Modern logistics management

Introduction to the
Modern logistics management is a professional course offered by universities. Logistics management major in order to meet the need of socialist market economy, to cultivate students with solid foundation of management, economics and basic knowledge of information technology, a higher level of English and computer basic skills, is under the precondition of mastering the basic knowledge of engineering, be familiar with the laws and regulations, to master modern logistics management theory, means and methods, the information system of logistics management, planning, design, such as strong practical operation ability, become the advanced modern logistics management personnel. To be engaged in the whole process planning, management and logistics informationization in the field of logistics management senior composite management personnel.
Ten trends of modern logistics management
With the development of logistics industry, new contents have been added in the supply chain management mode, and there are ten new trends in logistics industry.
(1) logistics management shall be promoted from the treatment of goods to the design, solution and management of value-added solutions. It can provide tailor-made and personalized services for customers. Enterprises gradually turn to emphasize the integration across enterprise boundaries, which makes the maintenance and management of customer relations become more and more important.
From opposition to unity. In traditional business channels, most enterprises are self-centered and pursue their own interests, which often leads to the situation of opposition between enterprises. However, driven by the pursuit of greater competitiveness, many enterprises start to integrate various commercial circulation functions, and form highly integrated supply chain channel relations through joint planning and operations, thus greatly improving the overall performance and effect of the channel.
Change from prediction to final measurement. The traditional circulation model USES the resources of the downstream channel to carry out various logistics activities. Unfortunately, the prediction is rarely accurate, and therefore a lot of natural and commercial resources are wasted. The emerging trend of logistics management emphasizes the joint mechanism of channel members. Members are willing to exchange information of operation and strategy, especially internal demand and production data, so that upstream enterprises do not need to forecast. The circulation mode is gradually changing from forecasting basis to final testing basis.
(iv) change from experience to change strategy. Has always been the experience curve is used to analyze enterprise competition in the market trend and method of developing strategies, and accumulated experience in enterprise as the main competitive weapon, but the sudden progress of science and technology, enterprises adhere to both the experience instead become the barriers in the development of enterprises, so changes in scheduling environment, experience and the existing channel infrastructure to the most difficult to overcome obstacles, successful enterprise must establish the strategic direction of the sense of smell and sustained change management system to survive.
(v) change from absolute value to relative value. Traditional financial evaluation only looks at some absolute values. The new evaluation method will focus on the creation of relative value, that is, to provide value-added services in the channel.
(6) switch from functional integration to program integration. In the increasingly fierce competition channel environment, enterprises must respond to the needs of upstream and downstream customers more quickly, so they must effectively integrate the operation of various departments and operate with the procedural operating system. Most logistics operations and activities have the characteristics of cross-function and cross-enterprise, so the procedural integration is the key to the success of logistics management.
(vii) switch from vertical integration to virtual integration. In the traditional channels, some large enterprises conduct vertical integration of channels in order to have more power to master. It turns out that this is not successful, but disperses the resources of enterprises and weakens the main industry. The trend of enterprise operation today is to focus on core business, delegate non-core business to professional management companies, and form a virtual enterprise integration system, so that the main enterprise can provide better products and services.
Switch from information retention to information sharing. Under the supply chain management structure, relevant enterprises in the supply chain must share the information required by the supply chain integration with other enterprises, otherwise, an effective supply chain system cannot be formed.
(9) switch from training to knowledge learning. For the foreseeable future, any logistics process will be done by manpower. However, most logistics operations need to be carried out in various logistics locations and transport networks, and about 90% of the time, the logistics supervisor cannot personally monitor them. The development trend of globalization also increases the complexity of logistics human resource management. The logistics supervisor must turn to the learning and development of the knowledge base in the form of individual personnel skills training.
Switch from management accounting to value management. In the future, many enterprises are willing to invest a lot of resources to establish a basic accounting system, focusing on providing value-added creation and management information across the enterprise, in the hope of identifying the activities that can create value, rather than just increase in income and increase in cost.
The purpose of modern logistics management
(1) take customer satisfaction as the first goal;
(2) aiming at the overall optimization of the enterprise;
(3) information oriented
(4) more attention should be paid to efficiency and effectiveness.
FiveElementsofLogistics (FiveElementsofLogistics) are the five main elements of evaluating a logistics system: quality, quantity, time, place and price. Quality means that the quality of materials remains unchanged in the logistics process. Quantity refers to the quantity requirements that meet the economic requirements and the full load of the carrying load in the transportation activities. Time refers to the principle of timely delivery of reasonable expenses to achieve fast; Location means the choice of reasonable gathering place and warehouse to avoid two times of invalid transport and multiple transshipment; Price means to reduce logistics costs as much as possible on the premise of ensuring quality and meeting time requirements.
The purpose of implementing logistics management is to achieve the established customer service level under the condition of the lowest total cost as possible, that is, to seek a dynamic balance between service advantage and cost advantage, and thus to create strategic advantage in competition. According to this goal, the basic problem to be solved by logistics management is simply to provide the right products to customers at the right time and place at the right quantity and price.
Logistics management emphasizes the use of systems to solve problems. Modern logistics is generally considered to be composed of transportation, storage, packaging, loading and unloading, circulation processing, distribution and information. Each link originally has its own function, interest and idea. The system method is to make use of modern management method and modern technology to make all links share the overall information and organize and manage all links as an integrated system, so that the system can provide customer service with competitive advantages under the condition of the lowest total cost. The system approach argues that the benefits of the system are not simply the sum of the benefits of each local component. The systematic approach means that all the influencing factors should be analyzed and evaluated for a problem in one aspect. Starting from this idea, the logistics system does not simply pursue the minimum cost in each link, because the benefit of each link of the logistics has the tendency of mutual influence and mutual restriction, and there is an alterative and vulnerable relationship. For example, the excessive emphasis on the saving of packing materials may lead to the increase of transportation and handling costs due to its easy breakage. Therefore, the system approach emphasizes the need to conduct total cost analysis, as well as to avoid sub-optimal effects and cost tradeoff applications, in order to achieve the minimum total cost and to meet established customer service levels.
The development prospect of modern logistics management
The development of logistics management has experienced three levels: distribution management, logistics management and supply chain management. Logistics management originated from the storage and transportation mode and technology developed in the second world war. After the war, these technologies were widely used in industry, which greatly improved the operating efficiency of enterprises and won more customers for them. At that time, logistics management mainly targeted at the distribution part of enterprises, that is, how to quickly and efficiently deliver products to customers through the distribution center after the production of finished products, and maintain the minimum inventory as far as possible. The American logistics management association was then called the physical delivery management association, while the Canadian supply chain and logistics management association was called the physical delivery management association of Canada. At this initial stage, logistics management only passively caters to customer demands after the production of a given quantity of finished products, delivers the products to the place designated by the customer, optimizes the use of resources in the field of transportation, and reasonably sets the inventory of each distribution center. To be exact, this stage of logistics management has not really emerged, only transportation management, warehousing management and inventory management. The logistics manager position did not exist at the time, only the transport manager or warehouse manager.
Modern logistics management emerged in the 1980s. It is found that it is very effective to observe, analyze and solve problems in enterprise operation by means of cross-functional process management. By analyzing the whole flow process of materials from raw materials to the factory, flowing through each workstation in the production line, producing finished products, then transporting them to the distribution center and finally delivering them to customers, the enterprise can eliminate many local optimization behaviors that seem to be efficient but actually reduce the overall efficiency. Because every functional department wants to use its capacity as much as possible without leaving any surplus, once the demand increases, it becomes a bottleneck everywhere, leading to the disruption of the whole process. For another example, as an independent functional department, the department of transportation always tries to reduce its transportation cost, but if it therefore delivers an order that must be expedited by sea instead of by air, it saves the freight, but loses the customer, resulting in the overall loss. Therefore, the traditional vertical function management has not adapted to modern large-scale industrial production, while the horizontal logistics management can comprehensively manage the different functions in each process to achieve the overall optimization of synergies.
At this stage, the scope of logistics management extends to demand forecasting, procurement, production planning, inventory management, distribution and customer service in addition to transportation, so as to systematically manage the operation of the enterprise and maximize the overall benefit. Godrat's "the goal" is a book that has captured the global manufacturing industry. Its essence is to manage production from a process perspective. Accordingly, the American physical delivery management association was renamed the American logistics management association in the mid-1980s, while the Canadian physical delivery management association was renamed the Canadian logistics management association in 1992.
A typical manufacturing enterprise, its demand prediction, raw material purchase and transportation links are usually called inbound logistics, the circulation of raw materials between the internal processes of the factory is called production logistics, and the delivery and customer service link is called making-oriented logistics. The key of logistics management is to systematically manage the whole process from raw materials, products in process to finished products, so as to ensure that materials can be purchased, shipped in, processed, shipped out and delivered to customers under the minimum inventory conditions. For the shareholders of an enterprise with efficient logistics management, this means making the largest business with the least capital and generating the largest return on investment.