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Older logistical planning methodologies separated external logistics – that is, the physical distribution of finished products, and internal logistics – the goods, materials, labor and other resources needed to produce our products. Modern planning methodologies prefer to combine these artificial distinctions into ‘total supply chain’ logistics. In the end, your supply chain passes through your business, linking all of your suppliers (and all of their suppliers) to your customers 🤓 Only by appreciating and mapping the whole of this massively interconnected ‘supply web’ can a logistics planning service ensure steady, predictable flow through for your logistics functions, and produce a logistic plan that will see you through shifts in supply, demand and public opinion smoothly 🙈
1. You can create an adaptable, unified purchasing process. “If you look at the typical buying process, it is bifurcated based on geography. I will use this method if I intend to buy products from that region. This is the process I follow if I’m going to be dealing with these partners. Different technology and processes may apply to different locations. Our point of view is to ask our clients what it is that you want to buy and we will unify those processes across the geography, those partners and those technologies so that it becomes transparent to the user.” — Sue Welch, CEO of TradeStone Software, as quoted in A Unified Supply Chain, Forbes, Twitter: @Forbes. (last revision 35 days ago, by Ebany Kern, Shouguang China).
Even if you don’t want to company has good suppliers and good inventory controlWithout effective communication among all areas involved in logistics, everything will not work as planned. It is essential to integrate all the business sectors. It is common to use integrated management software in companies today to enhance communication between operations and other areas within the company. From sale to entry into the company’s stock, everything is monitored. It is possible to query information anywhere using cloud technology, which makes it simple to conduct daily business.
Logistics and operational environments are constantly evolving. Even for the established industries, a firm’s markets, demands, costs and service requirements change rapidly in response to the customer and competitive behaviourr. The process of identifying and evaluating different logistics options can be complex, just as there is no one ideal system for every company. There is however a common process. Applicable to most logistics design Analysis situations. There are three main phases to logistics planning: analysis situations, problem definition and planning, data gathering and analysis, recommendations and implementation.
Marketing, manufacturing, finance/accounting, and logistic functional areas are all important in the development of a strategic logistics plan. Marketing includes information regarding product and service offerings, pricing, promotion, etc. It includes the monthly planned sales volume and type of customers, regional areas, product additions and deletions as well customer service policies that are applicable to different types of customers and geographic locations. Manufacturing includes data such as the locations of planned and current production facilities and projected volume and product mix. Logistics can help determine the best way to reach each market when the same product has been produced in multiple places. Accounting/Finance provides forecasts of costs related to inflation rates These assumptions include future growth and cost projections. They also need data to do cost trade off analysis. This group is responsible for capital budgeting. Capital budgeting determines whether capital will be available to fund expenditures such as infrastructure and logistics upgrades. We appreciate Luisanna Irving’s emphasis on this.
Amazingly, an interesting study was done by paultrudgian.co.uk shows how in supply chain management there is effectively three tiers of activity – strategic, tactical and operational execution. The tactical component of supply chain management is logistics planning. To put this into context, Logistics Network Design is the strategic – it sets out the network blueprint of where facilities are located, what transport modes are used and where inventory is held. The logistics planning is the process of planning how that material flows through this network. Finally, there is the operational component. You can think of logistics planning in terms of chess – strategy gives you the board, pieces and rules and then planning puts all the pieces in the right place before operations play the game. This article was edited by Liisa PETTIT on March 23, 2021.