Logistics Management: An Analysis Of Logistics In Supply Chain Management

842 Words4 Pages
ANALYSIS OF LOGISTICS IN SUPPLY CHAIN MANAGEMENT

What is Logistics
Logistics is the process of strategically managing the procurement movement and storage of materials, parts and finished inventory (and the related information flows) through the organisation and its marketing channels in such a way that current and future profitability are maximised through the cost-effective fulfilment of orders. (Christopher 2005)
Key Logistics activities
Inbound logistics involves material management in the supply chain and includes
• Procurement; where raw materials are acquired.
• Transportation; raw materials are sent for production.
• Production; at this point, processing of goods take place.

Outbound logistics are the physical distribution of goods
…show more content…
Logistics in Smokehouse Restaurant
In the supply chain, inventory planning and stock management develop a flow-oriented concept to the operations of the restaurant. In acquiring raw materials such as fruits, vegetables and meats, are bought with standard quality and are met with regulatory requirements from reputable suppliers.
Storage is properly planned where the stock is rotated, items are labelled, foods are protected from contamination and biological hazards, and are stored at appropriate temperature controls; maintaining product quality as influences production and sales.
In the manufacturing stage, a variety of options are provided, catering to the demands and requirements of the customers. If managed properly, it reduces wastage and increases the availability of unused products.
The customer is the final entity in the supply chain of the restaurant. The sustainability of the chain depends on the actual menu, affiliated with price and exceptional service met by customer requirements.
Collaboration within the logistic network encourages growth and efficiency in the supply chain.

Competitive Advantages of logistics in
…show more content…
Constant improvement in the performance of each member achieves the goals within the supply chain.

ADOPTION OF JUST-IN-TIME INVENTORY MANAGEMENT
Inventory management is the process of efficiently managing the constant flow of products leaving or entering the warehouse. It is an element of supply chain management and involves controlling and overseeing of orders and storage of stock.
Approaches to managing inventory includes:
• Economic Order Quantity model
• ABC System
• Just-In-Time
• Periodic Inventory Review
• Continuous Inventory Review
Smokehouse restaurant uses the Just-In-Time system as it provides cost reduction, improved quality and customer service. The strategy allows staff to develop and demonstrate kitchen techniques while keeping track of stock and maintaining efficiency while creating a balance between meeting demands and purchasing

More about Logistics Management: An Analysis Of Logistics In Supply Chain Management

Open Document