Logistics is the physical movement of items from the supply place to the receiving place. According to actual needs, the basic functions such as transportation, storage, handling, packaging, circulation processing, distribution, and information processing are organically combined.

Characteristics of modern logistics

It refers to an organic whole with specific functions composed of several mutually restricting dynamic elements such as materials, packaging equipment, loading and unloading machinery, transportation tools, warehousing facilities, personnel and communication links that need to be moved within a certain time and space.

composition

There is a phenomenon of "benefit contradiction" among various logistics subsystems.

There are mutual constraints between subsystems

In the production and circulation process, the network chain structure formed by upstream and downstream enterprises involved in providing products or services to end users

It is an integrated management idea and method that performs functions such as logistics planning and control in the supply chain from suppliers to end users.

Basic idea

Changes in inventory can significantly alter supply chain responsiveness and inventory levels

Main facilities

Information includes planning, forecasting, dynamic (transportation volume, receipt, delivery, inventory) information related to the above activities, as well as related cost information, production information, and market intelligence activities

The problem to be solved by the master plan can be described as: developing demand forecasts for each period within the planning period (usually 3-18 months), determining production levels, inventory levels and production capacity levels to maximize company profits

type

Production capacity management

Inventory management

Factors affecting promotion timing selection

Factors influencing rising demand

When implementing a program to control predictable variables, we need to consider the following factors

Reasonable inventory network

Reasonable inventory structure

Reasonable inventory quantity and time

ABC classification management method

Common Inventory Control Strategies

It means that the supplier manages the user's inventory with the user's permission, and the supplier determines the inventory level of each product and the strategy to maintain these inventory levels.

Supplier-managed inventory has changed the traditional inventory management concept and operating model, fully embodying the integrated management thinking of the supply chain.

Suppliers exchange information with their customer companies to achieve information sharing and close cooperation, which can not only reduce inventory levels and costs in the entire supply chain, but also better improve customer satisfaction, accelerate the operation of funds and materials, and enable both supply and demand parties to share benefits. , achieve a win-win situation

Implementation principles

Implementation steps

It refers to a supply chain inventory management strategy in which various enterprises (suppliers, manufacturers, distributors) in the supply chain participate at the same time, jointly formulate inventory plans, share benefits, and share risks.

Joint inventory management is a coordination center-based inventory management method

Implementation Strategy

Different scope of activities

There are functional differences

The mode of transportation is different from the means of transportation

Each transportation mode has different characteristics in terms of speed, freight size, freight cost and flexibility

Each mode of transportation has its own characteristics

direct shipping network

Direct shipping using "milk routes"

All goods pass through the transportation network of the distribution center

Tailor-made transportation network

Consider internal and external transportation

The trade-off between shipping costs and inventory costs