1) Customer service
Customer service has been defined as "a customer-oriented philosophy which integrates and manages all elements of the customer interlace within a predetermined optimum cost-service mix. Customer service is the output of the logistics system. It involves getting the right product to the right customer at the right place, in the right condition and at the right time, at the lowest total cost possible, Good customer service supports customer satisfaction, which is the output of the entire marketing process.
2)Traffic and transportation
A key logistics activity is to actually provide for the movement of materials and goods from point of origin to point of consumption, and perhaps to its ultimate point of disposal as well. Transportation involves selection of the mode (e.g., air, rail, water, truck, or pipeline), the routing of the shipment, assuring of compliance with regulations in the region of the country where shipment is occurring, and selection of the carrier. It is frequently the largest single cost among logistics activities.
3)Inventory management
Inventory management involves trading off the level of inventory held to achieve high customer service levels with the cost of holding inventory, including capital tied up in inventory, variable storage costs, and obsolescence. These costs can range from 14 to over 50 percent of the value of inventory on an annual basis! With high costs for items such as high-tech merchandise, automobiles, and seasonal items that rapidly be come/obsolete, many organizations, including Hewlett Packard. Xerox, and Sears, are giving inventory management much more attention.
4)Order processing
Order processing entails the systems that an organization has for getting orders from customers, checking on the status of orders and communicating to customers about them, and actually filling the order and making it available lo the customer. Part of the order processing includes checking inventory status, customer credit, invoicing, and accounts receivable. Thus, order processing is a broad, highly automated area. Because the order processing cycle is a key area of customer interface with the organization, it can have a big impact on a customer's perception of service and. therefore, satisfaction.
Short Note:
1.Customer service standards:
customer wants and needs,
customer response to service,
setting customer level
2. Transportation:
• mode and transport service selection,
• freight consolidation,
• carrier routing,
• vehicle scheduling,
• equipment selection,
• claims processing,
• rate auditing
3. Inventory management:
• raw material and finished goods
stocking policies,
• short-term sales forecasting,
• product mix at stocking points,
• number, size and location of stocking
points,
• just in time, push and pull strategies
4. Information flows and order processing
• sales order-inventory interface procedures,
• order information transmittal methods,
• ordering rules
Support/Secondary Activities:
1.Warehousing:
• space determination,
• stock layout and dock design,
• warehouse configuration
• stock placement
2. Materials handling:
• equipment selection,
• equipment replacement policies,
• order picking policies,
• stock storage and retrieval,
3. Purchasing:
• supply source selection,
• purchase timing,
• purchase quantities,
4. Protective packaging:
• design for handling,
• storage,
• protection from loss and damage,
5. Cooperation with production/operations:
• specification of aggregate quantities,
• sequence and time production output,
6. Information maintenance:
• information collection, storage, and
manipulation,
• data analysis,
• control procedures
