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• Module overview
• 1. Introduction to logistics
  • 1.1. The logistics concept
    • 1.1.1 A question of definition
    • 1.1.2 Technological context
  • 1.2. Evolution of modern business logistics
    • 1.2.1 Materials management or supply-side logistics
    • 1.2.2 Physical distribution or demand-side logistics
    • 1.2.3 The total logistics concept
  • 1.3 Logistics, the critical interfaces

• 2. Supply side logistics: Procurement and materials management

  • 2.1 Materials management
    • 2.1.1 Purchasing and procurement
    • 2.1.2 Production control
    • 2.1.3 Warehousing and storage
    • 2.1.4 Data and information systems
  • 2.2 Quality in logistics
    • 2.2.1 Total quality management
    • 2.2.2 Benchmarking
  • 2.3 Kanban
  • 2.4 Measurement and evaluation
  • 2.5 MRP 1 and 2

• 3. Demand side logistics: Forecasting and order processing

  • 3.1 Customer order processing
  • 3.2 Environmental scanning
    • 3.2.1 The environments
    • 3.2.2 Approaches to scanning
  • 3.3 Logistics needs forecasting
  • 3.4 Lead time components
  • 3.5 Enhancing forewarning of demand

• 4. Inventory management and control

  • 4.1 Basic concepts and rationale for inventory holding
  • 4.2 Inventory costs
    • 4.2.1 Managing inventory costs
    • 4.2.2 Push and pull control methods
  • 4.3 Types of inventory
  • 4.4 Inventory management
    • 4.4.1 Inventory management systems
    • 4.4.2 Computers and inventory management
  • 4.5 Inventory management and business success

• 5. Storage facilities, materials handling equipment and packaging

  • 5.1 The management of warehouses and distribution centres
    • 5.1.1 Storage alternatives
    • 5.1.2 Warehouse design
    • 5.1.3 Productivity associated with warehousing
    • 5.1.4 Warehouse information systems
  • 5.2 Materials handling
    • 5.2.1 Objectives of material handling
    • 5.2.2 Materials handling systems and equipment
    • 5.2.3 Materials handling productivity ratios
  • 5.3 Packaging
    • 5.3.1 The role of packaging
    • 5.3.2 Packaging materials
    • 5.3.3 Packaging design considerations

• 6. Physical distribution transportation system

  • 6.1 The role of transportation in logistics
  • 6.2 Economic and service characteristics of the modes of transport
    • 6.2.1 Rail
    • 6.2.2 Road
    • 6.2.3 Air
    • 6.2.4 Water
    • 6.2.5 Pipeline
  • 6.3 Intermodal transport services
  • 6.4 Transportation cost structures
  • 6.5 Transportation rate profiles
  • 6.6 Modal and carrier selection
  • 6.7 Management of the transport function

• 7. Change and transformation

  • 7.1 Nature of change
    • 7.1.1 The manager's role and change
    • 7.1.2 Transformation and change continuums
    • 7.1.3 Responding late in the change continuum
    • 7.1.4 Rapid change continuum cycles
    • 7.1.5 Increasing organisational responsiveness and agility
  • 7.2 Scale and pace of change
    • 7.2.1 Leading rapid change
  • 7.3 Stages of change
    • 7.3.1 The stages of change and approaches to management
    • 7.3.2 Change and the organisation's development stage
  • 7.4 Communicating change
    • 7.4.1 Guidelines for communicating change
    • 7.4.2 Communicating change to stakeholders

• 8. Building agility and responsiveness

  • 8.1 Organisational agility and the art of rapid change
  • 8.2 Agility and transformational leadership
    • 8.2.1 Transactional Leadership
    • 8.2.2 Transformational Leadership
  • 8.3 Agility and organisational responsiveness
    • 8.3.1 Principles for Constructive Change
    • 8.3.2 Agility and environmental attunement
  • 8.4 Organisational learning and enhanced agility
    • 8.4.1 Learning and organisational life cycles
    • 8.4.2 Double loop learning and the learning organisation
    • 8.4.3 The learning cycle
    • 8.4.4 Leading learning from being adaptive to generative

• 9. Foster innovation and creativity

  • 9.1 Innovation and agility
  • 9.2 Levels of innovation and their impact
    • 9.2.1 Innovation
    • 9.2.2 Improvement
    • 9.2.3 Re-engineering
    • 9.2.4 Reinventing
    • 9.2.5 Re-engineering
  • 9.3 Re-engineering and business process re-engineering
    • 9.3.1 Reengineering and quality improvement
    • 9.3.2 Identifying when to re-engineer processes
    • 9.3.3 To innovate slowly or reengineer?
  • 9.4 The need for speed
  • 9.5 Organise work to facilitate innovative practices and organisational agility
    • 9.5.1 Innovative and agile organisation
  • 9.6 Enhancing diversity and creativity of thinking in teams and work practices
    • 9.6.1 Convergent and divergent thinking
    • 9.6.2 Left- and right- brain activities
    • 9.6.3 How to generate new ideas?
  • 9.7 Creativity and solutions search in teams
    • 9.7.1 Brainstorming
    • 9.7.2 Synectics
    • 9.7.3 Forcing Techniques
    • 9.7.4 Nominal Technique
  • 9.8 Review the use of innovation in work and team practices.
    • 9.8.1 Assess the ability of the team to achieve goals
    • 9.8.2 Review the success of team leadership

2.1.4 Data and information systems

The materials manager needs information like the identities of suppliers that the organisation uses, demand forecasts for production, existing and desired inventory levels, production timetables or schedules and transport routing. This mass of information cannot be beneficially processed without the use of suitable systems. Numerous software packages are available for specialised usage, tailored for specific branches of various industries. The main benefit of modern and powerful packages is that they permit the linking and using of information from different aspects of the material management function.

The main issues in any management information system are the availability of relevant information, its accuracy and the effective communication of this for management purposes.

To provide ever increasing levels of customer service, organisations depend on information, increasingly in real time, about their operations and the location of the customer's consignment. From the organisation's own perspective, data and information systems must serve useful corporate aims like permitting inter- and intra-functional communications, processing data into useful information, supporting the output of personnel in the organisation, creating a useful and easily accessible archive of information and permitting the development/improvement of processes that constitute the business. From the logistics perspective, the most important issue remains being able to meet the needs of the customer in the pre-transaction, transaction and post-transaction stages, support sales and the accounting and finance functions.

Various information systems technologies are available today. These include bar coding, electronic data exchange (EDI), data management (including CD-ROM), artificial intelligence and expert systems and satellite tracking.

Reading 2.1

Litman, E (1999), 'The next logistics transformation: Integrating information and knowledge', Logistics Spectrum , January - March 1999, pp16 - 18.

Information systems in logistics. Fundamentally, this is a system that links together the people, procedures and the operations and provides pertinent information to the relevant managers to support decision making. The main elements of the logistics function can broadly be identified as materials management, market information collection, management information and support systems, and documentation. Good computer technology is essential to the effective use of all these systems. Corporate management systems are incrementally being amalgamated with logistics systems to provide effective overall management. You can expect to see increasingly sophisticated information systems being designed to:

• supply knowledge of customer needs and expectations
• reduce lead time in the performance of a service or in filling orders
• enhance the quality of data collected and information generated.

At the same time, there will be an emphasis on:

• developing employee acceptance of the new technology in order that can be used effectively
• constructing cross functional and cross discipline teams in order to enhance business performance.

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