An educational presentation about basics of logistics

1. Business English
Logistics & Transportation Engineering
Seminar : Introduction to Logistics
By Youssef Serroukh
25/10/2011 ~ 01/11/2011
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2. Contents
• Part 1 What is Logistics
• Part 2 Activities in Logistics System
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3. What is Logistics
There are various definitions of different
edition. But in general, there are mainly
two types of definition in practice.
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4. 1.1 Definitions
Notes
1．There are various definitions of different
edition.
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5. 2．In Business Terms, logistics means the physical movement of goods
from the supplier point to the receive point. Based on practical
need, integrated organically the variety of the basic functional
activities including transportation, storage, loading and unloading,
handling, package, distribution and information management, etc.
3．The Council of Logistics Management has adopted this definition of
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 customers’
requirement.
4．However, when it comes to modern logistics, most professionals in
the business consider it one of the most competitive and exciting
jobs, invisible as it is.
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6. 5．This implies that management must first understand what hose
requirements are before a logistics strategy can be developed and
implemented to meet them.
6．In practice, logistics refers to the systematic management of the various
activities required from the point of production to the customer.
7．Getting the right amount of goods to the right place at the right time is
critical, especially in an age when budgets are tight and customers
demands are unpredictable.
8．Logistics management has evolved over the last three decades from the
narrowly defined distribution management to the integrated management
and to the global supply chains.
9．In order to succeed in today’s global marketplace, companies must be
ever cognizant of these trends and develop a logistics management
strategy that capitalizes on the best-of-breed technology solution available
today, so that they can meet the demands of their customers today and be
well prepared for the future.
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7. 1.2 The Importance of Logistics
Since the beginning of human civilization, there has been
the “move” of the goods, so we should say, “logistics is
anything but a newborn baby.” However, when it comes
to modern logistics, most professionals in the business
consider it one of the most competitive and exciting jobs,
invisible as it is. “Logistics is a unique global pipeline that
operates 24 hours a day, seven days a week and 52 weeks
a year, planning and coordinating the transport and
delivery of products and service to customers the world
over.”
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8. 1.3 Development of Logistics
Management
Logistics management has evolved over the last three decades
from the narrowly defined distribution management to the
integrated management and to the global supply chains. The
mission of logistics management is to plan and coordinate all
activities to achieve desired levels of delivered service and
quality at he lowest possible cost. In order to succeed in
today’s global marketplace, companies must be ever
cognizant of these trends and develop a logistics management
strategy that capitalizes on the best-of-breed technology
solution available today, so that they can meet the demands
of their customers today and be well prepared for the future.
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9. Exercices
1. Make a list of all different areas of Logistics you can think of by completing the
diagram below
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10. Exercices
2. Five people give their definition of Logistics. Complete the sentences using the
words from the box:
Provide Storage Support Distribution Delivery Maintenance
• Logistics means that you manage the procurement movement of goods
and ________of the inventory.
• It means the ________of the goods the customer needs at the right time,
in the right place, and of the right quality.
• My definition of logistics is this: it’s to plan, organize, and manage
operations that ________services and goods.
• Logistics – that’s purchasing, maintenance, ________and replacement of
material and staff.
• Logistics is the planning and ________of operations such as warehousing,
inventory, transport, procurement, supply and ________ .
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11. Exercices
3. Complete the following table
* VERB NOUN
1 To provide
2 Storage
3 To support
4 Delivery
5 To distribute
6 Maintenance
7 To transport
8 Purchasing
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12. Activities in Logistics System
A logistics system can be made up of many
different functional activities, some of which
are described briefly below.
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13. 2.1 Customer Service
In a broad sense, customer service is the output of the entire logistics
system. It involves making sure that the right person receive the right
product with the right quantity at the right place at the right time in
the right condition at the right cost. At present, many logistics
company may have a customer service department that handle
complaints, special orders, damage claims, returns, billing problems,
etc.
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14. 2.2 Demand Forecasting
Demand forecasting estimate the need for precise amount of product
and service that customers will require in the future. The logistics
system can ensure the right products or services are available to meet
those requirements. It involves in forecasting how much should be
ordered from its suppliers, and how much of finished products should
be transported in each market.
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15. 2.3 Transportation
Transportation refers to the physical movement of goods from one
point to another point. It includes specific activities such as selecting
the transport mode, choosing the particular route, selecting the right
carrier, complying with various local transportation regulations.
Transportation is usually the most costly logistics activity.
It may account for 40%-60% of a company’s total logistics cost.
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16. 2.4 Warehousing
Warehousing is an integral part of every logistics system. It plays an
important role in providing a desired level of customer service at the
lowest possible total cost. It refers to places where goods can be stored
for a particular period of time. Generally, the greater the time lags
between production and consumption, the larger the level of
warehousing required.
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17. 2.5 Inventory Management
Inventory management deals with balancing the cost of maintaining
additional products on hand against the risk of not having those items
when the customer wants them. This task has become more complex
as firms have gradually lowered inventory levels.
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18. 2.6 Packaging
Industrial packaging focuses on protecting the product while it is being
transported and stored. It conveys important information to inform the
customer and provide protection during storage and transport.
In a marketing sense, the package acts as a form of promotion or
advertising. Its size, weight, color, and printed information attract
customers and convey knowledge about the product.
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19. 2.7 Procurement
Procurement is the purchase of materials and services from outside
to support the firm’s operations from production to marketing,
sales and logistics. It includes the selection of supply source location,
timing of purchases, price determination, quality control and many
other facets.
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20. 2.8 Material Handling
Material handling is a broad sense concerning all short-distance
movements of raw materials, work in process, or finished goods
within a factory or warehouse. As materials handling tends to add
costs rather than value to logistics systems, managers tends to
minimize the number of handling whenever possible.
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21. 2.9 Information Management
Information links all areas of the logistics system together.
Information processing is becoming increasingly automated,
complex, and rapid. It is critical to the efficient functioning of system.
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22. 2.10 Other Logistics Activities
Other activities such as waste disposal, return goods handling, etc. are
also important. Logistics managers have to consider the social costs
associated with waste disposal. The handling of returned goods, often
referred to as reverse distribution, is an important part of the logistics
process.
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23. Components of logistics
management : Management actions Outputs of
Inputs into logistics logistics
Planning Implementation Control
Natural resources Marketing
(land, facilities, Logistics management orientation
and equipments) Suppliers Raw In-process Finished Customers (competitive
materials inventory goods advantage)
Time and
Human resources
Logistics Activities place utility
•Customer Service •Plant and warehouse Efficient
Financial resources •Demand forecasting site selection movement to
•Distribution •Procurement customer
communications •Packaging
Information
resources •Inventory control •Return goods handling Proprietary
•Material handling •Salvage and scrap asset
•Order Processing disposal
•Parts and service •Traffic and
support transportation
•Warehousing and
storage

24. Exercices
1. Replace the underlined verbs with the words from the box
that have the same meaning.
Provide Train Organise Ensure Inform about Check
• We supply software for the car industry.
• I often advise clients on the most suitable transport method.
• In my job, I have to make sure that passengers arrive on schedule.
• My job is to supervise incoming goods.
• I also plan the transport of goods.
• I instruct staff.
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25. Exercices
2. Put the words in the Right order by using the correct form of
the verb.
• an excellent/provide/delivery service/my company.
• you/ how much/ handle/ cargo/ per year?
• to other countries/ not ship/ we/ chemical products.
• responsible for/ be/ the warehouse manager/ also/ vehicles and
machinery.
• to foreign companies/ car parts/ this vendor/ supply?
• usually / arrange / for companies/ a freight forwarder/ documentation.
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26. Exercices
3. Complete the crossword puzzle with words from this unit.
Across
4 Another word for freight
5 What you store in the warehouse
6 Work closely together with somebody
Down
1 Another word for organise
2 To give information about the price
3 Another word for supervise
5 Send goods
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27. Thank you for your attention
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