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8/7/2019 Introduction to Logistics v101
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7 Oct 2002 InterWorks Europe 1
Introduction to Logistics v101
Introduction to Logistics
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7 Oct 2002 InterWorks Europe 2
Introduction to Logistics v101
Key Learning Points
Logistics is common sense and simple maths.
Logistics deals with moving what is needed when it is
needed at a reasonable cost. There are several simple rules of thumb that you can
use
Planning, Largest Truck, Avoiding Bottlenecks,Norms, and Simplicity are the five golden rules for
logistics
FIFO, Inspection, Records, Segregation, Tidiness,Inventory, and Neatness are the seven rules for good
storage.
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Introduction to Logistics v101
Logistics?
Logistics comes from the Greek word Logistikos,
meaning skilled in calculating. Roman armies had
administrative officers called Logista.The term Logistics originally applied to military logistics
only, but now applied to all sorts of logistics.
Logistics is applied common sense
the maths issimple, but logisticians have to make it look complicated
to keep their jobs.
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Introduction to Logistics v101
What is Logistics?
Logistics is the process of planning, implementing, co-
ordinating, and controlling the flow and storage of goods,
services, and related information so as to deliver what is needed
from where it is
to where it is needed
when it is needed
at the lowest cost
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Introduction to Logistics v101
Weight or volume
For some commodities, weight is the limiting factor, for
others it is volume (the space that they take up).
You can fit 10t of maize on a 10t truck, but less than 1tof empty jerricans.
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Rules of Thumb
There are basic rules of thumb for logistics planning:
People need 0.5kg of food per person per day
Family kits are equivalent to the weight of one weeksfood supply, but takes up as much space as three
weeks food supply
It takes the same amount of transport to move peoplefrom A to B as to move their food for 8 to 12 months
over the same route
You need about 1m2 of storage area per 1,000 peoplefor each day's food stored (with a 2m stack height).
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Introduction to Logistics v101
The Logistics Chain
The Logistics Chain is the name given to the system that
takes goods from the source to the destination.
Port to Primary Warehouse Primary Warehouse to Secondary Warehouse
Secondary Warehouse to Terminal Warehouse
A chain is only as strong as the weakest link..
Port ofentry
Enduser
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Information flow in Logistics System
Initial upstream information flow to triggerstart of downstream flow
Downstream flow through pipeline
Upstream flow to control downstream flow
Donors Users
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Main document flows
Waybill with goods
Copies of waybills to confirm receipt
Donors Users
Requisitions and distribution reports
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Five Golden Rules for Logistics: PLANS
Plan, Plan, Plan, and publish
Largest Viable Truck
Anticipate bottlenecks and delays
Norms, standards, and procedures
Simplicity
avoid transit warehouses if possible
I t d ti t L i ti 101
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Plan, Plan, Plan, and publish
Planning is the key tosuccessful logistics.
Planning allows you to:
Estimate the resources youwill need
Anticipate potentialproblems
Coordinate your plans withothers
Publishing or sharing yourplans with others helps toensure that your plans do not
conflict with those of others
I t d ti t L i ti 101
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Largest Viable Truck..
The bigger the truck you use the lower the cost per
tonne transported. However, bridges, ferries, loading, or
road conditions may limit the size of truck you can use.
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Anticipate bottlenecks and delays
Bottlenecks are places in the logistics chain which
restrict the flow through the chain.
Example of bottlenecks may be limited handling capacityat ports, ferries, or limited distribution fleets..
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Simplicity in the chain..
The logistics chain is the path which the food follows
from the port of entry to the end user. Loading and
unloading goods not only costs money, but also provides
opportunities for theft or damage.
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Warehouse Rules
FIRST-IN
First In First Out
Inspection
Records
Segregation
Tidy, clean, and dry
-Inventoried
Neatly and safely stacked
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g
First In First Out
Whatever arrives first in the store
should be the first to leave.
This policy is called First In FirstOut or FIFO. The advantages of
this policy are:
That the danger of stock in thewarehouse getting out of date is
minimised.
The constant turnover helps toensure that any problems are
quickly discovered.
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Inspection
Warehoused goods need to be inspected on arrival as
well as during their time in the warehouse. Inspection
should be used to detect:
Damaged containers and commodities
Spoiled commodities
Infestation Pilferage or theft
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Records
You must record:
All receipts.
All issues.
The changing stock level in the store.It is good practice to keep two records of movements,
one in the formal store ledger and the other on the stack
cards which record movement on each stack.
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Segregation
Commodities of different types should be segregated
from each other to allow counting.
It is particularly important to segregate damagedcommodities from other goods.
Sometimes, donors may require that commodities from
different sources be segregated both in the store and inthe records..
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Tidy, clean, and dry
The ideal warehouse is tidy, clean, and dry.
Tidiness means that goods are properly stored off
the floor on pallets and away from walls. Cleanliness allows the rapid identification of damage
by rodents, insects, or birds.
Water is the enemy of almost all storedcommodities, it may corrode containers or lead to
products germinating or rotting.
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Inventory (Stocktaking)
Stocktaking or taking an inventory ensures that the
physical stocks match what is recorded.
Stocktaking allows: Theft and fraud to be detected
Finding out of date commodities
Finding damaged commodities
The updating of store records
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Neatly and safely stacked
Neat stacking allows rapid
counting of the goods.
Safe stacking means thatstacks are properly built, and
the risk of stack collapses is
minimised.
Cross stacking makes stacks
stronger.
Stack heights may also belimited by the strength of the
containers used..
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Key Learning Points
Logistics is common sense and simple maths.
Logistics deals with moving what is needed when it is
needed at a reasonable cost. There are several simple rules of thumb that you can
use
Planning, Largest Truck, Avoiding Bottlenecks,Norms, and Simplicity are the five golden rules for
logistics
FIFO, Inspection, Records, Segregation, Tidiness,Inventory, and Neatness are the seven rules for good
storage.
Introduction to Logistics v101
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WarningAny advice given or impliedin this presentation is of a
general nature and does not
cover all situations. In somecases it may be
inappropriate to follow
whatever advice is givenhere. The author and
InterWorks Europe therefore
decline responsibility forcases where any advice
given here proves not to be
the best course of action.
This presentation wasdeveloped by InterWorks
Europe Limited. For
more information contact:
John Cosgrave
InterWorks Europe
Ballyshoneen
Berrings
Co Cork
Ireland
[email protected]: +353 21 7332134
Fax: +353 21 7332210