The input to generate the Logistics strategy is an accumulation of Logistics requirements for different market segments. The updated strategy will be enabled by any revision of the core and extended supply chains. Just as no ideal logistical system is suitable for all enterprises the method for identifying and evaluating alternative logistics strategies can vary extensively. However there is a general process applicable to most logistics design and analysis situations. Definition of business units and product lines to be included, Nature and magnitude of change in market preferences and buying patterns. Although the management may be able to prepare a consolidated sales forecast it is difficult to prepare a market-by-market projection of sales. If a logistics center is bursting at the seams, experience is needed to … The Table identifies the most likely steps using the Logistics strategy part of the Supply Chain strategy as an example: While long term goals and objectives are important, the shorter term (next three to five years) opportunities are of more interest, as this is the time-frame in which the current Supply Chain strategy will operate. For that reason, we also know exactly where the sticking points are that need to be tackled. Order Qualifiers and Winners can be influenced by the activities of competitors and the stage in the life cycle of the item (introduction, growth, maturity or decline). To begin the process the organization needs to have a passion for what it does and a clear idea of what it hopes to achieve. In many cases Supply chain is often referred to as Logistics and vice e versa. Customers and markets ate often aggregated by location, type, size, order frequency, growth rate, and special logistical services to reduce analysis complexity. : +1 864 350 9313. While logistics planning would deal with the details of procurement logistics, finished goods distribution, sales order fulfillment, and inventory management, etc. Director Center of Competence While I am away, previous posts will be repeated via Twitter #supplychain, # procurement, #logistics. Similarly in any business organization, the successful operations depend upon visibility and control over the logistics process managed through and with excellent logistics service provider backbone and network. I have co-authored a book on these subjects, published by McGraw-Hill. With more than 1,500 successful projects in logistics planning, we understand the importance of high-level planning from concept to realization. Visioning: this includes the systematic development of an organizational consensus regarding the key inputs to the logistics planning process as well as identification of the potential alternative logistics approaches. The majority of data required in a logistical study can be obtained from internal records. For situations when data are extremely difficult to collect or when the necessary level of accuracy is unknown, sensitivity analysis can be used to identify data collection requirements. There are four steps in this part of the phase namely: –. The support of up- and downstream members along the complete supply chain is very important. it helps to leverage certain advantages the firm has in the marketplace. Phone However, the three Supply Chain functions must also have a market perspective of what they do, to enable the best mix of resources to be provided. Get a clear idea of the requirements of the various segments of customers. The alternatives along with being practical should also challenge the existing practices. Though logistics and supply chain are intricately linked, both do not mean the same. Learn About Logistics website uses cookies. An organisation can have a situation where it sells a range of products that fall into two or more categories. One approach that is effective and quick to implement is business intelligence: uncovering existing data that is not being processed and making it useful. These are Make to stock (MTS), Assemble to order (ATO), Make to order (MTO) or Engineer to order (ETO) and each needs to differentiate the performance objectives. For each of the current and the potential warehouse, the operating costs, capacities, product mix, storage levels and service capabilities should be established.

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