NotesLeanLogistics.docVIP

Chapter Two Lean Logistics I. Learning objectives and requirements 1. to know the scope, the work, the goal and the importance of logistics 2. to know and understand the definition of lean logistics 3. to understand the logistical value proposition 4. to know the five areas of logistics work 5. to understand the logistical operations 6. to understand logistical operating arrangements II. Learning contents Section I. Introduction to Lean Logistics 1. Main contents 1) The Scope of Logistics No other area of business operations involves the complexity or spans the geography of logistics. All around the globe, 24 hours of every day, 7 days a week, during 52 weeks a year, logistics is concerned with getting products and services where they are needed at the precise time desired. It is difficult to visualize accomplishing any marketing, manufacturing, or international commerce without logistics. Most consumers in highly developed industrial nations take a high level of logistical competency for granted. When they purchase goods-at a retail store, over the telephone, or via the Internet-they expect product delivery will be performed as promised. In fact, their expectation is for timely, error-free logistics every time they order. They have little or no tolerance for failure to perform. Although logistics has been performed since the beginning of civilization, implementing best practice logistics is one of the most exciting and challenging operational areas of supply chain management. Because logistics is both old and new, we choose to characterize the rapid change taking place in best practice as a renaissance. 2) The Work of Logistics Logistics involves the management of order processing, inventory, transportation, and the combination of warehousing, materials handling, and packaging, all integrated throughout a network of facilities. 3) The Goal of Logistics The goal of logistics is to support procurement, manufacturing, and market distribution operational requirements