique supply chainSupply chains develop to give efficient flows of materialsThe
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