functions of logistics management

activity mix of Logistics

It refers to the activities that make up business logistics. It varies upon organizational structure, management opinion about supply chain, and importance of operational activities.

Primary activities

1. Transportation
   1. Mode of transport service selection
   2. Freight consolidation
   3. Carrier routing
   4. Vehicle scheduling
   5. Equipment selection
   6. Claim processing
   7. Rate auditing
2. Inventory management
   1. RM and FM stocking policies
   2. Sales forecasting
   3. Product mix at stocking point
   4. Number, Size and location of stocking point
   5. JIT, push & pull strategies
3. Information flow and order processing
   1. Sales order inventory and interface procedures
   2. Order information transmitted methods
   3. Ordering rules

Secondary activities

1. Warehousing
   1. Space determination
   2. Stock layout and spatial design
   3. Warehouse configuration
   4. Stock placement
2. Material handling
   1. Equipment selection
   2. Equipment replacement policies
   3. Order pricing procedures
   4. Stock storage and retrieval
3. Purchasing
   1. Supply source selection
   2. Timing
   3. Quantity
4. Packaging
   1. Package handling
   2. Storage
   3. Protection from loss and damage
5. Information maintenance
   1. Information collection
   2. Storage
   3. Manipulation
   4. Data/control procedures

These support activities co-operate operations and production department to;

• Specify aggregate quantities
• Sequence and time of production output
• Schedules supplies for production and operations